In the Senate of the United States,

November 19, 1999.

Resolved, That the bill from the House of Representatives (H.R. 1802) entitled ‘‘An Act 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.’’, do pass with the

following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the ‘‘Fos3 ter Care Independence Act of 1999’’.

4 (b) TABLE OF CONTENTS.—The table of contents of this

5 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.
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Subtitle B—Related Foster Care Provision

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

Sec. 112. Preparation of foster parents to provide for the needs of children in

State care.

Subtitle C—Medicaid Amendments

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

Subtitle D—Adoption Incentive Payments

Sec. 131. Increased funding for adoption incentive payments.

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

Sec. 206. Disposal of resources for less than fair market value under the SSI program.

Sec. 207. Administrative procedure for imposing penalties for false or misleading

statements.

Sec. 208. Exclusion of representatives and health care providers convicted of violations from participation in social security programs.

Sec. 209. State data exchanges.

Sec. 210. Study on possible measures to improve fraud prevention and administrative processing.

Sec. 211. Annual report on amounts necessary to combat fraud.

Sec. 212. Computer matches with Medicare and Medicaid institutionalization

data.

Sec. 213. Access to information held by financial institutions.

Subtitle B—Benefits For Certain World War II Veterans

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

veterans.

Subtitle C—Study

Sec. 261. Study of denial of SSI benefits for family farmers.

TITLE III—CHILD SUPPORT

Sec. 301. Narrowing 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.
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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 efforts

8 to find adoptive families for all children, including

9 older children, for whom reunification with their bio10 logical family is not in the best interests of the child.

11 However, some older children will continue to live in

12 foster care. These children should be enrolled in an

13 Independent Living program designed and conducted

14 by State and local government to help prepare them

15 for employment, postsecondary education, and suc16 cessful management of adult responsibilities.

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

18 care as adolescents may become eligible for Inde19 pendent Living programs. These Independent Living

20 programs are not an alternative to adoption for these

21 children. Enrollment in Independent Living pro22 grams can occur concurrent with continued efforts to

23 locate and achieve placement in adoptive families for

24 older children in foster care.
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1 (3) About 20,000 adolescents leave the Nation’s

2 foster care system each year because they have reached

3 18 years of age and are expected to support them4 selves.

5 (4) Congress has received extensive information

6 that adolescents leaving foster care have significant

7 difficulty making a successful transition to adulthood;

8 this information shows that children aging out of fos9 ter care show high rates of homelessness, non-marital

10 childbearing, poverty, and delinquent or criminal be11 havior; they are also frequently the target of crime

12 and physical assaults.

13 (5) The Nation’s State and local governments,

14 with financial support from the Federal Government,

15 should offer an extensive program of education, train16 ing, employment, and financial support for young

17 adults leaving foster care, with participation in such

18 program beginning several years before high school

19 graduation and continuing, as needed, until the

20 young adults emancipated from foster care establish

21 independence or reach 21 years of age.

22 (b) IMPROVED INDEPENDENT LIVING PROGRAM.—Sec23 tion 477 of the Social Security Act (42 U.S.C. 677) is

24 amended to read as follows:
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1 ‘‘SEC. 477. JOHN H. CHAFEE FOSTER CARE INDEPENDENCE

2 PROGRAM.

3 ‘‘(a) PURPOSE.—The purpose of this section is to pro4 vide States with flexible funding that will enable programs

5 to be designed and conducted—

6 ‘‘(1) to identify children who are likely to re7 main in foster care until 18 years of age and to help

8 these children make the transition to self-sufficiency

9 by providing services such as assistance in obtaining

10 a high school diploma, career exploration, vocational

11 training, job placement and retention, training in

12 daily living skills, training in budgeting and finan13 cial management skills, substance abuse prevention,

14 and preventive health activities (including smoking

15 avoidance, nutrition education, and pregnancy pre16 vention);

17 ‘‘(2) to help children who are likely to remain in

18 foster care until 18 years of age receive the education,

19 training, and services necessary to obtain employ20 ment;

21 ‘‘(3) to help children who are likely to remain in

22 foster care until 18 years of age prepare for and enter

23 postsecondary training and education institutions;

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

25 to children aging out of foster care, through mentors
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1 and the promotion of interactions with dedicated

2 adults; and

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

4 employment, education, and other appropriate sup5 port and services to former foster care recipients be6 tween 18 and 21 years of age to complement their

7 own efforts to achieve self-sufficiency and to assure

8 that program participants recognize and accept their

9 personal responsibility for preparing for and then

10 making the transition from adolescence to adulthood.

11 ‘‘(b) APPLICATIONS.—

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

13 from its allotment under subsection (c) for a period

14 of five consecutive fiscal years by submitting to the

15 Secretary, in writing, a plan that meets the require16 ments of paragraph (2) and the certifications re17 quired by paragraph (3) with respect to the plan.

18 ‘‘(2) STATE PLAN.—A plan meets the require19 ments of this paragraph if the plan specifies which

20 State agency or agencies will administer, supervise,

21 or oversee the programs carried out under the plan,

22 and describes how the State intends to do the fol23 lowing:

24 ‘‘(A) Design and deliver programs to

25 achieve the purposes of this section.
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1 ‘‘(B) Ensure that all political subdivisions

2 in the State are served by the program, though

3 not necessarily in a uniform manner.

4 ‘‘(C) Ensure that the programs serve chil5 dren of various ages and at various stages of

6 achieving independence.

7 ‘‘(D) Involve the public and private sectors

8 in helping adolescents in foster care achieve

9 independence.

10 ‘‘(E) Use objective criteria for determining

11 eligibility for benefits and services under the pro12 grams, and for ensuring fair and equitable treat13 ment of benefit recipients.

14 ‘‘(F) Cooperate in national evaluations of

15 the effects of the programs in achieving the pur16 poses of this section.

17 ‘‘(3) CERTIFICATIONS.—The certifications re18 quired by this paragraph with respect to a plan are

19 the following:

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

21 officer of the State that the State will provide as22 sistance and services to children who have left

23 foster care because they have attained 18 years

24 of age, and who have not attained 21 years of

25 age.
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1 ‘‘(B) A certification by the chief executive

2 officer of the State that not more than 30 percent

3 of the amounts paid to the State from its allot4 ment under subsection (c) for a fiscal year will

5 be expended for room or board for children who

6 have left foster care because they have attained

7 18 years of age, and who have not attained 21

8 years of age.

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

10 officer of the State that none of the amounts paid

11 to the State from its allotment under subsection

12 (c) will be expended for room or board for any

13 child who has not attained 18 years of age.

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

15 officer of the State that the State will use train16 ing funds provided under the program of Federal

17 payments for foster care and adoption assistance

18 to provide training to help foster parents, adop19 tive parents, workers in group homes, and case

20 managers understand and address the issues con21 fronting adolescents preparing for independent

22 living, and will, to the extent possible, coordinate

23 such training with the independent living pro24 gram conducted for adolescents.
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1 ‘‘(E) A certification by the chief executive

2 officer of the State that the State has consulted

3 widely with public and private organizations in

4 developing the plan and that the State has given

5 all interested members of the public at least 30

6 days to submit comments on the plan.

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

8 officer of the State that the State will make every

9 effort to coordinate the State programs receiving

10 funds provided from an allotment made to the

11 State under subsection (c) with other Federal

12 and State programs for youth (especially transi13 tional living youth projects funded under part B

14 of title III of the Juvenile Justice and Delin15 quency Prevention Act of 1974), abstinence edu16 cation programs, local housing programs, pro17 grams for disabled youth (especially sheltered

18 workshops), and school-to-work programs offered

19 by high schools or local workforce agencies.

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

21 officer of the State that each Indian tribe in the

22 State has been consulted about the programs to

23 be carried out under the plan; that there have

24 been efforts to coordinate the programs with such

25 tribes; and that benefits and services under the
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1 programs will be made available to Indian chil2 dren in the State on the same basis as to other

3 children in the State.

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

5 officer of the State that the State will ensure that

6 adolescents participating in the program under

7 this section participate directly in designing

8 their own program activities that prepare them

9 for independent living and that the adolescents

10 accept personal responsibility for living up to

11 their part of the program.

12 ‘‘(I) A certification by the chief executive of13 ficer of the State that the State has established

14 and will enforce standards and procedures to

15 prevent fraud and abuse in the programs carried

16 out under the plan.

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

18 an application submitted by a State pursuant to

19 paragraph (1) for a period if—

20 ‘‘(A) the application is submitted on or be21 fore June 30 of the calendar year in which such

22 period begins; and

23 ‘‘(B) the Secretary finds that the applica24 tion contains the material required by para25 graph (1).
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1 ‘‘(5) AUTHORITY TO IMPLEMENT CERTAIN

2 AMENDMENTS; NOTIFICATION.—A State with an ap3 plication approved under paragraph (4) may imple4 ment any amendment to the plan contained in the

5 application if the application, incorporating the

6 amendment, would be approvable under paragraph

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

8 such amendment, the State shall notify the Secretary

9 of the amendment.

10 ‘‘(6) AVAILABILITY.—The State shall make avail11 able to the public any application submitted by the

12 State pursuant to paragraph (1), and a brief sum13 mary of the plan contained in the application.

14 ‘‘(c) ALLOTMENTS TO STATES.—

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

16 in subsection (h) that remains after applying sub17 section (g)(2) for a fiscal year, the Secretary shall

18 allot to each State with an application approved

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

20 which bears the same ratio to such remaining amount

21 as the number of children in foster care under a pro22 gram of the State in the most recent fiscal year for

23 which such information is available bears to the total

24 number of children in foster care in all States for
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1 such most recent fiscal year, as adjusted in accord2 ance with paragraph (2).

3 ‘‘(2) HOLD HARMLESS PROVISION.—

4 ‘‘(A) IN GENERAL.—The Secretary shall

5 allot to each State whose allotment for a fiscal

6 year under paragraph (1) is less than the greater

7 of $500,000 or the amount payable to the State

8 under this section for fiscal year 1998, an addi9 tional amount equal to the difference between

10 such allotment and such greater amount.

11 ‘‘(B) RATABLE REDUCTION OF CERTAIN AL12 LOTMENTS.—In the case of a State not described

13 in subparagraph (A) of this paragraph for a fis14 cal year, the Secretary shall reduce the amount

15 allotted to the State for the fiscal year under

16 paragraph (1) by the amount that bears the

17 same ratio to the sum of the differences deter18 mined under subparagraph (A) of this para19 graph for the fiscal year as the excess of the

20 amount so allotted over the greater of $500,000

21 or the amount payable to the State under this

22 section for fiscal year 1998 bears to the sum of

23 such excess amounts determined for all such

24 States.

25 ‘‘(d) USE OF FUNDS.—
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1 ‘‘(1) IN GENERAL.—A State to which an amount

2 is paid from its allotment under subsection (c) may

3 use the amount in any manner that is reasonably cal4 culated to accomplish the purposes of this section.

5 ‘‘(2) NO SUPPLANTATION OF OTHER FUNDS

6 AVAILABLE FOR SAME GENERAL PURPOSES.—The

7 amounts paid to a State from its allotment under

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

9 supplant any other funds which are available for the

10 same general purposes in the State.

11 ‘‘(3) TWO-YEAR AVAILABILITY OF FUNDS.—Pay12 ments made to a State under this section for a fiscal

13 year shall be expended by the State in the fiscal year

14 or in the succeeding fiscal year.

15 ‘‘(e) PENALTIES.—

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

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

18 conducted under chapter 75 of title 31, United States

19 Code, or by any other means, that a program receiv20 ing funds from an allotment made to a State under

21 subsection (c) has been operated in a manner that is

22 inconsistent with, or not disclosed in the State appli23 cation approved under subsection (b), the Secretary

24 shall assess a penalty against the State in an amount
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1 equal to not less than 1 percent and not more than

2 5 percent of the amount of the allotment.

3 ‘‘(2) FAILURE TO COMPLY WITH DATA REPORT4 ING REQUIREMENT.—The Secretary shall assess a

5 penalty against a State that fails during a fiscal year

6 to comply with an information collection plan imple7 mented under subsection (f) in an amount equal to

8 not less than 1 percent and not more than 5 percent

9 of the amount allotted to the State for the fiscal year.

