I
106TH CONGRESS
1ST SESSION
H. R. 1802
To amend part E of title IV of the Social Security Act to provide States
with more funding and greater flexibility in carrying out programs de-
signed to help children make the transition from foster care to self-
sufficiency, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 13, 1999
Mrs. JOHNSON of Connecticut (for herself and Mr. CARDIN) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Commerce, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend part E of title IV of the Social Security Act
to provide States with more funding and greater flexi-
bility in carrying out programs designed to help children
make the transition from foster care to self-sufficiency,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Foster Care Independence Act of 1999’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—IMPROVED INDEPENDENT LIVING PROGRAM
Subtitle A—Improved Independent Living Program
Sec. 101. Improved independent living program.
Subtitle B—Related Foster Care Provision
Sec. 111. Increase in amount of assets allowable for children in foster care.
Subtitle C—Medicaid Amendments
Sec. 121. State option of medicaid coverage for adolescents leaving foster care.
TITLE II—SSI FRAUD PREVENTION
Subtitle A—Fraud Prevention and Related Provisions
Sec. 201. Liability of representative payees for overpayments to deceased recipi-
ents.
Sec. 202. Recovery of overpayments of SSI benefits from lump sum SSI benefit
payments.
Sec. 203. Additional debt collection practices.
Sec. 204. Requirement to provide State prisoner information to Federal and
federally assisted benefit programs.
Sec. 205. Rules relating to collection of overpayments from individuals con-
victed of crimes.
Sec. 206. Treatment of assets held in trust under the SSI program.
Sec. 207. Disposal of resources for less than fair market value under the SSI
program.
Sec. 208. Administrative procedure for imposing penalties for false or mis-
leading statements.
Sec. 209. Exclusion of representatives and health care providers convicted of
violations from participation in social security programs.
Sec. 210. State data exchanges.
Sec. 211. Study on possible measures to improve fraud prevention and adminis-
trative processing.
Sec. 212. Annual report on amounts necessary to combat fraud.
Sec. 213. Computer matches with medicare and medicaid institutionalization
data.
Sec. 214. Access to information held by financial institutions.
Subtitle B—Benefits for Filipino Veterans of World War II
Sec. 251. Provision of reduced SSI benefit to certain individuals who provided
service to the Armed Forces of the United States in the Phil-
ippines during World War II after they move back to the Phil-
ippines.
TITLE III—CHILD SUPPORT
Sec. 301. Elimination of enhanced matching for laboratory costs for paternity
establishment.
Sec. 302. Elimination of hold harmless provision for State share of distribution
of collected child support.
TITLE IV—TECHNICAL CORRECTIONS
Sec. 401. Technical corrections relating to amendments made by the Personal
Responsibility and Work Opportunity Reconciliation Act of
1996.
TITLE 
I—IMPROVED 
INDE-
PENDENT LIVING PROGRAM
Subtitle A—Improved Independent
Living Program
SEC. 101. IMPROVED INDEPENDENT LIVING PROGRAM.
(a) FINDINGS.—The Congress finds the following:
(1) States are required to make reasonable ef-
forts to find adoptive families for all children, in-
cluding older children, for whom reunification with
their biological 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 en-
rolled in an Independent Living program designed
and conducted by State and local government to help
prepare them for employment, postsecondary edu-
cation, and successful management of adult respon-
sibilities.
(2) About 20,000 adolescents leave the Nation’s
foster care system each year because they have
reached 18 years of age and are expected to support
themselves.
(3) Congress has received extensive information
that adolescents leaving foster care have significant
difficulty making a successful transition to adult-
hood; this information shows that children aging out
of foster care show high rates of homelessness, non-
marital childbearing, poverty, and delinquent or
criminal behavior; they are also frequently the target
of crime and physical assaults.
(4) The Nation’s State and local governments,
with financial support from the Federal Government,
should offer an extensive program of education,
training, 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 es-
tablish independence or reach 21 years of age.
(b) IMPROVED INDEPENDENT LIVING PROGRAM.—
Section 477 of the Social Security Act (42 U.S.C. 677)
is amended to read as follows:
‘‘SEC. 477. INDEPENDENT LIVING PROGRAM.
‘‘(a) PURPOSE.—The purpose of this section is to
provide States with flexible funding that will enable pro-
grams to be designed and conducted—
‘‘(1) to identify children who are likely to re-
main in foster care until 18 years of age and to de-
sign programs that help these children make the
transition to self-sufficiency by providing services
such as assistance in obtaining a high school di-
ploma, career exploration, vocational training, job
placement and retention, training in daily living
skills, training in budgeting and financial manage-
ment skills, and substance abuse prevention;
‘‘(2) to help children who are likely to remain
in foster care until 18 years of age receive the edu-
cation, training, and services necessary to obtain em-
ployment;
‘‘(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 institu-
tions;
‘‘(4) to provide personal and emotional support
to children aging out of foster care, through mentors
and the promotion of interactions with dedicated
adults; and
‘‘(5) to provide financial, housing, counseling,
employment, education, and other appropriate sup-
port and services to former foster care recipients be-
tween 18 and 21 years of age to complement their
own efforts to achieve self-sufficiency.
‘‘(b) APPLICATIONS.—
‘‘(1) IN
GENERAL.—A State may apply for
funds from its allotment under subsection (c) for a
period of 5 consecutive fiscal years by submitting to
the Secretary, in writing, a plan that meets the re-
quirements of paragraph (2) and the certifications
required by paragraph (3) with respect to the plan.
‘‘(2) STATE PLAN.—A plan meets the require-
ments of this paragraph if the plan specifies which
State agency or agencies will administer, supervise,
or oversee the programs carried out under the plan,
and describes how the State intends to do the fol-
lowing:
‘‘(A) Design and deliver programs to
achieve the purposes of this section.
‘‘(B) Ensure that all political subdivisions
in the State are served by the program, though
not necessarily in a uniform manner.
‘‘(C) Ensure that the programs serve chil-
dren of various ages and at various stages of
achieving independence.
‘‘(D) Involve the public and private sectors
in helping adolescents in foster care achieve
independence.
‘‘(E) Use objective criteria for determining
eligibility for benefits and services under the
programs, and for ensuring fair and equitable
treatment of benefit recipients.
‘‘(F) Cooperate in national evaluations of
the effects of the programs in achieving the
purposes 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
assistance and services to children who have left
foster care but have not attained 21 years of
age.
‘‘(B) A certification by the chief executive
officer of the State that not more than 30 per-
cent of the amounts paid to the State from its
allotment under subsection (c) for a fiscal year
will be expended for room or board for children
who have left foster care and have attained 18
years of age but not 21 years of age.
‘‘(C) A certification by the chief executive
officer of the State that none of the amounts
paid to the State from its allotment under sub-
section (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 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.
‘‘(E) 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 transitional living youth projects
funded under part B of title III of the Juvenile
Justice and Delinquency Prevention Act of
1974.
‘‘(F) A certification by the chief executive
officer of the State that each Indian tribe in the
State has been informed about the programs to
be carried out under the plan; that each such
tribe has been given an opportunity to comment
on the plan before submission to the Secretary;
and that benefits and services under the pro-
grams will be made available to Indian children
in the State on the same basis as to other chil-
dren in the State.
‘‘(G) A certification by the chief executive
officer of the State that the State has estab-
lished and will enforce standards and proce-
dures to prevent fraud and abuse in the pro-
grams 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;
‘‘(B) the Secretary finds that the applica-
tion contains the material required by para-
graph (1); and
‘‘(C) all children in the State who have left
foster care and have attained 18 years of age
but not 21 years of age are eligible for medical
assistance under the State plan approved under
title XIX.
