394
(or seek to be) eligible for medical assistance based
on the application of section 1931.’’.
(c) 
CONFORMING
AMENDMENTS.—(1) 
Section
1902(c) (42 U.S.C. 1396a(c)) is amended by striking
‘‘if—’’ and all that follows and inserting the following: ‘‘if
the State requires individuals described in subsection
(l)(1) to apply for assistance under the State program
funded under part A of title IV as a condition of applying
for or receiving medical assistance under this title.’’.
(2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended
by striking paragraph (9).
SEC. 4116. EFFECTIVE DATE; TRANSITION RULE.
(a) EFFECTIVE DATES.—
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subtitle, this subtitle and the amend-
ments made by this subtitle shall take effect on July
1, 1997.
(2) DELAYED EFFECTIVE DATE FOR CERTAIN
PROVISIONS.—Notwithstanding any other provision
of this section, paragraphs (2), (3), (4), (5), (8), and
(10) of section 409(a) and section 411(a) of the So-
cial Security Act (as added by the amendments
made by section 4103(a) of this Act) shall not take
effect with respect to a State until, and shall apply
395
only with respect to conduct that occurs on or after,
the later of—
(A) July 1, 1997; or
(B) the date that is 6 months after the
date the Secretary of Health and Human Serv-
ices receives from the State a plan described in
section 402(a) of the Social Security Act (as
added by such amendment).
(3) ELIMINATION OF CHILD CARE PROGRAMS.—
The amendments made by section 4103(d) shall take
effect on October 1, 1996.
(4) DEFINITIONS APPLICABLE TO NEW CHILD
CARE
ENTITLEMENT.—Sections 
403(a)(1)(C),
403(a)(1)(D), and 419(4) of the Social Security Act,
as added by the amendments made by section
4103(a) of this Act, shall take effect on October 1,
1996.
(b) TRANSITION RULES.—Effective on the date of
the enactment of this Act:
(1) STATE OPTION TO ACCELERATE EFFECTIVE
DATE.—
(A) IN
GENERAL.—If the Secretary of
Health and Human Services receives from a
State a plan described in section 402(a) of the
Social Security Act (as added by the amend-
396
ment made by section 4103(a)(1) of this Act),
then—
(i) on and after the date of such re-
ceipt—
(I) except as provided in clause
(ii), this subtitle and the amendments
made by this subtitle (other than by
section 4103(d) of this Act) shall
apply with respect to the State; and
(II) the State shall be considered
an eligible State for purposes of part
A of title IV of the Social Security
Act (as in effect pursuant to the
amendments made by such section
4103(a)); and
(ii) during the period that begins on
the date of such receipt and ends on June
30, 1997, there shall remain in effect with
respect to the State—
(I) section 403(h) of the Social
Security Act (as in effect on Septem-
ber 30, 1995); and
(II) all State reporting require-
ments under parts A and F of title IV
of the Social Security Act (as in effect
397
on September 30, 1995), modified by
the Secretary as appropriate, taking
into account the State program under
part A of title IV of the Social Secu-
rity Act (as in effect pursuant to the
amendments made by such section
4103(a)).
(B) LIMITATIONS
ON
FEDERAL
OBLIGA-
TIONS.—
(i) UNDER
AFDC
PROGRAM.—The
total obligations of the Federal Govern-
ment to a State under part A of title IV
of the Social Security Act (as in effect on
September 30, 1995) with respect to ex-
penditures in fiscal year 1997 shall not ex-
ceed an amount equal to the State family
assistance grant.
(ii) UNDER TEMPORARY FAMILY AS-
SISTANCE
PROGRAM.—Notwithstanding
section 403(a)(1) of the Social Security
Act (as in effect pursuant to the amend-
ments made by section 4103(a) of this
Act), the total obligations of the Federal
Government to a State under such section
403(a)(1)—
398
(I) for fiscal year 1996, shall be
an amount equal to—
(aa) the State family assist-
ance grant; multiplied by
(bb) 1⁄366 of the number of
days during the period that be-
gins on the date the Secretary of
Health and Human Services first
receives from the State a plan
described in section 402(a) of the
Social Security Act (as added by
the amendment made by section
4103(a)(1) of this Act) and ends
on September 30, 1996; and
(II) for fiscal year 1997, shall be
an amount equal to the lesser of—
(aa) the amount (if any) by
which the State family assistance
grant exceeds the total obliga-
tions of the Federal Government
to the State under part A of title
IV of the Social Security Act (as
in effect on September 30, 1995)
with respect to expenditures in
fiscal year 1997; or
399
(bb) the State family assist-
ance grant, multiplied by 1⁄365 of
the number of days during the
period that begins on October 1,
1996, or the date the Secretary
of Health and Human Services
first receives from the State a
plan described in section 402(a)
of the Social Security Act (as
added by the amendment made
by section 4103(a)(1) of this
Act), whichever is later, and ends
on September 30, 1997.
(iii) CHILD
CARE
OBLIGATIONS
EX-
CLUDED IN DETERMINING FEDERAL AFDC
OBLIGATIONS.—As used in this subpara-
graph, the term ‘‘obligations of the Federal
Government to the State under part A of
title IV of the Social Security Act’’ does
not include any obligation of the Federal
Government with respect to child care ex-
penditures by the State.
(C) SUBMISSION OF STATE PLAN FOR FIS-
CAL YEAR 1996 OR 1997 DEEMED ACCEPTANCE
OF
GRANT
LIMITATIONS
AND
FORMULA
AND
400
TERMINATION
OF
AFDC
ENTITLEMENT.—The
submission of a plan by a State pursuant to
subparagraph (A) is deemed to constitute—
(i) the State’s acceptance of the grant
reductions under subparagraph (B) (in-
cluding the formula for computing the
amount of the reduction); and
(ii) the termination of any entitlement
of any individual or family to benefits or
services under the State AFDC program.
(D) DEFINITIONS.—As used in this para-
graph:
(i) STATE AFDC PROGRAM.—The term
‘‘State AFDC program’’ means the State
program under parts A and F of title IV
of the Social Security Act (as in effect on
September 30, 1995).
(ii) STATE.—The term ‘‘State’’ means
the 50 States and the District of Colum-
bia.
(iii) 
STATE
FAMILY
ASSISTANCE
GRANT.—The term ‘‘State family assist-
ance grant’’ means the State family assist-
ance 
grant 
(as 
defined 
in 
section
403(a)(1)(B) of the Social Security Act, as
401
added by the amendment made by section
4103(a)(1) of this Act).
(2) CLAIMS, ACTIONS, AND
PROCEEDINGS.—
The amendments made by this subtitle shall not
apply with respect to—
(A) powers, duties, functions, rights,
claims, penalties, or obligations applicable to
aid, assistance, or services provided before the
effective date of this subtitle under the provi-
sions amended; and
(B) administrative actions and proceedings
commenced before such date, or authorized be-
fore such date to be commenced, under such
provisions.
(3) CLOSING OUT ACCOUNT FOR THOSE PRO-
GRAMS TERMINATED OR SUBSTANTIALLY MODIFIED
BY THIS SUBTITLE.—In closing out accounts, Fed-
eral and State officials may use scientifically accept-
able statistical sampling techniques. Claims made
with respect to State expenditures under a State
plan approved under part A of title IV of the Social
Security Act (as in effect on September 30, 1995)
with respect to assistance or services provided on or
before September 30, 1995, shall be treated as
claims with respect to expenditures during fiscal
402
year 1995 for purposes of reimbursement even if
payment was made by a State on or after October
1, 1995. Each State shall complete the filing of all
claims under the State plan (as so in effect) within
2 years after the date of the enactment of this Act.
The head of each Federal department shall—
(A) use the single audit procedure to re-
view and resolve any claims in connection with
the close out of programs under such State
plans; and
(B) reimburse States for any payments
made for assistance or services provided during
a prior fiscal year from funds for fiscal year
1995, rather than from funds authorized by
this subtitle.
(4) CONTINUANCE
IN
OFFICE
OF
ASSISTANT
SECRETARY FOR FAMILY SUPPORT.—The individual
who, on the day before the effective date of this sub-
title, is serving as Assistant Secretary for Family
Support within the Department of Health and
Human Services shall, until a successor is appointed
to such position—
(A) continue to serve in such position; and
(B) except as otherwise provided by law—
403
(i) continue to perform the functions
of the Assistant Secretary for Family Sup-
port under section 417 of the Social Secu-
rity Act (as in effect before such effective
date); and
(ii) have the powers and duties of the
Assistant Secretary for Family Support
under section 416 of the Social Security
Act (as in effect pursuant to the amend-
ment made by section 4103(a)(1) of this
Act).
(c) TERMINATION OF ENTITLEMENT UNDER AFDC
PROGRAM.—Effective October 1, 1996, no individual or
family shall be entitled to any benefits or services under
any State plan approved under part A or F of title IV
of the Social Security Act (as in effect on September 30,
1995).
Subtitle B—Supplemental Security
Income
SEC. 4200. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in
this subtitle an amendment is expressed in terms of an
amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that sec-
tion or other provision of the Social Security Act.
404
CHAPTER 1—ELIGIBILITY RESTRICTIONS
SEC. 4201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDI-
VIDUALS FOUND TO HAVE FRAUDULENTLY
MISREPRESENTED RESIDENCE IN ORDER TO
OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR
MORE STATES.
(a) IN
GENERAL.—Section 1611(e) (42 U.S.C.
