[Congressional Record (Bound Edition), Volume 145 (1999), Part 10]
[House]
[Pages 14376-14407]
[From the U.S. Government Publishing Office, www.gpo.gov]



                  FOSTER CARE INDEPENDENCE ACT OF 1999

  Ms. PRYCE of Ohio. Mr. Speaker, by direction of the Committee on 
Rules. I call up House Resolution 221 and ask for its immediate 
consideration.
  The Clerk read the resolution, as follows:

                              H. Res. 221

       Resolved, That at any time after the adoption of this 
     resolution the Speaker may, pursuant to clause 2(b) of rule 
     XVIII, declare the House resolved into the Committee of the 
     Whole House on the state of the Union for consideration of 
     the bill (H.R. 1802) to amend part E of title IV of the 
     Social Security Act to provide States with more funding and 
     greater flexibility in carrying out programs designed to help 
     children make the transition from foster care to self-
     sufficiency, and for other purposes. The first reading of the 
     bill shall be dispensed with. Points of order against 
     consideration of the bill for failure to comply with section 
     401(b) of the Congressional Budget Act of 1974 are waived. 
     General debate shall be confined to the bill and shall not 
     exceed 80 minutes, with 60 minutes equally divided and 
     controlled by the chairman and ranking minority member of the 
     Committee on Ways and Means and 20 minutes equally divided 
     and controlled by the chairman and ranking minority member of 
     the Committee on Commerce. After general debate the bill 
     shall be considered for amendment under the five-minute rule. 
     It shall be in order to consider as an original bill for the 
     purpose of amendment under the five-minute rule the amendment 
     in the nature of a substitute recommended by the Committee on 
     Ways and Means. The committee amendment in the nature of a 
     substitute shall be considered as read. Points of order 
     against the committee amendment in the nature of a substitute 
     for failure to comply with section 401(b) of the 
     Congressional Budget Act of 1974 are waived. No amendment to 
     the committee amendment in the nature of a substitute shall 
     be in order except those printed in the report of the 
     Committee on Rules accompanying this resolution. Each 
     amendment may be offered only in the order printed in the 
     report, may be offered only by a Member designated in the 
     report, shall be considered as read, shall be debatable for 
     the time specified in the report equally divided and 
     controlled by the proponent and an opponent, shall not be 
     subject to amendment, and shall not be subject to a demand 
     for division of the question in the House or in the Committee 
     of the Whole. All points of order against the amendments 
     printed in the report are waived. The Chairman of the 
     Committee of the Whole may: (1) postpone until a time during 
     further consideration in the Committee of the Whole a request 
     for a recorded vote on any amendment; and (2) reduce to five 
     minutes the minimum time for electronic voting on any 
     postponed question that follows another electronic vote 
     without intervening business, provided that the minimum time 
     for electronic voting on the first in any series of questions 
     shall be 15 minutes. At the conclusion of consideration of 
     the bill for amendment the Committee shall rise and report 
     the bill to the House with such amendments as may have been 
     adopted. Any Member may demand a separate vote in the House 
     on any amendment adopted in the Committee of the Whole to the 
     bill or to the committee amendment in the nature of a 
     substitute. The previous question shall be considered as 
     ordered on the bill and amendments thereto to final passage 
     without intervening motion except one motion to recommit with 
     or without instructions.

  The SPEAKER pro tempore (Mr. Knollenberg). The gentlewoman from Ohio 
is recognized for 1 hour.
  Ms. PRYCE of Ohio. Mr. Speaker, for the purposes of debate only, I 
yield the customary 30 minutes to the gentleman from Ohio (Mr. Hall), 
pending which I yield myself such time as I might consume. During 
consideration of this resolution, all time yielded is for the purpose 
of debate only.
  Mr. Speaker, House Resolution 221 is a structured rule providing for 
the consideration of H.R. 1802, the Foster Care Independence Act of 
1999. The rule provides for 1 hour of general debate equally divided 
and controlled by the chairman and ranking member of the Committee on 
Ways and Means. An additional 20 minutes of debate time will be equally 
divided and controlled by the chairman and ranking member of the 
Committee on Commerce.
  The rule waives clause 41(b) of the Congressional Budget Act against 
both the bill's consideration and the consideration of the amendment in 
the nature of a substitute recommended by the Committee on Ways and 
Means which the rule makes in order for the purpose of amendment. These 
waivers are required because there are provisions in both bills, in 
both the bill and the substitute amendment, that provide new 
entitlement authority. This

[[Page 14377]]

authority will allow States to provide Medicaid coverage to adolescents 
leaving foster care and allow continued SSI benefits to certain 
Filipino veterans who fought in World War II, two worthwhile causes.
  The Committee on Rules heard testimony yesterday which revealed that 
there is little controversy surrounding H.R. 1802; however, a few 
amendments were filed with the Committee on Rules which would make 
minor but important changes to the legislation. Of the six amendments 
filed, two were withdrawn, and three were made in order. One other 
amendment, which pertained to the Higher Education Act, was not germane 
to the bill.
  The amendments made in order under the rule are printed in the 
Committee on Rules report. The amendments will be considered in the 
order specified by the report, if offered by the Member designated, and 
are debatable for the time indicated in the report.
  Debate on each amendment will be equally divided between a proponent 
and an opponent, and the amendment shall not be subject to amendment or 
to a demand for division of the question.
  To assure efficient consideration of the Foster Care Independence 
Act, the rule allows the Chair to postpone votes and reduce voting time 
to 5 minutes on a postponed question as long as it follows a 15-minute 
vote.
  Finally, the rule provides for a motion to recommit with or without 
instructions.
  Mr. Speaker, we have a crisis in this Nation which can be seen on the 
faces of thousands of children who are languishing in our foster care 
system. As an adoptive mother, I know firsthand the joy of opening 
one's heart and their home to a child. It is heartbreaking to look into 
the eyes of children who are so desperate to have someone to call mom 
or dad, to have a place to call home and to have a sense of peace that 
comes with permanency.
  In 1997, Congress tried to help these children by passing legislation 
to facilitate the adoption of children in foster care. As a result, the 
dream of a permanent family and a loving home is becoming a reality for 
more and more children. Yet despite our best efforts to streamline the 
system and find willing families to adopt these kids, the reality is 
that there are thousands of children who will never leave the foster 
care system during their childhood.
  Every year approximately 20,000 adolescents are forced out of the 
foster care system because they have reached the age of 18. On their 
18th birthday they are emancipated and left to their own devices to 
create a life for themselves, often with no one to rely on for 
emotional, financial or moral support. It is not surprising that these 
young people are more likely to quit school, be unemployed, have 
children out of wedlock, end up on welfare or in jail. Without a 
support system, these kids often develop mental health problems, become 
dependent on drugs or turn to lives of delinquency and crime that put 
them at great risk of violence.
  We simply cannot turn our backs on these young people. As parents, we 
do not cut off our children once they turn 18, although I think it is 
safe to say that even if we did, our children would have a better 
chance at survival than the products of the foster care system. These 
adolescents, more than most, need personal support and a helping hand 
if they are going to succeed in adulthood, and it is common sense to 
make a small investment in these kids to ensure they become productive 
taxpaying citizens who can make contributions to society rather than 
become lifelong dependents on the government.
  The Foster Care Independence Act doubles the money available to the 
States for the independent living program to help children make the 
transition from foster care to self-sufficiency. The bill expands this 
program to provide assistance to former foster kids between the age of 
18 and 21 by helping them prepare for secondary education, plan a 
career or train for a job. These programs also may offer personal and 
emotional support through mentors as well as offer financial assistance 
and housing.
  Under the bill States are encouraged, though not required, to provide 
health care coverage through Medicaid to young adults who have left 
foster care. H.R. 1802 also increases the amount of savings children 
may accumulate and still be eligible for foster care payments. It makes 
little sense to discourage kids from saving some money to prepare for 
the day when they will be on their own. This legislation allows 
children to remain eligible for foster care assistance if they have 
resources up to $10,000.
  To encourage innovation the bill provides flexibility to States and 
localities so that they can build on their own unique strengths and 
utilize their existing resources to meet the purposes of the 
independent living program. There are only a few requirements States 
are expected to meet, including a 20 percent match of Federal dollars. 
By requiring a State investment in a program, H.R. 1802 encourages wise 
use of funds. States also are expected to collect data and report 
outcome measures so that the Federal Government can assess what is 
working.
  In addition to the worthwhile goals of this legislation with regard 
to foster children, the bill incorporates a number of reforms that will 
reduce fraud and inefficiency in the SSI program. The SSI program has 
been on the General Accounting Office's list of programs that are at 
high risk for fraud and abuse. Reforms of H.R. 1802 will save taxpayers 
nearly a quarter of a billion dollars over 5 years.
  I hope my colleagues will agree with me on the merits of the Foster 
Care Independence Act which furthers the cause of good government by 
providing assistance to the neediest in our society while safeguarding 
the taxpayers' dollars by attacking fraud and abuse in government 
programs.
  Mr. Speaker, a childhood spent in foster care is enough of a 
challenge for one lifetime. Let us help these children find a brighter 
future in their adulthood. I urge my colleagues to support this fair 
rule and passage of the Foster Care Independence Act.

                              {time}  0930

  Mr. Speaker, I reserve the balance of my time.
  Mr. HALL of Ohio. Mr. Speaker, I yield myself such time as I may 
consume, and I thank the gentlewoman from Ohio (Ms. Pryce) for yielding 
me this time.
  This is a structured rule. It will allow for consideration of H.R. 
1802, which is a bill that increases spending for the Federal program 
which provides job training and other services to foster children.
  This rule provides one hour of general debate to be equally divided 
and controlled by the chairman and ranking minority member of the 
Committee on Ways and Means. The rule permits only 3 amendments.
  Most of us agree that primary support for children must come from 
their parents. However, when children do not have parents, the 
responsibility often falls to the State. Unfortunately, we do not 
always do a good enough job, especially for older children and for 
children who have left foster care and are trying to live on their own.
  This bill doubles the funding for the Independent Living Program from 
$70 million to $140 million. This program helps foster children make 
the transition from foster care to living on their own, and it requires 
States to use a portion of these funds for children who have left 
foster care up to the age of 21. It makes a number of other changes 
aimed at improving the lives of foster children, including helping 
children save for education or other essentials.
  This bill is the product of 2 years of hearings by the Committee on 
Ways and Means and extensive consultation with government agencies and 
private organizations. It is a bipartisan bill with the support of 
House Democrats and the administration.
  The rule is very restrictive, because it makes in order only 3 
amendments. However, there are special circumstances which make this 
rule acceptable. The Committee on Rules made in order all germane 
amendments which were submitted in advance. Moreover, the bill is a 
bipartisan effort that was drafted in an open committee

[[Page 14378]]

process. Therefore, I support the rule, and I urge Members to vote for 
the rule and the bill.
  Mr. Speaker, I reserve the balance of my time.
  Ms. PRYCE of Ohio. Mr. Speaker, I yield such time as he may consume 
to the gentleman from California (Mr. Dreier), the distinguished 
chairman of the Committee on Rules.
  Mr. DREIER. Mr. Speaker, I rise to congratulate both of my friends 
from Ohio for their superb management of this very important rule. To 
me, this bipartisan rule represents perfectly the bipartisan nature of 
this legislation.
  I think in the testimony yesterday delivered before the Committee on 
Rules, the gentleman from Maryland (Mr. Cardin) said it best when he 
said, would a parent, upon seeing their child turn 18, all of a sudden 
take that child and throw them out and provide them no direction and no 
assistance whatsoever. And the answer is a resounding ``no.''
  This legislation is designed to provide the States with flexibility 
within a framework that will ensure that many of the problems that 
those young people, once they reach the age of 18, have been facing, 
will, in fact, be addressed. It increases, in fact doubles, the level 
of funding for the program, and at the same time realizes that we 
cannot micromanage it from here in Washington, D.C. Every year, the 
figures that we have seen show that there are about 20,000 adolescents 
who leave the foster care program simply because they have reached the 
age of 18, and they are then expected to provide full support for 
themselves.
  We know that there are many people who are between the ages of 18 and 
21 who end up facing serious problems. In fact, they are inclined to 
quit school once they have come out of this program, to be unemployed, 
to be on welfare, to have mental health problems, to be parents outside 
of marriage, to be arrested, to be homeless, to be victims of violence 
and other crimes. As a Nation, we obviously want to do everything that 
we can to mitigate those sorts of challenges that are there.
  So I simply would like to congratulate again the managers of the rule 
for helping us put together what is a structured, bipartisan rule for 
very important bipartisan legislation.
  Mr. HALL of Ohio. Mr. Speaker, I yield such time as he may consume to 
the gentleman from Maryland (Mr. Cardin), one of the main sponsors of 
this bill, and certainly one of the guiding lights behind it, along 
with the gentlewoman from Connecticut (Mrs. Johnson).
  Mr. CARDIN. Mr. Speaker, let me thank my friend from Ohio for 
yielding me this time.
  This rule gives the Members of this body a rare opportunity: A chance 
to vote for legislation that has the enthusiastic support of the 
President of the United States and the majority whip of this body.
  The Foster Care Independence Act has received its broad-based support 
because there is a general recognition that we are not doing enough for 
the 20,000 children who age out of foster care every year.
  I want to inform my colleagues that the information that they may 
have received from the American Public Human Services Association on 
H.R. 1802 is very misleading. First, contrary to their letter sent to 
our congressional offices yesterday, H.R. 1802 provides increased 
Independent Living funds for every State, except South Dakota and the 
District of Columbia. The only reason why South Dakota and the District 
of Columbia do not receive increased funding is because we are updating 
the number of children in foster care for the formula that is currently 
about 15 years old, and both of those jurisdictions have had a 
reduction in the number of children in foster care.
  Second, the same number overstates the number of States and the 
overall funding impacted by the bill's changes in the child support 
hold harmless provision.
  Third, the letter's suggestion that States should be allowed to 
continue Medicaid coverage under SSI-related eligibility criteria for 
individuals denied SSI is already addressed by the manager's amendment 
which will be made in order when we adopt this rule.
  Mr. Speaker, I urge the adoption of this rule and the adoption of the 
Foster Care Independence Act.
  Mr. HALL of Ohio. Mr. Speaker, I yield back the balance of my time.
  Ms. PRYCE of Ohio. Mr. Speaker, I yield myself such time as I may 
consume.
  In closing, there is little controversy surrounding this rule or the 
underlying bipartisan legislation which will help us meet the needs of 
some of our most vulnerable citizens, children who have spent their 
lives in the foster care system. I hope all of my colleagues can see 
the wisdom of investing some Federal dollars in the programs that will 
prevent more young people from falling through the cracks once they 
turn 18 and leave foster care. Let us give them a fighting chance at 
some success and happiness in life.
  Mr. Speaker, I urge a ``yes'' vote on the rule and the Foster Care 
Independence Act.
  Mr. Speaker, I yield back the balance of my time, and I move the 
previous question on the resolution.
  The previous question was ordered.
  The resolution was agreed to.
  A motion to reconsider was laid on the table.
  The SPEAKER pro tempore (Mr. Knollenberg). Pursuant to House 
Resolution 221 and rule XVIII, the Chair declares the House in the 
Committee of the Whole House on the State of the Union for the 
consideration of the bill, H.R. 1802.

                              {time}  0938


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the State of the Union for the consideration of the bill 
(H.R. 1802) to amend part E of title IV of the Social Security Act to 
provide States with more funding and greater flexibility in carrying 
out programs designed to help children make the transition from foster 
care to self-sufficiency, and for other purposes, with Mr. LaHood in 
the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. Pursuant to the rule, the bill is considered as having 
been read the first time.
  Under the rule,the gentlewoman from Connecticut (Mrs. Johnson) and 
the gentleman from New York (Mr. Rangel) each will control 30 minutes, 
and the gentleman from Pennsylvania (Mr. Greenwood) and the gentleman 
from Michigan (Mr. Dingell) each will control 10 minutes.
  The Chair recognizes the gentlewoman from Connecticut (Mrs. Johnson).
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield myself such time 
as I may consume.
  Mr. Chairman, I am grateful for this opportunity to present to the 
House H.R. 1802, the Foster Care Independence Act of 1999. H.R. 1802 
provides important help to children who are leaving foster care so that 
they can establish themselves as self-reliant adults. The goal is to 
prepare these young people to be able to move into the work force or to 
continue with their education on the very day they leave foster care. 
These children face very difficult problems and we must create programs 
to help them learn to be self-reliant.
  I want to thank my colleagues and lead cosponsor, the gentleman from 
Maryland (Mr. Cardin) for his leadership in drafting this legislation. 
His great interest in these young people, and knowledge of their 
problems and of the current programs has made him an invaluable 
coauthor of this legislation. The gentleman from Maryland and I have 
also worked with numerous highly qualified and experienced people in 
the administration, State governments, and private and nonprofit 
sectors, and have gained from their experience. Consequently, this bill 
enjoys broad bipartisan support and is endorsed by the administration.
  Our bill contains five central innovations. First of all, we double 
the money available to the States for helping children leaving foster 
care establish themselves as adults.
  Second, we require States to in effect conduct two programs, one for 
adolescents before they leave foster care, and

[[Page 14379]]

a second program for young adults who have left foster care and are in 
the process of establishing themselves as independent adults.
  Third, we require States to prepare every adolescent in foster care 
by age 18 to either get a job or attend an institution of higher 
education. On the very day they leave foster care, it is our 
expectation that State programs will have these children ready to 
follow one or both of these paths.
  Fourth, we have worked with the Committee on Commerce to modify 
Medicaid law so that many of the 18, 19, and 20 year olds who leave 
foster care may receive Medicaid coverage.
  And fifth, we raise the asset level so that these young people can 
save as they work in high school for a security deposit on an 
apartment, down payment on insurance on a car, and build a cushion for 
life's inevitable challenges.
  The services States must provide to these young people so they will 
succeed are broad: Assistance in obtaining high school diploma; 
postsecondary education; career exploration, vocational training, job 
placement and retention; training in daily life skills; budgeting; 
substance abuse prevention education; education in preventive health 
care, including smoking avoidance; nutrition education; pregnancy 
prevention; and for the first time, foster children must be involved in 
designing their program and accepting personal responsibility for 
carrying it out.
  Lastly, States must coordinate their independent living programs with 
their school-to-work programs, other work force training programs, 
community college and university programs, and other relevant programs 
like abstinence training.
  Finally, let me briefly outline the contents of the manager's 
amendment. Actually, I am going to skip through this in defense to many 
who want to speak on this bill and just mention that one of the things 
that we do in this bill is to authorize additional payments to States 
for increasing their rate of adoptions. The amount of bonus money we 
appropriated in previous legislation is inadequate because States have 
done such a remarkable job of increasing the number of adoptions of 
children in foster care.
  Mr. Chairman, many of these kids have suffered more hard knocks in 
their lives than any of us ever will, but they have skills and 
abilities. They have dreams and hopes. Many of them are an inspiration. 
They not only deserve our support, but they are a good investment. 
Today, two-thirds do not complete high school, 61 percent have no job 
experience, and 38 percent are diagnosed emotionally disturbed. Most 
end up jobless, addicted, pregnant, or in jail. That is a terrible 
thing, to waste a child's life when they are filled with the same 
abilities and dreams that our own children are.
  We can and must change that. With common sense and resources, with 
focus on work and education, with just good care, common sense and 
concern, these kids can fulfill their dreams like all American children 
should be able to.
  Mr. Chairman, I am pleased to present this legislation to the Members 
today.
  Mr. Chairman, I reserve the balance of my time.
  Mr. RANGEL. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, first let me commend the gentlewoman from Connecticut 
(Mrs. Johnson) and the ranking member, the gentleman from Maryland (Mr. 
Cardin) for seeing a serious problem and working together in a 
bipartisan way to find a solution that Members on both sides of the 
aisle would be anxious and proud to support.
  Most all of us know as parents that a child becoming 18 does not 
necessarily mean that they are ready to assume the responsibility of 
adulthood. This is especially so for those children who find themselves 
in foster homes where most of the benefits would just be terminated 
because they are 18 but not out of foster homes.
  This legislation gives them a chance to get their lives together, 
allows the State to continue to give Medicaid support, and allows them 
also to give the type of assistance that is necessary so that they will 
be more able to adapt to negotiate adulthood, in seeking jobs and 
entering into society.

                              {time}  0945

  This has been paid for by provisions to amend and improve the 
supplementary Social Security Income program. Most of these provisions 
that are paid for have been requested by the SSA, and also a provision 
on child support from President Clinton's budget.
  Nearly 20,000 children out of our foster care system are placed in 
high risk of homelessness and sometimes are the perpetrators as well as 
the victims of crime.
  As the gentlewoman from Connecticut (Mrs. Johnson) has pointed out, 
this legislation provides the tools of education, it provides the 
continued health coverage, it provides for the ability for them to find 
a place to live so that they can become productive and independent.
  I cannot thank the Members enough for their work, the gentlewoman 
from Connecticut (Mrs. Johnson) and the gentleman from Maryland (Mr. 
Cardin). As the gentlewoman from Connecticut has pointed out, it has 
broad-based support: The Child Welfare League of America, the 
Children's Defense Fund, and of course, President Clinton.
  Mr. Chairman, I yield the remainder of my time to the gentleman from 
Maryland (Mr. Cardin), the ranking member of the Subcommittee on Human 
Resources, and I ask unanimous consent that he be allowed to allocate 
the time.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
New York?
  There was no objection.
  Mr. GREENWOOD. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I also would like to commend the gentlewoman from 
Connecticut (Mrs. Johnson) and the gentleman from Maryland (Mr. Cardin) 
for their excellent work on this legislation.
  The Committee on Ways and Means had primary jurisdiction for this 
legislation. I am here as a member of the Committee on Commerce because 
in the Committee on Commerce we have jurisdiction for Medicaid, and 
this bill quite intelligently and compassionately extends the 
opportunity for States to extend Medicaid eligibility to foster 
children during their 18th, 19th, and 20th years.
  I am also here because prior to my commitment to public service, I 
was a foster care worker. I worked with these very children. It was my 
job to identify children who were physically abused, who were 
neglected, who were in many cases sexually abused. If it was not safe 
or in the children's interest for them to remain with their biological 
parents, we went to court and got custody of these children, and tried 
our best to find good foster homes.
  The foster care system in America is the system that we use to 
compassionately come to the rescue of these children, who have had the 
most, in many cases, horrific and tragic childhoods. But the problem 
with our foster care system, as good as it is up until that 18th year, 
is that suddenly and arbitrarily we withdraw support from children.
  I have watched these children age out of the system. I have seen how 
one day, up until their 18th birthday, they are in a foster home, they 
have a bedroom, they have a refrigerator, they have a mom and a dad, 
and the next day they are on their own, they are out into the cold, 
fending for themselves. Maybe they have a low-paying job, maybe they do 
not. Maybe they have a place to live, maybe they do not. It is sad.
  When we think of ourselves as parents, how many of us with our 
children, who have the fortune to have had good, stable upbringings 
where they are loved, how many of us say, here is your 18th birthday 
card, hit the street? We do not do that. Certainly for those kids who 
are most vulnerable, who have the most emotional and sometimes physical 
scars, we should not be so callous, as well. This bill reverses that.
  If we look at any of the dysfunctional characteristics of people in 
America, over and over again the data shows

