[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1802 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1802

   To amend part E of title IV of the Social Security Act to provide 
   States with more funding and greater flexibility in carrying out 
programs designed to help children make the transition from foster care 
              to self-sufficiency, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 13, 1999

Mrs. Johnson of Connecticut (for herself and Mr. Cardin) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
   and in addition to the Committee on Commerce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
   To amend part E of title IV of the Social Security Act to provide 
   States with more funding and greater flexibility in carrying out 
programs designed to help children make the transition from foster care 
              to self-sufficiency, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Foster Care 
Independence Act of 1999''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
              TITLE I--IMPROVED INDEPENDENT LIVING PROGRAM

            Subtitle A--Improved Independent Living Program

Sec. 101. Improved independent living program.
               Subtitle B--Related Foster Care Provision

Sec. 111. Increase in amount of assets allowable for children in foster 
                            care.
                    Subtitle C--Medicaid Amendments

Sec. 121. State option of medicaid coverage for adolescents leaving 
                            foster care.
                     TITLE II--SSI FRAUD PREVENTION

          Subtitle A--Fraud Prevention and Related Provisions

Sec. 201. Liability of representative payees for overpayments to 
                            deceased 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. Rules relating to collection of overpayments from individuals 
                            convicted of crimes.
Sec. 206. Treatment of assets held in trust under the SSI program.
Sec. 207. Disposal of resources for less than fair market value under 
                            the SSI program.
Sec. 208. Administrative procedure for imposing penalties for false or 
                            misleading statements.
Sec. 209. Exclusion of representatives and health care providers 
                            convicted of violations from participation 
                            in social security programs.
Sec. 210. State data exchanges.
Sec. 211. Study on possible measures to improve fraud prevention and 
                            administrative processing.
Sec. 212. Annual report on amounts necessary to combat fraud.
Sec. 213. Computer matches with medicare and medicaid 
                            institutionalization data.
Sec. 214. Access to information held by financial institutions.
       Subtitle B--Benefits for Filipino Veterans of World War II

Sec. 251. Provision of reduced SSI benefit to certain individuals who 
                            provided service to the Armed Forces of the 
                            United States in the Philippines during 
                            World War II after they move back to the 
                            Philippines.
                        TITLE III--CHILD SUPPORT

Sec. 301. Elimination of enhanced matching for laboratory costs for 
                            paternity establishment.
Sec. 302. Elimination of hold harmless provision for State share of 
                            distribution of collected child support.
                    TITLE IV--TECHNICAL CORRECTIONS

Sec. 401. Technical corrections relating to amendments made by the 
                            Personal Responsibility and Work 
                            Opportunity Reconciliation Act of 1996.

              TITLE I--IMPROVED INDEPENDENT LIVING PROGRAM

            Subtitle A--Improved Independent Living Program

SEC. 101. IMPROVED INDEPENDENT LIVING PROGRAM.