1382(e)), as amended by section 105(b)(4) of the Contract
with America Advancement Act of 1996, is amended by
redesignating paragraph (5) as paragraph (3) and by add-
ing at the end the following new paragraph:
‘‘(4)(A) No person shall be considered an eligible in-
dividual or eligible spouse for purposes of this title during
the 10-year period that begins on the date the person is
convicted in Federal or State court of having made a
fraudulent statement or representation with respect to the
place of residence of the person in order to receive assist-
ance simultaneously from 2 or more States under pro-
grams that are funded under title IV, title XIX, or the
Food Stamp Act of 1977, or benefits in 2 or more States
under the supplemental security income program under
this title.
‘‘(B) As soon as practicable after the conviction of
a person in a Federal or State court as described in sub-
405
paragraph (A), an official of such court shall notify the
Commissioner of such conviction.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 4202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS
AND PROBATION AND PAROLE VIOLATORS.
(a) IN
GENERAL.—Section 1611(e) (42 U.S.C.
1382(e)), as amended by section 4201(a) of this Act, is
amended by adding at the end the following new para-
graph:
‘‘(5) No person shall be considered an eligible individ-
ual or eligible spouse for purposes of this title with respect
to any month if during such month the person is—
‘‘(A) fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the
place from which the person flees, for a crime, or an
attempt to commit a crime, which is a felony under
the laws of the place from which the person flees, or
which, in the case of the State of New Jersey, is a
high misdemeanor under the laws of such State; or
‘‘(B) violating a condition of probation or pa-
role imposed under Federal or State law.’’.
(b) EXCHANGE OF INFORMATION.—Section 1611(e)
(42 U.S.C. 1382(e)), as amended by section 4201(a) of
406
this Act and subsection (a) of this section, is amended by
adding at the end the following new paragraph:
‘‘(6) Notwithstanding any other provision of law
(other than section 6103 of the Internal Revenue Code
of 1986), the Commissioner shall furnish any Federal,
State, or local law enforcement officer, upon the written
request of the officer, with the current address, Social Se-
curity number, and photograph (if applicable) of any re-
cipient of benefits under this title, if the officer furnishes
the Commissioner with the name of the recipient, and
other identifying information as reasonably required by
the Commissioner to establish the unique identity of the
recipient, and notifies the Commissioner that—
‘‘(A) the recipient—
‘‘(i) is described in subparagraph (A) or
(B) of paragraph (5); or
‘‘(ii) has information that is necessary for
the officer to conduct the officer’s official du-
ties; and
‘‘(B) the location or apprehension of the recipi-
ent is within the officer’s official duties.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
407
SEC. 4203. TREATMENT OF PRISONERS.
(a) IMPLEMENTATION
OF PROHIBITION AGAINST
PAYMENT OF BENEFITS TO PRISONERS.—
(1) IN
GENERAL.—Section 1611(e)(1) (42
U.S.C. 1382(e)(1)) is amended by adding at the end
the following new subparagraph:
‘‘(I)(i) The Commissioner shall enter into an agree-
ment, with any interested State or local institution de-
scribed in clause (i) or (ii) of section 202(x)(1)(A) the pri-
mary purpose of which is to confine individuals as de-
scribed in section 202(x)(1)(A), under which—
‘‘(I) the institution shall provide to the Com-
missioner, on a monthly basis and in a manner spec-
ified by the Commissioner, the names, social security
account numbers, dates of birth, confinement com-
mencement dates, and, to the extent available to the
institution, such other identifying information con-
cerning the inmates of the institution as the Com-
missioner may require for the purpose of carrying
out paragraph (1); and
‘‘(II) the Commissioner shall pay to any such
institution, with respect to each inmate of the insti-
tution who is eligible for a benefit under this title for
the month preceding the first month throughout
which such inmate is in such institution and be-
comes ineligible for such benefit as a result of the
408
application of this subparagraph, $400 if the institu-
tion furnishes the information described in subclause
(I) to the Commissioner within 30 days after the
date such individual becomes an inmate of such in-
stitution, or $200 if the institution furnishes such
information after 30 days after such date but within
90 days after such date.
‘‘(ii)(I) The provisions of section 552a of title 5,
United States Code, shall not apply to any agreement en-
tered into under clause (i) or to information exchanged
pursuant to such agreement.
‘‘(II) The Commissioner is authorized to provide, on
a reimbursable basis, information obtained pursuant to
agreements entered into under clause (i) to any Federal
or federally-assisted cash, food, or medical assistance pro-
gram for eligibility purposes.
‘‘(iii) The dollar amounts specified in clause (i)(II)
shall be reduced by 50 percent if the Commissioner is also
required to make a payment to the institution with respect
to the same individual under an agreement entered into
under section 202(x)(3)(B).
‘‘(iv) Payments to institutions required by clause
(i)(II) shall be made from funds otherwise available for
the payment of benefits under this title and shall be treat-
409
ed as direct spending for purposes of the Balanced Budget
and Emergency Deficit Control Act of 1985.’’.
(2) CONFORMING
OASDI
AMENDMENTS.—Sec-
tion 202(x)(3) (42 U.S.C. 402(x)(3)) is amended—
(A) by inserting ‘‘(A)’’ after ‘‘(3)’’; and
(B) by adding at the end the following new
subparagraph:
‘‘(B)(i) The Commissioner shall enter into an agree-
ment, with any interested State or local institution de-
scribed in clause (i) or (ii) of paragraph (1)(A) the pri-
mary purpose of which is to confine individuals as de-
scribed in paragraph (1)(A), under which—
‘‘(I) the institution shall provide to the Com-
missioner, on a monthly basis and in a manner spec-
ified by the Commissioner, the names, social security
account numbers, dates of birth, confinement com-
mencement dates, and, to the extent available to the
institution, such other identifying information con-
cerning the individuals confined in the institution as
the Commissioner may require for the purpose of
carrying out paragraph (1); and
‘‘(II) the Commissioner shall pay to any such
institution, with respect to each individual who is en-
titled to a benefit under this title for the month pre-
ceding the first month throughout which such indi-
410
vidual is confined in such institution as described in
paragraph (1)(A), $400 if the institution furnishes
the information described in subclause (I) to the
Commissioner within 30 days after the date such in-
dividual’s confinement in such institution begins, or
$200 if the institution furnishes such information
after 30 days after such date but within 90 days
after such date.
‘‘(ii)(I) The provisions of section 552a of title 5,
United States Code, shall not apply to any agreement en-
tered into under clause (i) or to information exchanged
pursuant to such agreement.
‘‘(II) The Commissioner is authorized to provide, on
a reimbursable basis, information obtained pursuant to
agreements entered into under clause (i) to any Federal
or federally-assisted cash, food, or medical assistance pro-
gram for eligibility purposes.
‘‘(iii) The dollar amounts specified in clause (i)(II)
shall be reduced by 50 percent if the Commissioner is also
required to make a payment to the institution with respect
to the same individual under an agreement entered into
under section 1611(e)(1)(I).
‘‘(iv) There shall be transferred from the Federal
Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund, as appropriate,
411
such sums as may be necessary to enable the Commis-
sioner to make payments to institutions required by clause
(i)(II). Sums so transferred shall be treated as direct
spending for purposes of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 and excluded from
budget totals in accordance with section 13301 of the
Budget Enforcement Act of 1990.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to individuals whose
period of confinement in an institution commences
on or after the first day of the seventh month begin-
ning after the month in which this Act is enacted.
(b) ELIMINATION OF OASDI REQUIREMENT THAT
CONFINEMENT STEM FROM CRIME PUNISHABLE BY IM-
PRISONMENT FOR MORE THAN 1 YEAR.—
(1) IN
GENERAL.—Section 202(x)(1)(A) (42
U.S.C. 402(x)(1)(A)) is amended—
(A) in the matter preceding clause (i), by
striking ‘‘during’’ and inserting ‘‘throughout’’;
(B) in clause (i), by striking ‘‘pursuant’’
and all that follows through ‘‘imposed)’’; and
(C) in clause (ii)(I), by striking ‘‘an of-
fense punishable by imprisonment for more
than 1 year’’ and inserting ‘‘a criminal of-
fense’’.
412
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall be effective with respect to
benefits payable for months beginning more than
180 days after the date of the enactment of this Act.
(c) STUDY OF OTHER POTENTIAL IMPROVEMENTS IN
THE COLLECTION OF INFORMATION RESPECTING PUBLIC
INMATES.—
(1) STUDY.—The Commissioner of Social Secu-
rity shall conduct a study of the desirability, feasibil-
ity, and cost of—
(A) establishing a system under which
Federal, State, and local courts would furnish
to the Commissioner such information respect-
ing court orders by which individuals are con-
fined in jails, prisons, or other public penal,
correctional, or medical facilities as the Com-
missioner may require for the purpose of carry-
ing out sections 202(x) and 1611(e)(1) of the
Social Security Act; and
(B) requiring that State and local jails,
prisons, and other institutions that enter into
agreements with the Commissioner under sec-
tion 202(x)(3)(B) or 1611(e)(1)(I) of the Social
Security Act furnish the information required
by such agreements to the Commissioner by
413
means of an electronic or other sophisticated
data exchange system.
(2) REPORT.—Not later than 1 year after the
date of the enactment of this Act, the Commissioner
of Social Security shall submit a report on the re-
sults of the study conducted pursuant to this sub-
section to the Committee on Finance of the Senate
and the Committee on Ways and Means of the
House of Representatives.
