[Congressional Record (Bound Edition), Volume 145 (1999), Part 21]
[Senate]
[Pages 31126-31136]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 31126]]

                  FOSTER CARE INDEPENDENCE ACT OF 1999

                                 ______
                                 

                COLLINS (AND OTHERS) AMENDMENT NO. 2797

  Ms. COLLINS (for herself, Mr. Roth, Mr. L. Chafee, and Mr. Reed) 
proposed an amendment to 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; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.

              TITLE I--IMPROVED INDEPENDENT LIVING PROGRAM

            Subtitle A--Improved Independent Living Program

Sec. 101. Improved independent living program.

               Subtitle B--Related Foster Care Provision

Sec. 111. Increase in amount of assets allowable for children in foster 
              care.
Sec. 112. Preparation of foster parents to provide for the needs of 
              children in State care.

                    Subtitle C--Medicaid Amendments

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

                Subtitle D--Adoption Incentive Payments

Sec. 131. Increased funding for adoption incentive payments.

                     TITLE II--SSI FRAUD PREVENTION

          Subtitle A--Fraud Prevention and Related Provisions

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

         Subtitle B--Benefits For Certain World War II Veterans

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

                           Subtitle C--Study

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

                        TITLE III--CHILD SUPPORT

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

                    TITLE IV--TECHNICAL CORRECTIONS

Sec. 401. Technical corrections relating to amendments made by the 
              Personal Responsibility and Work Opportunity 
              Reconciliation Act of 1996.
              TITLE I--IMPROVED INDEPENDENT LIVING PROGRAM
            Subtitle A--Improved Independent Living Program

     SEC. 101. IMPROVED INDEPENDENT LIVING PROGRAM.

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

     ``SEC. 477. JOHN H. CHAFEE FOSTER CARE INDEPENDENCE PROGRAM.

       ``(a) Purpose.--The purpose of this section is to provide 
     States with flexible funding that will enable programs to be 
     designed and conducted--
       ``(1) to identify children who are likely to remain in 
     foster care until 18 years of age and to help these children 
     make the transition to self-sufficiency by providing services 
     such as assistance in obtaining a high school diploma, career 
     exploration, vocational training, job placement and 
     retention, training in daily living skills, training in 
     budgeting and financial management skills, substance abuse 
     prevention, and preventive health activities (including 
     smoking avoidance, nutrition education, and pregnancy 
     prevention);
       ``(2) to help children who are likely to remain in foster 
     care until 18 years of age receive the education, training, 
     and services necessary to obtain employment;
       ``(3) to help children who are likely to remain in foster 
     care until 18 years of age prepare for and enter 
     postsecondary training and education institutions;
       ``(4) to provide personal and emotional support to children 
     aging out of foster care, through mentors and the promotion 
     of interactions with dedicated adults; and
       ``(5) to provide financial, housing, counseling, 
     employment, education, and other appropriate support and 
     services to former foster care recipients between 18 and 21 
     years of age to complement their own efforts to achieve self-
     sufficiency and to assure that program participants recognize 
     and accept their personal responsibility for preparing for 
     and then making the transition from adolescence to adulthood.
       ``(b) Applications.--
       ``(1) In general.--A State may apply for funds from its 
     allotment under subsection (c) for a period of five 
     consecutive fiscal years by submitting to the Secretary, in 
     writing, a plan that meets the requirements of paragraph (2) 
     and the certifications required by paragraph (3) with respect 
     to the plan.
       ``(2) State plan.--A plan meets the requirements of this 
     paragraph if the plan specifies which State agency or 
     agencies will administer, supervise, or oversee the programs 
     carried out under the plan, and describes how the State 
     intends to do the following:
       ``(A) Design and deliver programs to achieve the purposes 
     of this section.
       ``(B) Ensure that all political subdivisions in the State 
     are served by the program, though not necessarily in a 
     uniform manner.
       ``(C) Ensure that the programs serve children of various 
     ages and at various stages of achieving independence.
       ``(D) Involve the public and private sectors in helping 
     adolescents in foster care achieve independence.
       ``(E) Use objective criteria for determining eligibility 
     for benefits and services under the programs, and for 
     ensuring fair and equitable treatment of benefit recipients.
       ``(F) Cooperate in national evaluations of the effects of 
     the programs in achieving the purposes of this section.
       ``(3) Certifications.--The certifications required by this 
     paragraph with respect to a plan are the following:
       ``(A) A certification by the chief executive officer of the 
     State that the State will provide assistance and services to 
     children who have left foster care because they have attained 
     18 years of age, and who have not attained 21 years of age.
       ``(B) A certification by the chief executive officer of the 
     State that not more than 30 percent of the amounts paid to 
     the State from its allotment under subsection (c) for a 
     fiscal year will be expended for room or board for children 
     who have left foster care because they have attained 18 years 
     of age, and who have not attained 21 years of age.