10 ‘‘(3) PENALTIES BASED ON DEGREE OF NON11 COMPLIANCE.—The Secretary shall assess penalties

12 under this subsection based on the degree of non13 compliance.

14 ‘‘(f) DATA COLLECTION AND PERFORMANCE MEASURE15 MENT.—

16 ‘‘(1) IN GENERAL.—The Secretary, in consulta17 tion with State and local public officials responsible

18 for administering independent living and other child

19 welfare programs, child welfare advocates, members of

20 Congress, youth service providers, and researchers,

21 shall—

22 ‘‘(A) develop outcome measures (including

23 measures of educational attainment, high school

24 diploma, employment, avoidance of dependency,

25 homelessness, nonmarital childbirth, incarcer-
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1 ation, and high-risk behaviors) that can be used

2 to assess the performance of States in operating

3 independent living programs;

4 ‘‘(B) identify data elements needed to

5 track—

6 ‘‘(i) the number and characteristics of

7 children receiving services under this sec8 tion;

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

10 being provided; and

11 ‘‘(iii) State performance on the out12 come measures; and

13 ‘‘(C) develop and implement a plan to col14 lect the needed information beginning with the

15 second fiscal year beginning after the date of the

16 enactment of this section.

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

18 months after the date of the enactment of this section,

19 the Secretary shall submit to the Committee on Ways

20 and Means of the House of Representatives and the

21 Committee on Finance of the Senate a report detail22 ing the plans and timetable for collecting from the

23 States the information described in paragraph (1)

24 and a proposal to impose penalties consistent with

25 paragraph (e)(2) on States that do not report data.
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1 ‘‘(g) EVALUATIONS.—

2 ‘‘(1) IN GENERAL.—The Secretary shall conduct

3 evaluations of such State programs funded under this

4 section as the Secretary deems to be innovative or of

5 potential national significance. The evaluation of any

6 such program shall include information on the effects

7 of the program on education, employment, and per8 sonal development. To the maximum extent prac9 ticable, the evaluations shall be based on rigorous sci10 entific standards including random assignment to

11 treatment and control groups. The Secretary is en12 couraged to work directly with State and local gov13 ernments to design methods for conducting the evalua14 tions, directly or by grant, contract, or cooperative

15 agreement.

16 ‘‘(2) FUNDING OF EVALUATIONS.—The Secretary

17 shall reserve 1.5 percent of the amount specified in

18 subsection (h) for a fiscal year to carry out, during

19 the fiscal year, evaluation, technical assistance, per20 formance measurement, and data collection activities

21 related to this section, directly or through grants, con22 tracts, or cooperative agreements with appropriate en23 tities.

24 ‘‘(h) LIMITATIONS ON AUTHORIZATION OF APPROPRIA25 TIONS.—To carry out this section and for payments to
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1 States under section 474(a)(4), there are authorized to be

2 appropriated to the Secretary $140,000,000 for each fiscal

3 year.’’.

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

5 Act (42 U.S.C. 674(a)(4)) is amended to read as follows:

6 ‘‘(4) the lesser of—

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

8 which—

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

10 State during the fiscal year in which the

11 quarter occurs to carry out programs in ac12 cordance with the State application ap13 proved under section 477(b) for the period

14 in which the quarter occurs (including any

15 amendment that meets the requirements of

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

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

18 assessed against the State under section

19 477(e) during the fiscal year in which the

20 quarter occurs; or

21 ‘‘(B) the amount allotted to the State under

22 section 477 for the fiscal year in which the quar23 ter occurs, reduced by the total of the amounts

24 payable to the State under this paragraph for all

25 prior quarters in the fiscal year.’’.
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1 (d) REGULATIONS.—Not later than 12 months after the

2 date of the enactment of this Act, the Secretary of Health

3 and Human Services shall issue such regulations as may

4 be necessary to carry out the amendments made by this sec5 tion.

6 (e) SENSE OF THE CONGRESS.—It is the sense of the

7 Congress that States should provide medical assistance

8 under the State plan approved under title XIX of the Social

9 Security Act to 18-, 19-, and 20-year-olds who have been

10 emancipated from foster care.

11 Subtitle B—Related Foster Care

12 Provision

13 SEC. 111. INCREASE IN AMOUNT OF ASSETS ALLOWABLE

14 FOR CHILDREN IN FOSTER CARE.

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

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

17 determining whether a child would have received aid under

18 a State plan approved under section 402 (as in effect on

19 July 16, 1996), a child whose resources (determined pursu20 ant to section 402(a)(7)(B), as so in effect) have a combined

21 value of not more than $10,000 shall be considered to be

22 a child whose resources have a combined value of not more

23 than $1,000 (or such lower amount as the State may deter24 mine for purposes of such section 402(a)(7)(B)).’’.
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1 SEC. 112. PREPARATION OF FOSTER PARENTS TO PROVIDE

2 FOR THE NEEDS OF CHILDREN IN STATE

3 CARE.

4 (a) STATE PLAN REQUIREMENT.—Section 471(a) of

5 the Social Security Act (42 U.S.C. 671(a)) is amended—

6 (1) by striking ‘‘and’’ at the end of paragraph

7 (22);

8 (2) by striking the period at the end of para9 graph (23) and inserting ‘‘; and’’; and

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

11 ‘‘(24) include a certification that, before a child

12 in foster care under the responsibility of the State is

13 placed with prospective foster parents, the prospective

14 foster parents will be prepared adequately with the

15 appropriate knowledge and skills to provide for the

16 needs of the child, and that such preparation will be

17 continued, as necessary, after the placement of the

18 child.’’.

19 (b) EFFECTIVE DATE.—The amendments made by sub20 section (a) shall take effect on October 1, 1999.

21 Subtitle C—Medicaid Amendments

22 SEC. 121. STATE OPTION OF MEDICAID COVERAGE FOR

23 ADOLESCENTS LEAVING FOSTER CARE.

24 (a) IN GENERAL.—Subject to subsection (c), title XIX

25 of the Social Security Act is amended—
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1 (1) in section 1902(a)(10)(A)(ii) (42 U.S.C.

2 1396a(a)(10)(A)(ii))—

3 (A) by striking ‘‘or’’ at the end of subclause

4 (XIII);

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

6 (XIV); and

7 (C) by adding at the end the following new sub8 clause:

9 ‘‘(XV) who are independent foster

10 care adolescents (as defined in (section

11 1905(v)(1)), or who are within any

12 reasonable categories of such adoles13 cents specified by the State;’’; and

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

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

16 ‘‘(v)(1) For purposes of this title, the term ‘inde17 pendent foster care adolescent’ means an individual—

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

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

20 in foster care under the responsibility of a State; and

21 ‘‘(C) whose assets, resources, and income do not

22 exceed such levels (if any) as the State may establish

23 consistent with paragraph (2).
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1 ‘‘(2) The levels established by a State under paragraph

2 (1)(C) may not be less than the corresponding levels applied

3 by the State under section 1931(b).

4 ‘‘(3) A State may limit the eligibility of independent

5 foster care adolescents under section 1902(a)(10)(A)(ii)(XV)

6 to those individuals with respect to whom foster care main7 tenance payments or independent living services were fur8 nished under a program funded under part E of title IV

9 before the date the individuals attained 18 years of age.’’.

10 (b) EFFECTIVE DATE.—The amendments made by sub11 section (a) apply to medical assistance for items and serv12 ices furnished on or after October 1, 1999.

13 (c) CONTINGENCY IN ENACTMENT.—If the Ticket to

14 Work and Work Incentives Improvement Act of 1999 is en15 acted (whether before, on, or after the date of the enactment

16 of this Act)—

17 (1) the amendments made by that Act shall be

18 executed as if this Act had been enacted after the en19 actment of such other Act;

20 (2) with respect to subsection (a)(1)(A) of this

21 section, any reference to subclause (XIII) is deemed a

22 reference to subclause (XV);

23 (3) with respect to subsection (a)(1)(B) of this

24 section, any reference to subclause (XIV) is deemed a

25 reference to subclause (XVI);
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1 (4) the subclause (XV) added by subsection

2 (a)(1)(C) of this section—

3 (A) is redesignated as subclause (XVII); and

4 (B) is amended by striking ‘‘section

5 1905(v)(1)’’ and inserting ‘‘section 1905(w)(1)’’;

6 and

7 (5) the subsection (v) added by subsection (a)(2)

8 of this section—

9 (A) is redesignated as subsection (w); and

10 (B) is amended by striking

11 ‘‘1902(a)(10)(A)(ii)(XV)’’ and inserting

12 ‘‘1902(a)(10)(A)(ii)(XVII)’’.

13 Subtitle D—Adoption Incentive

14 Payments

15 SEC. 131. INCREASED FUNDING FOR ADOPTION INCENTIVE

16 PAYMENTS.

17 (a) SUPPLEMENTAL GRANTS.—Section 473A of the So18 cial Security Act (42 U.S.C. 673b) is amended by adding

19 at the end the following:

20 ‘‘(j) SUPPLEMENTAL GRANTS.—

21 ‘‘(1) IN GENERAL.—Subject to the availability of

22 such amounts as may be provided in advance in ap23 propriations Acts, in addition to any amount other24 wise payable under this section to any State that is

25 an incentive-eligible State for fiscal year 1998, the
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1 Secretary shall make a grant to the State in an

2 amount equal to the lesser of—

3 ‘‘(A) the amount by which—

4 ‘‘(i) the amount that would have been

5 payable to the State under this section dur6 ing fiscal year 1999 (on the basis of adop7 tions in fiscal year 1998) in the absence of

8 subsection (d)(2) if sufficient funds had been

9 available for the payment; exceeds

10 ‘‘(ii) the amount that, before the enact11 ment of this subsection, was payable to the

12 State under this section during fiscal year

13 1999 (on such basis); or

14 ‘‘(B) the amount that bears the same ratio

15 to the dollar amount specified in paragraph (2)

16 as the amount described by subparagraph (A) for

17 the State bears to the aggregate of the amounts

18 described by subparagraph (A) for all States that

19 are incentive-eligible States for fiscal year 1998.

20 ‘‘(2) FUNDING.—$23,000,000 of the amounts ap21 propriated under subsection (h)(1) for fiscal year

22 2000 may be used for grants under paragraph (1) of

23 this subsection.’’.
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1 (b) LIMITATION ON AUTHORIZATION OF APPROPRIA2 TIONS.—Section 473A(h)(1) of the Social Security Act (42

3 U.S.C. 673b(h)(1)) is amended to read as follows:

4 ‘‘(1) IN GENERAL.—For grants under subsection

5 (a), there are authorized to be appropriated to the

6 Secretary—

7 ‘‘(A) $20,000,000 for fiscal year 1999;

8 ‘‘(B) $43,000,000 for fiscal year 2000; and

9 ‘‘(C) $20,000,000 for each of fiscal years

10 2001 through 2003.’’.

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 rep21 resentative payee on behalf of an individual after the indi22 vidual’s death, the representative payee shall be liable for

23 the repayment of the overpayment, and the Commissioner

24 of Social Security shall establish an overpayment control
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1 record under the social security account number of the rep2 resentative payee.’’.

3 (b) AMENDMENT TO TITLE XVI.—Section 1631(b)(2)

4 of such Act (42 U.S.C. 1383(b)(2)) is amended by adding

5 at the end the following new sentence: ‘‘If any payment of

6 more than the correct amount is made to a representative

7 payee on behalf of an individual after the individual’s

8 death, the representative payee shall be liable for the repay9 ment of the overpayment, and the Commissioner of Social

10 Security shall establish an overpayment control record

11 under the social security account number of the representa12 tive payee.’’.

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

14 section shall apply to overpayments made 12 months or

15 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 So19 cial 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 1616(a)
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1 of this Act or under an agreement entered into under

2 section 212(a) of Public Law 93–66) shall, as at least

3 one means of recovering such overpayment, make the

4 adjustment or recovery from the lump sum payment

5 in an amount equal to not less than the lesser of the

6 amount of the overpayment or 50 percent of the lump

7 sum payment,’’ before ‘‘unless fraud’’.

