In the Senate of the United States,
November 19, 1999.
Resolved, That the bill from the House of Representa-
tives (H.R. 1802) entitled ‘‘An Act to amend part E of title
IV of the Social Security Act to provide States with more
funding and greater flexibility in carrying out programs de-
signed to help children make the transition from foster care
to self-sufficiency, and for other purposes.’’, do pass with the
following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘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.
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Subtitle B—Related Foster Care Provision
Sec. 111. Increase in amount of assets allowable for children in foster care.
Sec. 112. Preparation of foster parents to provide for the needs of children in
State care.
Subtitle C—Medicaid Amendments
Sec. 121. State option of Medicaid coverage for adolescents leaving foster care.
Subtitle D—Adoption Incentive Payments
Sec. 131. Increased funding for adoption incentive payments.
TITLE II—SSI FRAUD PREVENTION
Subtitle A—Fraud Prevention and Related Provisions
Sec. 201. Liability of representative payees for overpayments to deceased 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. Treatment of assets held in trust under the SSI program.
Sec. 206. Disposal of resources for less than fair market value under the SSI pro-
gram.
Sec. 207. Administrative procedure for imposing penalties for false or misleading
statements.
Sec. 208. Exclusion of representatives and health care providers convicted of vio-
lations from participation in social security programs.
Sec. 209. State data exchanges.
Sec. 210. Study on possible measures to improve fraud prevention and adminis-
trative processing.
Sec. 211. Annual report on amounts necessary to combat fraud.
Sec. 212. Computer matches with Medicare and Medicaid institutionalization
data.
Sec. 213. Access to information held by financial institutions.
Subtitle B—Benefits For Certain World War II Veterans
Sec. 251. Establishment of program of special benefits for certain World War II
veterans.
Subtitle C—Study
Sec. 261. Study of denial of SSI benefits for family farmers.
TITLE III—CHILD SUPPORT
Sec. 301. Narrowing of hold harmless provision for State share of distribution of
collected child support.
TITLE IV—TECHNICAL CORRECTIONS
Sec. 401. Technical corrections relating to amendments made by the Personal Re-
sponsibility and Work Opportunity Reconciliation Act of 1996.
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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
for employment, postsecondary education, and suc-
cessful management of adult responsibilities.
(2) Older children who continue to be in foster
care as adolescents may become eligible for Inde-
pendent Living programs. These Independent Living
programs are not an alternative to adoption for these
children. Enrollment in Independent Living pro-
grams can occur concurrent with continued efforts to
locate and achieve placement in adoptive families for
older children in foster care.
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(3) About 20,000 adolescents leave the Nation’s
foster care system each year because they have reached
18 years of age and are expected to support them-
selves.
(4) Congress has received extensive information
that adolescents leaving foster care have significant
difficulty making a successful transition to adulthood;
this information shows that children aging out of 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.
(5) 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.
(b) IMPROVED INDEPENDENT LIVING PROGRAM.—Sec-
tion 477 of the Social Security Act (42 U.S.C. 677) is
amended to read as follows:
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‘‘SEC. 477. JOHN H. CHAFEE FOSTER CARE INDEPENDENCE
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 help
these children make the transition to self-sufficiency
by providing services such as assistance in obtaining
a high school diploma, career exploration, vocational
training, job placement and retention, training in
daily living skills, training in budgeting and finan-
cial management skills, substance abuse prevention,
and preventive health activities (including smoking
avoidance, nutrition education, and pregnancy pre-
vention);
‘‘(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;
‘‘(4) to provide personal and emotional support
to children aging out of foster care, through mentors
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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 five consecutive fiscal years by submitting to the
Secretary, in writing, a plan that meets the require-
ments of paragraph (2) and the certifications re-
quired 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:
‘‘(A) Design and deliver programs to
achieve the purposes of this section.
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‘‘(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 because they have attained 18 years
of age, and who 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 because they have attained
18 years of age, and who have not attained 21
years of age.
‘‘(C) A certification by the chief executive
officer of the State that none of the amounts paid
to the State from its allotment under subsection
(c) will be expended for room or board for any
child who has not attained 18 years of age.
‘‘(D) A certification by the chief executive
officer of the State that the State will use train-
ing funds provided under the program of Federal
payments for foster care and adoption assistance
to provide training to help foster parents, adop-
tive parents, workers in group homes, and case
managers understand and address the issues con-
fronting adolescents preparing for independent
living, and will, to the extent possible, coordinate
such training with the independent living pro-
gram conducted for adolescents.
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‘‘(E) A certification by the chief executive
officer of the State that the State has consulted
widely with public and private organizations in
developing the plan and that the State has given
all interested members of the public at least 30
days to submit comments on the plan.
‘‘(F) A certification by the chief executive
officer of the State that the State will make every
effort to coordinate the State programs receiving
funds provided from an allotment made to the
State under subsection (c) with other Federal
and State programs for youth (especially 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
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programs will be made available to Indian chil-
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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such most recent fiscal year, as adjusted in accord-
ance with paragraph (2).
‘‘(2) HOLD HARMLESS PROVISION.—
‘‘(A) IN
GENERAL.—The Secretary shall
allot to each State whose allotment for a fiscal
year under paragraph (1) is less than the greater
of $500,000 or the amount payable to the State
under this section for fiscal year 1998, an addi-
tional amount equal to the difference between
such allotment and such greater amount.
‘‘(B) RATABLE REDUCTION OF CERTAIN AL-
LOTMENTS.—In the case of a State not described
in subparagraph (A) of this paragraph for a fis-
cal year, the Secretary shall reduce the amount
allotted to the State for the fiscal year under
paragraph (1) by the amount that bears the
same ratio to the sum of the differences deter-
mined under subparagraph (A) of this para-
graph for the fiscal year as the excess of the
amount so allotted over the greater of $500,000
or the amount payable to the State under this
section for fiscal year 1998 bears to the sum of
such excess amounts determined for all such
States.
‘‘(d) USE OF FUNDS.—
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‘‘(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
supplant any other funds which are available for the
same general purposes in the State.
‘‘(3) TWO-YEAR AVAILABILITY OF FUNDS.—Pay-
ments made to a State under this section for a fiscal
year shall be expended by the State in the fiscal year
or in the succeeding fiscal year.
‘‘(e) PENALTIES.—
‘‘(1) USE
OF
GRANT
IN
VIOLATION
OF
THIS
PART.—If the Secretary is made aware, by an audit
conducted under chapter 75 of title 31, United States
Code, or by any other means, that a program 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
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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.
‘‘(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, high school
diploma, employment, avoidance of dependency,
homelessness, nonmarital childbirth, incarcer-
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ation, and high-risk behaviors) that can be used
to assess the performance of States in operating
independent living programs;
‘‘(B) identify data elements needed to
track—
‘‘(i) the number and characteristics of
children receiving services under this sec-
tion;
‘‘(ii) the type and quantity of services
being provided; and
‘‘(iii) State performance on the out-
come measures; and
‘‘(C) develop and implement a plan to col-
lect the needed information beginning with the
second fiscal year beginning after the date of the
enactment of this section.
