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.
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
federally 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
program.
Sec. 207. Administrative procedure for imposing penalties for false or mis-
leading statements.
Sec. 208. Exclusion of representatives and health care providers convicted of
violations 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
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) 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
programs can occur concurrent with continued ef-
forts to locate and achieve placement in adoptive
families for older children in foster care.
(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
themselves.
(4) 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.
(5) 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. JOHN H. CHAFEE FOSTER CARE INDEPENDENCE
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 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 financial
management skills, substance abuse prevention, and
preventive health activities (including smoking avoid-
ance, nutrition education, and pregnancy preven-
tion);
‘‘(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 and to assure
that program participants recognize and accept their
personal responsibility for preparing for and then
making the transition from adolescence to adult-
hood.
‘‘(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
requirements of paragraph (2) and the certifications
required by paragraph (3) with respect to the plan.
‘‘(2) STATE PLAN.—A plan meets the require-
ments of this paragraph if the plan specifies which
State agency or agencies will administer, supervise,
or oversee the programs carried out under the plan,
and describes how the State intends to do the fol-
lowing:
‘‘(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 because they have attained 18 years
of age, and who 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 because they have at-
tained 18 years of age, and who have not at-
tained 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 will use train-
ing funds provided under the program of Fed-
eral payments for foster care and adoption as-
sistance to provide training to help foster par-
ents, adoptive parents, workers in group homes,
and case managers understand and address the
issues confronting adolescents preparing for
independent living, and will, to the extent pos-
sible, coordinate such training with the inde-
pendent living program conducted for adoles-
cents.
‘‘(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 transitional living youth projects
funded under part B of title III of the Juvenile
Justice and Delinquency Prevention Act of
1974), abstinence education programs, local
housing programs, programs for disabled youth
(especially sheltered workshops), and school-to-
work programs offered by high schools or local
workforce agencies.
‘‘(G) A certification by the chief executive
officer of the State that each Indian tribe in the
State has been consulted about the programs to
be carried out under the plan; that there have
been efforts to coordinate the programs with
such tribes; and that benefits and services
under the programs will be made available to
Indian children 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 design-
ing their own program activities that prepare
them for independent living and that the ado-
lescents accept personal responsibility for living
up to their part of the program.
‘‘(I) 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; and
‘‘(B) the Secretary finds that the applica-
tion contains the material required by para-
graph (1).
‘‘(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, as ad-
justed in accordance 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 great-
er of $500,000 or the amount payable to the
State under this section for fiscal year 1998, an
additional amount equal to the difference be-
tween such allotment and such greater amount.
‘‘(B) RATABLE
REDUCTION
OF
CERTAIN
ALLOTMENTS.—In the case of a State not de-
scribed in subparagraph (A) of this paragraph
for a fiscal 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 de-
termined 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.—
‘‘(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.
‘‘(3) TWO-YEAR
AVAILABILITY
OF
FUNDS.—
Payments made to a State under this section for a
fiscal year shall be expended by the State in the fis-
cal 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
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, high school
diploma, employment, avoidance of dependency,
homelessness, nonmarital childbirth, incarcer-
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 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) and a proposal to impose penalties con-
sistent with paragraph (e)(2) on States that do not
report data.
‘‘(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 and for payments
to States under section 474(a)(4), there are authorized to
be appropriated to the Secretary $140,000,000 for each
fiscal year.’’.
(c) PAYMENTS TO STATES.—Section 474(a)(4) of
such Act (42 U.S.C. 674(a)(4)) is amended to read as 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.
(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 So-
cial 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 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)).’’.
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 pro-
spective 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
subsection (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—
(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 sub-
clause:
‘‘(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.
(c) CONTINGENCY IN ENACTMENT.—If the Ticket to
Work and Work Incentives Improvement Act of 1999 is
enacted (whether before, on, or after the date of the enact-
ment of this Act)—
(1) the amendments made by that Act shall be
executed as if this Act had been enacted after the
enactment 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);
(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
Social Security Act (42 U.S.C. 673b) is amended by add-
ing 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
appropriations Acts, in addition to any amount oth-
erwise payable under this section to any State that
is an incentive-eligible State for fiscal year 1998, the
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
during fiscal year 1999 (on the basis of
adoptions in fiscal year 1998) in the ab-
sence of subsection (d)(2) if sufficient
funds had been available for the payment;
exceeds
‘‘(ii) the amount that, before the en-
actment 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
(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 ‘‘un-
less 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 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 ‘‘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. 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) 
CONFORMING
AMENDMENTS.—Section
1902(a)(10) of the Social Security Act (42 U.S.C.
1396a(a)(10)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (E);
(2) by adding ‘‘and’’ at the end of subpara-
graph (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 eli-
gibility for medical assistance under the State
plan of an individual who is not receiving sup-
plemental security income, the State will dis-
regard the provisions 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 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) 
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 striking ‘‘section 1613(e)’’ and inserting
‘‘subsections (c) and (e) of section 1613’’.
