IB

106TH CONGRESS

1ST SESSION H. R. 1802

[Report No. 106–182, Part I]

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

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

IN THE HOUSE OF REPRESENTATIVES

MAY 13, 1999

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

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

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

provisions as fall within the jurisdiction of the committee concerned

JUNE 10, 1999

Reported from the Committee on Ways and Means with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

JUNE 10, 1999

Referral to the Committee on Commerce extended for a period ending not

later than June 25, 1999

[For text of introduced bill, see copy of bill as introduced on May 13, 1999]

A BILL

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

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

make the transition from foster care to self-sufficiency,

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the ‘‘Fos5 ter Care Independence Act of 1999’’.

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

7 Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—IMPROVED INDEPENDENT LIVING PROGRAM

Subtitle A—Improved Independent Living Program

Sec. 101. Improved independent living program.

Subtitle B—Related Foster Care Provision

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

Subtitle C—Medicaid Amendments

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

TITLE II—SSI FRAUD PREVENTION

Subtitle A—Fraud Prevention and Related Provisions

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

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

payments.

Sec. 203. Additional debt collection practices.

Sec. 204. Requirement to provide State prisoner information to Federal and federally assisted benefit programs.

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

of crimes.

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

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

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

statements.

Sec. 209. Exclusion of representatives and health care providers convicted of violations from participation in social security programs.

Sec. 210. State data exchanges.

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

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

Sec. 213. Computer matches with medicare and medicaid institutionalization

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

Subtitle B—Benefits for Filipino Veterans of World War II

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

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

TITLE III—CHILD SUPPORT

Sec. 301. Elimination of hold harmless provision for State share of distribution

of collected child support.

TITLE IV—TECHNICAL CORRECTIONS

Sec. 401. Technical corrections relating to amendments made by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

1 TITLE I—IMPROVED INDE2 PENDENT LIVING PROGRAM

3 Subtitle A—Improved Independent

4 Living Program

5 SEC. 101. IMPROVED INDEPENDENT LIVING PROGRAM.

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

7 (1) States are required to make reasonable 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.
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1 (2) 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 (3) 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 (4) 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. INDEPENDENT LIVING PROGRAM.

2 ‘‘(a) PURPOSE.—The purpose of this section is to pro3 vide States with flexible funding that will enable programs

4 to be designed and conducted—

5 ‘‘(1) to identify children who are likely to re6 main in foster care until 18 years of age and to de7 sign programs that help these children make the tran8 sition to self-sufficiency by providing services such as

9 assistance in obtaining a high school diploma, career

10 exploration, vocational training, job placement and

11 retention, training in daily living skills, training in

12 budgeting and financial management skills, substance

13 abuse prevention, and preventive health activities (in14 cluding smoking avoidance, nutrition education, and

15 pregnancy prevention);

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

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

18 training, and services necessary to obtain employ19 ment;

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

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

22 postsecondary training and education institutions;

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

24 to children aging out of foster care, through mentors

25 and the promotion of interactions with dedicated

26 adults; and
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1 ‘‘(5) to provide financial, housing, counseling,

2 employment, education, and other appropriate sup3 port and services to former foster care recipients be4 tween 18 and 21 years of age to complement their

5 own efforts to achieve self-sufficiency and to assure

6 that program participants recognize and accept their

7 personal responsibility for preparing for and then

8 making the transition from adolescence to adulthood.

9 ‘‘(b) APPLICATIONS.—

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

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

12 of 5 consecutive fiscal years by submitting to the Sec13 retary, in writing, a plan that meets the requirements

14 of paragraph (2) and the certifications required by

15 paragraph (3) with respect to the plan.

16 ‘‘(2) STATE PLAN.—A plan meets the require17 ments of this paragraph if the plan specifies which

18 State agency or agencies will administer, supervise,

19 or oversee the programs carried out under the plan,

20 and describes how the State intends to do the fol21 lowing:

22 ‘‘(A) Design and deliver programs to

23 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 but have not attained 21 years of age.

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

25 officer of the State that not more than 30 percent
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1 of the amounts paid to the State from its allot2 ment under subsection (c) for a fiscal year will

3 be expended for room or board for children who

4 have left foster care and have attained 18 years

5 of age but not 21 years of age.

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

7 officer of the State that none of the amounts paid

8 to the State from its allotment under subsection

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

10 child who has not attained 18 years of age.

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

12 officer of the State that the State will use train13 ing funds provided under the program of Federal

14 payments for foster care and adoption assistance

15 to provide training to help foster parents, work16 ers in group homes, and case managers under17 stand and address the issues confronting adoles18 cents preparing for independent living, and will,

19 to the extent possible, coordinate such training

20 with the independent living program conducted

21 for adolescents.

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

23 officer of the State that the State has consulted

24 widely with public and private organizations in

25 developing the plan and that the State has given
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1 all interested members of the public at least 30

2 days to submit comments on the plan.

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

4 officer of the State that the State will make every

5 effort to coordinate the State programs receiving

6 funds provided from an allotment made to the

7 State under subsection (c) with other Federal

8 and State programs for youth (especially transi9 tional living youth projects funded under part B

10 of title III of the Juvenile Justice and Delin11 quency Prevention Act of 1974), abstinence edu12 cation programs, local housing programs, pro13 grams for disabled youth (especially sheltered

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

15 by high schools or local workforce agencies.

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

17 officer of the State that each Indian tribe in the

18 State has been consulted about the programs to

19 be carried out under the plan; that there have

20 been efforts to coordinate the programs with such

21 tribes; and that benefits and services under the

22 programs will be made available to Indian chil23 dren in the State on the same basis as to other

24 children in the State.
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1 ‘‘(H) A certification by the chief executive

2 officer of the State that the State will ensure that

3 adolescents participating in the program under

4 this section participate directly in designing

5 their own program activities that prepare them

6 for independent living and that the adolescents

7 accept personal responsibility for living up to

8 their part of the program.

9 ‘‘(I) A certification by the chief executive of10 ficer of the State that the State has established

11 and will enforce standards and procedures to

12 prevent fraud and abuse in the programs carried

13 out under the plan.

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

15 an application submitted by a State pursuant to

16 paragraph (1) for a period if—

17 ‘‘(A) the application is submitted on or be18 fore June 30 of the calendar year in which such

19 period begins; and

20 ‘‘(B) the Secretary finds that the applica21 tion contains the material required by para22 graph (1).

23 ‘‘(5) AUTHORITY TO IMPLEMENT CERTAIN

24 AMENDMENTS; NOTIFICATION.—A State with an ap25 plication approved under paragraph (4) may imple-
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1 ment any amendment to the plan contained in the

2 application if the application, incorporating the

3 amendment, would be approvable under paragraph

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

5 such amendment, the State shall notify the Secretary

6 of the amendment.

