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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1802 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  

                  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:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Foster Care 
Independence Act of 1999''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.

              TITLE I--IMPROVED INDEPENDENT LIVING PROGRAM

            Subtitle A--Improved Independent Living Program

Sec. 101. Improved independent living program.

               Subtitle B--Related Foster Care Provision

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

              TITLE I--IMPROVED INDEPENDENT LIVING PROGRAM

            Subtitle A--Improved Independent Living Program

SEC. 101. IMPROVED INDEPENDENT LIVING PROGRAM.

    (a) Findings.--The Congress finds the following:
            (1) States are required to make reasonable efforts to find 
        adoptive families for all children, including older children, 
        for whom reunification with their biological family is not in 
        the best interests of the child. However, some older children 
        will continue to live in foster care. These children should be 
        enrolled in an Independent Living program designed and 
        conducted by State and local government to help prepare them 
        for employment, postsecondary education, and successful 
        management of adult responsibilities.
            (2) Older children who continue to be in foster care as 
        adolescents may become eligible for Independent Living 
        programs. These Independent Living programs are not an 
        alternative to adoption for these children. Enrollment in 
        Independent Living programs can occur concurrent with continued 
        efforts to locate and achieve placement in adoptive families 
        for older children in foster care.
            (3) About 20,000 adolescents leave the Nation's foster care 
        system each year because they have reached 18 years of age and 
        are expected to support themselves.
            (4) Congress has received extensive information that 
        adolescents leaving foster care have significant difficulty 
        making a successful transition to adulthood; this information 
        shows that children aging out of foster care show high rates of 
        homelessness, non-marital childbearing, poverty, and delinquent 
        or criminal behavior; they are also frequently the target of 
        crime and physical assaults.
            (5) The Nation's State and local governments, with 
        financial support from the Federal Government, should offer an 
        extensive program of education, training, employment, and 
        financial support for young adults leaving foster care, with 
        participation in such program beginning several years before 
        high school graduation and continuing, as needed, until the 
        young adults emancipated from foster care establish 
        independence or reach 21 years of age.
    (b) Improved Independent Living Program.--Section 477 of the Social 
Security Act (42 U.S.C. 677) is amended to read as follows:

``SEC. 477. JOHN H. CHAFEE FOSTER CARE INDEPENDENCE PROGRAM.

    ``(a) Purpose.--The purpose of this section is to provide States 
with flexible funding that will enable programs to be designed and 
conducted--
            ``(1) to identify children who are likely to remain in 
        foster care until 18 years of age and to help these children 
        make the transition to self-sufficiency by providing services 
        such as assistance in obtaining a high school diploma, career 
        exploration, vocational training, job placement and retention, 
        training in daily living skills, training in budgeting and 
        financial management skills, substance abuse prevention, and 
        preventive health activities (including smoking avoidance, 
        nutrition education, and pregnancy prevention);
            ``(2) to help children who are likely to remain in foster 
        care until 18 years of age receive the education, training, and 
        services necessary to obtain employment;
            ``(3) to help children who are likely to remain in foster 
        care until 18 years of age prepare for and enter postsecondary 
        training and education institutions;
            ``(4) to provide personal and emotional support to children 
        aging out of foster care, through mentors and the promotion of 
        interactions with dedicated adults; and
            ``(5) to provide financial, housing, counseling, 
        employment, education, and other appropriate support and 
        services to former foster care recipients between 18 and 21 
        years of age to complement their own efforts to achieve self-
        sufficiency and to assure that program participants recognize 
        and accept their personal responsibility for preparing for and 
        then making the transition from adolescence to adulthood.
    ``(b) Applications.--
            ``(1) In general.--A State may apply for funds from its 
        allotment under subsection (c) for a period of five consecutive 
        fiscal years by submitting to the Secretary, in writing, a plan 
        that meets the requirements of paragraph (2) and the 
        certifications required by paragraph (3) with respect to the 
        plan.
            ``(2) State plan.--A plan meets the requirements of this 
        paragraph if the plan specifies which State agency or agencies 
        will administer, supervise, or oversee the programs carried out 
        under the plan, and describes how the State intends to do the 
        following:
                    ``(A) Design and deliver programs to achieve the 
                purposes of this section.
                    ``(B) Ensure that all political subdivisions in the 
                State are served by the program, though not necessarily 
                in a uniform manner.
                    ``(C) Ensure that the programs serve children of 
                various ages and at various stages of achieving 
                independence.
                    ``(D) Involve the public and private sectors in 
                helping adolescents in foster care achieve 
                independence.
                    ``(E) Use objective criteria for determining 
                eligibility for benefits and services under the 
                programs, and for ensuring fair and equitable treatment 
                of benefit recipients.
                    ``(F) Cooperate in national evaluations of the 
                effects of the programs in achieving the purposes of 
                this section.
            ``(3) Certifications.--The certifications required by this 
        paragraph with respect to a plan are the following:
                    ``(A) A certification by the chief executive 
                officer of the State that the State will provide 
                assistance and services to children who have left 
                foster care because they have attained 18 years of age, 
                and who have not attained 21 years of age.
                    ``(B) A certification by the chief executive 
                officer of the State that not more than 30 percent of 
                the amounts paid to the State from its allotment under 
                subsection (c) for a fiscal year will be expended for 
                room or board for children who have left foster care 
                because they have attained 18 years of age, and who 
                have not attained 21 years of age.
                    ``(C) A certification by the chief executive 
                officer of the State that none of the amounts paid to 
                the State from its allotment under subsection (c) will 
                be expended for room or board for any child who has not 
                attained 18 years of age.
                    ``(D) A certification by the chief executive 
                officer of the State that the State will use training 
                funds provided under the program of Federal payments 
                for foster care and adoption assistance to provide 
                training to help foster parents, adoptive parents, 
                workers in group homes, and case managers understand 
                and address the issues confronting adolescents 
                preparing for independent living, and will, to the 
                extent possible, coordinate such training with the 
                independent living program conducted for adolescents.
                    ``(E) A certification by the chief executive 
                officer of the State that the State has consulted 
                widely with public and private organizations in 
                developing the plan and that the State has given all 
                interested members of the public at least 30 days to 
                submit comments on the plan.
                    ``(F) A certification by the chief executive 
                officer of the State that the State will make every 
                effort to coordinate the State programs receiving funds 
                provided from an allotment made to the State under 
                subsection (c) with other Federal and State programs 
                for youth (especially transitional living youth 
                projects funded under part B of title III of the 
                Juvenile Justice and Delinquency Prevention Act of 
                1974), abstinence education programs, local housing 
                programs, programs for disabled youth (especially 
                sheltered workshops), and school-to-work programs 
                offered by high schools or local workforce agencies.
                    ``(G) A certification by the chief executive 
                officer of the State that each Indian tribe in the 
                State has been consulted about the programs to be 
                carried out under the plan; that there have been 
                efforts to coordinate the programs with such tribes; 
                and that benefits and services under the programs will 
                be made available to Indian children in the State on 
                the same basis as to other children in the State.
                    ``(H) A certification by the chief executive 
                officer of the State that the State will ensure that 
                adolescents participating in the program under this 
                section participate directly in designing their own 
                program activities that prepare them for independent 
                living and that the adolescents accept personal 
                responsibility for living up to their part of the 
                program.
                    ``(I) A certification by the chief executive 
                officer of the State that the State has established and 
                will enforce standards and procedures to prevent fraud 
                and abuse in the programs carried out under the plan.
            ``(4) Approval.--The Secretary shall approve an application 
        submitted by a State pursuant to paragraph (1) for a period 
        if--
                    ``(A) the application is submitted on or before 
                June 30 of the calendar year in which such period 
                begins; and
                    ``(B) the Secretary finds that the application 
                contains the material required by paragraph (1).
            ``(5) Authority to implement certain amendments; 
        notification.--A State with an application approved under 
        paragraph (4) may implement any amendment to the plan contained 
        in the application if the application, incorporating the 
        amendment, would be approvable under paragraph (4). Within 30 
        days after a State implements any such amendment, the State 
        shall notify the Secretary of the amendment.
            ``(6) Availability.--The State shall make available to the 
        public any application submitted by the State pursuant to 
        paragraph (1), and a brief summary of the plan contained in the 
        application.
    ``(c) Allotments to States.--
            ``(1) In general.--From the amount specified in subsection 
        (h) that remains after applying subsection (g)(2) for a fiscal 
        year, the Secretary shall allot to each State with an 
        application approved under subsection (b) for the fiscal year 
        the amount which bears the same ratio to such remaining amount 
        as the number of children in foster care under a program of the 
        State in the most recent fiscal year for which such information 
        is available bears to the total number of children in foster 
        care in all States for such most recent fiscal year, as 
        adjusted in accordance with paragraph (2).
            ``(2) Hold harmless provision.--
                    ``(A) In general.--The Secretary shall allot to 
                each State whose allotment for a fiscal year under 
                paragraph (1) is less than the greater of $500,000 or 
                the amount payable to the State under this section for 
                fiscal year 1998, an additional amount equal to the 
                difference between such allotment and such greater 
                amount.
                    ``(B) Ratable reduction of certain allotments.--In 
                the case of a State not described in subparagraph (A) 
                of this paragraph for a fiscal year, the Secretary 
                shall reduce the amount allotted to the State for the 
                fiscal year under paragraph (1) by the amount that 
                bears the same ratio to the sum of the differences 
                determined under subparagraph (A) of this paragraph for 
                the fiscal year as the excess of the amount so allotted 
                over the greater of $500,000 or the amount payable to 
                the State under this section for fiscal year 1998 bears 
                to the sum of such excess amounts determined for all 
                such States.
    ``(d) Use of Funds.--
            ``(1) In general.--A State to which an amount is paid from 
        its allotment under subsection (c) may use the amount in any 
        manner that is reasonably calculated to accomplish the purposes 
        of this section.
            ``(2) No supplantation of other funds available for same 
        general purposes.--The amounts paid to a State from its 
        allotment under subsection (c) shall be used to supplement and 
        not supplant any other funds which are available for the same 
        general purposes in the State.
            ``(3) Two-year availability of funds.--Payments made to a 
        State under this section for a fiscal year shall be expended by 
        the State in the fiscal year or in the succeeding fiscal year.
    ``(e) Penalties.--
            ``(1) Use of grant in violation of this part.--If the 
        Secretary is made aware, by an audit conducted under chapter 75 
        of title 31, United States Code, or by any other means, that a 
        program receiving funds from an allotment made to a State under 
        subsection (c) has been operated in a manner that is 
        inconsistent with, or not disclosed in the State application 
        approved under subsection (b), the Secretary shall assess a 
        penalty against the State in an amount equal to not less than 1 
        percent and not more than 5 percent of the amount of the 
        allotment.
            ``(2) Failure to comply with data reporting requirement.--
        The Secretary shall assess a penalty against a State that fails 
        during a fiscal year to comply with an information collection 
        plan implemented under subsection (f) in an amount equal to not 
        less than 1 percent and not more than 5 percent of the amount 
        allotted to the State for the fiscal year.
            ``(3) Penalties based on degree of noncompliance.--The 
        Secretary shall assess penalties under this subsection based on 
        the degree of noncompliance.
    ``(f) Data Collection and Performance Measurement.--
            ``(1) In general.--The Secretary, in consultation with 
        State and local public officials responsible for administering 
        independent living and other child welfare programs, child 
        welfare advocates, members of Congress, youth service 
        providers, and researchers, shall--
                    ``(A) develop outcome measures (including measures 
                of educational attainment, high school diploma, 
                employment, avoidance of dependency, homelessness, 
                nonmarital childbirth, incarceration, and high-risk 
                behaviors) that can be used to assess the performance 
                of States in operating independent living programs;
                    ``(B) identify data elements needed to track--
                            ``(i) the number and characteristics of 
                        children receiving services under this section;
                            ``(ii) the type and quantity of services 
                        being provided; and
                            ``(iii) State performance on the outcome 
                        measures; and
                    ``(C) develop and implement a plan to collect the 
                needed information beginning with the second fiscal 
                year beginning after the date of the enactment of this 
                section.
            ``(2) Report to the congress.--Within 12 months after the 
        date of the enactment of this section, the Secretary shall 
        submit to the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate a 
        report detailing the plans and timetable for collecting from 
        the States the information described in paragraph (1) and a 
        proposal to impose penalties consistent with paragraph (e)(2) 
        on States that do not report data.
    ``(g) Evaluations.--
            ``(1) In general.--The Secretary shall conduct evaluations 
        of such State programs funded under this section as the 
        Secretary deems to be innovative or of potential national 
        significance. The evaluation of any such program shall include 
        information on the effects of the program on education, 
        employment, and personal development. To the maximum extent 
        practicable, the evaluations shall be based on rigorous 
        scientific standards including random assignment to treatment 
        and control groups. The Secretary is encouraged to work 
        directly with State and local governments to design methods for 
        conducting the evaluations, directly or by grant, contract, or 
        cooperative agreement.
            ``(2) Funding of evaluations.--The Secretary shall reserve 
        1.5 percent of the amount specified in subsection (h) for a 
        fiscal year to carry out, during the fiscal year, evaluation, 
        technical assistance, performance measurement, and data 
        collection activities related to this section, directly or 
        through grants, contracts, or cooperative agreements with 
        appropriate entities.
    ``(h) Limitations on Authorization of Appropriations.--To carry out 
this section and for payments to States under section 474(a)(4), there 
are authorized to be appropriated to the Secretary $140,000,000 for 
each fiscal year.''.
    (c) Payments to States.--Section 474(a)(4) of such Act (42 U.S.C. 
674(a)(4)) is amended to read as follows:
            ``(4) the lesser of--
                    ``(A) 80 percent of the amount (if any) by which--
                            ``(i) the total amount expended by the 
                        State during the fiscal year in which the 
                        quarter occurs to carry out programs in 
                        accordance with the State application approved 
                        under section 477(b) for the period in which 
                        the quarter occurs (including any amendment 
                        that meets the requirements of section 
                        477(b)(5)); exceeds
                            ``(ii) the total amount of any penalties 
                        assessed against the State under section 477(e) 
                        during the fiscal year in which the quarter 
                        occurs; or
                    ``(B) the amount allotted to the State under 
                section 477 for the fiscal year in which the quarter 
                occurs, reduced by the total of the amounts payable to 
                the State under this paragraph for all prior quarters 
                in the fiscal year.''.
    (d) Regulations.--Not later than 12 months after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
issue such regulations as may be necessary to carry out the amendments 
made by this section.
    (e) Sense of the Congress.--It is the sense of the Congress that 
States should provide medical assistance under the State plan approved 
under title XIX of the Social Security Act to 18-, 19-, and 20-year-
olds who have been emancipated from foster care.

