[DOCID: f:publ169.106]
[[Page 1821]]
FOSTER CARE INDEPENDENCE ACT OF 1999
[[Page 113 STAT. 1822]]
Public Law 106-169
106th Congress
An Act
To amend part E of title IV of the Social Security Act to provide States
with more funding and greater flexibility in carrying out programs
designed to help children make the transition from foster care to self-
sufficiency, and for other purposes. <<NOTE: Dec. 14, 1999 - [H.R.
3443]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Foster Care Independence
Act of 1999.>> assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short <<NOTE: 42 USC 1305 note.>> 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 recipients.
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
misleading 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
administrative processing.
Sec. 211. Annual report on amounts necessary to combat fraud.
[[Page 113 STAT. 1823]]
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 INDEPENDENT LIVING PROGRAM
Subtitle A--Improved Independent Living Program
SEC. 101. <<NOTE: 42 USC 677 note.>> IMPROVED INDEPENDENT LIVING
PROGRAM.
(a) Findings.--The Congress finds the following:
(1) States are required to make reasonable efforts to find
adoptive families for all children, including older children,
for whom reunification with their 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
enrolled in an Independent Living program designed and conducted
by State and local government to help prepare them for
employment, postsecondary education, and successful management
of adult responsibilities.
(2) Older children who continue to be in foster care as
adolescents may become eligible for Independent 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 efforts 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 adulthood; 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
[[Page 113 STAT. 1824]]
graduation and continuing, as needed, until the young adults
emancipated from foster care establish independence or reach 21
years of age.
(b) Improved Independent Living Program.--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 programs to be designed and
conducted--
``(1) to identify children who are likely to remain 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 avoidance,
nutrition education, and pregnancy prevention);
``(2) to help children who are likely to remain in foster
care until 18 years of age receive the education, training, and
services necessary to obtain employment;
``(3) to help children who are likely to remain in foster
care until 18 years of age prepare for and enter postsecondary
training and education institutions;
``(4) to provide personal and emotional support to children
aging out of foster care, through mentors and the promotion of
interactions with dedicated adults; and
``(5) to provide financial, housing, counseling, employment,
education, and other appropriate support and services to former
foster care recipients between 18 and 21 years of age to
complement their own efforts to achieve self-sufficiency and to
assure that program participants recognize and accept their
personal responsibility for preparing for and then making the
transition from adolescence to adulthood.
``(b) Applications.--
``(1) In general.--A State may apply for funds from its
allotment under subsection (c) for a period of five consecutive
fiscal years by submitting to the Secretary, in writing, a plan
that meets the requirements of paragraph (2) and the
certifications required by paragraph (3) with respect to the
plan.
``(2) State plan.--A plan meets the requirements 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
following:
``(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 children 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.
[[Page 113 STAT. 1825]]
``(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 required 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 percent 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 attained 18 years of age, and who have
not attained 21 years of age.
``(C) A certification by the chief executive officer
of the State that none of the amounts paid to the State
from its allotment under subsection (c) will be expended
for room or board for any child who has not attained 18
years of age.
``(D) A certification by the chief executive officer
of the State that the State will use training funds
provided under the program of Federal payments for
foster care and adoption assistance to provide training
to help foster parents, 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 possible,
coordinate such training with the independent living
program conducted for adolescents.
``(E) A certification by the chief executive officer
of the State that the State has consulted 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.
[[Page 113 STAT. 1826]]
``(H) A certification by the chief executive officer
of the State that the State will ensure that adolescents
participating in the program under this section
participate directly in designing their own program
activities that prepare them for independent living and
that the adolescents accept personal responsibility for
living up to their part of the program.
``(I) A certification by the chief executive officer
of the State that the State has established and will
enforce standards and procedures to prevent fraud and
abuse in the programs carried out under the plan.
``(4) Approval.--The Secretary shall approve an application
submitted by a State pursuant to paragraph (1) for a period if--
``(A) the application is submitted on or before June
30 of the calendar year in which such period begins; and
``(B) the Secretary finds that the application
contains the material required by paragraph (1).
``(5) Authority to implement certain amendments;
notification.--A State with an application approved under
paragraph (4) may implement any amendment to the plan contained
in the application if the application, incorporating the
amendment, would be approvable under paragraph (4).
Within <<NOTE: Deadline.>> 30 days after a State implements any
such amendment, the State shall notify the Secretary 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 subsection (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 fiscal year for which such information
is available bears to the total number of children in foster
care in all States for such most recent fiscal year, as adjusted
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 greater of $500,000 or the amount
payable to the State under this section for fiscal year
1998, an additional amount equal to the difference
between such allotment and such greater amount.
``(B) Ratable reduction of certain allotments.--In
the case of a State not described 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 determined
under subparagraph (A) of this paragraph 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
[[Page 113 STAT. 1827]]
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 reasonably 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 fiscal year or in the succeeding fiscal year.
``(e) Penalties.--
``(1) Use of grant in violation of this part.--If the
Secretary is made aware, by an audit conducted under chapter 75
of title 31, United States Code, or by any other means, that a
program 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 reporting 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 noncompliance.--The
Secretary shall assess penalties under this subsection based on
the degree of noncompliance.
``(f ) Data Collection and Performance Measurement.--
``(1) In general.--The Secretary, in consultation with State
and local public officials responsible for administering
independent living and other child welfare programs, child
welfare advocates, Members of Congress, youth service providers,
and researchers, shall--
``(A) develop outcome measures (including measures
of educational attainment, high school diploma,
employment, avoidance of dependency, homelessness,
nonmarital childbirth, incarceration, 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 section;
``(ii) the type and quantity of services being
provided; and
``(iii) State performance on the outcome
measures; and
[[Page 113 STAT. 1828]]
``(C) develop and implement a plan to collect the
needed information beginning with the second fiscal year
beginning after the date of the enactment of this
section.
``(2) Report <<NOTE: Deadline.>> to the congress.--Within 12
months after the date of the enactment of this section, the
Secretary shall submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the
Senate a report detailing the plans and timetable for collecting
from the States the information described in paragraph (1) and a
proposal to impose penalties consistent with paragraph (e)(2) on
States that do not report data.
``(g) Evaluations.--
``(1) In general.--The Secretary shall conduct evaluations
of such State programs funded under this section as the
Secretary deems to be innovative or of potential national
significance. The evaluation of any such program shall include
information on the effects of the program on education,
employment, and personal development. To the maximum extent
practicable, the evaluations shall be based on rigorous
scientific standards including random 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, contract, or
cooperative agreement.
``(2) Funding of evaluations.--The Secretary shall reserve
1.5 percent of the amount specified in subsection (h) for a
fiscal year to carry out, during the fiscal year, evaluation,
technical assistance, 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 Appropriations.--To carry out
this section and for payments to States under section 474(a)(4), there
are authorized to be appropriated to the Secretary $140,000,000 for each
fiscal year.''.
(c) Payments to States.--Section 474(a)(4) of such Act (42 U.S.C.
674(a)(4)) is amended to read as follows:
``(4) the lesser of--
``(A) 80 percent of the amount (if any) by which--
``(i) the total amount expended by the State
during the fiscal year in which the quarter occurs
to carry out programs in accordance with the State
application approved 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 paragraph for all prior quarters in the
fiscal year.''.
(d) Regulations.--Not <<NOTE: Deadline. 42 USC 677 note.>> 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.
42 USC 677
note.