7 ‘‘(6) AVAILABILITY.—The State shall make avail8 able to the public any application submitted by the

9 State pursuant to paragraph (1), and a brief sum10 mary of the plan contained in the application.

11 ‘‘(c) ALLOTMENTS TO STATES.—

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

13 in subsection (h) that remains after applying sub14 section (g)(2) for a fiscal year, the Secretary shall

15 allot to each State with an application approved

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

17 which bears the same ratio to such remaining amount

18 as the number of children in foster care under a pro19 gram of the State in the most recent fiscal year for

20 which such information is available bears to the total

21 number of children in foster care in all States for

22 such most recent fiscal year.

23 ‘‘(2) HOLD HARMLESS PROVISION.—The Sec24 retary shall ratably reduce the allotments made to

25 States pursuant to paragraph (1) for a fiscal year to
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1 the extent necessary to ensure that the amount allot2 ted to each State under paragraph (1) and this para3 graph for the fiscal year is not less than the amount

4 payable to the State under this section (as in effect

5 before the enactment of the Foster Care Independence

6 Act of 1999) for fiscal year 1998.

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

8 Secretary shall use the formula provided in para9 graph (1) of this subsection to reallot among the

10 States with applications approved under subsection

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

12 under this subsection for the preceding year that is

13 not payable to the State for the preceding year.

14 ‘‘(d) USE OF FUNDS.—

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

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

17 use the amount in any manner that is reasonably cal18 culated to accomplish the purposes of this section.

19 ‘‘(2) NO SUPPLANTATION OF OTHER FUNDS

20 AVAILABLE FOR SAME GENERAL PURPOSES.—The

21 amounts paid to a State from its allotment under

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

23 supplant any other funds which are available for the

24 same general purposes in the State.

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

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

3 conducted under chapter 75 of title 31, United States

4 Code, or by any other means, that a program receiv5 ing funds from an allotment made to a State under

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

7 inconsistent with, or not disclosed in the State appli8 cation approved under subsection (b), the Secretary

9 shall assess a penalty against the State in an amount

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

11 5 percent of the amount of the allotment.

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

14 penalty against a State that fails during a fiscal year

15 to comply with an information collection plan imple16 mented under subsection (f) in an amount equal to

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

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

19 ‘‘(3) PENALTIES BASED ON DEGREE OF NON20 COMPLIANCE.—The Secretary shall assess penalties

21 under this subsection based on the degree of non22 compliance.

23 ‘‘(f) DATA COLLECTION AND PERFORMANCE MEASURE24 MENT.—
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1 ‘‘(1) IN GENERAL.—The Secretary, in consulta2 tion with State and local public officials responsible

3 for administering independent living and other child

4 welfare programs, child welfare advocates, members of

5 Congress, youth service providers, and researchers,

6 shall—

7 ‘‘(A) develop outcome measures (including

8 measures of educational attainment, employ9 ment, avoidance of dependency, homelessness,

10 nonmarital childbirth, and high-risk behaviors)

11 that can be used to assess the performance of

12 States in operating independent living pro13 grams;

14 ‘‘(B) identify data elements needed to

15 track—

16 ‘‘(i) the number and characteristics of

17 children receiving services under this sec18 tion;

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

20 being provided; and

21 ‘‘(iii) State performance on the out22 come measures; and

23 ‘‘(C) develop and implement a plan to col24 lect the needed information beginning with the
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1 2nd fiscal year beginning after the date of the

2 enactment of this section.

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

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

5 the Secretary shall submit to the Committee on Ways

6 and Means of the House of Representatives and the

7 Committee on Finance of the Senate a report detail8 ing the plans and timetable for collecting from the

9 States the information described in paragraph (1).

10 ‘‘(g) EVALUATIONS.—

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

12 evaluations of such State programs funded under this

13 section as the Secretary deems to be innovative or of

14 potential national significance. The evaluation of any

15 such program shall include information on the effects

16 of the program on education, employment, and per17 sonal development. To the maximum extent prac18 ticable, the evaluations shall be based on rigorous sci19 entific standards including random assignment to

20 treatment and control groups. The Secretary is en21 couraged to work directly with State and local gov22 ernments to design methods for conducting the evalua23 tions, directly or by grant, contract, or cooperative

24 agreement.
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1 ‘‘(2) FUNDING OF EVALUATIONS.—The Secretary

2 shall reserve 1.5 percent of the amount specified in

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

4 the fiscal year, evaluation, technical assistance, per5 formance measurement, and data collection activities

6 related to this section, directly or through grants, con7 tracts, or cooperative agreements with appropriate en8 tities.

9 ‘‘(h) LIMITATIONS ON AUTHORIZATION OF APPROPRIA10 TIONS.—To carry out this section and for payments to

11 States under section 474(a)(4), there are authorized to be

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

13 year.’’.

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

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

16 ‘‘(4) the lesser of—

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

18 which—

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

20 State during the fiscal year in which the

21 quarter occurs to carry out programs in ac22 cordance with the State application ap23 proved under section 477(b) for the period

24 in which the quarter occurs (including any
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1 amendment that meets the requirements of

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

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

4 assessed against the State under section

5 477(e) during the fiscal year in which the

6 quarter occurs; or

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

8 section 477 for the fiscal year in which the quar9 ter occurs, reduced by the total of the amounts

10 payable to the State under this paragraph for all

11 prior quarters in the fiscal year.’’.

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

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

14 and Human Services shall issue such regulations as may

15 be necessary to carry out the amendments made by this sec16 tion.

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

18 Congress that States should provide medical assistance

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

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

21 emancipated from foster care.
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1 Subtitle B—Related Foster Care

2 Provision

3 SEC. 111. INCREASE IN AMOUNT OF ASSETS ALLOWABLE

4 FOR CHILDREN IN FOSTER CARE.

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

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

7 determining whether a child would have received aid under

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

9 July 16, 1996), a child whose resources (determined pursu10 ant to section 402(a)(7)(B), as so in effect) have a combined

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

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

13 than $1,000 (or such lower amount as the State may deter14 mine for purposes of such section 402(a)(7)(B)).’’.

15 Subtitle C—Medicaid Amendments

16 SEC. 121. STATE OPTION OF MEDICAID COVERAGE FOR

17 ADOLESCENTS LEAVING FOSTER CARE.

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

19 Act is amended—

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

21 1396a(a)(10)(A)(ii))—

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

23 (XIII);

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

25 (XIV); and
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1 (C) by adding at the end the following new

2 subclause:

3 ‘‘(XV) who are independent foster

4 care adolescents (as defined in (section

5 1905(v)(1)), or who are within any

6 reasonable categories of such adoles7 cents specified by the State;’’; and

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

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

10 ‘‘(v)(1) For purposes of this title, the term ‘inde11 pendent foster care adolescent’ means an individual—

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

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

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

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

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

17 consistent with paragraph (2).