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

9 section shall take effect 12 months after the date of the en10 actment of this Act and shall apply to amounts incorrectly

11 paid which remain outstanding on or after such date.

12 SEC. 203. ADDITIONAL DEBT COLLECTION PRACTICES.

13 (a) IN GENERAL.—Section 1631(b) of the Social Secu14 rity Act (42 U.S.C. 1383(b)) is amended—

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

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

17 (2) by inserting after paragraph (3) the fol18 lowing:

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

20 Commissioner of Social Security may use the collection

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

22 3718 of title 31, United States Code, and in section 5514

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

24 after the enactment of the Debt Collection Improvement Act

25 of 1996.
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1 ‘‘(B) For purposes of subparagraph (A), the term ‘de2 linquent amount’ means an amount—

3 ‘‘(i) in excess of the correct amount of payment

4 under this title;

5 ‘‘(ii) paid to a person after such person has at6 tained 18 years of age; and

7 ‘‘(iii) determined by the Commissioner of Social

8 Security, under regulations, to be otherwise unre9 coverable under this section after such person ceases

10 to be a beneficiary under this title.’’.

11 (b) CONFORMING AMENDMENTS.—Section 3701(d)(2)

12 of title 31, United States Code, is amended by striking ‘‘sec13 tion 204(f)’’ and inserting ‘‘sections 204(f) and 1631(b)(4)’’.

14 (c) TECHNICAL AMENDMENTS.—Section 204(f) of the

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

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

17 ‘‘3711(f)’’; and

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

19 (d) EFFECTIVE DATE.—The amendments made by this

20 section shall apply to debt outstanding on or after the date

21 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 Act

5 (42 U.S.C. 1382(e)(1)(I)(ii)(II)) is amended by striking ‘‘is

6 authorized to’’ and inserting ‘‘shall’’.

7 SEC. 205. TREATMENT OF ASSETS HELD IN TRUST UNDER

8 THE SSI PROGRAM.

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

10 Social Security Act (42 U.S.C. 1382b) is amended by add11 ing at the end the following:

12 ‘‘Trusts

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

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

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

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

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

18 of the individual (or of the individual’s spouse) are trans19 ferred to the trust other than by will.

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

21 transferred the assets of an individual (or of the individ22 ual’s spouse) and the assets of any other person, this sub23 section shall apply to the portion of the trust attributable

24 to the assets of the individual (or of the individual’s spouse).

25 ‘‘(C) This subsection shall apply to a trust without re26 gard to—
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1 ‘‘(i) the purposes for which the trust is estab2 lished;

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

4 discretion under the trust;

5 ‘‘(iii) any restrictions on when or whether dis6 tributions may be made from the trust; or

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

8 from the trust.

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

10 an individual, the corpus of the trust shall be considered

11 a resource available to the individual.

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

13 an individual, if there are any circumstances under which

14 payment from the trust could be made to or for the benefit

15 of the individual or the individual’s spouse, the portion of

16 the corpus from which payment to or for the benefit of the

17 individual or the individual’s spouse could be made shall

18 be considered a resource available to the individual.

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

20 the application of this subsection with respect to an indi21 vidual if the Commissioner determines that such applica22 tion would work an undue hardship (as determined on the

23 basis of criteria established by the Commissioner) on the

24 individual.
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1 ‘‘(5) This subsection shall not apply to a trust de2 scribed in subparagraph (A) or (C) of section 1917(d)(4).

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

4 ‘‘(A) the term ‘trust’ includes any legal instru5 ment or device that is similar to a trust;

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

7 trust, all property and other interests held by the

8 trust, including accumulated earnings and any other

9 addition to the trust after its establishment (except

10 that such term does not include any such earnings or

11 addition in the month in which the earnings or addi12 tion is credited or otherwise transferred to the trust);

13 and

14 ‘‘(C) the term ‘asset’ includes any income or re15 source of the individual or of the individual’s spouse,

16 including—

17 ‘‘(i) any income excluded by section

18 1612(b);

19 ‘‘(ii) any resource otherwise excluded by

20 this section; and

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

22 which the individual or the individual’s spouse

23 is entitled but does not receive or have access to

24 because of action by—

25 ‘‘(I) the individual or spouse;
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1 ‘‘(II) a person or entity (including a

2 court) with legal authority to act in place

3 of, or on behalf of, the individual or spouse;

4 or

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

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

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

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

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

10 (1) by striking ‘‘and’’ at the end of subpara11 graph (E);

12 (2) by striking the period at the end of subpara13 graph (F) and inserting ‘‘; and’’; and

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

15 ‘‘(G) any earnings of, and additions to, the cor16 pus of a trust established by an individual (within

17 the meaning of section 1613(e)), of which the indi18 vidual is a beneficiary, to which section 1613(e) ap19 plies, and, in the case of an irrevocable trust, with re20 spect to which circumstances exist under which a

21 payment from the earnings or additions could be

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

23 (c) CONFORMING AMENDMENTS.—Section 1902(a)(10)

24 of the Social Security Act (42 U.S.C. 1396a(a)(10)) is

25 amended—
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1 (1) by striking ‘‘and’’ at the end of subpara2 graph (E);

3 (2) by adding ‘‘and’’ at the end of subparagraph

4 (F); and

5 (3) by inserting after subparagraph (F) the fol6 lowing:

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

8 the supplemental security income program under

9 title XVI for purposes of determining eligibility

10 for medical assistance under the State plan of an

11 individual who is not receiving supplemental se12 curity income, the State will disregard the provi13 sions of section 1613(e);’’.

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

15 section shall take effect on January 1, 2000, and shall apply

16 to trusts established on or after such date.

17 SEC. 206. DISPOSAL OF RESOURCES FOR LESS THAN FAIR

18 MARKET VALUE UNDER THE SSI PROGRAM.

19 (a) IN GENERAL.—Section 1613(c) of the Social Secu20 rity Act (42 U.S.C. 1382b(c)) is amended—

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

22 Medicaid Policy Restricting Eligibility of Institu23 tionalized Individuals for Benefits Based on’’;

24 (2) in paragraph (1)—

25 (A) in subparagraph (A)—
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1 (i) by inserting ‘‘paragraph (1) and’’

2 after ‘‘provisions of’’;

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

4 place it appears and inserting ‘‘this title

5 and title XIX, respectively,’’;

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

7 and inserting ‘‘clause (ii)’’;

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

9 inserting ‘‘subparagraph (B)’’;

10 (B) in subparagraph (B)—

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

12 and

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

14 all that follows and inserting ‘‘paragraph

15 (1) or section 1917(c).’’; and

16 (C) by redesignating subparagraphs (A)

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

18 (3) in paragraph (2)—

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

20 and

21 (B) by striking ‘‘paragraph (1)(B)’’ and in22 serting ‘‘subparagraph (A)(ii)’’;

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

24 and
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1 (5) by inserting before paragraph (2) (as so re2 designated by paragraph (4) of this subsection) the

3 following:

4 ‘‘(c)(1)(A)(i) If an individual or the spouse of an indi5 vidual disposes of resources for less than fair market value

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

7 the individual is ineligible for benefits under this title for

8 months during the period beginning on the date described

9 in clause (iii) and equal to the number of months calculated

10 as provided in clause (iv).

11 ‘‘(ii)(I) The look-back date described in this subclause

12 is a date that is 36 months before the date described in sub13 clause (II).

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

15 on which the individual applies for benefits under this title

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

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

18 market value.

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

20 of the first month in or after which resources were disposed

21 of for less than fair market value and which does not occur

22 in any other period of ineligibility under this paragraph.

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

24 clause shall be equal to—
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1 ‘‘(I) the total, cumulative uncompensated value

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

3 the spouse of the individual) on or after the look-back

4 date described in clause (ii)(I); divided by

5 ‘‘(II) the amount of the maximum monthly ben6 efit payable under section 1611(b), plus the amount

7 (if any) of the maximum State supplementary pay8 ment corresponding to the State’s payment level ap9 plicable to the individual’s living arrangement and

10 eligibility category that would otherwise be payable to

11 the individual by the Commissioner pursuant to an

12 agreement under section 1616(a) of this Act or section

13 212(b) of Public Law 93–66, for the month in which

14 occurs the date described in clause (ii)(II),

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

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

17 ‘‘(B)(i) Notwithstanding subparagraph (A), this sub18 section shall not apply to a transfer of a resource to a trust

19 if the portion of the trust attributable to the resource is con20 sidered a resource available to the individual pursuant to

21 subsection (e)(3) (or would be so considered but for the ap22 plication of subsection (e)(4)).

23 ‘‘(ii) In the case of a trust established by an individual

24 or an individual’s spouse (within the meaning of subsection

25 (e)), if from such portion of the trust, if any, that is consid-
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1 ered a resource available to the individual pursuant to sub2 section (e)(3) (or would be so considered but for the applica3 tion of subsection (e)(4)) or the residue of the portion on

4 the termination of the trust—

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

6 for the benefit of the individual; or

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

8 be made to the individual,

9 then, for purposes of this subsection, the payment described

10 in clause (I) or the foreclosure of payment described in

11 clause (II) shall be considered a transfer of resources by the

12 individual or the individual’s spouse as of the date of the

13 payment or foreclosure, as the case may be.

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

15 under this title by reason of the application of this para16 graph to a disposal of resources by the individual or the

17 spouse of the individual, to the extent that—

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

19 home was transferred to—

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

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

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

23 ‘‘(III) a sibling of the transferor who has an

24 equity interest in such home and who was resid25 ing in the transferor’s home for a period of at
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1 least 1 year immediately before the date the

2 transferor becomes an institutionalized indi3 vidual; or

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

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

6 who was residing in the transferor’s home for a

7 period of at least 2 years immediately before the

8 date the transferor becomes an institutionalized

9 individual, and who provided care to the trans10 feror which permitted the transferor to reside at

11 home rather than in such an institution or facil12 ity;

13 ‘‘(ii) the resources—

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

15 spouse or to another for the sole benefit of the

16 transferor’s spouse;

17 ‘‘(II) were transferred from the transferor’s

18 spouse to another for the sole benefit of the trans19 feror’s spouse;

20 ‘‘(III) were transferred to, or to a trust (in21 cluding a trust described in section 1917(d)(4))

22 established solely for the benefit of, the trans23 feror’s child who is blind or disabled; or

24 ‘‘(IV) were transferred to a trust (including

25 a trust described in section 1917(d)(4)) estab-
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1 lished solely for the benefit of an individual who

2 has not attained 65 years of age and who is dis3 abled;

4 ‘‘(iii) a satisfactory showing is made to the Com5 missioner of Social Security (in accordance with reg6 ulations promulgated by the Commissioner) that—

7 ‘‘(I) the individual who disposed of the re8 sources intended to dispose of the resources either

9 at fair market value, or for other valuable con10 sideration;

11 ‘‘(II) the resources were transferred exclu12 sively for a purpose other than to qualify for

13 benefits under this title; or

14 ‘‘(III) all resources transferred for less than

15 fair market value have been returned to the

16 transferor; or

17 ‘‘(iv) the Commissioner determines, under proce18 dures established by the Commissioner, that the denial

19 of eligibility would work an undue hardship as deter20 mined on the basis of criteria established by the Com21 missioner.

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

23 resource held by an individual in common with another

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

25 or similar arrangement, the resource (or the affected portion
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1 of such resource) shall be considered to be disposed of by

2 the individual when any action is taken, either by the indi3 vidual or by any other person, that reduces or eliminates

4 the individual’s ownership or control of such resource.

5 ‘‘(E) In the case of a transfer by the spouse of an indi6 vidual that results in a period of ineligibility for the indi7 vidual under this subsection, the Commissioner shall appor8 tion the period (or any portion of the period) among the

9 individual and the individual’s spouse if the spouse becomes

10 eligible for benefits under this title.