[[Page 113 STAT. 1829]]
(e) Sense of the Congress.--It is the sense of the Congress that
States should provide medical assistance under the State plan approved
under title XIX of the Social Security Act to
18-, 19-, and 20-year-olds who have been emancipated from foster care.
Subtitle B--Related Foster Care Provision
SEC. 111. INCREASE IN AMOUNT OF ASSETS ALLOWABLE FOR CHILDREN IN FOSTER
CARE.
Section 472(a) of the Social Security Act (42 U.S.C. 672(a)) is
amended by adding at the end the following: ``In determining whether a
child would have received aid under a State plan approved under section
402 (as in effect on July 16, 1996), a child whose resources (determined
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 combined 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 paragraph (23) and
inserting ``; and''; and
(3) by adding at the end the following:
``(24) include a certification that, before a child in
foster care under the responsibility of the State is placed with
prospective foster parents, the prospective foster parents will
be prepared adequately with the appropriate knowledge and skills
to provide for the needs of the child, and that such preparation
will be continued, as necessary, after the placement of the
child.''.
(b) Effective <<NOTE: 42 USC 671 note.>> 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 subclause
(XIII);
(B) by adding ``or'' at the end of subclause (XIV);
and
(C) by adding at the end the following new
subclause:
``(XV) who are independent foster
care adolescents (as defined in section
1905(v)(1)), or who are within 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:
[[Page 113 STAT. 1830]]
``(v)(1) For purposes of this title, the term `independent foster
care adolescent' means an individual--
``(A) who is under 21 years of age;
``(B) who, on the individual's 18th birthday, was in foster
care under the responsibility of a State; and
``(C) whose assets, resources, and income do not exceed such
levels (if any) as the State may establish consistent with
paragraph (2).
``(2) The levels established by a State under paragraph (1)(C) may
not be less than the corresponding levels applied by the State under
section 1931(b).
``(3) A State may limit the eligibility of independent foster care
adolescents under section 1902(a)(10)(A)(ii)(XV) to those individuals
with respect to whom foster care maintenance payments or independent
living services were furnished under a program funded under part E of
title IV before the date the individuals attained 18 years of age.''.
(b) Effective <<NOTE: Applicability. 42 USC 1396a note.>> Date.--The
amendments made by subsection (a) apply to medical assistance for items
and services furnished on or after October 1, 1999.
42 USC
1396a
note.
(c) Contingency <<NOTE: 42 USC 1396a note.>> 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 enactment 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) <<NOTE: 42 USC 1396a.>> 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) <<NOTE: 42 USC 1396d.>> 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 adding at the end the following:
``( j) Supplemental Grants.--
``(1) In general.--Subject to the availability of such
amounts as may be provided in advance in appropriations Acts, in
addition to any amount otherwise 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--
[[Page 113 STAT. 1831]]
``(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 absence of subsection (d)(2) if
sufficient funds had been available for the
payment; exceeds
``(ii) the amount that, before the enactment
of this subsection, was payable to the State under
this section during fiscal year 1999 (on such
basis); or
``(B) the amount that bears the same ratio to the
dollar amount specified in paragraph (2) as the amount
described by subparagraph (A) for the State bears to the
aggregate of the amounts described by subparagraph (A)
for all States that are incentive-eligible States for
fiscal year 1998.
``(2) Funding.--$23,000,000 of the amounts appropriated
under subsection (h)(1) for fiscal year 2000 may be used for
grants under paragraph (1) of this subsection.''.
(b) Limitation on Authorization of Appropriations.--Section
473A(h)(1) of the Social Security Act (42 U.S.C. 673b(h)(1)) is amended
to read as follows:
``(1) In general.--For grants under subsection (a), there
are authorized to be appropriated to the Secretary--
``(A) $20,000,000 for fiscal year 1999;
``(B) $43,000,000 for fiscal year 2000; and
``(C) $20,000,000 for each of fiscal years 2001
through 2003.''.
TITLE II--SSI FRAUD PREVENTION
Subtitle A--Fraud Prevention and Related Provisions
SEC. 201. <<NOTE: Records.>> LIABILITY OF REPRESENTATIVE PAYEES FOR
OVERPAYMENTS TO DECEASED RECIPIENTS.
(a) Amendment to Title II.--Section 204(a)(2) of the Social Security
Act (42 U.S.C. 404(a)(2)) is amended by adding at the end the following
new sentence: ``If any payment of more than the correct amount is made
to a representative payee on behalf of an individual after the
individual's death, the representative payee shall be liable for the
repayment of the overpayment, and the Commissioner of Social Security
shall establish an overpayment control record under the social security
account number of the representative payee.''.
(b) Amendment to Title XVI.--Section 1631(b)(2) of such Act (42
U.S.C. 1383(b)(2)) is amended by adding at the end the following new
sentence: ``If any payment of more than the correct amount is made to a
representative payee on behalf of an individual after the individual's
death, the representative payee shall be liable for the repayment of the
overpayment, and the Commissioner of Social Security shall establish an
overpayment control record under the social security account number of
the representative payee.''.
(c) Effective <<NOTE: Applicability. 42 USC 404 note.>> Date.--The
amendments made by this section shall apply to overpayments made 12
months or more after the date of the enactment of this Act.
42 USC 404
note.
[[Page 113 STAT. 1832]]
SEC. 202. RECOVERY OF OVERPAYMENTS OF SSI BENEFITS FROM LUMP SUM SSI
BENEFIT PAYMENTS.
(a) In General.--Section 1631(b)(1)(B)(ii) of the Social Security
Act (42 U.S.C. 1383(b)(1)(B)(ii)) is amended--
(1) by inserting ``monthly'' before ``benefit payments'';
and
(2) by inserting ``and in the case of an individual or
eligible spouse to whom a lump sum is payable under this title
(including under section 1616(a) of this Act or under an
agreement entered into under section 212(a) of Public Law 93-66)
shall, as at least one means of recovering such overpayment,
make the adjustment or recovery from the lump sum payment in an
amount equal to not less than the lesser of the amount of the
overpayment or 50 percent of the lump sum payment,'' before
``unless fraud''.
(b) Effective <<NOTE: Applicability. 42 USC 1383 note.>> 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 incorrectly
paid which remain outstanding on or after such date.
42 USC
1383 note.
SEC. 203. ADDITIONAL DEBT COLLECTION PRACTICES.
(a) In General.--Section 1631(b) of the Social Security 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 following:
``(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 attained 18
years of age; and
``(iii) determined by the Commissioner of Social Security,
under regulations, to be otherwise unrecoverable under this
section after such person ceases to be a beneficiary under this
title.''.
(b) Conforming Amendments.--Section 3701(d)(2) of title 31, United
States Code, is amended by striking ``section 204(f )'' and inserting
``sections 204(f ) and 1631(b)(4)''.
(c) Technical Amendments.--Section 204(f ) of the Social Security
Act (42 U.S.C. 404(f )) is amended--
(1) by striking ``3711(e)'' and inserting ``3711(f )''; and
(2) by inserting ``all'' before ``as in effect''.
(d) Effective <<NOTE: Applicability. 31 USC 3701 note.>> Date.--The
amendments made by this section shall apply to debt outstanding on or
after the date of the enactment of this Act.
31 USC
3701 note.
[[Page 113 STAT. 1833]]
SEC. 204. REQUIREMENT TO PROVIDE STATE PRISONER INFORMATION TO FEDERAL
AND FEDERALLY ASSISTED BENEFIT PROGRAMS.
