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ment of overpayments comprised of payments de-
scribed in clause (i) of this subparagraph and which
is in compliance with section 1631(b).
‘‘(ii) The Commissioner of Social Security shall, in
addition to any other relevant factors, take into account
any mental or linguistic limitations of a person (including
any lack of facility with the English language) in deter-
mining whether the person has knowingly failed to comply
with a requirement of subclause (I) or (II) of clause (i).’’.
(c) CONTINUED COLLECTION EFFORTS AGAINST
PRISONERS.—
(1) AMENDMENT TO TITLE II.—Section 204(b)
of such Act (42 U.S.C. 404(b)), as amended by sub-
section (a)(1) of this section, is amended further by
adding at the end the following new paragraph:
‘‘(3) The Commissioner shall not refrain from recov-
ering overpayments from resources currently available to
any overpaid person or to such person’s estate solely be-
cause such individual is confined as described in clause
(i) or (ii) of section 202(x)(1)(A).’’.
(2) AMENDMENT
TO
TITLE
XVI.—Section
1631(b)(1)(A) 
of 
such 
Act 
(42 
U.S.C.
1383(b)(1)(A)) is amended by adding after and
below clause (ii) the following flush left sentence:
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‘‘The Commissioner shall not refrain from recovering over-
payments from resources currently available to any indi-
vidual solely because the individual is confined as de-
scribed in clause (i) or (ii) of section 202(x)(1)(A).’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to overpayments made in, and to
benefits payable for, months beginning 24 months or more
after the date of the enactment of this Act.
SEC. 206. 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 add-
ing 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 trans-
ferred 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 individ-
ual’s spouse) and the assets of any other person, this sub-
section shall apply to the portion of the trust attributable
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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 estab-
lished;
‘‘(ii) whether the trustees have or exercise any
discretion under the trust;
‘‘(iii) any restrictions on when or whether dis-
tributions 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 consid-
ered 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 indi-
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vidual if the Commissioner determines that such applica-
tion 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 de-
scribed in subparagraph (A) or (C) of section 1917(d)(4).
‘‘(6) For purposes of this subsection—
‘‘(A) the term ‘trust’ includes any legal instru-
ment 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 re-
source 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
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‘‘(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 subpara-
graph (E);
(2) by striking the period at the end of sub-
paragraph (F) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(G) any earnings of, and additions to, the cor-
pus of a trust established by an individual (within
the meaning of section 1613(e)), of which the indi-
vidual is a beneficiary, to which section 1613(e) ap-
plies, and, in the case of an irrevocable trust, with
respect to which circumstances exist under which a
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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 subpara-
graph (E);
(2) by adding ‘‘and’’ at the end of subpara-
graph (F); and
(3) by inserting after subparagraph (F) the fol-
lowing:
‘‘(G) that, in applying eligibility criteria of
the supplemental security income program
under title XVI for purposes of determining eli-
gibility for medical assistance under the State
plan of an individual who is not receiving sup-
plemental security income, the State will dis-
regard 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. 207. DISPOSAL OF RESOURCES FOR LESS THAN FAIR
MARKET VALUE UNDER THE SSI PROGRAM.
(a) IN GENERAL.—Section 1613(c) of the Social Se-
curity Act (42 U.S.C. 1382b(c)) is amended—
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(1) in the caption, by striking ‘‘Notification of
Medicaid Policy Restricting Eligibility of Institu-
tionalized 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
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(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 re-
designated by paragraph (4) of this subsection) the
following:
‘‘(c)(1)(A)(i) If an individual or the spouse of an indi-
vidual 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 cal-
culated as provided in clause (iv).