[[Page 14380]]

that the primary predicter for all kinds of dysfunctional behavior, 
substance abuse, criminal behavior, mental health problems, is a 
childhood of trauma and abuse. We know these children coming out of 
foster care very frequently are the kids who most need help in 
transition.
  Many of them have been involved in much needed and very important 
mental health therapy. They have been going to a counselor to talk 
about their sexual abuse that they have received at the hands of a 
parent, or their physical abuse. And again, at the age of 18, without 
this legislation, we stop that arbitrarily and not only send them out 
into the streets without any physical help, but without any 
psychological help as well.
  Again, this legislation wisely would permit the transition for these 
children to continue to have mental health therapy, if that is what 
they need.
  Mr. Chairman, I have not been a caseworker since 1980. That is 19 
years ago. I still have some of my kids call me. They call me at home 
on holidays, they come into my congressional office. Most of them are 
doing okay. Some of them are still, 20 years after being released from 
foster care, still on the streets, still struggling because they did 
not have the help that they needed in making that transition.
  This legislation is consistent with other changes that we have made 
in social welfare policy, where we no longer encourage or even tolerate 
people to remain with lives of dependency, but nor do we suddenly and 
arbitrarily pull the rug out from under them; but rather, we help 
people who are in need to transition from the time in their lives where 
they need support from others to a time in their lives where they can 
successfully transcend their dependency and become independent.
  Again, I commend the authors of this legislation. We think this 
legislation is wise and compassionate.
  Mr. Chairman, I reserve the balance of my time.
  Mr. CARDIN. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I want to first compliment the gentlewoman from 
Connecticut (Mrs. Johnson) for her leadership on this legislation.
  As chair of the committee, she held early hearings so that we could 
establish the record that we all knew would be there that we are not 
doing enough for the children aging out of foster care. Due to her 
leadership, we are able to bring forward a bill that is supported by 
both the Democrats and the Republicans, and has the strong support of 
the Clinton administration.
  I want to also compliment Ron Haskins, the majority staff person, 
Nick Gwyn, the Democratic staff, for the work they have done in 
bringing this bill to the point where it enjoys very, very broad 
support.
  Mr. Chairman, we are here today because we are the parents of 
children aging out of foster care. We are responsible for them. Twenty 
thousand children every year age out of foster care. These children are 
very vulnerable. In many cases they were removed from their natural 
parents because of abuse, neglect, or abandonment. They may have been 
in two, three, four, five, or more foster homes during their childhood. 
Now they turn 18 and we say they are on their own.
  How many of us as parents tell our children at 18 that they are on 
their own? We have a responsibility. These children are very vulnerable 
at the age of 18. In many cases, they lack housing. They have poor 
employment prospects, inadequate educational achievement, absence of 
health care coverage, and tragically, many have substance abuse and 
will become homeless.
  The legislation that we bring forward contains five major provisions 
in order to deal with this circumstance. First, we double the amount of 
money available in the independent living program from $70 million to 
$140 million. We expand counseling services, not just for children over 
the age of 18 but for children under the age of 18, so they can be 
prepared upon reaching that age to be more self-sufficient.
  We expand educational opportunity, training, job accomplishment, and 
other resources available so that they have a better chance to be able 
to make it in independent living.
  Second, for the first time we allow the use of independent living 
program funds for housing assistance for children aging out of foster 
care between the ages of 18 and 21. This is a major change in Federal 
law. It acknowledges that 18-year-olds coming out of foster care have 
difficulty finding adequate and safe housing. Yes, many end up homeless 
today, and we want to do something about that.
  Third, the legislation allows an 18-year-old to have a little bit 
more money in the bank. Under current law the limit is $1,000, almost 
penniless, expected to make it on their own. This bill allows a foster 
child to at least accumulate up to $10,000 so they may have some money 
in order to put down a deposit on an apartment or to be able to get an 
automobile for transportation, so they can make it in the real world.
  Fourth, the legislation improves the data and research on children in 
foster care. Mr. Chairman, we have a responsibility to establish 
reasonable goals of what we want to achieve in our foster care program. 
Yet, we do not have the information today in order to evaluate that.
  This legislation will give us the tools to be able to assess what the 
Federal programs should be accomplishing and to hold our local 
governments accountable to reasonable results.
  Fifth and last, it allows the States to provide Medicare coverage for 
those children between the ages of 18 and 21. A recent study shows that 
as much as 44 percent in that age group are having great difficulty 
finding health insurance.
  Mr. Chairman, this legislation is not without cost. It has been 
scored to cost $500 million over 5 years. The legislation is paid for, 
which we think is the responsible thing to do. We have done that in a 
way that we think adds to the benefit of the legislation before us, 
first by curbing abuse in SSI fraud so that we can make the system more 
accountable; secondly, by allowing veterans of World War II to collect 
SSI at a reduced amount if they desire to return to their homeland; and 
third, by repealing the child support hold harmless provisions that 
were put in the law during welfare reform in 1995.
  I think all of us know that welfare rolls have dropped dramatically 
since 1995. The hold harmless, which was questionable when it was put 
into the law, certainly today tends to provide more Federal resources 
than the States actually spend in child support enforcement, but we 
decided to do a good thing in repealing the hold harmless.
  That is, we adopted an approach in the manager's amendment that was 
suggested by the gentleman from Wisconsin (Mr. Kleczka) to reward those 
States that passed through their child support collections to the 
families, to the families coming off of welfare, so we encourage the 
family units; so that the noncustodial parent believes, and rightly so, 
that he or she is part of supporting the family.
  Mr. Chairman, this is good legislation. I encourage my colleagues to 
support H.R. 1802.
  Mr. Chairman, I reserve the balance of my time.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield 2 minutes to the 
gentleman from Florida (Mr. Foley), a member of the subcommittee.
  Mr. FOLEY. Mr. Chairman, let me very much thank the gentlewoman from 
Connecticut (Mrs. Johnson) for her chairmanship of this important 
committee, and the ranking member, the gentleman from Maryland (Mr. 
Cardin), for their hard work on this important bill, the Foster Care 
Independence Act of 1999.
  We can all remember how hard growing up can be. Fortunately for most 
of us we had loving and supportive of family and parents to nurture, 
encourage, and teach us how to gradually enter adulthood. I could never 
imagine the feelings of fear or uncertainty that a foster care 
approaching his or her 18th birthday must have. While most teens are 
celebrating their graduation from high school and working at part-time 
jobs while they anxiously wait to leave for college, foster children 
are trying to figure out how to find a job and who

[[Page 14381]]

will pay enough to put a roof over their head and to put food on their 
own table.
  Last year Florida had 3,103 youths who were eligible for independent 
living programs. Although some of these kids have foster parents who 
stick with them and are willing to help, including giving them money 
out of their own pockets, many have been shuffled around so much that 
they do not have anyone to turn to.
  These foster children have barely been able to be kids, and suddenly 
they are forced to become instant adults. It is no wonder that many of 
them end up on the streets or on welfare, or as teenaged parents.
  By getting States to provide 18- to 21-year-old foster children with 
job training, job skills, financial planning classes, information on 
higher education, counseling, life skills, housing, and health care, we 
are giving these kids a better chance to become responsible adults. We 
are giving them a chance to have a life that is not characterized by 
fear and by hardship.

                              {time}  1000

  We are giving them their independence, not only from their foster 
parents, but from Federal assistance. But we are also preparing them to 
handle this independence and to make choices that lead to positive 
results.
  My own State of Florida has already provided Medicaid and tuition 
assistance to older foster children. There are many programs that teach 
independent living skills. However, we can not always reach all of the 
children that need these services or provide all of the programs in 
every area of the State. This bill will enhance the ability. It will 
give foster children a chance.
  I urge passage of this very, very important legislation.
  Mr. BROWN of Ohio. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I want to commend the gentleman from Virginia (Chairman 
Bliley) and the gentleman from Florida (Chairman Bilirakis) for taking 
swift action on the Foster Care Independence Act of 1999. I thank my 
colleagues on the Committee on Ways and Means, the gentleman from Texas 
(Mr. Archer) and the gentleman from New York (Mr. Rangel), for taking 
up this bill, which will provide financial assistance for former foster 
care children between the ages of 18 and 21.
  As these young people age out of foster care without a permanent 
family or a structure of continued support, they can face problems with 
the social, emotional, and basic skills necessary for self-sufficiency. 
By increasing the availability of services designed to improve the 
transition into independent living, such as budgeting, career planning, 
and safe housing, these young people can face a brighter future.
  By increasing funding for the Independent Living Program, this bill 
would provide Ohio's and my State's foster care children with 10 
percent more funding, increasing that funding from $2.8 million to $3.2 
million.
  In addition to providing financial support for adolescents leaving 
foster care homes, this bill would give States the option of providing 
Medicaid benefits to these teenagers until they reach the age of 21. 
The security of comprehensive health insurance is critical, not only 
for their health, but to give them the freedom to concentrate on 
preparing for the future.
  Young people leaving the foster care system who are just starting out 
on their own need our assistance. This will do just that. I urge my 
colleagues to support its passage.
  Mr. Chairman, I reserve the balance of my time.
  Mr. GREENWOOD. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman 
from Missouri (Mr. Blunt).
  Mr. BLUNT. Mr. Chairman, I thank the gentleman from Pennsylvania for 
yielding me this time.
  I want to join with my colleagues in encouraging support of this 
bill. This bill really provides significant transition that is not 
readily there for foster kids who, by the time they reach 18, have, on 
many occasions, if not most occasions, faced more adversity than most 
of us face in a lifetime: the insecurity of the life as a foster child, 
the not knowing the situation with one's parents, the not knowing what 
may come next.
  In fact, statistics show that foster kids do have greater problems as 
adults with alcoholism, with homelessness, with crime, with poverty. 
This bill helps give that independent living transition the leg up that 
is needed.
  The gentleman from Ohio (Mr. Brown) just talked about the importance 
of continuation of health insurance. Many, many kids in our society 
have health insurance from 18 to 21, or maybe even 18 until 23 because 
they are continuing their education, and their parents are able to 
extend their coverage to them. That is not available to foster 
children. So foster children, during that time of transition, during 
that decision about further schooling, have to deal with this critical 
question of health care and insurance as well. This helps bridge part 
of that gap. This is a bill that really does address the needs of 
foster kids.
  This Congress needs to be committed to foster care. The gentleman 
from Texas (Mr. DeLay), the majority whip, is a foster parent. He and 
his wife have foster children. Others in this body have really been 
leaders in trying to extend to foster care and foster children the care 
that is missing in their life.
  This Congress can show we care today about these kids. We care about 
what happens to them as they make that transition often, and most often 
without the benefit of that parental involvement in their life, the 
transition to the work force, transition to adult responsibility, a 
transition to taking care of themselves. This bill helps make that 
happen.
  I urge my colleagues to support it.
  Mr. CARDIN. Mr. Chairman, I am now pleased to yield 3 minutes to the 
gentleman from California (Mr. Filner), the sponsor of legislation that 
is incorporated in the legislation we have before us that gives 
flexibility to our veterans.
  Mr. FILNER. Mr. Chairman, I thank the gentleman from Maryland for 
yielding me this time.
  Mr. Chairman, I want to speak to one provision of H.R. 1802, a 
provision introduced as H.R. 26, which, for the Record, was originally 
sponsored by the distinguished gentleman from New York (Mr. Gilman), 
chairman of the Committee on International Relations.
  I thank the gentlewoman from Connecticut (Ms. Johnson) and the 
gentleman from Maryland (Mr. Cardin) for taking this legislation, 
broadening it, and fitting it into this bill today.
  The provision I am speaking of allows Filipino World War II veterans, 
and others currently on SSI and living in the United States, to return 
to the Philippines if they wish to do so, taking a portion of their SSI 
with them.
  When many Filipino World War II veterans immigrated to the United 
States, they thought they would get full veterans benefits once they 
arrived here to allow them to live in dignity. However, they were 
denied these benefits, and many are living alone and in poverty today, 
unable to bring their families here with them to the United States.
  So this legislation will allow those who wish to return to the 
Philippines to be with their loved ones in their final days to do so. 
This is a humanitarian gesture and one which finally recognizes these 
soldiers as true veterans.
  It will also save us money. It is possible that as much as $30 
million a year could be saved.
  As many of my colleagues know, during World War II, the military 
forces of the Commonwealth of the Philippines served in our Armed 
Forces by Executive Order of the President of the United States. With 
their vital participation so crucial to the outcome of this war, one 
would assume that the United States would be grateful to their Filipino 
comrades. So it is hard to believe that, soon after the war ended, the 
79th Congress voted to take away those benefits and recognition that 
Filipino World War II veterans were promised earlier.
  Over 50 years have passed since that action took place, 50 long years 
in which Filipino veterans and their sons

[[Page 14382]]

and daughters have been waiting for justice. Two hundred nine 
cosponsors of last year's Filipino Veterans Equity Act, again 
introduced by the gentleman from New York (Mr. Gilman), have asked our 
colleagues to correct these injustice that veterans have endured.
  This bill is a significant step on behalf of many of these brave 
colleagues who served side by side with the forces from the United 
States. Let us join together in this bipartisan effort to correct this 
monumental injustice. I urge my colleagues to support H.R. 1802.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield 2 minutes to the 
gentleman from New York (Mr. Gilman), who is chairman of the Committee 
on International Relations, but for today's purpose introduced the 
legislation that is bringing to our Filipino veterans really a very 
humane and wonderful option. I thank the gentleman from New York for 
his work.
  Mr. GILMAN. Mr. Chairman, I thank the gentlewoman from Connecticut 
for yielding me this time, and I thank her for her kind remarks.
  Mr. Chairman, this Foster Care Independence Act is an excellent act, 
and I commend the gentlewoman from Connecticut (Mrs. Johnson) and the 
gentleman from Maryland (Mr. Cardin) for their bipartisan leadership on 
this important measure.
  This legislation accomplishes three worthy goals. First, it makes 
changes to Federal foster care programs by providing additional funding 
that is needed, as well as granting greater flexibility for various 
States to help prepare foster care teenagers for independent living 
once they leave the program at age 18.
  Second, this measure establishes additional procedures to crack down 
on fraud and abuse within the Supplemental Security Income Program.
  Finally, this legislation incorporates language from a bill that I 
introduced, along with the gentleman from California (Mr. Filner), H.R. 
26, which permits Filipino World War II veterans who currently are 
recipients of SSI benefits to be able to retain those benefits if they 
decide to return to their homes in the Philippines.
  Each Filipino veteran who chooses to do this will still have his SSI 
benefits, but at a 25 percent reduced rate to reflect the lower cost of 
living in the Philippines.
  I want to thank the gentlewoman from Connecticut (Mrs. Johnson), the 
chairman of the Subcommittee on Human Resources, and the gentleman from 
Maryland (Mr. Cardin), the ranking member, for permitting our Filipino 
veterans the opportunity to testify on this measure at their hearing 
earlier this year, and for incorporating our language in H.R. 26 in the 
overall bill.
  It is estimated that several thousand Philippine veterans will be 
affected by this change in law. Many of these veterans are financially 
unable to petition their families to immigrate for our country, causing 
them to live alone. When this bill is adopted, these veterans are going 
to be able to return to their families in the Philippines, bringing a 
decent income with them.
  Accordingly, I urge my colleagues to fully support this worthy 
measure.
  Mr. CARDIN. Mr. Chairman, I am pleased to yield 2 minutes to the 
gentleman from Guam (Mr. Underwood), who has also been very actively 
involved in helping our Filipino veterans.
  Mr. UNDERWOOD. Mr. Chairman, I rise today in support of H.R. 1802, 
and I want to thank the gentlewoman from Connecticut (Mrs. Johnson) and 
the gentleman from Maryland (Mr. Cardin) and of course the gentleman 
from New York (Mr. Gilman) and the gentleman from California (Mr. 
Filner) for their efforts in particular for the provision regarding 
extending SSI benefits as a humanitarian gesture to World War II 
veterans, particularly the focus is Filipino veterans.
  Under current law, World War II veterans who live in the continental 
United States, the District of Columbia, and the Commonwealth of the 
Northern Mariana Islands are eligible for such benefits. However, if 
such veterans move to a foreign country, like the Philippines or the 
other U.S. territories, their benefits would stop.
  Over the years many of us have tried to rectify this matter to extend 
such SSI benefits to our veterans who desire to return abroad to the 
Philippines or who wish to be united with their families in the 
territories. Some of us, particularly from the territories, have also 
tried to address the inequities of those in the territories who 
currently do not receive any SSI benefits because, under the original 
legislation, Guam, the U.S. Virgin Islands, Puerto Rico, and American 
Samoa were excluded.
  Today, we address one of those inequities under the current law by 
allowing World War II veterans who qualify for SSI now to be able to 
continue their benefits should they desire to return to the Philippines 
or to the territories; and, of course, we are in full support of this 
measure. Our Filipino veterans in particular who fought valiantly 
alongside U.S. troops in World War II deserve this recognition.
  I remain, however, concerned that World War II veterans who already 
reside in the U.S. territories, U.S. citizens, all who are not 
currently receiving SSI benefits, will not be eligible under this 
provision simply because of the fact that current benefits extend only 
to those veterans who live in the continental United States.
  Mr. Chairman, while we try to resolve one inequity for Filipino 
veterans, let us not forget the inequities which exist for other U.S. 
citizens.
  Mr. GREENWOOD. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I would like to return briefly to the foster care 
issue. I think it is important to underscore who is an 18-year-old 
foster child. Some of us think of a child coming into foster care at a 
very early age and remaining there for 18 years. That should not happen 
and rarely does happen.
  Usually a child who comes into care early is either reunited with 
their biological family after they have overcome some of their 
difficulties, or, if that is not possible, the child is adopted.
  An individual who turns 18 years of age in foster care probably came 
into foster care relatively late. It underscores the abruptness, when 
one had a horrendous event in a child's life, where one finally detects 
a bad home life at the age of 13 or 14 or 15, one brings that child 
into foster care. It is very difficult to find an adoptive home who 
will adopt a teenager.
  So, again, these kids have come into care abruptly. To release them 
from care abruptly does them a terrible disservice. This bill corrects 
all of that. It is a tremendous bill.
  Mr. Chairman, since the Committee on Commerce has no additional 
requests for time, I ask unanimous consent to yield the balance of my 
time to the gentlewoman from Connecticut (Mrs. Johnson).
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Pennsylvania?
  There was no objection.
  Mr. BROWN of Ohio. Mr. Chairman, I yield 3 minutes to the gentlewoman 
from California (Ms. Eshoo).
  Ms. ESHOO. Mr. Chairman, I would like to thank the gentleman from 
Ohio (Mr. Brown), the ranking member, for recognizing me for this time, 
and for the work that has been done on this bill by both the leaders of 
the Committee on Ways and Means, the jurisdiction of the Committee on 
Commerce, and certainly the gentleman from Maryland (Mr. Cardin) and 
the gentlewoman from Connecticut (Mrs. Johnson) for their work on this 
bill.
  So I rise in support of H.R. 1802, the Foster Care Independence Act. 
I support providing more resources to the States to help children make 
the very important transition from foster care to independent living.
  I also want to express my support for the critical provision in the 
bill for World War II veterans, especially the Filipino-American 
veterans. I know that there are many of us that have worked on this 
provision for a long, long time and support it. I want to salute those 
that have seen fit to put it in this bill.
  For the more than 500,000, that is a half a million, children in our 
country today in the foster care system, turning 18 can be a 
frightening time. They

[[Page 14383]]

have had a rough time being in the foster care system, because we know 
it is not a system that we can at all times say that we are proud of.
  I know of what I speak, because I rise as a foster parent. One of my 
kids came to us at 13 years old, and we were her 26th placement. It is 
very difficult to move on in life having moved through a system that is 
rough, children that have really not had a real home and parents to 
love them. So I think I know of what I speak because I have dealt with 
the system.
  For those of us that have raised teenage children, we know that it is 
a very, very difficult time. It is difficult for them to move out on 
their own and pay their own bills.

                              {time}  1015

  So H.R. 1802 addresses this by providing States the flexibility and 
the necessary funding.
  We can do all the talking we want about these things, but if there 
are not the necessary resources to continue supporting these kids 
through the age of 21 and what comes with it, then what we want to 
happen really will not happen. We can do better for our Nation's 
children. I think this bill sets this aside and does that.
  There is another group of people, Mr. Chairman, who I think deserve 
better than the current system, and that is the underinsured and 
uninsured women in our country that are diagnosed with breast and 
cervical cancer. I am using some of this time to once again highlight 
something that has been left so far unattended by this Congress and I 
think that we need to move on it.
  In 1990, the Congress directed the CDC to provide screening for 
breast and cervical cancer for underinsured and uninsured low-income 
women. It was a very, very important step that the Congress took. But 
we need to take the next step, because women that are diagnosed through 
the screening are then informed by us that they are on their own; that 
there is not any resources for the treatment that needs to take place.
  A bill that I introduced with my colleague the gentleman from New 
York (Mr. Lazio) would close this loophole, and I urge the leadership 
to not only hold a hearing on this bill that has 250 cosponsors but 
also to move on a markup. I think we can do this, along with what we 
are doing today with the foster care bill, and I thank my colleagues 
for giving me the time to not only underscore this but to rise in 
support of 1802.
  I support providing more money to states to help children make the 
very important transition from foster care to independent living.
  For the more than 500,000 children now in the foster care system, 
turning 18 can be a frightening time. That is because the system we 
currently have in place drops them on their 18th birthday.
  For those of us with teenage children, we know that 18-year-olds 
aren't often prepared to live on their own, paying their own bills. 
H.R. 1802 addresses this by providing states the flexibility and 
funding to continue supporting these kids until age 21.
  I support this bill because the Nation's children deserve better than 
the current system.
  There is another group of people who deserve better than the current 
system, Mr. Chairman--uninsured and underinsured women diagnosed with 
breast or cervical cancer.
  In 1990, Congress enacted the Breast and Cervical Cancer Mortality 
Prevention Act, authorizing a breast and cervical cancer-screening 
program for low-income, uninsured or underinsured women through the 
Centers for Disease Control (CDC).
  This law was an important first step, but it was only a first step. 
While the current program covers screening services, it does not cover 
treatment for women who are diagnosed with cancer through the program.
  A bill I have introduced with my colleague, Rick Lazio of New York, 
would close this loophole.
  The Breast and Cervical Cancer Treatment Act (H.R. 1070) would 
establish an optional state Medicaid benefit for the coverage of 
uninsured and underinsured women who were screened by the CDC program 
and diagnosed with breast and cervical cancer.
  The federal government should not be in the business of telling low-
income women, ``We've helped you find out whether you have cancer, now 
that you do, you're on your own.''
  H.R. 1070 is a matter of life or death.
  Breast cancer kills over 46,000 women each year and is the leading 
cause of death among women between 40 and 45.
  Cervical cancer has a mortality rate over 30%.
  Yet, it lies in the drawer of a Commerce Committee staffer with no 
floor action scheduled and no date for a markup.
  The Committee Leadership has said we don't have time for the Breast 
and Cervical Cancer bill.
  Yet, twice in the past week, the Commerce Committee has discharged 
its jurisdiction on legislation and brought it immediately to the floor 
for a vote.
  On Tuesday, a resolution on prostate cancer with 65 cosponsors.
  Today, a bill on foster care with no cosponsors.
  And yet, the Breast and Cervical Cancer bill--a bill with 250 
cosponsors, including over three-quarters of the Commerce Committee--
remains in limbo.
  What kind of message are we sending to the women of this country? We 
have time for prostate cancer and foster care but no time for a breast 
and cervical cancer treatment bill that has the overwhelming support of 
over half the Congress and yet we have time to push through other 
bills?
  Thankfully, Mr. Chairman, we possess the technology to detect and 
treat breast and cervical cancer. But we must pair this with the will 
to help women fight this disease.
  Treatment for breast and cervical cancer should not be a partisan 
issue.
  In the last decade we have made great strides in diagnosing and 
treating breast and cervical cancer. But the causes of these cancers 
remain unknown and for many women how they will pay for their treatment 
remains unknown as well. H.R. 1070 would change that for thousands of 
women each year.
  The women of this country deserve consideration of H.R. 1070. The 18 
organizations that endorse the bill deserve its consideration. The 250 
Members of Congress who are cosponsors deserve its consideration.
  I implore the Commerce Committee Leadership to schedule a markup of 
H.R. 1070, the Breast and Cervical Cancer Treatment Act.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield 2 minutes to the 
gentleman from Kentucky (Mr. Lewis), a member of the subcommittee. I 
appreciate his work on this bill.
  Mr. LEWIS of Kentucky. Mr. Chairman, I rise today to express my 
support for H.R. 1802. Each year 20,000 young people leave the foster 
care system when they turn 18 years old. All young people face new 
challenges on their 18th birthday, but as we learned in committee, many 
foster care individuals face individual hurdles.
  By continuing our efforts to fight fraud and abuse in the SSI program 
we are able to return more money to the States for independent living 
programs. These programs identify adolescents who are getting ready to 
leave the foster care system and help them achieve self- sufficiency.
  The SSI fraud prevention provisions in this bill build on the seccess 
of the 1996 welfare reform bill. For example, SSA, Social Security 
Administration, is required to share its prisoner database with other 
Federal agencies to prevent the continued fraudulent payment of other 
benefits to prisoners.
  Under H.R. 1802, the prisoners and fugitives are barred from SSI 
eligibility for 10 years if they fail to report receiving payments 
while in prison or violated a repayment schedule. Representative payees 
who do not return SSI payments made after the death of a beneficiary 
would be held liable for repayment under this legislation.
  H.R. 1802 also cracks down on doctors and lawyers convicted of SSI 
fraud. So by stopping fraud and abuse, we can benefit the needs of 
foster kids.
  In closing, I would like to thank the gentlewoman from Connecticut 
(Mrs. Johnson) and the gentleman from Maryland (Mr. Cardin) for their 
work on this important legislation. It is my hope my colleagues will 
join me in voting for H.R. 1802.
  Mr. BROWN of Ohio. Mr. Chairman, I yield the balance of my time to 
the gentleman from Maryland (Mr. Cardin) of the Committee on Ways and 
Means.
  Mr. CARDIN. Mr. Chairman, I yield 6 minutes to the gentlewoman from 
Ohio (Mrs. Jones), who has been one of the real leaders in this 
Congress on the issues of children.
  Mr. JONES. Mr. Chairman, I rise today in support of H.R. 1802. As 
Cuyahoga County prosecutor, I oversaw a