(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
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 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 de-
scribed in subsection (b) to be imposed by the Commis-
sioner 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) 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 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. 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
Security 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 PAR-
TICIPATION IN SOCIAL SECURITY PROGRAMS
‘‘SEC. 1136. (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 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 ef-
fected under such subsection, the period of the ex-
clusion 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
section 1631(a)(2)(A)(ii), or otherwise as a rep-
resentative, 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
1136(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. 209. 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. 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 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. 211. 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. 212. 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)) 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
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 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.
that basis, determine that the applicant or recipient is in-
eligible for benefits under this title.’’.
Subtitle B—Benefits For Certain
World War II Veterans
SEC. 251. ESTABLISHMENT OF PROGRAM OF SPECIAL BEN-
EFITS FOR CERTAIN WORLD WAR II VET-
ERANS.
(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
provisions 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 Commissioner determines is administratively feasible)
the individual 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 be-
fore 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
the United States if, on the first day of the month, the
individual 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
Attorney General that the individual has been re-
moved from the United States pursuant to section
237(a) or 212(a)(6)(A) of the Immigration and Na-
tionality Act and before the month in which the indi-
vidual is lawfully 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
attempt 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 Jer-
sey, is a high misdemeanor under the laws of such
State;
‘‘(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 in-
dividuals 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
individual 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 individ-
ual’s benefit income for the month.
‘‘SEC. 806. APPLICATIONS AND FURNISHING OF INFORMA-
TION.
‘‘(a) IN GENERAL.—The Commissioner of Social Se-
curity shall, subject to subsection (b), prescribe such re-
quirements with respect to the filing of applications, the
furnishing of information and other material, and the re-
porting of events and changes in circumstances, as may
be necessary for the effective and efficient administration
of this title.
‘‘(b) VERIFICATION REQUIREMENT.—The require-
ments prescribed by the Commissioner of Social Security
under subsection (a) shall preclude any determination of
entitlement to benefits under this title solely on the basis
of declarations 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
Security 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 incom-
petency 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 an organization) with respect to whom
the requirements of subsection (b) have been met (in this
section referred to as the qualified individual’s ‘represent-
ative payee’). If the Commissioner of Social Security de-
termines that a representative payee has misused any ben-
efit paid to the representative payee pursuant to this sec-
tion, section 205(j), or section 1631(a)(2), the Commis-
sioner of Social Security shall promptly revoke the per-
son’s designation as the qualified individual’s representa-
tive 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 individual.
‘‘(b) EXAMINATION OF FITNESS OF PROSPECTIVE
REPRESENTATIVE 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-
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 pur-
poses of the program under title II or an em-
ployer identification number issued for purposes
of the Internal Revenue Code of 1986, verify
the number;
‘‘(C) determine whether the person has
been convicted of a violation of section 208,
811, or 1632; and
‘‘(D) determine whether payment of bene-
fits to the person in the capacity as representa-
tive payee has been revoked or terminated pur-
suant to this section, section 205(j), or section
1631(a)(2)(A)(iii) by reason of misuse of funds
paid as benefits under this title, title II, or
XVI, respectively.
‘‘(c) REQUIREMENT FOR MAINTAINING LISTS OF UN-
DESIRABLE PAYEES.—The Commissioner of Social Secu-
rity shall establish and maintain lists which shall be up-
dated periodically and which shall be in a form that ren-
ders such lists available to the servicing offices of the So-
cial Security Administration. The lists shall consist of—
‘‘(1) the names and (if issued) social security
account 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, sec-
tion 205(j), or section 1631(a)(2)(A)(iii) by reason
of misuse of funds paid as benefits under this title,
title II, or XVI, respectively; and
‘‘(2) the names and (if issued) social security
account 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 REP-
RESENTATIVE PAYEES.—
‘‘(1) IN GENERAL.—The benefits of a qualified
individual may not be paid to any other person pur-
suant to this section if—
‘‘(A) the person has been convicted of a
violation of section 208, 811, or 1632;
‘‘(B) except as provided in paragraph (2),
payment of benefits to the person in the capac-
ity of representative payee has been revoked or
terminated under this section, section 205(j), or
section 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 re-
ferred to in such paragraph if the creditor is—
‘‘(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 quali-
fied 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 pay-
ment to the facility or the person is made
only after the Commissioner of Social Se-
curity 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 Commis-
sioner of Social Security, to be acceptable
to serve as a representative payee.
‘‘(C) The procedures referred to in sub-
paragraph (B)(v) shall require the person who
will serve as representative payee to establish,
to the satisfaction of the Commissioner of So-
cial Security, 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 rep-
resentative payee can be found.
‘‘(e) DEFERRAL OF PAYMENT PENDING APPOINT-
MENT OF REPRESENTATIVE PAYEE.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
if the Commissioner of Social Security makes a de-
termination described in the first sentence of sub-
section (a) with respect to any qualified individual’s
benefit and determines that direct payment of the
benefit to the qualified individual would cause sub-
stantial harm to the qualified individual, the Com-
missioner of Social Security may defer (in the case
of initial entitlement) or suspend (in the case of ex-
isting entitlement) direct payment of the benefit to
the qualified individual, until such time as the selec-
tion of a representative 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
Security’s determination, legally incompetent
under the laws of the jurisdiction in which the
individual 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
representative payee as a single sum or over such
period of time as the Commissioner of Social Secu-
rity determines is in the best interest of the qualified
individual.