‘‘(2) REPORT
TO
THE
CONGRESS.—Within 12
months after the date of the enactment of this section,
the Secretary shall submit to the Committee on Ways
and Means of the House of Representatives and the
Committee on Finance of the Senate a report detail-
ing the plans and timetable for collecting from the
States the information described in paragraph (1)
and a proposal to impose penalties consistent with
paragraph (e)(2) on States that do not report data.
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‘‘(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-
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
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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
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.’’.
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(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.
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)).’’.
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SEC. 112. PREPARATION OF FOSTER PARENTS TO PROVIDE
FOR THE NEEDS OF CHILDREN IN STATE
CARE.
(a) STATE PLAN REQUIREMENT.—Section 471(a) of
the Social Security Act (42 U.S.C. 671(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(22);
(2) by striking the period at the end of para-
graph (23) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(24) include a certification that, before a child
in foster care under the responsibility of the State is
placed with prospective foster parents, the prospective
foster parents will be prepared adequately with the
appropriate knowledge and skills to provide for the
needs of the child, and that such preparation will be
continued, as necessary, after the placement of the
child.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on October 1, 1999.
Subtitle C—Medicaid Amendments
SEC. 121. STATE OPTION OF MEDICAID COVERAGE FOR
ADOLESCENTS LEAVING FOSTER CARE.
(a) IN GENERAL.—Subject to subsection (c), title XIX
of the Social Security Act is amended—
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(1) in section 1902(a)(10)(A)(ii) (42 U.S.C.
1396a(a)(10)(A)(ii))—
(A) by striking ‘‘or’’ at the end of subclause
(XIII);
(B) by adding ‘‘or’’ at the end of subclause
(XIV); and
(C) by adding at the end the following new sub-
clause:
‘‘(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).
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‘‘(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-
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.
(c) CONTINGENCY IN ENACTMENT.—If the Ticket to
Work and Work Incentives Improvement Act of 1999 is en-
acted (whether before, on, or after the date of the enactment
of this Act)—
(1) the amendments made by that Act shall be
executed as if this Act had been enacted after the en-
actment of such other Act;
(2) with respect to subsection (a)(1)(A) of this
section, any reference to subclause (XIII) is deemed a
reference to subclause (XV);
(3) with respect to subsection (a)(1)(B) of this
section, any reference to subclause (XIV) is deemed a
reference to subclause (XVI);
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(4) the subclause (XV) added by subsection
(a)(1)(C) of this section—
(A) is redesignated as subclause (XVII); and
(B) is amended by striking ‘‘section
1905(v)(1)’’ and inserting ‘‘section 1905(w)(1)’’;
and
(5) the subsection (v) added by subsection (a)(2)
of this section—
(A) is redesignated as subsection (w); and
(B) 
is 
amended 
by 
striking
‘‘1902(a)(10)(A)(ii)(XV)’’ 
and 
inserting
‘‘1902(a)(10)(A)(ii)(XVII)’’.
Subtitle D—Adoption Incentive
Payments
SEC. 131. INCREASED FUNDING FOR ADOPTION INCENTIVE
PAYMENTS.
(a) SUPPLEMENTAL GRANTS.—Section 473A of the So-
cial Security Act (42 U.S.C. 673b) is amended by adding
at the end the following:
‘‘(j) SUPPLEMENTAL GRANTS.—
‘‘(1) IN GENERAL.—Subject to the availability of
such amounts as may be provided in advance in ap-
propriations Acts, in addition to any amount other-
wise payable under this section to any State that is
an incentive-eligible State for fiscal year 1998, the
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Secretary shall make a grant to the State in an
amount equal to the lesser of—
‘‘(A) the amount by which—
‘‘(i) the amount that would have been
payable to the State under this section dur-
ing fiscal year 1999 (on the basis of adop-
tions in fiscal year 1998) in the absence of
subsection (d)(2) if sufficient funds had been
available for the payment; exceeds
‘‘(ii) the amount that, before the enact-
ment of this subsection, was payable to the
State under this section during fiscal year
1999 (on such basis); or
‘‘(B) the amount that bears the same ratio
to the dollar amount specified in paragraph (2)
as the amount described by subparagraph (A) for
the State bears to the aggregate of the amounts
described by subparagraph (A) for all States that
are incentive-eligible States for fiscal year 1998.
‘‘(2) FUNDING.—$23,000,000 of the amounts ap-
propriated under subsection (h)(1) for fiscal year
2000 may be used for grants under paragraph (1) of
this subsection.’’.
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(b) LIMITATION ON AUTHORIZATION OF APPROPRIA-
TIONS.—Section 473A(h)(1) of the Social Security Act (42
U.S.C. 673b(h)(1)) is amended to read as follows:
‘‘(1) IN GENERAL.—For grants under subsection
(a), there are authorized to be appropriated to the
Secretary—
‘‘(A) $20,000,000 for fiscal year 1999;
‘‘(B) $43,000,000 for fiscal year 2000; and
‘‘(C) $20,000,000 for each of fiscal years
2001 through 2003.’’.
TITLE II—SSI FRAUD
PREVENTION
Subtitle A—Fraud Prevention and
Related Provisions
SEC. 201. LIABILITY OF REPRESENTATIVE PAYEES FOR
OVERPAYMENTS TO DECEASED RECIPIENTS.
(a) AMENDMENT TO TITLE II.—Section 204(a)(2) of
the Social Security Act (42 U.S.C. 404(a)(2)) is amended
by adding at the end the following new sentence: ‘‘If any
payment of more than the correct amount is made to a 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
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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
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)
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of this Act or under an agreement entered into under
section 212(a) of Public Law 93–66) shall, as at least
one means of recovering such overpayment, make the
adjustment or recovery from the lump sum payment
in an amount equal to not less than the lesser of the
amount of the overpayment or 50 percent of the lump
sum payment,’’ before ‘‘unless fraud’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall take effect 12 months after the date of the 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.
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‘‘(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;
‘‘(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.
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‘‘(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-
tion would work an undue hardship (as determined on the
basis of criteria established by the Commissioner) on the
individual.
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‘‘(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
is entitled but does not receive or have access to
because of action by—
‘‘(I) the individual or spouse;
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‘‘(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.’’.
(c) CONFORMING AMENDMENTS.—Section 1902(a)(10)
of the Social Security Act (42 U.S.C. 1396a(a)(10)) is
amended—
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(1) by striking ‘‘and’’ at the end of subpara-
graph (E);
(2) by adding ‘‘and’’ at the end of subparagraph
(F); and
(3) by inserting after subparagraph (F) the fol-
lowing:
‘‘(G) that, in applying eligibility criteria of
the supplemental security income program under
title XVI for purposes of determining eligibility
for medical assistance under the State plan of an
individual who is not receiving supplemental se-
curity income, the State will disregard the provi-
sions of section 1613(e);’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall take effect on January 1, 2000, and shall apply
to trusts established on or after such date.