[[Page 14384]]

unit of 18 attorneys responsible for litigating issues of abuse and 
neglect. In that capacity this issue of foster care children aging out 
of the child welfare system arose in both the civil and criminal arena.
  I would like to thank the gentlewoman from Connecticut (Mrs. Johnson) 
and the gentleman from Maryland (Mr. Cardin) for asking me to come to 
the floor to speak on this issue. Mrs. Jackie Ashby, a constituent from 
my district, wrote the following letter, which best expressed the need 
for change. She originally wrote in support of H.R. 671, however, her 
comments are just as applicable to 102.
  Miss Ashby is a social worker in my district.
  She writes: ``Dear Representative Tubbs-Jones: It has come to my 
attention that the house resolution is being debated concerning abused 
and neglected children who are aging out of foster care. I would 
strongly urge you to support this bill. I work in an independent living 
program in Cleveland. The children I work with are 18 years old and are 
exactly the children for whom this resolution is aimed. I know from 
first-hand experience that these kids need your help.
  ``Ten years ago I kept watching children leave our residential center 
or even our group home to the street because they had nowhere else to 
turn. Once they turned 18 they were too old for the child welfare 
system to take care of them anymore and they were unprepared to manage 
job, school, bills, relationships, drugs, sex, and all the other things 
that go with adult life. They ended up back with the same parents who 
abused or neglected them or in relationships that mirrored those poor 
parental relationships. Often this resulted in them becoming homeless, 
abusing drugs or becoming either victims or perpetrators of crime.
  ``There were many good programs out there, and my agency gave me the 
freedom to look at these programs and find a model that worked for 
these kids and start it. Five years ago three staff and myself began 
the independent living program. We had our share of troubles. The 
scenarios above still happen for some kids. But I can tell you more 
kids now graduate from high school. More kids than before learn what it 
takes to be a good worker and how to keep a job, and more kids know 
that they can never go home, at least not to stay again. And they do 
have other choices.
  ``The sad thing is that sometimes all those revelations happen after 
they have been kicked out of the children's welfare system. Being 
homeless, jobless or overcome by drug abuse are powerful lessons that 
many kids could be helped with when they ask for it, but the system 
doesn't allow for reentry into the children's system once they are 18. 
The adult system here in Cleveland, although better than most, doesn't 
cater to the specific problems of young adults. Consequently, young 
people who are belligerent, present poorly, and are reluctant to follow 
through without a good deal of follow-up by the case manager won't get 
services.
  ``Let me give you an example. Linda spent her whole life in foster 
care. From foster care home to foster care home, even a failed 
adoption. All she wanted was to be able to live with her mother, for 
whom she knew was parenting her other three siblings. Reunification was 
tried and failed. One home after another couldn't tolerate her 
belligerent attitude, skipping school and her sexual acting out. Out of 
frustration, certainly not because she was mature enough, the child 
protection worker recommended an independent living program.
  ``Linda loves the idea. Finally she has a home of her own. And for 
the first month of the program she does wonderfully. She is compliant, 
eager to learn and has made a nice connection with the staff. School 
starts to fall apart. She was behind in school so now she starts 
cutting classes. She has all-night parties with all her friends in her 
apartment, and now her counselor thinks she is using marijuana. The 
program tries intervention after intervention. Linda states she wants 
out, out of the system and out on her own.
  ``Her wish gets granted, mostly because there are so few services to 
offer an adult who is unwilling to comply with basic rules. So Linda 
goes back with mom, which is where she always wanted to be. But Linda's 
fantasy of having mom waiting at the door with open arms is quickly 
dashed by the reality of a mom who now has other children to attend. 
Linda and mom never worked out the problems of the past, so the past 
repeats itself and Linda at some point either leaves mom's house or 
gets kicked out.
  ``Linda now ends up either going from friend's house to friend's 
house, if she is lucky to have friends, or on the street. Now Linda is 
calling the program back saying, gee, I learned my lesson, you were all 
right all along. Take me back, I'll be better. And the social worker 
says, sorry, we would love to have you back. I really believe you have 
learned your lesson, but you're not a kid any more. You're an able-
bodied adult, and you should get yourself a job and make a life for 
yourself.
  ``After reading this you might say, tough love is the best medicine. 
And for some, a good dose is. But how many 18 years old do you know who 
have had sometimes 20 caregivers over the course of their young life 
and who have to decide where they are going to live, how they are going 
to support themselves, what they're going to do without anyone's 
support all by their 18th birthday. It is tough when you have no one to 
rely on.
  ``This kind of funding that the house resolution offers is a chance 
to give a child like Linda help at a time when she can really use it.''
  The letter goes on, but I think it specifically states what we are 
all talking about here on the floor. She says, ``I have 20 more stories 
like this.'' Her words can better express, based on her experience, 
anything that I or my colleagues would say, and I urge the support of 
this resolution.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield such time as he 
may consume to the gentleman from Texas (Mr. DeLay), the majority whip.
  Mr. Chairman, around here and in this process we rarely get a chance 
to see the dimensions of any Member, and I would have to say when he 
testified before our committee he was the first one to describe the 
agony of foster parents as they have to deal with the 18th birthday 
issue.
  So I commend the gentleman for both his work on this legislation and 
for his good work as a foster father.
  Mr. DeLAY. Mr. Chairman, I rise in very strong support of this bill. 
I cannot thank the gentleman from Maryland (Mr. Cardin) and the 
gentlewoman from Connecticut (Mrs. Johnson) enough for bringing this 
very, very important piece of legislation that will have a very strong 
impact on children in America.
  There is no better investment that a Nation can make than in its 
children, and it is time that the welfare of all of America's kids are 
furthered, all of them, including the abused and neglected and children 
in the foster care system.
  Approximately 20,000 young Americans are released from foster care 
every year, often without any previous experience with independence. 
This bill provides direction and assistance for these young adults 
struggling to make a new start.
  American youths are let out of the foster care system on their 18th 
birthday. Now, for many of those children this can be a bittersweet 
occasion. In many of the instances they have not graduated from high 
school, have never held a job, are unemployable for the near future, 
and they lack basic every day living skills, such as just cooking or 
keeping a checkbook. Leaving foster care translates into leaving the 
only security many of these children have ever had.
  Now, today, it is taken for granted a loving supportive family is 
important for youth. But all children are not so blessed. My wife 
Christine and I are foster parents and we know firsthand the struggles 
that confront these kids. It is difficult for the average American to 
understand just how scary it must be for a teenager to be alone. Add 
the necessity to be self-sufficient for the

[[Page 14385]]

first time, and a strong recipe for defeat is concocted. But such 
despair can be avoided, and this pending foster care legislation sets 
foster children down the right path to adulthood.
  My foster daughter turned 18 yesterday. And she, by all rights, 
should be out on the street. But she is staying in our home, getting 
ready to go to college. And this bill gives new flexibility to States 
to develop programs that provide skills to foster children during and 
after they are in foster programs. It requires States to guarantee that 
everyone is either employed or in school when they leave foster care. 
It also lets them keep their medical benefits after they turn age 18, 
which now are stripped from them the day they turned 18.
  An old cliche relates that an ounce of prevention is worth a pound of 
cure. This argument is even more compelling where young lives are 
concerned. Some early preventive measures save a lifetime of grief and 
trouble, partly because the failures in current foster care transition 
periods, the rates of crime, jail time, homelessness, and welfare 
dependency are very high among Americans formerly in foster programs. 
There is no reason to accept these costs to society and to the 
individual when they can be prevented.
  Mr. Chairman, imagine the hopelessness of a young person's world 
where there is no security, no comfort, and no one willing to help.

                              {time}  1030

  We are sentencing too many of our kids to certain failure and chronic 
dependency if we do not arm them with the skills and the resources they 
need as they transition out of the foster care system. The Foster Care 
Independence Act simply offers a helping hand to those who desperately 
need it. I strongly urge my colleagues to support this bill.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield 3 minutes to the 
gentleman from Louisiana (Mr. McCrery) not only a member of the 
subcommittee as we developed this bill but the member of the 
subcommittee that has put enormous time into understanding the SSI 
program and the needs of the disabled. I thank him for the provisions 
in this bill that address the problems of fraud and abuse in that 
system.
  Mr. McCRERY. Mr. Chairman, I want to thank the gentlewoman from 
Connecticut (Mrs. Johnson) and the gentleman from Maryland (Mr. Cardin) 
for their hard work on this legislation and I particularly thank the 
gentlewoman from Connecticut for her kind remarks regarding my work on 
SSI, particularly the SSI for children program that we revised in the 
welfare reform bill a couple of years ago that was signed into law.
  The gentlewoman from Connecticut knows that I would not have been 
nearly as active in crafting those provisions were it not for a valued 
member of my staff, Ms. Angel Vallillo. Ms. Vallillo recently died of 
brain cancer. Part of the reason I am speaking now is to thank her 
parents, to thank Angel for the work that she has done on this very 
important subject. I remember very well following our victory in 
welfare reform and having recognized Angel's work in that bill on SSI, 
it was not long after that that Angel came to me with a report in her 
hand, as she often did, and said, ``You need to look at this.'' I said, 
``What is it?''
  She said, ``This is a new report by the GAO on SSI, and it talks 
about all the fraud, waste and abuse in SSI, and this is one of the 
highest risk programs in the Federal Government for fraud and abuse, 
even after all the work we did in the welfare reform bill.''
  I said, ``Okay, I will take a look at it.'' Sure enough, the GAO 
wrote a fairly scathing report on fraud and abuse in the SSI program.
  So we set to work, Angel did mostly, on crafting some provisions to 
correct the fraud and abuse in the program. We have heard a lot here 
today about the foster care provisions of this bill and how good they 
are. I agree. They are. I am very thankful that we are able to make 
these changes in the law with respect to foster care. We are financing 
those good provisions on foster care with the savings that we are going 
to create through the changes in the SSI program.
  Mr. Chairman, I think that you, like I, hear all the time from folks 
back home, ``If you all would just cut out the fraud and abuse in the 
Federal Government, you could save enough money to balance the 
budget.''
  Well, we have balanced the budget now partly because we have cut out 
a lot of fraud and abuse in the Federal Government, but there is still 
work to be done. This bill does that. It helps us to cut the waste, cut 
the fraud, the abuse in a very important Federal program, and with 
those savings, Mr. Chairman, we are going to re-create a foster care 
program that I think will do worlds of good for foster children in this 
country for years to come.
  I thank the gentlewoman from Connecticut for yielding me this time.
   Mr. Chairman, I rise to inform the Congress and the Nation of the 
debt we owe Ms. Angel Vallillo for her hard work in crafting the 
legislation before us today. Angel served for ten years on my staff, 
first as a campaign volunteer and ultimately as my legislative director 
until she died of a brain tumor on October 2, 1998. I know her parents, 
Mr. and Mrs. Raymond Vallillo of Shreveport, Louisiana, and all of her 
family and friends are as proud of Angel today as they were throughout 
her life and career.
  I have no doubt that Angel is watching over us as we consider H.R. 
1802, the ``Foster Care Independence Act of 1999''. This important 
bill, which will help thousands of foster children make the transition 
to adulthood and independent lives, will pass the House today thanks to 
her hard work in drafting many provisions to end fraud and abuse in the 
Supplemental Security Income (SSI) program. Without those provisions 
and the savings they produce--by, for example, blocking benefits for 
prisoners and fugitives, improving recovery of benefit overpayments, 
and ensuring recipients are not hiding resources they should rely on--
this bill would not be on the House floor today.
  I will always remember Angel as a driving force behind the 1996 
welfare reform law, and especially the provisions reforming the SSI 
program for children. As a caseworker in my district, Angel often saw 
this program perpetuate poverty rather than alleviate it. As a trusted 
legislative assistant, Angel helped me and all the Members of the Ways 
and Means Committee and, in the end, the House, the Senate and the 
President, make the changes needed. Thanks to Angel's skills and 
determination, welfare reform is working and an entire generation of 
children is being saved from lives of dependency.
  As a parent of two young children, I want to address a thought to 
Angel's parents. Regretfully, the evidence that raising children is 
difficult is all around us. Of all the goals we set for ourselves in 
life, for those of us blessed to be parents, the single most important 
goal is raising our children to be honest, moral, hardworking, and 
honorable citizens of this great country. As Angel's boss, colleague, 
mentor, and most importantly friend, I knew Angel about as well as you 
can know someone who is not in your own family. I want her parents to 
know that she exemplified the very best of everything we raise our 
children to be. I fervently hope my own children achieve the high 
standards set by Angel. Raymond and Marie, you are deeply honored as 
parents by the life and achievements of your wonderful daughter.
   Mr. Chairman, few Americans know the great privilege of serving in 
the people's House, and fewer still of actually developing major 
legislation that improves the lives of American citizens. But that is 
exactly what Angel Vallillo did with the few years God granted her on 
this earth. On behalf of my family and the families of the Fourth 
Congressional District of Louisiana, I join with all Members of the 
U.S. House of Representatives today in recognizing Angel's all too 
short lifetime of dedicated service.
  Mr. CARDIN. Mr. Chairman, I yield myself 1 minute.
  I just want to underscore the point of my friend from Louisiana, and, 
that is, this bill does a lot of good things in helping children aging 
out of foster care and we pay for it in part by dealing with fraud and 
abuse. I want to thank the gentleman for his help. I also want to thank 
the Clinton administration for working with us. These provisions have 
all been mutually agreed upon as an effort to make the program do what 
we think it should do and provide savings so that we can help children. 
It is a win-win situation.
  Mr. Chairman, I reserve the balance of my time.

[[Page 14386]]


  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield 3 minutes to the 
gentlewoman from New Jersey (Mrs. Roukema).
  Mrs. ROUKEMA. Mr. Chairman, I thank my colleague and my friend from 
Connecticut for yielding me this time. I want to say that we have both 
worked long and hard on a number of issues concerning children. I did 
want to come here today because I have been a pioneer on child support 
issues, having served on the national commission that really gave us a 
comprehensive interstate child support enforcement system. Recently 
issues and concerns have been raised not about the body of your bill 
but how it is paid for and its relationship to child support.
  I would like to have a colloquy with my colleague from Connecticut, 
the author of the bill, concerning the issues raised by the American 
Public Human Services Association and the fact that the bill does 
eliminate the State hold harmless provision in the present child 
support program.
  It is my understanding that there have been concerns raised that the 
moneys will be reduced severely for at least 23 States in terms of 
their levels of reimbursement, I guess, by $300 million over 5 years, 
and there are other numbers that are being used here, $230 million. If 
the gentlewoman would please help us understand these.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, will the gentlewoman 
yield?
  Mrs. ROUKEMA. I yield to the gentlewoman from Connecticut.
  Mrs. JOHNSON of Connecticut. I thank the gentlewoman for her 
question. I do regret that that letter is fairly inaccurate. Many 
States get no money at all under the hold harmless provisions. And, in 
fact, the money that States get under the hold harmless provisions 
varies widely. In 1997, only seven States received hold harmless funds. 
In 1998, 21 States received hold harmless funds. There is a great 
variation in this provision in the law and its impact on the States.
  Overall, it is absolutely true that the States make a profit on child 
support and the Federal Government loses money. I do want to point out 
that in repealing the hold harmless, which I think is good policy, we 
do protect up to 50 percent of their loss, those States that actually 
pass those funds through to women coming off welfare and do not allow 
it to interfere with their eligibility for benefits or the level of 
those benefits.
  There is not time to go in on the floor here to the fact that at the 
time we made these changes, we gave the States the right to retain a 50 
percent pass-through and save $1.2 billion for themselves.
  This is, in my estimation, good policy and we have moderated its 
impact on those States that had a just cause.
  Mrs. ROUKEMA. Will my colleague then state categorically that this is 
not undermining the collection system for interstate child support?
  Mrs. JOHNSON of Connecticut. It absolutely does not undermine the 
collection system for interstate child support.
  Mr. CARDIN. Mr. Chairman, I yield myself 4 minutes.
  Just to follow up on that colloquy, the hold harmless was put in in 
1995. It was put in to protect States on child support collections. It 
was based upon the collections then which already reimburse some States 
more than the actual cost of child support collections. But as my 
colleagues know, the number of people on welfare has diminished 
dramatically since that time and, therefore, there have been 
significant reductions in the burdens to the various States. But 
Members are going to have a chance in the manager's amendment to vote 
on a modification of that, that allows for a good policy with the hold 
harmless, if the States want to pass through those funds to the 
families so the families actually get the advantage of the funds and we 
maintain a family unit. So we are going to have a chance to modify that 
in the manager's amendment.
  The gentleman from Wisconsin (Mr. Kleczka) had recommended that in 
our committee and it is incorporated in the manager's amendment.
  Mrs. ROUKEMA. Mr. Chairman, will the gentleman yield?
  Mr. CARDIN. I yield to the gentlewoman from New Jersey.
  Mrs. ROUKEMA. I really appreciate that statement. I see the gentleman 
from Wisconsin has arrived. He and I have worked on a number of issues 
over time. I appreciate that. It sounds as though he has looked 
realistically at this question and hopefully we will not have 
unintended consequences here and we will pledge to continue to work 
together to assure that the enforcement system is in place and not 
damaged by the lack of funding that may be out there.
  Mr. KLECZKA. Mr. Chairman, will the gentleman yield?
  Mr. CARDIN. I yield to the gentleman from Wisconsin.
  Mr. KLECZKA. I thank the gentleman from Maryland for yielding.
  First, Mr. Chairman, let me rise and indicate my strong support for 
the bill. It did come before the committee I serve on, the Committee on 
Ways and Means. I think to provide this continuum of care to foster 
children is so important. However, one of the pitfalls of doing so was 
to find a funding source which had a direct impact not only on my State 
but on other States who pass through their child support payments. I 
had made note of that at the committee and I should indicate that the 
gentlewoman from Connecticut was aware of the problem, did indicate at 
the committee that she would work with me and the gentleman from 
Maryland to try to find a resolve and as the days went by, it was 
looking bleaker and bleaker because we could not find the necessary 
financial resources to pay for continuance of the hold harmless. Thanks 
to her efforts and her diligence, a day ago I was informed that a 
funding source has been found and that the manager's amendment as it 
does today will contain a continuance of paying States this hold 
harmless which is policy that I think this Congress should encourage 
not only for Wisconsin, Vermont but for all the States. If in fact you 
have a court-ordered child support payment, that should not be revenue 
for the State, that should be income for the family. With this 
incentive in the manager's amendment to continue it, even though at a 
lesser degree, States will be encouraged to continue the hold harmless 
and to advantage the families and not the State coffers.
  Mr. Chairman, I want to publicly thank the gentlewoman from 
Connecticut for the hard work she did on helping us retain this in 
part, and also I want to thank publicly the gentleman from Maryland who 
also felt that this is good Federal policy.
  Mr. Chairman, I am pleased to support the Johnson amendment to the 
Foster Care Independence Act.
  Earlier, during the consideration of this legislation, I voiced my 
serious concerns about the impact this legislation would have on the 
child support system. Specifically, I was very concerned about the 
elimination of the hold harmless provision for the state share of 
distribution of collected child support. The outright elimination of 
the hold harmless would penalize states--like Wisconsin--who make 
giving child support payments to families a priority over state 
revenues.
  I believe that when a state collects the child support payments that 
the courts have decided a family needs, the family--and not the state--
should get that money. This is money families need to buy clothes and 
food.
  When this bill was considered in the Ways and Means Committee, I 
introduced an amendment which would have encouraged states to give 
families the child support to which they are entitled. Although my 
amendment was not in the final bill reported out of Committee, 
Representatives Johnson and Cardin expressed strong support for the 
proposal.
  Since the committee consideration of the Foster Care Independence 
Act, Representatives Johnson and Cardin have worked diligently to 
ensure that states would retain the financial flexibility to adopt this 
policy. I am pleased that their efforts were successful.
  The manager's amendment includes a provision to retain funding for 
those states that value child support payments to families over state 
revenues. I would like to thank Representatives Johnson and Cardin for 
ensuring that states like Wisconsin can continue to provide families 
with the full child support payment they deserve.
  Mr. CARDIN. Mr. Chairman, I reserve the balance of my time.

[[Page 14387]]


  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield 2 minutes to the 
gentleman from Pennsylvania (Mr. English).
  Mr. ENGLISH. Mr. Chairman, I rise in strong support of H.R. 1802, the 
Foster Care Independence Act. This is bipartisan legislation that is 
aimed at one of the most vulnerable populations in our society, 
children who age out of foster care.
  This legislation is vital because it provides States with increased 
funding and gives them greater flexibility to help these children who 
are faced with decisions about their future, whether it is finding a 
job or continuing their education.
  It is important that we help these young adults make the transition 
from foster care to self-sufficiency. Many of these children when they 
reach the age of 18 will be balancing a checkbook, paying bills and 
working for the first time. Under this legislation, States can provide 
guidance and training to help these children with their newfound 
responsibilities.
  In addition, it encourages personal savings by these clients by 
increasing the savings threshold from $1,000 to $10,000. This amount is 
assets or savings that foster care children can have while maintaining 
their benefits. We should encourage them to save to build for their 
future.
  H.R. 1802 also encourages States to provide Medicaid coverage to 18- 
through 20-year-olds who have aged out of the foster care system.
  This legislation, in a nutshell, is a common sense and compassionate 
approach to helping these young adults make the transition to adulthood 
and self-sufficiency. I urge my colleagues strongly to support it.
  I thank the gentlewoman and I commend her for bringing this 
legislation as a bipartisan product to the floor of the House so 
promptly, and I commend the gentleman from Maryland for his seminal 
role in developing this legislation.
  Mr. CARDIN. Mr. Chairman, I yield 3 minutes to the gentlewoman from 
California (Ms. Lofgren) who has been very helpful to us in putting 
this legislation together.
  Ms. LOFGREN. Mr. Chairman, I rise in support of this very fine piece 
of legislation, this good, solid, bipartisan bill. There is much good 
in the bill. I join with my colleague in noting the great difficulty of 
young people, at age 18, all of a sudden at immediately assuming all 
adult responsibility. Those of us who have teenagers know that when the 
child becomes 18, they still need the guidance, the support, the 
direction of parents. I think this will help considerably in putting 
structure into young lives and we will have a wonderful result from 
this.
  I also, however, wanted to rise in particular praise of a provision 
in the gentlewoman from Connecticut's amendment to be heard soon, and 
that is the provision that will finally provide some assistance to the 
Filipino war veterans.