    (a) Findings.--The Congress finds the following:
            (1) States are required to make reasonable efforts to find 
        adoptive families for all children, including older children, 
        for whom reunification with their 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) About 20,000 adolescents leave the Nation's foster care 
        system each year because they have reached 18 years of age and 
        are expected to support themselves.
            (3) Congress has received extensive information that 
        adolescents leaving foster care have significant difficulty 
        making a successful transition to 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.
            (4) The Nation's State and local governments, with 
        financial support from the Federal Government, should offer an 
        extensive program of education, training, employment, and 
        financial support for young adults leaving foster care, with 
        participation in such program beginning several years before 
        high school graduation and continuing, as needed, until the 
        young adults emancipated from foster care 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. INDEPENDENT LIVING 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 design programs that 
        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, and 
        substance abuse 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.
    ``(b) Applications.--
            ``(1) In general.--A State may apply for funds from its 
        allotment under subsection (c) for a period of 5 consecutive 
        fiscal years by submitting to the Secretary, in writing, a plan 
        that meets the 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.
                    ``(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 but 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 
                and have attained 18 years of age but not 21 years of 
                age.
                    ``(C) A certification by the chief executive 
                officer of the State that none of the amounts paid to 
                the State from its allotment under 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 has consulted 
                widely with public and private organizations in 
                developing the plan and that the State has given all 
                interested members of the public at least 30 days to 
                submit comments on the plan.
                    ``(E) A certification by the chief executive 
                officer of the State that the State will make every 
                effort to coordinate the State programs receiving funds 
                provided from an allotment made to the State under 
                subsection (c) with other Federal and State programs 
                for youth, especially transitional living youth 
                projects funded under part B of title III of the 
                Juvenile Justice and Delinquency Prevention Act of 
                1974.
                    ``(F) A certification by the chief executive 
                officer of the State that each Indian tribe in the 
                State has been informed about the programs to be 
                carried out under the plan; that each such tribe has 
                been given an opportunity to comment on the plan before 
                submission to the Secretary; and that benefits and 
                services under the programs will be made available to 
                Indian children in the State on the same basis as to 
                other children in the State.
                    ``(G) 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;
                    ``(B) the Secretary finds that the application 
                contains the material required by paragraph (1); and
                    ``(C) all children in the State who have left 
                foster care and have attained 18 years of age but not 
                21 years of age are eligible for medical assistance 
                under the State plan approved under title XIX.
            ``(5) Authority to implement certain amendments; 
        notification.--A State with an 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 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.
            ``(2) Hold harmless provision.--The Secretary shall ratably 
        reduce the allotments made to States pursuant to paragraph (1) 
        for a fiscal year to the extent necessary to ensure that the 
        amount allotted to each State under paragraph (1) and this 
        paragraph for the fiscal year is not less than the amount 
        payable to the State under this section (as in effect before 
        the enactment of the Foster Care Independence Act of 1999) for 
        fiscal year 1998.
            ``(3) Reallotment of unused funds.--The Secretary shall use 
        the formula provided in paragraph (1) of this subsection to 
        reallot among the States with applications approved under 
        subsection (b) for a fiscal year any amount allotted to a State 
        under this subsection for the preceding year that is not 
        payable to the State for the preceding year.
    ``(d) Use of Funds.--
            ``(1) In general.--A State to which an amount is paid from 
        its allotment under subsection (c) may use the amount in any 
        manner that is 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.
    ``(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, employment, avoidance of 
                dependency, homelessness, nonmarital childbirth, 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
                    ``(C) develop and implement a plan to collect the 
                needed information beginning with the 2nd fiscal year 
                beginning after the date of the enactment of this 
                section.
            ``(2) Report to the congress.--Within 12 months after the 
        date of the enactment of this 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).
    ``(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, 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 later than 12 months after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
issue such regulations as may be necessary to carry out the amendments 
made by this section.

               Subtitle B--Related Foster Care Provision

SEC. 111. INCREASE IN AMOUNT OF ASSETS ALLOWABLE FOR CHILDREN IN FOSTER 
              CARE.

    Section 472(a) of the Social Security Act (42 U.S.C. 672(a)) is 
amended by adding at the end the following: ``In determining whether a 
child would have received aid under a State plan approved under section 
402 (as in 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)).''.

                    Subtitle C--Medicaid Amendments

SEC. 121. STATE OPTION OF MEDICAID COVERAGE FOR ADOLESCENTS LEAVING 
              FOSTER CARE.

    (a) In General.--Title XIX of the Social Security Act is amended--
            (1) in section 1902(a)(10)(A)(ii) (42 U.S.C. 
        1396a(a)(10)(A)(ii))--
                    (A) by striking ``or'' at the end of 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:
    ``(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 Date.--The amendments made by subsection (a) apply to 
medical assistance for items and services furnished on or after October 
1, 1999.

                     TITLE II--SSI FRAUD PREVENTION

          Subtitle A--Fraud Prevention and Related Provisions

SEC. 201. LIABILITY OF REPRESENTATIVE PAYEES FOR OVERPAYMENTS TO 
              DECEASED RECIPIENTS.

