Union Calendar No. 113
106TH CONGRESS
1ST SESSION
H. R. 1802
[Report No. 106–182, Part I]
A BILL
To amend part E of title IV of the Social Security
Act to provide States with more funding and
greater flexibility in carrying out programs de-
signed to help children make the transition from
foster care to self-sufficiency, and for other pur-
poses.
JUNE 25, 1999
Committee on Commerce discharged; committed to the
Committee of the Whole House on the State of the
Union and ordered to be printed
IB
Union Calendar No. 113
106TH CONGRESS
1ST SESSION
H. R. 1802
[Report No. 106–182, Part I]
To amend part E of title IV of the Social Security Act to provide States
with more funding and greater flexibility in carrying out programs de-
signed to help children make the transition from foster care to self-
sufficiency, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 13, 1999
Mrs. JOHNSON of Connecticut (for herself and Mr. CARDIN) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Commerce, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
JUNE 10, 1999
Reported from the Committee on Ways and Means with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
JUNE 10, 1999
Referral to the Committee on Commerce extended for a period ending not
later than June 25, 1999
JUNE 25, 1999
Committee on Commerce discharged; committed to the Committee of the
Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on May 13, 1999]
A BILL
To amend part E of title IV of the Social Security Act
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to provide States with more funding and greater flexi-
bility in carrying out programs designed to help children
make the transition from foster care to self-sufficiency,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Fos-
ter Care Independence Act of 1999’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—IMPROVED INDEPENDENT LIVING PROGRAM
Subtitle A—Improved Independent Living Program
Sec. 101. Improved independent living program.
Subtitle B—Related Foster Care Provision
Sec. 111. Increase in amount of assets allowable for children in foster care.
Subtitle C—Medicaid Amendments
Sec. 121. State option of medicaid coverage for adolescents leaving foster care.
TITLE II—SSI FRAUD PREVENTION
Subtitle A—Fraud Prevention and Related Provisions
Sec. 201. Liability of representative payees for overpayments to deceased recipi-
ents.
Sec. 202. Recovery of overpayments of SSI benefits from lump sum SSI benefit
payments.
Sec. 203. Additional debt collection practices.
Sec. 204. Requirement to provide State prisoner information to Federal and fed-
erally assisted benefit programs.
Sec. 205. Rules relating to collection of overpayments from individuals convicted
of crimes.
Sec. 206. Treatment of assets held in trust under the SSI program.
Sec. 207. Disposal of resources for less than fair market value under the SSI pro-
gram.
Sec. 208. Administrative procedure for imposing penalties for false or misleading
statements.
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Sec. 209. Exclusion of representatives and health care providers convicted of vio-
lations from participation in social security programs.
Sec. 210. State data exchanges.
Sec. 211. Study on possible measures to improve fraud prevention and adminis-
trative processing.
Sec. 212. Annual report on amounts necessary to combat fraud.
Sec. 213. Computer matches with medicare and medicaid institutionalization
data.
Sec. 214. Access to information held by financial institutions.
Subtitle B—Benefits for Filipino Veterans of World War II
Sec. 251. Provision of reduced SSI benefit to certain individuals who provided
service to the Armed Forces of the United States in the Phil-
ippines during World War II after they move back to the Phil-
ippines.
TITLE III—CHILD SUPPORT
Sec. 301. Elimination of hold harmless provision for State share of distribution
of collected child support.
TITLE IV—TECHNICAL CORRECTIONS
Sec. 401. Technical corrections relating to amendments made by the Personal Re-
sponsibility and Work Opportunity Reconciliation Act of 1996.
TITLE 
I—IMPROVED 
INDE-
PENDENT LIVING PROGRAM
Subtitle A—Improved Independent
Living Program
SEC. 101. IMPROVED INDEPENDENT LIVING PROGRAM.
(a) FINDINGS.—The Congress finds the following:
(1) States are required to make reasonable efforts
to find adoptive families for all children, including
older children, for whom reunification with their bio-
logical family is not in the best interests of the child.
However, some older children will continue to live in
foster care. These children should be enrolled in an
Independent Living program designed and conducted
by State and local government to help prepare them
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for employment, postsecondary education, and suc-
cessful management of adult responsibilities.
(2) About 20,000 adolescents leave the Nation’s
foster care system each year because they have reached
18 years of age and are expected to support them-
selves.
(3) Congress has received extensive information
that adolescents leaving foster care have significant
difficulty making a successful transition to adulthood;
this information shows that children aging out of fos-
ter care show high rates of homelessness, non-marital
childbearing, poverty, and delinquent or criminal be-
havior; they are also frequently the target of crime
and physical assaults.
(4) The Nation’s State and local governments,
with financial support from the Federal Government,
should offer an extensive program of education, train-
ing, employment, and financial support for young
adults leaving foster care, with participation in such
program beginning several years before high school
graduation and continuing, as needed, until the
young adults emancipated from foster care establish
independence or reach 21 years of age.
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(b) IMPROVED INDEPENDENT LIVING PROGRAM.—Sec-
tion 477 of the Social Security Act (42 U.S.C. 677) is
amended to read as follows:
‘‘SEC. 477. INDEPENDENT LIVING PROGRAM.
‘‘(a) PURPOSE.—The purpose of this section is to pro-
vide States with flexible funding that will enable programs
to be designed and conducted—
‘‘(1) to identify children who are likely to re-
main in foster care until 18 years of age and to de-
sign programs that help these children make the tran-
sition to self-sufficiency by providing services such as
assistance in obtaining a high school diploma, career
exploration, vocational training, job placement and
retention, training in daily living skills, training in
budgeting and financial management skills, substance
abuse prevention, and preventive health activities (in-
cluding smoking avoidance, nutrition education, and
pregnancy prevention);
‘‘(2) to help children who are likely to remain in
foster care until 18 years of age receive the education,
training, and services necessary to obtain employ-
ment;
‘‘(3) to help children who are likely to remain in
foster care until 18 years of age prepare for and enter
postsecondary training and education institutions;
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‘‘(4) to provide personal and emotional support
to children aging out of foster care, through mentors
and the promotion of interactions with dedicated
adults; and
‘‘(5) to provide financial, housing, counseling,
employment, education, and other appropriate sup-
port and services to former foster care recipients be-
tween 18 and 21 years of age to complement their
own efforts to achieve self-sufficiency and to assure
that program participants recognize and accept their
personal responsibility for preparing for and then
making the transition from adolescence to adulthood.
‘‘(b) APPLICATIONS.—
‘‘(1) IN GENERAL.—A State may apply for funds
from its allotment under subsection (c) for a period
of 5 consecutive fiscal years by submitting to the Sec-
retary, in writing, a plan that meets the requirements
of paragraph (2) and the certifications required by
paragraph (3) with respect to the plan.
‘‘(2) STATE PLAN.—A plan meets the require-
ments of this paragraph if the plan specifies which
State agency or agencies will administer, supervise,
or oversee the programs carried out under the plan,
and describes how the State intends to do the fol-
lowing:
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‘‘(A) Design and deliver programs to
achieve the purposes of this section.
‘‘(B) Ensure that all political subdivisions
in the State are served by the program, though
not necessarily in a uniform manner.
‘‘(C) Ensure that the programs serve chil-
dren of various ages and at various stages of
achieving independence.
‘‘(D) Involve the public and private sectors
in helping adolescents in foster care achieve
independence.
‘‘(E) Use objective criteria for determining
eligibility for benefits and services under the pro-
grams, and for ensuring fair and equitable treat-
ment of benefit recipients.
‘‘(F) Cooperate in national evaluations of
the effects of the programs in achieving the pur-
poses of this section.
‘‘(3) CERTIFICATIONS.—The certifications re-
quired by this paragraph with respect to a plan are
the following:
‘‘(A) A certification by the chief executive
officer of the State that the State will provide as-
sistance and services to children who have left
foster care but have not attained 21 years of age.
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‘‘(B) A certification by the chief executive
officer of the State that not more than 30 percent
of the amounts paid to the State from its allot-
ment under subsection (c) for a fiscal year will
be expended for room or board for children who
have left foster care and have attained 18 years
of age but not 21 years of age.
‘‘(C) A certification by the chief executive
officer of the State that none of the amounts paid
to the State from its allotment under subsection
(c) will be expended for room or board for any
child who has not attained 18 years of age.
‘‘(D) A certification by the chief executive
officer of the State that the State will use train-
ing funds provided under the program of Federal
payments for foster care and adoption assistance
to provide training to help foster parents, work-
ers in group homes, and case managers under-
stand and address the issues confronting adoles-
cents preparing for independent living, and will,
to the extent possible, coordinate such training
with the independent living program conducted
for adolescents.
