189
(2) APPLICATION TO CURRENT RECIPIENTS.—
(A) ELIGIBILITY DETERMINATIONS.—Dur-
ing the period beginning on the date of the en-
actment of this Act and ending on the date
which is 1 year after such date of enactment,
the Commissioner of Social Security shall rede-
termine the eligibility of any individual under
age 18 who is receiving supplemental security
income benefits by reason of disability under
title XVI of the Social Security Act as of the
date of the enactment of this Act and whose eli-
gibility for such benefits may terminate by rea-
son of the provisions of, or amendments made
by, subsections (a) and (b)(2). With respect to
any redetermination under this subparagraph—
(i) section 1614(a)(4) of the Social
Security Act (42 U.S.C. 1382c(a)(4)) shall
not apply;
(ii) the Commissioner of Social Secu-
rity shall apply the eligibility criteria for
new applicants for benefits under title XVI
of such Act;
(iii) the Commissioner shall give such
redetermination priority over all continuing
190
eligibility reviews and other reviews under
such title; and
(iv) such redetermination shall be
counted as a review or redetermination
otherwise required to be made under sec-
tion 208 of the Social Security Independ-
ence and Program Improvements Act of
1994 or any other provision of title XVI of
the Social Security Act.
(B) GRANDFATHER PROVISION.—The pro-
visions of, and amendments made by, sub-
sections (a) and (b)(2), and the redetermination
under subparagraph (A), shall only apply with
respect to the benefits of an individual de-
scribed in subparagraph (A) for months begin-
ning on or after the date of the redetermination
with respect to such individual.
(C) NOTICE.—Not later than January 1,
1997, the Commissioner of Social Security shall
notify an individual described in subparagraph
(A) of the provisions of this paragraph.
(3) REPORT.—The Commissioner of Social Se-
curity shall report to the Congress regarding the
progress made in implementing the provisions of,
and amendments made by, this section on child dis-
191
ability evaluations not later than 180 days after the
date of the enactment of this Act.
(4) REGULATIONS.—Notwithstanding any other
provision of law, the Commissioner of Social Secu-
rity shall submit for review to the committees of ju-
risdiction in the Congress any final regulation per-
taining to the eligibility of individuals under age 18
for benefits under title XVI of the Social Security
Act at least 45 days before the effective date of such
regulation. The submission under this paragraph
shall include supporting documentation providing a
cost analysis, workload impact, and projections as to
how the regulation will effect the future number of
recipients under such title.
(5) BENEFITS
UNDER
TITLE
XVI.—For pur-
poses of this subsection, the term ‘‘benefits under
title XVI of the Social Security Act’’ includes sup-
plementary payments pursuant to an agreement for
Federal administration under section 1616(a) of the
Social Security Act, and payments pursuant to an
agreement entered into under section 212(b) of Pub-
lic Law 93–66.
192
SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINU-
ING DISABILITY REVIEWS.
(a) CONTINUING DISABILITY REVIEWS RELATING TO
CERTAIN CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C.
1382c(a)(3)(H)), as redesignated by section 211(a)(3), is
amended—
(1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and
(2) by adding at the end the following new
clause:
‘‘(ii)(I) Not less frequently than once every 3 years,
the Commissioner shall review in accordance with para-
graph (4) the continued eligibility for benefits under this
title of each individual who has not attained 18 years of
age and is eligible for such benefits by reason of an im-
pairment (or combination of impairments) which is likely
to improve (or, at the option of the Commissioner, which
is unlikely to improve).
‘‘(II) A representative payee of a recipient whose case
is reviewed under this clause shall present, at the time
of review, evidence demonstrating that the recipient is,
and has been, receiving treatment, to the extent consid-
ered medically necessary and available, of the condition
which was the basis for providing benefits under this title.
‘‘(III) If the representative payee refuses to comply
without good cause with the requirements of subclause
(II), the Commissioner of Social Security shall, if the
193
Commissioner determines it is in the best interest of the
individual, promptly terminate payment of benefits to the
representative payee, and provide for payment of benefits
to an alternative representative payee of the individual or,
if the interest of the individual under this title would be
served thereby, to the individual.
‘‘(IV) Subclause (II) shall not apply to the represent-
ative payee of any individual with respect to whom the
Commissioner determines such application would be inap-
propriate or unnecessary. In making such determination,
the Commissioner shall take into consideration the nature
of the individual’s impairment (or combination of impair-
ments). Section 1631(c) shall not apply to a finding by
the Commissioner that the requirements of subclause (II)
should not apply to an individual’s representative payee.’’.
(b) DISABILITY ELIGIBILITY REDETERMINATIONS
REQUIRED FOR SSI RECIPIENTS WHO ATTAIN 18 YEARS
OF AGE.—
(1) IN GENERAL.—Section 1614(a)(3)(H) (42
U.S.C. 1382c(a)(3)(H)), as amended by subsection
(a), is amended by adding at the end the following
new clause:
‘‘(iii) If an individual is eligible for benefits under this
title by reason of disability for the month preceding the
194
month in which the individual attains the age of 18 years,
the Commissioner shall redetermine such eligibility—
‘‘(I) during the 1-year period beginning on the
individual’s 18th birthday; and
‘‘(II) by applying the criteria used in determin-
ing the initial eligibility for applicants who are age
18 or older.
With respect to a redetermination under this clause, para-
graph (4) shall not apply and such redetermination shall
be considered a substitute for a review or redetermination
otherwise required under any other provision of this sub-
paragraph during that 1-year period.’’.
(2) CONFORMING REPEAL.—Section 207 of the
Social Security Independence and Program Improve-
ments Act of 1994 (42 U.S.C. 1382 note; 108 Stat.
1516) is hereby repealed.
(c) CONTINUING DISABILITY REVIEW REQUIRED FOR
LOW BIRTH WEIGHT BABIES.—Section 1614(a)(3)(H)
(42 U.S.C. 1382c(a)(3)(H)), as amended by subsections
(a) and (b), is amended by adding at the end the following
new clause:
‘‘(iv)(I) Not later than 12 months after the birth of
an individual, the Commissioner shall review in accordance
with paragraph (4) the continuing eligibility for benefits
under this title by reason of disability of such individual
195
whose low birth weight is a contributing factor material
to the Commissioner’s determination that the individual
is disabled.
‘‘(II) A review under subclause (I) shall be considered
a substitute for a review otherwise required under any
other provision of this subparagraph during that 12-
month period.
‘‘(III) A representative payee of a recipient whose
case is reviewed under this clause shall present, at the
time of review, evidence demonstrating that the recipient
is, and has been, receiving treatment, to the extent consid-
ered medically necessary and available, of the condition
which was the basis for providing benefits under this title.
‘‘(IV) If the representative payee refuses to comply
without good cause with the requirements of subclause
(III), the Commissioner of Social Security shall, if the
Commissioner determines it is in the best interest of the
individual, promptly terminate payment of benefits to the
representative payee, and provide for payment of benefits
to an alternative representative payee of the individual or,
if the interest of the individual under this title would be
served thereby, to the individual.
‘‘(V) Subclause (III) shall not apply to the represent-
ative payee of any individual with respect to whom the
Commissioner determines such application would be inap-
196
propriate or unnecessary. In making such determination,
the Commissioner shall take into consideration the nature
of the individual’s impairment (or combination of impair-
ments). Section 1631(c) shall not apply to a finding by
the Commissioner that the requirements of subclause (III)
should not apply to an individual’s representative payee.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to benefits for months beginning
on or after the date of the enactment of this Act, without
regard to whether regulations have been issued to imple-
ment such amendments.
SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.
(a) DISPOSAL OF RESOURCES FOR LESS THAN FAIR
MARKET VALUE.—
(1) IN GENERAL.—Section 1613(c) (42 U.S.C.
1382b(c)) is amended to read as follows:
‘‘Disposal of Resources for Less Than Fair Market Value
‘‘(c)(1)(A)(i) If an individual who has not attained
18 years of age (or any person acting on such individual’s
behalf) disposes of resources of the individual for less than
fair market value on or after the look-back date specified
in clause (ii)(I), the individual is ineligible for benefits
under this title for months during the period beginning
on the date specified in clause (iii) and equal to the num-
ber of months specified in clause (iv).
197
‘‘(ii)(I) The look-back date specified in this subclause
is a date that is 36 months before the date specified in
subclause (II).
‘‘(II) The date specified in this subclause is the date
on which the individual applies for benefits under this title
or, if later, the date on which the disposal of the individ-
ual’s resources for less than fair market value occurs.