(d) ADDITIONAL REPORT TO CONGRESS.—Not later
than October 1, 1998, the Commissioner of Social Secu-
rity shall provide to the Committee on Finance of the Sen-
ate and the Committee on Ways and Means of the House
of Representatives a list of the institutions that are and
are not providing information to the Commissioner under
sections 202(x)(3)(B) and 1611(e)(1)(I) of the Social Se-
curity Act (as added by this section).
SEC. 4204. EFFECTIVE DATE OF APPLICATION FOR BENE-
FITS.
(a) IN GENERAL.—Subparagraphs (A) and (B) of
section 1611(c)(7) (42 U.S.C. 1382(c)(7)) are amended
to read as follows:
‘‘(A) the first day of the month following the
date such application is filed, or
414
‘‘(B) the first day of the month following the
date such individual becomes eligible for such bene-
fits with respect to such application.’’.
(b) SPECIAL RULE RELATING TO EMERGENCY AD-
VANCE PAYMENTS.—Section 1631(a)(4)(A) (42 U.S.C.
1383(a)(4)(A)) is amended—
(1) by inserting ‘‘for the month following the
date the application is filed’’ after ‘‘is presumptively
eligible for such benefits’’; and
(2) by inserting ‘‘, which shall be repaid
through proportionate reductions in such benefits
over a period of not more than 6 months’’ before the
semicolon.
(c) CONFORMING AMENDMENTS.—
(1) Section 1614(b) (42 U.S.C. 1382c(b)) is
amended by striking ‘‘at the time the application or
request is filed’’ and inserting ‘‘on the first day of
the month following the date the application or re-
quest is filed’’.
(2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3))
is amended by inserting ‘‘following the month’’ after
‘‘beginning with the month’’.
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall apply to applications for benefits
415
under title XVI of the Social Security Act filed on
or after the date of the enactment of this Act, with-
out regard to whether regulations have been issued
to implement such amendments.
(2) BENEFITS
UNDER
TITLE
XVI.—For pur-
poses of this subsection, the term ‘‘benefits under
title XVI of the Social Security Act’’ includes sup-
plementary payments pursuant to an agreement for
Federal administration under section 1616(a) of the
Social Security Act, and payments pursuant to an
agreement entered into under section 212(b) of Pub-
lic Law 93–66.
CHAPTER 2—BENEFITS FOR DISABLED
CHILDREN
SEC. 4211. DEFINITION AND ELIGIBILITY RULES.
(a) DEFINITION OF CHILDHOOD DISABILITY.—Sec-
tion 1614(a)(3) (42 U.S.C. 1382c(a)(3)), as amended by
section 105(b)(1) of the Contract with America Advance-
ment Act of 1996, is amended—
(1) in subparagraph (A), by striking ‘‘An indi-
vidual’’ and inserting ‘‘Except as provided in sub-
paragraph (C), an individual’’;
(2) in subparagraph (A), by striking ‘‘(or, in
the case of an individual under the age of 18, if he
416
suffers from any medically determinable physical or
mental impairment of comparable severity)’’;
(3) by redesignating subparagraphs (C) through
(I) as subparagraphs (D) through (J), respectively;
(4) by inserting after subparagraph (B) the fol-
lowing new subparagraph:
‘‘(C)(i) An individual under the age of 18 shall be
considered disabled for the purposes of this title if that
individual has a medically determinable physical or mental
impairment, which results in marked and severe functional
limitations, and which can be expected to result in death
or which has lasted or can be expected to last for a contin-
uous period of not less than 12 months.
‘‘(ii) The Commissioner shall ensure that the com-
bined effects of all physical or mental impairments of an
individual are taken into account in determining whether
an individual is disabled in accordance with clause (i).
‘‘(iii) The Commissioner shall ensure that the regula-
tions prescribed under this subparagraph provide for the
evaluation of children who cannot be tested because of
their young age.
‘‘(iv) Notwithstanding the preceding provisions of
this subparagraph, no individual under the age of 18 who
engages in substantial gainful activity (determined in ac-
417
cordance with regulations prescribed pursuant to subpara-
graph (E)) may be considered to be disabled.’’; and
(5) in subparagraph (F), as redesignated by
paragraph (3), by striking ‘‘(D)’’ and inserting
‘‘(E)’’.
(b) CHANGES TO CHILDHOOD SSI REGULATIONS.—
(1) MODIFICATION TO MEDICAL CRITERIA FOR
EVALUATION
OF
MENTAL
AND
EMOTIONAL
DIS-
ORDERS.—The Commissioner of Social Security
shall 
modify 
sections 
112.00C.2. 
and
112.02B.2.c.(2) of appendix 1 to subpart P of part
404 of title 20, Code of Federal Regulations, to
eliminate references to maladaptive behavior in the
domain of personal/behavorial function.
(2) 
DISCONTINUANCE
OF
INDIVIDUALIZED
FUNCTIONAL
ASSESSMENT.—The Commissioner of
Social Security shall discontinue the individualized
functional assessment for children set forth in sec-
tions 416.924d and 416.924e of title 20, Code of
Federal Regulations.
(c) MEDICAL IMPROVEMENT REVIEW STANDARD AS
IT APPLIES TO INDIVIDUALS UNDER THE AGE OF 18.—
Section 1614(a)(4) (42 U.S.C. 1382(a)(4)) is amended—
418
(1) by redesignating subclauses (I) and (II) of
clauses (i) and (ii) of subparagraph (B) as items
(aa) and (bb), respectively;
(2) by redesignating clauses (i) and (ii) of sub-
paragraphs (A) and (B) as subclauses (I) and (II),
respectively;
(3) by redesignating subparagraphs (A) through
(C) as clauses (i) through (iii), respectively;
(4) by inserting before clause (i) (as redesig-
nated by paragraph (3)) the following new subpara-
graph:
‘‘(A) in the case of an individual who is age 18
or older—’’;
(5) by inserting after and below subparagraph
(A)(iii) (as so redesignated) the following new sub-
paragraph:
‘‘(B) in the case of an individual who is under
the age of 18—
‘‘(i) 
substantial 
evidence 
which 
dem-
onstrates that there has been medical improve-
ment in the individual’s impairment or com-
bination of impairments, and that such impair-
ment or combination of impairments no longer
results in marked and severe functional limita-
tions; or
419
‘‘(ii) substantial evidence which dem-
onstrates that, as determined on the basis of
new or improved diagnostic techniques or eval-
uations, the individual’s impairment or com-
bination of impairments, is not as disabling as
it was considered to be at the time of the most
recent prior decision that the individual was
under a disability or continued to be under a
disability, and such impairment or combination
of impairments does not result in marked and
severe functional limitations; or’’;
(6) by redesignating subparagraph (D) as sub-
paragraph (C) and by inserting in such subpara-
graph ‘‘in the case of any individual,’’ before ‘‘sub-
stantial evidence’’; and
(7) in the first sentence following subparagraph
(C) (as redesignated by paragraph (6)), by—
(A) inserting ‘‘(i)’’ before ‘‘to restore’’; and
(B) inserting ‘‘, or (ii) in the case of an in-
dividual under the age of 18, to eliminate or
improve the individual’s impairment or com-
bination of impairments so that it no longer re-
sults in marked and severe functional limita-
tions’’ immediately before the period.
(d) EFFECTIVE DATES, ETC.—
420
(1) EFFECTIVE DATES.—
(A) SUBSECTIONS (a) AND (b).—
(i) IN GENERAL.—The provisions of,
and amendments made by, subsections (a)
and (b) shall apply to any individual who
applies for, or whose claim is finally adju-
dicated with respect to, benefits under title
XVI of the Social Security Act on or after
the date of the enactment of this Act,
without regard to whether regulations have
been issued to implement such provisions
and amendments.
(ii) DETERMINATION OF FINAL ADJU-
DICATION.—For purposes of clause (i), no
individual’s claim with respect to such ben-
efits may be considered to be finally adju-
dicated before such date of enactment if,
on or after such date, there is pending a
request for either administrative or judicial
review with respect to such claim that has
been denied in whole, or there is pending,
with respect to such claim, readjudication
by the Commissioner of Social Security
pursuant to relief in a class action or im-
421
plementation by the Commissioner of a
court remand order.
(B) SUBSECTION
(c).—The amendments
made by subsection (c) shall apply with respect
to benefits under title XVI of the Social Secu-
rity Act for months beginning on or after the
date of the enactment of this Act, without re-
gard to whether regulations have been issued to
implement such amendments.
(2) APPLICATION TO CURRENT RECIPIENTS.—
(A) ELIGIBILITY
REDETERMINATIONS.—
During the period beginning on the date of the
enactment of this Act and ending on the date
which is 1 year after such date of enactment,
the Commissioner of Social Security shall rede-
termine the eligibility of any individual under
age 18 who is eligible for supplemental security
income benefits by reason of disability under
title XVI of the Social Security Act as of the
date of the enactment of this Act and whose
eligibility for such benefits may terminate by
reason of the provisions of, or amendments
made by, subsections (a) and (b). With respect
to any redetermination under this subpara-
graph—
422
(i) section 1614(a)(4) of the Social
Security Act (42 U.S.C. 1382c(a)(4)) shall
not apply;
(ii) the Commissioner of Social Secu-
rity shall apply the eligibility criteria for
new applicants for benefits under title XVI
of such Act;
(iii) the Commissioner shall give such
redetermination priority over all continuing
eligibility reviews and other reviews under
such title; and
(iv) such redetermination shall be
counted as a review or redetermination
otherwise required to be made under sec-
tion 208 of the Social Security Independ-
ence and Program Improvements Act of
1994 or any other provision of title XVI of
the Social Security Act.