18 ‘‘(2) The levels established by a State under paragraph

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

20 by the State under section 1931(b).

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

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

23 to those individuals with respect to whom foster care main24 tenance payments or independent living services were fur-
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1 nished under a program funded under part E of title IV

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

3 (b) EFFECTIVE DATE.—The amendments made by sub4 section (a) apply to medical assistance for items and serv5 ices furnished on or after October 1, 1999.

6 TITLE II—SSI FRAUD

7 PREVENTION

8 Subtitle A—Fraud Prevention and

9 Related Provisions

10 SEC. 201. LIABILITY OF REPRESENTATIVE PAYEES FOR

11 OVERPAYMENTS TO DECEASED RECIPIENTS.

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

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

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

15 payment of more than the correct amount is made to a rep16 resentative payee on behalf of an individual after the indi17 vidual’s death, the representative payee shall be liable for

18 the repayment of the overpayment, and the Commissioner

19 of Social Security shall establish an overpayment control

20 record under the social security account number of the rep21 resentative payee.’’.

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

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

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

25 more than the correct amount is made to a representative
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1 payee on behalf of an individual after the individual’s

2 death, the representative payee shall be liable for the repay3 ment of the overpayment, and the Commissioner of Social

4 Security shall establish an overpayment control record

5 under the social security account number of the representa6 tive payee.’’.

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

8 section shall apply to overpayments made 12 months or

9 more after the date of the enactment of this Act.

10 SEC. 202. RECOVERY OF OVERPAYMENTS OF SSI BENEFITS

11 FROM LUMP SUM SSI BENEFIT PAYMENTS.

12 (a) IN GENERAL.—Section 1631(b)(1)(B)(ii) of the So13 cial Security Act (42 U.S.C. 1383(b)(1)(B)(ii)) is

14 amended—

15 (1) by inserting ‘‘monthly’’ before ‘‘benefit pay16 ments’’; and

17 (2) by inserting ‘‘and in the case of an indi18 vidual or eligible spouse to whom a lump sum is pay19 able under this title (including under section 1616(a)

20 of this Act or under an agreement entered into under

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

22 one means of recovering such overpayment, make the

23 adjustment or recovery from the lump sum payment

24 in an amount equal to not less than the lesser of the
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1 amount of the overpayment or 50 percent of the lump

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

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

4 section shall take effect 12 months after the date of the en5 actment of this Act and shall apply to amounts incorrectly

6 paid which remain outstanding on or after such date.

7 SEC. 203. ADDITIONAL DEBT COLLECTION PRACTICES.

8 (a) IN GENERAL.—Section 1631(b) of the Social Secu9 rity Act (42 U.S.C. 1383(b)) is amended—

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

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

12 (2) by inserting after paragraph (3) the fol13 lowing:

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

15 Commissioner of Social Security may use the collection

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

17 3718 of title 31, United States Code, and in section 5514

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

19 after the enactment of the Debt Collection Improvement Act

20 of 1996.

21 ‘‘(B) For purposes of subparagraph (A), the term ‘de22 linquent amount’ means an amount—

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

24 under this title;
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1 ‘‘(ii) paid to a person after such person has at2 tained 18 years of age; and

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

4 Security, under regulations, to be otherwise unre5 coverable under this section after such person ceases

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

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

8 of title 31, United States Code, is amended by striking ‘‘sec9 tion 204(f)’’ and inserting ‘‘sections 204(f) and 1631(b)(4)’’.

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

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

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

13 ‘‘3711(f)’’; and

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

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

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

17 of the enactment of this Act.

18 SEC. 204. REQUIREMENT TO PROVIDE STATE PRISONER IN19 FORMATION TO FEDERAL AND FEDERALLY

20 ASSISTED BENEFIT PROGRAMS.

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

22 (42 U.S.C. 1382(e)(1)(I)(ii)(II)) is amended by striking ‘‘is

23 authorized to’’ and inserting ‘‘shall’’.
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1 SEC. 205. RULES RELATING TO COLLECTION OF OVERPAY2 MENTS FROM INDIVIDUALS CONVICTED OF

3 CRIMES.

4 (a) WAIVERS INAPPLICABLE TO OVERPAYMENTS BY

5 REASON OF PAYMENT IN MONTHS IN WHICH BENEFICIARY

6 IS A PRISONER OR A FUGITIVE.—

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

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

9 amended—

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

11 (B) by adding at the end the following:

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

13 payment to any person made during a month in which such

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

15 (2) AMENDMENT TO TITLE XVI.—Section

16 1631(b)(1)(B)(i) of such Act (42 U.S.C.

17 1383(b)(1)(B)(i)) is amended by inserting ‘‘unless (I)

18 section 1611(e)(1) prohibits payment to the person of

19 a benefit under this title for the month by reason of

20 confinement of a type described in clause (i) or (ii)

21 of section 202(x)(1)(A), or (II) section 1611(e)(5) pro22 hibits payment to the person of a benefit under this

23 title for the month,’’ after ‘‘administration of this

24 title,’’.

25 (b) 10-YEAR PERIOD OF INELIGIBILITY FOR PERSONS

26 FAILING TO NOTIFY COMMISSIONER OF OVERPAYMENTS IN
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1 MONTHS IN WHICH BENEFICIARY IS A PRISONER OR A FU2 GITIVE OR FAILING TO COMPLY WITH REPAYMENT SCHED3 ULE FOR SUCH OVERPAYMENTS.—

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

5 such Act (42 U.S.C. 402(x)) is amended by adding at

6 the end the following:

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

8 monthly insurance benefits under this section based on the

9 person’s disability or to disability insurance benefits under

10 section 223 otherwise payable during the 10-year period

11 that begins on the date the person—

12 ‘‘(i) knowingly fails to timely notify the Com13 missioner of Social Security, in connection with any

14 application for benefits under this title, of any prior

15 receipt by such person of any benefit under this title

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

17 not payable under the preceding provisions of this

18 subsection, or

19 ‘‘(ii) knowingly fails to comply with any sched20 ule imposed by the Commissioner which is for repay21 ment of overpayments comprised of payments de22 scribed in subparagraph (A) and which is in compli23 ance with section 204.

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

25 addition to any other relevant factors, take into account
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1 any mental or linguistic limitations of a person (including

2 any lack of facility with the English language) in deter3 mining whether the person has knowingly failed to comply

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

5 (A).’’.