‘‘(iii) The date specified in this clause is the first day
of the first month that follows the month in which the
individual’s resources were disposed of for less than fair
market value and that does not occur in any other period
of ineligibility under this paragraph.
‘‘(iv) The number of months of ineligibility under this
clause for an individual shall be equal to—
‘‘(I) the total, cumulative uncompensated value
of all the individual’s resources so disposed of on or
after the look-back date specified in clause (ii)(I), di-
vided by
‘‘(II) the amount of the maximum monthly ben-
efit payable under section 1611(b) to an eligible in-
dividual for the month in which the date specified in
clause (ii)(II) occurs.
‘‘(B) An individual shall not be ineligible for benefits
under this title by reason of subparagraph (A) if the Com-
missioner determines that—
198
‘‘(i) the individual intended to dispose of the re-
sources at fair market value;
‘‘(ii) the resources were transferred exclusively
for a purpose other than to qualify for benefits
under this title;
‘‘(iii) all resources transferred for less than fair
market value have been returned to the individual;
or
‘‘(iv) the denial of eligibility would work an
undue hardship on the individual (as determined on
the basis of criteria established by the Commissioner
in regulations).
‘‘(C) For purposes of this paragraph, in the case of
a resource held by an individual in common with another
person or persons in a joint tenancy, tenancy in common,
or similar arrangement, the resource (or the affected por-
tion of such resource) shall be considered to be disposed
of by such individual when any action is taken, either by
such individual or by any other person, that reduces or
eliminates such individual’s ownership or control of such
resource.
‘‘(D)(i) Notwithstanding subparagraph (A), this sub-
section shall not apply to a transfer of a resource to a
trust if the portion of the trust attributable to such re-
source is considered a resource available to the individual
199
pursuant to subsection (e)(3) (or would be so considered,
but for the application of subsection (e)(4)).
‘‘(ii) In the case of a trust established by an individ-
ual (within the meaning of subsection (e)(2)(A)), if from
such portion of the trust (if any) that is considered a re-
source available to the individual pursuant to subsection
(e)(3) (or would be so considered but for the application
of subsection (e)(2)) or the residue of such portion upon
the termination of the trust—
‘‘(I) there is made a payment other than to or
for the benefit of the individual, or
‘‘(II) no payment could under any circumstance
be made to the individual,
then the payment described in subclause (I) or the fore-
closure of payment described in subclause (II) shall be
considered a disposal of resources by the individual subject
to this subsection, as of the date of such payment or fore-
closure, respectively.
‘‘(2)(A) At the time an individual (and the individ-
ual’s eligible spouse, if any) applies for benefits under this
title, and at the time the eligibility of an individual (and
such spouse, if any) for such benefits is redetermined, the
Commissioner of Social Security shall—
‘‘(i) inform such individual of the provisions of
paragraph (1) providing for a period of ineligibility
200
for benefits under this title for individuals who make
certain dispositions of resources for less than fair
market value, and inform such individual that infor-
mation obtained pursuant to clause (ii) will be made
available to the State agency administering a State
plan approved under title XV or XIX (as provided
in subparagraph (B)); and
‘‘(ii) obtain from such individual information
which may be used in determining whether or not a
period of ineligibility for such benefits would be re-
quired by reason of paragraph (1).
‘‘(B) The Commissioner of Social Security shall make
the information obtained under subparagraph (A)(ii)
available, on request, to any State agency administering
a State plan approved under title XV or XIX.
‘‘(3) For purposes of this subsection—
‘‘(A) the term ‘trust’ includes any legal instru-
ment or device that is similar to a trust; and
‘‘(B) the term ‘benefits under this title’ includes
supplementary payments pursuant to an agreement
for Federal administration under section 1616(a),
and payments pursuant to an agreement entered
into under section 212(b) of Public Law 93–66.’’.
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall be effective with respect to
201
transfers that occur at least 90 days after the date
of the enactment of this Act.
(b) TREATMENT OF ASSETS HELD IN TRUST.—
(1) TREATMENT AS RESOURCE.—Section 1613
(42 U.S.C. 1382) is amended by adding at the end
the following new subsection:
‘‘Trusts
‘‘(e)(1) In determining the resources of an individual
who has not attained 18 years of age, the provisions of
paragraph (3) shall apply to a trust established by such
individual.
‘‘(2)(A) For purposes of this subsection, an individual
shall be considered to have established a trust if any assets
of the individual were transferred to the trust.
‘‘(B) In the case of an irrevocable trust to which the
assets of an individual and the assets of any other person
or persons were transferred, the provisions of this sub-
section shall apply to the portion of the trust attributable
to the assets of the individual.
‘‘(C) This subsection shall apply without regard to—
‘‘(i) the purposes for which the trust is estab-
lished;
‘‘(ii) whether the trustees have or exercise any
discretion under the trust;
202
‘‘(iii) any restrictions on when or whether dis-
tributions may be made from the trust; or
‘‘(iv) any restrictions on the use of distributions
from the trust.
‘‘(3)(A) In the case of a revocable trust, the corpus
of the trust shall be considered a resource available to the
individual.
‘‘(B) In the case of an irrevocable trust, if there are
any circumstances under which payment from the trust
could be made to or for the benefit of the individual, the
portion of the corpus from which payment to or for the
benefit of the individual could be made shall be considered
a resource available to the individual.
‘‘(4) The Commissioner may waive the application of
this subsection with respect to any individual if the Com-
missioner determines, on the basis of criteria prescribed
in regulations, that such application would work an undue
hardship on such individual.
‘‘(5) For purposes of this subsection—
‘‘(A) the term ‘trust’ includes any legal instru-
ment or device that is similar to a trust;
‘‘(B) the term ‘corpus’ means all property and
other interests held by the trust, including accumu-
lated earnings and any other addition to such trust
after its establishment (except that such term does
203
not include any such earnings or addition in the
month in which such earnings or addition is credited
or otherwise transferred to the trust);
‘‘(C) the term ‘asset’ includes any income or re-
source of the individual, including—
‘‘(i) any income otherwise excluded by sec-
tion 1612(b);
‘‘(ii) any resource otherwise excluded by
this section; and
‘‘(iii) any other payment or property that
the individual is entitled to but does not receive
or have access to because of action by—
‘‘(I) such individual;
‘‘(II) a person or entity (including a
court) with legal authority to act in place
of, or on behalf of, such individual; or
‘‘(III) a person or entity (including a
court) acting at the direction of, or upon
the request of, such individual; and
‘‘(D) the term ‘benefits under this title’ in-
cludes supplementary payments pursuant to an
agreement for Federal administration under section
1616(a), and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93–
66.’’.
204
(2) 
TREATMENT
AS
INCOME.—Section
1612(a)(2) (42 U.S.C. 1382a(a)(2)) is amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (E);
(B) by striking the period at the end of
subparagraph (F) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(G) any earnings of, and additions to, the
corpus of a trust (as defined in section 1613(f))
established by an individual (within the mean-
ing of section 1613(e)(2)(A)) and of which such
individual is a beneficiary (other than a trust to
which section 1613(e)(4) applies), except that
in the case of an irrevocable trust, there shall
exist circumstances under which payment from
such earnings or additions could be made to, or
for the benefit of, such individual.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on January 1,
1996, and shall apply to trusts established on or
after such date.
(c) REQUIREMENT TO ESTABLISH ACCOUNT.—
(1) IN
GENERAL.—Section 1631(a)(2) (42
U.S.C. 1383(a)(2)) is amended—
205
(A) by redesignating subparagraphs (F)
and (G) as subparagraphs (G) and (H), respec-
tively; and
(B) by inserting after subparagraph (E)
the following new subparagraph:
‘‘(F)(i)(I) Each representative payee of an eligible in-
dividual under the age of 18 who is eligible for the pay-
ment of benefits described in subclause (II) shall establish
on behalf of such individual an account in a financial insti-
tution into which such benefits shall be paid, and shall
thereafter maintain such account for use in accordance
with clause (ii).
‘‘(II) Benefits described in this subclause are past-
due monthly benefits under this title (which, for purposes
of this subclause, include State supplementary payments
made by the Commissioner pursuant to an agreement
under section 1616 or section 212(b) of Public Law 93–
66) in an amount (after any withholding by the Commis-
sioner for reimbursement to a State for interim assistance
under subsection (g)) that exceeds the product of—
‘‘(aa) 6, and
‘‘(bb) the maximum monthly benefit payable
under this title to an eligible individual.