‘‘(5) AUTHORITY
TO
IMPLEMENT
CERTAIN
AMENDMENTS; NOTIFICATION.—A State with an ap-
plication approved under paragraph (4) may imple-
ment any amendment to the plan contained in the
application if the application, incorporating the
amendment, would be approvable under paragraph
(4). Within 30 days after a State implements any
such amendment, the State shall notify the Sec-
retary of the amendment.
‘‘(6) AVAILABILITY.—The State shall make
available to the public any application submitted by
the State pursuant to paragraph (1), and a brief
summary of the plan contained in the application.
‘‘(c) ALLOTMENTS TO STATES.—
‘‘(1) IN GENERAL.—From the amount specified
in subsection (h) that remains after applying sub-
section (g)(2) for a fiscal year, the Secretary shall
allot to each State with an application approved
under subsection (b) for the fiscal year the amount
which bears the same ratio to such remaining
amount as the number of children in foster care
under a program of the State in the most recent fis-
cal year for which such information is available
bears to the total number of children in foster care
in all States for such most recent fiscal year.
‘‘(2) HOLD HARMLESS PROVISION.—The Sec-
retary shall ratably reduce the allotments made to
States pursuant to paragraph (1) for a fiscal year
to the extent necessary to ensure that the amount
allotted to each State under paragraph (1) and this
paragraph for the fiscal year is not less than the
amount payable to the State under this section (as
in effect before the enactment of the Foster Care
Independence Act of 1999) for fiscal year 1998.
‘‘(3) REALLOTMENT OF UNUSED FUNDS.—The
Secretary shall use the formula provided in para-
graph (1) of this subsection to reallot among the
States with applications approved under subsection
(b) for a fiscal year any amount allotted to a State
under this subsection for the preceding year that is
not payable to the State for the preceding year.
‘‘(d) USE OF FUNDS.—
‘‘(1) IN
GENERAL.—A State to which an
amount is paid from its allotment under subsection
(c) may use the amount in any manner that is rea-
sonably calculated 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.
‘‘(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
receiving 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 application approved under subsection (b), the
Secretary shall assess a penalty against the State in
an amount equal to not less than 1 percent and not
more than 5 percent of the amount of the allotment.
‘‘(2) FAILURE TO COMPLY WITH DATA REPORT-
ING REQUIREMENT.—The Secretary shall assess a
penalty against a State that fails during a fiscal
year to comply with an information collection plan
implemented 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 MEAS-
UREMENT.—
‘‘(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 research-
ers, shall—
‘‘(A) develop outcome measures (including
measures of educational attainment, employ-
ment, avoidance of dependency, homelessness,
nonmarital childbirth, and high-risk behaviors)
that can be used to assess the performance of
States in operating independent living pro-
grams;
‘‘(B) identify data elements needed to
track—
‘‘(i) the number and characteristics of
children receiving services under this sec-
tion;
‘‘(ii) the type and quantity of services
being provided; and
‘‘(iii) State performance on the out-
come measures; and
‘‘(C) develop and implement a plan to col-
lect the needed information beginning with the
2nd fiscal year beginning after the date of the
enactment of this section.
‘‘(2) REPORT TO THE CONGRESS.—Within 12
months after the date of the enactment of this sec-
tion, 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 re-
port detailing the plans and timetable for collecting
from the States the information described in para-
graph (1).
‘‘(g) EVALUATIONS.—
‘‘(1) IN GENERAL.—The Secretary shall con-
duct evaluations of such State programs funded
under this section as the Secretary deems to be in-
novative or of potential national significance. The
evaluation of any such program shall include infor-
mation on the effects of the program on education,
employment, and personal development. To the max-
imum extent practicable, the evaluations shall be
based on rigorous scientific standards including ran-
dom assignment to treatment and control groups.
The Secretary is encouraged to work directly with
State and local governments to design methods for
conducting the evaluations, directly or by grant, con-
tract, or cooperative agreement.
‘‘(2) FUNDING
OF
EVALUATIONS.—The Sec-
retary shall reserve 1.5 percent of the amount speci-
fied in subsection (h) for a fiscal year to carry out,
during the fiscal year, evaluation, technical assist-
ance, performance measurement, and data collection
activities related to this section, directly or through
grants, contracts, or cooperative agreements with
appropriate entities.
‘‘(h) LIMITATIONS ON AUTHORIZATION OF APPRO-
PRIATIONS.—To carry out this section, there are author-
ized 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 fol-
lows:
‘‘(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
accordance 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 quarter occurs, reduced by the total of the
amounts payable to the State under this para-
graph for all prior quarters in the fiscal year.’’.
(d) REGULATIONS.—Not later than 12 months after
the date of the enactment of this Act, the Secretary of
Health and Human Services shall issue such regulations
as may be necessary to carry out the amendments made
by this section.
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 ef-
fect on July 16, 1996), a child whose resources (deter-
mined pursuant 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 com-
bined value of not more than $1,000 (or such lower
amount as the State may determine for purposes of such
section 402(a)(7)(B)).’’.
Subtitle C—Medicaid Amendments
SEC. 121. STATE OPTION OF MEDICAID COVERAGE FOR
ADOLESCENTS LEAVING FOSTER CARE.
(a) IN GENERAL.—Title XIX of the Social Security
Act is amended—
(1) in section 1902(a)(10)(A)(ii) (42 U.S.C.
1396a(a)(10)(A)(ii))—
(A) by striking ‘‘or’’ at the end of sub-
clause (XIII);
(B) by adding ‘‘or’’ at the end of subclause
(XIV); and
(C) by adding at the end the following new
subclause:
‘‘(XV) who are independent fos-
ter care adolescents (as defined in
(section 1905(v)(1)), or who are with-
in any reasonable categories of such
adolescents 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 es-
tablish consistent with paragraph (2).
‘‘(2) The levels established by a State under para-
graph (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 maintenance payments or inde-
pendent living services were furnished under a program
funded under part E of title IV before the date the individ-
uals attained 18 years of age.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) apply to medical assistance for items and
services furnished on or after October 1, 1999.
TITLE II—SSI FRAUD
PREVENTION
Subtitle A—Fraud Prevention and
Related Provisions
SEC. 201. LIABILITY OF REPRESENTATIVE PAYEES FOR
OVERPAYMENTS TO DECEASED RECIPIENTS.
(a) AMENDMENT TO TITLE II.—Section 204(a)(2) of
the Social Security Act (42 U.S.C. 404(a)(2)) is amended
by adding at the end the following new sentence: ‘‘If any
payment of more than the correct amount is made to a
representative payee on behalf of an individual after the
individual’s death, the representative payee shall be liable
for the repayment of the overpayment, and the Commis-
sioner of Social Security shall establish an overpayment
control record under the social security account number
of the representative payee.’’.
(b) 
AMENDMENT
TO
TITLE
XVI.—Section
1631(b)(2) of such Act (42 U.S.C. 1383(b)(2)) is amend-
ed 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 repayment of the overpayment, and the Com-
missioner of Social Security shall establish an overpay-
ment control record under the social security account
number of the representative 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
Social Security Act (42 U.S.C. 1383(b)(1)(B)(ii)) is
amended—
(1) by inserting ‘‘monthly’’ before ‘‘benefit pay-
ments’’; and
(2) by inserting ‘‘and in the case of an indi-
vidual or eligible spouse to whom a lump sum is pay-
able under this title (including under section
1616(a) of this Act or under an agreement entered
into under section 212(a) of Public Law 93–66)
shall, as at least one means of recovering such over-
payment, 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 enactment of this Act and shall apply to amounts in-
correctly paid which remain outstanding on or after such
date.