SEC. 206. DISPOSAL OF RESOURCES FOR LESS THAN FAIR
MARKET VALUE UNDER THE SSI PROGRAM.
(a) IN GENERAL.—Section 1613(c) of the Social 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)—
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(i) by inserting ‘‘paragraph (1) and’’
after ‘‘provisions of’’;
(ii) by striking ‘‘title XIX’’ the first
place it appears and inserting ‘‘this title
and title XIX, respectively,’’;
(iii) by striking ‘‘subparagraph (B)’’
and inserting ‘‘clause (ii)’’;
(iv) by striking ‘‘paragraph (2)’’ and
inserting ‘‘subparagraph (B)’’;
(B) in subparagraph (B)—
(i) by striking ‘‘by the State agency’’;
and
(ii) by striking ‘‘section 1917(c)’’ and
all that follows and inserting ‘‘paragraph
(1) or section 1917(c).’’; and
(C) by redesignating subparagraphs (A)
and (B) as clauses (i) and (ii), respectively;
(3) in paragraph (2)—
(A) by striking ‘‘(2)’’ and inserting ‘‘(B)’’;
and
(B) by striking ‘‘paragraph (1)(B)’’ and in-
serting ‘‘subparagraph (A)(ii)’’;
(4) by striking ‘‘(c)(1)’’ and inserting ‘‘(2)(A)’’;
and
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(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).
‘‘(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—
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‘‘(I) the total, cumulative uncompensated value
of all resources so disposed of by the individual (or
the spouse of the individual) on or after the look-back
date described in clause (ii)(I); divided by
‘‘(II) the amount of the maximum monthly ben-
efit payable under section 1611(b), plus the amount
(if any) of the maximum State supplementary pay-
ment corresponding to the State’s payment level ap-
plicable to the individual’s living arrangement and
eligibility category that would otherwise be payable to
the individual by the Commissioner pursuant to an
agreement under section 1616(a) of this Act or section
212(b) of Public Law 93–66, for the month in which
occurs the date described in clause (ii)(II),
rounded, in the case of any fraction, to the nearest whole
number, but shall not in any case exceed 36 months.
‘‘(B)(i) Notwithstanding subparagraph (A), this sub-
section shall not apply to a transfer of a resource to a trust
if the portion of the trust attributable to the resource is 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-
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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.
‘‘(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
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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—
‘‘(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-
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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
‘‘(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
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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
this Act and of the type described in section 212(b)
of Public Law 93–66;
‘‘(ii) the term ‘institutionalized individual’ has
the meaning given such term in section 1917(e)(3);
and
‘‘(iii) the term ‘trust’ has the meaning given
such term in subsection (e)(6)(A) of this section.’’.
(b) CONFORMING AMENDMENT.—Section 1902(a)(10)
of the Social Security Act (42 U.S.C. 1396a(a)(10)), as
amended by section 205(c) of this Act, is amended by strik-
ing ‘‘section 1613(e)’’ and inserting ‘‘subsections (c) and (e)
of section 1613’’.
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(c) EFFECTIVE DATE.—The amendments made by this
section shall be effective with respect to disposals made on
or after the date of the enactment of this Act.
SEC. 207. ADMINISTRATIVE PROCEDURE FOR IMPOSING
PENALTIES 
FOR 
FALSE 
OR 
MISLEADING
STATEMENTS.
(a) IN GENERAL.—Part A of title XI of the Social 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,
that the person knows or should know is false or misleading
or knows or should know omits a material fact or who
makes such a statement with knowing disregard for the
truth shall be subject to, in addition to any other penalties
that may be prescribed by law, a penalty described in sub-
section (b) to be imposed by the Commissioner of Social
Security.
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‘‘(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) six consecutive months, in the case of the
first such determination with respect to the person;
‘‘(2) twelve consecutive months, in the case of the
second such determination with respect to the person;
and
‘‘(3) twenty-four consecutive months, in the case
of the third or subsequent such determination with re-
spect 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
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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.’’.
(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:
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‘‘(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
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.
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SEC. 208. 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 is amended by inserting before section 1137 (42
U.S.C. 1320b–7) the following:
‘‘EXCLUSION
OF
REPRESENTATIVES
AND
HEALTH
CARE
PROVIDERS CONVICTED OF VIOLATIONS FROM PARTICI-
PATION IN SOCIAL SECURITY PROGRAMS
‘‘SEC. 1136. (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-
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.
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‘‘(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
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-
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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 the enactment) been convicted, or
if such a determination has been made with respect to the
individual—
‘‘(i) on one previous occasion of one or more of-
fenses for which an exclusion may be effected under
such subsection, the period of the exclusion shall be
not less than 10 years; or
‘‘(ii) on two or more previous occasions of one or
more offenses for which an exclusion may be 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
‘‘(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.
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‘‘(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
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.
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‘‘(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
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
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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:
‘‘(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 section
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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—
‘‘(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;
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‘‘(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 1136(a) of
the Social Security Act and determinations described in
paragraph (3) of such section occurring on or after the date
of the enactment of this Act.
SEC. 209. STATE DATA EXCHANGES.
Whenever the Commissioner of Social Security requests
information from a State for the purpose of ascertaining
an individual’s eligibility for benefits (or the correct
amount of such benefits) under title II or XVI of the Social
Security Act, the standards of the Commissioner 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
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that would otherwise apply to the disclosure of information
by the State to the Commissioner.
SEC. 210. STUDY ON POSSIBLE MEASURES TO IMPROVE
FRAUD PREVENTION AND ADMINISTRATIVE
PROCESSING.
(a) STUDY.—As soon as practicable after the date of
the enactment of this Act, the Commissioner of Social 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
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
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such recommendations for legislative and administrative
changes as the Commissioner considers appropriate.
SEC. 211. ANNUAL REPORT ON AMOUNTS NECESSARY TO
COMBAT FRAUD.
(a) IN GENERAL.—Section 704(b)(1) of the Social 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.
SEC. 212. 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)) is amended by adding
at the end the following:
‘‘(J) For the purpose of carrying out this paragraph,
the Commissioner of Social Security shall conduct periodic
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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 (J)’’.
SEC. 213. ACCESS TO INFORMATION HELD BY FINANCIAL
INSTITUTIONS.
Section 1631(e)(1)(B) of the Social Security Act (42
U.S.C. 1383(e)(1)(B)) is amended—
(1) by striking ‘‘(B) The’’ and inserting ‘‘(B)(i)
The’’; and
(2) by adding at the end the following new
clause:
‘‘(ii)(I) The Commissioner of Social Security may 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-
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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
(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-
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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-
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-
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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 Certain
World War II Veterans
SEC. 251. ESTABLISHMENT OF PROGRAM OF SPECIAL BENE-
FITS FOR CERTAIN WORLD WAR II VETERANS.
