Federal program described in 
paragraph (3)(A); 
‘‘(dd) has had his or her de-
portation withheld by the Sec-
retary 
of 
Homeland 
Security 
under section 243(h) of the Immi-
gration and Nationality Act (as 
in effect immediately before the ef-
fective date of section 307 of divi-
sion C of Public Law 104–208), 
or whose removal is withheld 
under section 241(b)(3) of such 
Act; 
‘‘(ee) has not attained age 
18; or 
‘‘(ff) has attained age 70. 
‘‘(IV) DECLARATION REQUIRED.— 
‘‘(aa) 
IN
GENERAL.—For 
purposes of subclauses (I) and 
(II), 
the 
declaration 
required 
under this subclause of a qualified 
alien or victim of trafficking de-
scribed in either such subclause is 
a declaration under penalty of 
perjury stating that the alien or
victim has made a good faith ef-
fort to pursue United States citi-
zenship, as determined by the Sec-
retary of Homeland Security. The 
Commissioner of Social Security 
shall develop criteria as needed, in 
consultation with the Secretary of 
Homeland Security, for consider-
ation of such declarations. 
‘‘(bb) EXCEPTION FOR CHIL-
DREN.—A qualified alien or vic-
tim of trafficking described in 
subclause (I) or (II) who has not 
attained age 18 shall not be re-
quired to furnish to the Commis-
sioner of Social Security a dec-
laration described in item (aa) as 
a condition of being eligible for 
the specified Federal program de-
scribed in paragraph (3)(A) for 
an additional 2-year period in ac-
cordance with this clause. 
‘‘(V) PAYMENT OF BENEFITS TO 
ALIENS WHOSE BENEFITS CEASED IN 
PRIOR
FISCAL
YEARS.—Benefits paid
to a qualified alien or victim described 
in subclause (II) shall be paid prospec-
tively over the duration of the qualified 
alien’s or victim’s renewed eligibility. 
‘‘(ii) SPECIAL RULE IN CASE OF PEND-
ING OR APPROVED NATURALIZATION APPLI-
CATION.—With respect to eligibility for ben-
efits for the specified program described in 
paragraph (3)(A), paragraph (1) shall not 
apply during fiscal years 2009 through 
2011 to an alien described in one of clauses 
(i) through (v) of subparagraph (A) or a 
victim of trafficking in persons (as defined 
in section 107(b)(1)(C) of division A of the 
Victims of Trafficking and Violence Protec-
tion Act of 2000 (Public Law 106–386) or 
as 
granted 
status 
under 
section 
101(a)(15)(T)(ii) of the Immigration and 
Nationality Act), if such alien or victim 
(including any such alien or victim ren-
dered ineligible for the specified Federal 
program described in paragraph (3)(A) 
during the period beginning on August 22, 
1996, and ending on September 30, 2008, 
solely by reason of the termination of the 7-
year period described in subparagraph (A)) 
has filed an application for naturalization 
that is pending before the Secretary of 
Homeland Security or a United States dis-
trict court based on section 336(b) of the 
Immigration and Nationality Act, or has 
been approved for naturalization but not 
yet sworn in as a United States citizen, and 
the Commissioner of Social Security has 
verified, through procedures established in 
consultation with the Secretary of Home-
land Security, that such application is 
pending or has been approved.’’. 
SEC. 3. COLLECTION OF UNEMPLOYMENT COMPENSATION 
DEBTS RESULTING FROM FRAUD. 
(a) IN GENERAL.—Section 6402 of the Internal Rev-
enue Code (relating to authority to make credits or refunds) 
is amended by redesignating subsections (f) through (k) as 
subsections (g) through (l), respectively, and by inserting 
after subsection (e) the following new subsection: 
‘‘(f) COLLECTION OF UNEMPLOYMENT COMPENSATION 
DEBTS RESULTING FROM FRAUD.— 
‘‘(1) IN GENERAL.—Upon receiving notice from 
any State that a named person owes a covered unem-
ployment compensation debt to such State, the Sec-
retary shall, under such conditions as may be pre-
scribed by the Secretary— 
‘‘(A) reduce the amount of any overpayment 
payable to such person by the amount of such 
covered unemployment compensation debt; 
‘‘(B) pay the amount by which such over-
payment is reduced under subparagraph (A) to 
such State and notify such State of such person’s 
name, taxpayer identification number, address, 
and the amount collected; and 
‘‘(C) notify the person making such over-
payment that the overpayment has been reduced 
by an amount necessary to satisfy a covered un-
employment compensation debt. 
If an offset is made pursuant to a joint return, the 
notice under subparagraph (C) shall include informa-
tion related to the rights of a spouse of a person sub-
ject to such an offset. 