6 (2) AMENDMENT TO TITLE XVI.—Section

7 1611(e)(1) of such Act (42 U.S.C. 1382(e)(1)) is

8 amended by adding at the end the following:

9 ‘‘(J)(i) A person shall not be considered an eligible in10 dividual or eligible spouse for purposes of benefits under

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

12 that begins on the date the person—

13 ‘‘(I) knowingly fails to timely notify the Com14 missioner of Social Security, in an application for

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

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

17 month in which payment to the person of a benefit

18 under this title was prohibited by—

19 ‘‘(aa) the preceding provisions of this para20 graph by reason of confinement of a type de21 scribed in clause (i) or (ii) of section

22 202(x)(1)(A); or

23 ‘‘(bb) section 1611(e)(4); or

24 ‘‘(II) knowingly fails to comply with any sched25 ule imposed by the Commissioner which is for repay-
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1 ment of overpayments comprised of payments de2 scribed in clause (i) of this subparagraph and which

3 is in compliance with section 1631(b).

4 ‘‘(ii) The Commissioner of Social Security shall, in ad5 dition to any other relevant factors, take into account any

6 mental or linguistic limitations of a person (including any

7 lack of facility with the English language) in determining

8 whether the person has knowingly failed to comply with a

9 requirement of subclause (I) or (II) of clause (i).’’.

10 (c) CONTINUED COLLECTION EFFORTS AGAINST PRIS11 ONERS.—

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

13 such Act (42 U.S.C. 404(b)), as amended by sub14 section (a)(1) of this section, is amended further by

15 adding at the end the following new paragraph:

16 ‘‘(3) The Commissioner shall not refrain from recov17 ering overpayments from resources currently available to

18 any overpaid person or to such person’s estate solely because

19 such individual is confined as described in clause (i) or (ii)

20 of section 202(x)(1)(A).’’.

21 (2) AMENDMENT TO TITLE XVI.—Section

22 1631(b)(1)(A) of such Act (42 U.S.C. 1383(b)(1)(A))

23 is amended by adding after and below clause (ii) the

24 following flush left sentence:
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1 ‘‘The Commissioner shall not refrain from recovering over2 payments from resources currently available to any indi3 vidual solely because the individual is confined as described

4 in clause (i) or (ii) of section 202(x)(1)(A).’’.

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

6 section shall apply to overpayments made in, and to bene7 fits payable for, months beginning 24 months or more after

8 the date of the enactment of this Act.

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

10 THE SSI PROGRAM.

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

12 Social Security Act (42 U.S.C. 1382b) is amended by add13 ing at the end the following:

14 ‘‘Trusts

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

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

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

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

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

20 of the individual (or of the individual’s spouse) are trans21 ferred to the trust other than by will.

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

23 transferred the assets of an individual (or of the individ24 ual’s spouse) and the assets of any other person, this sub-
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1 section shall apply to the portion of the trust attributable

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

3 ‘‘(C) This subsection shall apply to a trust without re4 gard to—

5 ‘‘(i) the purposes for which the trust is estab6 lished;

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

8 discretion under the trust;

9 ‘‘(iii) any restrictions on when or whether dis10 tributions may be made from the trust; or

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

12 from the trust.

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

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

15 a resource available to the individual.

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

17 an individual, if there are any circumstances under which

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

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

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

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

22 be considered a resource available to the individual.

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

24 the application of this subsection with respect to an indi25 vidual if the Commissioner determines that such applica-
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1 tion would work an undue hardship (as determined on the

2 basis of criteria established by the Commissioner) on the

3 individual.

4 ‘‘(5) This subsection shall not apply to a trust de5 scribed in subparagraph (A) or (C) of section 1917(d)(4).

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

7 ‘‘(A) the term ‘trust’ includes any legal instru8 ment or device that is similar to a trust;

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

10 trust, all property and other interests held by the

11 trust, including accumulated earnings and any other

12 addition to the trust after its establishment (except

13 that such term does not include any such earnings or

14 addition in the month in which the earnings or addi15 tion is credited or otherwise transferred to the trust);

16 and

17 ‘‘(C) the term ‘asset’ includes any income or re18 source of the individual or of the individual’s spouse,

19 including—

20 ‘‘(i) any income excluded by section

21 1612(b);

22 ‘‘(ii) any resource otherwise excluded by

23 this section; and

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

25 which the individual or the individual’s spouse
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1 is entitled but does not receive or have access to

2 because of action by—

3 ‘‘(I) the individual or spouse;

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

5 court) with legal authority to act in place

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

7 or

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

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

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

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

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

13 (1) by striking ‘‘and’’ at the end of subpara14 graph (E);

15 (2) by striking the period at the end of subpara16 graph (F) and inserting ‘‘; and’’; and

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

18 ‘‘(G) any earnings of, and additions to, the cor19 pus of a trust established by an individual (within

20 the meaning of section 1613(e)), of which the indi21 vidual is a beneficiary, to which section 1613(e) ap22 plies, and, in the case of an irrevocable trust, with re23 spect to which circumstances exist under which a

24 payment from the earnings or additions could be

25 made to or for the benefit of the individual.’’.
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1 (c) EFFECTIVE DATE.—The amendments made by this

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

3 to trusts established on or after such date.

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

5 MARKET VALUE UNDER THE SSI PROGRAM.

6 (a) IN GENERAL.—Section 1613(c) of the Social Secu7 rity Act (42 U.S.C. 1382b(c)) is amended—

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

9 Medicaid Policy Restricting Eligibility of Institu10 tionalized Individuals for Benefits Based on’’;

11 (2) in paragraph (1)—

12 (A) in subparagraph (A)—

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

14 after ‘‘provisions of’’;

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

16 place it appears and inserting ‘‘this title

17 and title XIX, respectively,’’;

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

19 and inserting ‘‘clause (ii)’’;

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

21 inserting ‘‘subparagraph (B)’’;

22 (B) in subparagraph (B)—

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

24 and
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1 (ii) by striking ‘‘section 1917(c)’’ and

2 all that follows and inserting ‘‘paragraph

3 (1) or section 1917(c).’’; and

4 (C) by redesignating subparagraphs (A)

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

6 (3) in paragraph (2)—

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

8 and

9 (B) by striking ‘‘paragraph (1)(B)’’ and in10 serting ‘‘subparagraph (A)(ii)’’;

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

12 and

13 (5) by inserting before paragraph (2) (as so re14 designated by paragraph (4) of this subsection) the

15 following:

16 ‘‘(c)(1)(A)(i) If an individual or the spouse of an indi17 vidual disposes of resources for less than fair market value

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

19 the individual is ineligible for benefits under this title for

20 months during the period beginning on the date described

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

22 as provided in clause (iv).

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

24 is a date that is 36 months before the date described in sub25 clause (II).
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1 ‘‘(II) The date described in this subclause is the date

2 on which the individual applies for benefits under this title

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

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

5 market value.

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

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

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

9 in any other period of ineligibility under this paragraph.