Section 1611(e)(1)(I)(ii)(II) of the Social Security Act (42 U.S.C.
1382(e)(1)(I)(ii)(II)) is amended by striking ``is authorized to'' and
inserting ``shall''.
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 adding at the end the following:
``Trusts
``(e)(1) <<NOTE: Applicability.>> 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 transferred 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 individual's spouse) and the
assets of any other person, this subsection 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 established;
``(ii) whether the trustees have or exercise any discretion
under the trust;
``(iii) any restrictions on when or whether distributions
may be made from the trust; or
``(iv) any restrictions on the use of distributions from the
trust.
``(3)(A) In the case of a revocable trust established by an
individual, the corpus of the trust shall be considered a resource
available to the individual.
``(B) In the case of an irrevocable trust established by an
individual, if there are any circumstances under which payment from the
trust could be made to or for the benefit of the individual (or of the
individual's spouse), the portion of the corpus from which payment to or
for the benefit of the individual (or of 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 individual if the Commissioner
determines that such application 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 described in
subparagraph (A) or (C) of section 1917(d)(4).
``(6) For purposes of this subsection--
``(A) the term `trust' includes any legal instrument or
device that is similar to a trust;
[[Page 113 STAT. 1834]]
``(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 resource 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 of 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 subparagraph (E);
(2) by striking the period at the end of subparagraph (F)
and inserting ``; and''; and
(3) by adding at the end the following:
``(G) any earnings of, and additions to, the corpus of a
trust established by an individual (within the meaning of
section 1613(e)), of which the individual is a beneficiary, to
which section 1613(e) applies, 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 subparagraph (E);
(2) by adding ``and'' at the end of subparagraph (F); and
(3) by inserting after subparagraph (F) the following:
``(G) that, in applying eligibility criteria of the
supplemental security income program under title XVI for
purposes of determining eligibility for medical
assistance under the State plan of an individual who is
not receiving supplemental security income, the State
will disregard the provisions of section 1613(e);''.
(d) Effective <<NOTE: Applicability. 42 USC 1382a note.>> 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.
42 USC
1382a
note.
SEC. 206. DISPOSAL OF RESOURCES FOR LESS THAN FAIR MARKET VALUE UNDER
THE SSI PROGRAM.
(a) In General.--Section 1613(c) of the Social Security Act (42
U.S.C. 1382b(c)) is amended--
(1) in the caption, by striking ``Notification of Medicaid
Policy Restricting Eligibility of Institutionalized Individuals
for Benefits Based on'';
[[Page 113 STAT. 1835]]
(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 redesignated by
paragraph (4) of this subsection) the following:
``(c)(1)(A)(i) If an individual or the spouse of an individual
disposes of resources for less than fair market value on or after the
look-back date described in clause (ii)(I), the individual is ineligible
for benefits under this title for months during the period beginning on
the date described in clause (iii) and equal to the number of months
calculated as provided in clause (iv).
``(ii)(I) The look-back date described in this subclause is a date
that is 36 months before the date described in 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 benefit payable
under section 1611(b), plus the amount (if any) of the maximum
State supplementary payment corresponding to the State's payment
level applicable 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.
[[Page 113 STAT. 1836]]
``(B)(i) Notwithstanding subparagraph (A), this subsection 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 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 individual 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 described in clause
(I) or the foreclosure of payment described in clause (II) shall be
considered a transfer of resources by the individual or the individual's
spouse as of the date of the payment or foreclosure, as the case may be.
``(C) An individual shall not be ineligible for benefits under this
title by reason of the application of this paragraph 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 individual; or
``(IV) a son or daughter of the transferor (other
than a child described in subclause (II)) who was
residing in the transferor's home for a period of at
least 2 years immediately before the date the transferor
becomes an institutionalized individual, and who
provided care to the transferor which permitted the
transferor to reside at home rather than in such an
institution 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 transferor'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 (including a
trust described in section 1917(d)(4)) established
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--
[[Page 113 STAT. 1837]]
``(I) the individual who disposed of the resources
intended to dispose of the resources either at fair
market value, or for other valuable consideration;
``(II) the resources were transferred exclusively
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 procedures
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 portion 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 resource.
``(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 becomes eligible for benefits under this title.
``(F) For purposes of this paragraph--
``(i) the term `benefits under this title' includes payments
of the type described in section 1616(a) of this Act and of the
type described in section 212(b) of Public Law 93-66;
``(ii) the term `institutionalized individual' has the
meaning given such term in section 1917(e)(3); and
``(iii) the term `trust' has the meaning given such term in
subsection (e)(6)(A) of this section.''.
(b) Conforming Amendment.--Section 1902(a)(10) of the Social
Security Act (42 U.S.C. 1396a(a)(10)), as amended by section 205(c) of
this Act, is amended by striking ``section 1613(e)'' and inserting
``subsections (c) and (e) of section 1613''.
(c) Effective <<NOTE: 42 USC 1382b note.>> 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 inserting after section 1129 the
following:
``SEC. 1129A. <<NOTE: 42 USC 1320a-8a.>> ADMINISTRATIVE PROCEDURE FOR
IMPOSING PENALTIES FOR FALSE OR MISLEADING STATEMENTS.
``(a) In General.--Any person who makes, or causes to be made, a
statement or representation of a material fact for use in determining
any initial or continuing right to or the amount of--
``(1) monthly insurance benefits under title II; or
``(2) benefits or payments under title XVI,
that the person knows or should know is false or misleading or knows or
should know omits a material fact or who makes such a statement with
knowing disregard for the truth shall be subject
[[Page 113 STAT. 1838]]
to, in addition to any other penalties that may be prescribed by law, a
penalty described in subsection (b) to be imposed by the Commissioner of
Social Security.
``(b) Penalty.--The penalty described in this subsection 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 engaged in conduct described in subsection (a), shall
be--
``(1) six consecutive months, in the case of the first such
determination with respect to the person;
``(2) twelve consecutive months, in the case of the second
such determination with respect to the person; and
``(3) twenty-four consecutive months, in the case of the
third or subsequent such determination with 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 person for
benefits under titles XVIII and XIX; and
``(2) determination of the eligibility or amount of benefits
payable under title II or XVI to another 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 Delayed Retirement Credit for
any Month to Which a Nonpayment of Benefits Penalty Applies.--Section
202(w)(2)(B) of such Act (42 U.S.C. 402(w)(2)(B)) is amended--
(1) by striking ``and'' at the end of clause (i);
(2) by striking the period at the end of clause (ii) and
inserting ``, and''; and
(3) by adding at the end the following:
``(iii) such individual was not subject to a penalty
imposed under section 1129A.''.
(c) Elimination of Redundant Provision.--Section 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 <<NOTE: Deadline. 42 USC 1320a-8a note.>> 6
months after the date of the enactment of this Act, the Commissioner of
Social Security shall develop regulations that prescribe the
administrative process for making
[[Page 113 STAT. 1839]]
determinations under section 1129A of the Social Security Act (including
when the applicable period in subsection (c) of such section shall
commence), and shall provide guidance on the exercise of discretion as
to whether the penalty should be imposed in particular cases.
42 USC
1320a-8a
note.
(e) Effective <<NOTE: Applicability. 42 USC 402 note.>> 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.
42 USC 402
note.
SEC. 208. EXCLUSION OF REPRESENTATIVES AND HEALTH CARE PROVIDERS
CONVICTED OF VIOLATIONS FROM PARTICIPATION IN SOCIAL
SECURITY 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:
``Sec. 1136. <<NOTE: 42 USC 1320b-6.>> (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 reasonable notice to the public and to the
individual excluded as may be specified in regulations consistent with
paragraph (2).