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

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

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

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

15 of Public Law 93–66;

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

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

18 and

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

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

21 (b) CONFORMING AMENDMENT.—Section 1902(a)(10)

22 of the Social Security Act (42 U.S.C. 1396a(a)(10)), as

23 amended by section 205(c) of this Act, is amended by strik24 ing ‘‘section 1613(e)’’ and inserting ‘‘subsections (c) and (e)

25 of section 1613’’.
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1 (c) EFFECTIVE DATE.—The amendments made by this

2 section shall be effective with respect to disposals made on

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

4 SEC. 207. ADMINISTRATIVE PROCEDURE FOR IMPOSING

5 PENALTIES FOR FALSE OR MISLEADING

6 STATEMENTS.

7 (a) IN GENERAL.—Part A of title XI of the Social Se8 curity Act (42 U.S.C. 1301 et seq.) is amended by inserting

9 after section 1129 the following:

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

11 PENALTIES FOR FALSE OR MISLEADING

12 STATEMENTS.

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

14 to be made, a statement or representation of a material fact

15 for use in determining any initial or continuing right to

16 or the amount of—

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

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

19 that the person knows or should know is false or misleading

20 or knows or should know omits a material fact or who

21 makes such a statement with knowing disregard for the

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

23 that may be prescribed by law, a penalty described in sub24 section (b) to be imposed by the Commissioner of Social

25 Security.
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1 ‘‘(b) PENALTY.—The penalty described in this sub2 section is—

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

4 would otherwise be payable to the person; and

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

6 XVI,

7 for each month that begins during the applicable period de8 scribed in subsection (c).

9 ‘‘(c) DURATION OF PENALTY.—The duration of the ap10 plicable period, with respect to a determination by the Com11 missioner under subsection (a) that a person has engaged

12 in conduct described in subsection (a), shall be—

13 ‘‘(1) six consecutive months, in the case of the

14 first such determination with respect to the person;

15 ‘‘(2) twelve consecutive months, in the case of the

16 second such determination with respect to the person;

17 and

18 ‘‘(3) twenty-four consecutive months, in the case

19 of the third or subsequent such determination with re20 spect to the person.

21 ‘‘(d) EFFECT ON OTHER ASSISTANCE.—A person sub22 ject to a period of nonpayment of benefits under title II

23 or ineligibility for title XVI benefits by reason of this sec24 tion nevertheless shall be considered to be eligible for and

25 receiving such benefits, to the extent that the person would
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1 be receiving or eligible for such benefits but for the imposi2 tion of the penalty, for purposes of—

3 ‘‘(1) determination of the eligibility of the person

4 for benefits under titles XVIII and XIX; and

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

6 benefits payable under title II or XVI to another per7 son.

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

9 under title XVI’ includes State supplementary payments

10 made by the Commissioner pursuant to an agreement under

11 section 1616(a) of this Act or section 212(b) of Public Law

12 93–66.

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

14 Security shall consult with the Inspector General of the So15 cial Security Administration regarding initiating actions

16 under this section.’’.

17 (b) CONFORMING AMENDMENT PRECLUDING DELAYED

18 RETIREMENT CREDIT FOR ANY MONTH TO WHICH A NON19 PAYMENT OF BENEFITS PENALTY APPLIES.—Section

20 202(w)(2)(B) of such Act (42 U.S.C. 402(w)(2)(B)) is

21 amended—

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

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

24 (ii) and inserting ‘‘, and’’; and

25 (3) by adding at the end the following:
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1 ‘‘(iii) such individual was not subject to a

2 penalty imposed under section 1129A.’’.

3 (c) ELIMINATION OF REDUNDANT PROVISION.—Sec4 tion 1611(e) of such Act (42 U.S.C. 1382(e)) is amended—

5 (1) by striking paragraph (4);

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

7 and inserting ‘‘(4)’’; and

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

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

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

11 the enactment of this Act, the Commissioner of Social Secu12 rity shall develop regulations that prescribe the administra13 tive process for making determinations under section 1129A

14 of the Social Security Act (including when the applicable

15 period in subsection (c) of such section shall commence),

16 and shall provide guidance on the exercise of discretion as

17 to whether the penalty should be imposed in particular

18 cases.

19 (e) EFFECTIVE DATE.—The amendments made by this

20 section shall apply to statements and representations made

21 on or after the date of the enactment of this Act.
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1 SEC. 208. 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 Se6 curity Act is amended by inserting before section 1137 (42

7 U.S.C. 1320b–7) the following:

8 ‘‘EXCLUSION OF REPRESENTATIVES AND HEALTH CARE

9 PROVIDERS CONVICTED OF VIOLATIONS FROM PARTICI10 PATION IN SOCIAL SECURITY PROGRAMS

11 ‘‘SEC. 1136. (a) IN GENERAL.—The Commissioner of

12 Social Security shall exclude from participation in the so13 cial 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 title

18 18, United States Code, relating to an initial appli19 cation for or continuing entitlement to, or amount of,

20 benefits under title II of this Act, or an initial appli21 cation for or continuing eligibility for, or amount of,

22 benefits under title XVI of this Act; or

23 ‘‘(3) who the Commissioner determines has com24 mitted an offense described in section 1129(a)(1) of

25 this Act.
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1 ‘‘(b) NOTICE, EFFECTIVE DATE, AND PERIOD OF EX2 CLUSION.—(1) An exclusion under this section shall be effec3 tive at such time, for such period, and upon such reasonable

4 notice to the public and to the individual excluded as may

5 be specified in regulations consistent with paragraph (2).

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

7 to services furnished to any individual on or after the effec8 tive date of the exclusion. Nothing in this section may be

9 construed to preclude, in determining disability under title

10 II or title XVI, consideration of any medical evidence de11 rived from services provided by a health care provider before

12 the effective date of the exclusion of the health care provider

13 under this section.

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

15 of exclusion under paragraph (1), the period of the exclu16 sion.

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

18 exclusion under subsection (a), the minimum period of ex19 clusion shall be five years, except that the Commissioner

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

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

22 Commissioner’s decision whether to waive the exclusion

23 shall not be reviewable.

24 ‘‘(C) In the case of an exclusion of an individual under

25 subsection (a) based on a conviction or a determination de-
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1 scribed in subsection (a)(3) occurring on or after the date

2 of the enactment of this section, if the individual has (before,

3 on, or after such date of the enactment) been convicted, or

4 if such a determination has been made with respect to the

5 individual—

6 ‘‘(i) on one previous occasion of one or more of7 fenses for which an exclusion may be effected under

8 such subsection, the period of the exclusion shall be

9 not less than 10 years; or

10 ‘‘(ii) on two or more previous occasions of one or

11 more offenses for which an exclusion may be effected

12 under such subsection, the period of the exclusion

13 shall be permanent.

14 ‘‘(c) NOTICE TO STATE AGENCIES.—The Commis15 sioner shall promptly notify each appropriate State agency

16 employed for the purpose of making disability determina17 tions under section 221 or 1633(a)—

18 ‘‘(1) of the fact and circumstances of each exclu19 sion effected against an individual under this section;

20 and

21 ‘‘(2) of the period (described in subsection (b)(3))

22 for which the State agency is directed to exclude the

23 individual from participation in the activities of the

24 State agency in the course of its employment.
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1 ‘‘(d) NOTICE TO STATE LICENSING AGENCIES.—The

2 Commissioner shall—

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

4 local agency or authority having responsibility for the

5 licensing or certification of an individual excluded

6 from participation under this section of the fact and

7 circumstances of the exclusion;

8 ‘‘(2) request that appropriate investigations be

9 made and sanctions invoked in accordance with ap10 plicable State law and policy; and

11 ‘‘(3) request that the State or local agency or au12 thority keep the Commissioner and the Inspector Gen13 eral of the Social Security Administration fully and

14 currently informed with respect to any actions taken

15 in response to the request.

16 ‘‘(e) NOTICE, HEARING, AND JUDICIAL REVIEW.—(1)

17 Any individual who is excluded (or directed to be excluded)

18 from participation under this section is entitled to reason19 able notice and opportunity for a hearing thereon by the

20 Commissioner to the same extent as is provided in section

21 205(b), and to judicial review of the Commissioner’s final

22 decision after such hearing as is provided in section 205(g).

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

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

25 with respect to title II.
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1 ‘‘(f) APPLICATION FOR TERMINATION OF EXCLU2 SION.—(1) An individual excluded from participation

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

4 manner specified by the Commissioner in regulations and

5 at the end of the minimum period of exclusion provided

6 under subsection (b)(3) and at such other times as the Com7 missioner may provide, for termination of the exclusion ef8 fected under this section.

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

10 if the Commissioner determines, on the basis of the conduct

11 of the applicant which occurred after the date of the notice

12 of exclusion or which was unknown to the Commissioner

13 at the time of the exclusion, that—

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

15 continuation of the exclusion; and

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

17 types of actions which formed the basis for the origi18 nal exclusion have not recurred and will not recur.

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

20 State agency employed for the purpose of making disability

21 determinations under section 221 or 1633(a) of the fact and

22 circumstances of each termination of exclusion made under

23 this subsection.

24 ‘‘(g) AVAILABILITY OF RECORDS OF EXCLUDED REP25 RESENTATIVES AND HEALTH CARE PROVIDERS.—Nothing
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1 in this section shall be construed to have the effect of lim2 iting access by any applicant or beneficiary under title II

3 or XVI, any State agency acting under section 221 or

4 1633(a), or the Commissioner to records maintained by any

5 representative or health care provider in connection with

6 services provided to the applicant or beneficiary prior to

7 the exclusion of such representative or health care provider

8 under this section.

9 ‘‘(h) REPORTING REQUIREMENT.—Any representative

10 or health care provider participating in, or seeking to par11 ticipate in, a social security program shall inform the Com12 missioner, in such form and manner as the Commissioner

13 shall prescribe by regulation, whether such representative

14 or health care provider has been convicted of a violation

15 described in subsection (a).

16 ‘‘(i) DELEGATION OF AUTHORITY.—The Commissioner

17 may delegate authority granted by this section to the In18 spector General.

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

20 ‘‘(1) EXCLUDE.—The term ‘exclude’ from par21 ticipation means—

22 ‘‘(A) in connection with a representative, to

23 prohibit from engaging in representation of an

24 applicant for, or recipient of, benefits, as a rep25 resentative payee under section 205(j) or section
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1 1631(a)(2)(A)(ii), or otherwise as a representa2 tive, in any hearing or other proceeding relating

3 to entitlement to benefits; and

4 ‘‘(B) in connection with a health care pro5 vider, to prohibit from providing items or serv6 ices to an applicant for, or recipient of, benefits

7 for the purpose of assisting such applicant or re8 cipient in demonstrating disability.

9 ‘‘(2) SOCIAL SECURITY PROGRAM.—The term ‘so10 cial security programs’ means the program providing

11 for monthly insurance benefits under title II, and the

12 program providing for monthly supplemental security

13 income benefits to individuals under title XVI (in14 cluding State supplementary payments made by the

15 Commissioner pursuant to an agreement under sec16 tion 1616(a) of this Act or section 212(b) of Public

17 Law 93–66).

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

19 to have been ‘convicted’ of a violation—

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

21 been entered against the individual by a Federal,

22 State, or local court, except if the judgment of

23 conviction has been set aside or expunged;
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1 ‘‘(B) when there has been a finding of guilt

2 against the individual by a Federal, State, or

3 local court;

4 ‘‘(C) when a plea of guilty or nolo

5 contendere by the individual has been accepted

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

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

8 participation in a first offender, deferred adju9 dication, or other arrangement or program where

10 judgment of conviction has been withheld.’’.

11 (b) EFFECTIVE DATE.—The amendment made by this

12 section shall apply with respect to convictions of violations

13 described in paragraphs (1) and (2) of section 1136(a) of

14 the Social Security Act and determinations described in

15 paragraph (3) of such section occurring on or after the date

16 of the enactment of this Act.

17 SEC. 209. STATE DATA EXCHANGES.

18 Whenever the Commissioner of Social Security requests

19 information from a State for the purpose of ascertaining

20 an individual’s eligibility for benefits (or the correct

21 amount of such benefits) under title II or XVI of the Social

22 Security Act, the standards of the Commissioner promul23 gated pursuant to section 1106 of such Act or any other

24 Federal law for the use, safeguarding, and disclosure of in25 formation are deemed to meet any standards of the State
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1 that would otherwise apply to the disclosure of information

2 by the State to the Commissioner.