‘‘(ii)(I) The look-back date described in this sub-
clause is a date that is 36 months before the date de-
scribed 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
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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 ben-
efit payable under section 1611(b), plus the amount
(if any) of the maximum State supplementary pay-
ment corresponding to the State’s payment level ap-
plicable 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 sub-
section 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 pursu-
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ant 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 indi-
vidual 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 de-
scribed in clause (I) or the foreclosure of payment de-
scribed in clause (II) shall be considered a transfer of re-
sources 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 para-
graph 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—
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‘‘(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 indi-
vidual; 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 institu-
tionalized individual, and who provided care to
the transferor which permitted the transferor to
reside at home rather than in such an institu-
tion 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 trans-
feror’s spouse to another for the sole benefit of
the transferor’s spouse;
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‘‘(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 (includ-
ing a trust described in section 1917(d)(4)) es-
tablished 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 re-
sources intended to dispose of the resources ei-
ther at fair market value, or for other valuable
consideration;
‘‘(II) the resources were transferred exclu-
sively 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
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‘‘(iv) the Commissioner determines, under pro-
cedures 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 por-
tion 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 re-
source.
‘‘(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 be-
comes 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;
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‘‘(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 206(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. 208. 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 in-
serting 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 ma-
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terial 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 mis-
leading or knows or should know omits a material fact
or 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 sub-
section (b) to be imposed by the Commissioner of Social
Security.
‘‘(b) PENALTY.—The penalty described in this sub-
section 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 en-
gaged in conduct described in subsection (a), shall be—
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‘‘(1) six consecutive months, in the case of a
first such determination with respect to the person;
‘‘(2) twelve consecutive months, in the case of
a second such determination with respect to the per-
son; and
‘‘(3) twenty-four consecutive months, in the
case of a 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 per-
son 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.
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‘‘(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 DE-
LAYED RETIREMENT CREDIT FOR ANY MONTH TO WHICH
A NONPAYMENT OF BENEFITS PENALTY APPLIES.—Sec-
tion 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.—Sec-
tion 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
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Security shall develop regulations that prescribe the ad-
ministrative process for making determinations under sec-
tion 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. 209. EXCLUSION OF REPRESENTATIVES AND HEALTH
CARE PROVIDERS CONVICTED OF VIOLA-
TIONS FROM PARTICIPATION IN SOCIAL SE-
CURITY PROGRAMS.
(a) IN GENERAL.—Part A of title XI of the Social
Security Act (42 U.S.C. 1301–1320b–17) is amended by
adding at the end the following:
‘‘EXCLUSION OF REPRESENTATIVES AND HEALTH CARE
PROVIDERS CONVICTED OF VIOLATIONS FROM PAR-
TICIPATION IN SOCIAL SECURITY PROGRAMS
‘‘SEC. 1148. (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;
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‘‘(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 rea-
sonable notice to the public and to the individual excluded
as may be specified in regulations consistent with para-
graph (2).
‘‘(2) Such an exclusion shall be effective with respect
to services furnished to any individual on or after the ef-
fective 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.
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‘‘(3)(A) The Commissioner shall specify, in the notice
of exclusion under paragraph (1), the period of the exclu-
sion.
‘‘(B) Subject to subparagraph (C), in the case of an
exclusion under subsection (a), the minimum period of ex-
clusion 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 determina-
tion 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 of-
fenses 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 ef-
fected under such subsection, the period of the ex-
clusion shall be permanent.
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‘‘(c) NOTICE TO STATE AGENCIES.—The Commis-
sioner shall promptly notify each appropriate State agency
employed for the purpose of making disability determina-
tions under section 221 or 1633(a)—
‘‘(1) of the fact and circumstances of each ex-
clusion effected against an individual under this sec-
tion; and
‘‘(2) of the period (described in subsection
(b)(3)) for which the State agency is directed to ex-
clude the individual from participation in the activi-
ties of the State agency in the course of its employ-
ment.
‘‘(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 ex-
cluded 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 ap-
plicable 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
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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 ex-
cluded) 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 Commis-
sioner’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 EXCLU-
SION.—(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 exclu-
sion effected under this section.
‘‘(2) The Commissioner may terminate the exclusion
if the Commissioner determines, on the basis of the con-
duct of the applicant which occurred after the date of the
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notice of exclusion or which was unknown to the Commis-
sioner 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 origi-
nal exclusion have not recurred and will not recur.