[[Page 31127]]

       ``(C) A certification by the chief executive officer of the 
     State that none of the amounts paid to the State from its 
     allotment under subsection (c) will be expended for room or 
     board for any child who has not attained 18 years of age.
       ``(D) A certification by the chief executive officer of the 
     State that the State will use training funds provided under 
     the program of Federal payments for foster care and adoption 
     assistance to provide training to help foster parents, 
     adoptive parents, workers in group homes, and case managers 
     understand and address the issues confronting adolescents 
     preparing for independent living, and will, to the extent 
     possible, coordinate such training with the independent 
     living program conducted for adolescents.
       ``(E) A certification by the chief executive officer of the 
     State that the State has consulted widely with public and 
     private organizations in developing the plan and that the 
     State has given all interested members of the public at least 
     30 days to submit comments on the plan.
       ``(F) A certification by the chief executive officer of the 
     State that the State will make every effort to coordinate the 
     State programs receiving funds provided from an allotment 
     made to the State under subsection (c) with other Federal and 
     State programs for youth (especially transitional living 
     youth projects funded under part B of title III of the 
     Juvenile Justice and Delinquency Prevention Act of 1974), 
     abstinence education programs, local housing programs, 
     programs for disabled youth (especially sheltered workshops), 
     and school-to-work programs offered by high schools or local 
     workforce agencies.
       ``(G) A certification by the chief executive officer of the 
     State that each Indian tribe in the State has been consulted 
     about the programs to be carried out under the plan; that 
     there have been efforts to coordinate the programs with such 
     tribes; and that benefits and services under the programs 
     will be made available to Indian children in the State on the 
     same basis as to other children in the State.
       ``(H) A certification by the chief executive officer of the 
     State that the State will ensure that adolescents 
     participating in the program under this section participate 
     directly in designing their own program activities that 
     prepare them for independent living and that the adolescents 
     accept personal responsibility for living up to their part of 
     the program.
       ``(I) A certification by the chief executive officer of the 
     State that the State has established and will enforce 
     standards and procedures to prevent fraud and abuse in the 
     programs carried out under the plan.
       ``(4) Approval.--The Secretary shall approve an application 
     submitted by a State pursuant to paragraph (1) for a period 
     if--
       ``(A) the application is submitted on or before June 30 of 
     the calendar year in which such period begins; and
       ``(B) the Secretary finds that the application contains the 
     material required by paragraph (1).
       ``(5) Authority to implement certain amendments; 
     notification.--A State with an application approved under 
     paragraph (4) may implement any amendment to the plan 
     contained in the application if the application, 
     incorporating the amendment, would be approvable under 
     paragraph (4). Within 30 days after a State implements any 
     such amendment, the State shall notify the Secretary of the 
     amendment.
       ``(6) Availability.--The State shall make available to the 
     public any application submitted by the State pursuant to 
     paragraph (1), and a brief summary of the plan contained in 
     the application.
       ``(c) Allotments to States.--
       ``(1) In general.--From the amount specified in subsection 
     (h) that remains after applying subsection (g)(2) for a 
     fiscal year, the Secretary shall allot to each State with an 
     application approved under subsection (b) for the fiscal year 
     the amount which bears the same ratio to such remaining 
     amount as the number of children in foster care under a 
     program of the State in the most recent fiscal year for which 
     such information is available bears to the total number of 
     children in foster care in all States for such most recent 
     fiscal year, as adjusted in accordance with paragraph (2).
       ``(2) Hold harmless provision.--
       ``(A) In general.--The Secretary shall allot to each State 
     whose allotment for a fiscal year under paragraph (1) is less 
     than the greater of $500,000 or the amount payable to the 
     State under this section for fiscal year 1998, an additional 
     amount equal to the difference between such allotment and 
     such greater amount.
       ``(B) Ratable reduction of certain allotments.--In the case 
     of a State not described in subparagraph (A) of this 
     paragraph for a fiscal year, the Secretary shall reduce the 
     amount allotted to the State for the fiscal year under 
     paragraph (1) by the amount that bears the same ratio to the 