               Subtitle B--Related Foster Care Provision

SEC. 111. INCREASE IN AMOUNT OF ASSETS ALLOWABLE FOR CHILDREN IN FOSTER 
              CARE.

    Section 472(a) of the Social Security Act (42 U.S.C. 672(a)) is 
amended by adding at the end the following: ``In determining whether a 
child would have received aid under a State plan approved under section 
402 (as in effect on July 16, 1996), a child whose resources 
(determined pursuant to section 402(a)(7)(B), as so in effect) have a 
combined value of not more than $10,000 shall be considered to be a 
child whose resources have a combined value of not more than $1,000 (or 
such lower amount as the State may determine for purposes of such 
section 402(a)(7)(B)).''.

SEC. 112. PREPARATION OF FOSTER PARENTS TO PROVIDE FOR THE NEEDS OF 
              CHILDREN IN STATE CARE.

    (a) State Plan Requirement.--Section 471(a) of the Social Security 
Act (42 U.S.C. 671(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (22);
            (2) by striking the period at the end of paragraph (23) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(24) include a certification that, before a child in 
        foster care under the responsibility of the State is placed 
        with prospective foster parents, the prospective foster parents 
        will be prepared adequately with the appropriate knowledge and 
        skills to provide for the needs of the child, and that such 
        preparation will be continued, as necessary, after the 
        placement of the child.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1999.

                    Subtitle C--Medicaid Amendments

SEC. 121. STATE OPTION OF MEDICAID COVERAGE FOR ADOLESCENTS LEAVING 
              FOSTER CARE.

    (a) In General.--Subject to subsection (c), title XIX of the Social 
Security Act is amended--
            (1) in section 1902(a)(10)(A)(ii) (42 U.S.C. 
        1396a(a)(10)(A)(ii))--
                    (A) by striking ``or'' at the end of subclause 
                (XIII);
            (B) by adding ``or'' at the end of subclause (XIV); and
            (C) by adding at the end the following new subclause:
                                    ``(XV) who are independent foster 
                                care adolescents (as defined in 
                                (section 1905(v)(1)), or who are within 
                                any reasonable categories of such 
                                adolescents specified by the State;''; 
                                and
            (2) by adding at the end of section 1905 (42 U.S.C. 1396d) 
        the following new subsection:
    ``(v)(1) For purposes of this title, the term `independent foster 
care adolescent' means an individual--
            ``(A) who is under 21 years of age;
            ``(B) who, on the individual's 18th birthday, was in foster 
        care under the responsibility of a State; and
            ``(C) whose assets, resources, and income do not exceed 
        such levels (if any) as the State may establish consistent with 
        paragraph (2).
    ``(2) The levels established by a State under paragraph (1)(C) may 
not be less than the corresponding levels applied by the State under 
section 1931(b).
    ``(3) A State may limit the eligibility of independent foster care 
adolescents under section 1902(a)(10)(A)(ii)(XV) to those individuals 
with respect to whom foster care maintenance payments or independent 
living services were furnished under a program funded under part E of 
title IV before the date the individuals attained 18 years of age.''.
    (b) Effective Date.--The amendments made by subsection (a) apply to 
medical assistance for items and services furnished on or after October 
1, 1999.
    (c) Contingency in Enactment.--If the Ticket to Work and Work 
Incentives Improvement Act of 1999 is enacted (whether before, on, or 
after the date of the enactment of this Act)--
            (1) the amendments made by that Act shall be executed as if 
        this Act had been enacted after the enactment of such other 
        Act;
            (2) with respect to subsection (a)(1)(A) of this section, 
        any reference to subclause (XIII) is deemed a reference to 
        subclause (XV);
            (3) with respect to subsection (a)(1)(B) of this section, 
        any reference to subclause (XIV) is deemed a reference to 
        subclause (XVI);
            (4) the subclause (XV) added by subsection (a)(1)(C) of 
        this section--
                    (A) is redesignated as subclause (XVII); and
                    (B) is amended by striking ``section 1905(v)(1)'' 
                and inserting ``section 1905(w)(1)''; and
            (5) the subsection (v) added by subsection (a)(2) of this 
        section--
                    (A) is redesignated as subsection (w); and
                    (B) is amended by striking 
                ``1902(a)(10)(A)(ii)(XV)'' and inserting 
                ``1902(a)(10)(A)(ii)(XVII)''.

                Subtitle D--Adoption Incentive Payments

SEC. 131. INCREASED FUNDING FOR ADOPTION INCENTIVE PAYMENTS.

    (a) Supplemental Grants.--Section 473A of the Social Security Act 
(42 U.S.C. 673b) is amended by adding at the end the following:
    ``(j) Supplemental Grants.--
            ``(1) In general.--Subject to the availability of such 
        amounts as may be provided in advance in appropriations Acts, 
        in addition to any amount otherwise payable under this section 
        to any State that is an incentive-eligible State for fiscal 
        year 1998, the Secretary shall make a grant to the State in an 
        amount equal to the lesser of--
                    ``(A) the amount by which--
                            ``(i) the amount that would have been 
                        payable to the State under this section during 
                        fiscal year 1999 (on the basis of adoptions in 
                        fiscal year 1998) in the absence of subsection 
                        (d)(2) if sufficient funds had been available 
                        for the payment; exceeds
                            ``(ii) the amount that, before the 
                        enactment of this subsection, was payable to 
                        the State under this section during fiscal year 
                        1999 (on such basis); or
                    ``(B) the amount that bears the same ratio to the 
                dollar amount specified in paragraph (2) as the amount 
                described by subparagraph (A) for the State bears to 
                the aggregate of the amounts described by subparagraph 
                (A) for all States that are incentive-eligible States 
                for fiscal year 1998.
            ``(2) Funding.--$23,000,000 of the amounts appropriated 
        under subsection (h)(1) for fiscal year 2000 may be used for 
        grants under paragraph (1) of this subsection.''.
    (b) Limitation on Authorization of Appropriations.--Section 
473A(h)(1) of the Social Security Act (42 U.S.C. 673b(h)(1)) is amended 
to read as follows:
            ``(1) In general.--For grants under subsection (a), there 
        are authorized to be appropriated to the Secretary--
                    ``(A) $20,000,000 for fiscal year 1999;
                    ``(B) $43,000,000 for fiscal year 2000; and
                    ``(C) $20,000,000 for each of fiscal years 2001 
                through 2003.''.

                     TITLE II--SSI FRAUD PREVENTION

          Subtitle A--Fraud Prevention and Related Provisions

SEC. 201. LIABILITY OF REPRESENTATIVE PAYEES FOR OVERPAYMENTS TO 
              DECEASED RECIPIENTS.

    (a) Amendment to Title II.--Section 204(a)(2) of the Social 
Security Act (42 U.S.C. 404(a)(2)) is amended by adding at the end the 
following new sentence: ``If any payment of more than the correct 
amount is made to a representative payee on behalf of an individual 
after the individual's death, the representative payee shall be liable 
for the repayment of the overpayment, and the Commissioner of Social 
Security shall establish an overpayment control record under the social 
security account number of the representative payee.''.
    (b) Amendment to Title XVI.--Section 1631(b)(2) of such Act (42 
U.S.C. 1383(b)(2)) is amended by adding at the end the following new 
sentence: ``If any payment of more than the correct amount is made to a 
representative payee on behalf of an individual after the individual's 
death, the representative payee shall be liable for the repayment of 
the overpayment, and the Commissioner of Social Security shall 
establish an overpayment control record under the social security 
account number of the representative payee.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to overpayments made 12 months or more after the date of the 
enactment of this Act.

SEC. 202. RECOVERY OF OVERPAYMENTS OF SSI BENEFITS FROM LUMP SUM SSI 
              BENEFIT PAYMENTS.

    (a) In General.--Section 1631(b)(1)(B)(ii) of the Social Security 
Act (42 U.S.C. 1383(b)(1)(B)(ii)) is amended--
            (1) by inserting ``monthly'' before ``benefit payments''; 
        and
            (2) by inserting ``and in the case of an individual or 
        eligible spouse to whom a lump sum is payable under this title 
        (including under section 1616(a) of this Act or under an 
        agreement entered into under section 212(a) of Public Law 93-
        66) shall, as at least one means of recovering such 
        overpayment, make the adjustment or recovery from the lump sum 
        payment in an amount equal to not less than the lesser of the 
        amount of the overpayment or 50 percent of the lump sum 
        payment,'' before ``unless fraud''.
    (b) Effective Date.--The amendments made by this section shall take 
effect 12 months after the date of the enactment of this Act and shall 
apply to amounts incorrectly paid which remain outstanding on or after 
such date.

SEC. 203. ADDITIONAL DEBT COLLECTION PRACTICES.