‘‘(3) The Commissioner shall promptly notify each
State agency employed for the purpose of making dis-
ability 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 ef-
fect of limiting access by any applicant or beneficiary
under title II or XVI, any State agency acting under sec-
tion 221 or 1633(a), or the Commissioner to records main-
tained by any representative or health care provider in
connection with services provided to the applicant or bene-
ficiary prior to the exclusion of such representative or
health care provider under this section.
‘‘(h) REPORTING REQUIREMENT.—Any representa-
tive or health care provider participating in, or seeking
to participate in, a social security program shall inform
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the Commissioner, in such form and manner as the Com-
missioner shall prescribe by regulation, whether such rep-
resentative or health care provider has been convicted of
a violation described in subsection (a).
‘‘(i) DELEGATION
OF AUTHORITY.—The Commis-
sioner may delegate authority granted by this section to
the Inspector General.
‘‘(j) DEFINITIONS.—For purposes of this section:
‘‘(1) EXCLUDE.—The term ‘exclude’ from par-
ticipation 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
1631(a)(2)(A)(ii), or otherwise as a representa-
tive, in any hearing or other proceeding relating
to entitlement to benefits; and
‘‘(B) in connection with a health care pro-
vider, to prohibit from providing items or serv-
ices 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 pro-
viding for monthly insurance benefits under title II,
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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 Fed-
eral, State, or local court, except if the judg-
ment of conviction has been set aside or ex-
punged;
‘‘(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 adju-
dication, or other arrangement or program
where judgment of conviction has been with-
held.’’.
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(b) EFFECTIVE DATE.—The amendment made by
this section shall apply with respect to convictions of viola-
tions described in paragraphs (1) and (2) of section
1148(a) of the Social Security Act and determinations de-
scribed in paragraph (3) of such section occurring on or
after the date of the enactment of this Act.
SEC. 210. STATE DATA EXCHANGES.
Whenever the Commissioner of Social Security re-
quests 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 Commis-
sioner 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 stand-
ards of the State that would otherwise apply to the disclo-
sure of information by the State to the Commissioner.
SEC. 211. 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 Se-
curity, in consultation with the Inspector General of the
Social Security Administration and the Attorney General,
shall conduct a study of possible measures to improve—
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(1) prevention of fraud on the part of individ-
uals 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 sub-
mit 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 ad-
ministrative changes as the Commissioner considers ap-
propriate.
SEC. 212. 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 sub-
paragraph:
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‘‘(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 pre-
pared for fiscal years after fiscal year 1999.
SEC. 213. COMPUTER MATCHES WITH MEDICARE AND MED-
ICAID INSTITUTIONALIZATION DATA.
(a) IN GENERAL.—Section 1611(e)(1) of the Social
Security Act (42 U.S.C. 1382(e)(1)), as amended by sec-
tion 205(b)(2) of this Act, is further amended by adding
at the end the following:
‘‘(K) 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 Commis-
sioner and the Secretary shall mutually agree, such infor-
mation as the Commissioner may request for this purpose.
Information obtained pursuant to such a match may be
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substituted for the physician’s certification otherwise re-
quired 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 (K)’’.
SEC. 214. 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 re-
quire each applicant for, or recipient of, benefits under
this title to provide authorization by the applicant or re-
cipient (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 Commis-
sioner to obtain (subject to the cost reimbursement re-
quirements 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
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such Act, and need not be furnished to the financial insti-
tution, 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 Fi-
nancial 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 dura-
tion 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 author-
ization made by the applicant or recipient for the Commis-
sioner of Social Security to obtain from any financial insti-
tution any financial record, the Commissioner may, on
that basis, determine that the applicant or recipient is in-
eligible for benefits under this title.’’.
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Subtitle B—Special Benefits For
Certain World War II Veterans
SEC. 251. ESTABLISHMENT OF PROGRAM OF SPECIAL BEN-
EFITS FOR CERTAIN WORLD WAR II VET-
ERANS.