SEC. 203. ADDITIONAL DEBT COLLECTION PRACTICES.
(a) IN GENERAL.—Section 1631(b) of the Social Se-
curity Act (42 U.S.C. 1383(b)) is amended—
(1) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(2) by inserting after paragraph (3) the fol-
lowing:
‘‘(4)(A) With respect to any delinquent amount, the
Commissioner of Social Security may use the collection
practices described in sections 3711(f), 3716, 3717, and
3718 of title 31, United States Code, and in section 5514
of title 5, United States Code, all as in effect immediately
after the enactment of the Debt Collection Improvement
Act of 1996.
‘‘(B) For purposes of subparagraph (A), the
term ‘delinquent amount’ means an amount—
‘‘(i) in excess of the correct amount of pay-
ment under this title;
‘‘(ii) paid to a person after such person
has attained 18 years of age; and
‘‘(iii) determined by the Commissioner of
Social Security, under regulations, to be other-
wise unrecoverable 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 ‘‘section 204(f)’’ and inserting ‘‘sections 204(f)
and 1631(b)(4)’’.
(c) TECHNICAL AMENDMENTS.—Section 204(f) of
the Social Security Act (42 U.S.C. 404(f)) is amended—
(1) by striking ‘‘3711(e)’’ and inserting
‘‘3711(f)’’; and
(2) by inserting ‘‘all’’ before ‘‘as in effect’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to debt outstanding on or after
the date of the enactment of this Act.
SEC. 204. REQUIREMENT TO PROVIDE STATE PRISONER IN-
FORMATION TO FEDERAL AND FEDERALLY
ASSISTED BENEFIT PROGRAMS.
Section 1611(e)(1)(I)(ii)(II) of the Social Security
Act (42 U.S.C. 1382(e)(1)(I)(ii)(II)) is amended by strik-
ing ‘‘is authorized to’’ and inserting ‘‘shall’’.
SEC. 205. RULES RELATING TO COLLECTION OF OVERPAY-
MENTS FROM INDIVIDUALS CONVICTED OF
CRIMES.
(a) WAIVERS INAPPLICABLE TO OVERPAYMENTS BY
REASON
OF PAYMENT
IN MONTHS
IN WHICH BENE-
FICIARY IS A PRISONER OR A FUGITIVE.—
(1) AMENDMENT TO TITLE II.—Section 204(b)
of the Social Security Act (42 U.S.C. 404(b)) is
amended—
(A) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(B) by adding at the end the following:
‘‘(2) Paragraph (1) shall not apply with respect to
any payment to any person made during a month in which
such benefit was not payable under section 202(x).’’.
(2) AMENDMENT
TO
TITLE
XVI.—Section
1631(b)(1)(B)(i) 
of 
such 
Act 
(42 
U.S.C.
1383(b)(1)(B)(i)) is amended by inserting ‘‘unless
(I) section 1611(e)(1) prohibits payment to the per-
son of a benefit under this title for the month by
reason of confinement of a type described in clause
(i) or (ii) of section 202(x)(1)(A), or (II) section
1611(e)(5) prohibits payment to the person of a
benefit under this title for the month,’’ after ‘‘ad-
ministration of this title’’.
(b) 10-YEAR PERIOD OF INELIGIBILITY FOR PER-
SONS FAILING TO NOTIFY COMMISSIONER OF OVERPAY-
MENTS IN MONTHS IN WHICH BENEFICIARY IS A PRIS-
ONER OR A FUGITIVE OR FAILING TO COMPLY WITH RE-
PAYMENT SCHEDULE FOR SUCH OVERPAYMENTS.—
(1) AMENDMENT TO TITLE II.—Section 202(x)
of such Act (42 U.S.C. 402(x)) is amended by add-
ing at the end the following:
‘‘(4)(A) No person shall be considered entitled to
monthly insurance benefits under this section based on the
person’s disability or to disability insurance benefits under
section 223 otherwise payable during the 10-year period
that begins on the date the person—
‘‘(i) knowingly fails to timely notify the Com-
missioner of Social Security, in connection with any
application for benefits under this title, of any prior
receipt by such person of any benefit under this title
or title XVI in any month in which such benefit was
not payable under the preceding provisions of this
subsection, or
‘‘(ii) knowingly fails to comply with any sched-
ule imposed by the Commissioner which is for repay-
ment of overpayments comprised of payments de-
scribed in subparagraph (A) and which is in compli-
ance with section 204.
‘‘(B) The Commissioner of Social Security shall, in
addition to any other relevant factors, take into account
any mental or linguistic limitations of a person (including
any lack of facility with the English language) in deter-
mining whether the person has knowingly failed to comply
with a requirement of clause (i) or (ii) of subparagraph
(A).’’.
(2) AMENDMENT
TO
TITLE
XVI.—Section
1611(e)(1) of such Act (42 U.S.C. 1382(e)(1)) is
amended by adding at the end the following:
‘‘(J)(i) A person shall not be considered an eligible
individual or eligible spouse for purposes of benefits under
this title by reason of disability, during the 10-year period
that begins on the date the person—
‘‘(I) knowingly fails to timely notify the Com-
missioner of Social Security, in an application for
benefits under this title, of any prior receipt by the
person of a benefit under this title or title II in a
month in which payment to the person of a benefit
under this title was prohibited by—
‘‘(aa) the preceding provisions of this para-
graph by reason of confinement of a type de-
scribed in clause (i) or (ii) of section
202(x)(1)(A); or
‘‘(bb) section 1611(e)(4); or
‘‘(II) knowingly fails to comply with any sched-
ule imposed by the Commissioner which is for repay-
ment of overpayments comprised of payments de-
scribed in clause (i) of this subparagraph and which
is in compliance with section 1631(b).
‘‘(ii) The Commissioner of Social Security shall, in
addition to any other relevant factors, take into account
any mental or linguistic limitations of a person (including
any lack of facility with the English language) in deter-
mining whether the person has knowingly failed to comply
with a requirement of subclause (I) or (II) of clause (i).’’.
(c) CONTINUED COLLECTION EFFORTS AGAINST
PRISONERS.—
(1) AMENDMENT TO TITLE II.—Section 204(b)
of such Act (42 U.S.C. 404(b)), as amended by sub-
section (a)(1) of this section, is amended further by
adding at the end the following new paragraph:
‘‘(3) The Commissioner shall not refrain from recov-
ering overpayments from resources currently available to
any overpaid person or to such person’s estate solely be-
cause such individual is confined as described in clause
(i) or (ii) of section 202(x)(1)(A).’’.
(2) AMENDMENT
TO
TITLE
XVI.—Section
1631(b)(1)(A) 
of 
such 
Act 
(42 
U.S.C.
1383(b)(1)(A)) is amended by adding after and
below clause (ii) the following flush left sentence:
‘‘The Commissioner shall not refrain from recovering over-
payments from resources currently available to any indi-
vidual solely because the individual is confined as de-
scribed in clause (i) or (ii) of section 202(x)(1)(A).’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to overpayments made in, and to
benefits payable for, months beginning 24 months or more
after the date of the enactment of this Act.
SEC. 206. TREATMENT OF ASSETS HELD IN TRUST UNDER
THE SSI PROGRAM.