                              {time}  1045

  This group fought side by side with my father's generation in World 
War II. The sad story of the disappointments and false promises made 
over decades is not worth going through here today, but I do look 
forward with great appreciation to the adoption of the provision that 
will allow some assistance to these men who fought so bravely and are 
now old and broken and deserve the thanks of our Nation and also the 
honoring of the commitments made at the time of when my father was a 
young man.
  So I thank the gentlewoman from Connecticut (Mrs. Johnson). I look 
forward to supporting her amendment and thank her greatly for her 
attention to this matter.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield 2\1/2\ minutes to 
the gentleman from Oklahoma (Mr. Watkins). He and his wife have also 
been foster parents over many years, and his experience has been of 
great value to the subcommittee.
  Mr. WATKINS. Mr. Chairman, I rise in support of the Foster Care 
Independence Act, and I ask the gentlewoman from Connecticut (Mrs. 
Johnson) for a question.
  Under the training activities of the foster parents in this bill will 
there be an emphasis on encouraging foster children to continue their 
education and to seek higher education or skill training to better 
their employment and career opportunities.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, will the gentleman yield?
  Mr. WATKINS. I yield to the gentlewoman from Connecticut.
  Mrs. JOHNSON of Connecticut. The whole focus of this bill is to help 
kids look early at preparing themselves for work or education or both 
after they turn 18. From the time they were 14 the bill encourages 
career exploration opportunities, it requires coordination with work 
study programs and high school. These kids are often the last to have 
any access to the work study program when they should frankly be at the 
top of the list.
  So the whole goal of this is to help kids have an opportunity to 
work, develop a resume, develop recommendations, prepare for when they 
turn 18 to either go into the work force full time as a skilled, 
developed worker, or go on to college or a combination of the two. That 
is our goal, and that is going to be the main measure of these programs 
as we hold oversight hearings on them in the future.
  Mr. WATKINS. The gentlewoman has indicated my wife Lou and I are 
foster parents. There are some great rewards in being foster parents. I 
would like to say to my colleagues and the American people. We had our 
homes licensed for homeless girls. We ended up adopting one of those 
young ladies, Sally. Sally is our daughter who become a professional 
person after receiving a college education. We put every dollar into an 
educational fund. It is rewarding from foster care experience, and our 
daughter Sally now has made us very proud grandparents of a 
granddaughter named Rena Cheyenne.
  Let me say also to my colleagues, the parents and to the foster 
children out there that education, is the quickest way to lift 
themselves up out of the poverty and out of the conditions they have. I 
want to encourage them, and I want to encourage parents to be able to 
bring children in their homes and let them be an uplifting experience 
and a role model hopefully for that child. That is the best way we can 
lift them out of the problem.
  Mrs. JOHNSON of Connecticut. I thank the gentleman. I know from 
talking to him and his wife that his wife helped these kids learn how 
to be smart shoppers, how to clean, how to do laundry, how to stretch 
money, how to do all those things about budgeting and managing that 
will make them successful adults, and I thank him and his wife for 
their contribution to their lives.
  Mr. Chairman, I yield 2 minutes to the gentleman from California (Mr. 
Herger).
  Mr. HERGER. Mr. Chairman, I want to take just a moment and recognize 
both the gentleman from Texas (Mr. Archer) and the gentlewoman from 
Connecticut (Mrs. Johnson) for including a provision I have been 
working on, the Criminal Welfare Prevention Act, part three. As section 
204 of the legislation before us today, this common-sense provision, 
which I first introduced last Congress and have reintroduced this year, 
would require the Social Security Administration to share its prisoner 
data base with other Federal departments and agencies, such as the 
Department of Agriculture, Education, Labor and Veterans' Affairs, to 
help prevent the continued payment of fraudulent benefits to prisoners.
  Since the enactment of my original Criminal Welfare Prevention Act as 
part of the welfare reform of 1996, the Social Security 
Administration's prisoner database has become an extremely effective 
tool in detecting and cutting off fraudulent SSI and Social Security 
benefits that would otherwise go to prisoners. In fact, according to 
Social Security Administration's inspector general, that provision will 
help save taxpayers $3.46 billion through the year 2001. It not only 
makes sense to require SSA to share this improved prisoner database 
with other agencies to help prevent further inmate fraud; after all, 
taxpayers already foot the bill for prisoners' food, clothing and 
shelter. The

[[Page 14388]]

last thing we need to do is send in monthly bonus checks as well.
  I look forward to seeing this provision enacted into law, and I urge 
all of my colleagues on both sides of the aisle to support this worthy 
legislation.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield 2 minutes to the 
gentleman from Arizona (Mr. Hayworth).
  Mr. HAYWORTH. Mr. Chairman, I thank my colleague from Connecticut, 
the chairwoman of the subcommittee, for the time.
  I salute Members on both sides of the aisle who have brought forth 
this common-sense, bipartisan legislation, and I would simply direct 
the committee's attention to the special needs reflected in the Sixth 
Congressional District of Arizona and indeed throughout a portion of 
our Nation that has come to be called Indian country. As the 
Representative of the Sixth Congressional District of Arizona, one in 
every four of my constituents is Native American, and during 
consideration of this bill, our committee adopted a tribal welfare 
amendment that would aid tribal communities in fulfilling their duty to 
serve Indian foster children and the underprivileged.
  In the initial language of H.R. 1802, a requirement was that States 
inform tribes of the services available, and that is an improvement 
over current law that remains silent with reference to the role of 
tribal governments, but our amendment strengthens the provision by 
requiring States to consult with tribes about the development of 
independent living services rather than simply informing tribes of such 
services. It also requires that the States make an effort to coordinate 
with tribes in providing these services.
  This reaffirms something that we have come to acknowledge as basic 
truth here in the last part of the 20th century, that those closest to 
the problem can help identify it and help solve it. Tribes are in the 
best position to know the needs of Indian children and of possible 
local resources available for assistance, and this amendment is a first 
step in recognizing the level of communication and coordination that is 
necessary for the provision of independent living services.
  One other point. Under current welfare law, States have unlimited 
authority to carry over unobligated funds under the heading of 
temporary assistance to needy families, the acronym known as TANF, and 
the second provision in my amendment would allow tribes likewise to 
carry over unobligated tribal TANF moneys, and this would allow tribes 
greater flexibility and is very important that the foster children of 
the first Americans not remain forgotten, and I salute the committee 
and those on both sides of the aisle who have taken that step.
  Again I ask for passage of this important piece of legislation.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield 2 minutes to the 
gentleman from Florida (Mr. Stearns).
  Mr. STEARNS. Mr. Chairman, I am greatly encouraged to see this bill, 
and I want to thank the gentlewoman from Connecticut (Mrs. Johnson). 
H.R. 1802 helps our children in need to make a smooth transition from 
foster home to independence. The investment we make in these young 
adults will have long-term positive results. I have three children of 
my own. I cannot imagine just because they turn 18, it does not mean 
that a child is ready for independence.
  We in the Congress have a responsibility to equip foster children who 
stay in foster care until they are 18, so I think the gentlewoman's 
bill is excellent. By helping these young people to have a more 
successful transition to independent adulthood, we lessen the 
likelihood that they will drop out of school, become unemployed, turn 
to crime and/or, more importantly, face homelessness again.
  School completion, gainful and lawful employment and safe and stable 
housing should not be out of the reach to young people for whom the 
government has taken the responsibility to raise after their family is 
found unable to do so. We need to treat these children as we would 
treat our own, for indeed, my colleagues, these are our own. These 
children have been through some tough situations that most of us could 
never understand, and for us to close a door of assistance at 18, I 
think, is not correct. I encourage my colleagues to support this bill 
and provide the necessary help to these needy young adults.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield 1 minute to the 
gentleman from Arizona (Mr. Kolbe).
  Mr. KOLBE. Mr. Chairman, I thank the gentlewoman for yielding this 
time to me.
  Sixteen years ago a young man showed up on my doorstep of myself and 
my then wife, and he had been in long-term foster care. I had met him 
in a high school while I was visiting there. He literally had no place 
to turn at that point. The foster care system dumped him out, he just 
turned 18, he had no place to go. We were able to help him, to take him 
in, to help provide an education, to get him started with a job, and, 
as a result, he has gone on to be an enormously successful executive 
today.
  But I think of his experience and how many young people did not have 
someplace to turn and the problems that they have, because surely when 
a young person turns 18, a young man, a young woman turns 18, they are 
not ready completely to be independent. They need some assistance, they 
need some help, and this legislation, and I commend the gentlewoman for 
bringing this legislation to us, is exactly what we need to help these 
young people get on their own feet and to be able to go forward.
  This is the kind of legislation that we must have if we are going to 
provide these young people with the opportunity to go forward with 
their lives. For many of them, it is the lack of an education, it is 
the lack of job training, and they suddenly find themselves turned out 
by the system. It is a cold day when they turn 18 and the system says 
we no longer have any responsibility and we no longer have any legal 
ability to help them. This changes that. This makes it possible for us 
to help these young people get started, and I believe with this 
legislation we will be able to assist young people to get a start in 
the world, to become productive tax-paying citizens and citizens that 
we can all be very proud of.
  Mr. CARDIN. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I urge my colleagues to support H.R. 1802.
  Mr. Chairman, I yield my remaining 1\1/2\ minutes to the gentlewoman 
from Connecticut (Mrs. Johnson), and I yield back the balance of my 
time.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield 1\1/2\ minutes to 
the gentlewoman from Maryland (Mrs. Morella).
  Mrs. MORELLA. Mr. Chairman, I thank the gentlewoman and the gentleman 
for yielding the time, and, Mr. Chairman, I rise in very strong support 
of the Foster Care Independence Act.
  I want to thank my good friend and colleague, the gentlewoman from 
Connecticut (Mrs. Johnson), for introducing it and my good friend from 
the great State of Maryland, with whom I have served for many years in 
the Maryland Legislature as well as here in Congress (Mr. Cardin), for 
initiating such important changes in our foster care system.
  We know that there are approximately 20,000 young people who leave 
foster care each year, and this legislation is going to enable more 
foster care youth to make a successful transition to independent 
adulthood, and without these improvements foster care children, many of 
them, may continue to suffer from disproportionately low rates of 
school completion, employment, poor medical care, high rates of 
victimization, and homelessness.

                              {time}  1100

  I know that in looking at the record, the Committee on Ways and Means 
Subcommittee on Human Resources found evidence in Wisconsin that in the 
12 to 18 months after leaving the foster care system, 37 percent had 
not completed high school, 50 percent were not employed, 44 percent had 
problems obtaining the proper medical care, and 37 percent had been 
victimized sexually, incarcerated, or homeless during that period.

[[Page 14389]]

  So this act is going to provide, for the first time, the continued 
attention and support to the young people who are truly our 
responsibility and who need our support. They will be able to gain 
education, vocational or career development training, as well as 
mentoring programs that they need to succeed.
  Mr. Chairman, the transition into adulthood is not easy for any 
child, and those children who do not have the benefit of family should 
be shown that they are not alone. I urge that we look to our Nation's 
children and support this bill. I also think the manager's amendment 
adds a great deal more to the bill.
  I am also pleased that recognition is given to Filipino veterans of 
WWII who served with the U.S. Armed Forces by expanding the provision 
to allow them to receive SSI benefits at a reduced rate if they moved 
back to the Phillipines.
  It also enhances the bill to require states to certify they train 
prospective foster parents before a child is placed with them.
  Let's give our nation's children a better chance at success and pass 
the Foster Care Independence Act.
  Mr. BLILEY. Mr. Chairman, I rise in strong support of H.R. 1802, the 
Foster Care Independence Act of 1999. This bill will provide a needed 
leg-up for foster children who face many barriers trying to get ahead 
in their young lives.
  The legislation gives the States greater flexibility and additional 
funding for operating the Foster Care Independent Living Program, and 
in so doing will help foster children in their transition out of the 
foster care system.
  This bill meets a real need. Foster children often face great 
challenges overcoming the fact that their birth parents were unwilling 
or unable to care for them. Statistics show that this can lead to 
costly mental health and substance abuse problems. The available 
studies on foster children indicate that they have health care costs 
that may be two to five times higher than other children on Medicaid, 
primarily due to a greater need for mental health services.
  I think this small but significant measure will also provide 
additional financial security and peace of mind for the parents of 
foster kids who are concerned about their welfare. We should do what we 
can to ease the burden of parents who want to provide a loving home for 
these children in need.
   Mr. Chairman, I believe providing temporary Medicaid assistance to 
these young adults as they try to establish their independence and 
become productive members of society addresses a growing need. The 
Congressional Budget Office estimates that in 1998, there were 65,000 
former foster kids between the ages of 18 and 21. CBO expects this 
number to increase to 80,000 by the year 2004. While many of these 
young adults are still eligible for Medicaid based on other eligibility 
criteria, about 40 percent are not.
  This bill does not require states to expand their Medicaid programs 
to former foster kids. But this bill provides added incentive for 
states to target former foster kids for assistance. In fact, the CBO 
estimates that H.R. 1802 will increase enrollment for Medicaid health 
coverage to at least 24,000 former foster kids ages 18, 19 and 20.
   Mr. Chairman, H.R. 1802 was referred to the Commerce Committee 
because of the Medicaid provisions. The Committee discharged this 
popular, bipartisan bill without formal consideration in order to 
expedite the process and bring this bill to the floor. I did so with 
the understanding that the Commerce Committee will have a seat at the 
table during future conference negotiations with the other body on this 
legislation.
  Again, I'm pleased to support this measure today. Foster children are 
dealt a difficult hand in life and should have every opportunity to 
succeed as they move into adulthood. For those who need our help, I 
believe we are doing the right thing by providing this temporary 
assistance. I urge all my colleagues to support the passage of this 
important measure.
  Ms. ROYBAL-ALLARD. Mr. Chairman, I am delighted to support H.R. 1802, 
which will allow World War II Filipino veterans who receive 
Supplemental Security Income (SSI) to move back to the Philippines and 
take a portion of these benefits with them.
  This long overdue and humanitarian gesture will allow many of these 
elderly and ailing Filipino veterans to return to their home country, 
reunite with their families and continue to receive the benefits they 
deserve.
  Our Filipino veterans fought with the understanding that they had 
earned the right to receive the same compensation and benefits given to 
other men and women who served our country during World War II. To the 
shame of our nation, this promise was never honored. Today's vote is a 
small step to correct this injustice and recognize these men as true 
heroes.
  In the South Pacific, Filipino soldiers fought alongside American 
soldiers in some of the bloodiest battles of the war. For almost four 
years, during the most intense and strategically important phases of 
World War II, more than 200,000 Filipinos fought side-by-side with 
Allied forces.
  It is my hope that the Senate will follow the House's lead so that we 
can sign this bill into law as soon as possible. But we still have much 
more to do--we need to once and for all restore full benefits for the 
Filipino veterans residing in this country in the same manner as 
furnished to our other U.S. veterans. I look forward to working with my 
colleagues in the House and Senate to erase this black mark on our 
country's history.
  Mr. BILIRAKIS. Mr. Chairman, I rise today in support of H.R. 1802, 
the Foster Care Independence Act. I would first like to thank my 
colleagues, the gentlelady from Connecticut, Mrs. Johnson, and the 
gentleman from Maryland, Mr. Cardin, for championing this bill and 
bringing it so swiftly to the floor of the House.
  Mr. Chairman, each year the foster care system emancipates 
approximately 20,000 youth--with expectations of self-sufficiency. 
Unfortunately, the woefully inadequate Independent Living Program has 
not equipped many of these individuals with necessary life skills. The 
consequences of this inadequate program have meant that many young 
adults leave the foster care system with serious lifelong problems such 
as: alcoholism, homelessness, lack of employment stability, 
incarceration, and pregnancy at early age.
  The Foster Care Independence Act increases flexibility for States to 
structure their programs to meet the unique needs of their foster care 
population. In addition to increased flexibility, the bill doubles the 
funding available for Independent Living Programs. The bill also 
assures that participants in the Independent Living Programs receive 
job and vocational training, education assistance, and other valuable 
services by requiring States to demonstrate the success of these 
programs.
  In addition, this bill extends health services to foster care youth 
by allowing States to expand their Medicaid programs to foster care 
youth ages 18-20. Currently, many young people leaving foster care at 
age 18 lose their health care coverage, at a time in which they may 
need this coverage the most. Studies have indicated that health care 
costs for foster care children are two to five times greater than other 
children on Medicaid. This is primarily due to a greater need for 
mental health services. H.R. 1802 provides added incentives for States 
to expand their coverage to emancipated foster care youth, giving them 
access to needed health care services.
  I thank my colleagues for their swift action on this bill and 
strongly support its passage.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I rise today in support of 
H.R. 1802 the Foster Care Independence Act of 1999.
  An estimated 20,000 young people leave foster care at age 18 each 
year with no formal connections to family; they have not been returned 
to their birth families or adopted. Federal and state financial support 
for these young people ends just as they are making the critical 
transition to independence.
  Without the emotional, social, and financial support that families 
provide, many of these youth are not adequately prepared for life on 
their own.
  The federal Independent Living Program currently provides $70 million 
a year to states for services for youths ages 16 and older in foster 
care, including help obtaining a high school diploma, GED, or 
vocational training, and providing life skills training, counseling and 
other social services. Funding must end when they reach 18, or 19 if 
they are expected to graduate from high school by then. In some states, 
these activities are supplemented by investments from other public 
entities and/or the private sector. In Texas, for example, the state 
college system provides free tuition for youths aging out of foster 
care. In other communities, businesses offer mentoring and jobs for 
youths preparing to leave care. The Bridges for Independence Program, a 
public private partnership in Los Angeles County, offers a full array 
of housing, education, employment and life skills support for youths 
who have exited from foster care. Young people who have spent time in 
foster care also are extremely effective advocates for independent 
living in a number of states.
  This bipartisan bill will increase the likelihood that many of the 
20,000 children who leave foster care at age 18 or 19 each year with no 
formal connection to families will find

[[Page 14390]]

the stability and supports they need to succeed. While the 1997 
Adoption and Safe Families Act will offer all young people in foster 
care permanent homes more quickly in the future, we must not ignore the 
needs of young people who are currently being discharged from care and 
left to fend for themselves.
  Without the emotional, social, and financial support that families 
provide, many of these youths are not adequately prepared for life on 
their own. Evidence from a careful study in Wisconsin of a group of 
young people leaving foster care found that: 12 to 18 months after 
leaving care, 37% had not yet completed high school, 50% were not 
employed, 44% had a problem obtaining medical care, despite their 
mental health needs, and 37% of the group had been seriously physically 
victimized, sexually assaulted, raped, incarcerated of homeless during 
that period.
  H.R. 1802 increases funds to states to assist youths to make the 
transition from foster care to independent living.
  Federal funding for the Independent Living Program is doubled from 
$70 million to $140 million a year. Funds can be used to help youths 
make the transition from foster care to self-sufficiency by offering 
them the education, vocational and employment training necessary to 
obtain employment and/or prepare for post secondary education, training 
in daily living skills, substance abuse prevention, pregnancy 
prevention, and preventive health activities, and connections to 
dedicated adults.
  States must contribute a 20 percent state match for Independent 
Living Program funds.
  States must use federal training funds (authorized by Title IV-E of 
the Social Security Act) to help foster parents, group home workers, 
and case managers address issues confronting adolescents preparing for 
independent living.
  H.R. 1802 recognizes the need for special help for youths ages 18 to 
21 who have left foster care.
  States must use some portion of their funds for assistance and 
services for older youths who have left foster care but have not 
reached age 21.
  States can use up to 30 percent of their Independent Living Program 
funds for room and board for youths ages 18 to 21 who have left foster 
care.
  H.R. 1802 helps older youths transitioning from foster care have 
access to needed health and mental health services.
  States may extend Medicaid coverage to youths transitioning from 
foster care who have attained age 18 but not 21, or to a subset of this 
population.
  H.R. 1802 offers states greater flexibility in designing their 
independent living programs.
  H.R. 1802 establishes accountability for states in implementing the 
independent living programs.
  The Secretary of Health and Human Services, in consultation with 
state and local officials, child welfare advocates, members of 
Congress, researchers, and others must develop outcome measures to 
assess state performance and data elements necessary to track how many 
children are receiving services, what they are receiving, and state 
performance on outcomes.
  States should coordinate the independent living funds with other 
funding sources for similar services.
  States are subject to penalty if they misuse funds or fail to submit 
required data on state performance.
  $2.1 million is set aside for a national evaluation and for technical 
assistance to states in assisting youth's transitioning from foster 
care.
  Mr. Chairman, I ask my colleagues to vote yes for H.R. 1802 so that 
these foster children will have the opportunity to become productive 
citizens of this country.
  Mr. CAMP. Mr. Chairman, I rise in strong support of what our bill 
today seeks to accomplish.
  I want to thank Chairman Nancy Johnson for her leadership on this 
very important bill. I was very proud to be a part of our efforts to 
revamp the Foster Care system when this House passed the Adoption and 
Safe Families Act two years ago. And our efforts are paying off--
preliminary numbers show that adoptions of foster children have 
increased 40 percent since 1995.
  But this bill takes the next step--it recognizes that no matter how 
hard we work, some kids will turn 18 in foster care. They'll ``age 
out'' of the foster care system without a network of family and loved 
ones to turn to. And the evidence our Subcommittee has heard suggests 
these kids often have a very tough time. Up to two-thirds of the 18-
year olds don't even complete high school or get a GED.
  The bill's provisions to help our young people who age out of foster 
care are very strong. Our Subcommittee has worked very hard to get 
bipartisan and widespread agreement on the best ways to do this.
  I believe it's important, however, to raise some concerns about how 
we pay for this bill today. I firmly believe that increases in one 
human services program should not come at the expense of another 
critical program. The bill repeals the ``hold harmless'' provision that 
was a part of the welfare reform law.
  In a nutshell, the ``hold harmless'' provision in current law ensures 
that if, in a given year, the states do not reach their 1995 level of 
child support collections, the federal government will hold them 
harmless and provide funds to make up for the state shortfalls.
  But repeal of ``hold harmless'' points to a bigger issue--the 
commitments that we have made to the states as a part of the welfare 
reform effort. Welfare reform is a partnership, between the Federal 
Government and all 50 states. Two issues are central to that 
commitment:
  First, this was a promise, I fear that this sets a bad precedent, and 
other promises that this Congress has made to the states in welfare 
will erode. We've seen it already, with the issue of administrative 
expenses for TANF funding. We're seeing it again today, and if we're 
not careful, we'll see it again tomorrow on another issue.
  Second, the states have made budget decisions for their entire human 
services budgets based on the promises they've been made--it's an 
interlocking and complex web, and pulling back from our financial 
commitment in one area is going to require the sates to make up that 
shortfall in other ways.
  I applaud our Subcommittee Chairman for her efforts to help these 
20,000 children coming out of the foster care system each year. I also 
applaud her for the important efforts she's made in her Manager's 
Amendment, to allow at least a partial ``hold harmless'' payment to 
states that share more of their child support collections with 
families.
  Today I will support this bill, for the important ways it helps our 
nation's foster care children. But I would strongly urge the Chairman 
and others to continue to seek other ways to pay for the provisions in 
our bill, as the process moves forward.
  Mrs. MINK of Hawaii. Mr. Chairman, I rise to express my support for 
H.R. 1802, the Foster Care Independence Act of 1999. I commend you for 
bringing this legislation to the Floor.
  I am particularly pleased that this bill will allow all U.S. Veterans 
who decide to move out of the country, to continue receiving a portion 
of their SSI benefits. Although when H.R. 1802 passed out of committee, 
this section was intended to provide special recognition to certain 
World War II Filipino Veterans who served under the U.S. flag and were 
abandoned by the U.S. government soon after the war ended, I certainly 
do support expanding this provision to include all U.S. Veterans.
  Nonetheless, I still think the United States must uphold the promises 
it made to Filipino Veterans who served under the U.S. flag while the 
Republic of the Philippines was a possession of the United States. The 
Philippines was a United States possession from 1898, when it was ceded 
from Spain following the Spanish-American War, until Independence in 
1946.
  With the impending threat of World War II, on July 26, 1941, 
President Roosevelt, by executive order brought the Philippine 
Commonwealth Army into the service of the U.S. Army Forces of the Far 
East. Subsequently, the U.S. Army took over responsibility for supply 
and pay of the Philippine Commonwealth Army. Five months later on 
December 7, 1941, the Japanese attacked Pearl Harbor in Hawaii and 
Clark Airfield in the Philippines. Despite the fall of the Philippines 
to Japan in 1942, resistance efforts by organized Filipino soldier and 
guerrilla groups led by the United States Commanders, continued 
throughout the Japanese occupation of the Philippines. These brave 
resistance efforts slowed the Japanese advance and bought the U.S. the 
precious time it needed to rebuild the Pacific Fleet.
  There are four groups of Filipino nationals who are entitled to all 
or some of the benefits to which U.S. veterans are entitled: 1. 
Filipinos who served in the regular components of the U.S. Armed 
Forces; 2. Those who enlisted in the Filipino-manned units of the U.S. 
Army prior to October 6, 1945, known as Old Scouts; 3. Those who 
enlisted in the U.S. Armed Forces between October 6, 1945, and June 30, 
1947, known as New Scouts; and Members of the Philippine Commonwealth 
Army who on July 26, 1941, were called into the service of the U.S. 
Armed Forces. This group also includes guerrilla resistance units that 
were recognized by the U.S. Army.
  Filipinos residing in the U.S. who were in the first two groups 
mentioned, the regular components of U.S. Armed Forces and in the Old 
Scouts, are eligible for outpatient care, hospital care, and nursing 
home care for their service-connected disabilities and nonservice-
connected disabilities, on the same basis as any U.S. veteran. Contract 
care for these

[[Page 14391]]

services is also authorized for these groups. They are also entitled 
to: service-connected compensation and dependents' education benefits; 
nonservice-connected pension; and both service-connected and 
nonservice-connected burial benefits, life insurance and the home loan 
program.
  Filipinos residing in the U.S. who were however in the second two 
groups, the New Scouts and the Philippine Commonwealth Army, are only 
eligible for outpatient, hospital, and nursing home care for service-
connected disabilities and within the limits of the DVA facilities. 
They are not eligible for contract care for these services. Both groups 
are also eligible for service-connected compensation and dependents' 
education benefits at half the rate provided to other U.S. veterans. 
Both groups are eligible for both service and nonservice connected life 
insurance but only members of the Commonwealth Army are eligible for 
service-connected burial benefits and neither are eligible for 
nonservice-connected burial benefits.
  Despite the Old Scouts, New Scouts, Commonwealth Army and U.S. Armed 
Forces fighting side by side all under U.S. command and while the 
Philippines was a U.S. possession, their benefits and recognition by 
the U.S. Government vary significantly. It is time that we provide all 
of these veterans the recognition they deserve.
  Historical records show that many U.S. Government officials, in their 
official capabilities, publicly conveyed that these Filipino Veterans 
should be entitled to full U.S. Veterans' benefits. General MacArthur 
broadcast numerous radio messages recommending that members of the 
Philippine Commonwealth Army be paid the same as members of the U.S. 
Army. The War Department reported to General MacArthur that the New 
Filipino Scouts were entitled to all benefits, including the G.I. Bill 
of Rights and VA benefits. General Omar Bradley, as Director of the VA, 
advised the Senate Appropriations Committee that the term ``veterans'' 
included Philippine Commonwealth Army veterans. Finally President 
Truman ``took exception'' to the provision in Public Law 79-301 which 
limited benefits for Commonwealth Army veterans and initiated an 
intergovernmental committee to examine opportunities for restoring 
benefits to these veterans. These documented statements provide sound 
evidence that Filipino soldiers were led to believe they would be 
entitled to full U.S. Veterans benefits after their service.
  Despite the heroism and sacrifices of these valiant soldiers who 
served under the U.S. flag, the U.S. turned its back on them denying 
them the benefits and more importantly, the honor, that they had fought 
for, deserved and earned. It is time the United States make good on its 
promises. H.R. 1802 is a step in the right direction as it will enable 
all U.S. Veterans, including many of these WWII Filipino Veterans who 
are now living in or near poverty in the U.S., to keep part of their 
SSI benefits if they choose to live in another country.
  I am pleased to support H.R. 1802 and I am delighted that we are 
extending these additional benefits to our veterans, but we must not 
rest until those WWII Filipino Veterans, whom the U.S. has neglected 
for so many years, receive the benefits and honor they deserve.
  The CHAIRMAN. All time for general debate has expired.
  Pursuant to the rule, the committee amendment in the nature of a 
substitute recommended by the Committee on Ways and Means is considered 
as an original bill for the purpose of amendment under the 5-minute 
rule and is considered read.
  The text of the committee amendment in the nature of a substitute is 
as follows:

                               H.R. 1802

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.