(a) IN GENERAL.—The Social Security Act is amend-
ed by inserting after title VII the following:
‘‘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.
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‘‘SEC. 802. QUALIFIED INDIVIDUALS.
‘‘Except as otherwise provided in this title, an
individual—
‘‘(1) who has attained the age of 65 on or be-
fore 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 en-
acted; 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.
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‘‘SEC. 804. DISQUALIFICATIONS.
‘‘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 re-
moved from the United States pursuant to section
237(a) of the Immigration and Nationality Act and
before the month in which the Commissioner of So-
cial Security is notified by the Attorney General that
the individual is lawfully admitted to the United
States for permanent residence;
‘‘(2) during any part of which the individual is
outside the United States due to flight to avoid pros-
ecution, or custody or confinement after conviction,
under the laws of the United States or the jurisdic-
tion 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 mis-
demeanor under the laws of such State;
‘‘(3) during any part of which which the indi-
vidual violates a condition of probation or parole im-
posed under Federal or State law; or
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‘‘(4) during any part of which the individual is
confined in a jail, prison, or other penal institution
or correctional facility pursuant to a conviction of an
offense.
‘‘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 individ-
ual’s benefit income for the month.
‘‘SEC. 806. APPLICATIONS AND FURNISHING OF INFORMA-
TION.
‘‘(a) IN GENERAL.—The Commissioner of Social Se-
curity shall, subject to subsection (b), prescribe such re-
quirements with respect to the filing of applications, the
furnishing of information and other material, and the re-
porting of events and changes in circumstances, as may
be necessary for the effective and efficient administration
of this title.
‘‘(b) VERIFICATION REQUIREMENT.—The require-
ments 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
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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 pay-
ees) in correct amounts.
‘‘SEC. 807. REPRESENTATIVE PAYEES.
‘‘(a) IN GENERAL.—If the Commissioner of Social
Security determines that the interest of any qualified indi-
vidual 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 incom-
petency 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 ’representa-
tive payee’). If the Commissioner of Social Security deter-
mines 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 des-
ignation as the qualified individual’s representative payee
under this subsection, and shall make payment to an alter-
native representative payee or, if the interest of the quali-
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fied 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 rep-
resentative payee shall be made on the basis of—
‘‘(A) an investigation by the Commissioner
of Social Security of the person to serve as rep-
resentative payee, which shall be conducted in
advance of the determination and shall, to the
extent practicable, include a face-to-face inter-
view with the person (or, in the case of an orga-
nization, a representative of the organization);
and
‘‘(B) adequate evidence that the arrange-
ment is in the interest of the qualified indi-
vidual.
‘‘(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;
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‘‘(B) in the case of a person who has a so-
cial security account number issued for pur-
poses of the program under title II or an em-
ployer 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 bene-
fits to the person in the capacity as representa-
tive payee has been revoked or terminated pur-
suant 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 title
XVI, respectively.
‘‘(c) REQUIREMENT FOR CENTRALIZED FILE.—The
Commissioner of Social Security shall establish and main-
tain a centralized file, which shall be updated periodically
and which shall be in a form that renders it readily retriev-
able by each servicing office of the Social Security Admin-
istration. The file shall consist of—
‘‘(1) a list of the names and social security ac-
count numbers or employer identification numbers
(if issued) of all persons with respect to whom, in
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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 title XVI, respectively; and
‘‘(2) a list of the names and social security ac-
count numbers or employer identification numbers
(if issued) of all persons who have been convicted of
a violation of section 208, 811, or 1632.