‘‘(E) A certification by the chief executive
officer of the State that the State has consulted
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widely with public and private organizations in
developing the plan and that the State has given
all interested members of the public at least 30
days to submit comments on the plan.
‘‘(F) A certification by the chief executive
officer of the State that the State will make every
effort to coordinate the State programs receiving
funds provided from an allotment made to the
State under subsection (c) with other Federal
and State programs for youth (especially transi-
tional living youth projects funded under part B
of title III of the Juvenile Justice and Delin-
quency Prevention Act of 1974), abstinence edu-
cation programs, local housing programs, pro-
grams for disabled youth (especially sheltered
workshops), and school-to-work programs offered
by high schools or local workforce agencies.
‘‘(G) A certification by the chief executive
officer of the State that each Indian tribe in the
State has been consulted about the programs to
be carried out under the plan; that there have
been efforts to coordinate the programs with such
tribes; and that benefits and services under the
programs will be made available to Indian chil-
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dren in the State on the same basis as to other
children in the State.
‘‘(H) A certification by the chief executive
officer of the State that the State will ensure that
adolescents participating in the program under
this section participate directly in designing
their own program activities that prepare them
for independent living and that the adolescents
accept personal responsibility for living up to
their part of the program.
‘‘(I) A certification by the chief executive of-
ficer of the State that the State has established
and will enforce standards and procedures to
prevent fraud and abuse in the programs carried
out under the plan.
‘‘(4) APPROVAL.—The Secretary shall approve
an application submitted by a State pursuant to
paragraph (1) for a period if—
‘‘(A) the application is submitted on or be-
fore June 30 of the calendar year in which such
period begins; and
‘‘(B) the Secretary finds that the applica-
tion contains the material required by para-
graph (1).
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‘‘(5) 
AUTHORITY
TO
IMPLEMENT
CERTAIN
AMENDMENTS; NOTIFICATION.—A State with an ap-
plication approved under paragraph (4) may imple-
ment any amendment to the plan contained in the
application if the application, incorporating the
amendment, would be approvable under paragraph
(4). Within 30 days after a State implements any
such amendment, the State shall notify the Secretary
of the amendment.
‘‘(6) AVAILABILITY.—The State shall make avail-
able to the public any application submitted by the
State pursuant to paragraph (1), and a brief sum-
mary of the plan contained in the application.
‘‘(c) ALLOTMENTS TO STATES.—
‘‘(1) IN GENERAL.—From the amount specified
in subsection (h) that remains after applying sub-
section (g)(2) for a fiscal year, the Secretary shall
allot to each State with an application approved
under subsection (b) for the fiscal year the amount
which bears the same ratio to such remaining amount
as the number of children in foster care under a pro-
gram of the State in the most recent fiscal year for
which such information is available bears to the total
number of children in foster care in all States for
such most recent fiscal year.
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‘‘(2) HOLD
HARMLESS
PROVISION.—The Sec-
retary shall ratably reduce the allotments made to
States pursuant to paragraph (1) for a fiscal year to
the extent necessary to ensure that the amount allot-
ted to each State under paragraph (1) and this para-
graph for the fiscal year is not less than the amount
payable to the State under this section (as in effect
before the enactment of the Foster Care Independence
Act of 1999) for fiscal year 1998.
‘‘(3) REALLOTMENT
OF
UNUSED
FUNDS.—The
Secretary shall use the formula provided in para-
graph (1) of this subsection to reallot among the
States with applications approved under subsection
(b) for a fiscal year any amount allotted to a State
under this subsection for the preceding year that is
not payable to the State for the preceding year.
‘‘(d) USE OF FUNDS.—
‘‘(1) IN GENERAL.—A State to which an amount
is paid from its allotment under subsection (c) may
use the amount in any manner that is reasonably cal-
culated to accomplish the purposes of this section.
‘‘(2) NO
SUPPLANTATION
OF
OTHER
FUNDS
AVAILABLE
FOR
SAME
GENERAL
PURPOSES.—The
amounts paid to a State from its allotment under
subsection (c) shall be used to supplement and not
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supplant any other funds which are available for the
same general purposes in the State.
‘‘(e) PENALTIES.—
‘‘(1) USE
OF
GRANT
IN
VIOLATION
OF
THIS
PART.—If the Secretary is made aware, by an audit
conducted under chapter 75 of title 31, United States
Code, or by any other means, that a program receiv-
ing funds from an allotment made to a State under
subsection (c) has been operated in a manner that is
inconsistent with, or not disclosed in the State appli-
cation approved under subsection (b), the Secretary
shall assess a penalty against the State in an amount
equal to not less than 1 percent and not more than
5 percent of the amount of the allotment.
‘‘(2) FAILURE TO COMPLY WITH DATA REPORT-
ING
REQUIREMENT.—The Secretary shall assess a
penalty against a State that fails during a fiscal year
to comply with an information collection plan imple-
mented under subsection (f) in an amount equal to
not less than 1 percent and not more than 5 percent
of the amount allotted to the State for the fiscal year.
‘‘(3) PENALTIES
BASED
ON
DEGREE
OF
NON-
COMPLIANCE.—The Secretary shall assess penalties
under this subsection based on the degree of non-
compliance.
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‘‘(f) DATA COLLECTION AND PERFORMANCE MEASURE-
MENT.—
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with State and local public officials responsible
for administering independent living and other child
welfare programs, child welfare advocates, members of
Congress, youth service providers, and researchers,
shall—
‘‘(A) develop outcome measures (including
measures of educational attainment, employ-
ment, avoidance of dependency, homelessness,
nonmarital childbirth, and high-risk behaviors)
that can be used to assess the performance of
States in operating independent living pro-
grams;
‘‘(B) identify data elements needed to
track—
‘‘(i) the number and characteristics of
children receiving services under this sec-
tion;
‘‘(ii) the type and quantity of services
being provided; and
‘‘(iii) State performance on the out-
come measures; and
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‘‘(C) develop and implement a plan to col-
lect the needed information beginning with the
2nd fiscal year beginning after the date of the
enactment of this section.
‘‘(2) REPORT
TO
THE
CONGRESS.—Within 12
months after the date of the enactment of this section,
the Secretary shall submit to the Committee on Ways
and Means of the House of Representatives and the
Committee on Finance of the Senate a report detail-
ing the plans and timetable for collecting from the
States the information described in paragraph (1).
‘‘(g) EVALUATIONS.—
‘‘(1) IN GENERAL.—The Secretary shall conduct
evaluations of such State programs funded under this
section as the Secretary deems to be innovative or of
potential national significance. The evaluation of any
such program shall include information on the effects
of the program on education, employment, and per-
sonal development. To the maximum extent prac-
ticable, the evaluations shall be based on rigorous sci-
entific standards including random assignment to
treatment and control groups. The Secretary is en-
couraged to work directly with State and local gov-
ernments to design methods for conducting the evalua-
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tions, directly or by grant, contract, or cooperative
agreement.
‘‘(2) FUNDING OF EVALUATIONS.—The Secretary
shall reserve 1.5 percent of the amount specified in
subsection (h) for a fiscal year to carry out, during
the fiscal year, evaluation, technical assistance, per-
formance measurement, and data collection activities
related to this section, directly or through grants, con-
tracts, or cooperative agreements with appropriate en-
tities.
‘‘(h) LIMITATIONS ON AUTHORIZATION OF APPROPRIA-
TIONS.—To carry out this section and for payments to
States under section 474(a)(4), there are authorized to be
appropriated to the Secretary $140,000,000 for each fiscal
year.’’.
(c) PAYMENTS TO STATES.—Section 474(a)(4) of such
Act (42 U.S.C. 674(a)(4)) is amended to read as follows:
‘‘(4) the lesser of—
‘‘(A) 80 percent of the amount (if any) by
which—
‘‘(i) the total amount expended by the
State during the fiscal year in which the
quarter occurs to carry out programs in ac-
cordance with the State application ap-
proved under section 477(b) for the period
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in which the quarter occurs (including any
amendment that meets the requirements of
section 477(b)(5)); exceeds
‘‘(ii) the total amount of any penalties
assessed against the State under section
477(e) during the fiscal year in which the
quarter occurs; or
‘‘(B) the amount allotted to the State under
section 477 for the fiscal year in which the quar-
ter occurs, reduced by the total of the amounts
payable to the State under this paragraph for all
prior quarters in the fiscal year.’’.