    (a) In General.--Section 1631(b) of the Social Security Act (42 
U.S.C. 1383(b)) is amended--
            (1) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively; and
            (2) by inserting after paragraph (3) the following:
    ``(4)(A) With respect to any delinquent amount, the Commissioner of 
Social Security may use the collection practices described in sections 
3711(f), 3716, 3717, and 3718 of title 31, United States Code, and in 
section 5514 of title 5, United States Code, all as in effect 
immediately after the enactment of the Debt Collection Improvement Act 
of 1996.
    ``(B) For purposes of subparagraph (A), the term `delinquent 
amount' means an amount--
            ``(i) in excess of the correct amount of payment under this 
        title;
            ``(ii) paid to a person after such person has attained 18 
        years of age; and
            ``(iii) determined by the Commissioner of Social Security, 
        under regulations, to be otherwise unrecoverable under this 
        section after such person ceases to be a beneficiary under this 
        title.''.
    (b) Conforming Amendments.--Section 3701(d)(2) of title 31, United 
States Code, is amended by striking ``section 204(f)'' and inserting 
``sections 204(f) and 1631(b)(4)''.
    (c) Technical Amendments.--Section 204(f) of the Social Security 
Act (42 U.S.C. 404(f)) is amended--
            (1) by striking ``3711(e)'' and inserting ``3711(f)''; and
            (2) by inserting ``all'' before ``as in effect''.
    (d) Effective Date.--The amendments made by this section shall 
apply to debt outstanding on or after the date of the enactment of this 
Act.

SEC. 204. REQUIREMENT TO PROVIDE STATE PRISONER INFORMATION TO FEDERAL 
              AND FEDERALLY ASSISTED BENEFIT PROGRAMS.

    Section 1611(e)(1)(I)(ii)(II) of the Social Security Act (42 U.S.C. 
1382(e)(1)(I)(ii)(II)) is amended by striking ``is authorized to'' and 
inserting ``shall''.

SEC. 205. TREATMENT OF ASSETS HELD IN TRUST UNDER THE SSI PROGRAM.

    (a) Treatment as Resource.--Section 1613 of the Social Security Act 
(42 U.S.C. 1382b) is amended by adding at the end the following:

                                ``Trusts

    ``(e)(1) In determining the resources of an individual, paragraph 
(3) shall apply to a trust (other than a trust described in paragraph 
(5)) established by the individual.
    ``(2)(A) For purposes of this subsection, an individual shall be 
considered to have established a trust if any assets of the individual 
(or of the individual's spouse) are transferred to the trust other than 
by will.
    ``(B) In the case of an irrevocable trust to which are transferred 
the assets of an individual (or of the individual's spouse) and the 
assets of any other person, this subsection shall apply to the portion 
of the trust attributable to the assets of the individual (or of the 
individual's spouse).
    ``(C) This subsection shall apply to a trust without regard to--
            ``(i) the purposes for which the trust is established;
            ``(ii) whether the trustees have or exercise any discretion 
        under the trust;
            ``(iii) any restrictions on when or whether distributions 
        may be made from the trust; or
            ``(iv) any restrictions on the use of distributions from 
        the trust.
    ``(3)(A) In the case of a revocable trust established by an 
individual, the corpus of the trust shall be considered a resource 
available to the individual.
    ``(B) In the case of an irrevocable trust established by an 
individual, if there are any circumstances under which payment from the 
trust could be made to or for the benefit of the individual or the 
individual's spouse, the portion of the corpus from which payment to or 
for the benefit of the individual or the individual's spouse could be 
made shall be considered a resource available to the individual.
    ``(4) The Commissioner of Social Security may waive the application 
of this subsection with respect to an individual if the Commissioner 
determines that such application would work an undue hardship (as 
determined on the basis of criteria established by the Commissioner) on 
the individual.
    ``(5) This subsection shall not apply to a trust described in 
subparagraph (A) or (C) of section 1917(d)(4).
    ``(6) For purposes of this subsection--
            ``(A) the term `trust' includes any legal instrument or 
        device that is similar to a trust;
            ``(B) the term `corpus' means, with respect to a trust, all 
        property and other interests held by the trust, including 
        accumulated earnings and any other addition to the trust after 
        its establishment (except that such term does not include any 
        such earnings or addition in the month in which the earnings or 
        addition is credited or otherwise transferred to the trust); 
        and
            ``(C) the term `asset' includes any income or resource of 
        the individual or of the individual's spouse, including--
                    ``(i) any income excluded by section 1612(b);
                    ``(ii) any resource otherwise excluded by this 
                section; and
                    ``(iii) any other payment or property to which the 
                individual or the individual's spouse is entitled but 
                does not receive or have access to because of action 
                by--
                            ``(I) the individual or spouse;
                            ``(II) a person or entity (including a 
                        court) with legal authority to act in place of, 
                        or on behalf of, the individual or spouse; or
                            ``(III) a person or entity (including a 
                        court) acting at the direction of, or on the 
                        request of, the individual or spouse.''.
    (b) Treatment as Income.--Section 1612(a)(2) of such Act (42 U.S.C. 
1382a(a)(2)) is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by striking the period at the end of subparagraph (F) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(G) any earnings of, and additions to, the corpus of a 
        trust established by an individual (within the meaning of 
        section 1613(e)), of which the individual is a beneficiary, to 
        which section 1613(e) applies, and, in the case of an 
        irrevocable trust, with respect to which circumstances exist 
        under which a payment from the earnings or additions could be 
        made to or for the benefit of the individual.''.
    (c) Conforming Amendments.--Section 1902(a)(10) of the Social 
Security Act (42 U.S.C. 1396a(a)(10)) is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by adding ``and'' at the end of subparagraph (F); and
            (3) by inserting after subparagraph (F) the following:
                    ``(G) that, in applying eligibility criteria of the 
                supplemental security income program under title XVI 
                for purposes of determining eligibility for medical 
                assistance under the State plan of an individual who is 
                not receiving supplemental security income, the State 
                will disregard the provisions of section 1613(e);''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2000, and shall apply to trusts established on or 
after such date.

SEC. 206. DISPOSAL OF RESOURCES FOR LESS THAN FAIR MARKET VALUE UNDER 
              THE SSI PROGRAM.

    (a) In General.--Section 1613(c) of the Social Security Act (42 
U.S.C. 1382b(c)) is amended--
            (1) in the caption, by striking ``Notification of Medicaid 
        Policy Restricting Eligibility of Institutionalized Individuals 
        for Benefits Based on'';
            (2) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by inserting ``paragraph (1) and'' 
                        after ``provisions of'';
                            (ii) by striking ``title XIX'' the first 
                        place it appears and inserting ``this title and 
                        title XIX, respectively,'';
                            (iii) by striking ``subparagraph (B)'' and 
                        inserting ``clause (ii)'';
                            (iv) by striking ``paragraph (2)'' and 
                        inserting ``subparagraph (B)'';
                    (B) in subparagraph (B)--
                            (i) by striking ``by the State agency''; 
                        and
                            (ii) by striking ``section 1917(c)'' and 
                        all that follows and inserting ``paragraph (1) 
                        or section 1917(c).''; and
                    (C) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively;
            (3) in paragraph (2)--
                    (A) by striking ``(2)'' and inserting ``(B)''; and
                    (B) by striking ``paragraph (1)(B)'' and inserting 
                ``subparagraph (A)(ii)'';
            (4) by striking ``(c)(1)'' and inserting ``(2)(A)''; and
            (5) by inserting before paragraph (2) (as so redesignated 
        by paragraph (4) of this subsection) the following:
    ``(c)(1)(A)(i) If an individual or the spouse of an individual 
disposes of resources for less than fair market value on or after the 
look-back date described in clause (ii)(I), the individual is 
ineligible for benefits under this title for months during the period 
beginning on the date described in clause (iii) and equal to the number 
of months calculated as provided in clause (iv).
    ``(ii)(I) The look-back date described in this subclause is a date 
that is 36 months before the date described in subclause (II).
    ``(II) The date described in this subclause is the date on which 
the individual applies for benefits under this title or, if later, the 
date on which the individual (or the spouse of the individual) disposes 
of resources for less than fair market value.
    ``(iii) The date described in this clause is the first day of the 
first month in or after which resources were disposed of for less than 
fair market value and which does not occur in any other period of 
ineligibility under this paragraph.
    ``(iv) The number of months calculated under this clause shall be 
equal to--
            ``(I) the total, cumulative uncompensated value of all 
        resources so disposed of by the individual (or the spouse of 
        the individual) on or after the look-back date described in 
        clause (ii)(I); divided by
            ``(II) the amount of the maximum monthly benefit payable 
        under section 1611(b), plus the amount (if any) of the maximum 
        State supplementary payment corresponding to the State's 
        payment level applicable to the individual's living arrangement 
        and eligibility category that would otherwise be payable to the 
        individual by the Commissioner pursuant to an agreement under 
        section 1616(a) of this Act or section 212(b) of Public Law 93-
        66, for the month in which occurs the date described in clause 
        (ii)(II),
rounded, in the case of any fraction, to the nearest whole number, but 
shall not in any case exceed 36 months.
    ``(B)(i) Notwithstanding subparagraph (A), this subsection shall 
not apply to a transfer of a resource to a trust if the portion of the 
trust attributable to the resource is considered a resource available 
to the individual pursuant to subsection (e)(3) (or would be so 
considered but for the application of subsection (e)(4)).
    ``(ii) In the case of a trust established by an individual or an 
individual's spouse (within the meaning of subsection (e)), if from 
such portion of the trust, if any, that is considered a resource 
available to the individual pursuant to subsection (e)(3) (or would be 
so considered but for the application of subsection (e)(4)) or the 
residue of the portion on the termination of the trust--
            ``(I) there is made a payment other than to or for the 
        benefit of the individual; or
            ``(II) no payment could under any circumstance be made to 
        the individual,
then, for purposes of this subsection, the payment described in clause 
(I) or the foreclosure of payment described in clause (II) shall be 
considered a transfer of resources by the individual or the 
individual's spouse as of the date of the payment or foreclosure, as 
the case may be.
    ``(C) An individual shall not be ineligible for benefits under this 
title by reason of the application of this paragraph to a disposal of 
resources by the individual or the spouse of the individual, to the 
extent that--
            ``(i) the resources are a home and title to the home was 
        transferred to--
                    ``(I) the spouse of the transferor;
                    ``(II) a child of the transferor who has not 
                attained 21 years of age, or is blind or disabled;
                    ``(III) a sibling of the transferor who has an 
                equity interest in such home and who was residing in 
                the transferor's home for a period of at least 1 year 
                immediately before the date the transferor becomes an 
                institutionalized individual; or
                    ``(IV) a son or daughter of the transferor (other 
                than a child described in subclause (II)) who was 
                residing in the transferor's home for a period of at 
                least 2 years immediately before the date the 
                transferor becomes an institutionalized individual, and 
                who provided care to the transferor which permitted the 
                transferor to reside at home rather than in such an 
                institution or facility;
            ``(ii) the resources--
                    ``(I) were transferred to the transferor's spouse 
                or to another for the sole benefit of the transferor's 
                spouse;
                    ``(II) were transferred from the transferor's 
                spouse to another for the sole benefit of the 
                transferor's spouse;
                    ``(III) were transferred to, or to a trust 
                (including a trust described in section 1917(d)(4)) 
                established solely for the benefit of, the transferor's 
                child who is blind or disabled; or
                    ``(IV) were transferred to a trust (including a 
                trust described in section 1917(d)(4)) established 
                solely for the benefit of an individual who has not 
                attained 65 years of age and who is disabled;
            ``(iii) a satisfactory showing is made to the Commissioner 
        of Social Security (in accordance with regulations promulgated 
        by the Commissioner) that--
                    ``(I) the individual who disposed of the resources 
                intended to dispose of the resources either at fair 
                market value, or for other valuable consideration;
                    ``(II) the resources were transferred exclusively 
                for a purpose other than to qualify for benefits under 
                this title; or
                    ``(III) all resources transferred for less than 
                fair market value have been returned to the transferor; 
                or
            ``(iv) the Commissioner determines, under procedures 
        established by the Commissioner, that the denial of eligibility 
        would work an undue hardship as determined on the basis of 
        criteria established by the Commissioner.
    ``(D) For purposes of this subsection, in the case of a resource 
held by an individual in common with another person or persons in a 
joint tenancy, tenancy in common, or similar arrangement, the resource 
(or the affected portion of such resource) shall be considered to be 
disposed of by the individual when any action is taken, either by the 
individual or by any other person, that reduces or eliminates the 
individual's ownership or control of such resource.
    ``(E) In the case of a transfer by the spouse of an individual that 
results in a period of ineligibility for the individual under this 
subsection, the Commissioner shall apportion the period (or any portion 
of the period) among the individual and the individual's spouse if the 
spouse becomes eligible for benefits under this title.
    ``(F) For purposes of this paragraph--
            ``(i) the term `benefits under this title' includes 
        payments of the type described in section 1616(a) of this Act 
        and of the type described in section 212(b) of Public Law 93-
        66;
            ``(ii) the term `institutionalized individual' has the 
        meaning given such term in section 1917(e)(3); and
            ``(iii) the term `trust' has the meaning given such term in 
        subsection (e)(6)(A) of this section.''.
    (b) Conforming Amendment.--Section 1902(a)(10) of the Social 
Security Act (42 U.S.C. 1396a(a)(10)), as amended by section 205(c) of 
this Act, is amended by striking ``section 1613(e)'' and inserting 
``subsections (c) and (e) of section 1613''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to disposals made on or after the date of the 
enactment of this Act.