‘‘(d) PERSONS INELIGIBLE TO SERVE
AS REP-
RESENTATIVE PAYEES.—
‘‘(1) IN GENERAL.—The benefits of a qualified
individual may not be paid to any other person pur-
suant 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 capac-
ity 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
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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 re-
ferred to in such paragraph if the creditor is—
‘‘(i) a relative of the qualified indi-
vidual and the relative resides in the same
household as the qualified individual;
‘‘(ii) a legal guardian or legal rep-
resentative of the individual;
‘‘(iii) a facility that is licensed or cer-
tified as a care facility under the law of
the political jurisdiction in which the quali-
fied individual resides;
‘‘(iv) a person who is an adminis-
trator, owner, or employee of a facility re-
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ferred to in clause (iii), if the qualified in-
dividual resides in the facility, and the pay-
ment to the facility or the person is made
only after the Commissioner of Social Se-
curity has made a good faith effort to lo-
cate an alternative representative payee to
whom payment would serve the best inter-
ests 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 Commis-
sioner of Social Security, to be acceptable
to serve as a representative payee.
‘‘(C) The procedures referred to in sub-
paragraph (B)(v) shall require the person who
will serve as representative payee to establish,
to the satisfaction of the Commissioner of So-
cial 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
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‘‘(iii) no other more suitable rep-
resentative payee can be found.
‘‘(e) DEFERRAL OF PAYMENT PENDING APPOINT-
MENT OF REPRESENTATIVE PAYEE.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
if the Commissioner of Social Security makes a de-
termination described in the first sentence of sub-
section (a) with respect to any qualified individual’s
benefit and determines that direct payment of the
benefit to the qualified individual would cause sub-
stantial harm to the qualified individual, the Com-
missioner of Social Security may defer (in the case
of initial entitlement) or suspend (in the case of ex-
isting entitlement) direct payment of the benefit to
the qualified individual, until such time as the selec-
tion 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 para-
graph (1) shall be for a period of not more than
1 month.
‘‘(B) EXCEPTION IN THE CASE OF INCOM-
PETENCY.—Subparagraph (A) shall not apply
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‘‘(1) IN GENERAL.—In advance of the payment
of a qualified individual’s benefit to a representative
payee under subsection (a), the Commissioner of So-
cial Security shall provide written notice of the Com-
missioner’s initial determination to so make the pay-
ment. 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 re-
quired 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 individ-
ual’s legal guardian or legal representative—
‘‘(A) to appeal a determination that a rep-
resentative payee is necessary for the qualified
individual;
‘‘(B) to appeal the designation of a par-
ticular person to serve as the representative
payee of qualified individual; and
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‘‘(C) to review the evidence upon which the
designation is based and to submit additional
evidence.
‘‘(h) ACCOUNTABILITY MONITORING.—
‘‘(1) In any case where payment under this title
is made to a person other than the qualified indi-
vidual entitled to the payment, the Commissioner of
Social Security shall establish a system of account-
ability monitoring under which the person shall re-
port 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 indi-
vidual, if the Commissioner of Social Security has
reason to believe that the person receiving the pay-
ments is misusing the payments.
‘‘(3) CENTRALIZED FILE.—The Commissioner
of Social Security shall maintain a centralized file,
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which shall be updated periodically and which shall
be in a form that is readily retrievable, 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 pursu-
ant 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 pro-
viding services as representative payee pursuant
to this section, section 205(j), or section
1631(a)(2).
‘‘(4) The Commissioner of Social Security shall
maintain a list, 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 Commis-
sioner of Social Security to investigate or
monitor a representative payee results in
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misuse of benefits by the representative
payee, the Commissioner of Social Security
shall make payment to the qualified indi-
vidual or the individual’s alternative rep-
resentative payee of an amount equal to
the misused benefits. The Commissioner of
Social Security shall make a good faith ef-
fort to obtain restitution from the termi-
nated 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 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 two methods, shall seek or pur-
sue recovery by means of reduction in tax refunds
based on notice to the Secretary of the Treasury, as
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authorized under section 3720A of title 31, United
States Code.
‘‘(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 pre-
pared 
to 
take 
action 
with 
respect 
to 
the
underpayment—
‘‘(A) is living, the Commissioner of Social
Security shall make payment to the qualified in-
dividual (or the qualified individual’s represent-
ative 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) WAIVER OF RECOVERY OF OVERPAYMENT.—In
any case in which more than the correct amount of pay-
ment has been made, there shall be no adjustment of pay-
ments to, or recovery by the United States from, any per-
son who is without fault if the Commissioner of Social Se-
curity determines that the adjustment or recovery would
defeat the purpose of this title or would be against equity
and good conscience.