(a) TREATMENT AS RESOURCE.—Section 1613 of the
Social Security Act (42 U.S.C. 1382b) is amended by add-
ing at the end the following:
‘‘Trusts
‘‘(e)(1) In determining the resources of an individual,
paragraph (3) shall apply to a trust (other than a trust
described in paragraph (5)) established by the individual.
‘‘(2)(A) For purposes of this subsection, an individual
shall be considered to have established a trust if any assets
of the individual (or of the individual’s spouse) are trans-
ferred to the trust other than by will.
‘‘(B) In the case of an irrevocable trust to which are
transferred the assets of an individual (or of the individ-
ual’s spouse) and the assets of any other person, this sub-
section shall apply to the portion of the trust attributable
to the assets of the individual (or of the individual’s
spouse).
‘‘(C) This subsection shall apply to a trust without
regard to—
‘‘(i) the purposes for which the trust is estab-
lished;
‘‘(ii) whether the trustees have or exercise any
discretion under the trust;
‘‘(iii) any restrictions on when or whether dis-
tributions may be made from the trust; or
‘‘(iv) any restrictions on the use of distributions
from the trust.
‘‘(3)(A) In the case of a revocable trust established
by an individual, the corpus of the trust shall be consid-
ered a resource available to the individual.
‘‘(B) In the case of an irrevocable trust established
by an individual, if there are any circumstances under
which payment from the trust could be made to or for
the benefit of the individual or the individual’s spouse, the
portion of the corpus from which payment to or for the
benefit of the individual or the individual’s spouse could
be made shall be considered a resource available to the
individual.
‘‘(4) The Commissioner of Social Security may waive
the application of this subsection with respect to an indi-
vidual if the Commissioner determines that such applica-
tion would work an undue hardship (as determined on the
basis of criteria established by the Commissioner) on the
individual.
‘‘(5) This subsection shall not apply to a trust de-
scribed in subparagraph (A) or (C) of section 1917(d)(4).
‘‘(6) For purposes of this subsection—
‘‘(A) the term ‘trust’ includes any legal instru-
ment or device that is similar to a trust;
‘‘(B) the term ‘corpus’ means, with respect to
a trust, all property and other interests held by the
trust, including accumulated earnings and any other
addition to the trust after its establishment (except
that such term does not include any such earnings
or addition in the month in which the earnings or
addition is credited or otherwise transferred to the
trust); and
‘‘(C) the term ‘asset’ includes any income or re-
source of the individual or of the individual’s spouse,
including—
‘‘(i) any income excluded by section
1612(b);
‘‘(ii) any resource otherwise excluded by
this section; and
‘‘(iii) any other payment or property to
which the individual or the individual’s spouse
is entitled but does not receive or have access
to because of action by—
‘‘(I) the individual or spouse;
‘‘(II) a person or entity (including a
court) with legal authority to act in place
of, or on behalf of, the individual or
spouse; or
‘‘(III) a person or entity (including a
court) acting at the direction of, or on the
request of, the individual or spouse.’’.
(b) TREATMENT AS INCOME.—Section 1612(a)(2) of
such Act (42 U.S.C. 1382a(a)(2)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (E);
(2) by striking the period at the end of sub-
paragraph (F) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(G) any earnings of, and additions to, the cor-
pus of a trust established by an individual (within
the meaning of section 1613(e)), of which the indi-
vidual is a beneficiary, to which section 1613(e) ap-
plies, and, in the case of an irrevocable trust, with
respect to which circumstances exist under which a
payment from the earnings or additions could be
made to or for the benefit of the individual.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on January 1, 2000, and shall
apply to trusts established on or after such date.
SEC. 207. DISPOSAL OF RESOURCES FOR LESS THAN FAIR
MARKET VALUE UNDER THE SSI PROGRAM.
(a) IN GENERAL.—Section 1613(c) of the Social Se-
curity Act (42 U.S.C. 1382b(c)) is amended—
(1) in the caption, by striking ‘‘Notification of
Medicaid Policy Restricting Eligibility of Institu-
tionalized Individuals for Benefits Based on’’;
(2) in paragraph (1)—
(A) in subparagraph (A)—
(i) by inserting ‘‘paragraph (1) and’’
after ‘‘provisions of’’;
(ii) by striking ‘‘title XIX’’ the first
place it appears and inserting ‘‘this title
and title XIX, respectively,’’;
(iii) by striking ‘‘subparagraph (B)’’
and inserting ‘‘clause (ii)’’;
(iv) by striking ‘‘paragraph (2)’’ and
inserting ‘‘subparagraph (B)’’;
(B) in subparagraph (B)—
(i) by striking ‘‘by the State agency’’;
and
(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
inserting ‘‘subparagraph (A)(ii)’’;
(4) by striking ‘‘(c)(1)’’ and inserting ‘‘(2)(A)’’;
and
(5) by inserting before paragraph (2) (as so re-
designated by paragraph (4) of this subsection) the
following:
‘‘(c)(1)(A)(i) If an individual or the spouse of an indi-
vidual disposes of resources for less than fair market value
on or after the look-back date described in clause (ii)(I),
the individual is ineligible for benefits under this title for
months during the period beginning on the date described
in clause (iii) and equal to the number of months cal-
culated as provided in clause (iv).
‘‘(ii)(I) The look-back date described in this sub-
clause is a date that is 36 months before the date de-
scribed in subclause (II).
‘‘(II) The date described in this subclause is the date
on which the individual applies for benefits under this title
or, if later, the date on which the individual (or the spouse
of the individual) disposes of resources for less than fair
market value.
‘‘(iii) The date described in this clause is the first
day of the first month in or after which resources were
disposed of for less than fair market value and which does
not occur in any other period of ineligibility under this
paragraph.
‘‘(iv) The number of months calculated under this
clause shall be equal to—
‘‘(I) the total, cumulative uncompensated value
of all resources so disposed of by the individual (or
the spouse of the individual) on or after the look-
back date described in clause (ii)(I); divided by
‘‘(II) the amount of the maximum monthly ben-
efit payable under section 1611(b), plus the amount
(if any) of the maximum State supplementary pay-
ment corresponding to the State’s payment level ap-
plicable to the individual’s living arrangement and
eligibility category that would otherwise be payable
to the individual by the Commissioner pursuant to
an agreement under section 1616(a) of this Act or
section 212(b) of Public Law 93–66, for the month
in which occurs the date described in clause (ii)(II),
rounded, in the case of any fraction, to the nearest whole
number, but shall not in any case exceed 36 months.
‘‘(B)(i) Notwithstanding subparagraph (A), this sub-
section shall not apply to a transfer of a resource to a
trust if the portion of the trust attributable to the resource
is considered a resource available to the individual pursu-
ant to subsection (e)(3) (or would be so considered but
for the application of subsection (e)(4)).
‘‘(ii) In the case of a trust established by an indi-
vidual or an individual’s spouse (within the meaning of
subsection (e)), if from such portion of the trust, if any,
that is considered a resource available to the individual
pursuant to subsection (e)(3) (or would be so considered
but for the application of subsection (e)(4)) or the residue
of the portion on the termination of the trust—
‘‘(I) there is made a payment other than to or
for the benefit of the individual; or
‘‘(II) no payment could under any circumstance
be made to the individual,
then, for purposes of this subsection, the payment de-
scribed in clause (I) or the foreclosure of payment de-
scribed in clause (II) shall be considered a transfer of re-
sources by the individual or the individual’s spouse as of
the date of the payment or foreclosure, as the case may
be.