206
‘‘(ii)(I) A representative payee may use funds in the
account established under clause (i) to pay for allowable
expenses described in subclause (II).
‘‘(II) An allowable expense described in this subclause
is an expense for—
‘‘(aa) education or job skills training;
‘‘(bb) personal needs assistance;
‘‘(cc) special equipment;
‘‘(dd) housing modification;
‘‘(ee) medical treatment;
‘‘(ff) therapy or rehabilitation; or
‘‘(gg) any other item or service that the Com-
missioner determines to be appropriate;
provided that such expense benefits such individual and,
in the case of an expense described in item (cc), (dd), (ff),
or (gg), is related to the impairment (or combination of
impairments) of such individual.
‘‘(III) The use of funds from an account established
under clause (i) in any manner not authorized by this
clause—
‘‘(aa) by a representative payee shall constitute
misuse of benefits for all purposes of this paragraph,
and any representative payee who knowingly misuses
benefits from such an account shall be liable to the
207
Commissioner in an amount equal to the total
amount of such misused benefits; and
‘‘(bb) by an eligible individual who is his or her
own representative payee shall be considered an
overpayment subject to recovery under subsection
(b).
‘‘(IV) This clause shall continue to apply to funds in
the account after the child has reached age 18, regardless
of whether benefits are paid directly to the beneficiary or
through a representative payee.
‘‘(iii) The representative payee may deposit into the
account established pursuant to clause (i)—
‘‘(I) past-due benefits payable to the eligible in-
dividual in an amount less than that specified in
clause (i)(II), and
‘‘(II) any other funds representing an under-
payment under this title to such individual, provided
that the amount of such underpayment is equal to
or exceeds the maximum monthly benefit payable
under this title to an eligible individual.
‘‘(iv) The Commissioner of Social Security shall es-
tablish a system for accountability monitoring whereby
such representative payee shall report, at such time and
in such manner as the Commissioner shall require, on ac-
208
tivity respecting funds in the account established pursuant
to clause (i).’’.
(2) EXCLUSION
FROM
RESOURCES.—Section
1613(a) (42 U.S.C. 1382b(a)) is amended—
(A) in paragraph (9), by striking ‘‘; and’’
and inserting a semicolon;
(B) in the first paragraph (10), by striking
the period and inserting a semicolon;
(C) by redesignating the second paragraph
(10) as paragraph (11), and by striking the pe-
riod and inserting ‘‘; and’’; and
(D) by adding at the end the following new
paragraph:
‘‘(12) the assets and accrued interest or other
earnings of any account established and maintained
in accordance with section 1631(a)(2)(F).’’.
(3) 
EXCLUSION
FROM
INCOME.—Section
1612(b) (42 U.S.C. 1382a(b)) is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (19);
(B) by striking the period at the end of
paragraph (20) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
209
‘‘(21) the interest or other earnings on any ac-
count established and maintained in accordance with
section 1631(a)(2)(F).’’.
(4) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to payments made
after the date of the enactment of this Act.
SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO IN-
STITUTIONALIZED INDIVIDUALS WHOSE MED-
ICAL COSTS ARE COVERED BY PRIVATE IN-
SURANCE.
(a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C.
1382(e)(1)(B)) is amended—
(1) by striking ‘‘title XIX, or’’ and inserting
‘‘title XV or XIX,’’; and
(2) by inserting ‘‘or, in the case of an eligible
individual under the age of 18 receiving payments
(with respect to such individual) under any health
insurance policy issued by a private provider of such
insurance’’ after ‘‘section 1614(f)(2)(B),’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to benefits for months beginning
90 or more days after the date of the enactment of this
Act, without regard to whether regulations have been is-
sued to implement such amendments.
210
SEC. 215. INSTALLMENT PAYMENT OF LARGE PAST-DUE
SUPPLEMENTAL SECURITY INCOME BENE-
FITS.
(a) IN GENERAL.—Section 1631(a) (42 U.S.C. 1383)
is amended by adding at the end the following new para-
graph:
‘‘(10)(A) If an individual is eligible for past-due
monthly benefits under this title in an amount that (after
any withholding for reimbursement to a State for interim
assistance under subsection (g)) equals or exceeds the
product of—
‘‘(i) 12, and
‘‘(ii) the maximum monthly benefit payable
under this title to an eligible individual (or, if appro-
priate, to an eligible individual and eligible spouse),
then the payment of such past-due benefits (after any such
reimbursement to a State) shall be made in installments
as provided in subparagraph (B).
‘‘(B)(i) The payment of past-due benefits subject to
this subparagraph shall be made in not to exceed 3 install-
ments that are made at 6-month intervals.
‘‘(ii) Except as provided in clause (iii), the amount
of each of the first and second installments may not exceed
an amount equal to the product of clauses (i) and (ii) of
subparagraph (A).
‘‘(iii) In the case of an individual who has—
211
‘‘(I) outstanding debt attributable to—
‘‘(aa) food,
‘‘(bb) clothing,
‘‘(cc) shelter, or
‘‘(dd) medically necessary services, supplies
or equipment, or medicine; or
‘‘(II) current expenses or expenses anticipated
in the near term attributable to—
‘‘(aa) medically necessary services, supplies
or equipment, or medicine, or
‘‘(bb) the purchase of a home, and
such debt or expenses are not subject to reimbursement
by a public assistance program, the Secretary under title
XVIII, a State plan approved under title XV or XIX, or
any private entity legally liable to provide payment pursu-
ant to an insurance policy, pre-paid plan, or other ar-
rangement, the limitation specified in clause (ii) may be
exceeded by an amount equal to the total of such debt
and expenses.
‘‘(C) This paragraph shall not apply to any individual
who, at the time of the Commissioner’s determination that
such individual is eligible for the payment of past-due
monthly benefits under this title—
212
‘‘(i) is afflicted with a medically determinable
impairment that is expected to result in death within
12 months; or
‘‘(ii) is ineligible for benefits under this title
and the Commissioner determines that such individ-
ual is likely to remain ineligible for the next 12
months.
‘‘(D) For purposes of this paragraph, the term ‘bene-
fits under this title’ includes supplementary payments pur-
suant to an agreement for Federal administration under
section 1616(a), and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93–66.’’.
(b) CONFORMING AMENDMENT.—Section 1631(a)(1)
(42 U.S.C. 1383(a)(1)) is amended by inserting ‘‘(subject
to paragraph (10))’’ immediately before ‘‘in such install-
ments’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section are effective with respect to past-due
benefits payable under title XVI of the Social Secu-
rity Act after the third month following the month
in which this Act is enacted.
(2) BENEFITS PAYABLE UNDER TITLE XVI.—
For purposes of this subsection, the term ‘‘benefits
payable under title XVI of the Social Security Act’’
213
includes supplementary payments pursuant to an
agreement for Federal administration under section
1616(a) of the Social Security Act, and payments
pursuant to an agreement entered into under section
212(b) of Public Law 93–66.
SEC. 216. RECOVERY OF SUPPLEMENTAL SECURITY IN-
COME OVERPAYMENTS FROM SOCIAL SECU-
RITY BENEFITS.
(a) IN GENERAL.—Part A of title XI is amended by
adding at the end the following new section:
‘‘RECOVERY OF SSI OVERPAYMENTS FROM SOCIAL
SECURITY BENEFITS
‘‘SEC. 1145. (a) IN GENERAL.—Whenever the Com-
missioner of Social Security determines that more than
the correct amount of any payment has been made to any
person under the supplemental security income program
authorized by title XVI, and the Commissioner is unable
to make proper adjustment or recovery of the amount so
incorrectly paid as provided in section 1631(b), the Com-
missioner (notwithstanding section 207) may recover the
amount incorrectly paid by decreasing any amount which
is payable under the Federal Old-Age and Survivors Insur-
ance program or the Federal Disability Insurance pro-
gram authorized by title II to that person or that person’s
estate.
214
‘‘(b) NO EFFECT ON SSI BENEFIT ELIGIBILITY OR
AMOUNT.—Notwithstanding subsections (a) and (b) of
section 1611, in any case in which the Commissioner takes
action in accordance with subsection (a) to recover an
overpayment from any person, neither that person, nor
any individual whose eligibility or benefit amount is deter-
mined by considering any part of that person’s income,
shall, as a result of such action—
‘‘(1) become eligible under the program of sup-
plemental security income benefits under title XVI,
or
‘‘(2) if such person or individual is already so
eligible, become eligible for increased benefits there-
under.