              TITLE I--IMPROVED INDEPENDENT LIVING PROGRAM

            Subtitle A--Improved Independent Living Program

Sec. 101. Improved independent living program.

               Subtitle B--Related Foster Care Provision

Sec. 111. Increase in amount of assets allowable for children in foster 
              care.

                    Subtitle C--Medicaid Amendments

Sec. 121. State option of medicaid coverage for adolescents leaving 
              foster care.

                     TITLE II--SSI FRAUD PREVENTION

          Subtitle A--Fraud Prevention and Related Provisions

Sec. 201. Liability of representative payees for overpayments to 
              deceased recipients.
Sec. 202. Recovery of overpayments of SSI benefits from lump sum SSI 
              benefit payments.
Sec. 203. Additional debt collection practices.
Sec. 204. Requirement to provide State prisoner information to Federal 
              and federally assisted benefit programs.
Sec. 205. Rules relating to collection of overpayments from individuals 
              convicted of crimes.
Sec. 206. Treatment of assets held in trust under the SSI program.
Sec. 207. Disposal of resources for less than fair market value under 
              the SSI program.
Sec. 208. Administrative procedure for imposing penalties for false or 
              misleading statements.
Sec. 209. Exclusion of representatives and health care providers 
              convicted of violations from participation in social 
              security programs.
Sec. 210. State data exchanges.
Sec. 211. Study on possible measures to improve fraud prevention and 
              administrative processing.
Sec. 212. Annual report on amounts necessary to combat fraud.
Sec. 213. Computer matches with medicare and medicaid 
              institutionalization data.
Sec. 214. Access to information held by financial institutions.

       Subtitle B--Benefits for Filipino Veterans of World War II

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

                        TITLE III--CHILD SUPPORT

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

                    TITLE IV--TECHNICAL CORRECTIONS

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

              TITLE I--IMPROVED INDEPENDENT LIVING PROGRAM

            Subtitle A--Improved Independent Living Program

     SEC. 101. IMPROVED INDEPENDENT LIVING PROGRAM.

       (a) Findings.--The Congress finds the following:
       (1) States are required to make reasonable efforts to find 
     adoptive families for all children, including older children, 
     for whom reunification with their biological family is not in 
     the best interests of the child. However, some older children 
     will continue to live in foster care. These children should 
     be enrolled in an Independent Living program designed and 
     conducted by State and local government to help prepare them 
     for employment, postsecondary education, and successful 
     management of adult responsibilities.
       (2) About 20,000 adolescents leave the Nation's foster care 
     system each year because they have reached 18 years of age 
     and are expected to support themselves.
       (3) Congress has received extensive information that 
     adolescents leaving foster care have significant difficulty 
     making a successful transition to adulthood; this information 
     shows that children aging out of foster care show high rates 
     of homelessness, non-marital childbearing, poverty, and 
     delinquent or criminal behavior; they are also frequently the 
     target of crime and physical assaults.
       (4) The Nation's State and local governments, with 
     financial support from the Federal Government, should offer 
     an extensive program of education, training, employment, and 
     financial support for young adults leaving foster care, with 
     participation in such program beginning several years before 
     high school graduation and continuing, as needed, until the 
     young adults emancipated from foster care establish 
     independence or reach 21 years of age.
       (b) Improved Independent Living Program.--Section 477 of 
     the Social Security Act (42 U.S.C. 677) is amended to read as 
     follows:

     ``SEC. 477. INDEPENDENT LIVING PROGRAM.

       ``(a) Purpose.--The purpose of this section is to provide 
     States with flexible funding that will enable programs to be 
     designed and conducted--
       ``(1) to identify children who are likely to remain in 
     foster care until 18 years of age and to design programs that 
     help these children make the transition to self-sufficiency 
     by providing services such as assistance in obtaining a high 
     school diploma, career exploration, vocational training, job 
     placement

[[Page 14392]]

     and retention, training in daily living skills, training in 
     budgeting and financial management skills, and substance 
     abuse prevention;
       ``(2) to help children who are likely to remain in foster 
     care until 18 years of age receive the education, training, 
     and services necessary to obtain employment;
       ``(3) to help children who are likely to remain in foster 
     care until 18 years of age prepare for and enter 
     postsecondary training and education institutions;
       ``(4) to provide personal and emotional support to children 
     aging out of foster care, through mentors and the promotion 
     of interactions with dedicated adults; and
       ``(5) to provide financial, housing, counseling, 
     employment, education, and other appropriate support and 
     services to former foster care recipients between 18 and 21 
     years of age to complement their own efforts to achieve self-
     sufficiency.
       ``(b) Applications.--
       ``(1) In general.--A State may apply for funds from its 
     allotment under subsection (c) for a period of 5 consecutive 
     fiscal years by submitting to the Secretary, in writing, a 
     plan that meets the requirements of paragraph (2) and the 
     certifications required by paragraph (3) with respect to the 
     plan.
       ``(2) State plan.--A plan meets the requirements of this 
     paragraph if the plan specifies which State agency or 
     agencies will administer, supervise, or oversee the programs 
     carried out under the plan, and describes how the State 
     intends to do the following:
       ``(A) Design and deliver programs to achieve the purposes 
     of this section.
       ``(B) Ensure that all political subdivisions in the State 
     are served by the program, though not necessarily in a 
     uniform manner.
       ``(C) Ensure that the programs serve children of various 
     ages and at various stages of achieving independence.
       ``(D) Involve the public and private sectors in helping 
     adolescents in foster care achieve independence.
       ``(E) Use objective criteria for determining eligibility 
     for benefits and services under the programs, and for 
     ensuring fair and equitable treatment of benefit recipients.
       ``(F) Cooperate in national evaluations of the effects of 
     the programs in achieving the purposes of this section.
       ``(3) Certifications.--The certifications required by this 
     paragraph with respect to a plan are the following:
       ``(A) A certification by the chief executive officer of the 
     State that the State will provide assistance and services to 
     children who have left foster care but have not attained 21 
     years of age.
       ``(B) A certification by the chief executive officer of the 
     State that not more than 30 percent of the amounts paid to 
     the State from its allotment under subsection (c) for a 
     fiscal year will be expended for room or board for children 
     who have left foster care and have attained 18 years of age 
     but not 21 years of age.
       ``(C) A certification by the chief executive officer of the 
     State that none of the amounts paid to the State from its 
     allotment under subsection (c) will be expended for room or 
     board for any child who has not attained 18 years of age.
       ``(D) A certification by the chief executive officer of the 
     State that the State has consulted widely with public and 
     private organizations in developing the plan and that the 
     State has given all interested members of the public at least 
     30 days to submit comments on the plan.
       ``(E) A certification by the chief executive officer of the 
     State that the State will make every effort to coordinate the 
     State programs receiving funds provided from an allotment 
     made to the State under subsection (c) with other Federal and 
     State programs for youth, especially transitional living 
     youth projects funded under part B of title III of the 
     Juvenile Justice and Delinquency Prevention Act of 1974.
       ``(F) A certification by the chief executive officer of the 
     State that each Indian tribe in the State has been informed 
     about the programs to be carried out under the plan; that 
     each such tribe has been given an opportunity to comment on 
     the plan before submission to the Secretary; and that 
     benefits and services under the programs will be made 
     available to Indian children in the State on the same basis 
     as to other children in the State.
       ``(G) A certification by the chief executive officer of the 
     State that the State has established and will enforce 
     standards and procedures to prevent fraud and abuse in the 
     programs carried out under the plan.
       ``(4) Approval.--The Secretary shall approve an application 
     submitted by a State pursuant to paragraph (1) for a period 
     if--
       ``(A) the application is submitted on or before June 30 of 
     the calendar year in which such period begins;
       ``(B) the Secretary finds that the application contains the 
     material required by paragraph (1); and
       ``(C) all children in the State who have left foster care 
     and have attained 18 years of age but not 21 years of age are 
     eligible for medical assistance under the State plan approved 
     under title XIX.
       ``(5) Authority to implement certain amendments; 
     notification.--A State with an application approved under 
     paragraph (4) may implement any amendment to the plan 
     contained in the application if the application, 
     incorporating the amendment, would be approvable under 
     paragraph (4). Within 30 days after a State implements any 
     such amendment, the State shall notify the Secretary of the 
     amendment.
       ``(6) Availability.--The State shall make available to the 
     public any application submitted by the State pursuant to 
     paragraph (1), and a brief summary of the plan contained in 
     the application.
       ``(c) Allotments to States.--
       ``(1) In general.--From the amount specified in subsection 
     (h) that remains after applying subsection (g)(2) for a 
     fiscal year, the Secretary shall allot to each State with an 
     application approved under subsection (b) for the fiscal year 
     the amount which bears the same ratio to such remaining 
     amount as the number of children in foster care under a 
     program of the State in the most recent fiscal year for which 
     such information is available bears to the total number of 
     children in foster care in all States for such most recent 
     fiscal year.
       ``(2) Hold harmless provision.--The Secretary shall ratably 
     reduce the allotments made to States pursuant to paragraph 
     (1) for a fiscal year to the extent necessary to ensure that 
     the amount allotted to each State under paragraph (1) and 
     this paragraph for the fiscal year is not less than the 
     amount payable to the State under this section (as in effect 
     before the enactment of the Foster Care Independence Act of 
     1999) for fiscal year 1998.
       ``(3) Reallotment of unused funds.--The Secretary shall use 
     the formula provided in paragraph (1) of this subsection to 
     reallot among the States with applications approved under 
     subsection (b) for a fiscal year any amount allotted to a 
     State under this subsection for the preceding year that is 
     not payable to the State for the preceding year.
       ``(d) Use of Funds.--
       ``(1) In general.--A State to which an amount is paid from 
     its allotment under subsection (c) may use the amount in any 
     manner that is reasonably calculated to accomplish the 
     purposes of this section.
       ``(2) No supplantation of other funds available for same 
     general purposes.--The amounts paid to a State from its 
     allotment under subsection (c) shall be used to supplement 
     and not supplant any other funds which are available for the 
     same general purposes in the State.
       ``(e) Penalties.--
       ``(1) Use of grant in violation of this part.--If the 
     Secretary is made aware, by an audit conducted under chapter 
     75 of title 31, United States Code, or by any other means, 
     that a program receiving funds from an allotment made to a 
     State under subsection (c) has been operated in a manner that 
     is inconsistent with, or not disclosed in the State 
     application approved under subsection (b), the Secretary 
     shall assess a penalty against the State in an amount equal 
     to not less than 1 percent and not more than 5 percent of the 
     amount of the allotment.
       ``(2) Failure to comply with data reporting requirement.--
     The Secretary shall assess a penalty against a State that 
     fails during a fiscal year to comply with an information 
     collection plan implemented under subsection (f) in an amount 
     equal to not less than 1 percent and not more than 5 percent 
     of the amount allotted to the State for the fiscal year.
       ``(3) Penalties based on degree of noncompliance.--The 
     Secretary shall assess penalties under this subsection based 
     on the degree of noncompliance.
       ``(f) Data Collection and Performance Measurement.--
       ``(1) In general.--The Secretary, in consultation with 
     State and local public officials responsible for 
     administering independent living and other child welfare 
     programs, child welfare advocates, members of Congress, youth 
     service providers, and researchers, shall--
       ``(A) develop outcome measures (including measures of 
     educational attainment, employment, avoidance of dependency, 
     homelessness, nonmarital childbirth, and high-risk behaviors) 
     that can be used to assess the performance of States in 
     operating independent living programs;
       ``(B) identify data elements needed to track--
       ``(i) the number and characteristics of children receiving 
     services under this section;
       ``(ii) the type and quantity of services being provided; 
     and
       ``(iii) State performance on the outcome measures; and
       ``(C) develop and implement a plan to collect the needed 
     information beginning with the 2nd fiscal year beginning 
     after the date of the enactment of this section.
       ``(2) Report to the congress.--Within 12 months after the 
     date of the enactment of this section, the Secretary shall 
     submit to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate a 
     report detailing the plans and timetable for collecting from 
     the States the information described in paragraph (1).
       ``(g) Evaluations.--
       ``(1) In general.--The Secretary shall conduct evaluations 
     of such State programs funded under this section as the 
     Secretary deems to be innovative or of potential national 
     significance. The evaluation of any

[[Page 14393]]

     such program shall include information on the effects of the 
     program on education, employment, and personal development. 
     To the maximum extent practicable, the evaluations shall be 
     based on rigorous scientific standards including random 
     assignment to treatment and control groups. The Secretary is 
     encouraged to work directly with State and local governments 
     to design methods for conducting the evaluations, directly or 
     by grant, contract, or cooperative agreement.
       ``(2) Funding of evaluations.--The Secretary shall reserve 
     1.5 percent of the amount specified in subsection (h) for a 
     fiscal year to carry out, during the fiscal year, evaluation, 
     technical assistance, performance measurement, and data 
     collection activities related to this section, directly or 
     through grants, contracts, or cooperative agreements with 
     appropriate entities.
       ``(h) Limitations on Authorization of Appropriations.--To 
     carry out this section, there are authorized to be 
     appropriated to the Secretary $140,000,000 for each fiscal 
     year.''.
       (c) Payments to States.--Section 474(a)(4) of such Act (42 
     U.S.C. 674(a)(4)) is amended to read as follows:
       ``(4) the lesser of--
       ``(A) 80 percent of the amount (if any) by which--
       ``(i) the total amount expended by the State during the 
     fiscal year in which the quarter occurs to carry out programs 
     in accordance with the State application approved under 
     section 477(b) for the period in which the quarter occurs 
     (including any amendment that meets the requirements of 
     section 477(b)(5)); exceeds
       ``(ii) the total amount of any penalties assessed against 
     the State under section 477(e) during the fiscal year in 
     which the quarter occurs; or
       ``(B) the amount allotted to the State under section 477 
     for the fiscal year in which the quarter occurs, reduced by 
     the total of the amounts payable to the State under this 
     paragraph for all prior quarters in the fiscal year.''.
       (d) Regulations.--Not later than 12 months after the date 
     of the enactment of this Act, the Secretary of Health and 
     Human Services shall issue such regulations as may be 
     necessary to carry out the amendments made by this section.

               Subtitle B--Related Foster Care Provision

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

       Section 472(a) of the Social Security Act (42 U.S.C. 
     672(a)) is amended by adding at the end the following: ``In 
     determining whether a child would have received aid under a 
     State plan approved under section 402 (as in effect on July 
     16, 1996), a child whose resources (determined pursuant to 
     section 402(a)(7)(B), as so in effect) have a combined value 
     of not more than $10,000 shall be considered to be a child 
     whose resources have a combined value of not more than $1,000 
     (or such lower amount as the State may determine for purposes 
     of such section 402(a)(7)(B)).''.

                    Subtitle C--Medicaid Amendments

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

       (a) In General.--Title XIX of the Social Security Act is 
     amended--
       (1) in section 1902(a)(10)(A)(ii) (42 U.S.C. 
     1396a(a)(10)(A)(ii))--
       (A) by striking ``or'' at the end of subclause (XIII);
       (B) by adding ``or'' at the end of subclause (XIV); and
       (C) by adding at the end the following new subclause:

       ``(XV) who are independent foster care adolescents (as 
     defined in (section 1905(v)(1)), or who are within any 
     reasonable categories of such adolescents specified by the 
     State;''; and

       (2) by adding at the end of section 1905 (42 U.S.C. 1396d) 
     the following new subsection:
       ``(v)(1) For purposes of this title, the term `independent 
     foster care adolescent' means an individual--
       ``(A) who is under 21 years of age;
       ``(B) who, on the individual's 18th birthday, was in foster 
     care under the responsibility of a State; and
       ``(C) whose assets, resources, and income do not exceed 
     such levels (if any) as the State may establish consistent 
     with paragraph (2).
       ``(2) The levels established by a State under paragraph 
     (1)(C) may not be less than the corresponding levels applied 
     by the State under section 1931(b).
       ``(3) A State may limit the eligibility of independent 
     foster care adolescents under section 1902(a)(10)(A)(ii)(XV) 
     to those individuals with respect to whom foster care 
     maintenance payments or independent living services were 
     furnished under a program funded under part E of title IV 
     before the date the individuals attained 18 years of age.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     apply to medical assistance for items and services furnished 
     on or after October 1, 1999.

                     TITLE II--SSI FRAUD PREVENTION

          Subtitle A--Fraud Prevention and Related Provisions

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

       (a) Amendment to Title II.--Section 204(a)(2) of the Social 
     Security Act (42 U.S.C. 404(a)(2)) is amended by adding at 
     the end the following new sentence: ``If any payment of more 
     than the correct amount is made to a representative payee on 
     behalf of an individual after the individual's death, the 
     representative payee shall be liable for the repayment of the 
     overpayment, and the Commissioner of Social Security shall 
     establish an overpayment control record under the social 
     security account number of the representative payee.''.
       (b) Amendment to Title XVI.--Section 1631(b)(2) of such Act 
     (42 U.S.C. 1383(b)(2)) is amended by adding at the end the 
     following new sentence: ``If any payment of more than the 
     correct amount is made to a representative payee on behalf of 
     an individual after the individual's death, the 
     representative payee shall be liable for the repayment of the 
     overpayment, and the Commissioner of Social Security shall 
     establish an overpayment control record under the social 
     security account number of the representative payee.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to overpayments made 12 months or more after the 
     date of the enactment of this Act.

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

       (a) In General.--Section 1631(b)(1)(B)(ii) of the Social 
     Security Act (42 U.S.C. 1383(b)(1)(B)(ii)) is amended--
       (1) by inserting ``monthly'' before ``benefit payments''; 
     and
       (2) by inserting ``and in the case of an individual or 
     eligible spouse to whom a lump sum is payable under this 
     title (including under section 1616(a) of this Act or under 
     an agreement entered into under section 212(a) of Public Law 
     93-66) shall, as at least one means of recovering such 
     overpayment, make the adjustment or recovery from the lump 
     sum payment in an amount equal to not less than the lesser of 
     the amount of the overpayment or 50 percent of the lump sum 
     payment,'' before ``unless fraud''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect 12 months after the date of the enactment 
     of this Act and shall apply to amounts incorrectly paid which 
     remain outstanding on or after such date.

     SEC. 203. ADDITIONAL DEBT COLLECTION PRACTICES.

       (a) In General.--Section 1631(b) of the Social Security Act 
     (42 U.S.C. 1383(b)) is amended--
       (1) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively; and
       (2) by inserting after paragraph (3) the following:
       ``(4)(A) With respect to any delinquent amount, the 
     Commissioner of Social Security may use the collection 
     practices described in sections 3711(f), 3716, 3717, and 3718 
     of title 31, United States Code, and in section 5514 of title 
     5, United States Code, all as in effect immediately after the 
     enactment of the Debt Collection Improvement Act of 1996.
       ``(B) For purposes of subparagraph (A), the term 
     `delinquent amount' means an amount--
       ``(i) in excess of the correct amount of payment under this 
     title;
       ``(ii) paid to a person after such person has attained 18 
     years of age; and
       ``(iii) determined by the Commissioner of Social Security, 
     under regulations, to be otherwise unrecoverable under this 
     section after such person ceases to be a beneficiary under 
     this title.''.
       (b) Conforming Amendments.--Section 3701(d)(2) of title 31, 
     United States Code, is amended by striking ``section 204(f)'' 
     and inserting ``sections 204(f) and 1631(b)(4)''.
       (c) Technical Amendments.--Section 204(f) of the Social 
     Security Act (42 U.S.C. 404(f)) is amended--
       (1) by striking ``3711(e)'' and inserting ``3711(f)''; and
       (2) by inserting ``all'' before ``as in effect''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to debt outstanding on or after the date of the 
     enactment of this Act.

     SEC. 204. REQUIREMENT TO PROVIDE STATE PRISONER INFORMATION 
                   TO FEDERAL AND FEDERALLY ASSISTED BENEFIT 
                   PROGRAMS.

       Section 1611(e)(1)(I)(ii)(II) of the Social Security Act 
     (42 U.S.C. 1382(e)(1)(I)(ii)(II)) is amended by striking ``is 
     authorized to'' and inserting ``shall''.

     SEC. 205. RULES RELATING TO COLLECTION OF OVERPAYMENTS FROM 
                   INDIVIDUALS CONVICTED OF CRIMES.

       (a) Waivers Inapplicable to Overpayments by Reason of 
     Payment in Months in Which Beneficiary Is a Prisoner or a 
     Fugitive.--
       (1) Amendment to title ii.--Section 204(b) of the Social 
     Security Act (42 U.S.C. 404(b)) is amended--
       (A) by inserting ``(1)'' after ``(b)''; and
       (B) by adding at the end the following:
       ``(2) Paragraph (1) shall not apply with respect to any 
     payment to any person made during a month in which such 
     benefit was not payable under section 202(x).''.
       (2) Amendment to title xvi.--Section 1631(b)(1)(B)(i) of 
     such Act (42 U.S.C.

[[Page 14394]]

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

     ``The Commissioner shall not refrain from recovering 
     overpayments from resources currently available to any 
     individual solely because the individual is confined as 
     described in clause (i) or (ii) of section 202(x)(1)(A).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to overpayments made in, and to benefits payable 
     for, months beginning 24 months or more after the date of the 
     enactment of this Act.

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

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

                                ``Trusts

       ``(e)(1) In determining the resources of an individual, 
     paragraph (3) shall apply to a trust (other than a trust 
     described in paragraph (5)) established by the individual.
       ``(2)(A) For purposes of this subsection, an individual 
     shall be considered to have established a trust if any assets 
     of the individual (or of the individual's spouse) are 
     transferred to the trust other than by will.
       ``(B) In the case of an irrevocable trust to which are 
     transferred the assets of an individual (or of the 
     individual's spouse) and the assets of any other person, this 
     subsection shall apply to the portion of the trust 
     attributable to the assets of the individual (or of the 
     individual's spouse).
       ``(C) This subsection shall apply to a trust without regard 
     to--
       ``(i) the purposes for which the trust is established;
       ``(ii) whether the trustees have or exercise any discretion 
     under the trust;
       ``(iii) any restrictions on when or whether distributions 
     may be made from the trust; or
       ``(iv) any restrictions on the use of distributions from 
     the trust.
       ``(3)(A) In the case of a revocable trust established by an 
     individual, the corpus of the trust shall be considered a 
     resource available to the individual.
       ``(B) In the case of an irrevocable trust established by an 
     individual, if there are any circumstances under which 
     payment from the trust could be made to or for the benefit of 
     the individual or the individual's spouse, the portion of the 
     corpus from which payment to or for the benefit of the 
     individual or the individual's spouse could be made shall be 
     considered a resource available to the individual.
       ``(4) The Commissioner of Social Security may waive the 
     application of this subsection with respect to an individual 
     if the Commissioner determines that such application would 
     work an undue hardship (as determined on the basis of 
     criteria established by the Commissioner) on the individual.
       ``(5) This subsection shall not apply to a trust described 
     in subparagraph (A) or (C) of section 1917(d)(4).
       ``(6) For purposes of this subsection--
       ``(A) the term `trust' includes any legal instrument or 
     device that is similar to a trust;
       ``(B) the term `corpus' means, with respect to a trust, all 
     property and other interests held by the trust, including 
     accumulated earnings and any other addition to the trust 
     after its establishment (except that such term does not 
     include any such earnings or addition in the month in which 
     the earnings or addition is credited or otherwise transferred 
     to the trust); and
       ``(C) the term `asset' includes any income or resource of 
     the individual or of the individual's spouse, including--
       ``(i) any income excluded by section 1612(b);
       ``(ii) any resource otherwise excluded by this section; and
       ``(iii) any other payment or property to which the 
     individual or the individual's spouse is entitled but does 
     not receive or have access to because of action by--
       ``(I) the individual or spouse;
       ``(II) a person or entity (including a court) with legal 
     authority to act in place of, or on behalf of, the individual 
     or spouse; or
       ``(III) a person or entity (including a court) acting at 
     the direction of, or on the request of, the individual or 
     spouse.''.
       (b) Treatment as Income.--Section 1612(a)(2) of such Act 
     (42 U.S.C. 1382a(a)(2)) is amended--
       (1) by striking ``and'' at the end of subparagraph (E);
       (2) by striking the period at the end of subparagraph (F) 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(G) any earnings of, and additions to, the corpus of a 
     trust established by an individual (within the meaning of 
     section 1613(e)), of which the individual is a beneficiary, 
     to which section 1613(e) applies, and, in the case of an 
     irrevocable trust, with respect to which circumstances exist 
     under which a payment from the earnings or additions could be 
     made to or for the benefit of the individual.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2000, and shall apply to 
     trusts established on or after such date.