SEC. 207. ADMINISTRATIVE PROCEDURE FOR IMPOSING PENALTIES FOR FALSE OR 
              MISLEADING STATEMENTS.

    (a) In General.--Part A of title XI of the Social Security Act (42 
U.S.C. 1301 et seq.) is amended by inserting after section 1129 the 
following:

``SEC. 1129A. ADMINISTRATIVE PROCEDURE FOR IMPOSING PENALTIES FOR FALSE 
              OR MISLEADING STATEMENTS.

    ``(a) In General.--Any person who makes, or causes to be made, a 
statement or representation of a material fact for use in determining 
any initial or continuing right to or the amount of--
            ``(1) monthly insurance benefits under title II; or
            ``(2) benefits or payments under title XVI,
that the person knows or should know is false or misleading or knows or 
should know omits a material fact or who makes such a statement with 
knowing disregard for the truth shall be subject to, in addition to any 
other penalties that may be prescribed by law, a penalty described in 
subsection (b) to be imposed by the Commissioner of Social Security.
    ``(b) Penalty.--The penalty described in this subsection is--
            ``(1) nonpayment of benefits under title II that would 
        otherwise be payable to the person; and
            ``(2) ineligibility for cash benefits under title XVI,
for each month that begins during the applicable period described in 
subsection (c).
    ``(c) Duration of Penalty.--The duration of the applicable period, 
with respect to a determination by the Commissioner under subsection 
(a) that a person has engaged in conduct described in subsection (a), 
shall be--
            ``(1) six consecutive months, in the case of the first such 
        determination with respect to the person;
            ``(2) twelve consecutive months, in the case of the second 
        such determination with respect to the person; and
            ``(3) twenty-four consecutive months, in the case of the 
        third or subsequent such determination with respect to the 
        person.
    ``(d) Effect on Other Assistance.--A person subject to a period of 
nonpayment of benefits under title II or ineligibility for title XVI 
benefits by reason of this section nevertheless shall be considered to 
be eligible for and receiving such benefits, to the extent that the 
person would be receiving or eligible for such benefits but for the 
imposition of the penalty, for purposes of--
            ``(1) determination of the eligibility of the person for 
        benefits under titles XVIII and XIX; and
            ``(2) determination of the eligibility or amount of 
        benefits payable under title II or XVI to another person.
    ``(e) Definition.--In this section, the term `benefits under title 
XVI' includes State supplementary payments made by the Commissioner 
pursuant to an agreement under section 1616(a) of this Act or section 
212(b) of Public Law 93-66.
    ``(f) Consultations.--The Commissioner of Social Security shall 
consult with the Inspector General of the Social Security 
Administration regarding initiating actions under this section.''.
    (b) Conforming Amendment Precluding Delayed Retirement Credit for 
any Month to Which a Nonpayment of Benefits Penalty Applies.--Section 
202(w)(2)(B) of such Act (42 U.S.C. 402(w)(2)(B)) is amended--
            (1) by striking ``and'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii) and 
        inserting ``, and''; and
            (3) by adding at the end the following:
                    ``(iii) such individual was not subject to a 
                penalty imposed under section 1129A.''.
    (c) Elimination of Redundant Provision.--Section 1611(e) of such 
Act (42 U.S.C. 1382(e)) is amended--
            (1) by striking paragraph (4);
            (2) in paragraph (6)(A)(i), by striking ``(5)'' and 
        inserting ``(4)''; and
            (3) by redesignating paragraphs (5) and (6) as paragraphs 
        (4) and (5), respectively.
    (d) Regulations.--Within 6 months after the date of the enactment 
of this Act, the Commissioner of Social Security shall develop 
regulations that prescribe the administrative process for making 
determinations under section 1129A of the Social Security Act 
(including when the applicable period in subsection (c) of such section 
shall commence), and shall provide guidance on the exercise of 
discretion as to whether the penalty should be imposed in particular 
cases.
    (e) Effective Date.--The amendments made by this section shall 
apply to statements and representations made on or after the date of 
the enactment of this Act.

SEC. 208. EXCLUSION OF REPRESENTATIVES AND HEALTH CARE PROVIDERS 
              CONVICTED OF VIOLATIONS FROM PARTICIPATION IN SOCIAL 
              SECURITY PROGRAMS.

    (a) In General.--Part A of title XI of the Social Security Act is 
amended by inserting before section 1137 (42 U.S.C. 1320b-7) the 
following:

 ``exclusion of representatives and health care providers convicted of 
       violations from participation in social security programs

    ``Sec. 1136. (a) In General.--The Commissioner of Social Security 
shall exclude from participation in the social security programs any 
representative or health care provider--
            ``(1) who is convicted of a violation of section 208 or 
        1632 of this Act;
            ``(2) who is convicted of any violation under title 18, 
        United States Code, relating to an initial application for or 
        continuing entitlement to, or amount of, benefits under title 
        II of this Act, or an initial application for or continuing 
        eligibility for, or amount of, benefits under title XVI of this 
        Act; or
            ``(3) who the Commissioner determines has committed an 
        offense described in section 1129(a)(1) of this Act.
    ``(b) Notice, Effective Date, and Period of Exclusion.--(1) An 
exclusion under this section shall be effective at such time, for such 
period, and upon such reasonable notice to the public and to the 
individual excluded as may be specified in regulations consistent with 
paragraph (2).
    ``(2) Such an exclusion shall be effective with respect to services 
furnished to any individual on or after the effective date of the 
exclusion. Nothing in this section may be construed to preclude, in 
determining disability under title II or title XVI, consideration of 
any medical evidence derived from services provided by a health care 
provider before the effective date of the exclusion of the health care 
provider under this section.
    ``(3)(A) The Commissioner shall specify, in the notice of exclusion 
under paragraph (1), the period of the exclusion.
    ``(B) Subject to subparagraph (C), in the case of an exclusion 
under subsection (a), the minimum period of exclusion shall be five 
years, except that the Commissioner may waive the exclusion in the case 
of an individual who is the sole source of essential services in a 
community. The Commissioner's decision whether to waive the exclusion 
shall not be reviewable.
    ``(C) In the case of an exclusion of an individual under subsection 
(a) based on a conviction or a determination described in subsection 
(a)(3) occurring on or after the date of the enactment of this section, 
if the individual has (before, on, or after such date of the enactment) 
been convicted, or if such a determination has been made with respect 
to the individual--
            ``(i) on one previous occasion of one or more offenses for 
        which an exclusion may be effected under such subsection, the 
        period of the exclusion shall be not less than 10 years; or
            ``(ii) on two or more previous occasions of one or more 
        offenses for which an exclusion may be effected under such 
        subsection, the period of the exclusion shall be permanent.
    ``(c) Notice to State Agencies.--The Commissioner shall promptly 
notify each appropriate State agency employed for the purpose of making 
disability determinations under section 221 or 1633(a)--
            ``(1) of the fact and circumstances of each exclusion 
        effected against an individual under this section; and
            ``(2) of the period (described in subsection (b)(3)) for 
        which the State agency is directed to exclude the individual 
        from participation in the activities of the State agency in the 
        course of its employment.
    ``(d) Notice to State Licensing Agencies.--The Commissioner shall--
            ``(1) promptly notify the appropriate State or local agency 
        or authority having responsibility for the licensing or 
        certification of an individual excluded from participation 
        under this section of the fact and circumstances of the 
        exclusion;
            ``(2) request that appropriate investigations be made and 
        sanctions invoked in accordance with applicable State law and 
        policy; and
            ``(3) request that the State or local agency or authority 
        keep the Commissioner and the Inspector General of the Social 
        Security Administration fully and currently informed with 
        respect to any actions taken in response to the request.
    ``(e) Notice, Hearing, and Judicial Review.--(1) Any individual who 
is excluded (or directed to be excluded) from participation under this 
section is entitled to reasonable notice and opportunity for a hearing 
thereon by the Commissioner to the same extent as is provided in 
section 205(b), and to judicial review of the Commissioner's final 
decision after such hearing as is provided in section 205(g).
    ``(2) The provisions of section 205(h) shall apply with respect to 
this section to the same extent as it is applicable with respect to 
title II.
    ``(f) Application for Termination of Exclusion.--(1) An individual 
excluded from participation under this section may apply to the 
Commissioner, in the manner specified by the Commissioner in 
regulations and at the end of the minimum period of exclusion provided 
under subsection (b)(3) and at such other times as the Commissioner may 
provide, for termination of the exclusion effected under this section.
    ``(2) The Commissioner may terminate the exclusion if the 
Commissioner determines, on the basis of the conduct of the applicant 
which occurred after the date of the notice of exclusion or which was 
unknown to the Commissioner at the time of the exclusion, that--
            ``(A) there is no basis under subsection (a) for a 
        continuation of the exclusion; and
            ``(B) there are reasonable assurances that the types of 
        actions which formed the basis for the original exclusion have 
        not recurred and will not recur.
    ``(3) The Commissioner shall promptly notify each State agency 
employed for the purpose of making disability determinations under 
section 221 or 1633(a) of the fact and circumstances of each 
termination of exclusion made under this subsection.
    ``(g) Availability of Records of Excluded Representatives and 
health care providers.--Nothing in this section shall be construed to 
have the effect of limiting access by any applicant or beneficiary 
under title II or XVI, any State agency acting under section 221 or 
1633(a), or the Commissioner to records maintained by any 
representative or health care provider in connection with services 
provided to the applicant or beneficiary prior to the exclusion of such 
representative or health care provider under this section.
    ``(h) Reporting Requirement.--Any representative or health care 
provider participating in, or seeking to participate in, a social 
security program shall inform the Commissioner, in such form and manner 
as the Commissioner shall prescribe by regulation, whether such 
representative or health care provider has been convicted of a 
violation described in subsection (a).
    ``(i) Delegation of Authority.--The Commissioner may delegate 
authority granted by this section to the Inspector General.
    ``(j) Definitions.--For purposes of this section:
            ``(1) Exclude.--The term `exclude' from participation 
        means--
                    ``(A) in connection with a representative, to 
                prohibit from engaging in representation of an 
                applicant for, or recipient of, benefits, as a 
                representative payee under section 205(j) or section 
                1631(a)(2)(A)(ii), or otherwise as a representative, in 
                any hearing or other proceeding relating to entitlement 
                to benefits; and
                    ``(B) in connection with a health care provider, to 
                prohibit from providing items or services to an 
                applicant for, or recipient of, benefits for the 
                purpose of assisting such applicant or recipient in 
                demonstrating disability.
            ``(2) Social security program.--The term `social security 
        programs' means the program providing for monthly insurance 
        benefits under title II, and the program providing for monthly 
        supplemental security income benefits to individuals under 
        title XVI (including State supplementary payments made by the 
        Commissioner pursuant to an agreement under section 1616(a) of 
        this Act or section 212(b) of Public Law 93-66).
            ``(3) Convicted.--An individual is considered to have been 
        `convicted' of a violation--
                    ``(A) when a judgment of conviction has been 
                entered against the individual by a Federal, State, or 
                local court, except if the judgment of conviction has 
                been set aside or expunged;
                    ``(B) when there has been a finding of guilt 
                against the individual by a Federal, State, or local 
                court;
                    ``(C) when a plea of guilty or nolo contendere by 
                the individual has been accepted by a Federal, State, 
                or local court; or
                    ``(D) when the individual has entered into 
                participation in a first offender, deferred 
                adjudication, or other arrangement or program where 
                judgment of conviction has been withheld.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to convictions of violations described in paragraphs (1) 
and (2) of section 1136(a) of the Social Security Act and 
determinations described in paragraph (3) of such section occurring on 
or after the date of the enactment of this Act.