(B) GRANDFATHER PROVISION.—The pro-
visions of, and amendments made by, sub-
sections (a) and (b), and the redetermination
under subparagraph (A), shall only apply with
respect to the benefits of an individual de-
scribed in subparagraph (A) for months begin-
423
ning on or after the date of the redetermination
with respect to such individual.
(C) NOTICE.—Not later than January 1,
1997, the Commissioner of Social Security shall
notify an individual described in subparagraph
(A) of the provisions of this paragraph.
(3) REPORT.—The Commissioner of Social Se-
curity shall report to the Congress regarding the
progress made in implementing the provisions of,
and amendments made by, this section on child dis-
ability evaluations not later than 180 days after the
date of the enactment of this Act.
(4) REGULATIONS.—Notwithstanding any other
provision of law, the Commissioner of Social Secu-
rity shall submit for review to the committees of ju-
risdiction in the Congress any final regulation per-
taining to the eligibility of individuals under age 18
for benefits under title XVI of the Social Security
Act at least 45 days before the effective date of such
regulation. The submission under this paragraph
shall include supporting documentation providing a
cost analysis, workload impact, and projections as to
how the regulation will effect the future number of
recipients under such title.
424
(5) BENEFITS
UNDER
TITLE
XVI.—For pur-
poses of this subsection, the term ‘‘benefits under
title XVI of the Social Security Act’’ includes sup-
plementary payments pursuant to an agreement for
Federal administration under section 1616(a) of the
Social Security Act, and payments pursuant to an
agreement entered into under section 212(b) of Pub-
lic Law 93–66.
SEC. 4212. ELIGIBILITY REDETERMINATIONS AND CON-
TINUING DISABILITY REVIEWS.
(a) CONTINUING DISABILITY REVIEWS RELATING TO
CERTAIN CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C.
1382c(a)(3)(H)), as redesignated by section 4211(a)(3) of
this Act, is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and
(2) by adding at the end the following new
clause:
‘‘(ii)(I) Not less frequently than once every 3 years,
the Commissioner shall review in accordance with para-
graph (4) the continued eligibility for benefits under this
title of each individual who has not attained 18 years of
age and is eligible for such benefits by reason of an im-
pairment (or combination of impairments) which is likely
to improve (or, at the option of the Commissioner, which
is unlikely to improve).
425
‘‘(II) A representative payee of a recipient whose case
is reviewed under this clause shall present, at the time
of review, evidence demonstrating that the recipient is,
and has been, receiving treatment, to the extent consid-
ered medically necessary and available, of the condition
which was the basis for providing benefits under this title.
‘‘(III) If the representative payee refuses to comply
without good cause with the requirements of subclause
(II), the Commissioner of Social Security shall, if the
Commissioner determines it is in the best interest of the
individual, promptly suspend payment of benefits to the
representative payee, and provide for payment of benefits
to an alternative representative payee of the individual or,
if the interest of the individual under this title would be
served thereby, to the individual.
‘‘(IV) Subclause (II) shall not apply to the represent-
ative payee of any individual with respect to whom the
Commissioner determines such application would be inap-
propriate or unnecessary. In making such determination,
the Commissioner shall take into consideration the nature
of the individual’s impairment (or combination of impair-
ments). Section 1631(c) shall not apply to a finding by
the Commissioner that the requirements of subclause (II)
should not apply to an individual’s representative payee.’’.
426
(b) DISABILITY ELIGIBILITY REDETERMINATIONS
REQUIRED FOR SSI RECIPIENTS WHO ATTAIN 18 YEARS
OF AGE.—
(1) IN GENERAL.—Section 1614(a)(3)(H) (42
U.S.C. 1382c(a)(3)(H)), as amended by subsection
(a) of this section, is amended by adding at the end
the following new clause:
‘‘(iii) If an individual is eligible for benefits under this
title by reason of disability for the month preceding the
month in which the individual attains the age of 18 years,
the Commissioner shall redetermine such eligibility—
‘‘(I) during the 1-year period beginning on the
individual’s 18th birthday; and
‘‘(II) by applying the criteria used in determin-
ing the initial eligibility for applicants who are age
18 or older.
With respect to a redetermination under this clause, para-
graph (4) shall not apply and such redetermination shall
be considered a substitute for a review or redetermination
otherwise required under any other provision of this sub-
paragraph during that 1-year period.’’.
(2) CONFORMING REPEAL.—Section 207 of the
Social Security Independence and Program Improve-
ments Act of 1994 (42 U.S.C. 1382 note; 108 Stat.
1516) is hereby repealed.
427
(c) CONTINUING DISABILITY REVIEW REQUIRED FOR
LOW BIRTH WEIGHT BABIES.—Section 1614(a)(3)(H)
(42 U.S.C. 1382c(a)(3)(H)), as amended by subsections
(a) and (b) of this section, is amended by adding at the
end the following new clause:
‘‘(iv)(I) Not later than 12 months after the birth of
an individual, the Commissioner shall review in accordance
with paragraph (4) the continuing eligibility for benefits
under this title by reason of disability of such individual
whose low birth weight is a contributing factor material
to the Commissioner’s determination that the individual
is disabled.
‘‘(II) A review under subclause (I) shall be considered
a substitute for a review otherwise required under any
other provision of this subparagraph during that 12-
month period.
‘‘(III) A representative payee of a recipient whose
case is reviewed under this clause shall present, at the
time of review, evidence demonstrating that the recipient
is, and has been, receiving treatment, to the extent consid-
ered medically necessary and available, of the condition
which was the basis for providing benefits under this title.
‘‘(IV) If the representative payee refuses to comply
without good cause with the requirements of subclause
(III), the Commissioner of Social Security shall, if the
428
Commissioner determines it is in the best interest of the
individual, promptly suspend payment of benefits to the
representative payee, and provide for payment of benefits
to an alternative representative payee of the individual or,
if the interest of the individual under this title would be
served thereby, to the individual.
‘‘(V) Subclause (III) shall not apply to the represent-
ative payee of any individual with respect to whom the
Commissioner determines such application would be inap-
propriate or unnecessary. In making such determination,
the Commissioner shall take into consideration the nature
of the individual’s impairment (or combination of impair-
ments). Section 1631(c) shall not apply to a finding by
the Commissioner that the requirements of subclause (III)
should not apply to an individual’s representative payee.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to benefits for months beginning
on or after the date of the enactment of this Act, without
regard to whether regulations have been issued to imple-
ment such amendments.
SEC. 4213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.
(a) DISPOSAL OF RESOURCES FOR LESS THAN FAIR
MARKET VALUE.—
(1) IN GENERAL.—Section 1613(c) (42 U.S.C.
1382b(c)) is amended to read as follows:
429
‘‘Disposal of Resources for Less Than Fair Market Value
‘‘(c)(1)(A)(i) If an individual who has not attained
18 years of age (or any person acting on such individual’s
behalf) disposes of resources of the individual for less than
fair market value on or after the look-back date specified
in clause (ii)(I), the individual is ineligible for benefits
under this title for months during the period beginning
on the date specified in clause (iii) and equal to the num-
ber of months specified in clause (iv).
‘‘(ii)(I) The look-back date specified in this subclause
is a date that is 36 months before the date specified in
subclause (II).
‘‘(II) The date specified in this subclause is the date
on which the individual applies for benefits under this title
or, if later, the date on which the disposal of the individ-
ual’s resources for less than fair market value occurs.
‘‘(iii) The date specified in this clause is the first day
of the first month that follows the month in which the
individual’s resources were disposed of for less than fair
market value and that does not occur in any other period
of ineligibility under this paragraph.
‘‘(iv) The number of months of ineligibility under this
clause for an individual shall be equal to—
‘‘(I) the total, cumulative uncompensated value
of all the individual’s resources so disposed of on or
430
after the look-back date specified in clause (ii)(I), di-
vided by
‘‘(II) the amount of the maximum monthly ben-
efit payable under section 1611(b) to an eligible in-
dividual for the month in which the date specified in
clause (ii)(II) occurs.
‘‘(B) An individual shall not be ineligible for benefits
under this title by reason of subparagraph (A) if the Com-
missioner determines that—
‘‘(i) the individual intended to dispose of the re-
sources at fair market value;
‘‘(ii) the resources were transferred exclusively
for a purpose other than to qualify for benefits
under this title;
‘‘(iii) all resources transferred for less than fair
market value have been returned to the individual;
or
‘‘(iv) the denial of eligibility would work an
undue hardship on the individual (as determined on
the basis of criteria established by the Commissioner
in regulations).
‘‘(C) For purposes of this paragraph, 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-
431
tion of such resource) shall be considered to be disposed
of by such individual when any action is taken, either by
such individual or by any other person, that reduces or
eliminates such individual’s ownership or control of such
resource.
‘‘(D)(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 such re-
source 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 individ-
ual (within the meaning of subsection (e)(2)(A)), if from
such portion of the trust (if any) that is considered a re-
source available to the individual pursuant to subsection
(e)(3) (or would be so considered but for the application
of subsection (e)(2)) or the residue of such portion upon
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 the payment described in subclause (I) or the fore-
closure of payment described in subclause (II) shall be
considered a disposal of resources by the individual subject
432
to this subsection, as of the date of such payment or fore-
closure, respectively.