(a) IN GENERAL.—The Social Security Act is amend-
ed by inserting after title VII the following new title:
‘‘TITLE VIII—SPECIAL BENEFITS
FOR CERTAIN WORLD WAR II
VETERANS
‘‘TABLE OF CONTENTS
‘‘Sec. 801. Basic entitlement to benefits.
‘‘Sec. 802. Qualified individuals.
‘‘Sec. 803. Residence outside the United States.
‘‘Sec. 804. Disqualifications.
‘‘Sec. 805. Benefit amount.
‘‘Sec. 806. Applications and furnishing of information.
‘‘Sec. 807. Representative payees.
‘‘Sec. 808. Overpayments and underpayments.
‘‘Sec. 809. Hearings and review.
‘‘Sec. 810. Other administrative provisions.
‘‘Sec. 811. Penalties for fraud.
‘‘Sec. 812. Definitions.
‘‘Sec. 813. Appropriations.
‘‘SEC. 801. BASIC ENTITLEMENT TO BENEFITS.
‘‘Every individual who is a qualified individual under
section 802 shall, in accordance with and subject to the pro-
visions of this title, be entitled to a monthly benefit paid
by the Commissioner of Social Security for each month
after September 2000 (or such earlier month, if the Com-
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missioner determines is administratively feasible) the indi-
vidual resides outside the United States.
‘‘SEC. 802. QUALIFIED INDIVIDUALS.
‘‘Except as otherwise provided in this title, an
individual—
‘‘(1) who has attained the age of 65 on or before
the date of the enactment of this title;
‘‘(2) who is a World War II veteran;
‘‘(3) who is eligible for a supplemental security
income benefit under title XVI for—
‘‘(A) the month in which this title is en-
acted; and
‘‘(B) the month in which the individual
files an application for benefits under this title;
‘‘(4) whose total benefit income is less than 75
percent of the Federal benefit rate under title XVI;
‘‘(5) who has filed an application for benefits
under this title; and
‘‘(6) who is in compliance with all requirements
imposed by the Commissioner of Social Security
under this title,
shall be a qualified individual for purposes of this title.
‘‘SEC. 803. RESIDENCE OUTSIDE THE UNITED STATES.
‘‘For purposes of section 801, with respect to any
month, an individual shall be regarded as residing outside
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the United States if, on the first day of the month, the indi-
vidual so resides outside the United States.
‘‘SEC. 804. DISQUALIFICATIONS.
‘‘(a) IN GENERAL.—Notwithstanding section 802, an
individual may not be a qualified individual for any
month—
‘‘(1) that begins after the month in which the
Commissioner of Social Security is notified by the At-
torney General that the individual has been removed
from the United States pursuant to section 237(a) or
212(a)(6)(A) of the Immigration and Nationality Act
and before the month in which the individual is law-
fully admitted to the United States for permanent
residence;
‘‘(2) during any part of which the individual is
fleeing to avoid prosecution, or custody or confine-
ment after conviction, under the laws of the United
States or the jurisdiction within the United States
from which the person has fled, for a crime, or an at-
tempt to commit a crime, that is a felony under the
laws of the place from which the individual has fled,
or which, in the case of the State of New Jersey, is
a high misdemeanor under the laws of such State;
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‘‘(3) during any part of which the individual
violates a condition of probation or parole imposed
under Federal or State law; or
‘‘(4) during which the individual resides in a
foreign country and is not a citizen or national of the
United States if payments for such month to individ-
uals residing in such country are withheld by the
Treasury Department under section 3329 of title 31,
United States Code.
‘‘(b) REQUIREMENT FOR ATTORNEY GENERAL.—For
the purpose of carrying out subsection (a)(1), the Attorney
General shall notify the Commissioner of Social Security
as soon as practicable after the removal of any individual
under section 237(a) or 212(a)(6)(A) of the Immigration
and Nationality Act.
‘‘SEC. 805. BENEFIT AMOUNT.
‘‘The benefit under this title payable to a qualified in-
dividual for any month shall be in an amount equal to 75
percent of the Federal benefit rate under title XVI for the
month, reduced by the amount of the qualified individual’s
benefit income for the month.
‘‘SEC. 806. APPLICATIONS AND FURNISHING OF INFORMA-
TION.
‘‘(a) IN GENERAL.—The Commissioner of Social Secu-
rity shall, subject to subsection (b), prescribe such require-
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ments with respect to the filing of applications, the fur-
nishing of information and other material, and the report-
ing of events and changes in circumstances, as may be nec-
essary for the effective and efficient administration of this
title.
‘‘(b) VERIFICATION REQUIREMENT.—The requirements
prescribed by the Commissioner of Social Security under
subsection (a) shall preclude any determination of entitle-
ment to benefits under this title solely on the basis of dec-
larations by the individual concerning qualifications or
other material facts, and shall provide for verification of
material information from independent or collateral
sources, and the procurement of additional information as
necessary in order to ensure that the benefits are provided
only to qualified individuals (or their representative pay-
ees) in correct amounts.
‘‘SEC. 807. REPRESENTATIVE PAYEES.
‘‘(a) IN GENERAL.—If the Commissioner of Social Se-
curity determines that the interest of any qualified indi-
vidual under this title would be served thereby, payment
of the qualified individual’s benefit under this title may be
made, regardless of the legal competency or incompetency
of the qualified individual, either directly to the qualified
individual, or for his or her benefit, to another person (the
meaning of which term, for purposes of this section, includes
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an organization) with respect to whom the requirements of
subsection (b) have been met (in this section referred to as
the qualified individual’s ‘representative payee’). If the
Commissioner of Social Security determines that a rep-
resentative payee has misused any benefit paid to the rep-
resentative payee pursuant to this section, section 205(j),
or section 1631(a)(2), the Commissioner of Social Security
shall promptly revoke the person’s designation as the quali-
fied individual’s representative payee under this subsection,
and shall make payment to an alternative representative
payee or, if the interest of the qualified individual under
this title would be served thereby, to the qualified indi-
vidual.
‘‘(b) EXAMINATION OF FITNESS OF PROSPECTIVE REP-
RESENTATIVE PAYEE.—
‘‘(1) Any determination under subsection (a) to
pay the benefits of a qualified individual to a rep-
resentative payee shall be made on the basis of—
‘‘(A) an investigation by the Commissioner
of Social Security of the person to serve as rep-
resentative payee, which shall be conducted in
advance of the determination and shall, to the
extent practicable, include a face-to-face inter-
view with the person (or, in the case of an orga-
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nization, a representative of the organization);
and
‘‘(B) adequate evidence that the arrange-
ment is in the interest of the qualified indi-
vidual.
‘‘(2) As part of the investigation referred to in
paragraph (1), the Commissioner of Social Security
shall—
‘‘(A) require the person being investigated
to submit documented proof of the identity of the
person;
‘‘(B) in the case of a person who has a so-
cial security account number issued for purposes
of the program under title II or an employer
identification number issued for purposes of the
Internal Revenue Code of 1986, verify the num-
ber;
‘‘(C) determine whether the person has been
convicted of a violation of section 208, 811, or
1632; and
‘‘(D) determine whether payment of benefits
to the person in the capacity as representative
payee has been revoked or terminated pursuant
to this section, section 205(j), or section
1631(a)(2)(A)(iii) by reason of misuse of funds
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paid as benefits under this title, title II, or XVI,
respectively.