‘‘(c) PROGRAM UNDER TITLE XVI.—For purposes of
this section, the term ‘supplemental security income pro-
gram authorized by title XVI’ includes supplementary pay-
ments pursuant to an agreement for Federal administra-
tion under section 1616(a), and payments pursuant to an
agreement entered into under section 212(b) of Public
Law 93–66.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 204 (42 U.S.C. 404) is amended by
adding at the end the following new subsection:
215
‘‘(g) For payments which are adjusted or withheld
to recover an overpayment of supplemental security in-
come benefits paid under title XVI (including State sup-
plementary payments which were paid under an agreement
pursuant to section 1616(a) or section 212(b) of Public
Law 93-66), see section 1145.’’.
(2) Section 1631(b) is amended by adding at
the end the following new paragraph:
‘‘(5) For the recovery of overpayments of benefits
under this title from benefits payable under title II, see
section 1145.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act and shall apply to overpayments outstanding
on or after such date.
SEC. 217. REGULATIONS.
Within 3 months after the date of the enactment of
this Act, the Commissioner of Social Security shall pre-
scribe such regulations as may be necessary to implement
the amendments made by this subtitle.
216
Subtitle C—State Supplementation
Programs
SEC. 221. REPEAL OF MAINTENANCE OF EFFORT REQUIRE-
MENTS APPLICABLE TO OPTIONAL STATE
PROGRAMS FOR SUPPLEMENTATION OF SSI
BENEFITS.
Section 1618 (42 U.S.C. 1382g) is hereby repealed.
Subtitle 
D—Studies 
Regarding
Supplemental Security Income
Program
SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECU-
RITY INCOME PROGRAM.
Title XVI (42 U.S.C. 1381 et seq.), as amended by
section 201(c), is amended by adding at the end the fol-
lowing new section:
‘‘ANNUAL REPORT ON PROGRAM
‘‘SEC. 1637. (a) Not later than May 30 of each year,
the Commissioner of Social Security shall prepare and de-
liver a report annually to the President and the Congress
regarding the program under this title, including—
‘‘(1) a comprehensive description of the pro-
gram;
‘‘(2) historical and current data on allowances
and denials, including number of applications and
allowance rates for initial determinations, reconsid-
217
eration determinations, administrative law judge
hearings, appeals council reviews, and Federal court
decisions;
‘‘(3) historical and current data on characteris-
tics of recipients and program costs, by recipient
group (aged, blind, disabled adults, and disabled
children);
‘‘(4) projections of future number of recipients
and program costs, through at least 25 years;
‘‘(5) number of redeterminations and continu-
ing disability reviews, and the outcomes of such re-
determinations and reviews;
‘‘(6) data on the utilization of work incentives;
‘‘(7) detailed information on administrative and
other program operation costs;
‘‘(8) summaries of relevant research undertaken
by the Social Security Administration, or by other
researchers;
‘‘(9) State supplementation program operations;
‘‘(10) a historical summary of statutory
changes to this title; and
‘‘(11) such other information as the Commis-
sioner deems useful.
‘‘(b) Each member of the Social Security Advisory
Board shall be permitted to provide an individual report,
218
or a joint report if agreed, of views of the program under
this title, to be included in the annual report required
under this section.’’.
SEC. 232. STUDY OF DISABILITY DETERMINATION PROC-
ESS.
(a) IN GENERAL.—Not later than 90 days after the
date of the enactment of this Act, and from funds other-
wise appropriated, the Commissioner of Social Security
shall make arrangements with the National Academy of
Sciences, or other independent entity, to conduct a study
of the disability determination process under titles II and
XVI of the Social Security Act. This study shall be under-
taken in consultation with professionals representing ap-
propriate disciplines.
(b) STUDY COMPONENTS.—The study described in
subsection (a) shall include—
(1) an initial phase examining the appropriate-
ness of, and making recommendations regarding—
(A) the definitions of disability in effect on
the date of the enactment of this Act and the
advantages and disadvantages of alternative
definitions; and
(B) the operation of the disability deter-
mination process, including the appropriate
method of performing comprehensive assess-
219
ments of individuals under age 18 with physical
and mental impairments;
(2) a second phase, which may be concurrent
with the initial phase, examining the validity, reli-
ability, and consistency with current scientific knowl-
edge of the standards and individual listings in the
Listing of Impairments set forth in appendix 1 of
subpart P of part 404 of title 20, Code of Federal
Regulations, and of related evaluation procedures as
promulgated by the Commissioner of Social Security;
and
(3) such other issues as the applicable entity
considers appropriate.
(c) REPORTS AND REGULATIONS.—
(1) REPORTS.—The Commissioner of Social Se-
curity shall request the applicable entity, to submit
an interim report and a final report of the findings
and recommendations resulting from the study de-
scribed in this section to the President and the Con-
gress not later than 18 months and 24 months, re-
spectively, from the date of the contract for such
study, and such additional reports as the Commis-
sioner deems appropriate after consultation with the
applicable entity.
220
(2) REGULATIONS.—The Commissioner of So-
cial Security shall review both the interim and final
reports, and shall issue regulations implementing
any necessary changes following each report.
SEC. 233. STUDY BY GENERAL ACCOUNTING OFFICE.
Not later than January 1, 1999, the Comptroller
General of the United States shall study and report on—
(1) the impact of the amendments made by,
and the provisions of, this title on the supplemental
security income program under title XVI of the So-
cial Security Act; and
(2) extra expenses incurred by families of chil-
dren receiving benefits under such title that are not
covered by other Federal, State, or local programs.
Subtitle E—National Commission
on the Future of Disability
SEC. 241. ESTABLISHMENT.
There is established a commission to be known as the
National Commission on the Future of Disability (referred
to in this subtitle as the ‘‘Commission’’).
SEC. 242. DUTIES OF THE COMMISSION.
(a) IN GENERAL.—The Commission shall develop
and carry out a comprehensive study of all matters related
to the nature, purpose, and adequacy of all Federal pro-
grams serving individuals with disabilities. In particular,
221
the Commission shall study the disability insurance pro-
gram under title II of the Social Security Act and the sup-
plemental security income disability program under title
XVI of such Act.
(b) MATTERS STUDIED.—The Commission shall pre-
pare an inventory of Federal programs serving individuals
with disabilities, and shall examine—
(1) trends and projections regarding the size
and characteristics of the population of individuals
with disabilities, and the implications of such analy-
ses for program planning;
(2) the feasibility and design of performance
standards for the Nation’s disability programs;
(3) the adequacy of Federal efforts in rehabili-
tation research and training, and opportunities to
improve the lives of individuals with disabilities
through all manners of scientific and engineering re-
search; and
(4) the adequacy of policy research available to
the Federal Government, and what actions might be
undertaken to improve the quality and scope of such
research.
(c) RECOMMENDATIONS.—The Commission shall
submit to the appropriate committees of the Congress and
222
to the President recommendations and, as appropriate,
proposals for legislation, regarding—
(1) which (if any) Federal disability programs
should be eliminated or augmented;
(2) what new Federal disability programs (if
any) should be established;
(3) the suitability of the organization and loca-
tion of disability programs within the Federal Gov-
ernment;
(4) other actions the Federal Government
should take to prevent disabilities and disadvantages
associated with disabilities; and
(5) such other matters as the Commission con-
siders appropriate.
SEC. 243. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—
(1) IN
GENERAL.—The Commission shall be
composed of 15 members, of whom—
(A) five shall be appointed by the Presi-
dent, of whom not more than 3 shall be of the
same major political party;
(B) three shall be appointed by the Major-
ity Leader of the Senate;
(C) two shall be appointed by the Minority
Leader of the Senate;
223
(D) three shall be appointed by the Speak-
er of the House of Representatives; and
(E) two shall be appointed by the Minority
Leader of the House of Representatives.
(2) REPRESENTATION.—The Commission mem-
bers shall be chosen based on their education, train-
ing, or experience. In appointing individuals as
members of the Commission, the President and the
Majority and Minority Leaders of the Senate and
the Speaker and Minority Leader of the House of
Representatives shall seek to ensure that the mem-
bership of the Commission reflects the general inter-
ests of the business and taxpaying community and
the diversity of individuals with disabilities in the
United States.
(b) COMPTROLLER
GENERAL.—The Comptroller
General of the United States shall advise the Commission
on the methodology and approach of the study of the Com-
mission.
(c) TERM OF APPOINTMENT.—The members shall
serve on the Commission for the life of the Commission.