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

11 clause shall be equal to—

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

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

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

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

16 ‘‘(II) the amount of the maximum monthly ben17 efit payable under section 1611(b), plus the amount

18 (if any) of the maximum State supplementary pay19 ment corresponding to the State’s payment level ap20 plicable to the individual’s living arrangement and

21 eligibility category that would otherwise be payable to

22 the individual by the Commissioner pursuant to an

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

24 212(b) of Public Law 93–66, for the month in which

25 occurs the date described in clause (ii)(II),
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1 rounded, in the case of any fraction, to the nearest whole

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

3 ‘‘(B)(i) Notwithstanding subparagraph (A), this sub4 section shall not apply to a transfer of a resource to a trust

5 if the portion of the trust attributable to the resource is con6 sidered a resource available to the individual pursuant to

7 subsection (e)(3) (or would be so considered but for the ap8 plication of subsection (e)(4)).

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

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

11 (e)), if from such portion of the trust, if any, that is consid12 ered a resource available to the individual pursuant to sub13 section (e)(3) (or would be so considered but for the applica14 tion of subsection (e)(4)) or the residue of the portion on

15 the termination of the trust—

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

17 for the benefit of the individual; or

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

19 be made to the individual,

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

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

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

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

24 payment or foreclosure, as the case may be.
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1 ‘‘(C) An individual shall not be ineligible for benefits

2 under this title by reason of the application of this para3 graph to a disposal of resources by the individual or the

4 spouse of the individual, to the extent that—

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

6 home was transferred to—

7 ‘‘(I) the spouse of the transferor;

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

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

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

11 equity interest in such home and who was resid12 ing in the transferor’s home for a period of at

13 least 1 year immediately before the date the

14 transferor becomes an institutionalized indi15 vidual; or

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

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

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

19 period of at least 2 years immediately before the

20 date the transferor becomes an institutionalized

21 individual, and who provided care to the trans22 feror which permitted the transferor to reside at

23 home rather than in such an institution or facil24 ity;

25 ‘‘(ii) the resources—
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1 ‘‘(I) were transferred to the transferor’s

2 spouse or to another for the sole benefit of the

3 transferor’s spouse;

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

5 spouse to another for the sole benefit of the trans6 feror’s spouse;

7 ‘‘(III) were transferred to, or to a trust (in8 cluding a trust described in section 1917(d)(4))

9 established solely for the benefit of, the trans10 feror’s child who is blind or disabled; or

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

12 a trust described in section 1917(d)(4)) estab13 lished solely for the benefit of an individual who

14 has not attained 65 years of age and who is dis15 abled;

16 ‘‘(iii) a satisfactory showing is made to the Com17 missioner of Social Security (in accordance with reg18 ulations promulgated by the Commissioner) that—

19 ‘‘(I) the individual who disposed of the re20 sources intended to dispose of the resources either

21 at fair market value, or for other valuable con22 sideration;

23 ‘‘(II) the resources were transferred exclu24 sively for a purpose other than to qualify for

25 benefits under this title; or
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1 ‘‘(III) all resources transferred for less than

2 fair market value have been returned to the

3 transferor; or

4 ‘‘(iv) the Commissioner determines, under proce5 dures established by the Commissioner, that the denial

6 of eligibility would work an undue hardship as deter7 mined on the basis of criteria established by the Com8 missioner.

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

10 resource held by an individual in common with another

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

12 or similar arrangement, the resource (or the affected portion

13 of such resource) shall be considered to be disposed of by

14 the individual when any action is taken, either by the indi15 vidual or by any other person, that reduces or eliminates

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

17 ‘‘(E) In the case of a transfer by the spouse of an indi18 vidual that results in a period of ineligibility for the indi19 vidual under this subsection, the Commissioner shall appor20 tion the period (or any portion of the period) among the

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

22 eligible for benefits under this title.

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

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

25 payments of the type described in section 1616(a) of
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1 this Act and of the type described in section 212(b)

2 of Public Law 93–66;

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

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

5 and

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

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

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

9 section shall be effective with respect to disposals made on

10 or after the date of enactment of this Act.

11 SEC. 208. ADMINISTRATIVE PROCEDURE FOR IMPOSING

12 PENALTIES FOR FALSE OR MISLEADING

13 STATEMENTS.

14 (a) IN GENERAL.—Part A of title XI of the Social Se15 curity Act (42 U.S.C. 1301 et seq.) is amended by inserting

16 after section 1129 the following:

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

18 PENALTIES FOR FALSE OR MISLEADING

19 STATEMENTS.

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

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

22 for use in determining any initial or continuing right to

23 or the amount of—

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

25 ‘‘(2) benefits or payments under title XVI,
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1 that the person knows or should know is false or misleading

2 or knows or should know omits a material fact or makes

3 such a statement with knowing disregard for the truth shall

4 be subject to, in addition to any other penalties that may

5 be prescribed by law, a penalty described in subsection (b)

6 to be imposed by the Commissioner of Social Security.

7 ‘‘(b) PENALTY.—The penalty described in this sub8 section is—

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

10 would otherwise be payable to the person; and

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

12 XVI,

13 for each month that begins during the applicable period de14 scribed in subsection (c).

15 ‘‘(c) DURATION OF PENALTY.—The duration of the ap16 plicable period, with respect to a determination by the Com17 missioner under subsection (a) that a person has engaged

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

19 ‘‘(1) 6 consecutive months, in the case of a first

20 such determination with respect to the person;

21 ‘‘(2) 12 consecutive months, in the case of a sec22 ond such determination with respect to the person;

23 and
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1 ‘‘(3) 24 consecutive months, in the case of a third

2 or subsequent such determination with respect to the

3 person.

4 ‘‘(d) EFFECT ON OTHER ASSISTANCE.—A person sub5 ject to a period of nonpayment of benefits under title II

6 or ineligibility for title XVI benefits by reason of this sec7 tion nevertheless shall be considered to be eligible for and

8 receiving such benefits, to the extent that the person would

9 be receiving or eligible for such benefits but for the imposi10 tion of the penalty, for purposes of—

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

12 for benefits under titles XVIII and XIX; and

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

14 benefits payable under title II or XVI to another per15 son.

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

17 under title XVI’ includes State supplementary payments

18 made by the Commissioner pursuant to an agreement under

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

20 93–66.

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

22 Security shall consult with the Inspector General of the So23 cial Security Administration regarding initiating actions

24 under this section.’’.
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1 (b) CONFORMING AMENDMENT PRECLUDING DELAYED

2 RETIREMENT CREDIT FOR ANY MONTH TO WHICH A NON3 PAYMENT OF BENEFITS PENALTY APPLIES.—Section

4 202(w)(2)(B) of such Act (42 U.S.C. 402(w)(2)(B)) is

5 amended—

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

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

8 (ii) and inserting ‘‘, and’’; and

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

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

11 penalty imposed under section 1129A.’’.