``(2) Such an exclusion shall be effective with respect to services
furnished to any individual on or after the effective 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 exclusion.
``(B) Subject to subparagraph (C), in the case of an exclusion under
subsection (a), the minimum period of exclusion shall be 5 years, except
that the Commissioner may waive the exclusion in the case of an
individual who is the sole source of essential services in a community.
The Commissioner's decision whether to waive the exclusion shall not be
reviewable.
``(C) In the case of an exclusion of an individual under subsection
(a) based on a conviction or a determination 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--
[[Page 113 STAT. 1840]]
``(i) on one previous occasion of one or more offenses for
which an exclusion may be effected under such subsection, the
period of the exclusion shall be not less than 10 years; or
``(ii) on two or more previous occasions of one or more
offenses for which an exclusion may be effected under such
subsection, the period of the exclusion shall be permanent.
``(c) Notice to State Agencies.--The Commissioner shall promptly
notify each appropriate State agency employed for the purpose of making
disability determinations under section 221 or 1633(a)--
``(1) of the fact and circumstances of each exclusion
effected against an individual under this section; and
``(2) of the period (described in subsection (b)(3)) for
which the State agency is directed to exclude the individual
from participation in the activities of the State agency in the
course of its employment.
``(d) Notice to State Licensing Agencies.--The Commissioner shall--
``(1) promptly notify the appropriate State or local agency
or authority having responsibility for the licensing or
certification of an individual excluded from participation under
this section of the fact and circumstances of the exclusion;
``(2) request that appropriate investigations be made and
sanctions invoked in accordance with applicable 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 excluded) 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 Commissioner's final decision
after such hearing as is provided in section 205(g).
``(2) <<NOTE: Applicability.>> 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 Exclusion.--(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 exclusion effected under this section.
``(2) The Commissioner may terminate the exclusion if the
Commissioner determines, on the basis of the conduct of the applicant
which occurred after the date of the notice of exclusion or which was
unknown to the Commissioner at the time of the exclusion, that--
``(A) there is no basis under subsection (a) for a
continuation of the exclusion; and
``(B) there are reasonable assurances that the types of
actions which formed the basis for the original exclusion have
not recurred and will not recur.
[[Page 113 STAT. 1841]]
``(3) <<NOTE: Notification.>> The Commissioner shall promptly notify
each State agency employed for the purpose of making disability
determinations under section 221 or 1633(a) of the fact and
circumstances of each termination of exclusion made under this
subsection.
``(g) Availability of Records of Excluded Representatives and health
care providers.--Nothing in this section shall be construed to have the
effect of limiting access by any applicant or beneficiary under title II
or XVI, any State agency acting under section 221 or 1633(a), or the
Commissioner to records maintained by any representative or health care
provider in connection with services provided to the applicant or
beneficiary prior to the exclusion of such representative or health care
provider under this section.
``(h) Reporting <<NOTE: Regulations.>> Requirement.--Any
representative 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 Commissioner shall prescribe by
regulation, whether such representative or health care provider has been
convicted of a violation described in subsection (a).
``(i) Delegation of Authority.--The Commissioner may delegate
authority granted by this section to the Inspector General.
``( j) Definitions.--For purposes of this section:
``(1) Exclude.--The term `exclude' from participation
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 representative, in
any hearing or other proceeding relating to entitlement
to benefits; and
``(B) in connection with a health care provider, to
prohibit from providing items or services 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 providing 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 Federal, State, or local
court, except if the judgment of conviction has been set
aside or expunged;
``(B) when there has been a finding of guilt against
the individual by a Federal, State, or local court;
``(C) when a plea of guilty or nolo contendere by
the individual has been accepted by a Federal, State, or
local court; or
``(D) when the individual has entered into
participation in a first offender, deferred
adjudication, or other arrangement or program where
judgment of conviction has been withheld.''.
[[Page 113 STAT. 1842]]
(b) Effective <<NOTE: Applicability. 42 USC 1320b-6 note.>> Date.--
The amendment made by this section shall apply with respect to
convictions of violations described in paragraphs (1) and (2) of section
1136(a) of the Social Security Act and determinations described in
paragraph (3) of such section occurring on or after the date of the
enactment of this Act.
42 USC
1320b-6
note.
SEC. 209. <<NOTE: 42 USC 1306b.>> STATE DATA EXCHANGES.
Whenever the Commissioner of Social Security requests information
from a State for the purpose of ascertaining an individual's eligibility
for benefits (or the correct amount of such benefits) under title II or
XVI of the Social Security Act, the standards of the Commissioner
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 standards of the State that would otherwise apply to the
disclosure of information by the State to the Commissioner.
SEC. 210. <<NOTE: 42 USC 1320a-8 note.>> 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 Security, 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 individuals 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 <<NOTE: Deadline.>> later than 1 year after the
date of the enactment of this Act, the Commissioner shall submit to the
Committee on Ways and Means of the House of 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 administrative
changes as the Commissioner considers appropriate.
SEC. 211. ANNUAL REPORT ON AMOUNTS NECESSARY TO COMBAT FRAUD.
(a) In General.--Section 704(b)(1) of the Social 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 subparagraph:
``(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 <<NOTE: Applicability. 42 USC 904 note.>> Date.--The
amendments made by this section shall apply with respect to annual
budgets prepared for fiscal years after fiscal year 1999.
42 USC 904
note.
[[Page 113 STAT. 1843]]
SEC. 212. COMPUTER MATCHES WITH MEDICARE AND MEDICAID
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 Commissioner and the
Secretary shall mutually agree, such information as the Commissioner may
request for this purpose. Information obtained pursuant to such a match
may be substituted for the physician's certification otherwise required
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 require each
applicant for, or recipient of, benefits under this title to provide
authorization by the applicant or recipient (or by any other person
whose income or resources are material to the determination of the
eligibility of the applicant or recipient for such benefits) for the
Commissioner to obtain (subject to the cost reimbursement requirements
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 Commissioner determines the
record is needed in connection with a determination with respect to such
eligibility or the amount of such benefits.
``(II) Notwithstanding section 1104(a)(1) of the Right to Financial
Privacy Act, an authorization provided by an applicant or recipient (or
any other person whose income or resources are material to the
determination of the 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 benefits 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 subclause (I)) of the
authorization, in a written notification to the Commissioner.
``(III)(aa) An authorization obtained by the Commissioner of Social
Security pursuant to this clause shall be considered to meet the
requirements of the Right to Financial Privacy Act for purposes of
section 1103(a) of such Act, and need not be furnished to the financial
institution, notwithstanding section 1104(a) of such Act.
[[Page 113 STAT. 1844]]
``(bb) The certification requirements of section 1103(b) of the
Right to Financial Privacy Act shall not apply to requests by the
Commissioner of Social Security pursuant to an authorization provided
under this clause.
``(cc) A request by the Commissioner pursuant to an authorization
provided under this clause is deemed to meet the requirements of section
1104(a)(3) of the Right to Financial Privacy Act and the flush language
of section 1102 of such Act.
``(IV) The Commissioner shall inform any person who provides
authorization pursuant to this clause of the duration and scope of the
authorization.
``(V) If an applicant for, or recipient of, benefits under this
title (or any such other person referred to in subclause (I)) refuses to
provide, or revokes, any authorization made by the applicant or
recipient for the Commissioner of Social Security to obtain from any
financial institution any financial record, the Commissioner may, on
that basis, determine that the applicant or recipient is ineligible for
benefits under this title.''.