‘‘(c) REQUIREMENT FOR MAINTAINING LISTS OF UN-
DESIRABLE PAYEES.—The Commissioner of Social Security
shall establish and maintain lists which shall be updated
periodically and which shall be in a form that renders such
lists available to the servicing offices of the Social Security
Administration. The lists shall consist of—
‘‘(1) the names and (if issued) social security ac-
count numbers or employer identification numbers of
all persons with respect to whom, in the capacity of
representative payee, the payment of benefits has been
revoked or terminated under this section, section
205(j), or section 1631(a)(2)(A)(iii) by reason of mis-
use of funds paid as benefits under this title, title II,
or XVI, respectively; and
‘‘(2) the names and (if issued) social security ac-
count numbers or employer identification numbers of
all persons who have been convicted of a violation of
section 208, 811, or 1632.
‘‘(d) PERSONS INELIGIBLE TO SERVE AS REPRESENT-
ATIVE PAYEES.—
‘‘(1) IN GENERAL.—The benefits of a qualified
individual may not be paid to any other person pur-
suant to this section if—
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‘‘(A) the person has been convicted of a vio-
lation of section 208, 811, or 1632;
‘‘(B) except as provided in paragraph (2),
payment of benefits to the person in the capacity
of representative payee has been revoked or ter-
minated under this section, section 205(j), or sec-
tion 1631(a)(2)(A)(ii) by reason of misuse of
funds paid as benefits under this title, title II,
or title XVI, respectively; or
‘‘(C) except as provided in paragraph
(2)(B), the person is a creditor of the qualified
individual and provides the qualified individual
with goods or services for consideration.
‘‘(2) EXEMPTIONS.—
‘‘(A) The Commissioner of Social Security
may prescribe circumstances under which the
Commissioner of Social Security may grant an
exemption from paragraph (1) to any person on
a case-by-case basis if the exemption is in the
best interest of the qualified individual whose
benefits would be paid to the person pursuant to
this section.
‘‘(B) Paragraph (1)(C) shall not apply with
respect to any person who is a creditor referred
to in such paragraph if the creditor is—
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‘‘(i) a relative of the qualified indi-
vidual and the relative resides in the same
household as the qualified individual;
‘‘(ii) a legal guardian or legal rep-
resentative of the individual;
‘‘(iii) a facility that is licensed or cer-
tified as a care facility under the law of the
political jurisdiction in which the qualified
individual resides;
‘‘(iv) a person who is an adminis-
trator, owner, or employee of a facility re-
ferred to in clause (iii), if the qualified in-
dividual resides in the facility, and the
payment to the facility or the person is
made only after the Commissioner of Social
Security has made a good faith effort to lo-
cate an alternative representative payee to
whom payment would serve the best inter-
ests of the qualified individual; or
‘‘(v) a person who is determined by the
Commissioner of Social Security, on the
basis of written findings and pursuant to
procedures prescribed by the Commissioner
of Social Security, to be acceptable to serve
as a representative payee.
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‘‘(C) The procedures referred to in subpara-
graph (B)(v) shall require the person who will
serve as representative payee to establish, to the
satisfaction of the Commissioner of Social Secu-
rity, that—
‘‘(i) the person poses no risk to the
qualified individual;
‘‘(ii) the financial relationship of the
person to the qualified individual poses no
substantial conflict of interest; and
‘‘(iii) no other more suitable represent-
ative payee can be found.
‘‘(e) DEFERRAL OF PAYMENT PENDING APPOINTMENT
OF REPRESENTATIVE PAYEE.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), if
the Commissioner of Social Security makes a deter-
mination described in the first sentence of subsection
(a) with respect to any qualified individual’s benefit
and determines that direct payment of the benefit to
the qualified individual would cause substantial harm
to the qualified individual, the Commissioner of So-
cial Security may defer (in the case of initial entitle-
ment) or suspend (in the case of existing entitlement)
direct payment of the benefit to the qualified indi-
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vidual, until such time as the selection of a represent-
ative payee is made pursuant to this section.
‘‘(2) TIME LIMITATION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), any deferral or suspension of
direct payment of a benefit pursuant to para-
graph (1) shall be for a period of not more than
1 month.
‘‘(B) EXCEPTION IN THE CASE OF INCOM-
PETENCY.—Subparagraph (A) shall not apply in
any case in which the qualified individual is, as
of the date of the Commissioner of Social Secu-
rity’s determination, legally incompetent under
the laws of the jurisdiction in which the indi-
vidual resides.
‘‘(3) PAYMENT
OF
RETROACTIVE
BENEFITS.—
Payment of any benefits which are deferred or sus-
pended pending the selection of a representative payee
shall be made to the qualified individual or the rep-
resentative payee as a single sum or over such period
of time as the Commissioner of Social Security deter-
mines is in the best interest of the qualified indi-
vidual.
‘‘(f) HEARING.—Any qualified individual who is dis-
satisfied with a determination by the Commissioner of So-
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cial Security to make payment of the qualified individual’s
benefit to a representative payee under subsection (a) of this
section or with the designation of a particular person to
serve as representative payee shall be entitled to a hearing
by the Commissioner of Social Security to the same extent
as is provided in section 809(a), and to judicial review of
the Commissioner of Social Security’s final decision as is
provided in section 809(b).
‘‘(g) NOTICE REQUIREMENTS.—
‘‘(1) IN
GENERAL.—In advance, to the extent
practicable, of the payment of a qualified individual’s
benefit to a representative payee under subsection (a),
the Commissioner of Social Security shall provide
written notice of the Commissioner’s initial deter-
mination to so make the payment. The notice shall be
provided to the qualified individual, except that, if
the qualified individual is legally incompetent, then
the notice shall be provided solely to the legal guard-
ian or legal representative of the qualified individual.
‘‘(2) SPECIFIC REQUIREMENTS.—Any notice re-
quired by paragraph (1) shall be clearly written in
language that is easily understandable to the reader,
shall identify the person to be designated as the quali-
fied individual’s representative payee, and shall ex-
plain to the reader the right under subsection (f) of
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the qualified individual or of the qualified individ-
ual’s legal guardian or legal representative—
‘‘(A) to appeal a determination that a rep-
resentative payee is necessary for the qualified
individual;
‘‘(B) to appeal the designation of a par-
ticular person to serve as the representative
payee of the qualified individual; and
‘‘(C) to review the evidence upon which the
designation is based and to submit additional
evidence.