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‘‘(c) LIMITED IMMUNITY
FOR DISBURSING OFFI-
CERS.—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 adjust-
ment under subsection (a) is not completed before the
death of the qualified individual against whose benefits de-
ductions are authorized.
‘‘(d) AUTHORIZED COLLECTION PRACTICES.—
‘‘(1) IN GENERAL.—With respect to any delin-
quent 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.—
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‘‘(1) IN GENERAL.—The Commissioner of So-
cial Security shall make findings of fact and deci-
sions as to the rights of any individual applying for
payment under this title. The Commissioner of So-
cial Security shall provide reasonable notice and op-
portunity for a hearing to any individual who is or
claims to be a qualified individual and is in disagree-
ment 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 ad-
duced at the hearing affirm, modify, or reverse the
Commissioner of Social Security’s findings of fact
and the decision. The Commissioner of Social Secu-
rity may, on the Commissioner of Social Security’s
own motion, hold such hearings and to conduct such
investigations and other proceedings as the Commis-
sioner 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 affirma-
tions, examine witnesses, and receive evidence. Evi-
dence may be received at any hearing before the
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Commissioner of Social Security even though inad-
missible under the rules of evidence applicable to
court procedure. The Commissioner of Social Secu-
rity shall specifically take into account any physical,
mental, educational, or linguistic limitation of the in-
dividual (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 ap-
plication for any payment under this title or an ad-
verse 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 act-
ing in good faith reliance upon incorrect, incomplete,
or misleading information, relating to the con-
sequences of reapplying for payments in lieu of seek-
ing review of an adverse determination, provided by
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any officer or employee of the Social Security Ad-
ministration.
‘‘(3) NOTICE REQUIREMENTS.—In any notice of
an adverse determination with respect to which a re-
view may be requested under paragraph (1), the
Commissioner of Social Security shall describe in
clear and specific language the effect on possible en-
titlement to benefits under this title of choosing to
reapply in lieu of requesting review of the deter-
mination.
‘‘(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 pro-
vided in section 205(g) to the same extent as the Commis-
sioner of Social Security’s final determinations under sec-
tion 205.
‘‘SEC. 810. OTHER ADMINISTRATIVE PROVISIONS.
‘‘(a) REGULATIONS AND ADMINISTRATIVE ARRANGE-
MENTS.—The Commissioner of Social Security may pre-
scribe 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 install-
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ments as the Commissioner of Social Security determines
are in the interests of economy and efficiency.
‘‘(c) ENTITLEMENT REDETERMINATIONS.—An indi-
vidual’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 deter-
mines to be appropriate.
‘‘(d) SUSPENSION OF BENEFITS.—Regulations pre-
scribed by the Commissioner of Social Security under sub-
section (a) may provide for the temporary suspension of
entitlement to benefits under this title as the Commis-
sioner 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 rep-
resentation of a material fact for use in determining
any right to the benefits;
‘‘(3) having knowledge of the occurrence of any
event affecting—
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‘‘(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, impris-
oned not more than 5 years, or both.
‘‘(b) RESTITUTION BY REPRESENTATIVE PAYEE.—If
a person or organization violates subsection (a) in the per-
son’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.
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‘‘SEC. 812. DEFINITIONS.
‘‘In this title:
‘‘(1) WORLD
WAR
II
VETERAN.—The term
‘World War II veteran’ means a person who served
during World War II—
‘‘(A) in the active military, naval, or air
service of the United States during World War
II, and who was discharged or released there-
from under conditions other than dishonorable
after service of 90 days or more; or
‘‘(B) in the organized military forces of the
Government of the Commonwealth of the Phil-
ippines, while the forces were in the service of
the Armed Forces of the United States pursu-
ant to the military order of the President dated
July 26, 1941, including among the military
forces organized guerrilla forces under com-
manders appointed, designated, or subsequently
recognized by the Commander in Chief, South-
west Pacific Area, or other competent authority
in the Army of the United States, in any case
in which the service was rendered before De-
cember 31, 1946.