Subtitle B--Benefits For Certain World War II Veterans
SEC. 251. ESTABLISHMENT OF PROGRAM OF SPECIAL BENEFITS FOR CERTAIN WORLD
WAR II VETERANS.
(a) In General.--The Social Security Act is amended 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. <<NOTE: 42 USC 1001.>> 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. <<NOTE: 42 USC 1002.>> QUALIFIED INDIVIDUALS.
``Except as otherwise provided in this title, an individual--
``(1) who has attained the age of 65 on or before the date
of the enactment of this title;
[[Page 113 STAT. 1845]]
``(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 enacted; 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. <<NOTE: 42 USC 1003.>> 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. <<NOTE: 42 USC 1004.>> 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 removed from the United States pursuant to
section 237(a) or 212(a)(6)(A) of the Immigration and
Nationality Act and before the month in which the individual is
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 confinement 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 Jersey, 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 individuals residing in such country
are withheld by the Treasury Department under section 3329 of
title 31, United States Code.
``(b) Requirement <<NOTE: Notification.>> 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. <<NOTE: 42 USC 1005.>> 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 individual's benefit income for the month.
[[Page 113 STAT. 1846]]
``SEC. 806. <<NOTE: 42 USC 1006.>> APPLICATIONS AND FURNISHING OF
INFORMATION.
``(a) In General.--The Commissioner of Social Security shall,
subject to subsection (b), prescribe such requirements with respect to
the filing of applications, the furnishing of information and other
material, and the reporting of events and changes in circumstances, as
may be necessary for the effective and efficient administration of this
title.
``(b) Verification Requirement.--The requirements prescribed by the
Commissioner of Social Security under subsection (a) shall preclude any
determination of 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 payees) in correct amounts.
``SEC. 807. <<NOTE: 42 USC 1007.>> REPRESENTATIVE PAYEES.
``(a) In General.--If the Commissioner of Social Security determines
that the interest of any qualified individual under this title would be
served thereby, payment of the qualified individual's benefit under this
title may be made, regardless of the legal competency or incompetency of
the qualified individual, either directly to the qualified individual,
or for his or her benefit, to another person (the meaning of which term,
for purposes of this section, includes an organization) with respect to
whom the requirements of subsection (b) have been met (in this section
referred to as the qualified individual's `representative payee'). If
the Commissioner of Social Security determines that a representative
payee has misused any benefit paid to the representative payee pursuant
to this section, section 205( j), or section 1631(a)(2), the
Commissioner of Social Security shall promptly revoke the person's
designation as the qualified individual's representative payee under
this subsection, and shall make payment to an alternative representative
payee or, if the interest of the qualified individual under this title
would be served thereby, to the qualified 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 representative payee
shall be made on the basis of--
``(A) an investigation by the Commissioner of Social
Security of the person to serve as representative payee,
which shall be conducted in advance of the determination
and shall, to the extent practicable, include a face-to-
face interview with the person (or, in the case of an
organization, a representative of the organization); and
``(B) adequate evidence that the arrangement is in
the interest of the qualified individual.
``(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 social
security account number issued for purposes of the
program under title II or an employer identification
number issued for
[[Page 113 STAT. 1847]]
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 benefits to the
person in the capacity as representative payee has been
revoked or terminated pursuant to this section, section
205( j), or section 1631(a)(2)(A)(iii) by reason of
misuse of funds paid as benefits under this title, title
II, or XVI, respectively.
``(c) Requirement for Maintaining Lists of Undesirable Payees.--The
Commissioner of Social Security shall establish and maintain lists which
shall be updated periodically and which shall be in a form that renders
such lists available to the servicing offices of the Social Security
Administration. The lists shall consist of--
``(1) the names and (if issued) social security 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, 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; 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 Representative Payees.--
``(1) In general.--The benefits of a qualified individual
may not be paid to any other person pursuant 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 capacity 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 referred to in such
paragraph if the creditor is--
``(i) a relative of the qualified individual
and the relative resides in the same household as
the qualified individual;
``(ii) a legal guardian or legal
representative of the individual;
[[Page 113 STAT. 1848]]
``(iii) a facility that is licensed or
certified as a care facility under the law of the
political jurisdiction in which the qualified
individual resides;
``(iv) a person who is an administrator,
owner, or employee of a facility referred to in
clause (iii), if the qualified individual resides
in the facility, and the payment to the facility
or the person is made only after the Commissioner
of Social Security has made a good faith effort to
locate an alternative representative payee to whom
payment would serve the best interests of the
qualified individual; or
``(v) a person who is determined by the
Commissioner of Social Security, on the basis of
written findings and pursuant to procedures
prescribed by the Commissioner of Social Security,
to be acceptable to serve as a representative
payee.
``(C) The procedures referred to in subparagraph
(B)(v) shall require the person who will serve as
representative payee to establish, to the satisfaction
of the Commissioner of Social 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 representative
payee can be found.
``(e) Deferral of Payment Pending Appointment of Representative
Payee.--
``(1) In general.--Subject to paragraph (2), if the
Commissioner of Social Security makes a determination described
in the first sentence of subsection (a) with respect to any
qualified individual's benefit and determines that direct
payment of the benefit to the qualified individual would cause
substantial harm to the qualified individual, the Commissioner
of Social Security may defer (in the case of initial
entitlement) or suspend (in the case of existing entitlement)
direct payment of the benefit to the qualified individual, until
such time as the selection 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 paragraph (1) shall be
for a period of not more than 1 month.
``(B) Exception in the case of incompetency.--
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 suspended 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 Security
determines is in the best interest of the qualified individual.
[[Page 113 STAT. 1849]]
``(f ) Hearing.--Any qualified individual who is dissatisfied with a
determination by the Commissioner of Social Security to make payment of
the qualified individual's benefit to a representative payee under
subsection (a) of this section or with the designation of a particular
person to serve as representative payee shall be entitled to a hearing
by the Commissioner of Social Security to the same extent as is provided
in section 809(a), and to judicial review of the Commissioner of Social
Security's final decision as is provided in section 809(b).
``(g) Notice Requirements.--
``(1) In general.--In advance, to the extent practicable, of
the payment of a qualified individual's benefit to a
representative payee under subsection (a), the Commissioner of
Social Security shall provide written notice of the
Commissioner's initial determination to so make the payment. The
notice shall be provided to the qualified individual, except
that, if the qualified individual is legally incompetent, then
the notice shall be provided solely to the legal guardian or
legal representative of the qualified individual.
``(2) Specific requirements.--Any notice required 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
individual's legal guardian or legal representative--
``(A) to appeal a determination that a
representative payee is necessary for the qualified
individual;
``(B) to appeal the designation of a particular
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 <<NOTE: Reports.>> 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
Commissioner of Social Security shall establish and implement
statistically valid procedures for reviewing the reports in
order to identify instances in which persons 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
individual, if the Commissioner of Social Security has reason to
believe that the person receiving the payments 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 pursuant to this section, section 205(
j), or section 1631(a)(2); and
[[Page 113 STAT. 1850]]
``(B) the name, address, and social security account
number of each individual for whom each representative
payee is reported to be providing services as
representative payee pursuant to this section, section
205( j), or section 1631(a)(2).