12 (c) ELIMINATION OF REDUNDANT PROVISION.—Sec13 tion 1611(e) of such Act (42 U.S.C. 1382(e)) is amended—

14 (1) by striking paragraph (4);

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

16 and inserting ‘‘(4)’’; and

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

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

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

20 the enactment of this Act, the Commissioner of Social Secu21 rity shall develop regulations that prescribe the administra22 tive process for making determinations under section 1129A

23 of the Social Security Act (including when the applicable

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

25 and shall provide guidance on the exercise of discretion as
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1 to whether the penalty should be imposed in particular

2 cases.

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

4 section shall apply to statements and representations made

5 on or after the date of the enactment of this Act.

6 SEC. 209. EXCLUSION OF REPRESENTATIVES AND HEALTH

7 CARE PROVIDERS CONVICTED OF VIOLA8 TIONS FROM PARTICIPATION IN SOCIAL SE9 CURITY PROGRAMS.

10 (a) IN GENERAL.—Part A of title XI of the Social Se11 curity Act (42 U.S.C. 1301–1320b–17) is amended by add12 ing at the end the following:

13 ‘‘EXCLUSION OF REPRESENTATIVES AND HEALTH CARE

14 PROVIDERS CONVICTED OF VIOLATIONS FROM PARTICI15 PATION IN SOCIAL SECURITY PROGRAMS

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

17 Social Security shall exclude from participation in the so18 cial security programs any representative or health care

19 provider—

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

21 208 or 1632 of this Act,

22 ‘‘(2) who is convicted of any violation under title

23 18, United States Code, relating to an initial appli24 cation for or continuing entitlement to, or amount of,

25 benefits under title II of this Act, or an initial appli-
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1 cation for or continuing eligibility for, or amount of,

2 benefits under title XVI of this Act, or

3 ‘‘(3) who the Commissioner determines has com4 mitted an offense described in section 1129(a)(1) of

5 this Act.

6 ‘‘(b) NOTICE, EFFECTIVE DATE, AND PERIOD OF EX7 CLUSION.—(1) An exclusion under this section shall be effec8 tive at such time, for such period, and upon such reasonable

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

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

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

12 to services furnished to any individual on or after the effec13 tive date of the exclusion. Nothing in this section may be

14 construed to preclude, in determining disability under title

15 II or title XVI, consideration of any medical evidence de16 rived from services provided by a health care provider before

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

18 under this section.

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

20 of exclusion under paragraph (1), the period of the exclu21 sion.

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

23 exclusion under subsection (a), the minimum period of ex24 clusion shall be five years, except that the Commissioner

25 may waive the exclusion in the case of an individual who
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1 is the sole source of essential services in a community. The

2 Commissioner’s decision whether to waive the exclusion

3 shall not be reviewable.

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

5 subsection (a) based on a conviction or a determination de6 scribed in subsection (a)(3) occurring on or after the date

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

8 on, or after such date of enactment) been convicted, or if

9 such a determination has been made with respect to the

10 individual—

11 ‘‘(i) on one previous occasion of one or more of12 fenses for which an exclusion may be effected under

13 such subsection, the period of the exclusion shall be

14 not less than 10 years, or

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

16 more offenses for which an exclusion may be effected

17 under such subsection, the period of the exclusion

18 shall be permanent.

19 ‘‘(c) NOTICE TO STATE AGENCIES.—The Commis20 sioner shall promptly notify each appropriate State agency

21 employed for the purpose of making disability determina22 tions under section 221 or 1633(a)—

23 ‘‘(1) of the fact and circumstances of each exclu24 sion effected against an individual under this section,

25 and
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1 ‘‘(2) of the period (described in subsection (b)(3))

2 for which the State agency is directed to exclude the

3 individual from participation in the activities of the

4 State agency in the course of its employment.

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

6 Commissioner shall—

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

8 local agency or authority having responsibility for the

9 licensing or certification of an individual excluded

10 from participation under this section of the fact and

11 circumstances of the exclusion,

12 ‘‘(2) request that appropriate investigations be

13 made and sanctions invoked in accordance with ap14 plicable State law and policy, and

15 ‘‘(3) request that the State or local agency or au16 thority keep the Commissioner and the Inspector Gen17 eral of the Social Security Administration fully and

18 currently informed with respect to any actions taken

19 in response to the request.

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

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

22 from participation under this section is entitled to reason23 able notice and opportunity for a hearing thereon by the

24 Commissioner to the same extent as is provided in section
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1 205(b), and to judicial review of the Commissioner’s final

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

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

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

5 with respect to title II.

6 ‘‘(f) APPLICATION FOR TERMINATION OF EXCLU7 SION.—(1) An individual excluded from participation

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

9 manner specified by the Commissioner in regulations and

10 at the end of the minimum period of exclusion provided

11 under subsection (b)(3) and at such other times as the Com12 missioner may provide, for termination of the exclusion ef13 fected under this section.

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

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

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

17 of exclusion or which was unknown to the Commissioner

18 at the time of the exclusion, that—

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

20 continuation of the exclusion, and

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

22 types of actions which formed the basis for the origi23 nal exclusion have not recurred and will not recur.

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

25 State agency employed for the purpose of making disability
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1 determinations under section 221 or 1633(a) of the fact and

2 circumstances of each termination of exclusion made under

3 this subsection.

4 ‘‘(g) AVAILABILITY OF RECORDS OF EXCLUDED REP5 RESENTATIVES AND HEALTH CARE PROVIDERS.—Nothing

6 in this section shall be construed to have the effect of lim7 iting access by any applicant or beneficiary under title II

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

9 1633(a), or the Commissioner to records maintained by any

10 representative or health care provider in connection with

11 services provided to the applicant or beneficiary prior to

12 the exclusion of such representative or health care provider

13 under this section.

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

15 or health care provider participating in, or seeking to par16 ticipate in, a social security program shall inform the Com17 missioner, in such form and manner as the Commissioner

18 shall prescribe by regulation, whether such representative

19 or health care provider has been convicted of a violation

20 described in subsection (a).

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

22 may delegate authority granted by this section to the In23 spector General.

24 ‘‘(j) DEFINITIONS.—For purposes of this section:
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1 ‘‘(1) EXCLUDE.—The term ‘exclude’ from par2 ticipation means—

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

4 prohibit from engaging in representation of an

5 applicant for, or recipient of, benefits, as a rep6 resentative payee under section 205(j) or

7 1631(a)(2)(A)(ii), or otherwise as a representa8 tive, in any hearing or other proceeding relating

9 to entitlement to benefits, and

10 ‘‘(B) in connection with a health care pro11 vider, to prohibit from providing items or serv12 ices to an applicant for, or recipient of, benefits

13 for the purpose of assisting such applicant or re14 cipient in demonstrating disability.