‘‘(2) WORLD WAR II.—The term ‘World War II’
means the period beginning on September 16, 1940,
and ending on July 24, 1947.
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‘‘(3) SUPPLEMENTAL SECURITY INCOME BEN-
EFIT 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 sec-
tion 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 in-
come’ means any recurring payment received by a
qualified individual as an annuity, pension, retire-
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ment, 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 simi-
lar payment was received by the individual from the
same (or a related) source during the 12-month pe-
riod 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 2001
and subsequent fiscal years such sums as may be nec-
essary to carry out this title.’’.
(b) CONFORMING AMENDMENTS.—
(1) SOCIAL SECURITY TRUST FUNDS LAE AC-
COUNT.—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 fol-
lowing: ‘‘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,’’.
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(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 insert-
ing ‘‘, 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)(i)(II), by insert-
ing ‘‘, 811,’’ before ‘‘or 1632’’;
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(G) in paragraph (2)(C)(i)(II) by inserting
‘‘, the designation of such person as a rep-
resentative payee has been revoked pursuant to
section 807(a),’’ before ‘‘or payment of bene-
fits’’;
(H) in each of clauses (i) and (ii) of para-
graph (3)(E), by inserting ‘‘, section 807,’’ be-
fore ‘‘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’’.
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(4) SOCIAL SECURITY ADVISORY BOARD.—Sec-
tion 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 in-
serting ‘‘II, VIII’’;
(B) in subsection (a)(1)—
(i) by striking ‘‘or’’ at the end of sub-
paragraph (A);
(ii) by redesignating subparagraph
(B) as subparagraph (C); and
(iii) by inserting after subparagraph
(A) the following:
‘‘(B) benefits or payments under title VIII,
or’’;
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(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:
‘‘(ii) by decrease of any payment
under title VIII to which the person is en-
titled, 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.—Sec-
tion 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
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(ii) by striking ‘‘title II’’ the second
place it appears and inserting ‘‘such title’’;
and
(B) in the title, by striking ‘‘SOCIAL SECU-
RITY’’ and inserting ‘‘OTHER’’.
(8) 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 insert-
ing ‘‘, title VIII,’’ before ‘‘or this title’’;
(C) in subparagraph (B)(ii)(III), by insert-
ing ‘‘, 811,’’ before ‘‘or 1632’’;
(D) in subparagraph (B)(ii)(IV)—
(i) by inserting ‘‘whether the designa-
tion of such person as a representative
payee has been revoked pursuant to section
807(a),’’ before ‘‘and whether certifi-
cation’’; and
(ii) by inserting ‘‘, title VIII,’’ before
‘‘or this title’’;
(E) in subparagraph (B)(iii)(II), by insert-
ing ‘‘the designation of such person as a rep-
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resentative payee has been revoked pursuant to
section 807(a),’’ before ‘‘or certification’’; and
(F) in subparagraph (D)(ii)(II)(aa), by in-
serting ‘‘or 807’’ after ‘‘205(j)(4)’’.
(9) 
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 insert-
ing ‘‘title II, VIII,’’.
Subtitle C—Study
SEC. 261. STUDY OF DENIAL OF SSI BENEFITS FOR FAMILY
FARMERS.
(a) IN GENERAL.—The Commissioner of Social Secu-
rity shall conduct a study of the reasons why family farm-
ers with resources of less than $100,000 are denied sup-
plemental security income benefits under title XVI of the
Social Security Act, including whether the deeming proc-
ess unduly burdens and discriminates against family farm-
ers 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.
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(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 Com-
mittee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate a report
that contains the results of the study, and the determina-
tion, required by subsection (a).
TITLE III—CHILD SUPPORT
SEC. 301. NARROWING OF HOLD HARMLESS PROVISION
FOR STATE SHARE OF DISTRIBUTION OF COL-
LECTED CHILD SUPPORT.