    (a) Amendment to Title II.--Section 204(a)(2) of the Social 
Security Act (42 U.S.C. 404(a)(2)) is amended by adding at the end the 
following new sentence: ``If any payment of more than the correct 
amount is made to a representative payee on behalf of an individual 
after the individual's death, the representative payee shall be liable 
for the repayment of the overpayment, and the 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 Date.--The amendments made by this section shall 
apply to overpayments made 12 months or more after the date of the 
enactment of this Act.

SEC. 202. RECOVERY OF OVERPAYMENTS OF SSI BENEFITS FROM LUMP SUM SSI 
              BENEFIT PAYMENTS.

    (a) In General.--Section 1631(b)(1)(B)(ii) of the Social Security 
Act (42 U.S.C. 1383(b)(1)(B)(ii)) is amended--
            (1) by inserting ``monthly'' before ``benefit 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 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.

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 Date.--The amendments made by this section shall 
apply to debt outstanding on or after the date of the enactment of this 
Act.

SEC. 204. REQUIREMENT TO PROVIDE STATE PRISONER 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. RULES RELATING TO COLLECTION OF OVERPAYMENTS FROM INDIVIDUALS 
              CONVICTED OF CRIMES.

    (a) Waivers Inapplicable to Overpayments by Reason of Payment in 
Months in Which Beneficiary Is a Prisoner or a Fugitive.--
            (1) Amendment to title ii.--Section 204(b) of the Social 
        Security Act (42 U.S.C. 404(b)) is amended--
                    (A) by inserting ``(1)'' after ``(b)''; and
                    (B) by adding at the end the following:
    ``(2) Paragraph (1) shall not apply with respect to any payment to 
any person made during a month in which such benefit was not payable 
under section 202(x).''.
            (2) Amendment to title xvi.--Section 1631(b)(1)(B)(i) of 
        such Act (42 U.S.C. 1383(b)(1)(B)(i)) is amended by inserting 
        ``unless (I) section 1611(e)(1) prohibits payment to the person 
        of a benefit under this title for the month by reason of 
        confinement of a type described in clause (i) or (ii) of 
        section 202(x)(1)(A), or (II) section 1611(e)(5) prohibits 
        payment to the person of a benefit under this title for the 
        month,'' after ``administration of this title''.
    (b) 10-Year Period of Ineligibility for Persons Failing To Notify 
Commissioner of Overpayments in Months in Which Beneficiary Is a 
Prisoner or a Fugitive or Failing To Comply With Repayment Schedule for 
Such Overpayments.--
            (1) Amendment to title ii.--Section 202(x) of such Act (42 
        U.S.C. 402(x)) is amended by adding at the end the following:
    ``(4)(A) No person shall be considered entitled to monthly 
insurance benefits under this section based on the person's disability 
or to disability insurance benefits under section 223 otherwise payable 
during the 10-year period that begins on the date the person--
            ``(i) knowingly fails to timely notify the Commissioner of 
        Social Security, in connection with any application for 
        benefits under this title, of any prior receipt by such person 
        of any benefit under this title or title XVI in any month in 
        which such benefit was not payable under the preceding 
        provisions of this subsection, or
            ``(ii) knowingly fails to comply with any schedule imposed 
        by the Commissioner which is for repayment of overpayments 
        comprised of payments described in subparagraph (A) and which 
        is in compliance with section 204.
    ``(B) The Commissioner of Social Security shall, in addition to any 
other relevant factors, take into account any mental or linguistic 
limitations of a person (including any lack of facility with the 
English language) in determining whether the person has knowingly 
failed to comply with a requirement of clause (i) or (ii) of 
subparagraph (A).''.
            (2) Amendment to title xvi.--Section 1611(e)(1) of such Act 
        (42 U.S.C. 1382(e)(1)) is amended by adding at the end the 
        following:
    ``(J)(i) A person shall not be considered an eligible individual or 
eligible spouse for purposes of benefits under this title by reason of 
disability, during the 10-year period that begins on the date the 
person--
            ``(I) knowingly fails to timely notify the Commissioner of 
        Social Security, in an application for benefits under this 
        title, of any prior receipt by the person of a benefit under 
        this title or title II in a month in which payment to the 
        person of a benefit under this title was prohibited by--
                    ``(aa) the preceding provisions of this paragraph 
                by reason of confinement of a type described in clause 
                (i) or (ii) of section 202(x)(1)(A); or
                    ``(bb) section 1611(e)(4); or
            ``(II) knowingly fails to comply with any schedule imposed 
        by the Commissioner which is for repayment of overpayments 
        comprised of payments described in clause (i) of this 
        subparagraph and which is in compliance with section 1631(b).
    ``(ii) The Commissioner of Social Security shall, in addition to 
any other relevant factors, take into account any mental or linguistic 
limitations of a person (including any lack of facility with the 
English language) in determining whether the person has knowingly 
failed to comply with a requirement of subclause (I) or (II) of clause 
(i).''.
    (c) Continued Collection Efforts Against Prisoners.--
            (1) Amendment to title ii.--Section 204(b) of such Act (42 
        U.S.C. 404(b)), as amended by subsection (a)(1) of this 
        section, is amended further by adding at the end the following 
        new paragraph:
    ``(3) The Commissioner shall not refrain from recovering 
overpayments from resources currently available to any overpaid person 
or to such person's estate solely because such individual is confined 
as described in clause (i) or (ii) of section 202(x)(1)(A).''.
            (2) Amendment to title xvi.--Section 1631(b)(1)(A) of such 
        Act (42 U.S.C. 1383(b)(1)(A)) is amended by adding after and 
        below clause (ii) the following flush left sentence:
``The Commissioner shall not refrain from recovering overpayments from 
resources currently available to any individual solely because the 
individual is confined as described in clause (i) or (ii) of section 
202(x)(1)(A).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to overpayments made in, and to benefits payable for, months 
beginning 24 months or more after the date of the enactment of this 
Act.