3 SEC. 210. STUDY ON POSSIBLE MEASURES TO IMPROVE

4 FRAUD PREVENTION AND ADMINISTRATIVE

5 PROCESSING.

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

7 the enactment of this Act, the Commissioner of Social Secu8 rity, in consultation with the Inspector General of the So9 cial Security Administration and the Attorney General,

10 shall conduct a study of possible measures to improve—

11 (1) prevention of fraud on the part of individ12 uals entitled to disability benefits under section 223

13 of the Social Security Act or benefits under section

14 202 of such Act based on the beneficiary’s disability,

15 individuals eligible for supplemental security income

16 benefits under title XVI of such Act, and applicants

17 for any such benefits; and

18 (2) timely processing of reported income changes

19 by individuals receiving such benefits.

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

21 the enactment of this Act, the Commissioner shall submit

22 to the Committee on Ways and Means of the House of Rep23 resentatives and the Committee on Finance of the Senate

24 a written report that contains the results of the Commis25 sioner’s study under subsection (a). The report shall contain
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1 such recommendations for legislative and administrative

2 changes as the Commissioner considers appropriate.

3 SEC. 211. ANNUAL REPORT ON AMOUNTS NECESSARY TO

4 COMBAT FRAUD.

5 (a) IN GENERAL.—Section 704(b)(1) of the Social Se6 curity Act (42 U.S.C. 904(b)(1)) is amended—

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

8 (2) by adding at the end the following new sub9 paragraph:

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

11 budget prepared pursuant to subparagraph (A) an

12 itemization of the amount of funds required by the Social

13 Security Administration for the fiscal year covered by the

14 budget to support efforts to combat fraud committed by ap15 plicants and beneficiaries.’’.

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

17 section shall apply with respect to annual budgets prepared

18 for fiscal years after fiscal year 1999.

19 SEC. 212. COMPUTER MATCHES WITH MEDICARE AND MED20 ICAID INSTITUTIONALIZATION DATA.

21 (a) IN GENERAL.—Section 1611(e)(1) of the Social Se22 curity Act (42 U.S.C. 1382(e)(1)) is amended by adding

23 at the end the following:

24 ‘‘(J) For the purpose of carrying out this paragraph,

25 the Commissioner of Social Security shall conduct periodic
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1 computer matches with data maintained by the Secretary

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

3 The Secretary shall furnish to the Commissioner, in such

4 form and manner and under such terms as the Commis5 sioner and the Secretary shall mutually agree, such infor6 mation as the Commissioner may request for this purpose.

7 Information obtained pursuant to such a match may be

8 substituted for the physician’s certification otherwise re9 quired under subparagraph (G)(i).’’.

10 (b) CONFORMING AMENDMENT.—Section

11 1611(e)(1)(G) of such Act (42 U.S.C. 1382(e)(1)(G)) is

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

13 ‘‘subparagraph (H) or (J)’’.

14 SEC. 213. ACCESS TO INFORMATION HELD BY FINANCIAL

15 INSTITUTIONS.

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

17 U.S.C. 1383(e)(1)(B)) is amended—

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

19 The’’; and

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

21 clause:

22 ‘‘(ii)(I) The Commissioner of Social Security may re23 quire each applicant for, or recipient of, benefits under this

24 title to provide authorization by the applicant or recipient

25 (or by any other person whose income or resources are mate-
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1 rial to the determination of the eligibility of the applicant

2 or recipient for such benefits) for the Commissioner to ob3 tain (subject to the cost reimbursement requirements of sec4 tion 1115(a) of the Right to Financial Privacy Act) from

5 any financial institution (within the meaning of section

6 1101(1) of such Act) any financial record (within the mean7 ing of section 1101(2) of such Act) held by the institution

8 with respect to the applicant or recipient (or any such other

9 person) whenever the Commissioner determines the record

10 is needed in connection with a determination with respect

11 to such eligibility or the amount of such benefits.

12 ‘‘(II) Notwithstanding section 1104(a)(1) of the Right

13 to Financial Privacy Act, an authorization provided by an

14 applicant or recipient (or any other person whose income

15 or resources are material to the determination of the eligi16 bility of the applicant or recipient) pursuant to subclause

17 (I) of this clause shall remain effective until the earliest

18 of—

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

20 on the applicant’s application for eligibility for bene21 fits under this title;

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

23 for benefits under this title; or

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

25 recipient (or such other person referred to in sub-
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1 clause (I)) of the authorization, in a written notifica2 tion to the Commissioner.

3 ‘‘(III)(aa) An authorization obtained by the Commis4 sioner of Social Security pursuant to this clause shall be

5 considered to meet the requirements of the Right to Finan6 cial Privacy Act for purposes of section 1103(a) of such Act,

7 and need not be furnished to the financial institution, not8 withstanding section 1104(a) of such Act.

9 ‘‘(bb) The certification requirements of section 1103(b)

10 of the Right to Financial Privacy Act shall not apply to

11 requests by the Commissioner of Social Security pursuant

12 to an authorization provided under this clause.

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

14 authorization provided under this clause is deemed to meet

15 the requirements of section 1104(a)(3) of the Right to Fi16 nancial Privacy Act and the flush language of section 1102

17 of such Act.

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

19 provides authorization pursuant to this clause of the dura20 tion and scope of the authorization.

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

22 this title (or any such other person referred to in subclause

23 (I)) refuses to provide, or revokes, any authorization made

24 by the applicant or recipient for the Commissioner of Social

25 Security to obtain from any financial institution any fi-
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1 nancial record, the Commissioner may, on that basis, deter2 mine that the applicant or recipient is ineligible for benefits

3 under this title.’’.

4 Subtitle B—Benefits For Certain

5 World War II Veterans

6 SEC. 251. ESTABLISHMENT OF PROGRAM OF SPECIAL BENE7 FITS FOR CERTAIN WORLD WAR II VETERANS.

8 (a) IN GENERAL.—The Social Security Act is amend9 ed by inserting after title VII the following new title:

10 ‘‘TITLE VIII—SPECIAL BENEFITS

11 FOR CERTAIN WORLD WAR II

12 VETERANS

‘‘TABLE OF CONTENTS

‘‘Sec. 801. Basic entitlement to benefits.

‘‘Sec. 802. Qualified individuals.

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

‘‘Sec. 804. Disqualifications.

‘‘Sec. 805. Benefit amount.

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

‘‘Sec. 807. Representative payees.

‘‘Sec. 808. Overpayments and underpayments.

‘‘Sec. 809. Hearings and review.

‘‘Sec. 810. Other administrative provisions.

‘‘Sec. 811. Penalties for fraud.

‘‘Sec. 812. Definitions.

‘‘Sec. 813. Appropriations.

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

14 ‘‘Every individual who is a qualified individual under

15 section 802 shall, in accordance with and subject to the pro16 visions of this title, be entitled to a monthly benefit paid

17 by the Commissioner of Social Security for each month

18 after September 2000 (or such earlier month, if the Com-
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1 missioner determines is administratively feasible) the indi2 vidual resides outside the United States.

3 ‘‘SEC. 802. QUALIFIED INDIVIDUALS.

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

5 individual—

6 ‘‘(1) who has attained the age of 65 on or before

7 the date of the enactment of this title;

8 ‘‘(2) who is a World War II veteran;

9 ‘‘(3) who is eligible for a supplemental security

10 income benefit under title XVI for—

11 ‘‘(A) the month in which this title is en12 acted; and

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

14 files an application for benefits under this title;

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

16 percent of the Federal benefit rate under title XVI;

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

18 under this title; and

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

20 imposed by the Commissioner of Social Security

21 under this title,

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

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

24 ‘‘For purposes of section 801, with respect to any

25 month, an individual shall be regarded as residing outside
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1 the United States if, on the first day of the month, the indi2 vidual so resides outside the United States.

3 ‘‘SEC. 804. DISQUALIFICATIONS.

4 ‘‘(a) IN GENERAL.—Notwithstanding section 802, an

5 individual may not be a qualified individual for any

6 month—

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

8 Commissioner of Social Security is notified by the At9 torney General that the individual has been removed

10 from the United States pursuant to section 237(a) or

11 212(a)(6)(A) of the Immigration and Nationality Act

12 and before the month in which the individual is law13 fully admitted to the United States for permanent

14 residence;

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

16 fleeing to avoid prosecution, or custody or confine17 ment after conviction, under the laws of the United

18 States or the jurisdiction within the United States

19 from which the person has fled, for a crime, or an at20 tempt to commit a crime, that is a felony under the

21 laws of the place from which the individual has fled,

22 or which, in the case of the State of New Jersey, is

23 a high misdemeanor under the laws of such State;
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1 ‘‘(3) during any part of which the individual

2 violates a condition of probation or parole imposed

3 under Federal or State law; or

4 ‘‘(4) during which the individual resides in a

5 foreign country and is not a citizen or national of the

6 United States if payments for such month to individ7 uals residing in such country are withheld by the

8 Treasury Department under section 3329 of title 31,

9 United States Code.

10 ‘‘(b) REQUIREMENT FOR ATTORNEY GENERAL.—For

11 the purpose of carrying out subsection (a)(1), the Attorney

12 General shall notify the Commissioner of Social Security

13 as soon as practicable after the removal of any individual

14 under section 237(a) or 212(a)(6)(A) of the Immigration

15 and Nationality Act.

16 ‘‘SEC. 805. BENEFIT AMOUNT.

17 ‘‘The benefit under this title payable to a qualified in18 dividual for any month shall be in an amount equal to 75

19 percent of the Federal benefit rate under title XVI for the

20 month, reduced by the amount of the qualified individual’s

21 benefit income for the month.

22 ‘‘SEC. 806. APPLICATIONS AND FURNISHING OF INFORMA23 TION.

24 ‘‘(a) IN GENERAL.—The Commissioner of Social Secu25 rity shall, subject to subsection (b), prescribe such require-
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1 ments with respect to the filing of applications, the fur2 nishing of information and other material, and the report3 ing of events and changes in circumstances, as may be nec4 essary for the effective and efficient administration of this

5 title.

6 ‘‘(b) VERIFICATION REQUIREMENT.—The requirements

7 prescribed by the Commissioner of Social Security under

8 subsection (a) shall preclude any determination of entitle9 ment to benefits under this title solely on the basis of dec10 larations by the individual concerning qualifications or

11 other material facts, and shall provide for verification of

12 material information from independent or collateral

13 sources, and the procurement of additional information as

14 necessary in order to ensure that the benefits are provided

15 only to qualified individuals (or their representative pay16 ees) in correct amounts.

17 ‘‘SEC. 807. REPRESENTATIVE PAYEES.

18 ‘‘(a) IN GENERAL.—If the Commissioner of Social Se19 curity determines that the interest of any qualified indi20 vidual under this title would be served thereby, payment

21 of the qualified individual’s benefit under this title may be

22 made, regardless of the legal competency or incompetency

23 of the qualified individual, either directly to the qualified

24 individual, or for his or her benefit, to another person (the

25 meaning of which term, for purposes of this section, includes
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1 an organization) with respect to whom the requirements of

2 subsection (b) have been met (in this section referred to as

3 the qualified individual’s ‘representative payee’). If the

4 Commissioner of Social Security determines that a rep5 resentative payee has misused any benefit paid to the rep6 resentative payee pursuant to this section, section 205(j),

7 or section 1631(a)(2), the Commissioner of Social Security

8 shall promptly revoke the person’s designation as the quali9 fied individual’s representative payee under this subsection,

10 and shall make payment to an alternative representative

11 payee or, if the interest of the qualified individual under

12 this title would be served thereby, to the qualified indi13 vidual.

14 ‘‘(b) EXAMINATION OF FITNESS OF PROSPECTIVE REP15 RESENTATIVE PAYEE.—

16 ‘‘(1) Any determination under subsection (a) to

17 pay the benefits of a qualified individual to a rep18 resentative payee shall be made on the basis of—

19 ‘‘(A) an investigation by the Commissioner

20 of Social Security of the person to serve as rep21 resentative payee, which shall be conducted in

22 advance of the determination and shall, to the

23 extent practicable, include a face-to-face inter24 view with the person (or, in the case of an orga-
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1 nization, a representative of the organization);

2 and

3 ‘‘(B) adequate evidence that the arrange4 ment is in the interest of the qualified indi5 vidual.