(d) MEETINGS.—The Commission shall locate its
headquarters in the District of Columbia, and shall meet
at the call of the Chairperson, but not less than 4 times
each year during the life of the Commission.
224
(e) QUORUM.—Ten members of the Commission shall
constitute a quorum, but a lesser number may hold hear-
ings.
(f) CHAIRPERSON
AND VICE CHAIRPERSON.—Not
later than 15 days after the members of the Commission
are appointed, such members shall designate a Chair-
person and Vice Chairperson from among the members of
the Commission.
(g) CONTINUATION OF MEMBERSHIP.—If a member
of the Commission becomes an officer or employee of any
government after appointment to the Commission, the in-
dividual may continue as a member until a successor mem-
ber is appointed.
(h) VACANCIES.—A vacancy on the Commission shall
be filled in the manner in which the original appointment
was made not later than 30 days after the Commission
is given notice of the vacancy.
(i) COMPENSATION.—Members of the Commission
shall receive no additional pay, allowances, or benefits by
reason of their service on the Commission.
(j) TRAVEL EXPENSES.—Each member of the Com-
mission shall receive travel expenses, including per diem
in lieu of subsistence, in accordance with sections 5702
and 5703 of title 5, United States Code.
225
SEC. 244. STAFF AND SUPPORT SERVICES.
(a) DIRECTOR.—
(1) APPOINTMENT.—Upon consultation with
the members of the Commission, the Chairperson
shall appoint a Director of the Commission.
(2) COMPENSATION.—The Director shall be
paid the rate of basic pay for level V of the Execu-
tive Schedule.
(b) STAFF.—With the approval of the Commission,
the Director may appoint such personnel as the Director
considers appropriate.
(c) APPLICABILITY OF CIVIL SERVICE LAWS.—The
staff of the Commission shall be appointed without regard
to the provisions of title 5, United States Code, governing
appointments in the competitive service, and shall be paid
without regard to the provisions of chapter 51 and sub-
chapter III of chapter 53 of such title relating to classi-
fication and General Schedule pay rates.
(d) EXPERTS
AND CONSULTANTS.—With the ap-
proval of the Commission, the Director may procure tem-
porary and intermittent services under section 3109(b) of
title 5, United States Code.
(e) STAFF OF FEDERAL AGENCIES.—Upon the re-
quest of the Commission, the head of any Federal agency
may detail, on a reimbursable basis, any of the personnel
226
of such agency to the Commission to assist in carrying
out the duties of the Commission under this subtitle.
(f) OTHER RESOURCES.—The Commission shall have
reasonable access to materials, resources, statistical data,
and other information from the Library of Congress and
agencies and elected representatives of the executive and
legislative branches of the Federal Government. The
Chairperson of the Commission shall make requests for
such access in writing when necessary.
(g) PHYSICAL FACILITIES.—The Administrator of
the General Services Administration shall locate suitable
office space for the operation of the Commission. The fa-
cilities shall serve as the headquarters of the Commission
and shall include all necessary equipment and incidentals
required for proper functioning of the Commission.
SEC. 245. POWERS OF COMMISSION.
(a) HEARINGS.—The Commission may conduct pub-
lic hearings or forums at the discretion of the Commission,
at any time and place the Commission is able to secure
facilities and witnesses, for the purpose of carrying out
the duties of the Commission under this subtitle.
(b) DELEGATION OF AUTHORITY.—Any member or
agent of the Commission may, if authorized by the Com-
mission, take any action the Commission is authorized to
take by this section.
227
(c) INFORMATION.—The Commission may secure di-
rectly from any Federal agency information necessary to
enable the Commission to carry out its duties under this
subtitle. Upon request of the Chairperson or Vice Chair-
person of the Commission, the head of a Federal agency
shall furnish the information to the Commission to the ex-
tent permitted by law.
(d) GIFTS, BEQUESTS, AND DEVISES.—The Commis-
sion may accept, use, and dispose of gifts, bequests, or
devises of services or property, both real and personal, for
the purpose of aiding or facilitating the work of the Com-
mission. Gifts, bequests, or devises of money and proceeds
from sales of other property received as gifts, bequests,
or devises shall be deposited in the Treasury and shall be
available for disbursement upon order of the Commission.
(e) MAILS.—The Commission may use the United
States mails in the same manner and under the same con-
ditions as other Federal agencies.
SEC. 246. REPORTS.
(a) INTERIM REPORT.—Not later than 1 year prior
to the date on which the Commission terminates pursuant
to section 247, the Commission shall submit an interim
report to the President and to the Congress. The interim
report shall contain a detailed statement of the findings
and conclusions of the Commission, together with the
228
Commission’s recommendations for legislative and admin-
istrative action, based on the activities of the Commission.
(b) FINAL REPORT.—Not later than the date on
which the Commission terminates, the Commission shall
submit to the Congress and to the President a final report
containing—
(1) a detailed statement of final findings, con-
clusions, and recommendations; and
(2) an assessment of the extent to which rec-
ommendations of the Commission included in the in-
terim report under subsection (a) have been imple-
mented.
(c) PRINTING AND PUBLIC DISTRIBUTION.—Upon
receipt of each report of the Commission under this sec-
tion, the President shall—
(1) order the report to be printed; and
(2) make the report available to the public upon
request.
SEC. 247. TERMINATION.
The Commission shall terminate on the date that is
2 years after the date on which the members of the Com-
mission have met and designated a Chairperson and Vice
Chairperson.
229
SEC. 248. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums
as are necessary to carry out the purposes of the Commis-
sion.
Subtitle F—Retirement Age
Eligibility
SEC. 251. ELIGIBILITY FOR SUPPLEMENTAL SECURITY IN-
COME BENEFITS BASED ON SOCIAL SECU-
RITY RETIREMENT AGE.
(a) IN GENERAL.—Section 1614(a)(1)(A) (42 U.S.C.
1382C(a)(1)(A)) is amended by striking ‘‘is 65 years of
age or older,’’ and inserting ‘‘has attained retirement
age.’’.
(b) RETIREMENT AGE DEFINED.—Section 1614 (42
U.S.C. 1382c) is amended by adding at the end the follow-
ing new subsection:
‘‘Retirement Age
‘‘(g) For purposes of this title, the term ‘‘retirement
age’’ has the meaning given such term by section 216(l)(1)
with respect to individuals entitled to old-age insurance.’’.
(c) CONFORMING
AMENDMENTS.—Sections 1601,
1612(b)(4), 1615(a)(1), and 1620(b)(2) (42 U.S.C. 1381,
1382a(b)(4), 1382d(a)(1), and 1382i(b)(2)) are amended
by striking ‘‘age 65’’ each place it appears and inserting
‘‘retirement age’’.
230
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
TITLE III—CHILD SUPPORT
SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in
this title an amendment is expressed in terms of an
amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that sec-
tion or other provision of the Social Security Act.
Subtitle A—Eligibility for Services;
Distribution of Payments
SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUP-
PORT ENFORCEMENT SERVICES.
(a) STATE PLAN REQUIREMENTS.—Section 454 (42
U.S.C. 654) is amended—
(1) by striking paragraph (4) and inserting the
following new paragraph:
‘‘(4) provide that the State will—
‘‘(A) provide services relating to the estab-
lishment of paternity or the establishment,
modification, or enforcement of child support
obligations, as appropriate, under the plan with
respect to—
231
‘‘(i) each child for whom (I) assist-
ance is provided under the State program
funded under part A of this title, (II) ben-
efits or services for foster care mainte-
nance are provided under the State pro-
gram funded under part E of this title,
(III) medical assistance is provided under
the State plan under title XV, or (IV)
medical assistance is provided under the
State plan approved under title XIX, un-
less, in accordance with paragraph (29),
good cause and other exceptions exist;
‘‘(ii) any other child, if an individual
applies for such services with respect to
the child; and
‘‘(B) enforce any support obligation estab-
lished with respect to—
‘‘(i) a child with respect to whom the
State provides services under the plan; or
‘‘(ii) the custodial parent of such a
child.’’; and
(2) in paragraph (6)—
(A) by striking ‘‘provide that’’ and insert-
ing ‘‘provide that—’’;
232
(B) by striking subparagraph (A) and in-
serting the following new subparagraph:
‘‘(A) services under the plan shall be made
available to residents of other States on the
same terms as to residents of the State submit-
ting the plan;’’;
(C) in subparagraph (B), by inserting ‘‘on
individuals not receiving assistance under any
State program funded under part A’’ after
‘‘such services shall be imposed’’;
(D) in each of subparagraphs (B), (C),
(D), and (E)—
(i) by indenting the subparagraph in
the same manner as, and aligning the left
margin of the subparagraph with the left
margin of, the matter inserted by subpara-
graph (B) of this paragraph; and
(ii) by striking the final comma and
inserting a semicolon; and
(E) in subparagraph (E), by indenting
each of clauses (i) and (ii) 2 additional ems.