‘‘(C) An individual shall not be ineligible for benefits
under this title by reason of the application of this para-
graph to a disposal of resources by the individual or the
spouse of the individual, to the extent that—
‘‘(i) the resources are a home and title to the
home was transferred to—
‘‘(I) the spouse of the transferor;
‘‘(II) a child of the transferor who has not
attained 21 years of age, or is blind or disabled;
‘‘(III) a sibling of the transferor who has
an equity interest in such home and who was
residing in the transferor’s home for a period of
at least 1 year immediately before the date the
transferor becomes an institutionalized indi-
vidual; or
‘‘(IV) a son or daughter of the transferor
(other than a child described in subclause (II))
who was residing in the transferor’s home for
a period of at least 2 years immediately before
the date the transferor becomes an institu-
tionalized individual, and who provided care to
the transferor which permitted the transferor to
reside at home rather than in such an institu-
tion or facility;
‘‘(ii) the resources—
‘‘(I) were transferred to the transferor’s
spouse or to another for the sole benefit of the
transferor’s spouse;
‘‘(II) were transferred from the trans-
feror’s spouse to another for the sole benefit of
the transferor’s spouse;
‘‘(III) were transferred to, or to a trust
(including 
a 
trust 
described 
in 
section
1917(d)(4)) established solely for the benefit of,
the transferor’s child who is blind or disabled;
or
‘‘(IV) were transferred to a trust (includ-
ing a trust described in section 1917(d)(4)) es-
tablished solely for the benefit of an individual
who has not attained 65 years of age and who
is disabled;
‘‘(iii) a satisfactory showing is made to the
Commissioner of Social Security (in accordance with
regulations promulgated by the Commissioner)
that—
‘‘(I) the individual who disposed of the re-
sources intended to dispose of the resources ei-
ther at fair market value, or for other valuable
consideration;
‘‘(II) the resources were transferred exclu-
sively for a purpose other than to qualify for
benefits under this title; or
‘‘(III) all resources transferred for less
than fair market value have been returned to
the transferor; or
‘‘(iv) the Commissioner determines, under pro-
cedures established by the Commissioner, that the
denial of eligibility would work an undue hardship as
determined on the basis of criteria established by the
Commissioner.
‘‘(D) For purposes of this subsection, in the case of
a resource held by an individual in common with another
person or persons in a joint tenancy, tenancy in common,
or similar arrangement, the resource (or the affected por-
tion of such resource) shall be considered to be disposed
of by the individual when any action is taken, either by
the individual or by any other person, that reduces or
eliminates the individual’s ownership or control of such re-
source.
‘‘(E) In the case of a transfer by the spouse of an
individual that results in a period of ineligibility for the
individual under this subsection, the Commissioner shall
apportion the period (or any portion of the period) among
the individual and the individual’s spouse if the spouse be-
comes eligible for benefits under this title.
‘‘(F) For purposes of this paragraph—
‘‘(i) the term ‘benefits under this title’ includes
payments of the type described in section 1616(a) of
this Act and of the type described in section 212(b)
of Public Law 93–66;
‘‘(ii) the term ‘institutionalized individual’ has
the meaning given such term in section 1917(e)(3);
and
‘‘(iii) the term ‘trust’ has the meaning given
such term in subsection (e)(6)(A) of this section.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to disposals
made on or after the date of enactment of this Act.
SEC. 208. ADMINISTRATIVE PROCEDURE FOR IMPOSING
PENALTIES 
FOR 
FALSE 
OR 
MISLEADING
STATEMENTS.
(a) IN GENERAL.—Part A of title XI of the Social
Security Act (42 U.S.C. 1301 et seq.) is amended by in-
serting after section 1129 the following:
‘‘SEC. 1129A. ADMINISTRATIVE PROCEDURE FOR IMPOSING
PENALTIES 
FOR 
FALSE 
OR 
MISLEADING
STATEMENTS.
‘‘(a) IN GENERAL.—Any person who makes, or
causes to be made, a statement or representation of a ma-
terial fact for use in determining any initial or continuing
right to or the amount of—
‘‘(1) monthly insurance benefits under title II;
or
‘‘(2) benefits or payments under title XVI,
that the person knows or should know is false or mis-
leading or knows or should know omits a material fact
or makes such a statement with knowing disregard for the
truth shall be subject to, in addition to any other penalties
that may be prescribed by law, a penalty described in sub-
section (b) to be imposed by the Commissioner of Social
Security.
‘‘(b) PENALTY.—The penalty described in this sub-
section is—
‘‘(1) nonpayment of benefits under title II that
would otherwise be payable to the person; and
‘‘(2) ineligibility for cash benefits under title
XVI,
for each month that begins during the applicable period
described in subsection (c).
‘‘(c) DURATION OF PENALTY.—The duration of the
applicable period, with respect to a determination by the
Commissioner under subsection (a) that a person has en-
gaged in conduct described in subsection (a), shall be—
‘‘(1) 6 consecutive months, in the case of a first
such determination with respect to the person;
‘‘(2) 12 consecutive months, in the case of a
second such determination with respect to the per-
son; and
‘‘(3) 24 consecutive months, in the case of a
third or subsequent such determination with respect
to the person.
‘‘(d) EFFECT ON OTHER ASSISTANCE.—A person
subject to a period of nonpayment of benefits under title
II or ineligibility for title XVI benefits by reason of this
section nevertheless shall be considered to be eligible for
and receiving such benefits, to the extent that the person
would be receiving or eligible for such benefits but for the
imposition of the penalty, for purposes of—
‘‘(1) determination of the eligibility of the per-
son for benefits under titles XVIII and XIX; and
‘‘(2) determination of the eligibility or amount
of benefits payable under title II or XVI to another
person.
‘‘(e) DEFINITION.—In this section, the term ‘benefits
under title XVI’ includes State supplementary payments
made by the Commissioner pursuant to an agreement
under section 1616(a) of this Act or section 212(b) of
Public Law 93–66.
‘‘(f) CONSULTATIONS.—The Commissioner of Social
Security shall consult with the Inspector General of the
Social Security Administration regarding initiating actions
under this section.’’.
(b) CONFORMING AMENDMENT PRECLUDING DE-
LAYED RETIREMENT CREDIT FOR ANY MONTH TO WHICH
A NONPAYMENT OF BENEFITS PENALTY APPLIES.—Sec-
tion 202(w)(2)(B) of such Act (42 U.S.C. 402(w)(2)(B))
is amended—
(1) by striking ‘‘and’’ at the end of clause (i);
(2) by striking the period at the end of clause
(ii) and inserting ‘‘, and’’; and
(3) by adding at the end the following:
‘‘(iii) such individual was not subject to a
penalty imposed under section 1129A.’’.
(c) ELIMINATION OF REDUNDANT PROVISION.—Sec-
tion 1611(e) of such Act (42 U.S.C. 1382(e)) is
amended—
(1) by striking paragraph (4);
(2) in paragraph (6)(A)(i), by striking ‘‘(5)’’
and inserting ‘‘(4)’’; and
(3) by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively.
(d) REGULATIONS.—Within 6 months after the date
of the enactment of this Act, the Commissioner of Social
Security shall develop regulations that prescribe the ad-
ministrative process for making determinations under sec-
tion 1129A of the Social Security Act (including when the
applicable period in subsection (c) of such section shall
commence), and shall provide guidance on the exercise of
discretion as to whether the penalty should be imposed
in particular cases.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to statements and representations
made on or after the date of the enactment of this Act.