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

7 paragraph (1), the Commissioner of Social Security

8 shall—

9 ‘‘(A) require the person being investigated

10 to submit documented proof of the identity of the

11 person;

12 ‘‘(B) in the case of a person who has a so13 cial security account number issued for purposes

14 of the program under title II or an employer

15 identification number issued for purposes of the

16 Internal Revenue Code of 1986, verify the num17 ber;

18 ‘‘(C) determine whether the person has been

19 convicted of a violation of section 208, 811, or

20 1632; and

21 ‘‘(D) determine whether payment of benefits

22 to the person in the capacity as representative

23 payee has been revoked or terminated pursuant

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

25 1631(a)(2)(A)(iii) by reason of misuse of funds
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1 paid as benefits under this title, title II, or XVI,

2 respectively.

3 ‘‘(c) REQUIREMENT FOR MAINTAINING LISTS OF UN4 DESIRABLE PAYEES.—The Commissioner of Social Security

5 shall establish and maintain lists which shall be updated

6 periodically and which shall be in a form that renders such

7 lists available to the servicing offices of the Social Security

8 Administration. The lists shall consist of—

9 ‘‘(1) the names and (if issued) social security ac10 count numbers or employer identification numbers of

11 all persons with respect to whom, in the capacity of

12 representative payee, the payment of benefits has been

13 revoked or terminated under this section, section

14 205(j), or section 1631(a)(2)(A)(iii) by reason of mis15 use of funds paid as benefits under this title, title II,

16 or XVI, respectively; and

17 ‘‘(2) the names and (if issued) social security ac18 count numbers or employer identification numbers of

19 all persons who have been convicted of a violation of

20 section 208, 811, or 1632.

21 ‘‘(d) PERSONS INELIGIBLE TO SERVE AS REPRESENT22 ATIVE PAYEES.—

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

24 individual may not be paid to any other person pur25 suant to this section if—
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1 ‘‘(A) the person has been convicted of a vio2 lation of section 208, 811, or 1632;

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

4 payment of benefits to the person in the capacity

5 of representative payee has been revoked or ter6 minated under this section, section 205(j), or sec7 tion 1631(a)(2)(A)(ii) by reason of misuse of

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

9 or title XVI, respectively; or

10 ‘‘(C) except as provided in paragraph

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

12 individual and provides the qualified individual

13 with goods or services for consideration.

14 ‘‘(2) EXEMPTIONS.—

15 ‘‘(A) The Commissioner of Social Security

16 may prescribe circumstances under which the

17 Commissioner of Social Security may grant an

18 exemption from paragraph (1) to any person on

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

20 best interest of the qualified individual whose

21 benefits would be paid to the person pursuant to

22 this section.

23 ‘‘(B) Paragraph (1)(C) shall not apply with

24 respect to any person who is a creditor referred

25 to in such paragraph if the creditor is—
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1 ‘‘(i) a relative of the qualified indi2 vidual and the relative resides in the same

3 household as the qualified individual;

4 ‘‘(ii) a legal guardian or legal rep5 resentative of the individual;

6 ‘‘(iii) a facility that is licensed or cer7 tified as a care facility under the law of the

8 political jurisdiction in which the qualified

9 individual resides;

10 ‘‘(iv) a person who is an adminis11 trator, owner, or employee of a facility re12 ferred to in clause (iii), if the qualified in13 dividual resides in the facility, and the

14 payment to the facility or the person is

15 made only after the Commissioner of Social

16 Security has made a good faith effort to lo17 cate an alternative representative payee to

18 whom payment would serve the best inter19 ests of the qualified individual; or

20 ‘‘(v) a person who is determined by the

21 Commissioner of Social Security, on the

22 basis of written findings and pursuant to

23 procedures prescribed by the Commissioner

24 of Social Security, to be acceptable to serve

25 as a representative payee.
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1 ‘‘(C) The procedures referred to in subpara2 graph (B)(v) shall require the person who will

3 serve as representative payee to establish, to the

4 satisfaction of the Commissioner of Social Secu5 rity, that—

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

7 qualified individual;

8 ‘‘(ii) the financial relationship of the

9 person to the qualified individual poses no

10 substantial conflict of interest; and

11 ‘‘(iii) no other more suitable represent12 ative payee can be found.

13 ‘‘(e) DEFERRAL OF PAYMENT PENDING APPOINTMENT

14 OF REPRESENTATIVE PAYEE.—

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

16 the Commissioner of Social Security makes a deter17 mination described in the first sentence of subsection

18 (a) with respect to any qualified individual’s benefit

19 and determines that direct payment of the benefit to

20 the qualified individual would cause substantial harm

21 to the qualified individual, the Commissioner of So22 cial Security may defer (in the case of initial entitle23 ment) or suspend (in the case of existing entitlement)

24 direct payment of the benefit to the qualified indi-
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1 vidual, until such time as the selection of a represent2 ative payee is made pursuant to this section.

3 ‘‘(2) TIME LIMITATION.—

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

5 subparagraph (B), any deferral or suspension of

6 direct payment of a benefit pursuant to para7 graph (1) shall be for a period of not more than

8 1 month.

9 ‘‘(B) EXCEPTION IN THE CASE OF INCOM10 PETENCY.—Subparagraph (A) shall not apply in

11 any case in which the qualified individual is, as

12 of the date of the Commissioner of Social Secu13 rity’s determination, legally incompetent under

14 the laws of the jurisdiction in which the indi15 vidual resides.

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

17 Payment of any benefits which are deferred or sus18 pended pending the selection of a representative payee

19 shall be made to the qualified individual or the rep20 resentative payee as a single sum or over such period

21 of time as the Commissioner of Social Security deter22 mines is in the best interest of the qualified indi23 vidual.

24 ‘‘(f) HEARING.—Any qualified individual who is dis25 satisfied with a determination by the Commissioner of So-
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1 cial Security to make payment of the qualified individual’s

2 benefit to a representative payee under subsection (a) of this

3 section or with the designation of a particular person to

4 serve as representative payee shall be entitled to a hearing

5 by the Commissioner of Social Security to the same extent

6 as is provided in section 809(a), and to judicial review of

7 the Commissioner of Social Security’s final decision as is

8 provided in section 809(b).

9 ‘‘(g) NOTICE REQUIREMENTS.—

10 ‘‘(1) IN GENERAL.—In advance, to the extent

11 practicable, of the payment of a qualified individual’s

12 benefit to a representative payee under subsection (a),

13 the Commissioner of Social Security shall provide

14 written notice of the Commissioner’s initial deter15 mination to so make the payment. The notice shall be

16 provided to the qualified individual, except that, if

17 the qualified individual is legally incompetent, then

18 the notice shall be provided solely to the legal guard19 ian or legal representative of the qualified individual.

20 ‘‘(2) SPECIFIC REQUIREMENTS.—Any notice re21 quired by paragraph (1) shall be clearly written in

22 language that is easily understandable to the reader,

23 shall identify the person to be designated as the quali24 fied individual’s representative payee, and shall ex25 plain to the reader the right under subsection (f) of
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1 the qualified individual or of the qualified individ2 ual’s legal guardian or legal representative—

3 ‘‘(A) to appeal a determination that a rep4 resentative payee is necessary for the qualified

5 individual;

6 ‘‘(B) to appeal the designation of a par7 ticular person to serve as the representative

8 payee of the qualified individual; and

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

10 designation is based and to submit additional

11 evidence.

12 ‘‘(h) ACCOUNTABILITY MONITORING.—

13 ‘‘(1) IN GENERAL.—In any case where payment

14 under this title is made to a person other than the

15 qualified individual entitled to the payment, the

16 Commissioner of Social Security shall establish a sys17 tem of accountability monitoring under which the

18 person shall report not less often than annually with

19 respect to the use of the payments. The Commissioner

20 of Social Security shall establish and implement sta21 tistically valid procedures for reviewing the reports in

22 order to identify instances in which persons are not

23 properly using the payments.

24 ‘‘(2) SPECIAL REPORTS.—Notwithstanding para25 graph (1), the Commissioner of Social Security may
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1 require a report at any time from any person receiv2 ing payments on behalf of a qualified individual, if

3 the Commissioner of Social Security has reason to be4 lieve that the person receiving the payments is mis5 using the payments.

6 ‘‘(3) MAINTAINING LISTS OF PAYEES.—The Com7 missioner of Social Security shall maintain lists

8 which shall be updated periodically of—

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

10 social security account number or employer iden11 tification number of each representative payee

12 who is receiving benefit payments pursuant to

13 this section, section 205(j), or section 1631(a)(2);

14 and

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

16 account number of each individual for whom

17 each representative payee is reported to be pro18 viding services as representative payee pursuant

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

20 1631(a)(2).

21 ‘‘(4) MAINTAINING LISTS OF AGENCIES.—The

22 Commissioner of Social Security shall maintain lists,

23 which shall be updated periodically, of public agencies

24 and community-based nonprofit social service agen25 cies which are qualified to serve as representative
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1 payees pursuant to this section and which are located

2 in the jurisdiction in which any qualified individual

3 resides.

4 ‘‘(i) RESTITUTION.—In any case where the negligent

5 failure of the Commissioner of Social Security to investigate

6 or monitor a representative payee results in misuse of bene7 fits by the representative payee, the Commissioner of Social

8 Security shall make payment to the qualified individual or

9 the individual’s alternative representative payee of an

10 amount equal to the misused benefits. The Commissioner

11 of Social Security shall make a good faith effort to obtain

12 restitution from the terminated representative payee.

13 ‘‘SEC. 808. OVERPAYMENTS AND UNDERPAYMENTS.

14 ‘‘(a) IN GENERAL.—Whenever the Commissioner of So15 cial Security finds that more or less than the correct

16 amount of payment has been made to any person under

17 this title, proper adjustment or recovery shall be made, as

18 follows:

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

20 more than the correct amount, the Commissioner of

21 Social Security shall decrease any payment—

22 ‘‘(A) under this title to which the overpaid

23 person (if a qualified individual) is entitled, or

24 shall require the overpaid person or his or her es25 tate to refund the amount in excess of the correct
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1 amount, or, if recovery is not obtained under

2 these 2 methods, shall seek or pursue recovery by

3 means of reduction in tax refunds based on no4 tice to the Secretary of the Treasury, as author5 ized under section 3720A of title 31, United

6 States Code; or

7 ‘‘(B) under title II to recover the amount in

8 excess of the correct amount, if the person is not

9 currently eligible for payment under this title.

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

11 correct amount to a qualified individual who, at the

12 time the Commissioner of Social Security is prepared

13 to take action with respect to the underpayment—

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

15 Security shall make payment to the qualified in16 dividual (or the qualified individual’s represent17 ative payee designated under section 807) of the

18 balance of the amount due the underpaid quali19 fied individual; or

20 ‘‘(B) is deceased, the balance of the amount

21 due shall revert to the general fund of the Treas22 ury.

23 ‘‘(b) NO EFFECT ON TITLE VIII ELIGIBILITY OR BEN24 EFIT AMOUNT.—In any case in which the Commissioner

25 of Social Security takes action in accordance with sub-
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1 section (a)(1)(B) to recover an amount incorrectly paid to

2 an individual, that individual shall not, as a result of such

3 action—

4 ‘‘(1) become qualified for benefits under this title;

5 or

6 ‘‘(2) if such individual is otherwise so qualified,

7 become qualified for increased benefits under this

8 title.

9 ‘‘(c) WAIVER OF RECOVERY OF OVERPAYMENT.—In

10 any case in which more than the correct amount of payment

11 has been made, there shall be no adjustment of payments

12 to, or recovery by the United States from, any person who

13 is without fault if the Commissioner of Social Security de14 termines that the adjustment or recovery would defeat the

15 purpose of this title or would be against equity and good

16 conscience.

17 ‘‘(d) LIMITED IMMUNITY FOR DISBURSING OFFI18 CERS.—A disbursing officer may not be held liable for any

19 amount paid by the officer if the adjustment or recovery

20 of the amount is waived under subsection (b), or adjustment

21 under subsection (a) is not completed before the death of

22 the qualified individual against whose benefits deductions

23 are authorized.

