[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3443 Enrolled Bill (ENR)]

        H.R.3443

                       One Hundred Sixth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,
   the sixth day of January, one thousand nine hundred and ninety-nine


                                 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.

    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.
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.
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. 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 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.
            ``(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.
            ``(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 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 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
            ``(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 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 later than 12 months after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
issue such regulations as may be necessary to carry out the amendments 
made by this section.
    (e) Sense of the Congress.--It is the sense of the Congress that 
States should provide medical assistance under the State plan approved 
under title XIX of the 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 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:
    ``(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.
    (c) Contingency in Enactment.--If the Ticket to Work and Work 
Incentives Improvement Act of 1999 is enacted (whether before, on, or 
after the date of the 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) the subclause (XV) added by subsection (a)(1)(C) of this 
    section--
            (A) is redesignated as subclause (XVII); and
            (B) is amended by striking ``section 1905(v)(1)'' and 
        inserting ``section 1905(w)(1)''; and
        (5) the subsection (v) added by subsection (a)(2) of this 
    section--
            (A) is redesignated as subsection (w); and
            (B) is amended by striking ``1902(a)(10)(A)(ii)(XV)'' and 
        inserting ``1902(a)(10)(A)(ii)(XVII)''.

                Subtitle D--Adoption Incentive Payments

SEC. 131. INCREASED FUNDING FOR ADOPTION INCENTIVE PAYMENTS.

    (a) Supplemental Grants.--Section 473A of the Social Security Act 
(42 U.S.C. 673b) is amended by 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--
            ``(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. 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. 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 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;
        ``(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 Date.--The amendments made by this section shall take 
effect on January 1, 2000, and shall apply to trusts established on or 
after such date.

SEC. 206. DISPOSAL OF RESOURCES FOR LESS THAN FAIR MARKET VALUE UNDER 
              THE SSI PROGRAM.

    (a) In General.--Section 1613(c) of the Social 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) Conforming Amendment.--Section 1902(a)(10) of the Social 
Security Act (42 U.S.C. 1396a(a)(10)), as amended by section 205(c) of 
this Act, is amended by striking ``section 1613(e)'' and inserting 
``subsections (c) and (e) of section 1613''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to disposals made on or after the date of the 
enactment of this Act.

SEC. 207. ADMINISTRATIVE PROCEDURE FOR IMPOSING PENALTIES FOR FALSE OR 
              MISLEADING STATEMENTS.

    (a) In General.--Part A of title XI of the Social Security Act (42 
U.S.C. 1301 et seq.) is amended by 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 who makes such a statement with 
knowing disregard for the truth shall be subject to, in addition to any 
other penalties that may be prescribed by law, a penalty 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 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. 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:


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

    ``Sec. 1136. (a) In General.--The Commissioner of Social Security 
shall exclude from participation in the social security programs any 
representative or health care provider--
        ``(1) who is convicted of a violation of section 208 or 1632 of 
    this Act;
        ``(2) who is convicted of any violation under title 18, United 
    States Code, relating to an initial application for or continuing 
    entitlement to, or amount of, benefits under title II of this Act, 
    or an initial application for or continuing eligibility for, or 
    amount of, benefits under title XVI of this Act; or
        ``(3) who the Commissioner determines has committed an offense 
    described in section 1129(a)(1) of this Act.
    ``(b) Notice, Effective Date, and Period of Exclusion.--(1) An 
exclusion under this section shall be effective at such time, for such 
period, and upon such 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--
        ``(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) 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 
        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.''.
    (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 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.

SEC. 209. 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. 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. 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 Date.--The amendments made by this section shall 
apply with respect to annual budgets prepared for fiscal years after 
fiscal year 1999.

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.
    ``(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. BASIC ENTITLEMENT TO BENEFITS.

    ``Every individual who is a qualified individual under section 802 
shall, in accordance with and subject to the provisions of this title, 
be entitled to a monthly benefit paid by the Commissioner of Social 
Security for each month after September 2000 (or such earlier month, if 
the Commissioner determines is administratively feasible) the 
individual resides outside the United States.

``SEC. 802. QUALIFIED INDIVIDUALS.

    ``Except as otherwise provided in this title, an individual--
        ``(1) who has attained the age of 65 on or before the date of 
    the enactment of this title;
        ``(2) who is a World War II veteran;
        ``(3) who is eligible for a supplemental security income 
    benefit under title XVI for--
            ``(A) the month in which this title is 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. RESIDENCE OUTSIDE THE UNITED STATES.

    ``For purposes of section 801, with respect to any month, an 
individual shall be regarded as residing outside the United States if, 
on the first day of the month, the individual so resides outside the 
United States.

``SEC. 804. DISQUALIFICATIONS.

    ``(a) In General.--Notwithstanding section 802, an individual may 
not be a qualified individual for any month--
        ``(1) that begins after the month in which the Commissioner of 
    Social Security is notified by the Attorney General that the 
    individual has been 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 for Attorney General.--For the purpose of 
carrying out subsection (a)(1), the Attorney General shall notify the 
Commissioner of Social Security as soon as practicable after the 
removal of any individual under section 237(a) or 212(a)(6)(A) of the 
Immigration and Nationality Act.

``SEC. 805. BENEFIT AMOUNT.

    ``The benefit under this title payable to a qualified individual 
for any month shall be in an amount equal to 75 percent of the Federal 
benefit rate under title XVI for the month, reduced by the amount of 
the qualified individual's benefit income for the month.

``SEC. 806. 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. 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 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;
                ``(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.
    ``(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 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
            ``(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. 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
        ``(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. 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. 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 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. 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. 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
            ``(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. 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 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. 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 
        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) 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
                (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:


   ``recovery of social security benefit overpayments from title viii 
                                benefits

    ``Sec. 1147A. 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. 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 have been denied such benefits during each of the 
preceding 10 years.
    (b) Report 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 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.

                    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) 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) 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 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) 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).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.