SEC. 209. EXCLUSION OF REPRESENTATIVES AND HEALTH
CARE PROVIDERS CONVICTED OF VIOLA-
TIONS FROM PARTICIPATION IN SOCIAL SE-
CURITY PROGRAMS.
(a) IN GENERAL.—Part A of title XI of the Social
Security Act (42 U.S.C. 1301–1320b–17) is amended by
adding at the end the following:
‘‘EXCLUSION OF REPRESENTATIVES AND HEALTH CARE
PROVIDERS CONVICTED OF VIOLATIONS FROM PAR-
TICIPATION IN SOCIAL SECURITY PROGRAMS
‘‘SEC. 1148. (a) IN GENERAL.—The Commissioner
of Social Security shall exclude from participation in the
social security programs any representative or health care
provider—
‘‘(1) who is convicted of a violation of section
208 or 1632 of this Act,
‘‘(2) who is convicted of any violation under
title 18, United States Code, relating to an initial
application for or continuing entitlement to, or
amount of, benefits under title II of this Act, or an
initial application for or continuing eligibility for, or
amount of, benefits under title XVI of this Act, or
‘‘(3) who the Commissioner determines has
committed 
an 
offense 
described 
in 
section
1129(a)(1) of this Act.
‘‘(b) NOTICE, EFFECTIVE DATE, AND PERIOD OF
EXCLUSION.—(1) An exclusion under this section shall be
effective at such time, for such period, and upon such rea-
sonable notice to the public and to the individual excluded
as may be specified in regulations consistent with para-
graph (2).
‘‘(2) Such an exclusion shall be effective with respect
to services furnished to any individual on or after the ef-
fective date of the exclusion. Nothing in this section may
be construed to preclude, in determining disability under
title II or title XVI, consideration of any medical evidence
derived from services provided by a health care provider
before the effective date of the exclusion of the health care
provider under this section.
‘‘(3)(A) The Commissioner shall specify, in the notice
of exclusion under paragraph (1), the period of the exclu-
sion.
‘‘(B) Subject to subparagraph (C), in the case of an
exclusion under subsection (a), the minimum period of ex-
clusion shall be five years, except that the Commissioner
may waive the exclusion in the case of an individual who
is the sole source of essential services in a community. The
Commissioner’s decision whether to waive the exclusion
shall not be reviewable.
‘‘(C) In the case of an exclusion of an individual
under subsection (a) based on a conviction or a determina-
tion described in subsection (a)(3) occurring on or after
the date of the enactment of this section, if the individual
has (before, on, or after such date of enactment) been con-
victed, or if such a determination has been made with re-
spect to the individual—
‘‘(i) on one previous occasion of one or more of-
fenses for which an exclusion may be effected under
such subsection, the period of the exclusion shall be
not less than 10 years, or
‘‘(ii) on 2 or more previous occasions of one or
more offenses for which an exclusion may be effected
under such subsection, the period of the exclusion
shall be permanent.
‘‘(c) NOTICE TO STATE AGENCIES.—The Commis-
sioner shall promptly notify each appropriate State agency
employed for the purpose of making disability determina-
tions under section 221 or 1633(a)—
‘‘(1) of the fact and circumstances of each ex-
clusion effected against an individual under this sec-
tion, and
‘‘(2) of the period (described in subsection
(b)(3)) for which the State agency is directed to ex-
clude the individual from participation in the activi-
ties of the State agency in the course of its employ-
ment.
‘‘(d) NOTICE TO STATE LICENSING AGENCIES.—The
Commissioner shall—
‘‘(1) promptly notify the appropriate State or
local agency or authority having responsibility for
the licensing or certification of an individual ex-
cluded from participation under this section of the
fact and circumstances of the exclusion,
‘‘(2) request that appropriate investigations be
made and sanctions invoked in accordance with ap-
plicable State law and policy, and
‘‘(3) request that the State or local agency or
authority keep the Commissioner and the Inspector
General of the Social Security Administration fully
and currently informed with respect to any actions
taken in response to the request.
‘‘(e) NOTICE, HEARING, AND JUDICIAL REVIEW.—
(1) Any individual who is excluded (or directed to be ex-
cluded) from participation under this section is entitled
to reasonable notice and opportunity for a hearing thereon
by the Commissioner to the same extent as is provided
in section 205(b), and to judicial review of the Commis-
sioner’s final decision after such hearing as is provided
in section 205(g).
‘‘(2) The provisions of section 205(h) shall apply with
respect to this section to the same extent as it is applicable
with respect to title II.
‘‘(f) APPLICATION FOR TERMINATION OF EXCLU-
SION.—(1) An individual excluded from participation
under this section may apply to the Commissioner, in the
manner specified by the Commissioner in regulations and
at the end of the minimum period of exclusion provided
under subsection (b)(3) and at such other times as the
Commissioner may provide, for termination of the exclu-
sion effected under this section.
‘‘(2) The Commissioner may terminate the exclusion
if the Commissioner determines, on the basis of the con-
duct of the applicant which occurred after the date of the
notice of exclusion or which was unknown to the Commis-
sioner at the time of the exclusion, that—
‘‘(A) there is no basis under subsection (a) for
a continuation of the exclusion, and
‘‘(B) there are reasonable assurances that the
types of actions which formed the basis for the origi-
nal exclusion have not recurred and will not recur.
‘‘(3) The Commissioner shall promptly notify each
State agency employed for the purpose of making dis-
ability determinations under section 221 or 1633(a) of the
fact and circumstances of each termination of exclusion
made under this subsection.
‘‘(g) AVAILABILITY
OF RECORDS
OF EXCLUDED
REPRESENTATIVES
AND HEALTH CARE PROVIDERS.—
Nothing in this section shall be construed to have the ef-
fect of limiting access by any applicant or beneficiary
under title II or XVI, any State agency acting under sec-
tion 221 or 1633(a), or the Commissioner to records main-
tained by any representative or health care provider in
connection with services provided to the applicant or bene-
ficiary prior to the exclusion of such representative or
health care provider under this section.
‘‘(h) REPORTING REQUIREMENT.—Any representa-
tive or health care provider participating in, or seeking
to participate in, a social security program shall inform
the Commissioner, in such form and manner as the Com-
missioner shall prescribe by regulation, whether such rep-
resentative or health care provider has been convicted of
a violation described in subsection (a).
‘‘(i) DELEGATION
OF AUTHORITY.—The Commis-
sioner may delegate authority granted by this section to
the Inspector General.
‘‘(j) DEFINITIONS.—For purposes of this section:
‘‘(1) EXCLUDE.—The term ‘exclude’ from par-
ticipation means—
‘‘(A) in connection with a representative,
to prohibit from engaging in representation of
an applicant for, or recipient of, benefits, as a
representative payee under section 205(j) or
1631(a)(2)(A)(ii), or otherwise as a representa-
tive, in any hearing or other proceeding relating
to entitlement to benefits, and
‘‘(B) in connection with a health care pro-
vider, to prohibit from providing items or serv-
ices to an applicant for, or recipient of, benefits
for the purpose of assisting such applicant or
recipient in demonstrating disability.
‘‘(2) SOCIAL
SECURITY
PROGRAM.—The term
‘social security programs’ means the program pro-
viding for monthly insurance benefits under title II,
and the program providing for monthly supplemental
security income benefits to individuals under title
XVI (including State supplementary payments made
by the Commissioner pursuant to an agreement
under section 1616(a) of this Act or section 212(b)
of Public Law 93–66).