(d) REGULATIONS.—Not later than 12 months after the
date of the enactment of this Act, the Secretary of Health
and Human Services shall issue such regulations as may
be necessary to carry out the amendments made by this sec-
tion.
(e) SENSE OF THE CONGRESS.—It is the sense of the
Congress that States should provide medical assistance
under the State plan approved under title XIX of the Social
Security Act to 18-, 19-, and 20-year-olds who have been
emancipated from foster care.
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Subtitle B—Related Foster Care
Provision
SEC. 111. INCREASE IN AMOUNT OF ASSETS ALLOWABLE
FOR CHILDREN IN FOSTER CARE.
Section 472(a) of the Social Security Act (42 U.S.C.
672(a)) is amended by adding at the end the following: ‘‘In
determining whether a child would have received aid under
a State plan approved under section 402 (as in effect on
July 16, 1996), a child whose resources (determined pursu-
ant to section 402(a)(7)(B), as so in effect) have a combined
value of not more than $10,000 shall be considered to be
a child whose resources have a combined value of not more
than $1,000 (or such lower amount as the State may deter-
mine for purposes of such section 402(a)(7)(B)).’’.
Subtitle C—Medicaid Amendments
SEC. 121. STATE OPTION OF MEDICAID COVERAGE FOR
ADOLESCENTS LEAVING FOSTER CARE.
(a) IN GENERAL.—Title XIX of the Social Security
Act is amended—
(1) in section 1902(a)(10)(A)(ii) (42 U.S.C.
1396a(a)(10)(A)(ii))—
(A) by striking ‘‘or’’ at the end of subclause
(XIII);
(B) by adding ‘‘or’’ at the end of subclause
(XIV); and
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(C) by adding at the end the following new
subclause:
‘‘(XV) who are independent foster
care adolescents (as defined in (section
1905(v)(1)), or who are within any
reasonable categories of such adoles-
cents specified by the State;’’; and
(2) by adding at the end of section 1905 (42
U.S.C. 1396d) the following new subsection:
‘‘(v)(1) For purposes of this title, the term ‘inde-
pendent foster care adolescent’ means an individual—
‘‘(A) who is under 21 years of age;
‘‘(B) who, on the individual’s 18th birthday, was
in foster care under the responsibility of a State; and
‘‘(C) whose assets, resources, and income do not
exceed such levels (if any) as the State may establish
consistent with paragraph (2).
‘‘(2) The levels established by a State under paragraph
(1)(C) may not be less than the corresponding levels applied
by the State under section 1931(b).
‘‘(3) A State may limit the eligibility of independent
foster care adolescents under section 1902(a)(10)(A)(ii)(XV)
to those individuals with respect to whom foster care main-
tenance payments or independent living services were fur-
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nished under a program funded under part E of title IV
before the date the individuals attained 18 years of age.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) apply to medical assistance for items and serv-
ices furnished on or after October 1, 1999.
TITLE II—SSI FRAUD
PREVENTION
Subtitle A—Fraud Prevention and
Related Provisions
SEC. 201. LIABILITY OF REPRESENTATIVE PAYEES FOR
OVERPAYMENTS TO DECEASED RECIPIENTS.
(a) AMENDMENT TO TITLE II.—Section 204(a)(2) of
the Social Security Act (42 U.S.C. 404(a)(2)) is amended
by adding at the end the following new sentence: ‘‘If any
payment of more than the correct amount is made to a rep-
resentative payee on behalf of an individual after the indi-
vidual’s death, the representative payee shall be liable for
the repayment of the overpayment, and the Commissioner
of Social Security shall establish an overpayment control
record under the social security account number of the rep-
resentative payee.’’.
(b) AMENDMENT TO TITLE XVI.—Section 1631(b)(2)
of such Act (42 U.S.C. 1383(b)(2)) is amended by adding
at the end the following new sentence: ‘‘If any payment of
more than the correct amount is made to a representative
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payee on behalf of an individual after the individual’s
death, the representative payee shall be liable for the repay-
ment of the overpayment, and the Commissioner of Social
Security shall establish an overpayment control record
under the social security account number of the representa-
tive payee.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to overpayments made 12 months or
more after the date of the enactment of this Act.
SEC. 202. RECOVERY OF OVERPAYMENTS OF SSI BENEFITS
FROM LUMP SUM SSI BENEFIT PAYMENTS.
(a) IN GENERAL.—Section 1631(b)(1)(B)(ii) of the So-
cial Security Act (42 U.S.C. 1383(b)(1)(B)(ii)) is
amended—
(1) by inserting ‘‘monthly’’ before ‘‘benefit pay-
ments’’; and
(2) by inserting ‘‘and in the case of an indi-
vidual or eligible spouse to whom a lump sum is pay-
able under this title (including under section 1616(a)
of this Act or under an agreement entered into under
section 212(a) of Public Law 93–66) shall, as at least
one means of recovering such overpayment, make the
adjustment or recovery from the lump sum payment
in an amount equal to not less than the lesser of the
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amount of the overpayment or 50 percent of the lump
sum payment,’’ before ‘‘unless fraud’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall take effect 12 months after the date of the en-
actment of this Act and shall apply to amounts incorrectly
paid which remain outstanding on or after such date.
SEC. 203. ADDITIONAL DEBT COLLECTION PRACTICES.
(a) IN GENERAL.—Section 1631(b) of the Social Secu-
rity Act (42 U.S.C. 1383(b)) is amended—
(1) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(2) by inserting after paragraph (3) the fol-
lowing:
‘‘(4)(A) With respect to any delinquent amount, the
Commissioner of Social Security may use the collection
practices described in sections 3711(f), 3716, 3717, and
3718 of title 31, United States Code, and in section 5514
of title 5, United States Code, all as in effect immediately
after the enactment of the Debt Collection Improvement Act
of 1996.
‘‘(B) For purposes of subparagraph (A), the term ‘de-
linquent amount’ means an amount—
‘‘(i) in excess of the correct amount of payment
under this title;
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‘‘(ii) paid to a person after such person has at-
tained 18 years of age; and
‘‘(iii) determined by the Commissioner of Social
Security, under regulations, to be otherwise unre-
coverable under this section after such person ceases
to be a beneficiary under this title.’’.
(b) CONFORMING AMENDMENTS.—Section 3701(d)(2)
of title 31, United States Code, is amended by striking ‘‘sec-
tion 204(f)’’ and inserting ‘‘sections 204(f) and 1631(b)(4)’’.
(c) TECHNICAL AMENDMENTS.—Section 204(f) of the
Social Security Act (42 U.S.C. 404(f)) is amended—
(1) 
by 
striking 
‘‘3711(e)’’ 
and 
inserting
‘‘3711(f)’’; and
(2) by inserting ‘‘all’’ before ‘‘as in effect’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to debt outstanding on or after the date
of the enactment of this Act.
SEC. 204. REQUIREMENT TO PROVIDE STATE PRISONER IN-
FORMATION TO FEDERAL AND FEDERALLY
ASSISTED BENEFIT PROGRAMS.
Section 1611(e)(1)(I)(ii)(II) of the Social Security Act
(42 U.S.C. 1382(e)(1)(I)(ii)(II)) is amended by striking ‘‘is
authorized to’’ and inserting ‘‘shall’’.
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SEC. 205. RULES RELATING TO COLLECTION OF OVERPAY-
MENTS FROM INDIVIDUALS CONVICTED OF
CRIMES.
(a) WAIVERS INAPPLICABLE TO OVERPAYMENTS BY
REASON OF PAYMENT IN MONTHS IN WHICH BENEFICIARY
IS A PRISONER OR A FUGITIVE.—
(1) AMENDMENT TO TITLE II.—Section 204(b) of
the Social Security Act (42 U.S.C. 404(b)) is
amended—
(A) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(B) by adding at the end the following:
‘‘(2) Paragraph (1) shall not apply with respect to any
payment to any person made during a month in which such
benefit was not payable under section 202(x).’’.
(2) 
AMENDMENT
TO
TITLE
XVI.—Section
1631(b)(1)(B)(i) 
of 
such 
Act 
(42 
U.S.C.
1383(b)(1)(B)(i)) is amended by inserting ‘‘unless (I)
section 1611(e)(1) prohibits payment to the person of
a benefit under this title for the month by reason of
confinement of a type described in clause (i) or (ii)
of section 202(x)(1)(A), or (II) section 1611(e)(5) pro-
hibits payment to the person of a benefit under this
title for the month,’’ after ‘‘administration of this
title,’’.