15 ‘‘(2) SOCIAL SECURITY PROGRAM.—The term ‘so16 cial security programs’ means the program providing

17 for monthly insurance benefits under title II, and the

18 program providing for monthly supplemental security

19 income benefits to individuals under title XVI (in20 cluding State supplementary payments made by the

21 Commissioner pursuant to an agreement under sec22 tion 1616(a) of this Act or section 212(b) of Public

23 Law 93–66).

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

25 to have been ‘convicted’ of a violation—
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1 ‘‘(A) when a judgment of conviction has

2 been entered against the individual by a Federal,

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

4 conviction has been set aside or expunged;

5 ‘‘(B) when there has been a finding of guilt

6 against the individual by a Federal, State, or

7 local court;

8 ‘‘(C) when a plea of guilty or nolo

9 contendere by the individual has been accepted

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

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

12 participation in a first offender, deferred adju13 dication, or other arrangement or program where

14 judgment of conviction has been withheld.’’.

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

16 section shall apply with respect to convictions of violations

17 described in paragraphs (1) and (2) of section 1148(a) of

18 the Social Security Act and determinations described in

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

20 of the enactment of this Act.

21 SEC. 210. STATE DATA EXCHANGES.

22 Whenever the Commissioner of Social Security requests

23 information from a State for the purpose of ascertaining

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

25 amount of such benefits) under title II or XVI of the Social
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1 Security Act, the standards of the Commissioner promul2 gated pursuant to section 1106 of such Act or any other

3 Federal law for the use, safeguarding, and disclosure of in4 formation are deemed to meet any standards of the State

5 that would otherwise apply to the disclosure of information

6 by the State to the Commissioner.

7 SEC. 211. STUDY ON POSSIBLE MEASURES TO IMPROVE

8 FRAUD PREVENTION AND ADMINISTRATIVE

9 PROCESSING.

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

11 the enactment of this Act, the Commissioner of Social Secu12 rity, in consultation with the Inspector General of the So13 cial Security Administration and the Attorney General,

14 shall conduct a study of possible measures to improve—

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

17 of the Social Security Act or benefits under section

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

19 individuals eligible for supplemental security income

20 benefits under title XVI of such Act, and applicants

21 for any such benefits; and

22 (2) timely processing of reported income changes

23 by individuals receiving such benefits.

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

25 the enactment of this Act, the Commissioner shall submit
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1 to the Committee on Ways and Means of the House of Rep2 resentatives and the Committee on Finance of the Senate

3 a written report that contains the results of the Commis4 sioner’s study under subsection (a). The report shall contain

5 such recommendations for legislative and administrative

6 changes as the Commissioner considers appropriate.

7 SEC. 212. ANNUAL REPORT ON AMOUNTS NECESSARY TO

8 COMBAT FRAUD.

9 (a) IN GENERAL.—Section 704(b)(1) of the Social Se10 curity Act (42 U.S.C. 904(b)(1)) is amended—

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

12 (2) by adding at the end the following new sub13 paragraph:

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

15 budget prepared pursuant to subparagraph (A) an

16 itemization of the amount of funds required by the Social

17 Security Administration for the fiscal year covered by the

18 budget to support efforts to combat fraud committed by ap19 plicants and beneficiaries.’’.

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

21 section shall apply with respect to annual budgets prepared

22 for fiscal years after fiscal year 1999.
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1 SEC. 213. COMPUTER MATCHES WITH MEDICARE AND MED2 ICAID INSTITUTIONALIZATION DATA.

3 (a) IN GENERAL.—Section 1611(e)(1) of the Social Se4 curity Act (42 U.S.C. 1382(e)(1)), as amended by section

5 205(b)(2) of this Act, is further amended by adding at the

6 end the following:

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

8 the Commissioner of Social Security shall conduct periodic

9 computer matches with data maintained by the Secretary

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

11 The Secretary shall furnish to the Commissioner, in such

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

15 Information obtained pursuant to such a match may be

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

18 (b) CONFORMING AMENDMENT.—Section

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

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

21 ‘‘subparagraph (H) or (K)’’.

22 SEC. 214. ACCESS TO INFORMATION HELD BY FINANCIAL

23 INSTITUTIONS.

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

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

2 The’’; and

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

4 clause:

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

7 title to provide authorization by the applicant or recipient

8 (or by any other person whose income or resources are mate9 rial to the determination of the eligibility of the applicant

10 or recipient for such benefits) for the Commissioner to ob11 tain (subject to the cost reimbursement requirements of sec12 tion 1115(a) of the Right to Financial Privacy Act) from

13 any financial institution (within the meaning of section

14 1101(1) of such Act) any financial record (within the mean15 ing of section 1101(2) of such Act) held by the institution

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

17 person) whenever the Commissioner determines the record

18 is needed in connection with a determination with respect

19 to such eligibility or the amount of such benefits.

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

21 to Financial Privacy Act, an authorization provided by an

22 applicant or recipient (or any other person whose income

23 or resources are material to the determination of the eligi24 bility of the applicant or recipient) pursuant to subclause
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1 (I) of this clause shall remain effective until the earliest

2 of—

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

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

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

7 for benefits under this title; or

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

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

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

14 considered to meet the requirements of the Right to Finan15 cial Privacy Act for purposes of section 1103(a) of such Act,

16 and need not be furnished to the financial institution, not17 withstanding section 1104(a) of such Act.

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

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

20 requests by the Commissioner of Social Security pursuant

21 to an authorization provided under this clause.

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

23 authorization provided under this clause is deemed to meet

24 the requirements of section 1104(a)(3) of the Right to Fi-
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1 nancial Privacy Act and the flush language of section 1102

2 of such Act.

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

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

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

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

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

9 by the applicant or recipient for the Commissioner of Social

10 Security to obtain from any financial institution any fi11 nancial record, the Commissioner may, on that basis, deter12 mine that the applicant or recipient is ineligible for benefits

13 under this title.’’.

14 Subtitle B—Benefits for Filipino

15 Veterans of World War II

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

18 TO THE ARMED FORCES OF THE UNITED

19 STATES IN THE PHILIPPINES DURING WORLD

20 WAR II AFTER THEY MOVE BACK TO THE

21 PHILIPPINES.

22 (a) IN GENERAL.—Notwithstanding sections

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

24 and sections 401 and 402 of the Personal Responsibility

25 and Work Opportunity Reconciliation Act of 1996, the eli-
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1 gibility of a qualified individual for benefits under the sup2 plemental security income program under title XVI of the

3 Social Security Act shall not terminate by reason of a

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

5 Philippines.

6 (b) BENEFIT AMOUNT.—Notwithstanding subsections

7 (a) and (b) of section 1611 of the Social Security Act, the

8 benefit payable under the supplemental security income

9 program to a qualified individual for any month through10 out which the individual resides in the Philippines shall

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

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

13 (after disregard of the amount specified in section

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

15 individual’s benefit income for the month.