‘‘(2)(A) At the time an individual (and the individ-
ual’s eligible spouse, if any) applies for benefits under this
title, and at the time the eligibility of an individual (and
such spouse, if any) for such benefits is redetermined, the
Commissioner of Social Security shall—
‘‘(i) inform such individual of the provisions of
paragraph (1) providing for a period of ineligibility
for benefits under this title for individuals who make
certain dispositions of resources for less than fair
market value, and inform such individual that infor-
mation obtained pursuant to clause (ii) will be made
available to the State agency administering a State
plan approved under title XIX (as provided in sub-
paragraph (B)); and
‘‘(ii) obtain from such individual information
which may be used in determining whether or not a
period of ineligibility for such benefits would be re-
quired by reason of paragraph (1).
‘‘(B) The Commissioner of Social Security shall make
the information obtained under subparagraph (A)(ii)
available, on request, to any State agency administering
a State plan approved under title XIX.
‘‘(3) For purposes of this subsection—
433
‘‘(A) the term ‘trust’ includes any legal instru-
ment or device that is similar to a trust; and
‘‘(B) the term ‘benefits under this title’ includes
supplementary payments pursuant to an agreement
for Federal administration under section 1616(a),
and payments pursuant to an agreement entered
into under section 212(b) of Public Law 93–66.’’.
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall be effective with respect to
transfers that occur at least 90 days after the date
of the enactment of this Act.
(b) TREATMENT OF ASSETS HELD IN TRUST.—
(1) TREATMENT AS RESOURCE.—Section 1613
(42 U.S.C. 1382) is amended by adding at the end
the following new subsection:
‘‘Trusts
‘‘(e)(1) In determining the resources of an individual
who has not attained 18 years of age, the provisions of
paragraph (3) shall apply to a trust established by such
individual.
‘‘(2)(A) For purposes of this subsection, an individual
shall be considered to have established a trust if any assets
of the individual were transferred to the trust.
‘‘(B) In the case of an irrevocable trust to which the
assets of an individual and the assets of any other person
434
or persons were transferred, the provisions of this sub-
section shall apply to the portion of the trust attributable
to the assets of the individual.
‘‘(C) This subsection shall apply 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, the corpus
of the trust shall be considered a resource available to the
individual.
‘‘(B) In the case of an irrevocable trust, if there are
any circumstances under which payment from the trust
could be made to or for the benefit of the individual, the
portion of the corpus from which payment to or for the
benefit of the individual could be made shall be considered
a resource available to the individual.
‘‘(4) The Commissioner may waive the application of
this subsection with respect to any individual if the Com-
missioner determines, on the basis of criteria prescribed
435
in regulations, that such application would work an undue
hardship on such individual.
‘‘(5) 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 all property and
other interests held by the trust, including accumu-
lated earnings and any other addition to such trust
after its establishment (except that such term does
not include any such earnings or addition in the
month in which such earnings or addition is credited
or otherwise transferred to the trust);
‘‘(C) the term ‘asset’ includes any income or re-
source of the individual, including—
‘‘(i) any income otherwise excluded by sec-
tion 1612(b);
‘‘(ii) any resource otherwise excluded by
this section; and
‘‘(iii) any other payment or property that
the individual is entitled to but does not receive
or have access to because of action by—
‘‘(I) such individual;
‘‘(II) a person or entity (including a
court) with legal authority to act in place
of, or on behalf of, such individual; or
436
‘‘(III) a person or entity (including a
court) acting at the direction of, or upon
the request of, such individual; and
‘‘(D) the term ‘benefits under this title’ in-
cludes supplementary payments pursuant to an
agreement for Federal administration under section
1616(a), and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93–
66.’’.
(2) 
TREATMENT
AS
INCOME.—Section
1612(a)(2) (42 U.S.C. 1382a(a)(2)) is amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (E);
(B) by striking the period at the end of
subparagraph (F) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(G) any earnings of, and additions to, the
corpus of a trust (as defined in section 1613(f))
established by an individual (within the mean-
ing of section 1613(e)(2)(A)) and of which such
individual is a beneficiary (other than a trust to
which section 1613(e)(4) applies), except that
in the case of an irrevocable trust, there shall
exist circumstances under which payment from
437
such earnings or additions could be made to, or
for the benefit of, such individual.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on the date which
is 90 days after the date of the enactment of this
Act, and shall apply to trusts established on or after
such date.
(c) REQUIREMENT TO ESTABLISH ACCOUNT.—
(1) IN
GENERAL.—Section 1631(a)(2) (42
U.S.C. 1383(a)(2)) is amended—
(A) by redesignating subparagraphs (F)
and (G) as subparagraphs (G) and (H), respec-
tively; and
(B) by inserting after subparagraph (E)
the following new subparagraph:
‘‘(F)(i)(I) Each representative payee of an eligible in-
dividual under the age of 18 who is eligible for the pay-
ment of benefits described in subclause (II) shall establish
on behalf of such individual an account in a financial insti-
tution into which such benefits shall be paid, and shall
thereafter maintain such account for use in accordance
with clause (ii).
‘‘(II) Benefits described in this subclause are past-
due monthly benefits under this title (which, for purposes
of this subclause, include State supplementary payments
438
made by the Commissioner pursuant to an agreement
under section 1616 or section 212(b) of Public Law 93–
66) in an amount (after any withholding by the Commis-
sioner for reimbursement to a State for interim assistance
under subsection (g)) that exceeds the product of—
‘‘(aa) 6, and
‘‘(bb) the maximum monthly benefit payable
under this title to an eligible individual.
‘‘(ii)(I) A representative payee shall use funds in the
account established under clause (i) to pay for allowable
expenses described in subclause (II).
‘‘(II) An allowable expense described in this subclause
is an expense for—
‘‘(aa) education or job skills training;
‘‘(bb) personal needs assistance;
‘‘(cc) special equipment;
‘‘(dd) housing modification;
‘‘(ee) medical treatment;
‘‘(ff) therapy or rehabilitation; or
‘‘(gg) any other item or service that the Com-
missioner determines to be appropriate;
provided that such expense benefits such individual and,
in the case of an expense described in item (bb), (cc), (dd),
(ff), or (gg), is related to the impairment (or combination
of impairments) of such individual.
439
‘‘(III) The use of funds from an account established
under clause (i) in any manner not authorized by this
clause—
‘‘(aa) by a representative payee shall be consid-
ered a misapplication of benefits for all purposes of
this paragraph, and any representative payee who
knowingly misapplies benefits from such an account
shall be liable to the Commissioner in an amount
equal to the total amount of such benefits; and
‘‘(bb) by an eligible individual who is his or her
own payee shall be considered a misapplication of
benefits for all purposes of this paragraph and the
total amount of such benefits so used shall be con-
sidered to be the uncompensated value of a disposed
resource and shall be subject to the provisions of
section 1613(c).
‘‘(IV) This clause shall continue to apply to funds in
the account after the child has reached age 18, regardless
of whether benefits are paid directly to the beneficiary or
through a representative payee.
‘‘(iii) The representative payee may deposit into the
account established pursuant to clause (i)—
‘‘(I) past-due benefits payable to the eligible in-
dividual in an amount less than that specified in
clause (i)(II), and
440
‘‘(II) any other funds representing an under-
payment under this title to such individual, provided
that the amount of such underpayment is equal to
or exceeds the maximum monthly benefit payable
under this title to an eligible individual.
‘‘(iv) The Commissioner of Social Security shall es-
tablish a system for accountability monitoring whereby
such representative payee shall report, at such time and
in such manner as the Commissioner shall require, on ac-
tivity respecting funds in the account established pursuant
to clause (i).’’.
(2) EXCLUSION
FROM
RESOURCES.—Section
1613(a) (42 U.S.C. 1382b(a)) is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (10);
(B) by striking the period at the end of
paragraph (11) and inserting ‘‘; and’’; and
(C) by inserting after paragraph (11) the
following new paragraph:
‘‘(12) any account, including accrued interest or
other earnings thereon, established and maintained
in accordance with section 1631(a)(2)(F).’’.
(3) 
EXCLUSION
FROM
INCOME.—Section
1612(b) (42 U.S.C. 1382a(b)) is amended—
441
(A) by striking ‘‘and’’ at the end of para-
graph (19);
(B) by striking the period at the end of
paragraph (20) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(21) the interest or other earnings on any ac-
count established and maintained in accordance with
section 1631(a)(2)(F).’’.
(4) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to payments made
after the date of the enactment of this Act.
SEC. 4214. REDUCTION IN CASH BENEFITS PAYABLE TO IN-
STITUTIONALIZED INDIVIDUALS WHOSE MED-
ICAL COSTS ARE COVERED BY PRIVATE IN-
SURANCE.
(a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C.
1382(e)(1)(B)) is amended—
(1) by striking ‘‘title XIX, or’’ and inserting
‘‘title XIX,’’; and
(2) by inserting ‘‘or, in the case of an eligible
individual under the age of 18, receiving payments
(with respect to such individual) under any health
insurance policy issued by a private provider of such
insurance’’ after ‘‘section 1614(f)(2)(B),’’.
442
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to benefits for months beginning
90 or more days after the date of the enactment of this
Act, without regard to whether regulations have been is-
sued to implement such amendments.
SEC. 4215. REGULATIONS.