‘‘(2) PRIORITIES
FOR
OFFSET.—Any overpay-
ment by a person shall be reduced pursuant to this 
subsection— 
‘‘(A) after such overpayment is reduced pur-
suant to— 
‘‘(i) subsection (a) with respect to any 
liability for any internal revenue tax on the
part of the person who made the overpay-
ment; 
‘‘(ii) subsection (c) with respect to 
past-due support; and 
‘‘(iii) subsection (d) with respect to 
any past-due, legally enforceable debt owed 
to a Federal agency; and 
‘‘(B) before such overpayment is credited to 
the future liability for any Federal internal rev-
enue tax of such person pursuant to subsection 
(b). 
If the Secretary receives notice from a State or States 
of more than one debt subject to paragraph (1) or sub-
section (e) that is owed by a person to such State or 
States, any overpayment by such person shall be ap-
plied against such debts in the order in which such 
debts accrued. 
‘‘(3) OFFSET PERMITTED ONLY AGAINST RESI-
DENTS OF STATE SEEKING OFFSET.—Paragraph (1) 
shall apply to an overpayment by any person for a 
taxable year only if the address shown on the Federal 
return for such taxable year of the overpayment is an 
address within the State seeking the offset.
‘‘(4) NOTICE; CONSIDERATION OF EVIDENCE.— 
No State may take action under this subsection until 
such State— 
‘‘(A) notifies by certified mail with return 
receipt the person owing the covered unemploy-
ment compensation debt that the State proposes 
to take action pursuant to this section; 
‘‘(B) provides such person at least 60 days 
to present evidence that all or part of such liabil-
ity is not legally enforceable or due to fraud; 
‘‘(C) considers any evidence presented by 
such person and determines that an amount of 
such debt is legally enforceable and due to fraud; 
and 
‘‘(D) satisfies such other conditions as the 
Secretary may prescribe to ensure that the deter-
mination made under subparagraph (C) is valid 
and that the State has made reasonable efforts to 
obtain payment of such covered unemployment 
compensation debt. 
‘‘(5) COVERED
UNEMPLOYMENT
COMPENSATION 
DEBT.—For purposes of this subsection, the term ‘cov-
ered unemployment compensation debt’ means— 
‘‘(A) a past-due debt for erroneous payment 
of unemployment compensation due to fraud
which has become final under the law of a State 
certified by the Secretary of Labor pursuant to 
section 3304 and which remains uncollected for 
not more than 10 years; 
‘‘(B) contributions due to the unemployment 
fund of a State for which the State has deter-
mined the person to be liable due to fraud and 
which remain uncollected for not more than 10 
years; and 
‘‘(C) any penalties and interest assessed on 
such debt. 
‘‘(6) REGULATIONS.— 
‘‘(A) IN
GENERAL.—The Secretary may 
issue regulations prescribing the time and man-
ner in which States must submit notices of cov-
ered unemployment compensation debt and the 
necessary information that must be contained in 
or accompany such notices. The regulations may 
specify the minimum amount of debt to which 
the reduction procedure established by paragraph 
(1) may be applied. 
‘‘(B) FEE
PAYABLE
TO
SECRETARY.—The 
regulations may require States to pay a fee to 
the Secretary, which may be deducted from 
amounts collected, to reimburse the Secretary for
the cost of applying such procedure. Any fee paid 
to the Secretary pursuant to the preceding sen-
tence shall be used to reimburse appropriations 
which bore all or part of the cost of applying 
such procedure. 
‘‘(C) SUBMISSION
OF
NOTICES
THROUGH 
SECRETARY OF LABOR.—The regulations may in-
clude a requirement that States submit notices of 
covered unemployment compensation debt to the 
Secretary via the Secretary of Labor in accord-
ance with procedures established by the Secretary 
of Labor. Such procedures may require States to 
pay a fee to the Secretary of Labor to reimburse 
the Secretary of Labor for the costs of applying 
this subsection. Any such fee shall be established 
in consultation with the Secretary of the Treas-
ury. Any fee paid to the Secretary of Labor may 
be deducted from amounts collected and shall be 
used to reimburse the appropriation account 
which bore all or part of the cost of applying this 
subsection. 
‘‘(7) ERRONEOUS
PAYMENT
TO
STATE.—Any 
State receiving notice from the Secretary that an er-
roneous payment has been made to such State under 
paragraph (1) shall pay promptly to the Secretary,
in accordance with such regulations as the Secretary 
may prescribe, an amount equal to the amount of 
such erroneous payment (without regard to whether 
any other amounts payable to such State under such 
paragraph have been paid to such State). 
‘‘(8) TERMINATION.—This section shall not 
apply to refunds payable after the date which is 10 
years after the date of the enactment of this sub-
section.’’. 