``(4) Maintaining lists of agencies.--The Commissioner of
Social Security shall maintain lists, which shall be updated
periodically, of public agencies and community-based nonprofit
social service agencies which are qualified to serve as
representative payees pursuant to this section and which are
located in the jurisdiction in which any qualified individual
resides.
``(i) Restitution.--In any case where the negligent failure of the
Commissioner of Social Security to investigate or monitor a
representative payee results in misuse of benefits by the representative
payee, the Commissioner of Social Security shall make payment to the
qualified individual or the individual's alternative representative
payee of an amount equal to the misused benefits. The Commissioner of
Social Security shall make a good faith effort to obtain restitution
from the terminated representative payee.
``SEC. 808. <<NOTE: 42 USC 1008.>> 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 two methods,
shall seek or pursue recovery by means of reduction in
tax refunds based on notice to the Secretary of the
Treasury, 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 prepared to take action with
respect to the underpayment--
``(A) is living, the Commissioner of Social Security
shall make payment to the qualified individual (or the
qualified individual's representative 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 Commissioner 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
[[Page 113 STAT. 1851]]
``(2) if such individual is otherwise so qualified, become
qualified for increased benefits under this title.
``(c) Waiver of Recovery of Overpayment.--In any case in which more
than the correct amount of payment has been made, there shall be no
adjustment of payments to, or recovery by the United States from, any
person who is without fault if the Commissioner of Social Security
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 Officers.--A disbursing
officer may not be held liable for any amount paid by the officer if the
adjustment or recovery of the amount is waived under subsection (b), or
adjustment under subsection (a) is not completed before the death of the
qualified individual against whose benefits deductions are authorized.
``(e) Authorized Collection Practices.--
``(1) In general.--With respect to any delinquent 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. <<NOTE: 42 USC 1009.>> HEARINGS AND REVIEW.
``(a) Hearings.--
``(1) In general.--The Commissioner of Social Security shall
make findings of fact and decisions as to the rights of any
individual applying for payment under this
title. <<NOTE: Notice.>> The Commissioner of Social Security
shall provide reasonable notice and opportunity for a hearing to
any individual who is or claims to be a qualified individual and
is in disagreement with any determination under this title with
respect to 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 adduced at the hearing affirm, modify, or reverse the
Commissioner of Social Security's findings of fact and the
decision. The Commissioner of Social Security may, on the
Commissioner of Social Security's own motion, hold such hearings
and conduct such investigations and other proceedings as the
Commissioner of Social Security deems necessary or proper for
the administration of this title. In the course of any hearing,
investigation, or other proceeding, the Commissioner may
administer oaths and affirmations, examine witnesses, and
receive evidence. Evidence may be received at any hearing before
the Commissioner of Social Security even though inadmissible
under the rules of evidence applicable to court procedure. The
Commissioner of Social Security shall specifically take into
account any physical, mental, educational, or linguistic
limitation of the individual (including any lack of facility
with the English language) in determining, with respect to the
entitlement of the individual
[[Page 113 STAT. 1852]]
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 application for any payment under this title
or an adverse 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 acting in good faith reliance upon incorrect,
incomplete, or misleading information, relating to the
consequences of reapplying for payments in lieu of seeking
review of an adverse determination, provided by any officer or
employee of the Social Security Administration.
``(3) Notice requirements.--In any notice of an adverse
determination with respect to which a review may be requested
under paragraph (1), the Commissioner of Social Security shall
describe in clear and specific language the effect on possible
entitlement to benefits under this title of choosing to reapply
in lieu of requesting review of the determination.
``(b) Judicial Review.--The final determination of the Commissioner
of Social Security after a hearing under subsection (a)(1) shall be
subject to judicial review as provided in section 205(g) to the same
extent as the Commissioner of Social Security's final determinations
under section 205.
``SEC. 810. <<NOTE: 42 USC 1010.>> OTHER ADMINISTRATIVE PROVISIONS.
``(a) Regulations and Administrative Arrangements.--The Commissioner
of Social Security may prescribe such regulations, and make such
administrative and other arrangements, as may be necessary or
appropriate to carry out this title.
``(b) Payment of Benefits.--Benefits under this title shall be paid
at such time or times and in such installments as the Commissioner of
Social Security determines are in the interests of economy and
efficiency.
``(c) Entitlement Redeterminations.--An individual's entitlement to
benefits under this title, and the amount of the benefits, may be
redetermined at such time or times as the Commissioner of Social
Security determines to be appropriate.
``(d) Suspension and Termination of Benefits.--Regulations
prescribed by the Commissioner of Social Security under subsection (a)
may provide for the suspension and termination of entitlement to
benefits under this title as the Commissioner determines is appropriate.
``SEC. 811. <<NOTE: 42 USC 1011.>> PENALTIES FOR FRAUD.
``(a) In General.--Whoever--
``(1) knowingly and willfully makes or causes to be made any
false statement or representation of a material fact in an
application for benefits under this title;
``(2) at any time knowingly and willfully makes or causes to
be made any false statement or representation of a material fact
for use in determining any right to the benefits;
``(3) having knowledge of the occurrence of any event
affecting--
``(A) his or her initial or continued right to the
benefits; or
[[Page 113 STAT. 1853]]
``(B) the initial or continued right to the benefits
of any other individual in whose behalf he or she has
applied for or is receiving the benefit,
conceals or fails to disclose the event with an intent
fraudulently to secure the benefit either in a greater amount or
quantity than is due or when no such benefit is authorized; or
``(4) having made application to receive any such benefit
for the use and benefit of another and having received it,
knowingly and willfully converts the benefit or any part thereof
to a use other than for the use and benefit of the other
individual,
shall be fined under title 18, United States Code, imprisoned not more
than 5 years, or both.
``(b) Restitution by Representative Payee.--If a person or
organization violates subsection (a) in the person's or organization's
role as, or in applying to become, a representative payee under section
807 on behalf of a qualified individual, and the violation includes a
willful misuse of funds by the person or entity, the court may also
require that full or partial restitution of funds be made to the
qualified individual.
``SEC. 812. <<NOTE: 42 USC 1012.>> DEFINITIONS.
``In this title:
``(1) World war ii veteran.--The term `World War II veteran'
means a person who--
``(A) served during World War II--
``(i) in the active military, naval, or air
service of the United States during World War II;
or
``(ii) in the organized military forces of the
Government of the Commonwealth of the Philippines,
while the forces were in the service of the Armed
Forces of the United States pursuant to the
military order of the President dated July 26,
1941, including among the military forces
organized guerrilla forces under commanders
appointed, designated, or subsequently recognized
by the Commander in Chief, Southwest Pacific Area,
or other competent authority in the Army of the
United States, in any case in which the service
was rendered before December 31, 1946; and
``(B) was discharged or released therefrom under
conditions other than dishonorable--
``(i) after service of 90 days or more; or
``(ii) because of a disability or injury
incurred or aggravated in the line of active duty.
``(2) World war ii.--The term `World War II' means the
period beginning on September 16, 1940, and ending on July 24,
1947.
``(3) Supplemental security income benefit under title
xvi.--The term `supplemental security income benefit under title
XVI', except as otherwise provided, includes State supplementary
payments which are paid by the Commissioner of Social Security
pursuant to an agreement under section 1616(a) of this Act or
section 212(b) of Public Law 93-66.
``(4) Federal benefit rate under title xvi.--The term
`Federal benefit rate under title XVI' means, with respect to
any month, the amount of the supplemental security income
[[Page 113 STAT. 1854]]
cash benefit (not including any State supplementary payment
which is paid by the Commissioner of Social Security pursuant to
an agreement under section 1616(a) of this Act or section 212(b)
of Public Law 93-66) payable under title XVI for the month to an
eligible individual with no income.