16 (c) DEFINITIONS.—In this section:

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

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

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

22 of the Social Security Act on the basis of an ap23 plication filed before such date;

24 (B) before December 31, 1946, served in the

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

2 forces were in the service of the Armed Forces

3 of the United States pursuant to the military

4 order of the President dated July 26, 1941, in5 cluding among such military forces organized

6 guerrilla forces under commanders appointed,

7 designated, or subsequently recognized by the

8 Commander in Chief, Southwest Pacific Area, or

9 other competent military authority in the Army

10 of the United States; and

11 (C) has not been removed from the United

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

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

16 amount of the cash benefit (not including any State

17 supplementary payment which is paid by the Com18 missioner of Social Security pursuant to an agree19 ment under section 1616(a) of the Social Security Act

20 or section 212(b) of Public Law 93–66) payable for

21 the month to an eligible individual with no income.

22 (3) BENEFIT INCOME.—The term ‘‘benefit in23 come’’ means any recurring payment received by a

24 qualified individual as an annuity, pension, retire25 ment, or disability benefit (including any veterans’
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1 compensation or pension, workmen’s compensation

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

3 benefit, railroad retirement annuity or pension, and

4 unemployment insurance benefit), but only if a simi5 lar payment was received by the individual from the

6 same (or a related) source during the 12-month pe7 riod preceding the month in which the individual

8 changes his place of residence from the United States

9 to the Philippines.

10 (d) EFFECTIVE DATE.—This section shall be effective

11 with respect to supplemental security income benefits pay12 able for months beginning after the date that is 1 year after

13 the date of the enactment of this Act, or such earlier date

14 that the Commissioner of Social Security determines is ad15 ministratively feasible.

16 TITLE III—CHILD SUPPORT

17 SEC. 301. ELIMINATION OF HOLD HARMLESS PROVISION

18 FOR STATE SHARE OF DISTRIBUTION OF COL19 LECTED CHILD SUPPORT.

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

21 Act (42 U.S.C. 657) is amended—

22 (1) in subsection (a), by striking ‘‘subsections (e)

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

24 (2) by striking subsection (d);
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1 (3) in subsection (e), by striking the 2nd sen2 tence; and

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

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

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

6 section shall be effective with respect to calendar quarters

7 beginning on or after October 1, 1999.

8 TITLE IV—TECHNICAL

9 CORRECTIONS

10 SEC. 401. TECHNICAL CORRECTIONS RELATING TO AMEND11 MENTS MADE BY THE PERSONAL RESPONSI12 BILITY AND WORK OPPORTUNITY RECONCILI13 ATION ACT OF 1996.

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

15 (42 U.S.C. 602(a)(1)(B)(iv)) is amended by striking ‘‘Act’’

16 and inserting ‘‘section’’.

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

18 Act (42 U.S.C. 609(a)(7)(B)(i)(II)) is amended by striking

19 ‘‘part’’ and inserting ‘‘section’’.

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

21 U.S.C. 613(g)(1)) is amended by striking ‘‘Act’’ and insert22 ing ‘‘section’’.

23 (d) Section 416 of the Social Security Act (42 U.S.C.

24 616) is amended by striking ‘‘Opportunity Act’’ and insert-
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1 ing ‘‘Opportunity Reconciliation Act’’ each place such term

2 appears.

3 (e) Section 431(a)(6) of the Social Security Act (42

4 U.S.C. 629a(a)(6))) is amended—

5 (1) by inserting ‘‘, as in effect before August 22,

6 1986’’ after ‘‘482(i)(5)’’; and

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

8 ‘‘482(i)(7)(A)’’.

9 (f) Sections 452(a)(7) and 466(c)(2)(A)(i) of the Social

10 Security Act (42 U.S.C. 652(a)(7) and 666(c)(2)(A)(i)) are

11 each amended by striking ‘‘Social Security’’ and inserting

12 ‘‘social security’’.

13 (g) Section 454 of the Social Security Act (42 U.S.C.

14 654) is amended—

15 (1) by striking ‘‘, or’’ at the end of each of para16 graphs (6)(E)(i) and (19)(B)(i) and inserting ‘‘; or’’;

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

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

19 inserting a semicolon; and

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

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

22 and’’.

23 (h) Section 454(24)(B) of the Social Security Act (42

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

25 Act’’ and inserting ‘‘Opportunity Reconciliation Act’’.
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1 (i) Section 344(b)(1)(A) of the Personal Responsibility

2 and Work Opportunity Reconciliation Act of 1996 (110

3 Stat. 2236) is amended to read as follows:

4 ‘‘(A) in paragraph (1), by striking subpara5 graph (B) and inserting the following:

6 ‘(B) equal to the percent specified in para7 graph (3) of the sums expended during such

8 quarter that are attributable to the planning, de9 sign, development, installation or enhancement

10 of an automatic data processing and informa11 tion retrieval system (including in such sums the

12 full cost of the hardware components of such sys13 tem); and’; and’’.

14 (j) Section 457(a)(2)(B)(i)(I) of the Social Security

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

16 ‘‘Act Reconciliation’’ and inserting ‘‘Reconciliation Act’’.

17 (k) Section 457 of the Social Security Act (42 U.S.C.

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

19 it appears and inserting ‘‘Opportunity Reconciliation Act’’.

20 (l) Effective on the date of the enactment of this Act,

21 section 404(e) of the Social Security Act (42 U.S.C. 604(e))

22 is amended by inserting ‘‘or tribe’’ after ‘‘State’’ the first

23 and second places it appears, and by inserting ‘‘or tribal’’

24 after ‘‘State’’ the third place it appears.
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1 (m) Section 466(a)(7) of the Social Security Act (42

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

3 inserting ‘‘1681a(f)))’’.

4 (n) Section 466(b)(6)(A) of the Social Security Act (42

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

6 inserting ‘‘State’’.

7 (o) Section 471(a)(8) of the Social Security Act (42

8 U.S.C. 671(a)(8)) is amended by striking ‘‘(including ac9 tivities under part F)’’.

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

11 U.S.C. 1320b–7(a)(3)) is amended by striking

12 ‘‘453A(a)(2)(B)(iii))’’ and inserting ‘‘453A(a)(2)(B)(ii)))’’.

13 (q) Except as provided in subsection (l), the amend14 ments made by this section shall take effect as if included

15 in the enactment of the Personal Responsibility and Work

16 Opportunity Reconciliation Act of 1996.