SEC. 206. TREATMENT OF ASSETS HELD IN TRUST UNDER THE SSI PROGRAM.

    (a) Treatment as Resource.--Section 1613 of the Social Security Act 
(42 U.S.C. 1382b) is amended by adding at the end the following:

                                ``Trusts

    ``(e)(1) In determining the resources of an individual, paragraph 
(3) shall apply to a trust (other than a trust described in paragraph 
(5)) established by the individual.
    ``(2)(A) For purposes of this subsection, an individual shall be 
considered to have established a trust if any assets of the individual 
(or of the individual's spouse) are 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 the 
individual's spouse, the portion of the corpus from which payment to or 
for the benefit of the individual or the individual's spouse could be 
made shall be considered a resource available to the individual.
    ``(4) The Commissioner of Social Security may waive the application 
of this subsection with respect to an 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;
            ``(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 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) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2000, and shall apply to trusts established on or 
after such date.

SEC. 207. DISPOSAL OF RESOURCES FOR LESS THAN FAIR MARKET VALUE UNDER 
              THE SSI PROGRAM.

    (a) In General.--Section 1613(c) of the Social 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'';
            (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.
    ``(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--
                    ``(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) Effective Date.--The amendments made by this section shall be 
effective with respect to disposals made on or after the date of 
enactment of this Act.

SEC. 208. ADMINISTRATIVE PROCEDURE FOR IMPOSING PENALTIES FOR FALSE OR 
              MISLEADING STATEMENTS.

    (a) In General.--Part A of title XI of the Social Security Act (42 
U.S.C. 1301 et seq.) is amended by inserting after section 1129 the 
following:

``SEC. 1129A. ADMINISTRATIVE PROCEDURE FOR IMPOSING PENALTIES FOR FALSE 
              OR MISLEADING STATEMENTS.