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

       (a) In General.--Section 1613(c) of the Social Security Act 
     (42 U.S.C. 1382b(c)) is amended--
       (1) in the caption, by striking ``Notification of Medicaid 
     Policy Restricting Eligibility of Institutionalized 
     Individuals for Benefits Based on'';
       (2) in paragraph (1)--
       (A) in subparagraph (A)--
       (i) by inserting ``paragraph (1) and'' after ``provisions 
     of'';
       (ii) by striking ``title XIX'' the first place it appears 
     and inserting ``this title and title XIX, respectively,'';
       (iii) by striking ``subparagraph (B)'' and inserting 
     ``clause (ii)'';
       (iv) by striking ``paragraph (2)'' and inserting 
     ``subparagraph (B)'';
       (B) in subparagraph (B)--
       (i) by striking ``by the State agency''; and
       (ii) by striking ``section 1917(c)'' and all that follows 
     and inserting ``paragraph (1) or section 1917(c).''; and
       (C) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively;
       (3) in paragraph (2)--
       (A) by striking ``(2)'' and inserting ``(B)''; and
       (B) by striking ``paragraph (1)(B)'' and inserting 
     ``subparagraph (A)(ii)'';
       (4) by striking ``(c)(1)'' and inserting ``(2)(A)''; and

[[Page 14395]]

       (5) by inserting before paragraph (2) (as so redesignated 
     by paragraph (4) of this subsection) the following:
       ``(c)(1)(A)(i) If an individual or the spouse of an 
     individual disposes of resources for less than fair market 
     value on or after the look-back date described in clause 
     (ii)(I), the individual is ineligible for benefits under this 
     title for months during the period beginning on the date 
     described in clause (iii) and equal to the number of months 
     calculated as provided in clause (iv).
       ``(ii)(I) The look-back date described in this subclause is 
     a date that is 36 months before the date described in 
     subclause (II).
       ``(II) The date described in this subclause is the date on 
     which the individual applies for benefits under this title 
     or, if later, the date on which the individual (or the spouse 
     of the individual) disposes of resources for less than fair 
     market value.
       ``(iii) The date described in this clause is the first day 
     of the first month in or after which resources were disposed 
     of for less than fair market value and which does not occur 
     in any other period of ineligibility under this paragraph.
       ``(iv) The number of months calculated under this clause 
     shall be equal to--
       ``(I) the total, cumulative uncompensated value of all 
     resources so disposed of by the individual (or the spouse of 
     the individual) on or after the look-back date described in 
     clause (ii)(I); divided by
       ``(II) the amount of the maximum monthly benefit payable 
     under section 1611(b), plus the amount (if any) of the 
     maximum State supplementary payment corresponding to the 
     State's payment level applicable to the individual's living 
     arrangement and eligibility category that would otherwise be 
     payable to the individual by the Commissioner pursuant to an 
     agreement under section 1616(a) of this Act or section 212(b) 
     of Public Law 93-66, for the month in which occurs the date 
     described in clause (ii)(II),

     rounded, in the case of any fraction, to the nearest whole 
     number, but shall not in any case exceed 36 months.
       ``(B)(i) Notwithstanding subparagraph (A), this subsection 
     shall not apply to a transfer of a resource to a trust if the 
     portion of the trust attributable to the resource is 
     considered a resource available to the individual pursuant to 
     subsection (e)(3) (or would be so considered but for the 
     application of subsection (e)(4)).
       ``(ii) In the case of a trust established by an individual 
     or an individual's spouse (within the meaning of subsection 
     (e)), if from such portion of the trust, if any, that is 
     considered a resource available to the individual pursuant to 
     subsection (e)(3) (or would be so considered but for the 
     application of subsection (e)(4)) or the residue of the 
     portion on the termination of the trust--
       ``(I) there is made a payment other than to or for the 
     benefit of the individual; or
       ``(II) no payment could under any circumstance be made to 
     the individual,

     then, for purposes of this subsection, the payment described 
     in clause (I) or the foreclosure of payment described in 
     clause (II) shall be considered a transfer of resources by 
     the individual or the individual's spouse as of the date of 
     the payment or foreclosure, as the case may be.
       ``(C) An individual shall not be ineligible for benefits 
     under this title by reason of the application of this 
     paragraph to a disposal of resources by the individual or the 
     spouse of the individual, to the extent that--
       ``(i) the resources are a home and title to the home was 
     transferred to--
       ``(I) the spouse of the transferor;
       ``(II) a child of the transferor who has not attained 21 
     years of age, or is blind or disabled;
       ``(III) a sibling of the transferor who has an equity 
     interest in such home and who was residing in the 
     transferor's home for a period of at least 1 year immediately 
     before the date the transferor becomes an institutionalized 
     individual; or
       ``(IV) a son or daughter of the transferor (other than a 
     child described in subclause (II)) who was residing in the 
     transferor's home for a period of at least 2 years 
     immediately before the date the transferor becomes an 
     institutionalized individual, and who provided care to the 
     transferor which permitted the transferor to reside at home 
     rather than in such an institution or facility;
       ``(ii) the resources--
       ``(I) were transferred to the transferor's spouse or to 
     another for the sole benefit of the transferor's spouse;
       ``(II) were transferred from the transferor's spouse to 
     another for the sole benefit of the transferor's spouse;
       ``(III) were transferred to, or to a trust (including a 
     trust described in section 1917(d)(4)) established solely for 
     the benefit of, the transferor's child who is blind or 
     disabled; or
       ``(IV) were transferred to a trust (including a trust 
     described in section 1917(d)(4)) established solely for the 
     benefit of an individual who has not attained 65 years of age 
     and who is disabled;
       ``(iii) a satisfactory showing is made to the Commissioner 
     of Social Security (in accordance with regulations 
     promulgated by the Commissioner) that--
       ``(I) the individual who disposed of the resources intended 
     to dispose of the resources either at fair market value, or 
     for other valuable consideration;
       ``(II) the resources were transferred exclusively for a 
     purpose other than to qualify for benefits under this title; 
     or
       ``(III) all resources transferred for less than fair market 
     value have been returned to the transferor; or
       ``(iv) the Commissioner determines, under procedures 
     established by the Commissioner, that the denial of 
     eligibility would work an undue hardship as determined on the 
     basis of criteria established by the Commissioner.
       ``(D) For purposes of this subsection, in the case of a 
     resource held by an individual in common with another person 
     or persons in a joint tenancy, tenancy in common, or similar 
     arrangement, the resource (or the affected portion of such 
     resource) shall be considered to be disposed of by the 
     individual when any action is taken, either by the individual 
     or by any other person, that reduces or eliminates the 
     individual's ownership or control of such resource.
       ``(E) In the case of a transfer by the spouse of an 
     individual that results in a period of ineligibility for the 
     individual under this subsection, the Commissioner shall 
     apportion the period (or any portion of the period) among the 
     individual and the individual's spouse if the spouse becomes 
     eligible for benefits under this title.
       ``(F) For purposes of this paragraph--
       ``(i) the term `benefits under this title' includes 
     payments of the type described in section 1616(a) of this Act 
     and of the type described in section 212(b) of Public Law 93-
     66;
       ``(ii) the term `institutionalized individual' has the 
     meaning given such term in section 1917(e)(3); and
       ``(iii) the term `trust' has the meaning given such term in 
     subsection (e)(6)(A) of this section.''.
       (b) Effective Date.--The amendments made by this section 
     shall be effective with respect to disposals made on or after 
     the date of enactment of this Act.

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

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

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

       ``(a) In General.--Any person who makes, or causes to be 
     made, a statement or representation of a material fact for 
     use in determining any initial or continuing right to or the 
     amount of--
       ``(1) monthly insurance benefits under title II; or
       ``(2) benefits or payments under title XVI,
     that the person knows or should know is false or misleading 
     or knows or should know omits a material fact or makes such a 
     statement with knowing disregard for the truth shall be 
     subject to, in addition to any other penalties that may be 
     prescribed by law, a penalty described in subsection (b) to 
     be imposed by the Commissioner of Social Security.
       ``(b) Penalty.--The penalty described in this subsection 
     is--
       ``(1) nonpayment of benefits under title II that would 
     otherwise be payable to the person; and
       ``(2) ineligibility for cash benefits under title XVI,
     for each month that begins during the applicable period 
     described in subsection (c).
       ``(c) Duration of Penalty.--The duration of the applicable 
     period, with respect to a determination by the Commissioner 
     under subsection (a) that a person has engaged in conduct 
     described in subsection (a), shall be--
       ``(1) 6 consecutive months, in the case of a first such 
     determination with respect to the person;
       ``(2) 12 consecutive months, in the case of a second such 
     determination with respect to the person; and
       ``(3) 24 consecutive months, in the case of a third or 
     subsequent such determination with respect to the person.
       ``(d) Effect on Other Assistance.--A person subject to a 
     period of nonpayment of benefits under title II or 
     ineligibility for title XVI benefits by reason of this 
     section nevertheless shall be considered to be eligible for 
     and receiving such benefits, to the extent that the person 
     would be receiving or eligible for such benefits but for the 
     imposition of the penalty, for purposes of--
       ``(1) determination of the eligibility of the person for 
     benefits under titles XVIII and XIX; and
       ``(2) determination of the eligibility or amount of 
     benefits payable under title II or XVI to another person.
       ``(e) Definition.--In this section, the term `benefits 
     under title XVI' includes State supplementary payments made 
     by the Commissioner pursuant to an agreement under section 
     1616(a) of this Act or section 212(b) of Public Law 93-66.
       ``(f) Consultations.--The Commissioner of Social Security 
     shall consult with the Inspector General of the Social 
     Security Administration regarding initiating actions under 
     this section.''.
       (b) Conforming Amendment Precluding Delayed Retirement 
     Credit for any Month

[[Page 14396]]

     to Which a Nonpayment of Benefits Penalty Applies.--Section 
     202(w)(2)(B) of such Act (42 U.S.C. 402(w)(2)(B)) is 
     amended--
       (1) by striking ``and'' at the end of clause (i);
       (2) by striking the period at the end of clause (ii) and 
     inserting ``, and''; and
       (3) by adding at the end the following:
       ``(iii) such individual was not subject to a penalty 
     imposed under section 1129A.''.
       (c) Elimination of Redundant Provision.--Section 1611(e) of 
     such Act (42 U.S.C. 1382(e)) is amended--
       (1) by striking paragraph (4);
       (2) in paragraph (6)(A)(i), by striking ``(5)'' and 
     inserting ``(4)''; and
       (3) by redesignating paragraphs (5) and (6) as paragraphs 
     (4) and (5), respectively.
       (d) Regulations.--Within 6 months after the date of the 
     enactment of this Act, the Commissioner of Social Security 
     shall develop regulations that prescribe the administrative 
     process for making determinations under section 1129A of the 
     Social Security Act (including when the applicable period in 
     subsection (c) of such section shall commence), and shall 
     provide guidance on the exercise of discretion as to whether 
     the penalty should be imposed in particular cases.
       (e) Effective Date.--The amendments made by this section 
     shall apply to statements and representations made on or 
     after the date of the enactment of this Act.

     SEC. 209. EXCLUSION OF REPRESENTATIVES AND HEALTH CARE 
                   PROVIDERS CONVICTED OF VIOLATIONS FROM 
                   PARTICIPATION IN SOCIAL SECURITY PROGRAMS.

       (a) In General.--Part A of title XI of the Social Security 
     Act (42 U.S.C. 1301-1320b-17) is amended by adding at the end 
     the following:


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

       ``Sec. 1148. (a) In General.--The Commissioner of Social 
     Security shall exclude from participation in the social 
     security programs any representative or health care 
     provider--
       ``(1) who is convicted of a violation of section 208 or 
     1632 of this Act,
       ``(2) who is convicted of any violation under title 18, 
     United States Code, relating to an initial application for or 
     continuing entitlement to, or amount of, benefits under title 
     II of this Act, or an initial application for or continuing 
     eligibility for, or amount of, benefits under title XVI of 
     this Act, or
       ``(3) who the Commissioner determines has committed an 
     offense described in section 1129(a)(1) of this Act.
       ``(b) Notice, Effective Date, and Period of Exclusion.--(1) 
     An exclusion under this section shall be effective at such 
     time, for such period, and upon such reasonable notice to the 
     public and to the individual excluded as may be specified in 
     regulations consistent with paragraph (2).
       ``(2) Such an exclusion shall be effective with respect to 
     services furnished to any individual on or after the 
     effective date of the exclusion. Nothing in this section may 
     be construed to preclude, in determining disability under 
     title II or title XVI, consideration of any medical evidence 
     derived from services provided by a health care provider 
     before the effective date of the exclusion of the health care 
     provider under this section.
       ``(3)(A) The Commissioner shall specify, in the notice of 
     exclusion under paragraph (1), the period of the exclusion.
       ``(B) Subject to subparagraph (C), in the case of an 
     exclusion under subsection (a), the minimum period of 
     exclusion shall be five years, except that the Commissioner 
     may waive the exclusion in the case of an individual who is 
     the sole source of essential services in a community. The 
     Commissioner's decision whether to waive the exclusion shall 
     not be reviewable.
       ``(C) In the case of an exclusion of an individual under 
     subsection (a) based on a conviction or a determination 
     described in subsection (a)(3) occurring on or after the date 
     of the enactment of this section, if the individual has 
     (before, on, or after such date of enactment) been convicted, 
     or if such a determination has been made with respect to the 
     individual--
       ``(i) on one previous occasion of one or more offenses for 
     which an exclusion may be effected under such subsection, the 
     period of the exclusion shall be not less than 10 years, or
       ``(ii) on 2 or more previous occasions of one or more 
     offenses for which an exclusion may be effected under such 
     subsection, the period of the exclusion shall be permanent.
       ``(c) Notice to State Agencies.--The Commissioner shall 
     promptly notify each appropriate State agency employed for 
     the purpose of making disability determinations under section 
     221 or 1633(a)--
       ``(1) of the fact and circumstances of each exclusion 
     effected against an individual under this section, and
       ``(2) of the period (described in subsection (b)(3)) for 
     which the State agency is directed to exclude the individual 
     from participation in the activities of the State agency in 
     the course of its employment.
       ``(d) Notice to State Licensing Agencies.--The Commissioner 
     shall--
       ``(1) promptly notify the appropriate State or local agency 
     or authority having responsibility for the licensing or 
     certification of an individual excluded from participation 
     under this section of the fact and circumstances of the 
     exclusion,
       ``(2) request that appropriate investigations be made and 
     sanctions invoked in accordance with applicable State law and 
     policy, and
       ``(3) request that the State or local agency or authority 
     keep the Commissioner and the Inspector General of the Social 
     Security Administration fully and currently informed with 
     respect to any actions taken in response to the request.
       ``(e) Notice, Hearing, and Judicial Review.--(1) Any 
     individual who is excluded (or directed to be excluded) from 
     participation under this section is entitled to reasonable 
     notice and opportunity for a hearing thereon by the 
     Commissioner to the same extent as is provided in section 
     205(b), and to judicial review of the Commissioner's final 
     decision after such hearing as is provided in section 205(g).
       ``(2) The provisions of section 205(h) shall apply with 
     respect to this section to the same extent as it is 
     applicable with respect to title II.
       ``(f) Application for Termination of Exclusion.--(1) An 
     individual excluded from participation under this section may 
     apply to the Commissioner, in the manner specified by the 
     Commissioner in regulations and at the end of the minimum 
     period of exclusion provided under subsection (b)(3) and at 
     such other times as the Commissioner may provide, for 
     termination of the exclusion effected under this section.
       ``(2) The Commissioner may terminate the exclusion if the 
     Commissioner determines, on the basis of the conduct of the 
     applicant which occurred after the date of the notice of 
     exclusion or which was unknown to the Commissioner at the 
     time of the exclusion, that--
       ``(A) there is no basis under subsection (a) for a 
     continuation of the exclusion, and
       ``(B) there are reasonable assurances that the types of 
     actions which formed the basis for the original exclusion 
     have not recurred and will not recur.
       ``(3) The Commissioner shall promptly notify each State 
     agency employed for the purpose of making disability 
     determinations under section 221 or 1633(a) of the fact and 
     circumstances of each termination of exclusion made under 
     this subsection.
       ``(g) Availability of Records of Excluded Representatives 
     and Health Care Providers.--Nothing in this section shall be 
     construed to have the effect of limiting access by any 
     applicant or beneficiary under title II or XVI, any State 
     agency acting under section 221 or 1633(a), or the 
     Commissioner to records maintained by any representative or 
     health care provider in connection with services provided to 
     the applicant or beneficiary prior to the exclusion of such 
     representative or health care provider under this section.
       ``(h) Reporting Requirement.--Any representative or health 
     care provider participating in, or seeking to participate in, 
     a social security program shall inform the Commissioner, in 
     such form and manner as the Commissioner shall prescribe by 
     regulation, whether such representative or health care 
     provider has been convicted of a violation described in 
     subsection (a).
       ``(i) Delegation of Authority.--The Commissioner may 
     delegate authority granted by this section to the Inspector 
     General.
       ``(j) Definitions.--For purposes of this section:
       ``(1) Exclude.--The term `exclude' from participation 
     means--
       ``(A) in connection with a representative, to prohibit from 
     engaging in representation of an applicant for, or recipient 
     of, benefits, as a representative payee under section 205(j) 
     or 1631(a)(2)(A)(ii), or otherwise as a representative, in 
     any hearing or other proceeding relating to entitlement to 
     benefits, and
       ``(B) in connection with a health care provider, to 
     prohibit from providing items or services to an applicant 
     for, or recipient of, benefits for the purpose of assisting 
     such applicant or recipient in demonstrating disability.
       ``(2) Social security program.--The term `social security 
     programs' means the program providing for monthly insurance 
     benefits under title II, and the program providing for 
     monthly supplemental security income benefits to individuals 
     under title XVI (including State supplementary payments made 
     by the Commissioner pursuant to an agreement under section 
     1616(a) of this Act or section 212(b) of Public Law 93-66).
       ``(3) Convicted.--An individual is considered to have been 
     `convicted' of a violation--
       ``(A) when a judgment of conviction has been entered 
     against the individual by a Federal, State, or local court, 
     except if the judgment of conviction has been set aside or 
     expunged;
       ``(B) when there has been a finding of guilt against the 
     individual by a Federal, State, or local court;
       ``(C) when a plea of guilty or nolo contendere by the 
     individual has been accepted by a Federal, State, or local 
     court; or
       ``(D) when the individual has entered into participation in 
     a first offender, deferred adjudication, or other arrangement 
     or program

[[Page 14397]]

     where judgment of conviction has been withheld.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to convictions of violations 
     described in paragraphs (1) and (2) of section 1148(a) of the 
     Social Security Act and determinations described in paragraph 
     (3) of such section occurring on or after the date of the 
     enactment of this Act.

     SEC. 210. STATE DATA EXCHANGES.

       Whenever the Commissioner of Social Security requests 
     information from a State for the purpose of ascertaining an 
     individual's eligibility for benefits (or the correct amount 
     of such benefits) under title II or XVI of the Social 
     Security Act, the standards of the Commissioner promulgated 
     pursuant to section 1106 of such Act or any other Federal law 
     for the use, safeguarding, and disclosure of information are 
     deemed to meet any standards of the State that would 
     otherwise apply to the disclosure of information by the State 
     to the Commissioner.

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

       (a) Study.--As soon as practicable after the date of the 
     enactment of this Act, the Commissioner of Social Security, 
     in consultation with the Inspector General of the Social 
     Security Administration and the Attorney General, shall 
     conduct a study of possible measures to improve--
       (1) prevention of fraud on the part of individuals entitled 
     to disability benefits under section 223 of the Social 
     Security Act or benefits under section 202 of such Act based 
     on the beneficiary's disability, individuals eligible for 
     supplemental security income benefits under title XVI of such 
     Act, and applicants for any such benefits; and
       (2) timely processing of reported income changes by 
     individuals receiving such benefits.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Commissioner shall submit to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate a written report 
     that contains the results of the Commissioner's study under 
     subsection (a). The report shall contain such recommendations 
     for legislative and administrative changes as the 
     Commissioner considers appropriate.

     SEC. 212. ANNUAL REPORT ON AMOUNTS NECESSARY TO COMBAT FRAUD.

       (a) In General.--Section 704(b)(1) of the Social Security 
     Act (42 U.S.C. 904(b)(1)) is amended--
       (1) by inserting ``(A)'' after ``(b)(1)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) The Commissioner shall include in the annual budget 
     prepared pursuant to subparagraph (A) an itemization of the 
     amount of funds required by the Social Security 
     Administration for the fiscal year covered by the budget to 
     support efforts to combat fraud committed by applicants and 
     beneficiaries.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to annual budgets prepared for 
     fiscal years after fiscal year 1999.

     SEC. 213. COMPUTER MATCHES WITH MEDICARE AND MEDICAID 
                   INSTITUTIONALIZATION DATA.

       (a) In General.--Section 1611(e)(1) of the Social Security 
     Act (42 U.S.C. 1382(e)(1)), as amended by section 205(b)(2) 
     of this Act, is further amended by adding at the end the 
     following:
       ``(K) For the purpose of carrying out this paragraph, the 
     Commissioner of Social Security shall conduct periodic 
     computer matches with data maintained by the Secretary of 
     Health and Human Services under title XVIII or XIX. The 
     Secretary shall furnish to the Commissioner, in such form and 
     manner and under such terms as the Commissioner and the 
     Secretary shall mutually agree, such information as the 
     Commissioner may request for this purpose. Information 
     obtained pursuant to such a match may be substituted for the 
     physician's certification otherwise required under 
     subparagraph (G)(i).''.
       (b) Conforming Amendment.--Section 1611(e)(1)(G) of such 
     Act (42 U.S.C. 1382(e)(1)(G)) is amended by striking 
     ``subparagraph (H)'' and inserting ``subparagraph (H) or 
     (K)''.