‘‘(h) ACCOUNTABILITY MONITORING.—
‘‘(1) IN GENERAL.—In any case where payment
under this title is made to a person other than the
qualified individual entitled to the payment, the
Commissioner of Social Security shall establish a sys-
tem of accountability monitoring under which the
person shall report not less often than annually with
respect to the use of the payments. The Commissioner
of Social Security shall establish and implement sta-
tistically valid procedures for reviewing the reports in
order to identify instances in which persons are not
properly using the payments.
‘‘(2) SPECIAL REPORTS.—Notwithstanding para-
graph (1), the Commissioner of Social Security may
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require a report at any time from any person receiv-
ing payments on behalf of a qualified individual, if
the Commissioner of Social Security has reason to be-
lieve that the person receiving the payments is mis-
using the payments.
‘‘(3) MAINTAINING LISTS OF PAYEES.—The Com-
missioner of Social Security shall maintain lists
which shall be updated periodically of—
‘‘(A) the name, address, and (if issued) the
social security account number or employer iden-
tification number of each representative payee
who is receiving benefit payments pursuant to
this section, section 205(j), or section 1631(a)(2);
and
‘‘(B) the name, address, and social security
account number of each individual for whom
each representative payee is reported to be pro-
viding services as representative payee pursuant
to this section, section 205(j), or section
1631(a)(2).
‘‘(4) MAINTAINING
LISTS
OF
AGENCIES.—The
Commissioner of Social Security shall maintain lists,
which shall be updated periodically, of public agencies
and community-based nonprofit social service agen-
cies which are qualified to serve as representative
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payees pursuant to this section and which are located
in the jurisdiction in which any qualified individual
resides.
‘‘(i) RESTITUTION.—In any case where the negligent
failure of the Commissioner of Social Security to investigate
or monitor a representative payee results in misuse of bene-
fits by the representative payee, the Commissioner of Social
Security shall make payment to the qualified individual or
the individual’s alternative representative payee of an
amount equal to the misused benefits. The Commissioner
of Social Security shall make a good faith effort to obtain
restitution from the terminated representative payee.
‘‘SEC. 808. OVERPAYMENTS AND UNDERPAYMENTS.
‘‘(a) IN GENERAL.—Whenever the Commissioner of So-
cial Security finds that more or less than the correct
amount of payment has been made to any person under
this title, proper adjustment or recovery shall be made, as
follows:
‘‘(1) With respect to payment to a person of
more than the correct amount, the Commissioner of
Social Security shall decrease any payment—
‘‘(A) under this title to which the overpaid
person (if a qualified individual) is entitled, or
shall require the overpaid person or his or her es-
tate to refund the amount in excess of the correct
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amount, or, if recovery is not obtained under
these 2 methods, shall seek or pursue recovery by
means of reduction in tax refunds based on no-
tice to the Secretary of the Treasury, as author-
ized under section 3720A of title 31, United
States Code; or
‘‘(B) under title II to recover the amount in
excess of the correct amount, if the person is not
currently eligible for payment under this title.
‘‘(2) With respect to payment of less than the
correct amount to a qualified individual who, at the
time the Commissioner of Social Security is prepared
to take action with respect to the underpayment—
‘‘(A) is living, the Commissioner of Social
Security shall make payment to the qualified in-
dividual (or the qualified individual’s represent-
ative payee designated under section 807) of the
balance of the amount due the underpaid quali-
fied individual; or
‘‘(B) is deceased, the balance of the amount
due shall revert to the general fund of the Treas-
ury.
‘‘(b) NO EFFECT ON TITLE VIII ELIGIBILITY OR BEN-
EFIT AMOUNT.—In any case in which the Commissioner
of Social Security takes action in accordance with sub-
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section (a)(1)(B) to recover an amount incorrectly paid to
an individual, that individual shall not, as a result of such
action—
‘‘(1) become qualified for benefits under this title;
or
‘‘(2) if such individual is otherwise so qualified,
become qualified for increased benefits under this
title.
‘‘(c) WAIVER OF RECOVERY OF OVERPAYMENT.—In
any case in which more than the correct amount of payment
has been made, there shall be no adjustment of payments
to, or recovery by the United States from, any person who
is without fault if the Commissioner of Social Security de-
termines that the adjustment or recovery would defeat the
purpose of this title or would be against equity and good
conscience.
‘‘(d) LIMITED IMMUNITY
FOR DISBURSING OFFI-
CERS.—A disbursing officer may not be held liable for any
amount paid by the officer if the adjustment or recovery
of the amount is waived under subsection (b), or adjustment
under subsection (a) is not completed before the death of
the qualified individual against whose benefits deductions
are authorized.
‘‘(e) AUTHORIZED COLLECTION PRACTICES.—
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‘‘(1) IN GENERAL.—With respect to any delin-
quent amount, the Commissioner of Social Security
may use the collection practices described in sections
3711(e), 3716, and 3718 of title 31, United States
Code, as in effect on October 1, 1994.
‘‘(2) DEFINITION.—For purposes of paragraph
(1), 
the 
term 
‘delinquent 
amount’ 
means 
an
amount—
‘‘(A) in excess of the correct amount of the
payment under this title; and
‘‘(B) determined by the Commissioner of
Social Security to be otherwise unrecoverable
under this section from a person who is not a
qualified individual under this title.
‘‘SEC. 809. HEARINGS AND REVIEW.
‘‘(a) HEARINGS.—
‘‘(1) IN GENERAL.—The Commissioner of Social
Security shall make findings of fact and decisions as
to the rights of any individual applying for payment
under this title. The Commissioner of Social Security
shall provide reasonable notice and opportunity for a
hearing to any individual who is or claims to be a
qualified individual and is in disagreement with any
determination under this title with respect to entitle-
ment to, or the amount of, benefits under this title,
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if the individual requests a hearing on the matter in
disagreement within 60 days after notice of the deter-
mination is received, and, if a hearing is held, shall,
on the basis of evidence adduced at the hearing af-
firm, modify, or reverse the Commissioner of Social
Security’s findings of fact and the decision. The Com-
missioner of Social Security may, on the Commis-
sioner of Social Security’s own motion, hold such
hearings and conduct such investigations and other
proceedings as the Commissioner of Social Security
deems necessary or proper for the administration of
this title. In the course of any hearing, investigation,
or other proceeding, the Commissioner may admin-
ister oaths and affirmations, examine witnesses, and
receive evidence. Evidence may be received at any
hearing before the Commissioner of Social Security
even though inadmissible under the rules of evidence
applicable to court procedure. The Commissioner of
Social Security shall specifically take into account
any physical, mental, educational, or linguistic limi-
tation of the individual (including any lack of facil-
ity with the English language) in determining, with
respect to the entitlement of the individual for benefits
under this title, whether the individual acted in good
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faith or was at fault, and in determining fraud, de-
ception, or intent.