(b) CONTINUATION
OF SERVICES
FOR FAMILIES
CEASING TO RECEIVE ASSISTANCE UNDER THE STATE
PROGRAM FUNDED UNDER PART A.—Section 454 (42
U.S.C. 654) is amended—
233
(1) by striking ‘‘and’’ at the end of paragraph
(23);
(2) by striking the period at the end of para-
graph (24) and inserting ‘‘; and’’; and
(3) by adding after paragraph (24) the follow-
ing new paragraph:
‘‘(25) provide that if a family with respect to
which services are provided under the plan ceases to
receive assistance under the State program funded
under part A, the State shall provide appropriate no-
tice to the family and continue to provide such serv-
ices, subject to the same conditions and on the same
basis as in the case of other individuals to whom
services are furnished under the plan, except that an
application or other request to continue services
shall not be required of such a family and paragraph
(6)(B) shall not apply to the family.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 452(b) (42 U.S.C. 652(b)) is
amended by 
striking 
‘‘454(6)’’ 
and 
inserting
‘‘454(4)’’.
(2) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each
place it appears and inserting ‘‘454(4)(A)(ii)’’.
234
(3) 
Section 
466(a)(3)(B) 
(42 
U.S.C.
666(a)(3)(B)) is amended by striking ‘‘in the case of
overdue support which a State has agreed to collect
under section 454(6)’’ and inserting ‘‘in any other
case’’.
(4) Section 466(e) (42 U.S.C. 666(e)) is
amended by striking ‘‘paragraph (4) or (6) of sec-
tion 454’’ and inserting ‘‘section 454(4)’’.
SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLEC-
TIONS.
(a) IN GENERAL.—Section 457 (42 U.S.C. 657) is
amended to read as follows:
‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.
‘‘(a) IN GENERAL.—Subject to subsection (e), an
amount collected on behalf of a family as support by a
State pursuant to a plan approved under this part shall
be distributed as follows:
‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the
case of a family receiving assistance from the State,
the State shall—
‘‘(A) pay to the Federal Government the
Federal share of the amount so collected; and
‘‘(B) retain, or distribute to the family, the
State share of the amount so collected.
235
‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS-
SISTANCE.—In the case of a family that formerly re-
ceived assistance from the State:
‘‘(A) CURRENT SUPPORT PAYMENTS.—To
the extent that the amount so collected does not
exceed the amount required to be paid to the
family for the month in which collected, the
State shall distribute the amount so collected to
the family.
‘‘(B) PAYMENTS OF ARREARAGES.—To the
extent that the amount so collected exceeds the
amount required to be paid to the family for
the month in which collected, the State shall
distribute the amount so collected as follows:
‘‘(i) DISTRIBUTION
OF
ARREARAGES
THAT
ACCRUED
AFTER
THE
FAMILY
CEASED TO RECEIVE ASSISTANCE.—
‘‘(I) PRE-OCTOBER 1997.—Except
as provided in subclause (II), the pro-
visions of this section (other than sub-
section (b)(1)) as in effect and applied
on the day before the date of the en-
actment of section 302 of the Per-
sonal Responsibility and Work Oppor-
tunity Act of 1996 shall apply with
236
respect to the distribution of support
arrearages that—
‘‘(aa) accrued after the fam-
ily ceased to receive assistance,
and
‘‘(bb) are collected before
October 1, 1997.
‘‘(II) POST-SEPTEMBER
1997.—
With respect to the amount so col-
lected on or after October 1, 1997 (or
before such date, at the option of the
State)—
‘‘(aa) IN
GENERAL.—The
State shall first distribute the
amount so collected (other than
any amount described in clause
(iv)) to the family to the extent
necessary to satisfy any support
arrearages with respect to the
family that accrued after the
family ceased to receive assist-
ance from the State.
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR
ASSISTANCE
PROVIDED
TO
THE
FAMILY.—
237
After the application of division
(aa) and clause (ii)(II)(aa) with
respect to the amount so col-
lected, the State shall retain the
State share of the amount so col-
lected, and pay to the Federal
Government the Federal share
(as defined in subsection (c)(2))
of the amount so collected, but
only to the extent necessary to
reimburse amounts paid to the
family as assistance by the State.
‘‘(cc) DISTRIBUTION OF THE
REMAINDER
TO
THE
FAMILY.—
To the extent that neither divi-
sion (aa) nor division (bb) applies
to the amount so collected, the
State shall distribute the amount
to the family.
‘‘(ii) DISTRIBUTION OF ARREARAGES
THAT ACCRUED BEFORE THE FAMILY RE-
CEIVED ASSISTANCE.—
‘‘(I) PRE-OCTOBER 2000.—Except
as provided in subclause (II), the pro-
visions of this section (other than sub-
238
section (b)(1)) as in effect and applied
on the day before the date of the en-
actment of section 302 of the Per-
sonal Responsibility and Work Oppor-
tunity Act of 1996 shall apply with
respect to the distribution of support
arrearages that—
‘‘(aa) accrued before the
family received assistance, and
‘‘(bb) are collected before
October 1, 2000.
‘‘(II) POST-SEPTEMBER
2000.—
Unless, based on the report required
by paragraph (4), the Congress deter-
mines otherwise, with respect to the
amount so collected on or after Octo-
ber 1, 2000 (or before such date, at
the option of the State)—
‘‘(aa) IN
GENERAL.—The
State shall first distribute the
amount so collected (other than
any amount described in clause
(iv)) to the family to the extent
necessary to satisfy any support
arrearages with respect to the
239
family that accrued before the
family received assistance from
the State.
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR
ASSISTANCE
PROVIDED
TO
THE
FAMILY.—
After the application of clause
(i)(II)(aa) and division (aa) with
respect to the amount so col-
lected, the State shall retain the
State share of the amount so col-
lected, and pay to the Federal
Government the Federal share
(as defined in subsection (c)(2))
of the amount so collected, but
only to the extent necessary to
reimburse amounts paid to the
family as assistance by the State.
‘‘(cc) DISTRIBUTION OF THE
REMAINDER
TO
THE
FAMILY.—
To the extent that neither divi-
sion (aa) nor division (bb) applies
to the amount so collected, the
State shall distribute the amount
to the family.
240
‘‘(iii) DISTRIBUTION OF ARREARAGES
THAT ACCRUED WHILE THE FAMILY RE-
CEIVED
ASSISTANCE.—In the case of a
family described in this subparagraph, the
provisions of paragraph (1) shall apply
with respect to the distribution of support
arrearages that accrued while the family
received assistance.
‘‘(iv) AMOUNTS
COLLECTED
PURSU-
ANT
TO
SECTION 464.—Notwithstanding
any other provision of this section, any
amount of support collected pursuant to
section 464 shall be retained by the State
to the extent past-due support has been as-
signed to the State as a condition of re-
ceiving assistance from the State, up to the
amount necessary to reimburse the State
for amounts paid to the family as assist-
ance by the State. The State shall pay to
the Federal Government the Federal share
of the amounts so retained. To the extent
the amount collected pursuant to section
464 exceeds the amount so retained, the
State shall distribute the excess to the
family.
241
‘‘(v) ORDERING RULES FOR DISTRIBU-
TIONS.—For purposes of this subpara-
graph, unless an earlier effective date is re-
quired by this section, effective October 1,
2000, the State shall treat any support ar-
rearages collected as accruing in the fol-
lowing order:
‘‘(I) To the period after the fam-
ily ceased to receive assistance.
‘‘(II) To the period before the
family received assistance.
‘‘(III) To the period while the
family was receiving assistance.
‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST-
ANCE.—In the case of any other family, the State
shall distribute the amount so collected to the fam-
ily.
‘‘(4) STUDY AND REPORT.—Not later than Oc-
tober 1, 1998, the Secretary shall report to the Con-
gress the Secretary’s findings with respect to—
‘‘(A) whether the distribution of post-as-
sistance arrearages to families has been effec-
tive in moving people off of welfare and keeping
them off of welfare;
242
‘‘(B) whether early implementation of a
pre-assistance arrearage program by some
States has been effective in moving people off
of welfare and keeping them off of welfare;
‘‘(C) what the overall impact has been of
the amendments made by the Personal Respon-
sibility and Work Opportunity Act of 1996 with
respect to child support enforcement in moving
people off of welfare and keeping them off of
welfare; and
‘‘(D) based on the information and data
the Secretary has obtained, what changes, if
any, should be made in the policies related to
the distribution of child support arrearages.