    ``(a) In General.--Any person who makes, or causes to be made, a 
statement or representation of a material fact for use in determining 
any initial or continuing right to or the amount of--
            ``(1) monthly insurance benefits under title II; or
            ``(2) benefits or payments under title XVI,
that the person knows or should know is false or misleading or knows or 
should know omits a material fact or makes such a statement with 
knowing disregard for the truth shall be subject to, in addition to any 
other penalties that may be prescribed by law, a penalty described in 
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) 6 consecutive months, in the case of a first such 
        determination with respect to the person;
            ``(2) 12 consecutive months, in the case of a second such 
        determination with respect to the person; and
            ``(3) 24 consecutive months, in the case of a third or 
        subsequent such determination with respect to the person.
    ``(d) Effect on Other Assistance.--A person subject to a period of 
nonpayment of benefits under title II or ineligibility for title XVI 
benefits by reason of this section nevertheless shall be considered to 
be eligible for and receiving such benefits, to the extent that the 
person would be receiving or eligible for such benefits but for the 
imposition of the penalty, for purposes of--
            ``(1) determination of the eligibility of the 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 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 
determinations under section 1129A of the Social Security Act 
(including when the applicable period in subsection (c) of such section 
shall commence), and shall provide guidance on the exercise of 
discretion as to whether the penalty should be imposed in particular 
cases.
    (e) Effective Date.--The amendments made by this section shall 
apply to statements and representations made on or after the date of 
the enactment of this Act.

SEC. 209. 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 (42 
U.S.C. 1301-1320b-17) is amended by adding at the end the following:

 ``exclusion of representatives and health care providers convicted of 
       violations from participation in social security programs

    ``Sec. 1148. (a) In General.--The Commissioner of Social Security 
shall exclude from participation in the social security programs any 
representative or health care provider--
            ``(1) who is convicted of a violation of section 208 or 
        1632 of this Act,
            ``(2) who is convicted of any violation under title 18, 
        United States Code, relating to an initial application for or 
        continuing entitlement to, or amount of, benefits under title 
        II of this Act, or an initial application for or continuing 
        eligibility for, or amount of, benefits under title XVI of this 
        Act, or
            ``(3) who the Commissioner determines has committed an 
        offense described in section 1129(a)(1) of this Act.
    ``(b) Notice, Effective Date, and Period of Exclusion.--(1) An 
exclusion under this section shall be effective at such time, for such 
period, and upon such 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 five 
years, except that the Commissioner may waive the exclusion in the case 
of an individual who is the sole source of essential services in a 
community. The Commissioner's decision whether to waive the exclusion 
shall not be reviewable.
    ``(C) In the case of an exclusion of an individual under subsection 
(a) based on a conviction or a determination described in subsection 
(a)(3) occurring on or after the date of the enactment of this section, 
if the individual has (before, on, or after such date of enactment) 
been convicted, or if such a determination has been made with respect 
to the individual--
            ``(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 2 or more previous occasions of one or more 
        offenses for which an exclusion may be effected under such 
        subsection, the period of the exclusion shall be permanent.
    ``(c) Notice to State Agencies.--The 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) 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.
    ``(3) The Commissioner shall promptly notify each State agency 
employed for the purpose of making disability determinations under 
section 221 or 1633(a) of the fact and circumstances of each 
termination of exclusion made under this subsection.
    ``(g) Availability of Records of Excluded 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 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 
                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.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to convictions of violations described in paragraphs (1) 
and (2) of section 1148(a) of the Social Security Act and 
determinations described in paragraph (3) of such section occurring on 
or after the date of the enactment of this Act.

SEC. 210. 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. 211. STUDY ON POSSIBLE MEASURES TO IMPROVE FRAUD PREVENTION AND 
              ADMINISTRATIVE PROCESSING.

    (a) Study.--As soon as practicable after the date of the enactment 
of this Act, the Commissioner of Social 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 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. 212. ANNUAL REPORT ON AMOUNTS NECESSARY TO COMBAT FRAUD.