‘‘(3) CONVICTED.—An individual is considered
to have been ‘convicted’ of a violation—
‘‘(A) when a judgment of conviction has
been entered against the individual by a Fed-
eral, State, or local court, except if the judg-
ment of conviction has been set aside or ex-
punged;
‘‘(B) when there has been a finding of
guilt against the individual by a Federal, State,
or local court;
‘‘(C) when a plea of guilty or nolo
contendere by the individual has been accepted
by a Federal, State, or local court; or
‘‘(D) when the individual has entered into
participation in a first offender, deferred adju-
dication, or other arrangement or program
where judgment of conviction has been with-
held.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply with respect to convictions of viola-
tions described in paragraphs (1) and (2) of section
1148(a) of the Social Security Act and determinations de-
scribed in paragraph (3) of such section occurring on or
after the date of the enactment of this Act.
SEC. 210. STATE DATA EXCHANGES.
Whenever the Commissioner of Social Security re-
quests information from a State for the purpose of
ascertaining an individual’s eligibility for benefits (or the
correct amount of such benefits) under title II or XVI of
the Social Security Act, the standards of the Commis-
sioner promulgated pursuant to section 1106 of such Act
or any other Federal law for the use, safeguarding, and
disclosure of information are deemed to meet any stand-
ards of the State that would otherwise apply to the disclo-
sure of information by the State to the Commissioner.
SEC. 211. STUDY ON POSSIBLE MEASURES TO IMPROVE
FRAUD PREVENTION AND ADMINISTRATIVE
PROCESSING.
(a) STUDY.—As soon as practicable after the date of
the enactment of this Act, the Commissioner of Social Se-
curity, in consultation with the Inspector General of the
Social Security Administration and the Attorney General,
shall conduct a study of possible measures to improve—
(1) prevention of fraud on the part of individ-
uals entitled to disability benefits under section 223
of the Social Security Act or benefits under section
202 of such Act based on the beneficiary’s disability,
individuals eligible for supplemental security income
benefits under title XVI of such Act, and applicants
for any such benefits; and
(2) timely processing of reported income
changes by individuals receiving such benefits.
(b) REPORT.—Not later than 1 year after the date
of the enactment of this Act, the Commissioner shall sub-
mit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate a written report that contains the results of the
Commissioner’s study under subsection (a). The report
shall contain such recommendations for legislative and ad-
ministrative changes as the Commissioner considers ap-
propriate.
SEC. 212. ANNUAL REPORT ON AMOUNTS NECESSARY TO
COMBAT FRAUD.
(a) IN GENERAL.—Section 704(b)(1) of the Social
Security Act (42 U.S.C. 904(b)(1)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(b)(1)’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) The Commissioner shall include in the annual
budget prepared pursuant to subparagraph (A) an
itemization of the amount of funds required by the Social
Security Administration for the fiscal year covered by the
budget to support efforts to combat fraud committed by
applicants and beneficiaries.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to annual budgets pre-
pared for fiscal years after fiscal year 1999.
SEC. 213. COMPUTER MATCHES WITH MEDICARE AND MED-
ICAID INSTITUTIONALIZATION DATA.
(a) IN GENERAL.—Section 1611(e)(1) of the Social
Security Act (42 U.S.C. 1382(e)(1)), as amended by sec-
tion 205(b)(2) of this Act, is further amended by adding
at the end the following:
‘‘(K) For the purpose of carrying out this paragraph,
the Commissioner of Social Security shall conduct periodic
computer matches with data maintained by the Secretary
of Health and Human Services under title XVIII or XIX.
The Secretary shall furnish to the Commissioner, in such
form and manner and under such terms as the Commis-
sioner and the Secretary shall mutually agree, such infor-
mation as the Commissioner may request for this purpose.
Information obtained pursuant to such a match may be
substituted for the physician’s certification otherwise re-
quired under subparagraph (G)(i).’’.
(b) 
CONFORMING
AMENDMENT.—Section
1611(e)(1)(G) of such Act (42 U.S.C. 1382(e)(1)(G)) is
amended by striking ‘‘subparagraph (H)’’ and inserting
‘‘subparagraph (H) or (K)’’.
SEC. 214. ACCESS TO INFORMATION HELD BY FINANCIAL
INSTITUTIONS.
Section 1631(e)(1)(B) of the Social Security Act (42
U.S.C. 1383(e)(1)(B)) is amended—
(1) by striking ‘‘(B) The’’ and inserting ‘‘(B)(i)
The’’; and
(2) by adding at the end the following new
clause:
‘‘(ii)(I) The Commissioner of Social Security may re-
quire each applicant for, or recipient of, benefits under
this title to provide authorization by the applicant or re-
cipient (or by any other person whose income or resources
are material to the determination of the eligibility of the
applicant or recipient for such benefits) for the Commis-
sioner to obtain (subject to the cost reimbursement re-
quirements of section 1115(a) of the Right to Financial
Privacy Act) from any financial institution (within the
meaning of section 1101(1) of such Act) any financial
record (within the meaning of section 1101(2) of such
Act) held by the institution with respect to the applicant
or recipient (or any such other person) whenever the Com-
missioner 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 eligibility 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-
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 Fi-
nancial Privacy Act for purposes of section 1103(a) of
such Act, and need not be furnished to the financial insti-
tution, notwithstanding section 1104(a) of such Act.
‘‘(bb) The certification requirements of section
1103(b) of the Right to Financial Privacy Act shall not
apply to requests by the Commissioner of Social Security
pursuant to an authorization provided under this clause.
‘‘(cc) A request by the Commissioner pursuant to an
authorization provided under this clause is deemed to meet
the requirements of section 1104(a)(3) of the Right to Fi-
nancial Privacy Act and the flush language of section
1102 of such Act.
‘‘(IV) The Commissioner shall inform any person who
provides authorization pursuant to this clause of the dura-
tion and scope of the authorization.
‘‘(V) If an applicant for, or recipient of, benefits
under this title (or any such other person referred to in
subclause (I)) refuses to provide, or revokes, any author-
ization made by the applicant or recipient for the Commis-
sioner of Social Security to obtain from any financial insti-
tution any financial record, the Commissioner may, on
that basis, determine that the applicant or recipient is in-
eligible for benefits under this title.’’.
Subtitle B—Benefits for Filipino
Veterans of World War II
SEC. 251. PROVISION OF REDUCED SSI BENEFIT TO CER-
TAIN INDIVIDUALS WHO PROVIDED SERVICE
TO THE ARMED FORCES OF THE UNITED
STATES IN THE PHILIPPINES DURING WORLD
WAR II AFTER THEY MOVE BACK TO THE
PHILIPPINES.
(a) 
IN
GENERAL.—Notwithstanding 
sections
1611(f)(1) and 1614(a)(1)(B)(i) of the Social Security
Act and sections 401 and 402 of the Personal Responsi-
bility and Work Opportunity Reconciliation Act of 1996,
the eligibility of a qualified individual for benefits under
the supplemental security income program under title XVI
of the Social Security Act shall not terminate by reason
of a change in the place of residence of the individual to
the Philippines.
(b) 
BENEFIT
AMOUNT.—Notwithstanding 
sub-
sections (a) and (b) of section 1611 of the Social Security
Act, the benefit payable under the supplemental security
income program to a qualified individual for any month
throughout which the individual resides in the Philippines
shall be in an amount equal to 75 percent of the Federal
benefit rate under title XVI of such Act for the month,
reduced (after disregard of the amount specified in section
1612(b)(2)(A) of such Act) by the amount of the qualified
individual’s benefit income for the month.