``(5) United states.--The term `United States' means,
notwithstanding section 1101(a)(1), only the 50 States, the
District of Columbia, and the Commonwealth of the Northern
Mariana Islands.
``(6) Benefit income.--The term `benefit income' means any
recurring payment received by a qualified individual as an
annuity, pension, retirement, or disability benefit (including
any veterans' compensation or pension, workmen's compensation
payment, old-age, survivors, or disability insurance benefit,
railroad retirement annuity or pension, and unemployment
insurance benefit), but only if a similar payment was received
by the individual from the same (or a related) source during the
12-month period preceding the month in which the individual
files an application for benefits under this title.
``SEC. 813. <<NOTE: 42 USC 1013.>> APPROPRIATIONS.
``There are hereby appropriated for fiscal year 2000 and subsequent
fiscal years, out of any funds in the Treasury not otherwise
appropriated, such sums as may be necessary to carry out this title.''.
(b) Conforming Amendments.--
(1) Social security trust funds lae account.--Section 201(g)
of such Act (42 U.S.C. 401(g)) is amended--
(A) in the fourth sentence of paragraph (1)(A), by
inserting after ``this title,'' the following: ``title
VIII,'';
(B) in paragraph (1)(B)(i)(I), by inserting after
``this title,'' the following: ``title VIII,''; and
(C) in paragraph (1)(C)(i), by inserting after
``this title,'' the following: ``title VIII,''.
(2) Representative payee provisions of title ii.--Section
205( j) of such Act (42 U.S.C. 405( j)) is amended--
(A) in paragraph (1)(A), by inserting ``807 or''
before ``1631(a)(2)'';
(B) in paragraph (2)(B)(i)(I), by inserting ``,
title VIII,'' before ``or title XVI'';
(C) in paragraph (2)(B)(i)(III), by inserting ``,
811,'' before ``or 1632'';
(D) in paragraph (2)(B)(i)(IV)--
(i) by inserting ``, the designation of such
person as a representative payee has been revoked
pursuant to section 807(a),'' before ``or payment
of benefits''; and
(ii) by inserting ``, title VIII,'' before
``or title XVI'';
(E) in paragraph (2)(B)(ii)(I)--
(i) by inserting ``whose designation as a
representative payee has been revoked pursuant to
section 807(a),'' before ``or with respect to
whom''; and
(ii) by inserting ``, title VIII,'' before
``or title XVI'';
(F) in paragraph (2)(B)(ii)(II), by inserting ``,
811,'' before ``or 1632'';
(G) in paragraph (2)(C)(i)(II), by inserting ``, the
designation of such person as a representative payee has
been
[[Page 113 STAT. 1855]]
revoked pursuant to section 807(a),'' before ``or
payment of benefits'';
(H) in each of clauses (i) and (ii) of paragraph
(3)(E), by inserting ``, section 807,'' before ``or
section 1631(a)(2)'';
(I) in paragraph (3)(F), by inserting ``807 or''
before ``1631(a)(2)''; and
(J) in paragraph (4)(B)(i), by inserting ``807 or''
before ``1631(a)(2)''.
(3) Withholding for child support and alimony obligations.--
Section 459(h)(1)(A) of such Act (42 U.S.C. 659(h)(1)(A)) is
amended--
(A) at the end of clause (iii), by striking ``and'';
(B) at the end of clause (iv), by striking ``but''
and inserting ``and''; and
(C) by adding at the end a new clause as follows:
``(v) special benefits for certain World War
II veterans payable under title VIII; but''.
(4) Social security advisory board.--Section 703(b) of such
Act (42 U.S.C. 903(b)) is amended by striking ``title II'' and
inserting ``title II, the program of special benefits for
certain World War II veterans under title VIII,''.
(5) Delivery of checks.--Section 708 of such Act (42 U.S.C.
908) <<NOTE: 42 USC 909.>> is amended--
(A) in subsection (a), by striking ``title II'' and
inserting ``title II, title VIII,''; and
(B) in subsection (b), by striking ``title II'' and
inserting ``title II, title VIII,''.
(6) Civil monetary penalties.--Section 1129 of such Act (42
U.S.C. 1320a-8) is amended--
(A) in the title, by striking ``II'' and inserting
``II, VIII'';
(B) in subsection (a)(1)--
(i) by striking ``or'' at the end of subpara-
graph (A);
(ii) by redesignating subparagraph (B) as
subparagraph (C); and
(iii) by inserting after subparagraph (A) the
following new subparagraph:
``(B) benefits or payments under title VIII, or'';
(C) in subsection (a)(2), by inserting ``or title
VIII,'' after ``title II'';
(D) in subsection (e)(1)(C)--
(i) by striking ``or'' at the end of clause
(i);
(ii) by redesignating clause (ii) as clause
(iii); and
(iii) by inserting after clause (i) the
following new clause:
``(ii) by decrease of any payment under title
VIII to which the person is entitled, or'';
(E) in subsection (e)(2)(B), by striking ``title
XVI'' and inserting ``title VIII or XVI''; and
(F) in subsection (l), by striking ``title XVI'' and
inserting ``title VIII or XVI''.
(7) Recovery of ssi overpayments.--Section 1147 of such Act
(42 U.S.C. 1320b-17) is amended--
(A) in subsection (a)(1)--
(i) by inserting ``or VIII'' after ``title
II'' the first place it appears; and
[[Page 113 STAT. 1856]]
(ii) by striking ``title II'' the second place
it appears and inserting ``such title''; and
(B) in the heading, by striking ``social security''
and inserting ``other''.
(8) Recovery of social security overpayments.--Part A of
title XI of the Social Security Act is amended by inserting
after section 1147 (42 U.S.C. 1320b-17) the following new
section:
``Sec. 1147A. <<NOTE: 42 USC 1320b-18.>> Whenever the Commissioner
of Social Security determines that more than the correct amount of any
payment has been made under title II to an individual who is not
currently receiving benefits under that title but who is receiving
benefits under title VIII, the Commissioner may recover the amount
incorrectly paid under title II by decreasing any amount which is
payable to the individual under title VIII.''.
(9) Representative payee provisions of title xvi.--Section
1631(a)(2) of such Act (42 U.S.C. 1383(a)(2)) is amended--
(A) in subparagraph (A)(iii), by inserting ``or
807'' after ``205( j)(1)'';
(B) in subparagraph (B)(ii)(I), by inserting ``,
title VIII,'' before ``or this title'';
(C) in subparagraph (B)(ii)(III), by inserting ``,
811,'' before ``or 1632'';
(D) in subparagraph (B)(ii)(IV)--
(i) by inserting ``whether the designation of
such person as a representative payee has been
revoked pursuant to section 807(a),'' before ``and
whether certification''; and
(ii) by inserting ``, title VIII,'' before
``or this title'';
(E) in subparagraph (B)(iii)(II), by inserting ``the
designation of such person as a representative payee has
been revoked pursuant to section 807(a),'' before ``or
certification''; and
(F) in subparagraph (D)(ii)(II)(aa), by inserting
``or 807'' after ``205( j)(4)''.
(10) Administrative offset.--Section 3716(c)(3)(C) of title
31, United States Code, is amended--
(A) by striking ``sections 205(b)(1)'' and inserting
``sections 205(b)(1), 809(a)(1),''; and
(B) by striking ``either title II'' and inserting
``title II, VIII,''.