(b) 10-YEAR PERIOD OF INELIGIBILITY FOR PERSONS
FAILING TO NOTIFY COMMISSIONER OF OVERPAYMENTS IN
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MONTHS IN WHICH BENEFICIARY IS A PRISONER OR A FU-
GITIVE OR FAILING TO COMPLY WITH REPAYMENT SCHED-
ULE FOR SUCH OVERPAYMENTS.—
(1) AMENDMENT TO TITLE II.—Section 202(x) of
such Act (42 U.S.C. 402(x)) is amended by adding at
the end the following:
‘‘(4)(A) No person shall be considered entitled to
monthly insurance benefits under this section based on the
person’s disability or to disability insurance benefits under
section 223 otherwise payable during the 10-year period
that begins on the date the person—
‘‘(i) knowingly fails to timely notify the Com-
missioner of Social Security, in connection with any
application for benefits under this title, of any prior
receipt by such person of any benefit under this title
or title XVI in any month in which such benefit was
not payable under the preceding provisions of this
subsection, or
‘‘(ii) knowingly fails to comply with any sched-
ule imposed by the Commissioner which is for repay-
ment of overpayments comprised of payments de-
scribed in subparagraph (A) and which is in compli-
ance with section 204.
‘‘(B) The Commissioner of Social Security shall, in
addition to any other relevant factors, take into account
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any mental or linguistic limitations of a person (including
any lack of facility with the English language) in deter-
mining whether the person has knowingly failed to comply
with a requirement of clause (i) or (ii) of subparagraph
(A).’’.
(2) 
AMENDMENT
TO
TITLE
XVI.—Section
1611(e)(1) of such Act (42 U.S.C. 1382(e)(1)) is
amended by adding at the end the following:
‘‘(J)(i) A person shall not be considered an eligible in-
dividual or eligible spouse for purposes of benefits under
this title by reason of disability, during the 10-year period
that begins on the date the person—
‘‘(I) knowingly fails to timely notify the Com-
missioner of Social Security, in an application for
benefits under this title, of any prior receipt by the
person of a benefit under this title or title II in a
month in which payment to the person of a benefit
under this title was prohibited by—
‘‘(aa) the preceding provisions of this para-
graph by reason of confinement of a type de-
scribed 
in 
clause 
(i) 
or 
(ii) 
of 
section
202(x)(1)(A); or
‘‘(bb) section 1611(e)(4); or
‘‘(II) knowingly fails to comply with any sched-
ule imposed by the Commissioner which is for repay-
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ment of overpayments comprised of payments de-
scribed in clause (i) of this subparagraph and which
is in compliance with section 1631(b).
‘‘(ii) The Commissioner of Social Security shall, in ad-
dition to any other relevant factors, take into account any
mental or linguistic limitations of a person (including any
lack of facility with the English language) in determining
whether the person has knowingly failed to comply with a
requirement of subclause (I) or (II) of clause (i).’’.
(c) CONTINUED COLLECTION EFFORTS AGAINST PRIS-
ONERS.—
(1) AMENDMENT TO TITLE II.—Section 204(b) of
such Act (42 U.S.C. 404(b)), as amended by sub-
section (a)(1) of this section, is amended further by
adding at the end the following new paragraph:
‘‘(3) The Commissioner shall not refrain from recov-
ering overpayments from resources currently available to
any overpaid person or to such person’s estate solely because
such individual is confined as described in clause (i) or (ii)
of section 202(x)(1)(A).’’.
(2) 
AMENDMENT
TO
TITLE
XVI.—Section
1631(b)(1)(A) of such Act (42 U.S.C. 1383(b)(1)(A))
is amended by adding after and below clause (ii) the
following flush left sentence:
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‘‘The Commissioner shall not refrain from recovering over-
payments from resources currently available to any indi-
vidual solely because the individual is confined as described
in clause (i) or (ii) of section 202(x)(1)(A).’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to overpayments made in, and to bene-
fits payable for, months beginning 24 months or more after
the date of the enactment of this Act.
SEC. 206. TREATMENT OF ASSETS HELD IN TRUST UNDER
THE SSI PROGRAM.
(a) TREATMENT AS RESOURCE.—Section 1613 of the
Social Security Act (42 U.S.C. 1382b) is amended by add-
ing at the end the following:
‘‘Trusts
‘‘(e)(1) In determining the resources of an individual,
paragraph (3) shall apply to a trust (other than a trust
described in paragraph (5)) established by the individual.
‘‘(2)(A) For purposes of this subsection, an individual
shall be considered to have established a trust if any assets
of the individual (or of the individual’s spouse) are trans-
ferred to the trust other than by will.
‘‘(B) In the case of an irrevocable trust to which are
transferred the assets of an individual (or of the individ-
ual’s spouse) and the assets of any other person, this sub-
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section shall apply to the portion of the trust attributable
to the assets of the individual (or of the individual’s spouse).
‘‘(C) This subsection shall apply to a trust without re-
gard to—
‘‘(i) the purposes for which the trust is estab-
lished;
‘‘(ii) whether the trustees have or exercise any
discretion under the trust;
‘‘(iii) any restrictions on when or whether dis-
tributions may be made from the trust; or
‘‘(iv) any restrictions on the use of distributions
from the trust.
‘‘(3)(A) In the case of a revocable trust established by
an individual, the corpus of the trust shall be considered
a resource available to the individual.
‘‘(B) In the case of an irrevocable trust established by
an individual, if there are any circumstances under which
payment from the trust could be made to or for the benefit
of the individual or the individual’s spouse, the portion of
the corpus from which payment to or for the benefit of the
individual or the individual’s spouse could be made shall
be considered a resource available to the individual.
‘‘(4) The Commissioner of Social Security may waive
the application of this subsection with respect to an indi-
vidual if the Commissioner determines that such applica-
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tion would work an undue hardship (as determined on the
basis of criteria established by the Commissioner) on the
individual.
‘‘(5) This subsection shall not apply to a trust de-
scribed in subparagraph (A) or (C) of section 1917(d)(4).
‘‘(6) For purposes of this subsection—
‘‘(A) the term ‘trust’ includes any legal instru-
ment or device that is similar to a trust;
‘‘(B) the term ‘corpus’ means, with respect to a
trust, all property and other interests held by the
trust, including accumulated earnings and any other
addition to the trust after its establishment (except
that such term does not include any such earnings or
addition in the month in which the earnings or addi-
tion is credited or otherwise transferred to the trust);
and
‘‘(C) the term ‘asset’ includes any income or re-
source of the individual or of the individual’s spouse,
including—
‘‘(i) any income excluded by section
1612(b);
‘‘(ii) any resource otherwise excluded by
this section; and
‘‘(iii) any other payment or property to
which the individual or the individual’s spouse
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is entitled but does not receive or have access to
because of action by—
‘‘(I) the individual or spouse;
‘‘(II) a person or entity (including a
court) with legal authority to act in place
of, or on behalf of, the individual or spouse;
or
‘‘(III) a person or entity (including a
court) acting at the direction of, or on the
request of, the individual or spouse.’’.
(b) TREATMENT AS INCOME.—Section 1612(a)(2) of
such Act (42 U.S.C. 1382a(a)(2)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (E);
(2) by striking the period at the end of subpara-
graph (F) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(G) any earnings of, and additions to, the cor-
pus of a trust established by an individual (within
the meaning of section 1613(e)), of which the indi-
vidual is a beneficiary, to which section 1613(e) ap-
plies, and, in the case of an irrevocable trust, with re-
spect to which circumstances exist under which a
payment from the earnings or additions could be
made to or for the benefit of the individual.’’.
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(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on January 1, 2000, and shall apply
to trusts established on or after such date.
SEC. 207. DISPOSAL OF RESOURCES FOR LESS THAN FAIR
MARKET VALUE UNDER THE SSI PROGRAM.