SEC. 209. STATE DATA EXCHANGES.

    Whenever the Commissioner of Social Security requests information 
from a State for the purpose of ascertaining an individual's 
eligibility for benefits (or the correct amount of such benefits) under 
title II or XVI of the Social Security Act, the standards of the 
Commissioner promulgated pursuant to section 1106 of such Act or any 
other Federal law for the use, safeguarding, and disclosure of 
information are deemed to meet any standards of the State that would 
otherwise apply to the disclosure of information by the State to the 
Commissioner.

SEC. 210. STUDY ON POSSIBLE MEASURES TO IMPROVE FRAUD PREVENTION AND 
              ADMINISTRATIVE PROCESSING.

    (a) Study.--As soon as practicable after the date of the enactment 
of this Act, the Commissioner of Social Security, in consultation with 
the Inspector General of the Social Security Administration and the 
Attorney General, shall conduct a study of possible measures to 
improve--
            (1) prevention of fraud on the part of individuals entitled 
        to disability benefits under section 223 of the Social Security 
        Act or benefits under section 202 of such Act based on the 
        beneficiary's disability, individuals eligible for supplemental 
        security income benefits under title XVI of such Act, and 
        applicants for any such benefits; and
            (2) timely processing of reported income changes by 
        individuals receiving such benefits.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Commissioner shall submit to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate a written report that contains the results of the 
Commissioner's study under subsection (a). The report shall contain 
such recommendations for legislative and administrative changes as the 
Commissioner considers appropriate.

SEC. 211. ANNUAL REPORT ON AMOUNTS NECESSARY TO COMBAT FRAUD.

    (a) In General.--Section 704(b)(1) of the Social Security Act (42 
U.S.C. 904(b)(1)) is amended--
            (1) by inserting ``(A)'' after ``(b)(1)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) The Commissioner shall include in the annual budget prepared 
pursuant to subparagraph (A) an itemization of the amount of funds 
required by the Social Security Administration for the fiscal year 
covered by the budget to support efforts to combat fraud committed by 
applicants and beneficiaries.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to annual budgets prepared for fiscal years after 
fiscal year 1999.

SEC. 212. COMPUTER MATCHES WITH MEDICARE AND MEDICAID 
              INSTITUTIONALIZATION DATA.

    (a) In General.--Section 1611(e)(1) of the Social Security Act (42 
U.S.C. 1382(e)(1)) is amended by adding at the end the following:
    ``(J) For the purpose of carrying out this paragraph, the 
Commissioner of Social Security shall conduct periodic computer matches 
with data maintained by the Secretary of Health and Human Services 
under title XVIII or XIX. The Secretary shall furnish to the 
Commissioner, in such form and manner and under such terms as the 
Commissioner and the Secretary shall mutually agree, such information 
as the Commissioner may request for this purpose. Information obtained 
pursuant to such a match may be substituted for the physician's 
certification otherwise required under subparagraph (G)(i).''.
    (b) Conforming Amendment.--Section 1611(e)(1)(G) of such Act (42 
U.S.C. 1382(e)(1)(G)) is amended by striking ``subparagraph (H)'' and 
inserting ``subparagraph (H) or (J)''.

SEC. 213. ACCESS TO INFORMATION HELD BY FINANCIAL INSTITUTIONS.

    Section 1631(e)(1)(B) of the Social Security Act (42 U.S.C. 
1383(e)(1)(B)) is amended--
            (1) by striking ``(B) The'' and inserting ``(B)(i) The''; 
        and
            (2) by adding at the end the following new clause:
    ``(ii)(I) The Commissioner of Social Security may require each 
applicant for, or recipient of, benefits under this title to provide 
authorization by the applicant or recipient (or by any other person 
whose income or resources are material to the determination of the 
eligibility of the applicant or recipient for such benefits) for the 
Commissioner to obtain (subject to the cost reimbursement requirements 
of section 1115(a) of the Right to Financial Privacy Act) from any 
financial institution (within the meaning of section 1101(1) of such 
Act) any financial record (within the meaning of section 1101(2) of 
such Act) held by the institution with respect to the applicant or 
recipient (or any such other person) whenever the Commissioner 
determines the record is needed in connection with a determination with 
respect to such eligibility or the amount of such benefits.
    ``(II) Notwithstanding section 1104(a)(1) of the Right to Financial 
Privacy Act, an authorization provided by an applicant or recipient (or 
any other person whose income or resources are material to the 
determination of the eligibility of the applicant or recipient) 
pursuant to subclause (I) of this clause shall remain effective until 
the earliest of--
            ``(aa) the rendering of a final adverse decision on the 
        applicant's application for eligibility for benefits under this 
        title;
            ``(bb) the cessation of the recipient's eligibility for 
        benefits under this title; or
            ``(cc) the express revocation by the applicant or recipient 
        (or such other person referred to in subclause (I)) of the 
        authorization, in a written notification to the Commissioner.
    ``(III)(aa) An authorization obtained by the Commissioner of Social 
Security pursuant to this clause shall be considered to meet the 
requirements of the Right to Financial Privacy Act for purposes of 
section 1103(a) of such Act, and need not be furnished to the financial 
institution, notwithstanding section 1104(a) of such Act.
    ``(bb) The certification requirements of section 1103(b) of the 
Right to Financial Privacy Act shall not apply to requests by the 
Commissioner of Social Security pursuant to an authorization provided 
under this clause.
    ``(cc) A request by the Commissioner pursuant to an authorization 
provided under this clause is deemed to meet the requirements of 
section 1104(a)(3) of the Right to Financial Privacy Act and the flush 
language of section 1102 of such Act.
    ``(IV) The Commissioner shall inform any person who provides 
authorization pursuant to this clause of the duration and scope of the 
authorization.
    ``(V) If an applicant for, or recipient of, benefits under this 
title (or any such other person referred to in subclause (I)) refuses 
to provide, or revokes, any authorization made by the applicant or 
recipient for the Commissioner of Social Security to obtain from any 
financial institution any financial record, the Commissioner may, on 
that basis, determine that the applicant or recipient is ineligible for 
benefits under this title.''.

         Subtitle B--Benefits For Certain World War II Veterans

SEC. 251. ESTABLISHMENT OF PROGRAM OF SPECIAL BENEFITS FOR CERTAIN 
              WORLD WAR II VETERANS.

    (a) In General.--The Social Security Act is amended by inserting 
after title VII the following new title:

    ``TITLE VIII--SPECIAL BENEFITS FOR CERTAIN WORLD WAR II 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.

``SEC. 801. BASIC ENTITLEMENT TO BENEFITS.

    ``Every individual who is a qualified individual under section 802 
shall, in accordance with and subject to the provisions of this title, 
be entitled to a monthly benefit paid by the Commissioner of Social 
Security for each month after September 2000 (or such earlier month, if 
the Commissioner determines is administratively feasible) the 
individual resides outside the United States.

``SEC. 802. QUALIFIED INDIVIDUALS.

    ``Except as otherwise provided in this title, an individual--
            ``(1) who has attained the age of 65 on or before the date 
        of the enactment of this title;
            ``(2) who is a World War II veteran;
            ``(3) who is eligible for a supplemental security income 
        benefit under title XVI for--
                    ``(A) the month in which this title is enacted; and
                    ``(B) the month in which the individual files an 
                application for benefits under this title;
            ``(4) whose total benefit income is less than 75 percent of 
        the Federal benefit rate under title XVI;
            ``(5) who has filed an application for benefits under this 
        title; and
            ``(6) who is in compliance with all requirements imposed by 
        the Commissioner of Social Security under this title,
shall be a qualified individual for purposes of this title.

``SEC. 803. RESIDENCE OUTSIDE THE UNITED STATES.

    ``For purposes of section 801, with respect to any month, an 
individual shall be regarded as residing outside the United States if, 
on the first day of the month, the individual so resides outside the 
United States.

``SEC. 804. DISQUALIFICATIONS.

    ``(a) In General.--Notwithstanding section 802, an individual may 
not be a qualified individual for any month--
            ``(1) that begins after the month in which the Commissioner 
        of Social Security is notified by the Attorney General that the 
        individual has been removed from the United States pursuant to 
        section 237(a) or 212(a)(6)(A) of the Immigration and 
        Nationality Act and before the month in which the individual is 
        lawfully admitted to the United States for permanent residence;
            ``(2) during any part of which the individual is fleeing to 
        avoid prosecution, or custody or confinement after conviction, 
        under the laws of the United States or the jurisdiction within 
        the United States from which the person has fled, for a crime, 
        or an attempt to commit a crime, that is a felony under the 
        laws of the place from which the individual has fled, or which, 
        in the case of the State of New Jersey, is a high misdemeanor 
        under the laws of such State;
            ``(3) during any part of which the individual violates a 
        condition of probation or parole imposed under Federal or State 
        law; or
            ``(4) during which the individual resides in a foreign 
        country and is not a citizen or national of the United States 
        if payments for such month to individuals residing in such 
        country are withheld by the Treasury Department under section 
        3329 of title 31, United States Code.
    ``(b) Requirement for Attorney General.--For the purpose of 
carrying out subsection (a)(1), the Attorney General shall notify the 
Commissioner of Social Security as soon as practicable after the 
removal of any individual under section 237(a) or 212(a)(6)(A) of the 
Immigration and Nationality Act.

``SEC. 805. BENEFIT AMOUNT.

    ``The benefit under this title payable to a qualified individual 
for any month shall be in an amount equal to 75 percent of the Federal 
benefit rate under title XVI for the month, reduced by the amount of 
the qualified individual's benefit income for the month.

``SEC. 806. APPLICATIONS AND FURNISHING OF INFORMATION.

    ``(a) In General.--The Commissioner of Social Security shall, 
subject to subsection (b), prescribe such requirements with respect to 
the filing of applications, the furnishing of information and other 
material, and the reporting of events and changes in circumstances, as 
may be necessary for the effective and efficient administration of this 
title.
    ``(b) Verification Requirement.--The requirements prescribed by the 
Commissioner of Social Security under subsection (a) shall preclude any 
determination of entitlement to benefits under this title solely on the 
basis of declarations by the individual concerning qualifications or 
other material facts, and shall provide for verification of material 
information from independent or collateral sources, and the procurement 
of additional information as necessary in order to ensure that the 
benefits are provided only to qualified individuals (or their 
representative payees) in correct amounts.

``SEC. 807. REPRESENTATIVE PAYEES.