(c) DEFINITIONS.—In this section:
(1) QUALIFIED INDIVIDUAL.—The term ‘‘quali-
fied individual’’ means an individual who—
(A) as of the date of the enactment of this
Act, is eligible for benefits under the supple-
mental security income program under title
XVI of the Social Security Act on the basis of
an application filed before such date;
(B) before August 15, 1945, served in the
organized military forces of the Government of
the Commonwealth of the Philippines while
such forces were in the service of the Armed
Forces of the United States pursuant to the
military order of the President dated July 26,
1941, including among such military forces or-
ganized guerrilla forces under commanders ap-
pointed, designated, or subsequently recognized
by the Commander in Chief, Southwest Pacific
Area, or other competent military authority in
the Army of the United States; and
(C) has not been removed from the United
States pursuant to section 237(a) of the Immi-
gration and Nationality Act.
(2) FEDERAL BENEFIT RATE.—The term ‘‘Fed-
eral benefit rate’’ means, with respect to a month,
the amount of the cash benefit (not including any
State supplementary payment which is paid by the
Commissioner of Social Security pursuant to an
agreement under section 1616(a) of the Social Secu-
rity Act or section 212(b) of Public Law 93–66)
payable for the month to an eligible individual with
no income.
(3) BENEFIT INCOME.—The term ‘‘benefit in-
come’’ means any recurring payment received by a
qualified individual as an annuity, pension, retire-
ment, or disability benefit (including any veterans’
compensation or pension, workmen’s compensation
payment, old-age, survivors, or disability insurance
benefit, railroad retirement annuity or pension, and
unemployment insurance benefit), but only if a simi-
lar payment was received by the individual from the
same (or a related) source during the 12-month pe-
riod preceding the month in which the individual
changes his place of residence from the United
States to the Philippines.
(d) EFFECTIVE DATE.—This section shall be effec-
tive with respect to supplemental security income benefits
payable for months beginning after the date that is 1 year
after the date of the enactment of this Act, or such earlier
date that the Commissioner of Social Security determines
is administratively feasible.
TITLE III—CHILD SUPPORT
SEC. 301. ELIMINATION OF ENHANCED MATCHING FOR
LABORATORY COSTS FOR PATERNITY ESTAB-
LISHMENT.
(a) IN GENERAL.—Section 455(a)(1) of the Social
Security Act (42 U.S.C. 655(a)(1)) is amended by striking
subparagraph (C) and redesignating subparagraph (D) as
subparagraph (C).
(b) EFFECTIVE DATE.—The amendment made by
this section shall be effective with respect to calendar
quarters beginning on or after October 1, 1999.
SEC. 302. ELIMINATION OF HOLD HARMLESS PROVISION
FOR STATE SHARE OF DISTRIBUTION OF COL-
LECTED CHILD SUPPORT.
(a) IN GENERAL.—Section 457 of the Social Security
Act (42 U.S.C. 657) is amended—
(1) in subsection (a), by striking ‘‘subsections
(e) and (f)’’ and inserting ‘‘subsections (d) and (e)’’;
(2) by striking subsection (d);
(3) in subsection (e), by striking the 2nd sen-
tence; and
(4) by redesignating subsections (e) and (f) as
subsections (d) and (e), respectively.
(b) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to calendar
quarters beginning on or after October 1, 1999.
TITLE IV—TECHNICAL
CORRECTIONS
SEC. 401. TECHNICAL CORRECTIONS RELATING TO AMEND-
MENTS MADE BY THE PERSONAL RESPONSI-
BILITY 
AND 
WORK 
OPPORTUNITY 
REC-
ONCILIATION ACT OF 1996.
(a) Section 402(a)(1)(B)(iv) of the Social Security
Act (42 U.S.C. 602(a)(1)(B)(iv)) is amended by striking
‘‘Act’’ and inserting ‘‘section’’.
(b) Section 409(a)(7)(B)(i)(II) of the Social Security
Act (42 U.S.C. 609(a)(7)(B)(i)(II)) is amended by strik-
ing ‘‘part’’ and inserting ‘‘section’’.
(c) Section 413(g)(1) of the Social Security Act (42
U.S.C. 613(g)(1)) is amended by striking ‘‘Act’’ and in-
serting ‘‘section’’.
(d) Section 413(i)(1) of the Social Security Act (42
U.S.C. 613(i)(1)) is amended by striking ‘‘part’’ and in-
serting ‘‘section’’.
(e) Section 416 of the Social Security Act (42 U.S.C.
616) is amended by striking ‘‘Opportunity Act’’ and in-
serting ‘‘Opportunity Reconciliation Act’’ each place such
term appears.
(f) Section 431(a)(6) of the Social Security Act (42
U.S.C. 629a(a)(6))) is amended—
(1) by inserting ‘‘, as in effect before August
22, 1986’’ after ‘‘482(i)(5)’’; and
(2) by inserting ‘‘, as so in effect’’ after
‘‘482(i)(7)(A)’’.
(g) Sections 452(a)(7) and 466(c)(2)(A)(i) of the So-
cial 
Security 
Act 
(42 
U.S.C. 
652(a)(7) 
and
666(c)(2)(A)(i)) are each amended by striking ‘‘Social Se-
curity’’ and inserting ‘‘social security’’.
(h) Section 454 of the Social Security Act (42 U.S.C.
654) is amended—
(1) by striking ‘‘, or’’ at the end of each of
paragraphs (6)(E)(i) and (19)(B)(i) and inserting ‘‘;
or’’;
(2) in paragraph (9), by striking the comma at
the end of each of subparagraphs (A), (B), (C) and
inserting a semicolon; and
(3) by striking ‘‘, and’’ at the end of each of
paragraphs (19)(A) and (24)(A) and inserting ‘‘;
and’’.
(i) Section 454(24)(B) of the Social Security Act (42
U.S.C. 654(24)(B)) is amended by striking ‘‘Opportunity
Act’’ and inserting ‘‘Opportunity Reconciliation Act’’.
(j) Section 344(b)(1)(A) of the Personal Responsi-
bility and Work Opportunity Reconciliation Act of 1996
(110 Stat. 2236) is amended to read as follows:
‘‘(A) in paragraph (1), by striking sub-
paragraph (B) and inserting the following:
‘(B) equal to the percent specified in para-
graph (3) of the sums expended during such
quarter that are attributable to the planning,
design, development, installation or enhance-
ment of an automatic data processing and in-
formation retrieval system (including in such
sums the full cost of the hardware components
of such system); and’; and’’.
(k) 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’’.
(l) 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’’.
(m) Section 466(a)(7) of the Social Security Act (42
U.S.C. 666(a)(7)) is amended by striking ‘‘1681a(f))’’ and
inserting ‘‘1681a(f)))’’.
(n) Section 466(b)(6)(A) of the Social Security Act
(42 U.S.C. 666(b)(6)(A)) is amended by striking ‘‘state’’
and inserting ‘‘State’’.
(o) Section 471(a)(8) of the Social Security Act (42
U.S.C. 671(a)(8)) is amended by striking ‘‘(including ac-
tivities under part F)’’.
(p) Section 1137(a)(3) of the Social Security Act (42
U.S.C. 
1320b-7(a)(3)) 
is 
amended 
by 
striking
‘‘453A(a)(2)(B)(iii))’’ 
and 
inserting
‘‘453A(a)(2)(B)(ii)))’’.
(q) The amendments made by this section shall take
effect as if included in the enactment of the Personal Re-
sponsibility and Work Opportunity Reconciliation Act of
1996.
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