‘‘(2) EFFECT OF FAILURE TO TIMELY REQUEST
REVIEW.—A failure to timely request review of an
initial adverse determination with respect to an ap-
plication for any payment under this title or an ad-
verse determination on reconsideration of such an ini-
tial determination shall not serve as a basis for de-
nial of a subsequent application for any payment
under this title if the applicant demonstrates that the
applicant failed to so request such a review acting in
good faith reliance upon incorrect, incomplete, or
misleading information, relating to the consequences
of reapplying for payments in lieu of seeking review
of an adverse determination, provided by any officer
or employee of the Social Security Administration.
‘‘(3) NOTICE REQUIREMENTS.—In any notice of
an adverse determination with respect to which a re-
view may be requested under paragraph (1), the Com-
missioner of Social Security shall describe in clear
and specific language the effect on possible entitlement
to benefits under this title of choosing to reapply in
lieu of requesting review of the determination.
‘‘(b) JUDICIAL REVIEW.—The final determination of
the Commissioner of Social Security after a hearing under
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subsection (a)(1) shall be subject to judicial review as pro-
vided in section 205(g) to the same extent as the Commis-
sioner of Social Security’s final determinations under sec-
tion 205.
‘‘SEC. 810. OTHER ADMINISTRATIVE PROVISIONS.
‘‘(a) REGULATIONS AND ADMINISTRATIVE ARRANGE-
MENTS.—The Commissioner of Social Security may pre-
scribe such regulations, and make such administrative and
other arrangements, as may be necessary or appropriate to
carry out this title.
‘‘(b) PAYMENT OF BENEFITS.—Benefits under this title
shall be paid at such time or times and in such installments
as the Commissioner of Social Security determines are in
the interests of economy and efficiency.
‘‘(c) ENTITLEMENT REDETERMINATIONS.—An indi-
vidual’s entitlement to benefits under this title, and the
amount of the benefits, may be redetermined at such time
or times as the Commissioner of Social Security determines
to be appropriate.
‘‘(d) SUSPENSION AND TERMINATION OF BENEFITS.—
Regulations prescribed by the Commissioner of Social Secu-
rity under subsection (a) may provide for the suspension
and termination of entitlement to benefits under this title
as the Commissioner determines is appropriate.
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‘‘SEC. 811. PENALTIES FOR FRAUD.
‘‘(a) IN GENERAL.—Whoever—
‘‘(1) knowingly and willfully makes or causes to
be made any false statement or representation of a
material fact in an application for benefits under this
title;
‘‘(2) at any time knowingly and willfully makes
or causes to be made any false statement or represen-
tation of a material fact for use in determining any
right to the benefits;
‘‘(3) having knowledge of the occurrence of any
event affecting—
‘‘(A) his or her initial or continued right to
the benefits; or
‘‘(B) the initial or continued right to the
benefits of any other individual in whose behalf
he or she has applied for or is receiving the ben-
efit,
conceals or fails to disclose the event with an intent
fraudulently to secure the benefit either in a greater
amount or quantity than is due or when no such ben-
efit is authorized; or
‘‘(4) having made application to receive any
such benefit for the use and benefit of another and
having received it, knowingly and willfully converts
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the benefit or any part thereof to a use other than for
the use and benefit of the other individual,
shall be fined under title 18, United States Code, impris-
oned not more than 5 years, or both.
‘‘(b) RESTITUTION BY REPRESENTATIVE PAYEE.—If a
person or organization violates subsection (a) in the per-
son’s or organization’s role as, or in applying to become,
a representative payee under section 807 on behalf of a
qualified individual, and the violation includes a willful
misuse of funds by the person or entity, the court may also
require that full or partial restitution of funds be made to
the qualified individual.
‘‘SEC. 812. DEFINITIONS.
‘‘In this title:
‘‘(1) WORLD WAR II VETERAN.—The term ‘World
War II veteran’ means a person who—
‘‘(A) served during World War II—
‘‘(i) in the active military, naval, or
air service of the United States during
World War II; or
‘‘(ii) in the organized military forces of
the Government of the Commonwealth of the
Philippines, while the forces were in the
service of the Armed Forces of the United
States pursuant to the military order of the
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President dated July 26, 1941, including
among the military forces organized guer-
rilla forces under commanders appointed,
designated, or subsequently recognized by
the Commander in Chief, Southwest Pacific
Area, or other competent authority in the
Army of the United States, in any case in
which the service was rendered before De-
cember 31, 1946; and
‘‘(B) was discharged or released therefrom
under conditions other than dishonorable—
‘‘(i) after service of 90 days or more; or
‘‘(ii) because of a disability or injury
incurred or aggravated in the line of active
duty.
‘‘(2) WORLD WAR II.—The term ‘World War II’
means the period beginning on September 16, 1940,
and ending on July 24, 1947.
‘‘(3) SUPPLEMENTAL SECURITY INCOME BENEFIT
UNDER TITLE XVI.—The term ‘supplemental security
income benefit under title XVI’, except as otherwise
provided, includes State supplementary payments
which are paid by the Commissioner of Social Secu-
rity pursuant to an agreement under section 1616(a)
of this Act or section 212(b) of Public Law 93–66.
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‘‘(4) FEDERAL
BENEFIT
RATE
UNDER
TITLE
XVI.—The term ‘Federal benefit rate under title XVI’
means, with respect to any month, the amount of the
supplemental security income cash benefit (not in-
cluding any State supplementary payment which is
paid by the Commissioner of Social Security pursu-
ant to an agreement under section 1616(a) of this Act
or section 212(b) of Public Law 93–66) payable under
title XVI for the month to an eligible individual with
no income.
‘‘(5) UNITED STATES.—The term ‘United States’
means, notwithstanding section 1101(a)(1), only the
50 States, the District of Columbia, and the Common-
wealth of the Northern Mariana Islands.
‘‘(6) BENEFIT INCOME.—The term ‘benefit in-
come’ means any recurring payment received by a
qualified individual as an annuity, pension, retire-
ment, or disability benefit (including any veterans’
compensation or pension, workmen’s compensation
payment, old-age, survivors, or disability insurance
benefit, railroad retirement annuity or pension, and
unemployment insurance benefit), but only if a simi-
lar payment was received by the individual from the
same (or a related) source during the 12-month pe-
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riod preceding the month in which the individual files
an application for benefits under this title.
‘‘SEC. 813. APPROPRIATIONS.
‘‘There are hereby appropriated for fiscal year 2000
and subsequent fiscal years, out of any funds in the Treas-
ury not otherwise appropriated, such sums as may be nec-
essary to carry out this title.’’.
(b) CONFORMING AMENDMENTS.—
(1) SOCIAL
SECURITY
TRUST
FUNDS
LAE
AC-
COUNT.—Section 201(g) of such Act (42 U.S.C.
401(g)) is amended—
(A) in the fourth sentence of paragraph
(1)(A), by inserting after ‘‘this title,’’ the fol-
lowing: ‘‘title VIII,’’;
(B) in paragraph (1)(B)(i)(I), by inserting
after ‘‘this title,’’ the following: ‘‘title VIII,’’; and
(C) in paragraph (1)(C)(i), by inserting
after ‘‘this title,’’ the following: ‘‘title VIII,’’.