    ``(a) In General.--If the Commissioner of Social Security 
determines that the interest of any qualified individual under this 
title would be served thereby, payment of the qualified individual's 
benefit under this title may be made, regardless of the legal 
competency or incompetency of the qualified individual, either directly 
to the qualified individual, or for his or her benefit, to another 
person (the meaning of which term, for purposes of this section, 
includes an organization) with respect to whom the requirements of 
subsection (b) have been met (in this section referred to as the 
qualified individual's `representative payee'). If the Commissioner of 
Social Security determines that a representative payee has misused any 
benefit paid to the representative payee pursuant to this section, 
section 205(j), or section 1631(a)(2), the Commissioner of Social 
Security shall promptly revoke the person's designation as the 
qualified individual's representative payee under this subsection, and 
shall make payment to an alternative representative payee or, if the 
interest of the qualified individual under this title would be served 
thereby, to the qualified individual.
    ``(b) Examination of Fitness of Prospective Representative Payee.--
            ``(1) Any determination under subsection (a) to pay the 
        benefits of a qualified individual to a representative payee 
        shall be made on the basis of--
                    ``(A) an investigation by the Commissioner of 
                Social Security of the person to serve as 
                representative payee, which shall be conducted in 
                advance of the determination and shall, to the extent 
                practicable, include a face-to-face interview with the 
                person (or, in the case of an organization, a 
                representative of the organization); and
                    ``(B) adequate evidence that the arrangement is in 
                the interest of the qualified individual.
            ``(2) As part of the investigation referred to in paragraph 
        (1), the Commissioner of Social Security shall--
                    ``(A) require the person being investigated to 
                submit documented proof of the identity of the person;
                    ``(B) in the case of a person who has a social 
                security account number issued for purposes of the 
                program under title II or an employer identification 
                number issued for purposes of the Internal Revenue Code 
                of 1986, verify the number;
                    ``(C) determine whether the person has been 
                convicted of a violation of section 208, 811, or 1632; 
                and
                    ``(D) determine whether payment of benefits to the 
                person in the capacity as representative payee has been 
                revoked or terminated pursuant to this section, section 
                205(j), or section 1631(a)(2)(A)(iii) by reason of 
                misuse of funds paid as benefits under this title, 
                title II, or XVI, respectively.
    ``(c) Requirement for Maintaining Lists of Undesirable Payees.--The 
Commissioner of Social Security shall establish and maintain lists 
which shall be updated periodically and which shall be in a form that 
renders such lists available to the servicing offices of the Social 
Security Administration. The lists shall consist of--
            ``(1) the names and (if issued) social security account 
        numbers or employer identification numbers of all persons with 
        respect to whom, in the capacity of representative payee, the 
        payment of benefits has been revoked or terminated under this 
        section, section 205(j), or section 1631(a)(2)(A)(iii) by 
        reason of misuse of funds paid as benefits under this title, 
        title II, or XVI, respectively; and
            ``(2) the names and (if issued) social security account 
        numbers or employer identification numbers of all persons who 
        have been convicted of a violation of section 208, 811, or 
        1632.
    ``(d) Persons Ineligible To Serve as Representative Payees.--
            ``(1) In general.--The benefits of a qualified individual 
        may not be paid to any other person pursuant to this section 
        if--
                    ``(A) the person has been convicted of a violation 
                of section 208, 811, or 1632;
                    ``(B) except as provided in paragraph (2), payment 
                of benefits to the person in the capacity of 
                representative payee has been revoked or terminated 
                under this section, section 205(j), or section 
                1631(a)(2)(A)(ii) by reason of misuse of funds paid as 
                benefits under this title, title II, or title XVI, 
                respectively; or
                    ``(C) except as provided in paragraph (2)(B), the 
                person is a creditor of the qualified individual and 
                provides the qualified individual with goods or 
                services for consideration.
            ``(2) Exemptions.--
                    ``(A) The Commissioner of Social Security may 
                prescribe circumstances under which the Commissioner of 
                Social Security may grant an exemption from paragraph 
                (1) to any person on a case-by-case basis if the 
                exemption is in the best interest of the qualified 
                individual whose benefits would be paid to the person 
                pursuant to this section.
                    ``(B) Paragraph (1)(C) shall not apply with respect 
                to any person who is a creditor referred to in such 
                paragraph if the creditor is--
                            ``(i) a relative of the qualified 
                        individual and the relative resides in the same 
                        household as the qualified individual;
                            ``(ii) a legal guardian or legal 
                        representative of the individual;
                            ``(iii) a facility that is licensed or 
                        certified as a care facility under the law of 
                        the political jurisdiction in which the 
                        qualified individual resides;
                            ``(iv) a person who is an administrator, 
                        owner, or employee of a facility referred to in 
                        clause (iii), if the qualified individual 
                        resides in the facility, and the payment to the 
                        facility or the person is made only after the 
                        Commissioner of Social Security has made a good 
                        faith effort to locate an alternative 
                        representative payee to whom payment would 
                        serve the best interests of the qualified 
                        individual; or
                            ``(v) a person who is determined by the 
                        Commissioner of Social Security, on the basis 
                        of written findings and pursuant to procedures 
                        prescribed by the Commissioner of Social 
                        Security, to be acceptable to serve as a 
                        representative payee.
                    ``(C) The procedures referred to in subparagraph 
                (B)(v) shall require the person who will serve as 
                representative payee to establish, to the satisfaction 
                of the Commissioner of Social Security, that--
                            ``(i) the person poses no risk to the 
                        qualified individual;
                            ``(ii) the financial relationship of the 
                        person to the qualified individual poses no 
                        substantial conflict of interest; and
                            ``(iii) no other more suitable 
                        representative payee can be found.
    ``(e) Deferral of Payment Pending Appointment of Representative 
Payee.--
            ``(1) In general.--Subject to paragraph (2), if the 
        Commissioner of Social Security makes a determination described 
        in the first sentence of subsection (a) with respect to any 
        qualified individual's benefit and determines that direct 
        payment of the benefit to the qualified individual would cause 
        substantial harm to the qualified individual, the Commissioner 
        of Social Security may defer (in the case of initial 
        entitlement) or suspend (in the case of existing entitlement) 
        direct payment of the benefit to the qualified individual, 
        until such time as the selection of a representative payee is 
        made pursuant to this section.
            ``(2) Time limitation.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any deferral or suspension of direct 
                payment of a benefit pursuant to paragraph (1) shall be 
                for a period of not more than 1 month.
                    ``(B) Exception in the case of incompetency.--
                Subparagraph (A) shall not apply in any case in which 
                the qualified individual is, as of the date of the 
                Commissioner of Social Security's determination, 
                legally incompetent under the laws of the jurisdiction 
                in which the individual resides.
            ``(3) Payment of retroactive benefits.--Payment of any 
        benefits which are deferred or suspended pending the selection 
        of a representative payee shall be made to the qualified 
        individual or the representative payee as a single sum or over 
        such period of time as the Commissioner of Social Security 
        determines is in the best interest of the qualified individual.
    ``(f) Hearing.--Any qualified individual who is dissatisfied with a 
determination by the Commissioner of Social Security to make payment of 
the qualified individual's benefit to a representative payee under 
subsection (a) of this section or with the designation of a particular 
person to serve as representative payee shall be entitled to a hearing 
by the Commissioner of Social Security to the same extent as is 
provided in section 809(a), and to judicial review of the Commissioner 
of Social Security's final decision as is provided in section 809(b).
    ``(g) Notice Requirements.--
            ``(1) In general.--In advance, to the extent practicable, 
        of the payment of a qualified individual's benefit to a 
        representative payee under subsection (a), the Commissioner of 
        Social Security shall provide written notice of the 
        Commissioner's initial determination to so make the payment. 
        The notice shall be provided to the qualified individual, 
        except that, if the qualified individual is legally 
        incompetent, then the notice shall be provided solely to the 
        legal guardian or legal representative of the qualified 
        individual.
            ``(2) Specific requirements.--Any notice required by 
        paragraph (1) shall be clearly written in language that is 
        easily understandable to the reader, shall identify the person 
        to be designated as the qualified individual's representative 
        payee, and shall explain to the reader the right under 
        subsection (f) of the qualified individual or of the qualified 
        individual's legal guardian or legal representative--
                    ``(A) to appeal a determination that a 
                representative payee is necessary for the qualified 
                individual;
                    ``(B) to appeal the designation of a particular 
                person to serve as the representative payee of the 
                qualified individual; and
                    ``(C) to review the evidence upon which the 
                designation is based and to submit additional evidence.
    ``(h) Accountability Monitoring.--
            ``(1) In general.--In any case where payment under this 
        title is made to a person other than the qualified individual 
        entitled to the payment, the Commissioner of Social Security 
        shall establish a system of accountability monitoring under 
        which the person shall report not less often than annually with 
        respect to the use of the payments. The Commissioner of Social 
        Security shall establish and implement statistically valid 
        procedures for reviewing the reports in order to identify 
        instances in which persons are not properly using the payments.
            ``(2) Special reports.--Notwithstanding paragraph (1), the 
        Commissioner of Social Security may require a report at any 
        time from any person receiving payments on behalf of a 
        qualified individual, if the Commissioner of Social Security 
        has reason to believe that the person receiving the payments is 
        misusing the payments.
            ``(3) Maintaining lists of payees.--The Commissioner of 
        Social Security shall maintain lists which shall be updated 
        periodically of--
                    ``(A) the name, address, and (if issued) the social 
                security account number or employer identification 
                number of each representative payee who is receiving 
                benefit payments pursuant to this section, section 
                205(j), or section 1631(a)(2); and
                    ``(B) the name, address, and social security 
                account number of each individual for whom each 
                representative payee is reported to be providing 
                services as representative payee pursuant to this 
                section, section 205(j), or section 1631(a)(2).
            ``(4) Maintaining lists of agencies.--The Commissioner of 
        Social Security shall maintain lists, which shall be updated 
        periodically, of public agencies and community-based nonprofit 
        social service agencies which are qualified to serve as 
        representative payees pursuant to this section and which are 
        located in the jurisdiction in which any qualified individual 
        resides.
    ``(i) Restitution.--In any case where the negligent failure of the 
Commissioner of Social Security to investigate or monitor a 
representative payee results in misuse of benefits by the 
representative payee, the Commissioner of Social Security shall make 
payment to the qualified individual or the individual's alternative 
representative payee of an amount equal to the misused benefits. The 
Commissioner of Social Security shall make a good faith effort to 
obtain restitution from the terminated representative payee.

``SEC. 808. OVERPAYMENTS AND UNDERPAYMENTS.