(a) IN GENERAL.—Section 457(d) of the Social Secu-
rity Act (42 U.S.C. 657(d)) is amended to read as follows:
‘‘(d) HOLD HARMLESS PROVISION.—If—
‘‘(1) the amounts collected which could be re-
tained by the State in the fiscal year (to the extent
necessary to reimburse the State for amounts paid
to families as assistance by the State) are less than
the State share of the amounts collected in fiscal
year 1995 (determined in accordance with section
457 as in effect on the day before the date of the
enactment of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996); and
‘‘(2)(A)(i) the State has not retained any of the
current support so collected during the preceding fis-
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cal year on behalf of any family that is a recipient
of assistance under the State program funded under
part A (except any such family in a control group
required by a waiver granted to the State under sec-
tion 1115); and
‘‘(ii) at least the lesser of $150 or the total
amount of current support paid to such a family in
any month is disregarded in determining the amount
or type of assistance to be provided to the family for
the month under the State program funded under
part A; or
‘‘(B) the State has distributed to families not
less than one-half of the child support arrearages
collected pursuant to section 464 during the pre-
ceding fiscal year, that accrued after the families
ceased to receive assistance from the State (as de-
fined in subsection (c)(1)),
then the State share otherwise determined for the fiscal
year shall be increased by an amount equal to one-half
of the amount (if any) by which the State share in fiscal
year 1995 exceeds the State share for the fiscal year (de-
termined without regard to this subsection).’’.
(b) AUTHORITY OF STATE TO PASS THROUGH POR-
TION
OF CHILD SUPPORT ARREARAGES COLLECTED
THROUGH TAX INTERCEPT.—Section 457(a)(2)(B)(iv) of
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such Act (42 U.S.C. 657(a)(2)(B)(iv)) is amended in the
first sentence by inserting after the second sentence the
following: ‘‘After making such payment, the State may
distribute to the family not more than one-half of the re-
maining amount so retained.’’.
(c) EFFECTIVE DATE.—The amendment made by
subsection (a) shall be effective with respect to calendar
quarters beginning on or after October 1, 1998.
(d) REPEALER.—Effective October 1, 2001, section
457 of the Social Security Act (42 U.S.C. 657) is amended
by striking subsection (d).
TITLE IV—TECHNICAL
CORRECTIONS
SEC. 401. TECHNICAL CORRECTIONS RELATING TO AMEND-
MENTS MADE BY THE PERSONAL RESPONSI-
BILITY 
AND 
WORK 
OPPORTUNITY 
REC-
ONCILIATION 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 strik-
ing ‘‘part’’ and inserting ‘‘section’’.
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(c) Section 413(g)(1) of the Social Security Act (42
U.S.C. 613(g)(1)) is amended by striking ‘‘Act’’ and in-
serting ‘‘section’’.
(d) Section 416 of the Social Security Act (42 U.S.C.
616) is amended by striking ‘‘Opportunity Act’’ and in-
serting ‘‘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 So-
cial 
Security 
Act 
(42 
U.S.C. 
652(a)(7) 
and
666(c)(2)(A)(i)) are each amended by striking ‘‘Social Se-
curity’’ 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), (C) and
inserting a semicolon; and
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(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 Responsi-
bility and Work Opportunity Reconciliation Act of 1996
(110 Stat. 2236) is amended to read as follows:
‘‘(A) in paragraph (1), by striking sub-
paragraph (B) and inserting the following:
‘(B) equal to the percent specified in para-
graph (3) of the sums expended during such
quarter that are attributable to the planning,
design, development, installation or enhance-
ment of an automatic data processing and in-
formation 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
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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) of the Social Security Act (42
U.S.C. 666(a)(7)) 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 ac-
tivities 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 amend-
ments made by this section shall take effect as if included
100
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in the enactment of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.
Passed the House of Representatives June 25, 1999.
Attest:
JEFF TRANDAHL,
Clerk.