(2) REPRESENTATIVE
PAYEE
PROVISIONS
OF
TITLE
II.—Section 205(j) of such Act (42 U.S.C.
405(j)) is amended—
(A) in paragraph (1)(A), by inserting ‘‘807
or’’ before ‘‘1631(a)(2)’’;
(B) in paragraph (2)(B)(i)(I), by inserting
‘‘, title VIII,’’ before ‘‘or title XVI’’;
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(C) in paragraph (2)(B)(i)(III), by insert-
ing ‘‘, 811,’’ before ‘‘or 1632’’;
(D) in paragraph (2)(B)(i)(IV)—
(i) by inserting ‘‘, the designation of
such person as a representative payee has
been revoked pursuant to section 807(a),’’
before ‘‘or payment of benefits’’; and
(ii) by inserting ‘‘, title VIII,’’ before
‘‘or title XVI’’;
(E) in paragraph (2)(B)(ii)(I)—
(i) by inserting ‘‘whose designation as
a representative payee has been revoked
pursuant to section 807(a),’’ before ‘‘or with
respect to whom’’; and
(ii) by inserting ‘‘, title VIII,’’ before
‘‘or title XVI’’;
(F) in paragraph (2)(B)(ii)(II), by insert-
ing ‘‘, 811,’’ before ‘‘or 1632’’;
(G) in paragraph (2)(C)(i)(II), by inserting
‘‘, the designation of such person as a representa-
tive payee has been revoked pursuant to section
807(a),’’ before ‘‘or payment of benefits’’;
(H) in each of clauses (i) and (ii) of para-
graph (3)(E), by inserting ‘‘, section 807,’’ before
‘‘or section 1631(a)(2)’’;
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(I) in paragraph (3)(F), by inserting ‘‘807
or’’ before ‘‘1631(a)(2)’’; and
(J) in paragraph (4)(B)(i), by inserting
‘‘807 or’’ before ‘‘1631(a)(2)’’.
(3) WITHHOLDING FOR CHILD SUPPORT AND ALI-
MONY
OBLIGATIONS.—Section 459(h)(1)(A) of such
Act (42 U.S.C. 659(h)(1)(A)) is amended—
(A) at the end of clause (iii), by striking
‘‘and’’;
(B) at the end of clause (iv), by striking
‘‘but’’ and inserting ‘‘and’’; and
(C) by adding at the end a new clause as
follows:
‘‘(v) special benefits for certain World
War II veterans payable under title VIII;
but’’.
(4) SOCIAL
SECURITY
ADVISORY
BOARD.—Sec-
tion 703(b) of such Act (42 U.S.C. 903(b)) is amended
by striking ‘‘title II’’ and inserting ‘‘title II, the pro-
gram of special benefits for certain World War II vet-
erans under title VIII,’’.
(5) DELIVERY OF CHECKS.—Section 708 of such
Act (42 U.S.C. 908) is amended—
(A) in subsection (a), by striking ‘‘title II’’
and inserting ‘‘title II, title VIII,’’; and
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(B) in subsection (b), by striking ‘‘title II’’
and inserting ‘‘title II, title VIII,’’.
(6) CIVIL MONETARY PENALTIES.—Section 1129
of such Act (42 U.S.C. 1320a–8) is amended—
(A) in the title, by striking ‘‘II’’ and insert-
ing ‘‘II, VIII’’;
(B) in subsection (a)(1)—
(i) by striking ‘‘or’’ at the end of sub-
paragraph (A);
(ii) by redesignating subparagraph (B)
as subparagraph (C); and
(iii) by inserting after subparagraph
(A) the following new subparagraph:
‘‘(B) benefits or payments under title VIII,
or’’;
(C) in subsection (a)(2), by inserting ‘‘or
title VIII,’’ after ‘‘title II’’;
(D) in subsection (e)(1)(C)—
(i) by striking ‘‘or’’ at the end of clause
(i);
(ii) by redesignating clause (ii) as
clause (iii); and
(iii) by inserting after clause (i) the
following new clause:
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‘‘(ii) by decrease of any payment
under title VIII to which the person is enti-
tled, or’’;
(E) in subsection (e)(2)(B), by striking
‘‘title XVI’’ and inserting ‘‘title VIII or XVI’’;
and
(F) in subsection (l), by striking ‘‘title XVI’’
and inserting ‘‘title VIII or XVI’’.
(7) RECOVERY OF SSI OVERPAYMENTS.—Section
1147 of such Act (42 U.S.C. 1320b–17) is amended—
(A) in subsection (a)(1)—
(i) by inserting ‘‘or VIII’’ after ‘‘title
II’’ the first place it appears; and
(ii) by striking ‘‘title II’’ the second
place it appears and inserting ‘‘such title’’;
and
(B) in the heading, by striking ‘‘SOCIAL SE-
CURITY’’ and inserting ‘‘OTHER’’.
(8) RECOVERY OF SOCIAL SECURITY OVERPAY-
MENTS.—Part A of title XI of the Social Security Act
is amended by inserting after section 1147 (42 U.S.C.
1320b–17) the following new section:
‘‘RECOVERY OF SOCIAL SECURITY BENEFIT OVERPAYMENTS
FROM TITLE VIII BENEFITS
‘‘SEC. 1147A. Whenever the Commissioner of Social
Security determines that more than the correct amount of
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any payment has been made under title II to an individual
who is not currently receiving benefits under that title but
who is receiving benefits under title VIII, the Commissioner
may recover the amount incorrectly paid under title II by
decreasing any amount which is payable to the individual
under title VIII.’’.
(9) REPRESENTATIVE
PAYEE
PROVISIONS
OF
TITLE
XVI.—Section 1631(a)(2) of such Act (42
U.S.C. 1383(a)(2)) is amended—
(A) in subparagraph (A)(iii), by inserting
‘‘or 807’’ after ‘‘205(j)(1)’’;
(B) in subparagraph (B)(ii)(I), by inserting
‘‘, title VIII,’’ before ‘‘or this title’’;
(C) in subparagraph (B)(ii)(III), by insert-
ing ‘‘, 811,’’ before ‘‘or 1632’’;
(D) in subparagraph (B)(ii)(IV)—
(i) by inserting ‘‘whether the designa-
tion of such person as a representative
payee has been revoked pursuant to section
807(a),’’ before ‘‘and whether certification’’;
and
(ii) by inserting ‘‘, title VIII,’’ before
‘‘or this title’’;
(E) in subparagraph (B)(iii)(II), by insert-
ing ‘‘the designation of such person as a rep-
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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.
(m) Section 466(a)(7)(A) of the Social Security Act
(42 
U.S.C. 
666(a)(7)(A)) 
is 
amended 
by 
striking
‘‘1681a(f))’’ and inserting ‘‘1681a(f)))’’.
(n) Section 466(b)(6)(A) of the Social Security Act (42
U.S.C. 666(b)(6)(A)) is amended by striking ‘‘state’’ and
inserting ‘‘State’’.