(a) IN GENERAL.—Section 1613(c) of the Social Secu-
rity Act (42 U.S.C. 1382b(c)) is amended—
(1) in the caption, by striking ‘‘Notification of
Medicaid Policy Restricting Eligibility of Institu-
tionalized Individuals for Benefits Based on’’;
(2) in paragraph (1)—
(A) in subparagraph (A)—
(i) by inserting ‘‘paragraph (1) and’’
after ‘‘provisions of’’;
(ii) by striking ‘‘title XIX’’ the first
place it appears and inserting ‘‘this title
and title XIX, respectively,’’;
(iii) by striking ‘‘subparagraph (B)’’
and inserting ‘‘clause (ii)’’;
(iv) by striking ‘‘paragraph (2)’’ and
inserting ‘‘subparagraph (B)’’;
(B) in subparagraph (B)—
(i) by striking ‘‘by the State agency’’;
and
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(ii) by striking ‘‘section 1917(c)’’ and
all that follows and inserting ‘‘paragraph
(1) or section 1917(c).’’; and
(C) by redesignating subparagraphs (A)
and (B) as clauses (i) and (ii), respectively;
(3) in paragraph (2)—
(A) by striking ‘‘(2)’’ and inserting ‘‘(B)’’;
and
(B) by striking ‘‘paragraph (1)(B)’’ and in-
serting ‘‘subparagraph (A)(ii)’’;
(4) by striking ‘‘(c)(1)’’ and inserting ‘‘(2)(A)’’;
and
(5) by inserting before paragraph (2) (as so re-
designated by paragraph (4) of this subsection) the
following:
‘‘(c)(1)(A)(i) If an individual or the spouse of an indi-
vidual disposes of resources for less than fair market value
on or after the look-back date described in clause (ii)(I),
the individual is ineligible for benefits under this title for
months during the period beginning on the date described
in clause (iii) and equal to the number of months calculated
as provided in clause (iv).
‘‘(ii)(I) The look-back date described in this subclause
is a date that is 36 months before the date described in sub-
clause (II).
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‘‘(II) The date described in this subclause is the date
on which the individual applies for benefits under this title
or, if later, the date on which the individual (or the spouse
of the individual) disposes of resources for less than fair
market value.
‘‘(iii) The date described in this clause is the first day
of the first month in or after which resources were disposed
of for less than fair market value and which does not occur
in any other period of ineligibility under this paragraph.
‘‘(iv) The number of months calculated under this
clause shall be equal to—
‘‘(I) the total, cumulative uncompensated value
of all resources so disposed of by the individual (or
the spouse of the individual) on or after the look-back
date described in clause (ii)(I); divided by
‘‘(II) the amount of the maximum monthly ben-
efit payable under section 1611(b), plus the amount
(if any) of the maximum State supplementary pay-
ment corresponding to the State’s payment level ap-
plicable to the individual’s living arrangement and
eligibility category that would otherwise be payable to
the individual by the Commissioner pursuant to an
agreement under section 1616(a) of this Act or section
212(b) of Public Law 93–66, for the month in which
occurs the date described in clause (ii)(II),
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rounded, in the case of any fraction, to the nearest whole
number, but shall not in any case exceed 36 months.
‘‘(B)(i) Notwithstanding subparagraph (A), this sub-
section shall not apply to a transfer of a resource to a trust
if the portion of the trust attributable to the resource is con-
sidered a resource available to the individual pursuant to
subsection (e)(3) (or would be so considered but for the ap-
plication of subsection (e)(4)).
‘‘(ii) In the case of a trust established by an individual
or an individual’s spouse (within the meaning of subsection
(e)), if from such portion of the trust, if any, that is consid-
ered a resource available to the individual pursuant to sub-
section (e)(3) (or would be so considered but for the applica-
tion of subsection (e)(4)) or the residue of the portion on
the termination of the trust—
‘‘(I) there is made a payment other than to or
for the benefit of the individual; or
‘‘(II) no payment could under any circumstance
be made to the individual,
then, for purposes of this subsection, the payment described
in clause (I) or the foreclosure of payment described in
clause (II) shall be considered a transfer of resources by the
individual or the individual’s spouse as of the date of the
payment or foreclosure, as the case may be.
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‘‘(C) An individual shall not be ineligible for benefits
under this title by reason of the application of this para-
graph to a disposal of resources by the individual or the
spouse of the individual, to the extent that—
‘‘(i) the resources are a home and title to the
home was transferred to—
‘‘(I) the spouse of the transferor;
‘‘(II) a child of the transferor who has not
attained 21 years of age, or is blind or disabled;
‘‘(III) a sibling of the transferor who has an
equity interest in such home and who was resid-
ing in the transferor’s home for a period of at
least 1 year immediately before the date the
transferor becomes an institutionalized indi-
vidual; or
‘‘(IV) a son or daughter of the transferor
(other than a child described in subclause (II))
who was residing in the transferor’s home for a
period of at least 2 years immediately before the
date the transferor becomes an institutionalized
individual, and who provided care to the trans-
feror which permitted the transferor to reside at
home rather than in such an institution or facil-
ity;
‘‘(ii) the resources—
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‘‘(I) were transferred to the transferor’s
spouse or to another for the sole benefit of the
transferor’s spouse;
‘‘(II) were transferred from the transferor’s
spouse to another for the sole benefit of the trans-
feror’s spouse;
‘‘(III) were transferred to, or to a trust (in-
cluding a trust described in section 1917(d)(4))
established solely for the benefit of, the trans-
feror’s child who is blind or disabled; or
‘‘(IV) were transferred to a trust (including
a trust described in section 1917(d)(4)) estab-
lished solely for the benefit of an individual who
has not attained 65 years of age and who is dis-
abled;
‘‘(iii) a satisfactory showing is made to the Com-
missioner of Social Security (in accordance with reg-
ulations promulgated by the Commissioner) that—
‘‘(I) the individual who disposed of the re-
sources intended to dispose of the resources either
at fair market value, or for other valuable con-
sideration;
‘‘(II) the resources were transferred exclu-
sively for a purpose other than to qualify for
benefits under this title; or
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‘‘(III) all resources transferred for less than
fair market value have been returned to the
transferor; or
‘‘(iv) the Commissioner determines, under proce-
dures established by the Commissioner, that the denial
of eligibility would work an undue hardship as deter-
mined on the basis of criteria established by the Com-
missioner.
‘‘(D) For purposes of this subsection, in the case of a
resource held by an individual in common with another
person or persons in a joint tenancy, tenancy in common,
or similar arrangement, the resource (or the affected portion
of such resource) shall be considered to be disposed of by
the individual when any action is taken, either by the indi-
vidual or by any other person, that reduces or eliminates
the individual’s ownership or control of such resource.
‘‘(E) In the case of a transfer by the spouse of an indi-
vidual that results in a period of ineligibility for the indi-
vidual under this subsection, the Commissioner shall appor-
tion the period (or any portion of the period) among the
individual and the individual’s spouse if the spouse becomes
eligible for benefits under this title.
‘‘(F) For purposes of this paragraph—
‘‘(i) the term ‘benefits under this title’ includes
payments of the type described in section 1616(a) of
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this Act and of the type described in section 212(b)
of Public Law 93–66;
‘‘(ii) the term ‘institutionalized individual’ has
the meaning given such term in section 1917(e)(3);
and
‘‘(iii) the term ‘trust’ has the meaning given
such term in subsection (e)(6)(A) of this section.’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall be effective with respect to disposals made on
or after the date of enactment of this Act.
SEC. 208. ADMINISTRATIVE PROCEDURE FOR IMPOSING
PENALTIES 
FOR 
FALSE 
OR 
MISLEADING
STATEMENTS.
(a) IN GENERAL.—Part A of title XI of the Social Se-
curity Act (42 U.S.C. 1301 et seq.) is amended by inserting
after section 1129 the following:
‘‘SEC. 1129A. ADMINISTRATIVE PROCEDURE FOR IMPOSING
PENALTIES 
FOR 
FALSE 
OR 
MISLEADING
STATEMENTS.
‘‘(a) IN GENERAL.—Any person who makes, or causes
to be made, a statement or representation of a material fact
for use in determining any initial or continuing right to
or the amount of—
‘‘(1) monthly insurance benefits under title II; or
‘‘(2) benefits or payments under title XVI,
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that the person knows or should know is false or misleading
or knows or should know omits a material fact or makes
such a statement with knowing disregard for the truth shall
be subject to, in addition to any other penalties that may
be prescribed by law, a penalty described in subsection (b)
to be imposed by the Commissioner of Social Security.
‘‘(b) PENALTY.—The penalty described in this sub-
section is—
‘‘(1) nonpayment of benefits under title II that
would otherwise be payable to the person; and
‘‘(2) ineligibility for cash benefits under title
XVI,
for each month that begins during the applicable period de-
scribed in subsection (c).
‘‘(c) DURATION OF PENALTY.—The duration of the ap-
plicable period, with respect to a determination by the Com-
missioner under subsection (a) that a person has engaged
in conduct described in subsection (a), shall be—
‘‘(1) 6 consecutive months, in the case of a first
such determination with respect to the person;
‘‘(2) 12 consecutive months, in the case of a sec-
ond such determination with respect to the person;
and
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‘‘(3) 24 consecutive months, in the case of a third
or subsequent such determination with respect to the
person.