    (a) In General.--Section 704(b)(1) of the Social Security Act (42 
U.S.C. 904(b)(1)) is amended--
            (1) by inserting ``(A)'' after ``(b)(1)''; and
            (2) by adding at the end the following new 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 Date.--The amendments made by this section shall 
apply with respect to annual budgets prepared for fiscal years after 
fiscal year 1999.

SEC. 213. 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)), as amended by section 205(b)(2) of this Act, is 
further amended by adding at the end the following:
    ``(K) For the purpose of carrying out this paragraph, the 
Commissioner of Social Security shall conduct periodic computer matches 
with data maintained by the Secretary of Health and Human Services 
under title XVIII or XIX. The Secretary shall furnish to the 
Commissioner, in such form and manner and under such terms as the 
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 (K)''.

SEC. 214. ACCESS TO INFORMATION HELD BY FINANCIAL INSTITUTIONS.

    Section 1631(e)(1)(B) of the Social Security Act (42 U.S.C. 
1383(e)(1)(B)) is amended--
            (1) by striking ``(B) The'' and inserting ``(B)(i) The''; 
        and
            (2) by adding at the end the following new clause:
    ``(ii)(I) The Commissioner of Social Security may 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.
    ``(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 Filipino Veterans of World War II

SEC. 251. PROVISION OF REDUCED SSI BENEFIT TO CERTAIN INDIVIDUALS WHO 
              PROVIDED SERVICE TO THE ARMED FORCES OF THE UNITED STATES 
              IN THE PHILIPPINES DURING WORLD WAR II AFTER THEY MOVE 
              BACK TO THE PHILIPPINES.

    (a) In General.--Notwithstanding sections 1611(f)(1) and 
1614(a)(1)(B)(i) of the Social Security Act and sections 401 and 402 of 
the Personal Responsibility and Work Opportunity Reconciliation Act of 
1996, the eligibility of a qualified individual for benefits under the 
supplemental security income program under title XVI of the Social 
Security Act shall not terminate by reason of a change in the place of 
residence of the individual to the Philippines.
    (b) Benefit Amount.--Notwithstanding subsections (a) and (b) of 
section 1611 of the Social Security Act, the benefit payable under the 
supplemental security income program to a qualified individual for any 
month throughout which the individual resides in the Philippines shall 
be in an amount equal to 75 percent of the Federal benefit rate under 
title XVI of such Act for the month, reduced (after disregard of the 
amount specified in section 1612(b)(2)(A) of such Act) by the amount of 
the qualified individual's benefit income for the month.
    (c) Definitions.--In this section:
            (1) Qualified individual.--The term ``qualified 
        individual'' means an individual who--
                    (A) as of the date of the enactment of this Act, is 
                eligible for benefits under the supplemental security 
                income program under title XVI of the Social Security 
                Act on the basis of an application filed before such 
                date;
                    (B) before August 15, 1945, served in the organized 
                military forces of the Government of the Commonwealth 
                of the Philippines while such forces were in the 
                service of the Armed Forces of the United States 
                pursuant to the military order of the President dated 
                July 26, 1941, including among such military forces 
                organized guerrilla forces under commanders appointed, 
                designated, or subsequently recognized by the Commander 
                in Chief, Southwest Pacific Area, or other competent 
                military authority in the Army of the United States; 
                and
                    (C) has not been removed from the United States 
                pursuant to section 237(a) of the Immigration and 
                Nationality Act.
            (2) Federal benefit rate.--The term ``Federal benefit 
        rate'' means, with respect to a month, the amount of the cash 
        benefit (not including any State supplementary payment which is 
        paid by the Commissioner of Social Security pursuant to an 
        agreement under section 1616(a) of the Social Security Act or 
        section 212(b) of Public Law 93-66) payable for the month to an 
        eligible individual with no income.
            (3) Benefit income.--The term ``benefit 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 
        changes his place of residence from the United States to the 
        Philippines.
    (d) Effective Date.--This section shall be effective with respect 
to supplemental security income benefits payable for months beginning 
after the date that is 1 year after the date of the enactment of this 
Act, or such earlier date that the Commissioner of Social Security 
determines is administratively feasible.