Subtitle C--Study
SEC. 261. <<NOTE: 42 USC 1382 note.>> STUDY OF DENIAL OF SSI BENEFITS
FOR FAMILY FARMERS.
(a) In General.--The Commissioner of Social Security shall conduct a
study of the reasons why family farmers with resources of less than
$100,000 are denied supplemental security income benefits under title
XVI of the Social Security Act, including whether the deeming process
unduly burdens and discriminates against family farmers who do not
institutionalize a disabled dependent, and shall determine the number of
such farmers who
[[Page 113 STAT. 1857]]
have been denied such benefits during each of the preceding 10 years.
(b) Report <<NOTE: Deadline.>> to the Congress.--Within 1 year after
the date of the enactment of this Act, the Commissioner of Social
Security shall prepare and submit to the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of the Senate
a report that contains the results of the study, and the determination,
required by subsection (a).
TITLE III--CHILD SUPPORT
SEC. 301. NARROWING OF HOLD-HARMLESS PROVISION FOR STATE SHARE OF
DISTRIBUTION OF COLLECTED CHILD SUPPORT.
(a) In General.--Section 457(d) of the Social Security Act (42
U.S.C. 657(d)) is amended to read as follows:
``(d) Hold-Harmless Provision.--If--
``(1) the State share of amounts collected in the fiscal
year which could be retained to reimburse the State for amounts
paid to families as assistance by the State is less than the
State share of such amounts collected in fiscal year 1995
(determined in accordance with section 457 as in effect on
August 21, 1996); and
``(2)(A) the State has distributed to families that include
an adult receiving assistance under the program under part A at
least 80 percent of the current support payments collected
during the preceding fiscal year on behalf of such families, and
the amounts distributed were disregarded in determining the
amount or type of assistance provided under the program under
part A; or
``(B) the State has distributed to families that formerly
received assistance under the program under part A the State
share of the amounts collected pursuant to section 464 that
could have been retained as reimbursement for assistance paid to
such families,
then the State share otherwise determined for the fiscal year shall be
increased by an amount equal to one-half of the amount (if any) by which
the State share for fiscal year 1995 exceeds the State share for the
fiscal year (determined without regard to this subsection).''.
(b) Effective <<NOTE: 42 USC 657 note.>> Date.--The amendment made
by subsection (a) shall be effective with respect to calendar quarters
occurring during the period that begins on October 1, 1998, and ends on
September 30, 2001.
(c) Repeal.--Effective October 1, 2001, section 457 of the Social
Security Act (42 U.S.C. 657) is amended--
(1) in subsection (a), by striking ``subsections (e) and (f
)'' and inserting ``subsections (d) and (e)'';
(2) by striking subsection (d);
(3) in subsection (e), by striking the second sentence; and
(4) by redesignating subsections (e) and (f ) as subsections
(d) and (e), respectively.
[[Page 113 STAT. 1858]]
TITLE IV--TECHNICAL CORRECTIONS
SEC. 401. TECHNICAL CORRECTIONS RELATING TO AMENDMENTS MADE BY THE
PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION
ACT OF 1996.
(a) Section 402(a)(1)(B)(iv) of the Social Security Act (42 U.S.C.
602(a)(1)(B)(iv)) is amended by striking ``Act'' and inserting
``section''.
(b) Section 409(a)(7)(B)(i)(II) of the Social Security Act (42
U.S.C. 609(a)(7)(B)(i)(II)) is amended by striking ``part'' and
inserting ``section''.
(c) Section 413(g)(1) of the Social Security Act (42 U.S.C.
613(g)(1)) is amended by striking ``Act'' and inserting ``section''.
(d) Section 416 of the Social Security Act (42 U.S.C. 616) is
amended by striking ``Opportunity Act'' and inserting ``Opportunity
Reconciliation Act'' each place such term appears.
(e) Section 431(a)(6) of the Social Security Act (42 U.S.C.
629a(a)(6))) is amended--
(1) by inserting ``, as in effect before August 22, 1986''
after ``482(i)(5)''; and
(2) by inserting ``, as so in effect'' after
``482(i)(7)(A)''.
(f ) Sections 452(a)(7) and 466(c)(2)(A)(i) of the Social Security
Act (42 U.S.C. 652(a)(7) and 666(c)(2)(A)(i)) are each amended by
striking ``Social Security'' and inserting ``social security''.
(g) Section 454 of the Social Security Act (42 U.S.C. 654) is
amended--
(1) by striking ``, or'' at the end of each of paragraphs
(6)(E)(i) and (19)(B)(i) and inserting ``; or'';
(2) in paragraph (9), by striking the comma at the end of
each of subparagraphs (A), (B), and (C) and inserting a
semicolon; and
(3) by striking ``, and'' at the end of each of paragraphs
(19)(A) and (24)(A) and inserting ``; and''.
(h) Section 454(24)(B) of the Social Security Act (42 U.S.C.
654(24)(B)) is amended by striking ``Opportunity Act'' and inserting
``Opportunity Reconciliation Act''.
(i) Section 344(b)(1)(A) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (Public Law 104-193; 110 Stat.
2236) <<NOTE: 42 USC 655.>> is amended to read as follows:
``(A) in paragraph (1), by striking subparagraph (B)
and inserting the following:
`(B) equal to the percent specified in paragraph (3)
of the sums expended during such quarter that are
attributable to the planning, design, development,
installation or enhancement of an automatic data
processing and information retrieval system (including
in such sums the full cost of the hardware components of
such system); and'; and''.
( j) Section 457(a)(2)(B)(i)(I) of the Social Security Act (42
U.S.C. 657(a)(2)(B)(i)(I)) is amended by striking ``Act Reconciliation''
and inserting ``Reconciliation Act''.
(k) Section 457 of the Social Security Act (42 U.S.C. 657) is
amended by striking ``Opportunity Act'' each place it appears and
inserting ``Opportunity Reconciliation Act''.
(l) <<NOTE: Effective date.>> Effective on the date of the enactment
of this Act, section 404(e) of the Social Security Act (42 U.S.C.
604(e)) is amended
[[Page 113 STAT. 1859]]
by inserting ``or tribe'' after ``State'' the first and second places it
appears, and by inserting ``or tribal'' after ``State'' the third place
it appears.
(m) Section 466(a)(7)(A) of the Social Security Act (42 U.S.C.
666(a)(7)(A)) is amended by striking ``1681a(f ))'' and inserting
``1681a(f )))''.
(n) Section 466(b)(6)(A) of the Social Security Act (42 U.S.C.
666(b)(6)(A)) is amended by striking ``state'' and inserting ``State''.
(o) Section 471(a)(8) of the Social Security Act (42 U.S.C.
671(a)(8)) is amended by striking ``(including activities under part
F)''.
(p) Section 1137(a)(3) of the Social Security Act (42 U.S.C. 1320b-
7(a)(3)) is amended by striking ``453A(a)(2)(B)(iii))'' and inserting
``453A(a)(2)(B)(ii)))''.
(q) <<NOTE: 42 USC 602 note.>> Except as provided in subsection (l),
the amendments made by this section shall take effect as if included in
the enactment of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2105).
Approved December 14, 1999.
LEGISLATIVE HISTORY--H.R. 3443:
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CONGRESSIONAL RECORD, Vol. 145 (1999):
Nov. 18, considered and passed House.
Nov. 19, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 35 (1999):
Nov. 14, Presidential remarks.
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