‘‘(f) HEARING.—Any qualified individual who is dis-
satisfied with a determination by the Commissioner of So-
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 hear-
ing by the Commissioner of Social Security to the same
extent as is provided in section 809(a), and to judicial re-
view of the Commissioner of Social Security’s final deci-
sion 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 individ-
ual’s benefit to a representative payee under sub-
section (a), the Commissioner of Social Security
shall provide written notice of the Commissioner’s
initial determination to so make the payment. The
notice shall be provided to the qualified individual,
except that, if the qualified individual is legally in-
competent, then the notice shall be provided solely to
the legal guardian 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
qualified individual’s representative payee, and shall
explain to the reader the right under subsection (f)
of 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
system of accountability monitoring under which the
person shall report not less often than annually with
respect to the use of the payments. The Commis-
sioner of Social Security shall establish and imple-
ment statistically valid procedures for reviewing the
reports in order to identify instances in which per-
sons are not properly using the payments.
‘‘(2) 
SPECIAL
REPORTS.—Notwithstanding
paragraph (1), the Commissioner of Social Security
may require a report at any time from any person
receiving payments on behalf of a qualified indi-
vidual, if the Commissioner of Social Security has
reason to believe that the person receiving the pay-
ments is misusing the payments.
‘‘(3) MAINTAINING
LISTS
OF
PAYEES.—The
Commissioner 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
identification number of each representative
payee who is receiving benefit payments pursu-
ant 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 agen-
cies and community-based nonprofit social service
agencies which are qualified to serve as representa-
tive payees pursuant to this section and which are
located in the jurisdiction in which any qualified in-
dividual resides.
‘‘(i) RESTITUTION.—In any case where the negligent
failure of the Commissioner of Social Security to inves-
tigate or monitor a representative payee results in misuse
of benefits by the representative payee, the Commissioner
of Social Security shall make payment to the qualified in-
dividual 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 represent-
ative payee.
‘‘SEC. 808. OVERPAYMENTS AND UNDERPAYMENTS.
‘‘(a) IN GENERAL.—Whenever the Commissioner of
Social 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
estate to refund the amount in excess of the
correct amount, or, if recovery is not obtained
under these 2 methods, shall seek or pursue re-
covery by means of reduction in tax refunds
based on notice to the Secretary of the Treas-
ury, as authorized 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 pre-
pared 
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
qualified individual; or
‘‘(B) is deceased, the balance of the
amount due shall revert to the general fund of
the Treasury.
‘‘(b) NO EFFECT ON TITLE VIII ELIGIBILITY OR
BENEFIT AMOUNT.—In any case in which the Commis-
sioner of Social Security takes action in accordance with
subsection (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 pay-
ment has been made, there shall be no adjustment of pay-
ments to, or recovery by the United States from, any per-
son who is without fault if the Commissioner of Social Se-
curity determines 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 adjust-
ment under subsection (a) is not completed before the
death of the qualified individual against whose benefits de-
ductions are authorized.
‘‘(e) AUTHORIZED COLLECTION PRACTICES.—
‘‘(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 So-
cial Security shall make findings of fact and deci-
sions as to the rights of any individual applying for
payment under this title. The Commissioner of So-
cial Security shall provide reasonable notice and op-
portunity for a hearing to any individual who is or
claims to be a qualified individual and is in disagree-
ment with any determination under this title with
respect to entitlement to, or the amount of, benefits
under this title, if the individual requests a hearing
on the matter in disagreement within 60 days after
notice of the determination is received, and, if a
hearing is held, shall, on the basis of evidence ad-
duced at the hearing affirm, modify, or reverse the
Commissioner of Social Security’s findings of fact
and the decision. The Commissioner of Social Secu-
rity may, on the Commissioner of Social Security’s
own motion, hold such hearings and conduct such
investigations and other proceedings as the Commis-
sioner 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 administer oaths and affirma-
tions, examine witnesses, and receive evidence. Evi-
dence may be received at any hearing before the
Commissioner of Social Security even though inad-
missible under the rules of evidence applicable to
court procedure. The Commissioner of Social Secu-
rity shall specifically take into account any physical,
mental, educational, or linguistic limitation of the in-
dividual (including any lack of facility 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 faith
or was at fault, and in determining fraud, deception,
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
initial determination shall not serve as a basis for
denial of a subsequent application for any payment
under this title if the applicant demonstrates that
the applicant failed to so request such a review act-
ing in good faith reliance upon incorrect, incomplete,
or misleading information, relating to the con-
sequences of reapplying for payments in lieu of seek-
ing review of an adverse determination, provided by
any officer or employee of the Social Security Ad-
ministration.
‘‘(3) NOTICE REQUIREMENTS.—In any notice of
an adverse determination with respect to which a re-
view may be requested under paragraph (1), the