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

       Section 1631(e)(1)(B) of the Social Security Act (42 U.S.C. 
     1383(e)(1)(B)) is amended--
       (1) by striking ``(B) The'' and inserting ``(B)(i) The''; 
     and
       (2) by adding at the end the following new clause:
       ``(ii)(I) The Commissioner of Social Security may require 
     each applicant for, or recipient of, benefits under this 
     title to provide authorization by the applicant or recipient 
     (or by any other person whose income or resources are 
     material to the determination of the eligibility of the 
     applicant or recipient for such benefits) for the 
     Commissioner to obtain (subject to the cost reimbursement 
     requirements of section 1115(a) of the Right to Financial 
     Privacy Act) from any financial institution (within the 
     meaning of section 1101(1) of such Act) any financial record 
     (within the meaning of section 1101(2) of such Act) held by 
     the institution with respect to the applicant or recipient 
     (or any such other person) whenever the Commissioner 
     determines the record is needed in connection with a 
     determination with respect to such eligibility or the amount 
     of such benefits.
       ``(II) Notwithstanding section 1104(a)(1) of the Right to 
     Financial Privacy Act, an authorization provided by an 
     applicant or recipient (or any other person whose income or 
     resources are material to the determination of the 
     eligibility of the applicant or recipient) pursuant to 
     subclause (I) of this clause shall remain effective until the 
     earliest of--
       ``(aa) the rendering of a final adverse decision on the 
     applicant's application for eligibility for benefits under 
     this title;
       ``(bb) the cessation of the recipient's eligibility for 
     benefits under this title; or
       ``(cc) the express revocation by the applicant or recipient 
     (or such other person referred to in subclause (I)) of the 
     authorization, in a written notification to the Commissioner.
       ``(III)(aa) An authorization obtained by the Commissioner 
     of Social Security pursuant to this clause shall be 
     considered to meet the requirements of the Right to Financial 
     Privacy Act for purposes of section 1103(a) of such Act, and 
     need not be furnished to the financial institution, 
     notwithstanding section 1104(a) of such Act.
       ``(bb) The certification requirements of section 1103(b) of 
     the Right to Financial Privacy Act shall not apply to 
     requests by the Commissioner of Social Security pursuant to 
     an authorization provided under this clause.
       ``(cc) A request by the Commissioner pursuant to an 
     authorization provided under this clause is deemed to meet 
     the requirements of section 1104(a)(3) of the Right to 
     Financial Privacy Act and the flush language of section 1102 
     of such Act.
       ``(IV) The Commissioner shall inform any person who 
     provides authorization pursuant to this clause of the 
     duration and scope of the authorization.
       ``(V) If an applicant for, or recipient of, benefits under 
     this title (or any such other person referred to in subclause 
     (I)) refuses to provide, or revokes, any authorization made 
     by the applicant or recipient for the Commissioner of Social 
     Security to obtain from any financial institution any 
     financial record, the Commissioner may, on that basis, 
     determine that the applicant or recipient is ineligible for 
     benefits under this title.''.

       Subtitle B--Benefits for Filipino Veterans of World War II

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

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

[[Page 14398]]

       (3) Benefit income.--The term ``benefit income'' means any 
     recurring payment received by a qualified individual as an 
     annuity, pension, retirement, or disability benefit 
     (including any veterans' compensation or pension, workmen's 
     compensation payment, old-age, survivors, or disability 
     insurance benefit, railroad retirement annuity or pension, 
     and unemployment insurance benefit), but only if a similar 
     payment was received by the individual from the same (or a 
     related) source during the 12-month period preceding the 
     month in which the individual changes his place of residence 
     from the United States to the Philippines.
       (d) Effective Date.--This section shall be effective with 
     respect to supplemental security income benefits payable for 
     months beginning after the date that is 1 year after the date 
     of the enactment of this Act, or such earlier date that the 
     Commissioner of Social Security determines is 
     administratively feasible.

                        TITLE III--CHILD SUPPORT

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

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

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

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

                    TITLE IV--TECHNICAL CORRECTIONS

     SEC. 401. TECHNICAL CORRECTIONS RELATING TO AMENDMENTS MADE 
                   BY THE PERSONAL RESPONSIBILITY AND WORK 
                   OPPORTUNITY RECONCILIATION ACT OF 1996.

       (a) Section 402(a)(1)(B)(iv) of the Social Security Act (42 
     U.S.C. 602(a)(1)(B)(iv)) is amended by striking ``Act'' and 
     inserting ``section''.
       (b) Section 409(a)(7)(B)(i)(II) of the Social Security Act 
     (42 U.S.C. 609(a)(7)(B)(i)(II)) is amended by striking 
     ``part'' and inserting ``section''.
       (c) Section 413(g)(1) of the Social Security Act (42 U.S.C. 
     613(g)(1)) is amended by striking ``Act'' and inserting 
     ``section''.
       (d) Section 413(i)(1) of the Social Security Act (42 U.S.C. 
     613(i)(1)) is amended by striking ``part'' and inserting 
     ``section''.
       (e) Section 416 of the Social Security Act (42 U.S.C. 616) 
     is amended by striking ``Opportunity Act'' and inserting 
     ``Opportunity Reconciliation Act'' each place such term 
     appears.
       (f) Section 431(a)(6) of the Social Security Act (42 U.S.C. 
     629a(a)(6))) is amended--
       (1) by inserting ``, as in effect before August 22, 1986'' 
     after ``482(i)(5)''; and
       (2) by inserting ``, as so in effect'' after 
     ``482(i)(7)(A)''.
       (g) Sections 452(a)(7) and 466(c)(2)(A)(i) of the Social 
     Security Act (42 U.S.C. 652(a)(7) and 666(c)(2)(A)(i)) are 
     each amended by striking ``Social Security'' and inserting 
     ``social security''.
       (h) Section 454 of the Social Security Act (42 U.S.C. 654) 
     is amended--
       (1) by striking ``, or'' at the end of each of paragraphs 
     (6)(E)(i) and (19)(B)(i) and inserting ``; or'';
       (2) in paragraph (9), by striking the comma at the end of 
     each of subparagraphs (A), (B), (C) and inserting a 
     semicolon; and
       (3) by striking ``, and'' at the end of each of paragraphs 
     (19)(A) and (24)(A) and inserting ``; and''.
       (i) Section 454(24)(B) of the Social Security Act (42 
     U.S.C. 654(24)(B)) is amended by striking ``Opportunity Act'' 
     and inserting ``Opportunity Reconciliation Act''.
       (j) Section 344(b)(1)(A) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (110 Stat. 2236) 
     is amended to read as follows:
       ``(A) in paragraph (1), by striking subparagraph (B) and 
     inserting the following:
       `(B) equal to the percent specified in paragraph (3) of the 
     sums expended during such quarter that are attributable to 
     the planning, design, development, installation or 
     enhancement of an automatic data processing and information 
     retrieval system (including in such sums the full cost of the 
     hardware components of such system); and'; and''.
       (k) Section 457(a)(2)(B)(i)(I) of the Social Security Act 
     (42 U.S.C. 657(a)(2)(B)(i)(I)) is amended by striking ``Act 
     Reconciliation'' and inserting ``Reconciliation Act''.
       (l) Section 457 of the Social Security Act (42 U.S.C. 657) 
     is amended by striking ``Opportunity Act'' each place it 
     appears and inserting ``Opportunity Reconciliation Act''.
       (m) Section 466(a)(7) of the Social Security Act (42 U.S.C. 
     666(a)(7)) is amended by striking ``1681a(f))'' and inserting 
     ``1681a(f)))''.
       (n) Section 466(b)(6)(A) of the Social Security Act (42 
     U.S.C. 666(b)(6)(A)) is amended by striking ``state'' and 
     inserting ``State''.
       (o) Section 471(a)(8) of the Social Security Act (42 U.S.C. 
     671(a)(8)) is amended by striking ``(including activities 
     under part F)''.
       (p) Section 1137(a)(3) of the Social Security Act (42 
     U.S.C. 1320b-7(a)(3)) is amended by striking 
     ``453A(a)(2)(B)(iii))'' and inserting 
     ``453A(a)(2)(B)(ii)))''.
       (q) The amendments made by this section shall take effect 
     as if included in the enactment of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996.

  The CHAIRMAN. No amendment shall be in order except those printed in 
House Report 106-199. Each amendment may be offered only in the order 
printed in the Report, may be offered only by a Member designated in 
the Record, shall be considered read, debatable for the time specified 
in the report, equally divided and controlled by the proponent and an 
opponent, shall not be subject to amendment, and shall not be subject 
to a demand for division of the question.
  The Chairman of the Committee of the Whole may postpone a request for 
a recorded vote on any amendment and may reduce to a minimum of 5 
minutes the time for voting on any postponed question that immediately 
follows another vote, provided the time for voting on the first 
question shall be a minimum of 15 minutes.
  It is now in order to consider amendment No. 1 printed in House 
Report 106-199.


         Amendment No. 1 Offered by Mrs. Johnson of Connecticut

  Mrs. JOHNSON of Connecticut. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 1 offered by Mrs. Johnson of Connecticut:
       In section 1(b) of the bill, in the table of contents, 
     after the item relating to section 121, insert the following:

                Subtitle D--Adoption Incentive Payments

Sec. 131. Increased funding for adoption incentive payments.

       In section 1(b) of the bill, in the table of contents, 
     strike the item relating to subtitle B of title II and the 
     item relating to section 251, and insert the following:

     Subtitle B--Special Benefits For Certain World War II Veterans

Sec. 251. Establishment of program of special benefits for certain 
              World War II veterans.

       In section 1(b) of the bill, in the table of contents, 
     strike the item relating to section 301 and insert the 
     following:

Sec. 301. Narrowing of hold harmless provision for state share of 
              distribution of collected child support.

       In section 477(a)(1) of the Social Security Act, as 
     proposed to be added by section 101(b) of the bill, strike 
     ``design programs that''.
       In section 477(b)(3)(A) of the Social Security Act, as 
     proposed to be added by section 101(b) of the bill, strike 
     ``but'' and insert ``because they have attained 18 years of 
     age, and who''.
       In section 477(b)(3)(A) of the Social Security Act, as 
     proposed to be added by section 101(b) of the bill, strike 
     ``and have attained 18 years of age but not'' and insert 
     ``because they have attained 18 years of age, and who have 
     not attained''.
       In section 477(c)(1) of the Social Security Act, as 
     proposed to be added by section 101(b) of the bill, insert 
     ``, as adjusted in accordance with paragraph (2)'' before the 
     period.
       In section 477(c) of the Social Security Act, as proposed 
     to be added by section 101(b) of the bill, strike paragraph 
     (2) and insert the following:
       ``(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 amount payable to the State under this section for 
     fiscal year 1998 an additional amount equal to the 
     difference.''.
       ``(B) Ratable reduction of certain allotments.--In the case 
     of a State not described in subparagraph (A) 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) for the fiscal year as the 
     amount so alloted bears to the sum of the amounts allotted to 
     all States not so described.
       In section 477(c) of the Social Security Act, as proposed 
     to be added by section 101(b) of the bill, strike paragraph 
     (3).
       At the end of section 477(d) of the Social Security Act, as 
     proposed to be added by section 101(b) of the bill, add the 
     following:
       ``(3) 2-year availability of funds.--Payments made to a 
     State under this section for

[[Page 14399]]

     a fiscal year shall be expended by the State in the fiscal 
     year or in the succeeding fiscal year.''.
       At the end of title I of the bill, insert the following:

                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.''.
       In section 206 of the bill, redesignate subsection (c) as 
     subsection (d) and insert after subsection (b) the following:
       (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);''.
       In section 207 of the bill, redesignate subsection (b) as 
     subsection (c) and insert after subsection (a) the following:
       (b) Conforming Amendment.--Section 1902(a)(10) of the 
     Social Security Act (42 U.S.C. 1396a(a)(10)), as amended by 
     section 206(c) of this Act, is amended by striking ``section 
     1613(e)'' and inserting ``subsections (c) and (e) of section 
     1613''.
       Strike subtitle B of title II of the bill and insert the 
     following:

     Subtitle B--Special 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:

    ``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 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.

       ``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) of the Immigration and Nationality 
     Act and before the month in which the Commissioner of Social 
     Security is notified by the Attorney General that the 
     individual is lawfully admitted to the United States for 
     permanent residence;
       ``(2) during any part of which the individual is outside 
     the United States due to flight 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 which the individual 
     violates a condition of probation or parole imposed under 
     Federal or State law; or
       ``(4) during any part of which the individual is confined 
     in a jail, prison, or other penal institution or correctional 
     facility pursuant to a conviction of an offense.

     ``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.--

[[Page 14400]]

       ``(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 title XVI, 
     respectively.
       ``(c) Requirement for Centralized File.--The Commissioner 
     of Social Security shall establish and maintain a centralized 
     file, which shall be updated periodically and which shall be 
     in a form that renders it readily retrievable by each 
     servicing office of the Social Security Administration. The 
     file shall consist of--
       ``(1) a list of the names and social security account 
     numbers or employer identification numbers (if issued) 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 title XVI, 
     respectively; and
       ``(2) a list of the names and social security account 
     numbers or employer identification numbers (if issued) 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 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 qualified individual; 
     and
       ``(C) to review the evidence upon which the designation is 
     based and to submit additional evidence.
       ``(h) Accountability Monitoring.--
       ``(1) 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) Centralized file.--The Commissioner of Social 
     Security shall maintain a centralized file, which shall be 
     updated periodically and which shall be in a form that is 
     readily retrievable, 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).

[[Page 14401]]

       ``(4) The Commissioner of Social Security shall maintain a 
     list, 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 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.
       ``(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) 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.
       ``(c) 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.
       ``(d) 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 to 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 of Benefits.--Regulations prescribed by 
     the Commissioner of Social Security under subsection (a) may 
     provide for the temporary suspension 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 served during World War II--
       ``(A) in the active military, naval, or air service of the 
     United States during World War II, and who was discharged or 
     released therefrom under conditions other than dishonorable 
     after service of 90 days or more; or
       ``(B) 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,

[[Page 14402]]

     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.
       ``(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 2001 and 
     subsequent fiscal years 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 4th 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)(i)(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 subparagraph (A);
       (ii) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (iii) by inserting after subparagraph (A) the following:
       ``(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:
       ``(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 title, by striking ``social security'' and 
     inserting ``other''.
       (8) 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)''.
       (9) 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,''.
       Strike section 301 of the bill and insert the following:

     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 amounts collected which could be retained by the 
     State in the fiscal year (to the extent necessary to 
     reimburse the State for amounts paid to families as 
     assistance by the State) are less than the State share of the 
     amounts collected in fiscal year 1995 (determined in 
     accordance with section 457 as in effect on the day before 
     the date of the enactment of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996); and
       ``(2)(A)(i) the State has not retained any of the current 
     support so collected during the preceding fiscal year on 
     behalf of any family that is a recipient of assistance under 
     the State program funded under part A (except any such family 
     in a control group required by a waiver granted to the State 
     under section 1115); and
       ``(ii) at least the lesser of $150 or the total amount of 
     current support paid to such a family in any month is 
     disregarded in determining the amount or type of assistance 
     to be provided to the family for the month under the State 
     program funded under part A; or
       ``(B) the State has distributed to families not less than 
     \1/2\ of the child support arrearages collected pursuant to 
     section 464 during the preceding fiscal year, that accrued 
     after the families ceased to receive assistance from the 
     State (as defined in subsection (c)(1)),

     then the State share otherwise determined for the fiscal year 
     shall be increased by an amount equal to \1/2\ of the amount 
     (if any) by which the State share in fiscal year 1995 exceeds 
     the State share for the fiscal year (determined without 
     regard to this subsection).''.
       (b) Authority of State to Pass Through Portion of Child 
     Support Arrearages Collected Through Tax Intercept.--Section 
     457(a)(2)(B)(iv) of such Act (42 U.S.C. 657(a)(2)(B)(iv)) is 
     amended in the first sentence by inserting after the 2nd 
     sentence the following: ``After making such payment, the

[[Page 14403]]

     State may distrbute to the family not more than \1/2\ of the 
     remaining amount so retained.''.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall be effective with respect to calendar quarters 
     beginning on or after October 1, 1998.
       (d) Repealer.--Effective October 1, 2001, section 457 of 
     the Social Security Act (42 U.S.C. 657) is amended by 
     striking subsection (d).

  The CHAIRMAN. Pursuant to House Resolution 221, the gentlewoman from 
Connecticut (Mrs. Johnson) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from Connecticut (Mrs. Johnson).
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield myself such time 
as I may consume.
  Let me briefly outline the contents of the manager's amendment. Most 
of the provisions are highly technical and are included simply to 
clarify meaning. Four provisions, however, require a brief explanation.
  One of these changes our policy on redistributing funds not used by 
States. We change the policy so that States will have 2 years rather 
than 1 year to spend each year's appropriations. HHS informs us that 
with the 2 years to spend the money, there will be no need for 
redistribution of funds.
  The second provision of the manager's amendment authorizes additional 
payments to States for increasing their rate of adoptions. The amount 
of bonus money we appropriated in previous legislation was inadequate 
because States have done such a remarkable job of increasing the number 
of adoptions of children in foster care.
  A third amendment is added to ensure that recipients of supplemental 
security income who lose their eligibility because of assets they hold 
in trust will not automatically lose their Medicaid benefits.
  A fourth provision broadens our provision on Filipino veterans of 
World War II that the committee bill allowed to return to the 
Philippines and still retain their SSI benefits. The new provision 
provides this option to all World War II veterans.
  We think these provisions of the manager's amendment make a good bill 
even better, and I urge adoption of the amendment.
  Mr. Chairman, I reserve the balance of my time.
  Mr. CARDIN. Mr. Chairman, I rise to claim the time in opposition.
  Mr. Chairman, I rise in support of this amendment, and I yield myself 
such time as I may consume.
  I have already gone over the different provisions during the general 
debate that is in the manager's amendment. I want to compliment the 
gentlewoman from Connecticut (Mrs. Johnson) for putting together this 
manager's amendment to take care of some very technical points, to 
expand the provisions concerning the World War II veterans, to deal 
with some unintended consequences that deal with the hold harmless 
provision for pass-through to child support to the families.
  Mr. Chairman, I want to quickly discuss three of the improvements to 
the Foster Care Independence Act in the amendment being offered by Mrs. 
Johnson and myself.
  First, the amendment expands a provision that would allow U.S. World 
War II veterans to return to their homeland, including the Philippines, 
and still receive \3/4\ of their SSI benefit. This provision provides 
Members with a rare opportunity to vote for proposal that is supported 
by veterans and saves money.
  Second, the amendment would ensure that the bill's restrictions on 
asset transfers and trusts under SSI do not have unintended impacts on 
Medicaid coverage. More specifically, the amendment would clarify that 
individuals who are not receiving SSI do not lose Medicaid coverage 
because of changes in SSI eligibility rules, which are sometimes used 
to determine Medicaid eligibility.
  And third, the amendment would continue to provide half of the 
current child support hold harmless payments to States that pass-
through child support payments to families on and leaving welfare. The 
bill generally repeals the hold-harmless provision, which has created 
an unintended windfall for States, but the amendment provides this 
limited extension to help more States that are passing through child 
support to low-income families, rather than keeping it to recoup past 
welfare costs.
  I urge my colleagues to support this amendment and the underlying 
bill.
  Mr. Chairman, I yield back the balance of my time.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield myself such time 
as I may consume.
  Mr. Chairman, I submit for the Record some additional information in 
regard to this portion of the amendment that alters the hold-harmless 
provisions in the child support enforcement bill.
         House of Representatives, Committee on Ways and Means, 
           Subcommittee on Human Resources,
                                    Washington, DC, June 10, 1999.
     Hon. Tommy G. Thompson,
     Hon. Frank O'Bannon,
     Co-Lead Governors on Welfare, National Governors Association, 
         Washington, DC.
       Dear Governors Thompson & O'Bannon: Thanks for your letter 
     expressing your opposition to our policy of ending the child 
     support hold harmless provision. Bill Archer has asked me to 
     respond to the letter because I negotiated the hold harmless 
     provisions in 1995-96 and I now chair the Subcommittee with 
     jurisdiction over child support enforcement. Here is my 
     response to your arguments about why we should not end the 
     hold harmless provision.
       First, I think it is somewhat of a stretch to argue that 
     governors accepted the mandates on child support in exchange 
     for fixed child support funding. As someone who was directly 
     involved in the negotiations, I can tell you that to my 
     knowledge this point was never made by either side during the 
     negotiations. Rather, the hold harmless agreement was 
     developed because a specific provision of the Republican bill 
     required States to share collections on arrearages with 
     families after they left welfare. Our thinking was that 
     federal policy should give families more child support money 
     after they leave welfare and less while they remain on 
     welfare. After all, the point of welfare reform was to get 
     people off welfare. Thus, providing them with more child 
     support money after they left the rolls would help them stay 
     off welfare. In addition, ending the $50 passthrough provided 
     states with significant compensation for sharing more post-
     welfare collections with families. In fact, according to CBO 
     states saved in excess of $1.2 billion over 6 years (and lots 
     of administrative hassle) by our policy of ending the $50 
     passthrough.
       Despite this huge savings by states and the federal 
     government, some states felt they were still financially at 
     risk. So we agreed both to an arrangement in which the 
     arrearages collections would be roughly split between states 
     and families and to a provision requiring the federal 
     government to make up the difference if the collections 
     states could retain in any given year were less than retained 
     collections in 1995. These provisions were negotiated between 
     a small group of members of the Ways and Means and Financial 
     Committees and one state IV-D director. The provisions were 
     not part of the overall agreement between Congress and the 
     governors on the TANF welfare reform law.
       A broader issue raised in your letter is that the repeal of 
     the hold harmless provision comes at a time when state 
     collections in former welfare cases are declining because 
     there are fewer welfare cases. But your letter does not 
     mention that as welfare cases decline, states save 
     considerable funds in their TANF block grant. In fact, on 
     average across states, the 45 percent reduction in TANF 
     caseloads since 1994 means that states have a very 
     substantial surplus of TANF funds over which they have nearly 
     complete control. Recently, the Congressional Budget Office 
     estimated that by the end of 2003, States will have excess 
     funds of over $24 billion. To raise the problems caused in 
     child support financing because of the TANF caseload decline 
     without mentioning the substantial savings in the TANF block 
     grant is a one-sided presentation of state benefits.
       Another important consideration in this discussion is that 
     most states make a profit on their child support enforcement 
     program. The enclosed table shows that in 1996, the last year 
     for which we have complete data, 33 states made a profit on 
     their child support program and that the total profit to 
     states was a net of $407 million. While states were showing a 
     positive net cash flow, the federal government had a negative 
     cash flow of nearly $1.2 billion. The second enclosed table 
     shows that the federal government has had a negative cash 
     flow while states have enjoyed a positive cash flow every 
     year since the program began. There is no doubt that the 
     child support program is a good investment, but it is 
     difficult to understand why the federal government should 
     lose money on the program while states enjoy a profit.
       It may well be the case that the child support financing 
     arrangements that have been adequate for a quarter of a 
     century are now outdated, primarily because of the dramatic 
     changes in the TANF program. We are certainly open to 
     suggestions about new ways to efficiently and fairly fund 
     this vital federal-state program. But in the meantime, we 
     intend to more equitably share the financing burden between 
     the federal government and the states.

[[Page 14404]]

       Thanks for your thoughtful letter. I'm sorry that I am not 
     in closer agreement with your perspectives on these child 
     support financing issues. Nonetheless, in accord with the 
     recommendation in your letter, we have agreed to drop the 
     provision that would have ended federal 90 percent funding 
     for blood testing and other expenses of establishing 
     paternity.
           Sincerely,
                                                 Nancy L. Johnson,
                                                         Chairman.
       Enclosures.