Within 3 months after the date of the enactment of
this Act, the Commissioner of Social Security shall pre-
scribe such regulations as may be necessary to implement
the amendments made by this chapter.
CHAPTER 3—ADDITIONAL ENFORCEMENT
PROVISIONS
SEC. 4221. INSTALLMENT PAYMENT OF LARGE PAST-DUE
SUPPLEMENTAL SECURITY INCOME BENE-
FITS.
(a) IN GENERAL.—Section 1631(a) (42 U.S.C. 1383)
is amended by adding at the end the following new para-
graph:
‘‘(10)(A) If an individual is eligible for past-due
monthly benefits under this title in an amount that (after
any withholding for reimbursement to a State for interim
assistance under subsection (g)) equals or exceeds the
product of—
‘‘(i) 12, and
443
‘‘(ii) the maximum monthly benefit payable
under this title to an eligible individual (or, if appro-
priate, to an eligible individual and eligible spouse),
then the payment of such past-due benefits (after any such
reimbursement to a State) shall be made in installments
as provided in subparagraph (B).
‘‘(B)(i) The payment of past-due benefits subject to
this subparagraph shall be made in not to exceed 3 install-
ments that are made at 6-month intervals.
‘‘(ii) Except as provided in clause (iii), the amount
of each of the first and second installments may not exceed
an amount equal to the product of clauses (i) and (ii) of
subparagraph (A).
‘‘(iii) In the case of an individual who has—
‘‘(I) outstanding debt attributable to—
‘‘(aa) food,
‘‘(bb) clothing,
‘‘(cc) shelter, or
‘‘(dd) medically necessary services, supplies
or equipment, or medicine; or
‘‘(II) current expenses or expenses anticipated
in the near term attributable to—
‘‘(aa) medically necessary services, supplies
or equipment, or medicine, or
‘‘(bb) the purchase of a home, and
444
such debt or expenses are not subject to reimbursement
by a public assistance program, the Secretary under title
XVIII, a State plan approved under title XIX, or any pri-
vate entity legally liable to provide payment pursuant to
an insurance policy, pre-paid plan, or other arrangement,
the limitation specified in clause (ii) may be exceeded by
an amount equal to the total of such debt and expenses.
‘‘(C) This paragraph shall not apply to any individual
who, at the time of the Commissioner’s determination that
such individual is eligible for the payment of past-due
monthly benefits under this title—
‘‘(i) is afflicted with a medically determinable
impairment that is expected to result in death within
12 months; or
‘‘(ii) is ineligible for benefits under this title
and the Commissioner determines that such individ-
ual is likely to remain ineligible for the next 12
months.
‘‘(D) For purposes of this paragraph, the term ‘bene-
fits under this title’ includes supplementary payments pur-
suant to an agreement for Federal administration under
section 1616(a), and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93–66.’’.
(b) CONFORMING AMENDMENT.—Section 1631(a)(1)
(42 U.S.C. 1383(a)(1)) is amended by inserting ‘‘(subject
445
to paragraph (10))’’ immediately before ‘‘in such install-
ments’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section are effective with respect to past-due
benefits payable under title XVI of the Social Secu-
rity Act after the third month following the month
in which this Act is enacted.
(2) BENEFITS PAYABLE UNDER TITLE XVI.—
For purposes of this subsection, the term ‘‘benefits
payable under title XVI of the Social Security Act’’
includes supplementary payments pursuant to an
agreement for Federal administration under section
1616(a) of the Social Security Act, and payments
pursuant to an agreement entered into under section
212(b) of Public Law 93–66.
SEC. 4222. RECOVERY OF SUPPLEMENTAL SECURITY IN-
COME OVERPAYMENTS FROM SOCIAL SECU-
RITY BENEFITS.
(a) IN GENERAL.—Part A of title XI is amended by
adding at the end the following new section:
‘‘RECOVERY OF SSI OVERPAYMENTS FROM SOCIAL
SECURITY BENEFITS
‘‘SEC. 1146. (a) IN GENERAL.—Whenever the Com-
missioner of Social Security determines that more than
the correct amount of any payment has been made to any
446
person under the supplemental security income program
authorized by title XVI, and the Commissioner is unable
to make proper adjustment or recovery of the amount so
incorrectly paid as provided in section 1631(b), the Com-
missioner (notwithstanding section 207) may recover the
amount incorrectly paid by decreasing any amount which
is payable under the Federal Old-Age and Survivors Insur-
ance program or the Federal Disability Insurance pro-
gram authorized by title II to that person or that person’s
estate.
‘‘(b) NO EFFECT ON SSI BENEFIT ELIGIBILITY OR
AMOUNT.—Notwithstanding subsections (a) and (b) of
section 1611, in any case in which the Commissioner takes
action in accordance with subsection (a) to recover an
overpayment from any person, neither that person, nor
any individual whose eligibility or benefit amount is deter-
mined by considering any part of that person’s income,
shall, as a result of such action—
‘‘(1) become eligible under the program of sup-
plemental security income benefits under title XVI,
or
‘‘(2) if such person or individual is already so
eligible, become eligible for increased benefits there-
under.
447
‘‘(c) PROGRAM UNDER TITLE XVI.—For purposes of
this section, the term ‘supplemental security income pro-
gram authorized by title XVI’ includes supplementary pay-
ments pursuant to an agreement for Federal administra-
tion under section 1616(a), and payments pursuant to an
agreement entered into under section 212(b) of Public
Law 93–66.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 204 (42 U.S.C. 404) is amended by
adding at the end the following new subsection:
‘‘(g) For payments which are adjusted or withheld
to recover an overpayment of supplemental security in-
come benefits paid under title XVI (including State sup-
plementary payments which were paid under an agreement
pursuant to section 1616(a) or section 212(b) of Public
Law 93-66), see section 1146.’’.
(2) Section 1631(b) is amended by adding at
the end the following new paragraph:
‘‘(5) For the recovery of overpayments of benefits
under this title from benefits payable under title II, see
section 1146.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act and shall apply to overpayments outstanding
on or after such date.
448
SEC. 4223. REGULATIONS.
Within 3 months after the date of the enactment of
this Act, the Commissioner of Social Security shall pre-
scribe such regulations as may be necessary to implement
the amendments made by this chapter.
CHAPTER 4—STATE SUPPLEMENTATION
PROGRAMS
SEC. 4225. REPEAL OF MAINTENANCE OF EFFORT RE-
QUIREMENTS 
APPLICABLE 
TO 
OPTIONAL
STATE PROGRAMS FOR SUPPLEMENTATION
OF SSI BENEFITS.
Section 1618 (42 U.S.C. 1382g) is hereby repealed.
CHAPTER 5—STUDIES REGARDING SUP-
PLEMENTAL SECURITY INCOME PRO-
GRAM
SEC. 4231. ANNUAL REPORT ON THE SUPPLEMENTAL SECU-
RITY INCOME PROGRAM.
Title XVI (42 U.S.C. 1381 et seq.), as amended by
section 4201(c) of this Act, is amended by adding at the
end the following new section:
‘‘ANNUAL REPORT ON PROGRAM
‘‘SEC. 1637. (a) Not later than May 30 of each year,
the Commissioner of Social Security shall prepare and de-
liver a report annually to the President and the Congress
regarding the program under this title, including—
450
‘‘(10) a historical summary of statutory
changes to this title; and
‘‘(11) such other information as the Commis-
sioner deems useful.
‘‘(b) Each member of the Social Security Advisory
Board shall be permitted to provide an individual report,
or a joint report if agreed, of views of the program under
this title, to be included in the annual report required
under this section.’’.
SEC. 4232. STUDY OF DISABILITY DETERMINATION PROC-
ESS.
(a) IN GENERAL.—Not later than 90 days after the
date of the enactment of this Act, and from funds other-
wise appropriated, the Commissioner of Social Security
shall make arrangements with the National Academy of
Sciences, or other independent entity, to conduct a study
of the disability determination process under titles II and
XVI of the Social Security Act. This study shall be under-
taken in consultation with professionals representing ap-
propriate disciplines.
(b) STUDY COMPONENTS.—The study described in
subsection (a) shall include—
(1) an initial phase examining the appropriate-
ness of, and making recommendations regarding—
451
(A) the definitions of disability in effect on
the date of the enactment of this Act and the
advantages and disadvantages of alternative
definitions; and
(B) the operation of the disability deter-
mination process, including the appropriate
method of performing comprehensive assess-
ments of individuals under age 18 with physical
and mental impairments;
(2) a second phase, which may be concurrent
with the initial phase, examining the validity, reli-
ability, and consistency with current scientific knowl-
edge of the standards and individual listings in the
Listing of Impairments set forth in appendix 1 of
subpart P of part 404 of title 20, Code of Federal
Regulations, and of related evaluation procedures as
promulgated by the Commissioner of Social Security;
and
(3) such other issues as the applicable entity
considers appropriate.
(c) REPORTS AND REGULATIONS.—
(1) REPORTS.—The Commissioner of Social Se-
curity shall request the applicable entity, to submit
an interim report and a final report of the findings
and recommendations resulting from the study de-
452
scribed in this section to the President and the Con-
gress not later than 18 months and 24 months, re-
spectively, from the date of the contract for such
study, and such additional reports as the Commis-
sioner deems appropriate after consultation with the
applicable entity.
(2) REGULATIONS.—The Commissioner of So-
cial Security shall review both the interim and final
reports, and shall issue regulations implementing
any necessary changes following each report.