‘‘(d) EFFECT ON OTHER ASSISTANCE.—A person sub-
ject to a period of nonpayment of benefits under title II
or ineligibility for title XVI benefits by reason of this sec-
tion nevertheless shall be considered to be eligible for and
receiving such benefits, to the extent that the person would
be receiving or eligible for such benefits but for the imposi-
tion of the penalty, for purposes of—
‘‘(1) determination of the eligibility of the person
for benefits under titles XVIII and XIX; and
‘‘(2) determination of the eligibility or amount of
benefits payable under title II or XVI to another per-
son.
‘‘(e) DEFINITION.—In this section, the term ‘benefits
under title XVI’ includes State supplementary payments
made by the Commissioner pursuant to an agreement under
section 1616(a) of this Act or section 212(b) of Public Law
93–66.
‘‘(f) CONSULTATIONS.—The Commissioner of Social
Security shall consult with the Inspector General of the So-
cial Security Administration regarding initiating actions
under this section.’’.
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(b) CONFORMING AMENDMENT PRECLUDING DELAYED
RETIREMENT CREDIT FOR ANY MONTH TO WHICH A NON-
PAYMENT
OF
BENEFITS
PENALTY
APPLIES.—Section
202(w)(2)(B) of such Act (42 U.S.C. 402(w)(2)(B)) is
amended—
(1) by striking ‘‘and’’ at the end of clause (i);
(2) by striking the period at the end of clause
(ii) and inserting ‘‘, and’’; and
(3) by adding at the end the following:
‘‘(iii) such individual was not subject to a
penalty imposed under section 1129A.’’.
(c) ELIMINATION OF REDUNDANT PROVISION.—Sec-
tion 1611(e) of such Act (42 U.S.C. 1382(e)) is amended—
(1) by striking paragraph (4);
(2) in paragraph (6)(A)(i), by striking ‘‘(5)’’
and inserting ‘‘(4)’’; and
(3) by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively.
(d) REGULATIONS.—Within 6 months after the date of
the enactment of this Act, the Commissioner of Social Secu-
rity shall develop regulations that prescribe the administra-
tive process for making determinations under section 1129A
of the Social Security Act (including when the applicable
period in subsection (c) of such section shall commence),
and shall provide guidance on the exercise of discretion as
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to whether the penalty should be imposed in particular
cases.
(e) EFFECTIVE DATE.—The amendments made by this
section shall apply to statements and representations made
on or after the date of the enactment of this Act.
SEC. 209. EXCLUSION OF REPRESENTATIVES AND HEALTH
CARE PROVIDERS CONVICTED OF VIOLA-
TIONS FROM PARTICIPATION IN SOCIAL SE-
CURITY PROGRAMS.
(a) IN GENERAL.—Part A of title XI of the Social Se-
curity Act (42 U.S.C. 1301–1320b–17) is amended by add-
ing at the end the following:
‘‘EXCLUSION
OF
REPRESENTATIVES
AND
HEALTH
CARE
PROVIDERS CONVICTED OF VIOLATIONS FROM PARTICI-
PATION IN SOCIAL SECURITY PROGRAMS
‘‘SEC. 1148. (a) IN GENERAL.—The Commissioner of
Social Security shall exclude from participation in the so-
cial security programs any representative or health care
provider—
‘‘(1) who is convicted of a violation of section
208 or 1632 of this Act,
‘‘(2) who is convicted of any violation under title
18, United States Code, relating to an initial appli-
cation for or continuing entitlement to, or amount of,
benefits under title II of this Act, or an initial appli-
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cation for or continuing eligibility for, or amount of,
benefits under title XVI of this Act, or
‘‘(3) who the Commissioner determines has com-
mitted an offense described in section 1129(a)(1) of
this Act.
‘‘(b) NOTICE, EFFECTIVE DATE, AND PERIOD OF EX-
CLUSION.—(1) An exclusion under this section shall be effec-
tive at such time, for such period, and upon such reasonable
notice to the public and to the individual excluded as may
be specified in regulations consistent with paragraph (2).
‘‘(2) Such an exclusion shall be effective with respect
to services furnished to any individual on or after the effec-
tive date of the exclusion. Nothing in this section may be
construed to preclude, in determining disability under title
II or title XVI, consideration of any medical evidence de-
rived from services provided by a health care provider before
the effective date of the exclusion of the health care provider
under this section.
‘‘(3)(A) The Commissioner shall specify, in the notice
of exclusion under paragraph (1), the period of the exclu-
sion.
‘‘(B) Subject to subparagraph (C), in the case of an
exclusion under subsection (a), the minimum period of ex-
clusion shall be five years, except that the Commissioner
may waive the exclusion in the case of an individual who
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is the sole source of essential services in a community. The
Commissioner’s decision whether to waive the exclusion
shall not be reviewable.
‘‘(C) In the case of an exclusion of an individual under
subsection (a) based on a conviction or a determination de-
scribed in subsection (a)(3) occurring on or after the date
of the enactment of this section, if the individual has (before,
on, or after such date of enactment) been convicted, or if
such a determination has been made with respect to the
individual—
‘‘(i) on one previous occasion of one or more of-
fenses for which an exclusion may be effected under
such subsection, the period of the exclusion shall be
not less than 10 years, or
‘‘(ii) on 2 or more previous occasions of one or
more offenses for which an exclusion may be effected
under such subsection, the period of the exclusion
shall be permanent.
‘‘(c) NOTICE
TO STATE AGENCIES.—The Commis-
sioner shall promptly notify each appropriate State agency
employed for the purpose of making disability determina-
tions under section 221 or 1633(a)—
‘‘(1) of the fact and circumstances of each exclu-
sion effected against an individual under this section,
and
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‘‘(2) of the period (described in subsection (b)(3))
for which the State agency is directed to exclude the
individual from participation in the activities of the
State agency in the course of its employment.
‘‘(d) NOTICE TO STATE LICENSING AGENCIES.—The
Commissioner shall—
‘‘(1) promptly notify the appropriate State or
local agency or authority having responsibility for the
licensing or certification of an individual excluded
from participation under this section of the fact and
circumstances of the exclusion,
‘‘(2) request that appropriate investigations be
made and sanctions invoked in accordance with ap-
plicable State law and policy, and
‘‘(3) request that the State or local agency or au-
thority keep the Commissioner and the Inspector Gen-
eral of the Social Security Administration fully and
currently informed with respect to any actions taken
in response to the request.
‘‘(e) NOTICE, HEARING, AND JUDICIAL REVIEW.—(1)
Any individual who is excluded (or directed to be excluded)
from participation under this section is entitled to reason-
able notice and opportunity for a hearing thereon by the
Commissioner to the same extent as is provided in section
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205(b), and to judicial review of the Commissioner’s final
decision after such hearing as is provided in section 205(g).
‘‘(2) The provisions of section 205(h) shall apply with
respect to this section to the same extent as it is applicable
with respect to title II.
‘‘(f) APPLICATION
FOR TERMINATION
OF EXCLU-
SION.—(1) An individual excluded from participation
under this section may apply to the Commissioner, in the
manner specified by the Commissioner in regulations and
at the end of the minimum period of exclusion provided
under subsection (b)(3) and at such other times as the Com-
missioner may provide, for termination of the exclusion ef-
fected under this section.
‘‘(2) The Commissioner may terminate the exclusion
if the Commissioner determines, on the basis of the conduct
of the applicant which occurred after the date of the notice
of exclusion or which was unknown to the Commissioner
at the time of the exclusion, that—
‘‘(A) there is no basis under subsection (a) for a
continuation of the exclusion, and
‘‘(B) there are reasonable assurances that the
types of actions which formed the basis for the origi-
nal exclusion have not recurred and will not recur.
‘‘(3) The Commissioner shall promptly notify each
State agency employed for the purpose of making disability
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determinations under section 221 or 1633(a) of the fact and
circumstances of each termination of exclusion made under
this subsection.
‘‘(g) AVAILABILITY OF RECORDS OF EXCLUDED REP-
RESENTATIVES AND HEALTH CARE PROVIDERS.—Nothing
in this section shall be construed to have the effect of lim-
iting access by any applicant or beneficiary under title II
or XVI, any State agency acting under section 221 or
1633(a), or the Commissioner to records maintained by any
representative or health care provider in connection with
services provided to the applicant or beneficiary prior to
the exclusion of such representative or health care provider
under this section.
‘‘(h) REPORTING REQUIREMENT.—Any representative
or health care provider participating in, or seeking to par-
ticipate in, a social security program shall inform the Com-
missioner, in such form and manner as the Commissioner
shall prescribe by regulation, whether such representative
or health care provider has been convicted of a violation
described in subsection (a).