(b) DISCLOSURE
OF
CERTAIN
INFORMATION
TO 
STATES REQUESTING REFUND OFFSETS FOR LEGALLY EN-
FORCEABLE STATE UNEMPLOYMENT COMPENSATION DEBT 
RESULTING FROM FRAUD.— 
(1) GENERAL RULE.—Paragraph (3) of section 
6103(a) of such Code is amended by inserting ‘‘(10),’’ 
after ‘‘(6),’’. 
(2) DISCLOSURE TO DEPARTMENT OF LABOR AND 
ITS
AGENT.—Paragraph (10) of section 6103(l) of 
such Code is amended— 
(A) by striking ‘‘(c), (d), or (e)’’ each place 
it appears in the heading and text and inserting 
‘‘(c), (d), (e), or (f)’’, 
(B) in subparagraph (A) by inserting ‘‘, to 
officers and employees of the Department of 
Labor for purposes of facilitating the exchange of
data in connection with a request made under 
subsection (f)(5) of section 6402,’’ after ‘‘section 
6402’’, and 
(C) in subparagraph (B)— 
(i) by inserting ‘‘(i)’’ after ‘‘(B)’’; and 
(ii) by adding at the end the following: 
‘‘(ii) Notwithstanding clause (i), return in-
formation disclosed to officers and employees of 
the Department of Labor may be accessed by 
agents who maintain and provide technological 
support to the Department of Labor’s Interstate 
Connection Network (ICON) solely for the pur-
pose of providing such maintenance and sup-
port.’’. 
(3) SAFEGUARDS.—Paragraph (4) of section 
6103(p) of such Code is amended— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘(l)(16),’’ and inserting ‘‘(l)(10), 
(16),’’; 
(B) in subparagraph (F)(i), by striking 
‘‘(l)(16),’’ and inserting ‘‘(l)(10), (16),’’; and 
(C) in the matter following subparagraph 
(F)(iii)—
(i) in each of the first two places it ap-
pears, by striking ‘‘(l)(16),’’ and inserting 
‘‘(l)(10), (16),’’; 
(ii) by inserting ‘‘(10),’’ after ‘‘para-
graph (6)(A),’’; and 
(iii) in each of the last two places it 
appears, by striking ‘‘(l)(16)’’ and inserting 
‘‘(l)(10) or (16)’’. 
(c) EXPENDITURES FROM STATE FUND.—Section 
3304(a)(4) of such Code is amended— 
(1) in subparagraph (E), by striking ‘‘and’’ after 
the semicolon; 
(2) in subparagraph (F), by inserting ‘‘and’’ 
after the semicolon; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(G) with respect to amounts of covered un-
employment compensation debt (as defined in 
section 
6402(f)(4)) 
collected 
under 
section 
6402(f)— 
‘‘(i) amounts may be deducted to pay 
any fees authorized under such section; and 
‘‘(ii) the penalties and interest de-
scribed in section 6402(f)(4)(B) may be 
transferred to the appropriate State fund
into which the State would have deposited 
such amounts had the person owing the debt 
paid such amounts directly to the State;’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Subsection (a) of section 6402 of such Code 
is amended by striking ‘‘(c), (d), and (e),’’ and insert-
ing ‘‘(c), (d), (e), and (f)’’. 
(2) Paragraph (2) of section 6402(d) of such 
Code is amended by striking ‘‘and before such over-
payment is reduced pursuant to subsection (e)’’ and 
inserting ‘‘and before such overpayment is reduced 
pursuant to subsections (e) and (f)’’. 
(3) Paragraph (3) of section 6402(e) of such 
Code is amended in the last sentence by inserting ‘‘or 
subsection (f)’’ after ‘‘paragraph (1)’’. 
(4) Subsection (g) of section 6402 of such Code, 
as redesignated by subsection (a), is amended by 
striking ‘‘(c), (d), or (e)’’ and inserting ‘‘(c), (d), (e), 
or (f)’’. 
(5) Subsection (i) of section 6402 of such Code, 
as redesignated by subsection (a), is amended by 
striking ‘‘subsection (c) or (e)’’ and inserting ‘‘sub-
section (c), (e), or (f)’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to refunds payable under section 6402
of the Internal Revenue Code of 1986 on or after the date 
of enactment of this Act. 
Amend the title so as to read: ‘‘An Act to amend 
section 402 of the Personal Responsibility and Work Op-
portunity Reconciliation Act of 1996 to provide, in fiscal 
years 2009 through 2011, extensions of supplemental se-
curity income for refugees, asylees, and certain other hu-
manitarian immigrants, and to amend the Internal Rev-
enue Code of 1986 to collect unemployment compensation 
debts resulting from fraud.’’. 
Attest: 
Secretary.