SEC. 4233. STUDY BY GENERAL ACCOUNTING OFFICE.
Not later than January 1, 1999, the Comptroller
General of the United States shall study and report on—
(1) the impact of the amendments made by,
and the provisions of, this subtitle on the supple-
mental security income program under title XVI of
the Social Security Act; and
(2) extra expenses incurred by families of chil-
dren receiving benefits under such title that are not
covered by other Federal, State, or local programs.
453
CHAPTER 6—NATIONAL COMMISSION ON
THE FUTURE OF DISABILITY
SEC. 4241. ESTABLISHMENT.
There is established a commission to be known as the
National Commission on the Future of Disability (referred
to in this chapter as the ‘‘Commission’’).
SEC. 4242. DUTIES OF THE COMMISSION.
(a) IN GENERAL.—The Commission shall develop
and carry out a comprehensive study of all matters related
to the nature, purpose, and adequacy of all Federal pro-
grams serving individuals with disabilities. In particular,
the Commission shall study the disability insurance pro-
gram under title II of the Social Security Act and the sup-
plemental security income disability program under title
XVI of such Act.
(b) MATTERS STUDIED.—The Commission shall pre-
pare an inventory of Federal programs serving individuals
with disabilities, and shall examine—
(1) trends and projections regarding the size
and characteristics of the population of individuals
with disabilities, and the implications of such analy-
ses for program planning;
(2) the feasibility and design of performance
standards for the Nation’s disability programs;
454
(3) the adequacy of Federal efforts in rehabili-
tation research and training, and opportunities to
improve the lives of individuals with disabilities
through all manners of scientific and engineering re-
search; and
(4) the adequacy of policy research available to
the Federal Government, and what actions might be
undertaken to improve the quality and scope of such
research.
(c) RECOMMENDATIONS.—The Commission shall
submit to the appropriate committees of the Congress and
to the President recommendations and, as appropriate,
proposals for legislation, regarding—
(1) which (if any) Federal disability programs
should be eliminated or augmented;
(2) what new Federal disability programs (if
any) should be established;
(3) the suitability of the organization and loca-
tion of disability programs within the Federal Gov-
ernment;
(4) other actions the Federal Government
should take to prevent disabilities and disadvantages
associated with disabilities; and
(5) such other matters as the Commission con-
siders appropriate.
455
SEC. 4243. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—
(1) IN
GENERAL.—The Commission shall be
composed of 15 members, of whom—
(A) five shall be appointed by the Presi-
dent, of whom not more than 3 shall be of the
same major political party;
(B) three shall be appointed by the Major-
ity Leader of the Senate;
(C) two shall be appointed by the Minority
Leader of the Senate;
(D) three shall be appointed by the Speak-
er of the House of Representatives; and
(E) two shall be appointed by the Minority
Leader of the House of Representatives.
(2) REPRESENTATION.—The Commission mem-
bers shall be chosen based on their education, train-
ing, or experience. In appointing individuals as
members of the Commission, the President and the
Majority and Minority Leaders of the Senate and
the Speaker and Minority Leader of the House of
Representatives shall seek to ensure that the mem-
bership of the Commission reflects the general inter-
ests of the business and taxpaying community and
the diversity of individuals with disabilities in the
United States.
456
(b) COMPTROLLER
GENERAL.—The Comptroller
General of the United States shall advise the Commission
on the methodology and approach of the study of the Com-
mission.
(c) TERM OF APPOINTMENT.—The members shall
serve on the Commission for the life of the Commission.
(d) MEETINGS.—The Commission shall locate its
headquarters in the District of Columbia, and shall meet
at the call of the Chairperson, but not less than 4 times
each year during the life of the Commission.
(e) QUORUM.—Ten members of the Commission shall
constitute a quorum, but a lesser number may hold hear-
ings.
(f) CHAIRPERSON
AND VICE CHAIRPERSON.—Not
later than 15 days after the members of the Commission
are appointed, such members shall designate a Chair-
person and Vice Chairperson from among the members of
the Commission.
(g) CONTINUATION OF MEMBERSHIP.—If a member
of the Commission becomes an officer or employee of any
government after appointment to the Commission, the in-
dividual may continue as a member until a successor mem-
ber is appointed.
(h) VACANCIES.—A vacancy on the Commission shall
be filled in the manner in which the original appointment
457
was made not later than 30 days after the Commission
is given notice of the vacancy.
(i) COMPENSATION.—Members of the Commission
shall receive no additional pay, allowances, or benefits by
reason of their service on the Commission.
(j) TRAVEL EXPENSES.—Each member of the Com-
mission shall receive travel expenses, including per diem
in lieu of subsistence, in accordance with sections 5702
and 5703 of title 5, United States Code.
SEC. 4244. STAFF AND SUPPORT SERVICES.
(a) DIRECTOR.—
(1) APPOINTMENT.—Upon consultation with
the members of the Commission, the Chairperson
shall appoint a Director of the Commission.
(2) COMPENSATION.—The Director shall be
paid the rate of basic pay for level V of the Execu-
tive Schedule.
(b) STAFF.—With the approval of the Commission,
the Director may appoint such personnel as the Director
considers appropriate.
(c) APPLICABILITY OF CIVIL SERVICE LAWS.—The
staff of the Commission shall be appointed without regard
to the provisions of title 5, United States Code, governing
appointments in the competitive service, and shall be paid
without regard to the provisions of chapter 51 and sub-
458
chapter III of chapter 53 of such title relating to classi-
fication and General Schedule pay rates.
(d) EXPERTS
AND CONSULTANTS.—With the ap-
proval of the Commission, the Director may procure tem-
porary and intermittent services under section 3109(b) of
title 5, United States Code.
(e) STAFF OF FEDERAL AGENCIES.—Upon the re-
quest of the Commission, the head of any Federal agency
may detail, on a reimbursable basis, any of the personnel
of such agency to the Commission to assist in carrying
out the duties of the Commission under this chapter.
(f) OTHER RESOURCES.—The Commission shall have
reasonable access to materials, resources, statistical data,
and other information from the Library of Congress and
agencies and elected representatives of the executive and
legislative branches of the Federal Government. The
Chairperson of the Commission shall make requests for
such access in writing when necessary.
(g) PHYSICAL FACILITIES.—The Administrator of
the General Services Administration shall locate suitable
office space for the operation of the Commission. The fa-
cilities shall serve as the headquarters of the Commission
and shall include all necessary equipment and incidentals
required for proper functioning of the Commission.
459
SEC. 4245. POWERS OF COMMISSION.
(a) HEARINGS.—The Commission may conduct pub-
lic hearings or forums at the discretion of the Commission,
at any time and place the Commission is able to secure
facilities and witnesses, for the purpose of carrying out
the duties of the Commission under this chapter.
(b) DELEGATION OF AUTHORITY.—Any member or
agent of the Commission may, if authorized by the Com-
mission, take any action the Commission is authorized to
take by this section.
(c) INFORMATION.—The Commission may secure di-
rectly from any Federal agency information necessary to
enable the Commission to carry out its duties under this
chapter. Upon request of the Chairperson or Vice Chair-
person of the Commission, the head of a Federal agency
shall furnish the information to the Commission to the ex-
tent permitted by law.
(d) GIFTS, BEQUESTS, AND DEVISES.—The Commis-
sion may accept, use, and dispose of gifts, bequests, or
devises of services or property, both real and personal, for
the purpose of aiding or facilitating the work of the Com-
mission. Gifts, bequests, or devises of money and proceeds
from sales of other property received as gifts, bequests,
or devises shall be deposited in the Treasury and shall be
available for disbursement upon order of the Commission.
460
(e) MAILS.—The Commission may use the United
States mails in the same manner and under the same con-
ditions as other Federal agencies.
SEC. 4246. REPORTS.
(a) INTERIM REPORT.—Not later than 1 year prior
to the date on which the Commission terminates pursuant
to section 4247, the Commission shall submit an interim
report to the President and to the Congress. The interim
report shall contain a detailed statement of the findings
and conclusions of the Commission, together with the
Commission’s recommendations for legislative and admin-
istrative action, based on the activities of the Commission.
(b) FINAL REPORT.—Not later than the date on
which the Commission terminates, the Commission shall
submit to the Congress and to the President a final report
containing—
(1) a detailed statement of final findings, con-
clusions, and recommendations; and
(2) an assessment of the extent to which rec-
ommendations of the Commission included in the in-
terim report under subsection (a) have been imple-
mented.
(c) PRINTING AND PUBLIC DISTRIBUTION.—Upon
receipt of each report of the Commission under this sec-
tion, the President shall—
461
(1) order the report to be printed; and
(2) make the report available to the public upon
request.
SEC. 4247. TERMINATION.
The Commission shall terminate on the date that is
2 years after the date on which the members of the Com-
mission have met and designated a Chairperson and Vice
Chairperson.
SEC. 4248. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums
as are necessary to carry out the purposes of the Commis-
sion.
Subtitle C—Child Support
SEC. 4300. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in
this subtitle an amendment is expressed in terms of an
amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that sec-
tion or other provision of the Social Security Act.
CHAPTER 1—ELIGIBILITY FOR SERVICES;
DISTRIBUTION OF PAYMENTS
SEC. 4301. STATE OBLIGATION TO PROVIDE CHILD SUP-
PORT ENFORCEMENT SERVICES.