‘‘(i) DELEGATION OF AUTHORITY.—The Commissioner
may delegate authority granted by this section to the In-
spector General.
‘‘(j) DEFINITIONS.—For purposes of this section:
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‘‘(1) EXCLUDE.—The term ‘exclude’ from par-
ticipation means—
‘‘(A) in connection with a representative, to
prohibit from engaging in representation of an
applicant for, or recipient of, benefits, as a rep-
resentative 
payee 
under 
section 
205(j) 
or
1631(a)(2)(A)(ii), or otherwise as a representa-
tive, in any hearing or other proceeding relating
to entitlement to benefits, and
‘‘(B) in connection with a health care pro-
vider, to prohibit from providing items or serv-
ices to an applicant for, or recipient of, benefits
for the purpose of assisting such applicant or re-
cipient in demonstrating disability.
‘‘(2) SOCIAL SECURITY PROGRAM.—The term ‘so-
cial security programs’ means the program providing
for monthly insurance benefits under title II, and the
program providing for monthly supplemental security
income benefits to individuals under title XVI (in-
cluding State supplementary payments made by the
Commissioner pursuant to an agreement under sec-
tion 1616(a) of this Act or section 212(b) of Public
Law 93–66).
‘‘(3) CONVICTED.—An individual is considered
to have been ‘convicted’ of a violation—
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‘‘(A) when a judgment of conviction has
been entered against the individual by a Federal,
State, or local court, except if the judgment of
conviction has been set aside or expunged;
‘‘(B) when there has been a finding of guilt
against the individual by a Federal, State, or
local court;
‘‘(C) when a plea of guilty or nolo
contendere by the individual has been accepted
by a Federal, State, or local court; or
‘‘(D) when the individual has entered into
participation in a first offender, deferred adju-
dication, or other arrangement or program where
judgment of conviction has been withheld.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply with respect to convictions of violations
described in paragraphs (1) and (2) of section 1148(a) of
the Social Security Act and determinations described in
paragraph (3) of such section occurring on or after the date
of the enactment of this Act.
SEC. 210. STATE DATA EXCHANGES.
Whenever the Commissioner of Social Security requests
information from a State for the purpose of ascertaining
an individual’s eligibility for benefits (or the correct
amount of such benefits) under title II or XVI of the Social
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Security Act, the standards of the Commissioner promul-
gated pursuant to section 1106 of such Act or any other
Federal law for the use, safeguarding, and disclosure of in-
formation are deemed to meet any standards of the State
that would otherwise apply to the disclosure of information
by the State to the Commissioner.
SEC. 211. STUDY ON POSSIBLE MEASURES TO IMPROVE
FRAUD PREVENTION AND ADMINISTRATIVE
PROCESSING.
(a) STUDY.—As soon as practicable after the date of
the enactment of this Act, the Commissioner of Social Secu-
rity, in consultation with the Inspector General of the So-
cial Security Administration and the Attorney General,
shall conduct a study of possible measures to improve—
(1) prevention of fraud on the part of individ-
uals entitled to disability benefits under section 223
of the Social Security Act or benefits under section
202 of such Act based on the beneficiary’s disability,
individuals eligible for supplemental security income
benefits under title XVI of such Act, and applicants
for any such benefits; and
(2) timely processing of reported income changes
by individuals receiving such benefits.
(b) REPORT.—Not later than 1 year after the date of
the enactment of this Act, the Commissioner shall submit
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to the Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate
a written report that contains the results of the Commis-
sioner’s study under subsection (a). The report shall contain
such recommendations for legislative and administrative
changes as the Commissioner considers appropriate.
SEC. 212. ANNUAL REPORT ON AMOUNTS NECESSARY TO
COMBAT FRAUD.
(a) IN GENERAL.—Section 704(b)(1) of the Social Se-
curity Act (42 U.S.C. 904(b)(1)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(b)(1)’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) The Commissioner shall include in the annual
budget prepared pursuant to subparagraph (A) an
itemization of the amount of funds required by the Social
Security Administration for the fiscal year covered by the
budget to support efforts to combat fraud committed by ap-
plicants and beneficiaries.’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply with respect to annual budgets prepared
for fiscal years after fiscal year 1999.
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SEC. 213. COMPUTER MATCHES WITH MEDICARE AND MED-
ICAID INSTITUTIONALIZATION DATA.
(a) IN GENERAL.—Section 1611(e)(1) of the Social Se-
curity Act (42 U.S.C. 1382(e)(1)), as amended by section
205(b)(2) of this Act, is further amended by adding at the
end the following:
‘‘(K) For the purpose of carrying out this paragraph,
the Commissioner of Social Security shall conduct periodic
computer matches with data maintained by the Secretary
of Health and Human Services under title XVIII or XIX.
The Secretary shall furnish to the Commissioner, in such
form and manner and under such terms as the Commis-
sioner and the Secretary shall mutually agree, such infor-
mation as the Commissioner may request for this purpose.
Information obtained pursuant to such a match may be
substituted for the physician’s certification otherwise re-
quired under subparagraph (G)(i).’’.
(b) 
CONFORMING
AMENDMENT.—Section
1611(e)(1)(G) of such Act (42 U.S.C. 1382(e)(1)(G)) is
amended by striking ‘‘subparagraph (H)’’ and inserting
‘‘subparagraph (H) or (K)’’.
SEC. 214. ACCESS TO INFORMATION HELD BY FINANCIAL
INSTITUTIONS.
Section 1631(e)(1)(B) of the Social Security Act (42
U.S.C. 1383(e)(1)(B)) is amended—
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(1) by striking ‘‘(B) The’’ and inserting ‘‘(B)(i)
The’’; and
(2) by adding at the end the following new
clause:
‘‘(ii)(I) The Commissioner of Social Security may re-
quire each applicant for, or recipient of, benefits under this
title to provide authorization by the applicant or recipient
(or by any other person whose income or resources are mate-
rial to the determination of the eligibility of the applicant
or recipient for such benefits) for the Commissioner to ob-
tain (subject to the cost reimbursement requirements of sec-
tion 1115(a) of the Right to Financial Privacy Act) from
any financial institution (within the meaning of section
1101(1) of such Act) any financial record (within the mean-
ing of section 1101(2) of such Act) held by the institution
with respect to the applicant or recipient (or any such other
person) whenever the Commissioner determines the record
is needed in connection with a determination with respect
to such eligibility or the amount of such benefits.
‘‘(II) Notwithstanding section 1104(a)(1) of the Right
to Financial Privacy Act, an authorization provided by an
applicant or recipient (or any other person whose income
or resources are material to the determination of the eligi-
bility of the applicant or recipient) pursuant to subclause
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(I) of this clause shall remain effective until the earliest
of—
‘‘(aa) the rendering of a final adverse decision
on the applicant’s application for eligibility for bene-
fits under this title;
‘‘(bb) the cessation of the recipient’s eligibility
for benefits under this title; or
‘‘(cc) the express revocation by the applicant or
recipient (or such other person referred to in sub-
clause (I)) of the authorization, in a written notifica-
tion to the Commissioner.
‘‘(III)(aa) An authorization obtained by the Commis-
sioner of Social Security pursuant to this clause shall be
considered to meet the requirements of the Right to Finan-
cial Privacy Act for purposes of section 1103(a) of such Act,
and need not be furnished to the financial institution, not-
withstanding section 1104(a) of such Act.
‘‘(bb) The certification requirements of section 1103(b)
of the Right to Financial Privacy Act shall not apply to
requests by the Commissioner of Social Security pursuant
to an authorization provided under this clause.
‘‘(cc) A request by the Commissioner pursuant to an
authorization provided under this clause is deemed to meet
the requirements of section 1104(a)(3) of the Right to Fi-
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nancial Privacy Act and the flush language of section 1102
of such Act.
‘‘(IV) The Commissioner shall inform any person who
provides authorization pursuant to this clause of the dura-
tion and scope of the authorization.
‘‘(V) If an applicant for, or recipient of, benefits under
this title (or any such other person referred to in subclause
(I)) refuses to provide, or revokes, any authorization made
by the applicant or recipient for the Commissioner of Social
Security to obtain from any financial institution any fi-
nancial record, the Commissioner may, on that basis, deter-
mine that the applicant or recipient is ineligible for benefits
under this title.’’.