24 ‘‘(e) AUTHORIZED COLLECTION PRACTICES.—
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1 ‘‘(1) IN GENERAL.—With respect to any delin2 quent amount, the Commissioner of Social Security

3 may use the collection practices described in sections

4 3711(e), 3716, and 3718 of title 31, United States

5 Code, as in effect on October 1, 1994.

6 ‘‘(2) DEFINITION.—For purposes of paragraph

7 (1), the term ‘delinquent amount’ means an

8 amount—

9 ‘‘(A) in excess of the correct amount of the

10 payment under this title; and

11 ‘‘(B) determined by the Commissioner of

12 Social Security to be otherwise unrecoverable

13 under this section from a person who is not a

14 qualified individual under this title.

15 ‘‘SEC. 809. HEARINGS AND REVIEW.

16 ‘‘(a) HEARINGS.—

17 ‘‘(1) IN GENERAL.—The Commissioner of Social

18 Security shall make findings of fact and decisions as

19 to the rights of any individual applying for payment

20 under this title. The Commissioner of Social Security

21 shall provide reasonable notice and opportunity for a

22 hearing to any individual who is or claims to be a

23 qualified individual and is in disagreement with any

24 determination under this title with respect to entitle25 ment to, or the amount of, benefits under this title,
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1 if the individual requests a hearing on the matter in

2 disagreement within 60 days after notice of the deter3 mination is received, and, if a hearing is held, shall,

4 on the basis of evidence adduced at the hearing af5 firm, modify, or reverse the Commissioner of Social

6 Security’s findings of fact and the decision. The Com7 missioner of Social Security may, on the Commis8 sioner of Social Security’s own motion, hold such

9 hearings and conduct such investigations and other

10 proceedings as the Commissioner of Social Security

11 deems necessary or proper for the administration of

12 this title. In the course of any hearing, investigation,

13 or other proceeding, the Commissioner may admin14 ister oaths and affirmations, examine witnesses, and

15 receive evidence. Evidence may be received at any

16 hearing before the Commissioner of Social Security

17 even though inadmissible under the rules of evidence

18 applicable to court procedure. The Commissioner of

19 Social Security shall specifically take into account

20 any physical, mental, educational, or linguistic limi21 tation of the individual (including any lack of facil22 ity with the English language) in determining, with

23 respect to the entitlement of the individual for benefits

24 under this title, whether the individual acted in good
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1 faith or was at fault, and in determining fraud, de2 ception, or intent.

3 ‘‘(2) EFFECT OF FAILURE TO TIMELY REQUEST

4 REVIEW.—A failure to timely request review of an

5 initial adverse determination with respect to an ap6 plication for any payment under this title or an ad7 verse determination on reconsideration of such an ini8 tial determination shall not serve as a basis for de9 nial of a subsequent application for any payment

10 under this title if the applicant demonstrates that the

11 applicant failed to so request such a review acting in

12 good faith reliance upon incorrect, incomplete, or

13 misleading information, relating to the consequences

14 of reapplying for payments in lieu of seeking review

15 of an adverse determination, provided by any officer

16 or employee of the Social Security Administration.

17 ‘‘(3) NOTICE REQUIREMENTS.—In any notice of

18 an adverse determination with respect to which a re19 view may be requested under paragraph (1), the Com20 missioner of Social Security shall describe in clear

21 and specific language the effect on possible entitlement

22 to benefits under this title of choosing to reapply in

23 lieu of requesting review of the determination.

24 ‘‘(b) JUDICIAL REVIEW.—The final determination of

25 the Commissioner of Social Security after a hearing under
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1 subsection (a)(1) shall be subject to judicial review as pro2 vided in section 205(g) to the same extent as the Commis3 sioner of Social Security’s final determinations under sec4 tion 205.

5 ‘‘SEC. 810. OTHER ADMINISTRATIVE PROVISIONS.

6 ‘‘(a) REGULATIONS AND ADMINISTRATIVE ARRANGE7 MENTS.—The Commissioner of Social Security may pre8 scribe such regulations, and make such administrative and

9 other arrangements, as may be necessary or appropriate to

10 carry out this title.

11 ‘‘(b) PAYMENT OF BENEFITS.—Benefits under this title

12 shall be paid at such time or times and in such installments

13 as the Commissioner of Social Security determines are in

14 the interests of economy and efficiency.

15 ‘‘(c) ENTITLEMENT REDETERMINATIONS.—An indi16 vidual’s entitlement to benefits under this title, and the

17 amount of the benefits, may be redetermined at such time

18 or times as the Commissioner of Social Security determines

19 to be appropriate.

20 ‘‘(d) SUSPENSION AND TERMINATION OF BENEFITS.—

21 Regulations prescribed by the Commissioner of Social Secu22 rity under subsection (a) may provide for the suspension

23 and termination of entitlement to benefits under this title

24 as the Commissioner determines is appropriate.
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1 ‘‘SEC. 811. PENALTIES FOR FRAUD.

2 ‘‘(a) IN GENERAL.—Whoever—

3 ‘‘(1) knowingly and willfully makes or causes to

4 be made any false statement or representation of a

5 material fact in an application for benefits under this

6 title;

7 ‘‘(2) at any time knowingly and willfully makes

8 or causes to be made any false statement or represen9 tation of a material fact for use in determining any

10 right to the benefits;

11 ‘‘(3) having knowledge of the occurrence of any

12 event affecting—

13 ‘‘(A) his or her initial or continued right to

14 the benefits; or

15 ‘‘(B) the initial or continued right to the

16 benefits of any other individual in whose behalf

17 he or she has applied for or is receiving the ben18 efit,

19 conceals or fails to disclose the event with an intent

20 fraudulently to secure the benefit either in a greater

21 amount or quantity than is due or when no such ben22 efit is authorized; or

23 ‘‘(4) having made application to receive any

24 such benefit for the use and benefit of another and

25 having received it, knowingly and willfully converts
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1 the benefit or any part thereof to a use other than for

2 the use and benefit of the other individual,

3 shall be fined under title 18, United States Code, impris4 oned not more than 5 years, or both.

5 ‘‘(b) RESTITUTION BY REPRESENTATIVE PAYEE.—If a

6 person or organization violates subsection (a) in the per7 son’s or organization’s role as, or in applying to become,

8 a representative payee under section 807 on behalf of a

9 qualified individual, and the violation includes a willful

10 misuse of funds by the person or entity, the court may also

11 require that full or partial restitution of funds be made to

12 the qualified individual.

13 ‘‘SEC. 812. DEFINITIONS.

14 ‘‘In this title:

15 ‘‘(1) WORLD WAR II VETERAN.—The term ‘World

16 War II veteran’ means a person who—

17 ‘‘(A) served during World War II—

18 ‘‘(i) in the active military, naval, or

19 air service of the United States during

20 World War II; or

21 ‘‘(ii) in the organized military forces of

22 the Government of the Commonwealth of the

23 Philippines, while the forces were in the

24 service of the Armed Forces of the United

25 States pursuant to the military order of the
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1 President dated July 26, 1941, including

2 among the military forces organized guer3 rilla forces under commanders appointed,

4 designated, or subsequently recognized by

5 the Commander in Chief, Southwest Pacific

6 Area, or other competent authority in the

7 Army of the United States, in any case in

8 which the service was rendered before De9 cember 31, 1946; and

10 ‘‘(B) was discharged or released therefrom

11 under conditions other than dishonorable—

12 ‘‘(i) after service of 90 days or more; or

13 ‘‘(ii) because of a disability or injury

14 incurred or aggravated in the line of active

15 duty.

16 ‘‘(2) WORLD WAR II.—The term ‘World War II’

17 means the period beginning on September 16, 1940,

18 and ending on July 24, 1947.

19 ‘‘(3) SUPPLEMENTAL SECURITY INCOME BENEFIT

20 UNDER TITLE XVI.—The term ‘supplemental security

21 income benefit under title XVI’, except as otherwise

22 provided, includes State supplementary payments

23 which are paid by the Commissioner of Social Secu24 rity pursuant to an agreement under section 1616(a)

25 of this Act or section 212(b) of Public Law 93–66.
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1 ‘‘(4) FEDERAL BENEFIT RATE UNDER TITLE

2 XVI.—The term ‘Federal benefit rate under title XVI’

3 means, with respect to any month, the amount of the

4 supplemental security income cash benefit (not in5 cluding any State supplementary payment which is

6 paid by the Commissioner of Social Security pursu7 ant to an agreement under section 1616(a) of this Act

8 or section 212(b) of Public Law 93–66) payable under

9 title XVI for the month to an eligible individual with

10 no income.

11 ‘‘(5) UNITED STATES.—The term ‘United States’

12 means, notwithstanding section 1101(a)(1), only the

13 50 States, the District of Columbia, and the Common14 wealth of the Northern Mariana Islands.

15 ‘‘(6) BENEFIT INCOME.—The term ‘benefit in16 come’ means any recurring payment received by a

17 qualified individual as an annuity, pension, retire18 ment, or disability benefit (including any veterans’

19 compensation or pension, workmen’s compensation

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

21 benefit, railroad retirement annuity or pension, and

22 unemployment insurance benefit), but only if a simi23 lar payment was received by the individual from the

24 same (or a related) source during the 12-month pe-
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1 riod preceding the month in which the individual files

2 an application for benefits under this title.

3 ‘‘SEC. 813. APPROPRIATIONS.

4 ‘‘There are hereby appropriated for fiscal year 2000

5 and subsequent fiscal years, out of any funds in the Treas6 ury not otherwise appropriated, such sums as may be nec7 essary to carry out this title.’’.

8 (b) CONFORMING AMENDMENTS.—

9 (1) SOCIAL SECURITY TRUST FUNDS LAE AC10 COUNT.—Section 201(g) of such Act (42 U.S.C.

11 401(g)) is amended—

12 (A) in the fourth sentence of paragraph

13 (1)(A), by inserting after ‘‘this title,’’ the fol14 lowing: ‘‘title VIII,’’;

15 (B) in paragraph (1)(B)(i)(I), by inserting

16 after ‘‘this title,’’ the following: ‘‘title VIII,’’; and

17 (C) in paragraph (1)(C)(i), by inserting

18 after ‘‘this title,’’ the following: ‘‘title VIII,’’.

19 (2) REPRESENTATIVE PAYEE PROVISIONS OF

20 TITLE II.—Section 205(j) of such Act (42 U.S.C.

21 405(j)) is amended—

22 (A) in paragraph (1)(A), by inserting ‘‘807

23 or’’ before ‘‘1631(a)(2)’’;

24 (B) in paragraph (2)(B)(i)(I), by inserting

25 ‘‘, title VIII,’’ before ‘‘or title XVI’’;
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1 (C) in paragraph (2)(B)(i)(III), by insert2 ing ‘‘, 811,’’ before ‘‘or 1632’’;

3 (D) in paragraph (2)(B)(i)(IV)—

4 (i) by inserting ‘‘, the designation of

5 such person as a representative payee has

6 been revoked pursuant to section 807(a),’’

7 before ‘‘or payment of benefits’’; and

8 (ii) by inserting ‘‘, title VIII,’’ before

9 ‘‘or title XVI’’;

10 (E) in paragraph (2)(B)(ii)(I)—

11 (i) by inserting ‘‘whose designation as

12 a representative payee has been revoked

13 pursuant to section 807(a),’’ before ‘‘or with

14 respect to whom’’; and

15 (ii) by inserting ‘‘, title VIII,’’ before

16 ‘‘or title XVI’’;

17 (F) in paragraph (2)(B)(ii)(II), by insert18 ing ‘‘, 811,’’ before ‘‘or 1632’’;

19 (G) in paragraph (2)(C)(i)(II), by inserting

20 ‘‘, the designation of such person as a representa21 tive payee has been revoked pursuant to section

22 807(a),’’ before ‘‘or payment of benefits’’;

23 (H) in each of clauses (i) and (ii) of para24 graph (3)(E), by inserting ‘‘, section 807,’’ before

25 ‘‘or section 1631(a)(2)’’;
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1 (I) in paragraph (3)(F), by inserting ‘‘807

2 or’’ before ‘‘1631(a)(2)’’; and

3 (J) in paragraph (4)(B)(i), by inserting

4 ‘‘807 or’’ before ‘‘1631(a)(2)’’.