                        TITLE III--CHILD SUPPORT

SEC. 301. ELIMINATION OF ENHANCED MATCHING FOR LABORATORY COSTS FOR 
              PATERNITY ESTABLISHMENT.

    (a) In General.--Section 455(a)(1) of the Social Security Act (42 
U.S.C. 655(a)(1)) is amended by striking subparagraph (C) and 
redesignating subparagraph (D) as subparagraph (C).
    (b) Effective Date.--The amendment made by this section shall be 
effective with respect to calendar quarters beginning on or after 
October 1, 1999.

SEC. 302. ELIMINATION OF HOLD HARMLESS PROVISION FOR STATE SHARE OF 
              DISTRIBUTION OF COLLECTED CHILD SUPPORT.

    (a) In General.--Section 457 of the Social Security Act (42 U.S.C. 
657) is amended--
            (1) in subsection (a), by striking ``subsections (e) and 
        (f)'' and inserting ``subsections (d) and (e)'';
            (2) by striking subsection (d);
            (3) in subsection (e), by striking the 2nd sentence; and
            (4) by redesignating subsections (e) and (f) as subsections 
        (d) and (e), respectively.
    (b) Effective Date.--The amendments made by this section shall be 
effective with respect to calendar quarters beginning on or after 
October 1, 1999.

                    TITLE IV--TECHNICAL CORRECTIONS

SEC. 401. TECHNICAL CORRECTIONS RELATING TO 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 413(i)(1) of the Social Security Act (42 U.S.C. 
613(i)(1)) is amended by striking ``part'' and inserting ``section''.
    (e) 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.
    (f) Section 431(a)(6) of the Social Security Act (42 U.S.C. 
629a(a)(6))) is amended--
            (1) by inserting ``, as in effect before August 22, 1986'' 
        after ``482(i)(5)''; and
            (2) by inserting ``, as so in effect'' after 
        ``482(i)(7)(A)''.
    (g) Sections 452(a)(7) and 466(c)(2)(A)(i) of the 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''.
    (h) Section 454 of the Social Security Act (42 U.S.C. 654) is 
amended--
            (1) by striking ``, or'' at the end of each of paragraphs 
        (6)(E)(i) and (19)(B)(i) and inserting ``; or'';
            (2) in paragraph (9), by striking the comma at the end of 
        each of subparagraphs (A), (B), (C) and inserting a semicolon; 
        and
            (3) by striking ``, and'' at the end of each of paragraphs 
        (19)(A) and (24)(A) and inserting ``; and''.
    (i) Section 454(24)(B) of the Social Security Act (42 U.S.C. 
654(24)(B)) is amended by striking ``Opportunity Act'' and inserting 
``Opportunity Reconciliation Act''.
    (j) Section 344(b)(1)(A) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (110 Stat. 2236) 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''.
    (k) Section 457(a)(2)(B)(i)(I) of the Social Security Act (42 
U.S.C. 657(a)(2)(B)(i)(I)) is amended by striking ``Act 
Reconciliation'' and inserting ``Reconciliation Act''.
    (l) Section 457 of the Social Security Act (42 U.S.C. 657) is 
amended by striking ``Opportunity Act'' each place it appears and 
inserting ``Opportunity Reconciliation Act''.
    (m) Section 466(a)(7) of the Social Security Act (42 U.S.C. 
666(a)(7)) is amended by striking ``1681a(f))'' and inserting 
``1681a(f)))''.
    (n) Section 466(b)(6)(A) of the Social Security Act (42 U.S.C. 
666(b)(6)(A)) is amended by striking ``state'' and inserting ``State''.
    (o) Section 471(a)(8) of the Social Security Act (42 U.S.C. 
671(a)(8)) is amended by striking ``(including 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) 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.
                                 <all>