                             TABLE 8-5.--FINANCING OF THE FEDERAL/STATE CHILD SUPPORT ENFORCEMENT PROGRAM, FISCAL YEAR 1996
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   State income
                                                                    ------------------------------------------      State                   Collections-
                               State                                     Federal     State share    Federal    administrative   State net     to-costs
                                                                     administrative       of       incentive    expenditures                    ratio
                                                                        payments     collections    payments       (costs)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama............................................................         31,161         5,737        3,548         46,314       (5,868)          3.41
Alaska.............................................................         11,517         8,085        2,973         17,439        5,136           3.31
Arizona............................................................         31,177         6,647        3,842         46,909       (5,244)          2.41
Arkansas...........................................................         19,048         4,163        3,195         28,669       (2,263)          2.77
California.........................................................        293,731       222,548       66,752        437,991      145,040           2.36
Colorado...........................................................         25,399        15,001        5,590         38,361        7,628           2.82
Connecticut........................................................         29,035        12,645        7,086         43,027        5,740           2.91
Delaware...........................................................          9,941         3,393        1,112         14,168          279           2.50
District of Columbia...............................................          7,731         2,526        1,103         11,696         (336)          2.38
Florida............................................................         86,999        30,216       13,501        131,363         (647)          3.13
Georgia............................................................         45,496        16,780       15,110         68,505        8,881           3.92
Guam...............................................................          1,744           289          281          2,624         (310)          2.57
Hawaii.............................................................         16,113         5,396        1,758         23,907         (640)          2.18
Idaho..............................................................         12,535         2,942        1,961         18,928       (1,490)          2.32
Illinois...........................................................         68,905        28,513       10,691        103,803        4,304           2.41
Indiana............................................................         21,416        14,186        7,658         30,091       13,170           6.54
Iowa...............................................................         19,209        12,911        6,319         29,048        9,391           5.23
Kansas.............................................................         12,296        10,704        5,265         18,489        9,776           5.82
Kentucky...........................................................         27,927         9,646        5,514         42,210          877           3.43
Louisiana..........................................................         23,058         6,266        4,270         34,495         (900)          4.16
Maine..............................................................         10,224         9,459        4,907         15,435        9,155           4.05
Maryland...........................................................         43,688        19,120        6,540         66,017        3,332           4.36
Massachusetts......................................................         40,626        30,494        9,828         61,286       19,662           4.05
Michigan...........................................................         94,572        60,098       22,323        143,132       33,860           6.63
Minnesota..........................................................         48,457        25,680        9,017         73,195        9,960           4.36
Mississippi........................................................          9,522         3,959        3,553         29,463       (2,430)          2.87
Missouri...........................................................         52,173        22,161        9,635         74,419        9,549           3.75
Montana............................................................          8,038         2,122        1,326         12,120         (634)          2.42
Nebraska...........................................................         20,007         3,964        1,750         30,179       (4,457)          3.16
Nevada.............................................................         14,782         3,737        2,279         22,346       (1,548)          2.53
New Hampshire......................................................          9,377         4,518        1,539         14,091        1,343           3.42
New Jersey.........................................................         73,147        39,238       12,698        110,735       14,348           4.52
New Mexico.........................................................         15,914         1,344          975         21,129       (2,896)          1.43
New York...........................................................        115,020        79,891       28,461        174,183       49,188           4.03
North Carolina.....................................................         59,282        20,653       10,732         89,147        1,521           2.94
North Dakota.......................................................          4,352         1,662          990          6,563          441           4.34
Ohio...............................................................        106,594        41,141       17,008        161,618        3,125           6.07
Oklahoma...........................................................         16,968         6,674        3,666         24,040        3,269           3.06
Oregon.............................................................         21,129        10,544        5,480         31,874        5,278           5.60
Pennsylvania.......................................................         82,784        49,576       18,619        123,808       27,171           7.74
Puerto Rico........................................................         19,504           291          372         28,569       (8,401)          4.44
Rhode Island.......................................................          5,451         6,839        3,262          8,251        7,300           4.31
South Carolina.....................................................         23,296         6,797        4,154         35,100         (853)          3.37
South Dakota.......................................................          3,173         1,936        1,399          4,770        1,738           5.87
Tennessee..........................................................         26,165        10,195        5,328         39,342        2,347           4.06
Texas..............................................................         96,614        32,915       15,873        144,984          418           3.71
Utah...............................................................         19,497         5,136        3,217         29,170       (1,321)          2.66
Vermont............................................................          4,467         2,602        1,346          6,701        1,714           3.79
Virgin Island......................................................          1,597            94           67          2,418         (660)          2.25
Virginia...........................................................         40,844        18,475        5,988         61,507        3,800           4.18
Washington.........................................................         76,319        49,348       16,449        115,322       26,795           3.53
West Virginia......................................................         15,578         3,230        2,065         23,358       (2,484)          3.61
Wisconsin..........................................................         50,394        19,115       10,659         74,058        6,110           5.94
Wyoming............................................................          5,575         1,835          647          8,455         (398)          2.96
--------------------------------------------------------------------------------------------------------------------------------------------------------
Nationwide.........................................................      2,039,569     1,013,437      409,681      3,054,821      407,866           3.93
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note.--The ``State net'' column in this table is not the same as the comparable figure presented in annual reports of the Office of Child Support
  Enforcement (see for example, 1996, p. 78 and table 8-23 below) because estimated Federal incentive payments are used in the annual reports while
  final Federal incentive payments were used in this table.
 
Source: Office of Child Support Enforcement, U.S. Department of Health and Human Services.


TABLE 8-6.--FEDERAL AND STATE SHARE OF CHILD SUPPORT ``SAVINGS,'' FISCAL
                              YEARS 1979-96
                        [In millions of dollars]
------------------------------------------------------------------------
                                     Federal
                                     share of   State share
           Fiscal year                child       of child    Net public
                                     support      support    savings \1\
                                   savings \1\    savings
------------------------------------------------------------------------
1979.............................          -43          244          201
1980.............................         -103          230          127
1981.............................         -128          261          133
1982.............................         -148          307          159
1983.............................         -138          312          174
1984.............................         -105          366          260
1985.............................         -231          317           86
1986.............................         -264          274            9
1987.............................         -337          342            5
1988.............................         -355          381           26
1989.............................         -480          403          -77
1990.............................         -528          338         -190
1991.............................         -586          385         -201
1992.............................         -605          434         -170
1993.............................         -740          462         -278
1994.............................         -978          482         -496
1995.............................       -1,274          421         -853
1996 (preliminary)...............       -1,152          407         -745
------------------------------------------------------------------------
\1\ Negative ``savings'' are costs.
 
Source: Office of Child Support Enforcement, Annual Reports to Congress,
  1996 and various years.

                                    U.S. House of Representatives,


                                  Committee on Ways and Means,

                                    Washington, DC, June 17, 1999.
     Hon. Thomas J. Bliley, Jr.,
     Chairman, House Committee on Commerce, Washington, DC.
       Dear Chairman Bliley: I write to confirm our mutual 
     understanding with respect to further consideration of H.R. 
     1802, the ``Foster Care Independence Act of 1999.'' H.R. 
     1802, as introduced, was referred to the Committee on Ways 
     and Means, and in addition, to the Committee on Commerce.
       Specifically, Subtitle C of Title I would change the 
     Medicaid statute to permit States to provide Medicaid 
     coverage to those 18, 19, and 20 year olds who have left 
     foster care. States would also be permitted to use means 
     testing to provide Medicaid to former foster care youths if 
     their income and resources are below certain specified 
     levels.
       I understand that, following advance consultations, you are 
     in agreement with this provision. I further understand that, 
     in order to expedite consideration of this legislation, the 
     Committee on Commerce will not be marking up the bill. The 
     Commerce Committee will take this action based on the 
     understanding that it will be treated without prejudice as to 
     its jurisdictional prerogatives on this measure or any other 
     similar legislation. Further, I have no objection to your 
     request for conferees with respect to matters in the Commerce 
     Committee's jurisdiction if a House-Senate conference is 
     convened on this or similar legislation.
       Finally, I will include in the Record a copy of our 
     exchange of letters on this matter during floor 
     consideration. Thank you for your assistance and cooperation 
     in this matter.
       With best personal regards,
           Sincerely,
                                                      Bill Archer,
                                                         Chairman.

[[Page 14405]]

     
                                  ____
                                    U.S. House of Representatives,


                                        Committee on Commerce,

                                    Washington, DC, June 17, 1999.
     Hon. Bill Archer,
     Chairman, Committee on Ways and Means, Washington, DC.
       Dear Chairman Archer: Thank you for your recent letter 
     regarding H.R. 1802, the Foster Care Independence Act of 
     1999. As you noted in your letter, the Committee on Commerce 
     is an additional committee of jurisdiction for H.R. 1802.
       The Committee on Commerce will not exercise its right to 
     act on the legislation and the Committee has no objections to 
     the inclusion of those provisions within its jurisdiction. By 
     agreeing to waive its consideration of the bill, however, the 
     Commerce Committee does not waive its jurisdiction over H.R. 
     1802. In addition, the Commerce Committee reserves its 
     authority to seek conferees on any provisions of the bill 
     that are within its jurisdiction during any House-Senate 
     conference that may be convened on this legislation. I 
     appreciate your commitment to support a request by the 
     Commerce Committee for conferees on H.R. 1802 or similar 
     legislation.
       I ask that you include a copy of your letter and this 
     response in the Record during consideration of the bill on 
     the House floor. Thank you for your consideration and 
     assistance.
       I remain,
           Sincerely,
                                                       Tom Bliley,
                                                         Chairman.

  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentlewoman from Connecticut (Mrs. Johnson).
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider Amendment No. 2 printed 
in House report 106-199.


         Amendment No. 2 Offered by Mr. Thompson of California

  Mr. THOMPSON of California. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 2 offered by Mr. Thompson of California:
       In section 1(b) of the bill, in the table of contents, 
     after the item relating to section 111, insert the following:

Sec. 112. Preparation of foster parents to provide for the needs of 
              children in State care.

       At the end of subtitle B of title I, insert the following:

     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.

  The CHAIRMAN. Pursuant to House Resolution 221, the gentleman from 
California (Mr. Thompson) and a Member opposed each will control 10 
minutes.
  The Chair recognizes the gentleman from California (Mr. Thompson).
  Mr. THOMPSON of California. Mr. Chairman, I yield myself as much time 
as I may consume.
  First, I would like to commend the Committee on Ways and Means for 
bringing this measure to the floor. I would like to thank the 
gentlewoman from Connecticut (Mrs. Johnson) and the gentleman from 
Maryland (Mr. Cardin) for their good work on this issue.
  Improving foster care is an important goal and providing transition 
assistance, as this bill does, is particularly important. Mr. Chairman, 
there is another way that we can improve foster care and that is to 
improve the training for prospective foster parents and to provide 
continuing training and education after the child is in that foster 
care parent's home.
  States have a variety of training programs, but there is no standard. 
They vary in the number of hours in which the training occurs and in 
the curriculum as well. Particularly interesting is the fact that the 
training of foster care parents is not expressly required in the 
States' plan submitted in order for the States to receive Federal 
funding to support their foster care programs. My amendment addresses 
and rectifies this situation.
  Working with a range of child advocacy groups, as well as the 
majority and the minority staff, this amendment before the committee 
focuses renewed attention on the need to improve foster care training 
and preparation. Such training is crucial.
  According to many observers, one of the largest crises facing the 
child welfare system is the inability to recruit qualified foster care 
parents as well as the ability of the system to retain those parents 
once they are found. In addition, in too many cases, foster children 
are not fully integrated into the their foster families. They are not 
recognized as individuals in the same way and in the same manner 
emotionally, educationally and economic needs as birth children, and as 
such, are treated as temporary tenants without the opportunity to 
develop and grow into self-sufficient young adults. To the extent 
foster parents' ill-preparedness is the cause, it can be overcome by 
improving training, counseling, and aid.
  To encourage the improvement of both preplacement training and 
training after a child's placement, this amendment requires States to 
expressly include in their State plan a certification that prospective 
parents are adequately prepared with the appropriate knowledge and the 
appropriate skills to provide for the needs of those children.
  In addition, the amendment requires States to certify that such 
preparation will be continued as necessary after the placement of the 
youngster. Improving the training of prospective foster parents will 
encourage more individuals and couples to accept children in the 
State's care. More parents will be better prepared to recognize and 
respond to the problems associated with these children. By continuing 
and improving the training of parents after the placement is made, 
fewer parents will decline future foster care placements. More 
important, children in foster care will be better cared for and better 
assisted in their transition to independent adulthood.
  Mr. Chairman, I urge the support of this amendment, and I again would 
like to thank the gentlewoman from Connecticut and the gentleman from 
Maryland and their staffs for their help in crafting this amendment.
  Mr. Chairman, I reserve the balance of my time.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I rise to claim the time 
in opposition to the amendment.
  Mr. Chairman, I yield myself such time as I may consume.
  I rise not to oppose the amendment, but to point out that States do 
have an open-ended entitlement to Federal money for training, one of 
the real strengths of the underlying law. The match is only 25 percent 
in State money. But I accept the gentleman's amendment, because it does 
clarify and strengthen not only the underlying law, but the intent of 
this legislation.
  Mr. Chairman, I yield back the balance of my time.
  Mr. THOMPSON of California. Mr. Chairman, I yield 1 minute to the 
gentleman from Maryland (Mr. Cardin).
  Mr. CARDIN. Mr. Chairman, I want to congratulate the gentleman from 
California (Mr. Thompson) for this amendment. I think it is a very 
important amendment, and it improves the bill that is before us. It 
makes it clear that foster parents need to be prepared adequately with 
appropriate knowledge and skills to provide for the needs of the child.
  We are trying to give additional flexibility to States to help 
children aging out of foster care and into independent living, but part 
of that depends upon having foster parents that are adequately trained 
and have the right skills, and I think this amendment adds to that. I 
want to congratulate the gentleman, and we certainly accept it on our 
side.

[[Page 14406]]


  Mr. THOMPSON of California. Mr. Chairman, I yield 1 minute to the 
gentlewoman from California (Ms. Waters).
  Ms. WATERS. Mr. Chairman, I rise in support of this amendment. I 
think it will make it an even stronger bill. I am so pleased about what 
is happening on this particular legislation.
  The Foster Care Independence Act of 1999 is precisely what we need to 
deal with foster care problems in our country. I am particularly 
excited about the idea that we are finally going to do something to 
help transition 18-year-olds who come out of the foster care system and 
help them to become productive adults and not just dump them out on the 
streets.
  So again, I commend my colleague from California (Mr. Thompson) and 
say that I believe that this is the way to go. This is the thing to do. 
I commend all of those who have worked on support of this amendment. I 
urge an ``aye'' vote on the bill.
  Mr. THOMPSON of California. Mr. Chairman, I yield back the balance of 
my time.
  The CHAIRMAN. All time has expired.
  The question is on the amendment offered by the gentleman from 
California (Mr. Thompson).
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 3 printed 
in House Report 106-199.


                  Amendment No. 3 Offered by Mr. Buyer

  Mr. BUYER. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 3 offered by Mr. Buyer:
       In section 1(b), in the table of contents, after the item 
     relating to section 251, insert the following:

                           Subtitle C--Study

Sec. 261. Study of denial of SSI benefits for family farmers.

       At the end of title II, insert the following:

                           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).

  The CHAIRMAN. Pursuant to House Resolution 221, the gentleman from 
Indiana (Mr. Buyer) and a Member opposed each will control 10 minutes.
  The Chair recognizes the gentleman from Indiana (Mr. Buyer).
  Mr. BUYER. Mr. Chairman, I yield myself such time as I may consume.
  I congratulate the ranking member from Maryland for his work on the 
bill and the gentlewoman from Connecticut (Mrs. Johnson). This is 
Congress at its best. This is bipartisanship at its best. I have a 
compliment that comes from the leadership out of the subcommittee out 
of the Committee on Ways and Means, and both members are entitled to 
the compliment, from all members.
  The inspiration for the amendment I have here before everyone comes 
from a constituent of mine named Tim Tanner. His son, Danny, is 
severely disabled and were if not for the loving sacrifice of his 
father, Danny would have been institutionalized.
  Mr. Tanner is a single dad earning his living as a dairy farmer. Mr. 
Tanner repeatedly applied for the SSI benefits for Danny, and he was 
consistently denied, even though he would always go for the appeals. 
Although Danny qualified medically, and based on his father's income, 
the benefits were denied because of his father's resources, which were, 
at least on paper were too great to qualify. He was a minority 
shareholder of a sub S corporation.
  I visited with Mr. Tanner, and I have also met Danny. Let me share 
Mr. Tanner's view of how the current law had been applied to him. Danny 
now is 18 and qualifies for SSI as an adult in his own right. But at a 
time when he needed the money the most, he did not qualify, but would 
have qualified had the father institutionalized him. But since the 
father chose to keep Danny at home and sacrificed everything for the 
son who has a mental capacity of about a 3-year-old, he was penalized. 
I think that is antifamily, and we should be doing everything we can to 
help build the family unit.
  Mr. Tanner wrote me and he said, ``Social Security is wrong to deny 
my son benefits. But if they were right, then the people in Washington 
should hang their heads in shame. Mighty people in lofty positions of 
government deny the most helpless of all: the handicapped children. It 
is mean. It is cruel to deny my son, based on my attempt to be a 
father. It is a dastardly deed. Yes, Congress should be ashamed.''
  Mr. Chairman, I have no interest in creating loopholes for welfare 
benefits, but here is a situation where a needy, handicapped child 
could not have received the assistance of SSI because of a father 
choosing the harder way and the more loving option of care at home and 
not to institutionalize his son. But because his assets were tied to 
this dairy farm, his means and his livelihood, the son was, I believe, 
discriminated against.
  I would just like to know if this is a rare case or if there are 
other cases out there. My amendment would require the Social Security 
administration to do a study on the SSI benefit of denials for family 
farmers who choose to care for disabled dependents in the home rather 
than sending them off to an institution. I do not think it is a lot to 
ask the Social Security administration to give Congress some data on 
the application of the law.

                              {time}  1115

  I am grateful to the gentlewoman from Connecticut (Mrs. Johnson) for 
her counsel on this amendment and appreciate her hard work in bringing 
this bill to the floor, along with the gentleman from Maryland (Mr. 
Cardin).
  Mr. Chairman, I urge the adoption of the amendment, and I reserve the 
balance of my time.
  Mr. CARDIN. Mr. Chairman, I ask unanimous consent to claim the time 
in opposition.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Maryland?
  There was no objection.
  Mr. CARDIN. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, let me point out that I want to compliment the 
gentleman for his amendment, and for bringing to our attention a real 
problem, and dealing with it in a way that I think we can get the 
answers.
  I certainly support it.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, will the gentleman yield?
  Mr. CARDIN. I yield to the gentlewoman from Connecticut.
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I thank the gentleman for 
yielding to me.
  I, too, look forward to the report. It is the kind of problem that 
for many years passed us by. We must take the opportunity with this 
family to find a way to help. We will give that report every 
consideration.
  Mr. CARDIN. Mr. Chairman, I yield back the balance of my time.
  Mr. BUYER. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Indiana (Mr. Buyer).
  The amendment was agreed to.
  The CHAIRMAN. The question is on the committee amendment in the 
nature of a substitute, as amended.
  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The CHAIRMAN. Accordingly, under the rule, the Committee rises.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Kolbe) having assumed the chair, Mr. LaHood, Chairman of the Committee

[[Page 14407]]

of the Whole House on the State of the Union, reported that that 
Committee, having had under consideration the bill (H.R. 1802) to amend 
part E of title IV of the Social Security Act to provide States with 
more funding and greater flexibility in carrying out programs designed 
to help children make the transition from foster care to self-
sufficiency, and for other purposes, pursuant to House Resolution 221, 
he reported the bill back to the House with an amendment adopted by the 
Committee of the Whole.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  Is a separate vote demanded on any amendment to the committee 
amendment in the nature of a substitute adopted by the Committee of the 
Whole? If not, the question is on the amendment.
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mrs. JOHNSON of Connecticut. Mr. Speaker, I object to the vote on the 
ground that a quorum is not present and make the point of order that a 
quorum is not present.
  The SPEAKER pro tempore. Evidently a quorum is not present.
  The Sergeant at Arms will notify absent Members.
  The vote was taken by electronic device, and there were--yeas 380, 
nays 6, not voting 48, as follows:

                             [Roll No. 256]

                               YEAS--380

     Abercrombie
     Ackerman
     Aderholt
     Allen
     Andrews
     Archer
     Armey
     Bachus
     Baird
     Baker
     Baldacci
     Baldwin
     Ballenger
     Barcia
     Barr
     Barrett (NE)
     Barrett (WI)
     Bartlett
     Barton
     Bass
     Bateman
     Becerra
     Bentsen
     Bereuter
     Berkley
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop
     Blagojevich
     Bliley
     Blumenauer
     Blunt
     Boehner
     Bonilla
     Bonior
     Bono
     Borski
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brady (TX)
     Brown (FL)
     Brown (OH)
     Bryant
     Burr
     Burton
     Buyer
     Calvert
     Camp
     Campbell
     Canady
     Capps
     Cardin
     Carson
     Castle
     Chabot
     Chambliss
     Clayton
     Clement
     Clyburn
     Coble
     Collins
     Combest
     Condit
     Cook
     Cooksey
     Cox
     Coyne
     Cramer
     Crane
     Crowley
     Cubin
     Cummings
     Davis (FL)
     Davis (IL)
     Davis (VA)
     Deal
     DeGette
     DeLauro
     DeLay
     DeMint
     Deutsch
     Diaz-Balart
     Dickey
     Dicks
     Dingell
     Dixon
     Doggett
     Dooley
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Emerson
     English
     Eshoo
     Etheridge
     Evans
     Ewing
     Farr
     Fattah
     Filner
     Foley
     Ford
     Fossella
     Fowler
     Frank (MA)
     Franks (NJ)
     Frelinghuysen
     Frost
     Ganske
     Gejdenson
     Gekas
     Gephardt
     Gibbons
     Gillmor
     Gilman
     Gonzalez
     Goode
     Goodlatte
     Goodling
     Gordon
     Goss
     Graham
     Green (TX)
     Green (WI)
     Greenwood
     Gutknecht
     Hall (OH)
     Hansen
     Hastings (FL)
     Hastings (WA)
     Hayes
     Hayworth
     Herger
     Hill (IN)
     Hill (MT)
     Hilleary
     Hilliard
     Hinchey
     Hinojosa
     Hoeffel
     Hoekstra
     Holden
     Holt
     Hooley
     Horn
     Houghton
     Hoyer
     Hunter
     Hutchinson
     Hyde
     Inslee
     Isakson
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Jenkins
     John
     Johnson (CT)
     Johnson, E.B.
     Johnson, Sam
     Jones (NC)
     Jones (OH)
     Kanjorski
     Kaptur
     Kelly
     Kennedy
     Kildee
     Kilpatrick
     Kind (WI)
     King (NY)
     Kingston
     Kleczka
     Klink
     Knollenberg
     Kolbe
     Kucinich
     Kuykendall
     LaFalce
     LaHood
     Lampson
     Lantos
     Largent
     Larson
     Latham
     LaTourette
     Lazio
     Leach
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     LoBiondo
     Lofgren
     Lucas (KY)
     Lucas (OK)
     Luther
     Maloney (CT)
     Maloney (NY)
     Manzullo
     Markey
     Martinez
     Mascara
     Matsui
     McCarthy (MO)
     McCollum
     McCrery
     McDermott
     McGovern
     McHugh
     McIntyre
     McKinney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Metcalf
     Mica
     Millender-McDonald
     Miller (FL)
     Miller, George
     Minge
     Moakley
     Moore
     Moran (KS)
     Moran (VA)
     Morella
     Murtha
     Myrick
     Nadler
     Napolitano
     Neal
     Nethercutt
     Ney
     Northup
     Norwood
     Nussle
     Oberstar
     Ortiz
     Ose
     Owens
     Oxley
     Pallone
     Pascrell
     Pastor
     Payne
     Pease
     Pelosi
     Peterson (MN)
     Peterson (PA)
     Petri
     Phelps
     Pickering
     Pickett
     Pitts
     Pombo
     Pomeroy
     Porter
     Portman
     Price (NC)
     Pryce (OH)
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Reyes
     Reynolds
     Riley
     Rivers
     Rodriguez
     Roemer
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Rothman
     Roukema
     Roybal-Allard
     Royce
     Rush
     Ryan (WI)
     Ryun (KS)
     Sabo
     Salmon
     Sanchez
     Sanders
     Sandlin
     Sawyer
     Saxton
     Schaffer
     Schakowsky
     Scott
     Sensenbrenner
     Serrano
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Sherwood
     Shimkus
     Shows
     Shuster
     Simpson
     Sisisky
     Skeen
     Skelton
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Snyder
     Souder
     Spence
     Spratt
     Stabenow
     Stark
     Stearns
     Stenholm
     Strickland
     Stump
     Stupak
     Sununu
     Sweeney
     Talent
     Tancredo
     Tanner
     Tauscher
     Terry
     Thomas
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Thune
     Thurman
     Tiahrt
     Tierney
     Toomey
     Traficant
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Velazquez
     Vento
     Visclosky
     Vitter
     Walden
     Walsh
     Wamp
     Waters
     Watkins
     Watt (NC)
     Watts (OK)
     Waxman
     Weldon (FL)
     Weldon (PA)
     Weller
     Wexler
     Weygand
     Whitfield
     Wicker
     Wilson
     Wise
     Wolf
     Woolsey
     Wu
     Wynn
     Young (AK)
     Young (FL)

                                NAYS--6

     Cannon
     Chenoweth
     Coburn
     Hefley
     Hostettler
     Paul

                             NOT VOTING--48

     Berman
     Boehlert
     Brown (CA)
     Callahan
     Capuano
     Clay
     Conyers
     Costello
     Cunningham
     Danner
     DeFazio
     Delahunt
     Engel
     Everett
     Fletcher
     Forbes
     Gallegly
     Gilchrest
     Granger
     Gutierrez
     Hall (TX)
     Hobson
     Hulshof
     Jefferson
     Kasich
     Lipinski
     Lowey
     McCarthy (NY)
     McInnis
     McIntosh
     McKeon
     Menendez
     Miller, Gary
     Mink
     Mollohan
     Obey
     Olver
     Packard
     Rogan
     Sanford
     Scarborough
     Slaughter
     Smith (WA)
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Towns
     Weiner

                              {time}  1139

  Mr. DINGELL changed his vote from ``nay'' to ``yea.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated for:
  Mr. CAPUANO. Mr. Speaker, I was unavoidably detained on the morning 
of June 25, 1999 and was therefore unable to cast a vote on rollcall 
No. 256. Had I been present, I would have voted ``yea'' on rollcall No. 
256.
  Mr. PACKARD. Mr. Speaker, I was unavoidably detained for rollcall 
256, which was final passage of H.R. 1802, the Foster Care Independence 
Act of 1999. Had I been present, I would have voted ``yea.''

                          ____________________