(a) STATE PLAN REQUIREMENTS.—Section 454 (42
U.S.C. 654) is amended—
462
(1) by striking paragraph (4) and inserting the
following new paragraph:
‘‘(4) provide that the State will—
‘‘(A) provide services relating to the estab-
lishment of paternity or the establishment,
modification, or enforcement of child support
obligations, as appropriate, under the plan with
respect to—
‘‘(i) each child for whom (I) assist-
ance is provided under the State program
funded under part A of this title, (II) ben-
efits or services for foster care mainte-
nance are provided under the State pro-
gram funded under part E of this title, or
(III) medical assistance is provided under
the State plan under title XIX, unless, in
accordance with paragraph (29), good
cause or other exceptions exist;
‘‘(ii) any other child, if an individual
applies for such services with respect to
the child; and
‘‘(B) enforce any support obligation estab-
lished with respect to—
‘‘(i) a child with respect to whom the
State provides services under the plan; or
463
‘‘(ii) the custodial parent of such a
child;’’; and
(2) in paragraph (6)—
(A) by striking ‘‘provide that’’ and insert-
ing ‘‘provide that—’’;
(B) by striking subparagraph (A) and in-
serting the following new subparagraph:
‘‘(A) services under the plan shall be made
available to residents of other States on the
same terms as to residents of the State submit-
ting the plan;’’;
(C) in subparagraph (B), by inserting ‘‘on
individuals not receiving assistance under any
State program funded under part A’’ after
‘‘such services shall be imposed’’;
(D) in each of subparagraphs (B), (C),
(D), and (E)—
(i) by indenting the subparagraph in
the same manner as, and aligning the left
margin of the subparagraph with the left
margin of, the matter inserted by subpara-
graph (B) of this paragraph; and
(ii) by striking the final comma and
inserting a semicolon; and
464
(E) in subparagraph (E), by indenting
each of clauses (i) and (ii) 2 additional ems.
(b) CONTINUATION
OF SERVICES
FOR FAMILIES
CEASING TO RECEIVE ASSISTANCE UNDER THE STATE
PROGRAM FUNDED UNDER PART A.—Section 454 (42
U.S.C. 654) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(23);
(2) by striking the period at the end of para-
graph (24) and inserting ‘‘; and’’; and
(3) by adding after paragraph (24) the follow-
ing new paragraph:
‘‘(25) provide that if a family with respect to
which services are provided under the plan ceases to
receive assistance under the State program funded
under part A, the State shall provide appropriate no-
tice to the family and continue to provide such serv-
ices, subject to the same conditions and on the same
basis as in the case of other individuals to whom
services are furnished under the plan, except that an
application or other request to continue services
shall not be required of such a family and paragraph
(6)(B) shall not apply to the family.’’.
(c) CONFORMING AMENDMENTS.—
465
(1) Section 452(b) (42 U.S.C. 652(b)) is
amended by 
striking 
‘‘454(6)’’ 
and 
inserting
‘‘454(4)’’.
(2) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each
place it appears and inserting ‘‘454(4)(A)(ii)’’.
(3) 
Section 
466(a)(3)(B) 
(42 
U.S.C.
666(a)(3)(B)) is amended by striking ‘‘in the case of
overdue support which a State has agreed to collect
under section 454(6)’’ and inserting ‘‘in any other
case’’.
(4) Section 466(e) (42 U.S.C. 666(e)) is
amended by striking ‘‘paragraph (4) or (6) of sec-
tion 454’’ and inserting ‘‘section 454(4)’’.
SEC. 4302. DISTRIBUTION OF CHILD SUPPORT COLLEC-
TIONS.
(a) IN GENERAL.—Section 457 (42 U.S.C. 657) is
amended to read as follows:
‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.
‘‘(a) IN GENERAL.—Subject to subsection (e), an
amount collected on behalf of a family as support by a
State pursuant to a plan approved under this part shall
be distributed as follows:
466
‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the
case of a family receiving assistance from the State,
the State shall—
‘‘(A) pay to the Federal Government the
Federal share of the amount so collected; and
‘‘(B) retain, or distribute to the family, the
State share of the amount so collected.
‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS-
SISTANCE.—In the case of a family that formerly re-
ceived assistance from the State:
‘‘(A) CURRENT SUPPORT PAYMENTS.—To
the extent that the amount so collected does not
exceed the amount required to be paid to the
family for the month in which collected, the
State shall distribute the amount so collected to
the family.
‘‘(B) PAYMENTS OF ARREARAGES.—To the
extent that the amount so collected exceeds the
amount required to be paid to the family for
the month in which collected, the State shall
distribute the amount so collected as follows:
‘‘(i) DISTRIBUTION
OF
ARREARAGES
THAT
ACCRUED
AFTER
THE
FAMILY
CEASED TO RECEIVE ASSISTANCE.—
467
‘‘(I) PRE-OCTOBER 1997.—Except
as provided in subclause (II), the pro-
visions of this section (other than sub-
section (b)(1)) as in effect and applied
on the day before the date of the en-
actment of section 4302 of the Per-
sonal Responsibility and Work Oppor-
tunity Act of 1996 shall apply with
respect to the distribution of support
arrearages that—
‘‘(aa) accrued after the fam-
ily ceased to receive assistance,
and
‘‘(bb) are collected before
October 1, 1997.
‘‘(II) POST-SEPTEMBER
1997.—
With respect to the amount so col-
lected on or after October 1, 1997 (or
before such date, at the option of the
State)—
‘‘(aa) IN
GENERAL.—The
State shall first distribute the
amount so collected (other than
any amount described in clause
(iv)) to the family to the extent
468
necessary to satisfy any support
arrearages with respect to the
family that accrued after the
family ceased to receive assist-
ance from the State.
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR
ASSISTANCE
PROVIDED
TO
THE
FAMILY.—
After the application of division
(aa) and clause (ii)(II)(aa) with
respect to the amount so col-
lected, the State shall retain the
State share of the amount so col-
lected, and pay to the Federal
Government the Federal share
(as defined in subsection (c)(2))
of the amount so collected, but
only to the extent necessary to
reimburse amounts paid to the
family as assistance by the State.
‘‘(cc) DISTRIBUTION OF THE
REMAINDER
TO
THE
FAMILY.—
To the extent that neither divi-
sion (aa) nor division (bb) applies
to the amount so collected, the
469
State shall distribute the amount
to the family.
‘‘(ii) DISTRIBUTION OF ARREARAGES
THAT ACCRUED BEFORE THE FAMILY RE-
CEIVED ASSISTANCE.—
‘‘(I) PRE-OCTOBER 2000.—Except
as provided in subclause (II), the pro-
visions of this section (other than sub-
section (b)(1)) as in effect and applied
on the day before the date of the en-
actment of section 4302 of the Per-
sonal Responsibility and Work Oppor-
tunity Act of 1996 shall apply with
respect to the distribution of support
arrearages that—
‘‘(aa) accrued before the
family received assistance, and
‘‘(bb) are collected before
October 1, 2000.
‘‘(II) POST-SEPTEMBER
2000.—
Unless, based on the report required
by paragraph (4), the Congress deter-
mines otherwise, with respect to the
amount so collected on or after Octo-
470
ber 1, 2000 (or before such date, at
the option of the State)—
‘‘(aa) IN
GENERAL.—The
State shall first distribute the
amount so collected (other than
any amount described in clause
(iv)) to the family to the extent
necessary to satisfy any support
arrearages with respect to the
family that accrued before the
family received assistance from
the State.
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR
ASSISTANCE
PROVIDED
TO
THE
FAMILY.—
After the application of clause
(i)(II)(aa) and division (aa) with
respect to the amount so col-
lected, the State shall retain the
State share of the amount so col-
lected, and pay to the Federal
Government the Federal share
(as defined in subsection (c)(2))
of the amount so collected, but
only to the extent necessary to
471
reimburse amounts paid to the
family as assistance by the State.
‘‘(cc) DISTRIBUTION OF THE
REMAINDER
TO
THE
FAMILY.—
To the extent that neither divi-
sion (aa) nor division (bb) applies
to the amount so collected, the
State shall distribute the amount
to the family.
‘‘(iii) DISTRIBUTION OF ARREARAGES
THAT ACCRUED WHILE THE FAMILY RE-
CEIVED
ASSISTANCE.—In the case of a
family described in this subparagraph, the
provisions of paragraph (1) shall apply
with respect to the distribution of support
arrearages that accrued while the family
received assistance.
‘‘(iv) AMOUNTS
COLLECTED
PURSU-
ANT
TO
SECTION 464.—Notwithstanding
any other provision of this section, any
amount of support collected pursuant to
section 464 shall be retained by the State
to the extent past-due support has been as-
signed to the State as a condition of re-
ceiving assistance from the State, up to the
478
other party against whom a protective order
with respect to the former party has been en-
tered; and
‘‘(C) prohibitions against the release of in-
formation on the whereabouts of 1 party to an-
other party if the State has reason to believe
that the release of the information may result
in physical or emotional harm to the former
party.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective on October 1, 1997.
SEC. 4304. RIGHTS TO NOTIFICATION OF HEARINGS.
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as
amended by section 4302(b)(2) of this Act, is amended
by inserting after paragraph (11) the following new para-
graph:
‘‘(12) provide for the establishment of proce-
dures to require the State to provide individuals who
are applying for or receiving services under the State
plan, or who are parties to cases in which services
are being provided under the State plan—
‘‘(A) with notice of all proceedings in
which support obligations might be established
or modified; and