Subtitle B—Benefits for Filipino
Veterans of World War II
SEC. 251. PROVISION OF REDUCED SSI BENEFIT TO CER-
TAIN INDIVIDUALS WHO PROVIDED SERVICE
TO THE ARMED FORCES OF THE UNITED
STATES IN THE PHILIPPINES DURING WORLD
WAR II AFTER THEY MOVE BACK TO THE
PHILIPPINES.
(a) 
IN
GENERAL.—Notwithstanding 
sections
1611(f)(1) and 1614(a)(1)(B)(i) of the Social Security Act
and sections 401 and 402 of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996, the eli-
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gibility of a qualified individual for benefits under the sup-
plemental security income program under title XVI of the
Social Security Act shall not terminate by reason of a
change in the place of residence of the individual to the
Philippines.
(b) BENEFIT AMOUNT.—Notwithstanding subsections
(a) and (b) of section 1611 of the Social Security Act, the
benefit payable under the supplemental security income
program to a qualified individual for any month through-
out which the individual resides in the Philippines shall
be in an amount equal to 75 percent of the Federal benefit
rate under title XVI of such Act for the month, reduced
(after disregard of the amount specified in section
1612(b)(2)(A) of such Act) by the amount of the qualified
individual’s benefit income for the month.
(c) DEFINITIONS.—In this section:
(1) QUALIFIED INDIVIDUAL.—The term ‘‘quali-
fied individual’’ means an individual who—
(A) as of the date of the enactment of this
Act, is eligible for benefits under the supple-
mental security income program under title XVI
of the Social Security Act on the basis of an ap-
plication filed before such date;
(B) before December 31, 1946, served in the
organized military forces of the Government of
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the Commonwealth of the Philippines while such
forces were in the service of the Armed Forces
of the United States pursuant to the military
order of the President dated July 26, 1941, in-
cluding among such military forces organized
guerrilla forces under commanders appointed,
designated, or subsequently recognized by the
Commander in Chief, Southwest Pacific Area, or
other competent military authority in the Army
of the United States; and
(C) has not been removed from the United
States pursuant to section 237(a) of the Immi-
gration and Nationality Act.
(2) FEDERAL BENEFIT RATE.—The term ‘‘Fed-
eral benefit rate’’ means, with respect to a month, the
amount of the cash benefit (not including any State
supplementary payment which is paid by the Com-
missioner of Social Security pursuant to an agree-
ment under section 1616(a) of the Social Security Act
or section 212(b) of Public Law 93–66) payable for
the month to an eligible individual with no income.
(3) BENEFIT
INCOME.—The term ‘‘benefit in-
come’’ means any recurring payment received by a
qualified individual as an annuity, pension, retire-
ment, or disability benefit (including any veterans’
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compensation or pension, workmen’s compensation
payment, old-age, survivors, or disability insurance
benefit, railroad retirement annuity or pension, and
unemployment insurance benefit), but only if a simi-
lar payment was received by the individual from the
same (or a related) source during the 12-month pe-
riod preceding the month in which the individual
changes his place of residence from the United States
to the Philippines.
(d) EFFECTIVE DATE.—This section shall be effective
with respect to supplemental security income benefits pay-
able for months beginning after the date that is 1 year after
the date of the enactment of this Act, or such earlier date
that the Commissioner of Social Security determines is ad-
ministratively feasible.
TITLE III—CHILD SUPPORT
SEC. 301. ELIMINATION OF HOLD HARMLESS PROVISION
FOR STATE SHARE OF DISTRIBUTION OF COL-
LECTED CHILD SUPPORT.
(a) IN GENERAL.—Section 457 of the Social Security
Act (42 U.S.C. 657) is amended—
(1) in subsection (a), by striking ‘‘subsections (e)
and (f)’’ and inserting ‘‘subsections (d) and (e)’’;
(2) by striking subsection (d);
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(3) in subsection (e), by striking the 2nd sen-
tence; and
(4) by redesignating subsections (e) and (f) as
subsections (d) and (e), respectively.
(b) EFFECTIVE DATE.—The amendments made by this
section shall be effective with respect to calendar quarters
beginning on or after October 1, 1999.
TITLE IV—TECHNICAL
CORRECTIONS
SEC. 401. TECHNICAL CORRECTIONS RELATING TO AMEND-
MENTS MADE BY THE PERSONAL RESPONSI-
BILITY AND WORK OPPORTUNITY RECONCILI-
ATION ACT OF 1996.
(a) Section 402(a)(1)(B)(iv) of the Social Security Act
(42 U.S.C. 602(a)(1)(B)(iv)) is amended by striking ‘‘Act’’
and inserting ‘‘section’’.
(b) Section 409(a)(7)(B)(i)(II) of the Social Security
Act (42 U.S.C. 609(a)(7)(B)(i)(II)) is amended by striking
‘‘part’’ and inserting ‘‘section’’.
(c) Section 413(g)(1) of the Social Security Act (42
U.S.C. 613(g)(1)) is amended by striking ‘‘Act’’ and insert-
ing ‘‘section’’.
(d) Section 416 of the Social Security Act (42 U.S.C.
616) is amended by striking ‘‘Opportunity Act’’ and insert-
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ing ‘‘Opportunity Reconciliation Act’’ each place such term
appears.
(e) Section 431(a)(6) of the Social Security Act (42
U.S.C. 629a(a)(6))) is amended—
(1) by inserting ‘‘, as in effect before August 22,
1986’’ after ‘‘482(i)(5)’’; and
(2) by inserting ‘‘, as so in effect’’ after
‘‘482(i)(7)(A)’’.
(f) Sections 452(a)(7) and 466(c)(2)(A)(i) of the Social
Security Act (42 U.S.C. 652(a)(7) and 666(c)(2)(A)(i)) are
each amended by striking ‘‘Social Security’’ and inserting
‘‘social security’’.
(g) Section 454 of the Social Security Act (42 U.S.C.
654) is amended—
(1) by striking ‘‘, or’’ at the end of each of para-
graphs (6)(E)(i) and (19)(B)(i) and inserting ‘‘; or’’;
(2) in paragraph (9), by striking the comma at
the end of each of subparagraphs (A), (B), (C) and
inserting a semicolon; and
(3) by striking ‘‘, and’’ at the end of each of
paragraphs (19)(A) and (24)(A) and inserting ‘‘;
and’’.
(h) Section 454(24)(B) of the Social Security Act (42
U.S.C. 654(24)(B)) is amended by striking ‘‘Opportunity
Act’’ and inserting ‘‘Opportunity Reconciliation Act’’.
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(i) Section 344(b)(1)(A) of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (110
Stat. 2236) is amended to read as follows:
‘‘(A) in paragraph (1), by striking subpara-
graph (B) and inserting the following:
‘(B) equal to the percent specified in para-
graph (3) of the sums expended during such
quarter that are attributable to the planning, de-
sign, development, installation or enhancement
of an automatic data processing and informa-
tion retrieval system (including in such sums the
full cost of the hardware components of such sys-
tem); and’; and’’.
(j) Section 457(a)(2)(B)(i)(I) of the Social Security
Act (42 U.S.C. 657(a)(2)(B)(i)(I)) is amended by striking
‘‘Act Reconciliation’’ and inserting ‘‘Reconciliation Act’’.
(k) Section 457 of the Social Security Act (42 U.S.C.
657) is amended by striking ‘‘Opportunity Act’’ each place
it appears and inserting ‘‘Opportunity Reconciliation Act’’.
(l) Effective on the date of the enactment of this Act,
section 404(e) of the Social Security Act (42 U.S.C. 604(e))
is amended by inserting ‘‘or tribe’’ after ‘‘State’’ the first
and second places it appears, and by inserting ‘‘or tribal’’
after ‘‘State’’ the third place it appears.
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(m) Section 466(a)(7) of the Social Security Act (42
U.S.C. 666(a)(7)) is amended by striking ‘‘1681a(f))’’ and
inserting ‘‘1681a(f)))’’.
(n) Section 466(b)(6)(A) of the Social Security Act (42
U.S.C. 666(b)(6)(A)) is amended by striking ‘‘state’’ and
inserting ‘‘State’’.
(o) Section 471(a)(8) of the Social Security Act (42
U.S.C. 671(a)(8)) is amended by striking ‘‘(including ac-
tivities under part F)’’.
(p) Section 1137(a)(3) of the Social Security Act (42
U.S.C. 
1320b–7(a)(3)) 
is 
amended 
by 
striking
‘‘453A(a)(2)(B)(iii))’’ and inserting ‘‘453A(a)(2)(B)(ii)))’’.
(q) Except as provided in subsection (l), the amend-
ments made by this section shall take effect as if included
in the enactment of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.