5 (3) WITHHOLDING FOR CHILD SUPPORT AND ALI6 MONY OBLIGATIONS.—Section 459(h)(1)(A) of such

7 Act (42 U.S.C. 659(h)(1)(A)) is amended—

8 (A) at the end of clause (iii), by striking

9 ‘‘and’’;

10 (B) at the end of clause (iv), by striking

11 ‘‘but’’ and inserting ‘‘and’’; and

12 (C) by adding at the end a new clause as

13 follows:

14 ‘‘(v) special benefits for certain World

15 War II veterans payable under title VIII;

16 but’’.

17 (4) SOCIAL SECURITY ADVISORY BOARD.—Sec18 tion 703(b) of such Act (42 U.S.C. 903(b)) is amended

19 by striking ‘‘title II’’ and inserting ‘‘title II, the pro20 gram of special benefits for certain World War II vet21 erans under title VIII,’’.

22 (5) DELIVERY OF CHECKS.—Section 708 of such

23 Act (42 U.S.C. 908) is amended—

24 (A) in subsection (a), by striking ‘‘title II’’

25 and inserting ‘‘title II, title VIII,’’; and
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1 (B) in subsection (b), by striking ‘‘title II’’

2 and inserting ‘‘title II, title VIII,’’.

3 (6) CIVIL MONETARY PENALTIES.—Section 1129

4 of such Act (42 U.S.C. 1320a–8) is amended—

5 (A) in the title, by striking ‘‘II’’ and insert6 ing ‘‘II, VIII’’;

7 (B) in subsection (a)(1)—

8 (i) by striking ‘‘or’’ at the end of sub9 paragraph (A);

10 (ii) by redesignating subparagraph (B)

11 as subparagraph (C); and

12 (iii) by inserting after subparagraph

13 (A) the following new subparagraph:

14 ‘‘(B) benefits or payments under title VIII,

15 or’’;

16 (C) in subsection (a)(2), by inserting ‘‘or

17 title VIII,’’ after ‘‘title II’’;

18 (D) in subsection (e)(1)(C)—

19 (i) by striking ‘‘or’’ at the end of clause

20 (i);

21 (ii) by redesignating clause (ii) as

22 clause (iii); and

23 (iii) by inserting after clause (i) the

24 following new clause:
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1 ‘‘(ii) by decrease of any payment

2 under title VIII to which the person is enti3 tled, or’’;

4 (E) in subsection (e)(2)(B), by striking

5 ‘‘title XVI’’ and inserting ‘‘title VIII or XVI’’;

6 and

7 (F) in subsection (l), by striking ‘‘title XVI’’

8 and inserting ‘‘title VIII or XVI’’.

9 (7) RECOVERY OF SSI OVERPAYMENTS.—Section

10 1147 of such Act (42 U.S.C. 1320b–17) is amended—

11 (A) in subsection (a)(1)—

12 (i) by inserting ‘‘or VIII’’ after ‘‘title

13 II’’ the first place it appears; and

14 (ii) by striking ‘‘title II’’ the second

15 place it appears and inserting ‘‘such title’’;

16 and

17 (B) in the heading, by striking ‘‘SOCIAL SE18 CURITY’’ and inserting ‘‘OTHER’’.

19 (8) RECOVERY OF SOCIAL SECURITY OVERPAY20 MENTS.—Part A of title XI of the Social Security Act

21 is amended by inserting after section 1147 (42 U.S.C.

22 1320b–17) the following new section:

23 ‘‘RECOVERY OF SOCIAL SECURITY BENEFIT OVERPAYMENTS

24 FROM TITLE VIII BENEFITS

25 ‘‘SEC. 1147A. Whenever the Commissioner of Social

26 Security determines that more than the correct amount of
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1 any payment has been made under title II to an individual

2 who is not currently receiving benefits under that title but

3 who is receiving benefits under title VIII, the Commissioner

4 may recover the amount incorrectly paid under title II by

5 decreasing any amount which is payable to the individual

6 under title VIII.’’.

7 (9) REPRESENTATIVE PAYEE PROVISIONS OF

8 TITLE XVI.—Section 1631(a)(2) of such Act (42

9 U.S.C. 1383(a)(2)) is amended—

10 (A) in subparagraph (A)(iii), by inserting

11 ‘‘or 807’’ after ‘‘205(j)(1)’’;

12 (B) in subparagraph (B)(ii)(I), by inserting

13 ‘‘, title VIII,’’ before ‘‘or this title’’;

14 (C) in subparagraph (B)(ii)(III), by insert15 ing ‘‘, 811,’’ before ‘‘or 1632’’;

16 (D) in subparagraph (B)(ii)(IV)—

17 (i) by inserting ‘‘whether the designa18 tion of such person as a representative

19 payee has been revoked pursuant to section

20 807(a),’’ before ‘‘and whether certification’’;

21 and

22 (ii) by inserting ‘‘, title VIII,’’ before

23 ‘‘or this title’’;

24 (E) in subparagraph (B)(iii)(II), by insert25 ing ‘‘the designation of such person as a rep-
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1 resentative payee has been revoked pursuant to

2 section 807(a),’’ before ‘‘or certification’’; and

3 (F) in subparagraph (D)(ii)(II)(aa), by in4 serting ‘‘or 807’’ after ‘‘205(j)(4)’’.

5 (10) ADMINISTRATIVE OFFSET.—Section

6 3716(c)(3)(C) of title 31, United States Code, is

7 amended—

8 (A) by striking ‘‘sections 205(b)(1)’’ and in9 serting ‘‘sections 205(b)(1), 809(a)(1),’’; and

10 (B) by striking ‘‘either title II’’ and insert11 ing ‘‘title II, VIII,’’.

12 Subtitle C—Study

13 SEC. 261. STUDY OF DENIAL OF SSI BENEFITS FOR FAMILY

14 FARMERS.

15 (a) IN GENERAL.—The Commissioner of Social Secu16 rity shall conduct a study of the reasons why family farm17 ers with resources of less than $100,000 are denied supple18 mental security income benefits under title XVI of the So19 cial Security Act, including whether the deeming process

20 unduly burdens and discriminates against family farmers

21 who do not institutionalize a disabled dependent, and shall

22 determine the number of such farmers who have been denied

23 such benefits during each of the preceding 10 years.

24 (b) REPORT TO THE CONGRESS.—Within 1 year after

25 the date of the enactment of this Act, the Commissioner of
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1 Social Security shall prepare and submit to the Committee

2 on Ways and Means of the House of Representatives and

3 the Committee on Finance of the Senate a report that con4 tains the results of the study, and the determination, re5 quired by subsection (a).

6 TITLE III—CHILD SUPPORT

7 SEC. 301. NARROWING OF HOLD HARMLESS PROVISION FOR

8 STATE SHARE OF DISTRIBUTION OF COL9 LECTED CHILD SUPPORT.

10 (a) IN GENERAL.—Section 457(d) of the Social Secu11 rity Act (42 U.S.C. 657(d)) is amended to read as follows:

12 ‘‘(d) HOLD HARMLESS PROVISION.—If—

13 ‘‘(1) the State share of amounts collected in the

14 fiscal year which could be retained to reimburse the

15 State for amounts paid to families as assistance by

16 the State is less than the State share of such amounts

17 collected in fiscal year 1995 (determined in accord18 ance with section 457 as in effect on August 21,

19 1996); and

20 ‘‘(2)(A) the State has distributed to families that

21 include an adult receiving assistance under the pro22 gram under part A at least 80 percent of the current

23 support payments collected during the preceding fis24 cal year on behalf of such families, and the amounts

25 distributed were disregarded in determining the
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1 amount or type of assistance provided under the pro2 gram under part A; or

3 ‘‘(B) the State has distributed to families that

4 formerly received assistance under the program under

5 part A the State share of the amounts collected pursu6 ant to section 464 that could have been retained as

7 reimbursement for assistance paid to such families,

8 then the State share otherwise determined for the fiscal year

shall be increased by an amount equal to 1 9 ⁄2 of the amount

10 (if any) by which the State share for fiscal year 1995 ex11 ceeds the State share for the fiscal year (determined without

12 regard to this subsection).’’.

13 (b) EFFECTIVE DATE.—The amendment made by sub14 section (a) shall be effective with respect to calendar quar15 ters occurring during the period that begins on October 1,

16 1998, and ends on September 30, 2001.

17 (c) REPEAL.—Effective October 1, 2001, section 457

18 of the Social Security Act (42 U.S.C. 657) is amended—

19 (1) in subsection (a), by striking ‘‘subsections (e)

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

21 (2) by striking subsection (d);

22 (3) in subsection (e), by striking the second sen23 tence; and

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

25 subsections (d) and (e), respectively.
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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 RECONCILI6 ATION ACT OF 1996.

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

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

9 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 striking

12 ‘‘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 insert15 ing ‘‘section’’.

16 (d) Section 416 of the Social Security Act (42 U.S.C.

17 616) is amended by striking ‘‘Opportunity Act’’ and insert18 ing ‘‘Opportunity Reconciliation Act’’ each place such term

19 appears.

20 (e) Section 431(a)(6) of the Social Security Act (42

21 U.S.C. 629a(a)(6))) is amended—

22 (1) by inserting ‘‘, as in effect before August 22,

23 1986’’ after ‘‘482(i)(5)’’; and

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

25 ‘‘482(i)(7)(A)’’.
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1 (f) Sections 452(a)(7) and 466(c)(2)(A)(i) of the Social

2 Security Act (42 U.S.C. 652(a)(7) and 666(c)(2)(A)(i)) are

3 each amended by striking ‘‘Social Security’’ and inserting

4 ‘‘social security’’.

5 (g) Section 454 of the Social Security Act (42 U.S.C.

6 654) is amended—

7 (1) by striking ‘‘, or’’ at the end of each of para8 graphs (6)(E)(i) and (19)(B)(i) and inserting ‘‘; or’’;

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

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

11 and inserting a semicolon; and

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

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

14 and’’.

15 (h) Section 454(24)(B) of the Social Security Act (42

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

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

18 (i) Section 344(b)(1)(A) of the Personal Responsibility

19 and Work Opportunity Reconciliation Act of 1996 (Public

20 Law 104–193; 110 Stat. 2236) is amended to read as fol21 lows:

22 ‘‘(A) in paragraph (1), by striking subpara23 graph (B) and inserting the following:

24 ‘(B) equal to the percent specified in para25 graph (3) of the sums expended during such
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1 quarter that are attributable to the planning, de2 sign, development, installation or enhancement

3 of an automatic data processing and informa4 tion retrieval system (including in such sums the

5 full cost of the hardware components of such sys6 tem); and’; and’’.

7 (j) Section 457(a)(2)(B)(i)(I) of the Social Security

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

9 ‘‘Act Reconciliation’’ and inserting ‘‘Reconciliation Act’’.

10 (k) Section 457 of the Social Security Act (42 U.S.C.

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

12 it appears and inserting ‘‘Opportunity Reconciliation Act’’.

13 (l) Effective on the date of the enactment of this Act,

14 section 404(e) of the Social Security Act (42 U.S.C. 604(e))

15 is amended by inserting ‘‘or tribe’’ after ‘‘State’’ the first

16 and second places it appears, and by inserting ‘‘or tribal’’

17 after ‘‘State’’ the third place it appears.

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

19 (42 U.S.C. 666(a)(7)(A)) is amended by striking

20 ‘‘1681a(f))’’ and inserting ‘‘1681a(f)))’’.

21 (n) Section 466(b)(6)(A) of the Social Security Act (42

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

23 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 ‘‘453A(a)(2)(B)(ii)))’’.

7 (q) Except as provided in subsection (l), the amend8 ments made by this section shall take effect as if included

9 in the enactment of the Personal Responsibility and Work

10 Opportunity Reconciliation Act of 1996 (Public Law 104–

11 193; 110 Stat. 2105).

Attest:

Secretary.
106TH CONGRESS

1ST SESSION H. R. 1802

AMENDMENT
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