    ``(a) In General.--Whenever the Commissioner of Social Security 
finds that more or less than the correct amount of payment has been 
made to any person under this title, proper adjustment or recovery 
shall be made, as follows:
            ``(1) With respect to payment to a person of more than the 
        correct amount, the Commissioner of Social Security shall 
        decrease any payment--
                    ``(A) under this title to which the overpaid person 
                (if a qualified individual) is entitled, or shall 
                require the overpaid person or his or her estate to 
                refund the amount in excess of the correct amount, or, 
                if recovery is not obtained under these 2 methods, 
                shall seek or pursue recovery by means of reduction in 
                tax refunds based on notice to the Secretary of the 
                Treasury, as authorized under section 3720A of title 
                31, United States Code; or
                    ``(B) under title II to recover the amount in 
                excess of the correct amount, if the person is not 
                currently eligible for payment under this title.
            ``(2) With respect to payment of less than the correct 
        amount to a qualified individual who, at the time the 
        Commissioner of Social Security is prepared to take action with 
        respect to the underpayment--
                    ``(A) is living, the Commissioner of Social 
                Security shall make payment to the qualified individual 
                (or the qualified individual's representative payee 
                designated under section 807) of the balance of the 
                amount due the underpaid qualified individual; or
                    ``(B) is deceased, the balance of the amount due 
                shall revert to the general fund of the Treasury.
    ``(b) No Effect on Title VIII Eligibility or Benefit Amount.--In 
any case in which the Commissioner of Social Security takes action in 
accordance with subsection (a)(1)(B) to recover an amount incorrectly 
paid to an individual, that individual shall not, as a result of such 
action--
            ``(1) become qualified for benefits under this title; or
            ``(2) if such individual is otherwise so qualified, become 
        qualified for increased benefits under this title.
    ``(c) Waiver of Recovery of Overpayment.--In any case in which more 
than the correct amount of payment has been made, there shall be no 
adjustment of payments to, or recovery by the United States from, any 
person who is without fault if the Commissioner of Social Security 
determines that the adjustment or recovery would defeat the purpose of 
this title or would be against equity and good conscience.
    ``(d) Limited Immunity for Disbursing Officers.--A disbursing 
officer may not be held liable for any amount paid by the officer if 
the adjustment or recovery of the amount is waived under subsection 
(b), or adjustment under subsection (a) is not completed before the 
death of the qualified individual against whose benefits deductions are 
authorized.
    ``(e) Authorized Collection Practices.--
            ``(1) In general.--With respect to any delinquent amount, 
        the Commissioner of Social Security may use the collection 
        practices described in sections 3711(e), 3716, and 3718 of 
        title 31, United States Code, as in effect on October 1, 1994.
            ``(2) Definition.--For purposes of paragraph (1), the term 
        `delinquent amount' means an amount--
                    ``(A) in excess of the correct amount of the 
                payment under this title; and
                    ``(B) determined by the Commissioner of Social 
                Security to be otherwise unrecoverable under this 
                section from a person who is not a qualified individual 
                under this title.

``SEC. 809. HEARINGS AND REVIEW.

    ``(a) Hearings.--
            ``(1) In general.--The Commissioner of Social Security 
        shall make findings of fact and decisions as to the rights of 
        any individual applying for payment under this title. The 
        Commissioner of Social Security shall provide reasonable notice 
        and opportunity for a hearing to any individual who is or 
        claims to be a qualified individual and is in disagreement with 
        any determination under this title with respect to entitlement 
        to, or the amount of, benefits under this title, if the 
        individual requests a hearing on the matter in disagreement 
        within 60 days after notice of the determination is received, 
        and, if a hearing is held, shall, on the basis of evidence 
        adduced at the hearing affirm, modify, or reverse the 
        Commissioner of Social Security's findings of fact and the 
        decision. The Commissioner of Social Security may, on the 
        Commissioner of Social Security's own motion, hold such 
        hearings and conduct such investigations and other proceedings 
        as the Commissioner of Social Security deems necessary or 
        proper for the administration of this title. In the course of 
        any hearing, investigation, or other proceeding, the 
        Commissioner may administer oaths and affirmations, examine 
        witnesses, and receive evidence. Evidence may be received at 
        any hearing before the Commissioner of Social Security even 
        though inadmissible under the rules of evidence applicable to 
        court procedure. The Commissioner of Social Security shall 
        specifically take into account any physical, mental, 
        educational, or linguistic limitation of the individual 
        (including any lack of facility with the English language) in 
        determining, with respect to the entitlement of the individual 
        for benefits under this title, whether the individual acted in 
        good faith or was at fault, and in determining fraud, 
        deception, or intent.
            ``(2) Effect of failure to timely request review.--A 
        failure to timely request review of an initial adverse 
        determination with respect to an application for any payment 
        under this title or an adverse determination on reconsideration 
        of such an initial determination shall not serve as a basis for 
        denial of a subsequent application for any payment under this 
        title if the applicant demonstrates that the applicant failed 
        to so request such a review acting in good faith reliance upon 
        incorrect, incomplete, or misleading information, relating to 
        the consequences of reapplying for payments in lieu of seeking 
        review of an adverse determination, provided by any officer or 
        employee of the Social Security Administration.
            ``(3) Notice requirements.--In any notice of an adverse 
        determination with respect to which a review may be requested 
        under paragraph (1), the Commissioner of Social Security shall 
        describe in clear and specific language the effect on possible 
        entitlement to benefits under this title of choosing to reapply 
        in lieu of requesting review of the determination.
    ``(b) Judicial Review.--The final determination of the Commissioner 
of Social Security after a hearing under subsection (a)(1) shall be 
subject to judicial review as provided in section 205(g) to the same 
extent as the Commissioner of Social Security's final determinations 
under section 205.

``SEC. 810. OTHER ADMINISTRATIVE PROVISIONS.

    ``(a) Regulations and Administrative Arrangements.--The 
Commissioner of Social Security may prescribe such regulations, and 
make such administrative and other arrangements, as may be necessary or 
appropriate to carry out this title.
    ``(b) Payment of Benefits.--Benefits under this title shall be paid 
at such time or times and in such installments as the Commissioner of 
Social Security determines are in the interests of economy and 
efficiency.
    ``(c) Entitlement Redeterminations.--An individual's entitlement to 
benefits under this title, and the amount of the benefits, may be 
redetermined at such time or times as the Commissioner of Social 
Security determines to be appropriate.
    ``(d) Suspension and Termination of Benefits.--Regulations 
prescribed by the Commissioner of Social Security under subsection (a) 
may provide for the suspension and termination of entitlement to 
benefits under this title as the Commissioner determines is 
appropriate.

``SEC. 811. PENALTIES FOR FRAUD.

    ``(a) In General.--Whoever--
            ``(1) knowingly and willfully makes or causes to be made 
        any false statement or representation of a material fact in an 
        application for benefits under this title;
            ``(2) at any time knowingly and willfully makes or causes 
        to be made any false statement or representation of a material 
        fact for use in determining any right to the benefits;
            ``(3) having knowledge of the occurrence of any event 
        affecting--
                    ``(A) his or her initial or continued right to the 
                benefits; or
                    ``(B) the initial or continued right to the 
                benefits of any other individual in whose behalf he or 
                she has applied for or is receiving the benefit,
        conceals or fails to disclose the event with an intent 
        fraudulently to secure the benefit either in a greater amount 
        or quantity than is due or when no such benefit is authorized; 
        or
            ``(4) having made application to receive any such benefit 
        for the use and benefit of another and having received it, 
        knowingly and willfully converts the benefit or any part 
        thereof to a use other than for the use and benefit of the 
        other individual,
shall be fined under title 18, United States Code, imprisoned not more 
than 5 years, or both.
    ``(b) Restitution by Representative Payee.--If a person or 
organization violates subsection (a) in the person's or organization's 
role as, or in applying to become, a representative payee under section 
807 on behalf of a qualified individual, and the violation includes a 
willful misuse of funds by the person or entity, the court may also 
require that full or partial restitution of funds be made to the 
qualified individual.

``SEC. 812. DEFINITIONS.

    ``In this title:
            ``(1) World war ii veteran.--The term `World War II 
        veteran' means a person who--
                    ``(A) served during World War II--
                            ``(i) in the active military, naval, or air 
                        service of the United States during World War 
                        II; or
                            ``(ii) in the organized military forces of 
                        the Government of the Commonwealth of the 
                        Philippines, while the forces were in the 
                        service of the Armed Forces of the United 
                        States pursuant to the military order of the 
                        President dated July 26, 1941, including among 
                        the military forces organized guerrilla forces 
                        under commanders appointed, designated, or 
                        subsequently recognized by the Commander in 
                        Chief, Southwest Pacific Area, or other 
                        competent authority in the Army of the United 
                        States, in any case in which the service was 
                        rendered before December 31, 1946; and
                    ``(B) was discharged or released therefrom under 
                conditions other than dishonorable--
                            ``(i) after service of 90 days or more; or
                            ``(ii) because of a disability or injury 
                        incurred or aggravated in the line of active 
                        duty.
            ``(2) World war ii.--The term `World War II' means the 
        period beginning on September 16, 1940, and ending on July 24, 
        1947.
            ``(3) Supplemental security income benefit under title 
        xvi.--The term `supplemental security income benefit under 
        title XVI', except as otherwise provided, includes State 
        supplementary payments which are paid by the Commissioner of 
        Social Security pursuant to an agreement under section 1616(a) 
        of this Act or section 212(b) of Public Law 93-66.
            ``(4) Federal benefit rate under title xvi.--The term 
        `Federal benefit rate under title XVI' means, with respect to 
        any month, the amount of the supplemental security income cash 
        benefit (not including any State supplementary payment which is 
        paid by the Commissioner of Social Security pursuant to an 
        agreement under section 1616(a) of this Act or section 212(b) 
        of Public Law 93-66) payable under title XVI for the month to 
        an eligible individual with no income.
            ``(5) United states.--The term `United States' means, 
        notwithstanding section 1101(a)(1), only the 50 States, the 
        District of Columbia, and the Commonwealth of the Northern 
        Mariana Islands.
            ``(6) Benefit income.--The term `benefit income' means any 
        recurring payment received by a qualified individual as an 
        annuity, pension, retirement, or disability benefit (including 
        any veterans' compensation or pension, workmen's compensation 
        payment, old-age, survivors, or disability insurance benefit, 
        railroad retirement annuity or pension, and unemployment 
        insurance benefit), but only if a similar payment was received 
        by the individual from the same (or a related) source during 
        the 12-month period preceding the month in which the individual 
        files an application for benefits under this title.

``SEC. 813. APPROPRIATIONS.

