SSI extensions for humanitarian immigrants

Section 402(a)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) is amended by adding at the end the following:

(M)

SSI extensions through fiscal year 2010

(i)

Two-year extension

(I)

In general

Except as provided in clause (ii), with respect to eligibility for benefits for the specified Federal program described in paragraph (3)(A), the 7-year period described in subparagraph (A) shall be deemed to be a 9-year period during fiscal years 2008 through 2010. (II)

Aliens whose benefits ceased in prior fiscal years

(aa)

In general

Beginning on the date of the enactment of the SSI Extension for Elderly and Disabled Refugees Act, any qualified alien rendered ineligible for the specified Federal program described in paragraph (3)(A) during fiscal years prior to fiscal year 2008 solely by reason of the termination of the 7-year period described in subparagraph (A) shall be eligible for such program for an additional 2-year period in accordance with this clause, if such alien meets all other eligibility factors under title XVI of the Social Security Act. (bb)

Payment of benefits

Benefits paid under item (aa) shall be paid prospectively over the duration of the qualified alien’s renewed eligibility. (ii)

Pending naturalization application

With respect to eligibility for benefits for the specified program described in paragraph (3)(A), subsection (a)(1) shall not apply during fiscal years 2008 through 2010 to an alien described in one of clauses (i) through (v) of subparagraph (A), if the alien has submitted an application for naturalization that is pending before the Secretary of Homeland Security, and such submission is verified by the Commissioner of Social Security either by receiving a receipt number from the alien for such submitted application or by receiving confirmation from the Secretary of Homeland Security.

Collection of unemployment compensation debts resulting from fraud

(a)

In general

Section 6402 of the Internal Revenue Code (relating to authority to make credits or refunds) is amended by redesignating subsections (f) through (k) as subsections (g) through (l), respectively, and by inserting after subsection (e) the following new subsection:

(f)

Collection of unemployment compensation debts resulting from fraud

(1)

In general

Upon receiving notice from any State that a named person owes a covered unemployment compensation debt to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary— (A)reduce the amount of any overpayment payable to such person by the amount of such covered unemployment compensation debt; (B)pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and (C)notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a covered unemployment compensation debt.

If an offset is made pursuant to a joint return, the notice under subparagraph (B) shall include the names, taxpayer identification numbers, and addresses of each person filing such return and the notice under subparagraph (C) shall include information related to the rights of a spouse of a person subject to such an offset.

(2)

Priorities for offset

Any overpayment by a person shall be reduced pursuant to this subsection— (A)after such overpayment is reduced pursuant to— (i)subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; (ii)subsection (c) with respect to past-due support; and (iii)subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and (B)before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b).

If the Secretary receives notice from a State or States of more than one debt subject to paragraph (1) or subsection (e) that is owed by a person to such State or States, any overpayment by such person shall be applied against such debts in the order in which such debts accrued.

(3)

Notice; consideration of evidence

No State may take action under this subsection until such State— (A)notifies the person owing the covered unemployment compensation debt that the State proposes to take action pursuant to this section; (B)provides such person at least 60 days to present evidence that all or part of such liability is not legally enforceable or due to fraud; (C)considers any evidence presented by such person and determines that an amount of such debt is legally enforceable and due to fraud; and (D)satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such covered unemployment compensation debt. (4)

Covered unemployment compensation debt

For purposes of this subsection, the term covered unemployment compensation debt means— (A)a past-due debt for erroneous payment of unemployment compensation due to fraud which has become final under the law of a State certified by the Secretary of Labor pursuant to section 3304 and which remains uncollected; (B)contributions due to the unemployment fund of a State for which the State has determined the person to be liable due to fraud; and (C)any penalties and interest assessed on such debt. (5)

Regulations

(A)

In general

The Secretary may issue regulations prescribing the time and manner in which States must submit notices of covered unemployment compensation debt and the necessary information that must be contained in or accompany such notices. The regulations may specify the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. (B)

Fee payable to Secretary

The regulations may require States to pay a fee to the Secretary, which may be deducted from amounts collected, to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. (C)

Submission of notices through Secretary of Labor

The regulations may include a requirement that States submit notices of covered unemployment compensation debt to the Secretary via the Secretary of Labor in accordance with procedures established by the Secretary of Labor. Such procedures may require States to pay a fee to the Secretary of Labor to reimburse the Secretary of Labor for the costs of applying this subsection. Any such fee shall be established in consultation with the Secretary of the Treasury. Any fee paid to the Secretary of Labor may be deducted from amounts collected and shall be used to reimburse the appropriation account which bore all or part of the cost of applying this subsection. (6)

Erroneous payment to state

Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).

(b)

Disclosure of certain information to States requesting refund offsets for legally enforceable state unemployment compensation debt resulting from fraud

(1)

General rule

Paragraph (3) of section 6103(a) of such Code is amended by inserting (10), after (6),. (2)

Disclosure to Department of Labor and its agent

Paragraph (10) of section 6103(l) of such Code is amended— (A)by striking (c), (d), or (e) each place it appears in the heading and text and inserting (c), (d), (e), or (f), (B)in subparagraph (A) by inserting , to officers and employees of the Department of Labor and its agent for purposes of facilitating the exchange of data in connection with a request made under subsection (f)(5) of section 6402, after section 6402, and (C)in subparagraph (B) by inserting , and any agents of the Department of Labor, after agency the first place it appears. (3)

Safeguards

Paragraph (4) of section 6103(p) of such Code is amended— (A)in the matter preceding subparagraph (A), by striking (l)(16), and inserting (l)(10), (16),; (B)in subparagraph (F)(i), by striking (l)(16), and inserting (l)(10), (16),; and (C)in the matter following subparagraph (F)(iii)— (i)in each of the first two places it appears, by striking (l)(16), and inserting (l)(10), (16),; (ii)by inserting (10), after paragraph (6)(A),; and (iii)in each of the last two places it appears, by striking (l)(16) and inserting (l)(10) or (16). (c)

Expenditures from State fund

Section 3304(a)(4) of such Code is amended— (1)in subparagraph (E), by striking and after the semicolon; (2)in subparagraph (F), by inserting and after the semicolon; and (3)by adding at the end the following new subparagraph:

(G)with respect to amounts of covered unemployment compensation debt (as defined in section 6402(f)(4)) collected under section 6402(f)— (i)amounts may be deducted to pay any fees authorized under such section; and (ii)the penalties and interest described in section 6402(f)(4)(B) may be transferred to the appropriate State fund into which the State would have deposited such amounts had the person owing the debt paid such amounts directly to the State;

(d)

Conforming amendments

(1)Subsection (a) of section 6402 of such Code is amended by striking (c), (d), and (e), and inserting (c), (d), (e), and (f). (2)Paragraph (2) of section 6402(d) of such Code is amended by striking and before such overpayment is reduced pursuant to subsection (e) and inserting and before such overpayment is reduced pursuant to subsections (e) and (f). (3)Paragraph (3) of section 6402(e) of such Code is amended in the last sentence by inserting or subsection (f) after paragraph (1). (4)Subsection (g) of section 6402 of such Code, as redesignated by subsection (a), is amended by striking (c), (d), or (e) and inserting (c), (d), (e), or (f). (5)Subsection (i) of section 6402 of such Code, as redesignated by subsection (a), is amended by striking subsection (c) or (e) and inserting subsection (c), (e), or (f). (e)

Effective date

The amendments made by this section shall apply to refunds payable under section 6402 of the Internal Revenue Code of 1986 on or after the date of enactment of this Act.