‘‘(b) CONTINUATION OF ASSIGNMENTS.—Any rights
to support obligations, which were assigned to a State as
a condition of receiving assistance from the State under
part A and which were in effect on the day before the
date of the enactment of the Personal Responsibility and
Work Opportunity Act of 1996, shall remain assigned
after such date.
‘‘(c) DEFINITIONS.—As used in subsection (a):
‘‘(1) ASSISTANCE.—The term ‘assistance from
the State’ means—
243
‘‘(A) assistance under the State program
funded under part A or under the State plan
approved under part A of this title (as in effect
on the day before the date of the enactment of
the Personal Responsibility and Work Oppor-
tunity Act of 1996); or
‘‘(B) benefits under the State plan ap-
proved under part E of this title (as in effect
on the day before the date of the enactment of
the Personal Responsibility and Work Oppor-
tunity Act of 1996).
‘‘(2) FEDERAL
SHARE.—The term ‘Federal
share’ means that portion of the amount collected
resulting from the application of the Federal medical
assistance percentage in effect for the fiscal year in
which the amount is collected.
‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT-
AGE.—The term ‘Federal medical assistance per-
centage’ means—
‘‘(A) the Federal medical assistance per-
centage (as defined in section 1118), in the case
of Puerto Rico, the Virgin Islands, Guam, and
American Samoa; or
244
‘‘(B) the Federal medical assistance per-
centage (as defined in section 1905(b)) in the
case of any other State.
‘‘(4) STATE
SHARE.—The term ‘State share’
means 100 percent minus the Federal share.
‘‘(d) HOLD HARMLESS PROVISION.—If the amounts
collected which could be retained by the State in the fiscal
year (to the extent necessary to reimburse the State for
amounts paid to families as assistance by the State) are
less than the State share of the amounts collected in fiscal
year 1995 (determined in accordance with section 457 as
in effect on the day before the date of the enactment of
the Personal Responsibility and Work Opportunity Act of
1996), the State share for the fiscal year shall be an
amount equal to the State share in fiscal year 1995.
‘‘(e) GAP PAYMENTS NOT SUBJECT TO DISTRIBU-
TION UNDER THIS SECTION.—This section shall not
apply to any amount collected on behalf of a family as
support by a State pursuant to a plan approved under this
part if such amount would have been distributed to the
family by the State under section 402(a)(28), as in effect
and applied on the day before the date of the enactment
of section 302 of the Personal Responsibility and Work
Opportunity Act of 1996.’’.
(b) CONFORMING AMENDMENTS.—
245
(1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is
amended by striking ‘‘section 457(b)(4) or (d)(3)’’
and inserting ‘‘section 457’’.
(2) Section 454 (42 U.S.C. 654) is amended—
(A) in paragraph (11)—
(i) by striking ‘‘(11)’’ and inserting
‘‘(11)(A)’’; and
(ii) by inserting after the semicolon
‘‘and’’; and
(B) by redesignating paragraph (12) as
subparagraph (B) of paragraph (11).
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall be effective on July 1, 1996, or earlier at the
State’s option.
(2) CONFORMING AMENDMENTS.—The amend-
ments made by subsection (b)(2) shall become effec-
tive on the date of the enactment of this Act.
SEC. 303. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by section 301(b) of this Act,
is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(24);
246
(2) by striking the period at the end of para-
graph (25) and inserting ‘‘; and’’; and
(3) by adding after paragraph (25) the follow-
ing new paragraph:
‘‘(26) will have in effect safeguards, applicable
to all confidential information handled by the State
agency, that are designed to protect the privacy
rights of the parties, including—
‘‘(A) safeguards against unauthorized use
or disclosure of information relating to proceed-
ings or actions to establish paternity, or to es-
tablish or enforce support;
‘‘(B) prohibitions against the release of in-
formation on the whereabouts of 1 party to an-
other party against whom a protective order
with respect to the former party has been en-
tered; and
‘‘(C) prohibitions against the release of in-
formation on the whereabouts of 1 party to an-
other party if the State has reason to believe
that the release of the information may result
in physical or emotional harm to the former
party.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective on October 1, 1997.
247
SEC. 304. RIGHTS TO NOTIFICATION OF HEARINGS.
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as
amended by section 302(b)(2) of this Act, is amended by
inserting after paragraph (11) the following new para-
graph:
‘‘(12) provide for the establishment of proce-
dures to require the State to provide individuals who
are applying for or receiving services under the State
plan, or who are parties to cases in which services
are being provided under the State plan—
‘‘(A) with notice of all proceedings in
which support obligations might be established
or modified; and
‘‘(B) with a copy of any order establishing
or modifying a child support obligation, or (in
the case of a petition for modification) a notice
of determination that there should be no change
in the amount of the child support award, with-
in 14 days after issuance of such order or de-
termination;’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective on October 1, 1997.
248
Subtitle B—Locate and Case
Tracking
SEC. 311. STATE CASE REGISTRY.
Section 454A, as added by section 344(a)(2) of this
Act, is amended by adding at the end the following new
subsections:
‘‘(e) STATE CASE REGISTRY.—
‘‘(1) CONTENTS.—The automated system re-
quired by this section shall include a registry (which
shall be known as the ‘State case registry’) that con-
tains records with respect to—
‘‘(A) each case in which services are being
provided by the State agency under the State
plan approved under this part; and
‘‘(B) each support order established or
modified in the State on or after October 1,
1998.
‘‘(2) LINKING
OF
LOCAL
REGISTRIES.—The
State case registry may be established by linking
local case registries of support orders through an
automated information network, subject to this sec-
tion.
‘‘(3) USE
OF
STANDARDIZED
DATA
ELE-
MENTS.—Such records shall use standardized data
elements for both parents (such as names, social se-
249
curity numbers and other uniform identification
numbers, dates of birth, and case identification
numbers), and contain such other information (such
as on case status) as the Secretary may require.
‘‘(4) PAYMENT RECORDS.—Each case record in
the State case registry with respect to which services
are being provided under the State plan approved
under this part and with respect to which a support
order has been established shall include a record
of—
‘‘(A) the amount of monthly (or other peri-
odic) support owed under the order, and other
amounts (including arrearages, interest or late
payment penalties, and fees) due or overdue
under the order;
‘‘(B) any amount described in subpara-
graph (A) that has been collected;
‘‘(C) the distribution of such collected
amounts;
‘‘(D) the birth date of any child for whom
the order requires the provision of support; and
‘‘(E) the amount of any lien imposed with
respect to the order pursuant to section
466(a)(4).
250
‘‘(5) UPDATING AND MONITORING.—The State
agency operating the automated system required by
this section shall promptly establish and update,
maintain, and regularly monitor, case records in the
State case registry with respect to which services are
being provided under the State plan approved under
this part, on the basis of—
‘‘(A) information on administrative actions
and administrative and judicial proceedings and
orders relating to paternity and support;
‘‘(B) information obtained from compari-
son with Federal, State, or local sources of in-
formation;
‘‘(C) information on support collections
and distributions; and
‘‘(D) any other relevant information.
‘‘(f) INFORMATION COMPARISONS AND OTHER DIS-
CLOSURES OF INFORMATION.—The State shall use the
automated system required by this section to extract infor-
mation from (at such times, and in such standardized for-
mat or formats, as may be required by the Secretary), to
share and compare information with, and to receive infor-
mation from, other data bases and information compari-
son services, in order to obtain (or provide) information
necessary to enable the State agency (or the Secretary or
251
other State or Federal agencies) to carry out this part,
subject to section 6103 of the Internal Revenue Code of
1986. Such information comparison activities shall include
the following:
‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP-
PORT
ORDERS.—Furnishing to the Federal Case
Registry of Child Support Orders established under
section 453(h) (and update as necessary, with infor-
mation including notice of expiration of orders) the
minimum amount of information on child support
cases recorded in the State case registry that is nec-
essary to operate the registry (as specified by the
Secretary in regulations).
‘‘(2) FEDERAL
PARENT
LOCATOR
SERVICE.—
Exchanging information with the Federal Parent
Locator Service for the purposes specified in section
453.