    ``There are hereby appropriated for fiscal year 2000 and subsequent 
fiscal years, out of any funds in the Treasury not otherwise 
appropriated, such sums as may be necessary to carry out this title.''.
    (b) Conforming Amendments.--
            (1) Social security trust funds lae account.--Section 
        201(g) of such Act (42 U.S.C. 401(g)) is amended--
                    (A) in the fourth sentence of paragraph (1)(A), by 
                inserting after ``this title,'' the following: ``title 
                VIII,'';
                    (B) in paragraph (1)(B)(i)(I), by inserting after 
                ``this title,'' the following: ``title VIII,''; and
                    (C) in paragraph (1)(C)(i), by inserting after 
                ``this title,'' the following: ``title VIII,''.
            (2) Representative payee provisions of title ii.--Section 
        205(j) of such Act (42 U.S.C. 405(j)) is amended--
                    (A) in paragraph (1)(A), by inserting ``807 or'' 
                before ``1631(a)(2)'';
                    (B) in paragraph (2)(B)(i)(I), by inserting ``, 
                title VIII,'' before ``or title XVI'';
                    (C) in paragraph (2)(B)(i)(III), by inserting ``, 
                811,'' before ``or 1632'';
                    (D) in paragraph (2)(B)(i)(IV)--
                            (i) by inserting ``, the designation of 
                        such person as a representative payee has been 
                        revoked pursuant to section 807(a),'' before 
                        ``or payment of benefits''; and
                            (ii) by inserting ``, title VIII,'' before 
                        ``or title XVI'';
                    (E) in paragraph (2)(B)(ii)(I)--
                            (i) by inserting ``whose designation as a 
                        representative payee has been revoked pursuant 
                        to section 807(a),'' before ``or with respect 
                        to whom''; and
                            (ii) by inserting ``, title VIII,'' before 
                        ``or title XVI'';
                    (F) in paragraph (2)(B)(ii)(II), by inserting ``, 
                811,'' before ``or 1632'';
                    (G) in paragraph (2)(C)(i)(II), by inserting ``, 
                the designation of such person as a representative 
                payee has been revoked pursuant to section 807(a),'' 
                before ``or payment of benefits'';
                    (H) in each of clauses (i) and (ii) of paragraph 
                (3)(E), by inserting ``, section 807,'' before ``or 
                section 1631(a)(2)'';
                    (I) in paragraph (3)(F), by inserting ``807 or'' 
                before ``1631(a)(2)''; and
                    (J) in paragraph (4)(B)(i), by inserting ``807 or'' 
                before ``1631(a)(2)''.
            (3) Withholding for child support and alimony 
        obligations.--Section 459(h)(1)(A) of such Act (42 U.S.C. 
        659(h)(1)(A)) is amended--
                    (A) at the end of clause (iii), by striking 
                ``and'';
                    (B) at the end of clause (iv), by striking ``but'' 
                and inserting ``and''; and
                    (C) by adding at the end a new clause as follows:
                            ``(v) special benefits for certain World 
                        War II veterans payable under title VIII; 
                        but''.
            (4) Social security advisory board.--Section 703(b) of such 
        Act (42 U.S.C. 903(b)) is amended by striking ``title II'' and 
        inserting ``title II, the program of special benefits for 
        certain World War II veterans under title VIII,''.
            (5) Delivery of checks.--Section 708 of such Act (42 U.S.C. 
        908) is amended--
                    (A) in subsection (a), by striking ``title II'' and 
                inserting ``title II, title VIII,''; and
                    (B) in subsection (b), by striking ``title II'' and 
                inserting ``title II, title VIII,''.
            (6) Civil monetary penalties.--Section 1129 of such Act (42 
        U.S.C. 1320a-8) is amended--
                    (A) in the title, by striking ``II'' and inserting 
                ``II, VIII'';
                    (B) in subsection (a)(1)--
                            (i) by striking ``or'' at the end of 
                        subparagraph (A);
                            (ii) by redesignating subparagraph (B) as 
                        subparagraph (C); and
                            (iii) by inserting after subparagraph (A) 
                        the following new subparagraph:
                    ``(B) benefits or payments under title VIII, or'';
                    (C) in subsection (a)(2), by inserting ``or title 
                VIII,'' after ``title II'';
                    (D) in subsection (e)(1)(C)--
                            (i) by striking ``or'' at the end of clause 
                        (i);
                            (ii) by redesignating clause (ii) as clause 
                        (iii); and
                            (iii) by inserting after clause (i) the 
                        following new clause:
                            ``(ii) by decrease of any payment under 
                        title VIII to which the person is entitled, 
                        or'';
                    (E) in subsection (e)(2)(B), by striking ``title 
                XVI'' and inserting ``title VIII or XVI''; and
                    (F) in subsection (l), by striking ``title XVI'' 
                and inserting ``title VIII or XVI''.
            (7) Recovery of ssi overpayments.--Section 1147 of such Act 
        (42 U.S.C. 1320b-17) is amended--
                    (A) in subsection (a)(1)--
                            (i) by inserting ``or VIII'' after ``title 
                        II'' the first place it appears; and
                            (ii) by striking ``title II'' the second 
                        place it appears and inserting ``such title''; 
                        and
                    (B) in the heading, by striking ``social security'' 
                and inserting ``other''.
            (8) Recovery of social security overpayments.--Part A of 
        title XI of the Social Security Act is amended by inserting 
        after section 1147 (42 U.S.C. 1320b-17) the following new 
        section:

  ``recovery of social security benefit overpayments from title viii 
                                benefits

    ``Sec. 1147A. Whenever the Commissioner of Social Security 
determines that more than the correct amount of any payment has been 
made under title II to an individual who is not currently receiving 
benefits under that title but who is receiving benefits under title 
VIII, the Commissioner may recover the amount incorrectly paid under 
title II by decreasing any amount which is payable to the individual 
under title VIII.''.
            (9) Representative payee provisions of title xvi.--Section 
        1631(a)(2) of such Act (42 U.S.C. 1383(a)(2)) is amended--
                    (A) in subparagraph (A)(iii), by inserting ``or 
                807'' after ``205(j)(1)'';
                    (B) in subparagraph (B)(ii)(I), by inserting ``, 
                title VIII,'' before ``or this title'';
                    (C) in subparagraph (B)(ii)(III), by inserting ``, 
                811,'' before ``or 1632'';
                    (D) in subparagraph (B)(ii)(IV)--
                            (i) by inserting ``whether the designation 
                        of such person as a representative payee has 
                        been revoked pursuant to section 807(a),'' 
                        before ``and whether certification''; and
                            (ii) by inserting ``, title VIII,'' before 
                        ``or this title'';
                    (E) in subparagraph (B)(iii)(II), by inserting 
                ``the designation of such person as a representative 
                payee has been revoked pursuant to section 807(a),'' 
                before ``or certification''; and
                    (F) in subparagraph (D)(ii)(II)(aa), by inserting 
                ``or 807'' after ``205(j)(4)''.
            (10) Administrative offset.--Section 3716(c)(3)(C) of title 
        31, United States Code, is amended--
                    (A) by striking ``sections 205(b)(1)'' and 
                inserting ``sections 205(b)(1), 809(a)(1),''; and
                    (B) by striking ``either title II'' and inserting 
                ``title II, VIII,''.

                           Subtitle C--Study

SEC. 261. STUDY OF DENIAL OF SSI BENEFITS FOR FAMILY FARMERS.

    (a) In General.--The Commissioner of Social Security shall conduct 
a study of the reasons why family farmers with resources of less than 
$100,000 are denied supplemental security income benefits under title 
XVI of the Social Security Act, including whether the deeming process 
unduly burdens and discriminates against family farmers who do not 
institutionalize a disabled dependent, and shall determine the number 
of such farmers who have been denied such benefits during each of the 
preceding 10 years.
    (b) Report to the Congress.--Within 1 year after the date of the 
enactment of this Act, the Commissioner of Social Security shall 
prepare and submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a report 
that contains the results of the study, and the determination, required 
by subsection (a).

                        TITLE III--CHILD SUPPORT

SEC. 301. NARROWING OF HOLD HARMLESS PROVISION FOR STATE SHARE OF 
              DISTRIBUTION OF COLLECTED CHILD SUPPORT.

    (a) In General.--Section 457(d) of the Social Security Act (42 
U.S.C. 657(d)) is amended to read as follows:
    ``(d) Hold Harmless Provision.--If--
            ``(1) the State share of amounts collected in the fiscal 
        year which could be retained to reimburse the State for amounts 
        paid to families as assistance by the State is less than the 
        State share of such amounts collected in fiscal year 1995 
        (determined in accordance with section 457 as in effect on 
        August 21, 1996); and
            ``(2)(A) the State has distributed to families that include 
        an adult receiving assistance under the program under part A at 
        least 80 percent of the current support payments collected 
        during the preceding fiscal year on behalf of such families, 
        and the amounts distributed were disregarded in determining the 
        amount or type of assistance provided under the program under 
        part A; or
            ``(B) the State has distributed to families that formerly 
        received assistance under the program under part A the State 
        share of the amounts collected pursuant to section 464 that 
        could have been retained as reimbursement for assistance paid 
        to such families,
then the State share otherwise determined for the fiscal year shall be 
increased by an amount equal to \1/2\ of the amount (if any) by which 
the State share for fiscal year 1995 exceeds the State share for the 
fiscal year (determined without regard to this subsection).''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective with respect to calendar quarters occurring during the period 
that begins on October 1, 1998, and ends on September 30, 2001.
    (c) Repeal.--Effective October 1, 2001, section 457 of the Social 
Security Act (42 U.S.C. 657) is amended--
            (1) in subsection (a), by striking ``subsections (e) and 
        (f)'' and inserting ``subsections (d) and (e)'';
            (2) by striking subsection (d);
            (3) in subsection (e), by striking the second sentence; and
            (4) by redesignating subsections (e) and (f) as subsections 
        (d) and (e), respectively.

                    TITLE IV--TECHNICAL CORRECTIONS

SEC. 401. TECHNICAL CORRECTIONS RELATING TO AMENDMENTS MADE BY THE 
              PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY 
              RECONCILIATION ACT OF 1996.

    (a) Section 402(a)(1)(B)(iv) of the Social Security Act (42 U.S.C. 
602(a)(1)(B)(iv)) is amended by striking ``Act'' and inserting 
``section''.
    (b) Section 409(a)(7)(B)(i)(II) of the Social Security Act (42 
U.S.C. 609(a)(7)(B)(i)(II)) is amended by striking ``part'' and 
inserting ``section''.
    (c) Section 413(g)(1) of the Social Security Act (42 U.S.C. 
613(g)(1)) is amended by striking ``Act'' and inserting ``section''.
    (d) Section 416 of the Social Security Act (42 U.S.C. 616) is 
amended by striking ``Opportunity Act'' and inserting ``Opportunity 
Reconciliation Act'' each place such term appears.
    (e) Section 431(a)(6) of the Social Security Act (42 U.S.C. 
629a(a)(6))) is amended--
            (1) by inserting ``, as in effect before August 22, 1986'' 
        after ``482(i)(5)''; and
            (2) by inserting ``, as so in effect'' after 
        ``482(i)(7)(A)''.
    (f) Sections 452(a)(7) and 466(c)(2)(A)(i) of the Social Security 
Act (42 U.S.C. 652(a)(7) and 666(c)(2)(A)(i)) are each amended by 
striking ``Social Security'' and inserting ``social security''.
    (g) Section 454 of the Social Security Act (42 U.S.C. 654) is 
amended--
            (1) by striking ``, or'' at the end of each of paragraphs 
        (6)(E)(i) and (19)(B)(i) and inserting ``; or'';
            (2) in paragraph (9), by striking the comma at the end of 
        each of subparagraphs (A), (B), and (C) and inserting a 
        semicolon; and
            (3) by striking ``, and'' at the end of each of paragraphs 
        (19)(A) and (24)(A) and inserting ``; and''.
    (h) Section 454(24)(B) of the Social Security Act (42 U.S.C. 
654(24)(B)) is amended by striking ``Opportunity Act'' and inserting 
``Opportunity Reconciliation Act''.
    (i) Section 344(b)(1)(A) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
2236) is amended to read as follows:
                    ``(A) in paragraph (1), by striking subparagraph 
                (B) and inserting the following:
                    `(B) equal to the percent specified in paragraph 
                (3) of the sums expended during such quarter that are 
                attributable to the planning, design, development, 
                installation or enhancement of an automatic data 
                processing and information retrieval system (including 
                in such sums the full cost of the hardware components 
                of such system); and'; and''.
    (j) Section 457(a)(2)(B)(i)(I) of the Social Security Act (42 
U.S.C. 657(a)(2)(B)(i)(I)) is amended by striking ``Act 
Reconciliation'' and inserting ``Reconciliation Act''.
    (k) Section 457 of the Social Security Act (42 U.S.C. 657) is 
amended by striking ``Opportunity Act'' each place it appears and 
inserting ``Opportunity Reconciliation Act''.
    (l) Effective on the date of the enactment of this Act, section 
404(e) of the Social Security Act (42 U.S.C. 604(e)) is amended by 
inserting ``or tribe'' after ``State'' the first and second places it 
appears, and by inserting ``or tribal'' after ``State'' the third place 
it appears.
    (m) Section 466(a)(7)(A) of the Social Security Act (42 U.S.C. 
666(a)(7)(A)) is amended by striking ``1681a(f))'' and inserting 
``1681a(f)))''.
    (n) Section 466(b)(6)(A) of the Social Security Act (42 U.S.C. 
666(b)(6)(A)) is amended by striking ``state'' and inserting ``State''.
    (o) Section 471(a)(8) of the Social Security Act (42 U.S.C. 
671(a)(8)) is amended by striking ``(including activities under part 
F)''.
    (p) Section 1137(a)(3) of the Social Security Act (42 U.S.C. 1320b-
7(a)(3)) is amended by striking ``453A(a)(2)(B)(iii))'' and inserting 
``453A(a)(2)(B)(ii)))''.
    (q) Except as provided in subsection (l), the amendments made by 
this section shall take effect as if included in the enactment of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(Public Law 104-193; 110 Stat. 2105).

            Attest:

                                                             Secretary.
106th CONGRESS

  1st Session

                               H. R. 1802

_______________________________________________________________________

                               AMENDMENT

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