‘‘(3) TEMPORARY
FAMILY
ASSISTANCE
AND
MEDICAID AGENCIES.—Exchanging information with
State agencies (of the State and of other States) ad-
ministering programs funded under part A, pro-
grams operated under a State plan under title XV
or a State plan approved under title XIX, and other
programs designated by the Secretary, as necessary
252
to perform State agency responsibilities under this
part and under such programs.
‘‘(4) INTRASTATE AND INTERSTATE INFORMA-
TION COMPARISONS.—Exchanging information with
other agencies of the State, agencies of other States,
and interstate information networks, as necessary
and appropriate to carry out (or assist other States
to carry out) the purposes of this part.’’.
SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT
PAYMENTS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 301(b) and 303(a)
of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(25);
(2) by striking the period at the end of para-
graph (26) and inserting ‘‘; and’’; and
(3) by adding after paragraph (26) the follow-
ing new paragraph:
‘‘(27) provide that, on and after October 1,
1998, the State agency will—
‘‘(A) operate a State disbursement unit in
accordance with section 454B; and
‘‘(B) have sufficient State staff (consisting
of State employees) and (at State option) con-
253
tractors reporting directly to the State agency
to—
‘‘(i) monitor and enforce support col-
lections through the unit in cases being en-
forced by the State pursuant to section
454(4) (including carrying out the auto-
mated data processing responsibilities de-
scribed in section 454A(g)); and
‘‘(ii) take the actions described in sec-
tion 466(c)(1) in appropriate cases.’’.
(b) ESTABLISHMENT
OF
STATE
DISBURSEMENT
UNIT.—Part D of title IV (42 U.S.C. 651–669), as
amended by section 344(a)(2) of this Act, is amended by
inserting after section 454A the following new section:
‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUP-
PORT PAYMENTS.
‘‘(a) STATE DISBURSEMENT UNIT.—
‘‘(1) IN
GENERAL.—In order for a State to
meet the requirements of this section, the State
agency must establish and operate a unit (which
shall be known as the ‘State disbursement unit’) for
the collection and disbursement of payments under
support orders—
‘‘(A) in all cases being enforced by the
State pursuant to section 454(4); and
254
‘‘(B) in all cases not being enforced by the
State under this part in which the support
order is initially issued in the State on or after
January 1, 1994, and in which the wages of the
noncustodial parent are subject to withholding
pursuant to section 466(a)(8)(B).
‘‘(2) OPERATION.—The State disbursement
unit shall be operated—
‘‘(A) directly by the State agency (or 2 or
more State agencies under a regional coopera-
tive agreement), or (to the extent appropriate)
by a contractor responsible directly to the State
agency; and
‘‘(B) except in cases described in para-
graph (1)(B), in coordination with the auto-
mated system established by the State pursuant
to section 454A.
‘‘(3) 
LINKING
OF
LOCAL
DISBURSEMENT
UNITS.—The State disbursement unit may be estab-
lished by linking local disbursement units through
an automated information network, subject to this
section, if the Secretary agrees that the system will
not cost more nor take more time to establish or op-
erate than a centralized system. In addition, employ-
255
ers shall be given 1 location to which income with-
holding is sent.
‘‘(b) REQUIRED PROCEDURES.—The State disburse-
ment unit shall use automated procedures, electronic proc-
esses, and computer-driven technology to the maximum
extent feasible, efficient, and economical, for the collection
and disbursement of support payments, including proce-
dures—
‘‘(1) for receipt of payments from parents, em-
ployers, and other States, and for disbursements to
custodial parents and other obligees, the State agen-
cy, and the agencies of other States;
‘‘(2) for accurate identification of payments;
‘‘(3) to ensure prompt disbursement of the cus-
todial parent’s share of any payment; and
‘‘(4) to furnish to any parent, upon request,
timely information on the current status of support
payments under an order requiring payments to be
made by or to the parent.
‘‘(c) TIMING OF DISBURSEMENTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the State disbursement unit shall distrib-
ute all amounts payable under section 457(a) within
2 business days after receipt from the employer or
256
other source of periodic income, if sufficient infor-
mation identifying the payee is provided.
‘‘(2) PERMISSIVE
RETENTION
OF
ARREAR-
AGES.—The State disbursement unit may delay the
distribution of collections toward arrearages until
the resolution of any timely appeal with respect to
such arrearages.
‘‘(d) BUSINESS DAY DEFINED.—As used in this sec-
tion, the term ‘business day’ means a day on which State
offices are open for regular business.’’.
(c) USE OF AUTOMATED SYSTEM.—Section 454A, as
added by section 344(a)(2) and as amended by section 311
of this Act, is amended by adding at the end the following
new subsection:
‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT
PAYMENTS.—
‘‘(1) IN
GENERAL.—The State shall use the
automated system required by this section, to the
maximum extent feasible, to assist and facilitate the
collection and disbursement of support payments
through the State disbursement unit operated under
section 454B, through the performance of functions,
including, at a minimum—
257
‘‘(A) transmission of orders and notices to
employers (and other debtors) for the withhold-
ing of wages and other income—
‘‘(i) within 2 business days after re-
ceipt of notice of, and the income source
subject to, such withholding from a court,
another State, an employer, the Federal
Parent Locator Service, or another source
recognized by the State; and
‘‘(ii) using uniform formats prescribed
by the Secretary;
‘‘(B) ongoing monitoring to promptly iden-
tify failures to make timely payment of support;
and
‘‘(C) automatic use of enforcement proce-
dures (including procedures authorized pursu-
ant to section 466(c)) if payments are not time-
ly made.
‘‘(2) BUSINESS
DAY
DEFINED.—As used in
paragraph (1), the term ‘business day’ means a day
on which State offices are open for regular busi-
ness.’’.
(d) EFFECTIVE DATES.—
264
‘‘(2) NOTICE OF MATCH.—When an information
comparison conducted under paragraph (1) reveals a
match with respect to the social security number of
an individual required to provide support under a
support order, the State Directory of New Hires
shall provide the agency administering the State
plan approved under this part of the appropriate
State with the name, address, and social security
number of the employee to whom the social security
number is assigned, and the name and address of,
and identifying number assigned under section 6109
of the Internal Revenue Code of 1986 to, the em-
ployer.
‘‘(g) TRANSMISSION OF INFORMATION.—
‘‘(1) TRANSMISSION
OF
WAGE
WITHHOLDING
NOTICES TO EMPLOYERS.—Within 2 business days
after the date information regarding a newly hired
employee is entered into the State Directory of New
Hires, the State agency enforcing the employee’s
child support obligation shall transmit a notice to
the employer of the employee directing the employer
to withhold from the wages of the employee an
amount equal to the monthly (or other periodic)
child support obligation (including any past due sup-
port obligation) of the employee, unless the employ-
501
providing care to foster and adopted children
receiving assistance under this part, in ways
that increase the ability of such current or pro-
spective parents, staff members, and institu-
tions to provide support and assistance to foster
and adopted children, whether incurred directly
by the State or by contract;
‘‘(C) 50 percent of so much of such ex-
penditures as are for the planning, design, de-
velopment, or installation of statewide mecha-
nized data collection and information retrieval
systems (including 50 percent of the full
amount of expenditures for hardware compo-
nents for such systems) but only to the extent
that such systems—
‘‘(i) meet the requirements imposed
by regulations;
‘‘(ii) to the extent practicable, are ca-
pable of interfacing with the State data
collection system that collects information
relating to child abuse and neglect;
‘‘(iii) to the extent practicable, have
the capability of interfacing with, and re-
trieving information from, the State data
collection system that collects information
755
(b) STATE PLAN.—Section 202A of the Act (7 U.S.C.
612c note) is amended to read as follows:
‘‘SEC. 202A. STATE PLAN.
‘‘(a) IN GENERAL.—To receive commodities under
this Act, a State shall submit a plan of operation and ad-
ministration every 4 years to the Secretary for approval.
The plan may be amended at any time, with the approval
of the Secretary.
‘‘(b) REQUIREMENTS.—Each plan shall—
‘‘(1) designate the State agency responsible for
distributing the commodities received under this Act;
‘‘(2) set forth a plan of operation and adminis-
tration to expeditiously distribute commodities under
this Act;
‘‘(3) set forth the standards of eligibility for re-
cipient agencies; and
‘‘(4) set forth the standards of eligibility for in-
dividual or household recipients of commodities,
which shall require—
‘‘(A) individuals or households to be com-
prised of needy persons; and
‘‘(B) individual or household members to
be residing in the geographic location served by
the distributing agency at the time of applying
for assistance.