     sum of the differences determined under subparagraph (A) of 
     this paragraph for the fiscal year as the excess of the 
     amount so allotted over the greater of $500,000 or the amount 
     payable to the State under this section for fiscal year 1998 
     bears to the sum of such excess amounts determined for all 
     such States.
       ``(d) Use of Funds.--
       ``(1) In general.--A State to which an amount is paid from 
     its allotment under subsection (c) may use the amount in any 
     manner that is reasonably calculated to accomplish the 
     purposes of this section.
       ``(2) No supplantation of other funds available for same 
     general purposes.--The amounts paid to a State from its 
     allotment under subsection (c) shall be used to supplement 
     and not supplant any other funds which are available for the 
     same general purposes in the State.
       ``(3) Two-year availability of funds.--Payments made to a 
     State under this section for a fiscal year shall be expended 
     by the State in the fiscal year or in the succeeding fiscal 
     year.
       ``(e) Penalties.--
       ``(1) Use of grant in violation of this part.--If the 
     Secretary is made aware, by an audit conducted under chapter 
     75 of title 31, United States Code, or by any other means, 
     that a program receiving funds from an allotment made to a 
     State under subsection (c) has been operated in a manner that 
     is inconsistent with, or not disclosed in the State 
     application approved under subsection (b), the Secretary 
     shall assess a penalty against the State in an amount equal 
     to not less than 1 percent and not more than 5 percent of the 
     amount of the allotment.
       ``(2) Failure to comply with data reporting requirement.--
     The Secretary shall assess a penalty against a State that 
     fails during a fiscal year to comply with an information 
     collection plan implemented under subsection (f) in an amount 
     equal to not less than 1 percent and not more than 5 percent 
     of the amount allotted to the State for the fiscal year.
       ``(3) Penalties based on degree of noncompliance.--The 
     Secretary shall assess penalties under this subsection based 
     on the degree of noncompliance.
       ``(f) Data Collection and Performance Measurement.--
       ``(1) In general.--The Secretary, in consultation with 
     State and local public officials responsible for 
     administering independent living and other child welfare 
     programs, child welfare advocates, members of Congress, youth 
     service providers, and researchers, shall--
       ``(A) develop outcome measures (including measures of 
     educational attainment, high school diploma, employment, 
     avoidance of dependency, homelessness, nonmarital childbirth, 
     incarceration, and high-risk behaviors) that can be used to 
     assess the performance of States in operating independent 
     living programs;
       ``(B) identify data elements needed to track--
       ``(i) the number and characteristics of children receiving 
     services under this section;
       ``(ii) the type and quantity of services being provided; 
     and
       ``(iii) State performance on the outcome measures; and
       ``(C) develop and implement a plan to collect the needed 
     information beginning with the second fiscal year beginning 
     after the date of the enactment of this section.
       ``(2) Report to the congress.--Within 12 months after the 
     date of the enactment of this section, the Secretary shall 
     submit to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate a 
     report detailing the plans and timetable for collecting from 
     the States the information described in paragraph (1) and a 
     proposal to impose penalties consistent with paragraph (e)(2) 
     on States that do not report data.
       ``(g) Evaluations.--
       ``(1) In general.--The Secretary shall conduct evaluations 
     of such State programs funded under this section as the 
     Secretary deems to be innovative or of potential national 
     significance. The evaluation of any such program shall 
     include information on the effects of the program on 
     education, employment, and personal development. To the 
     maximum extent practicable, the evaluations shall be based on 
     rigorous scientific standards including random assignment to 
     treatment and control groups. The Secretary is encouraged to 
     work directly with State and local governments to design 
     methods for conducting the evaluations, directly or by grant, 
     contract, or cooperative agreement.
       ``(2) Funding of evaluations.--The Secretary shall reserve 
     1.5 percent of the amount specified in subsection (h) for a 
     fiscal year to carry out, during the fiscal year, evaluation, 
     technical assistance, performance measurement, and data 
     collection activities related to this section, directly or 
     through grants, contracts, or cooperative agreements with 
     appropriate entities.
       ``(h) Limitations on Authorization of Appropriations.--To 
     carry out this section and for payments to States under 
     section 474(a)(4), there are authorized to be appropriated to 
     the Secretary $140,000,000 for each fiscal year.''.
       (c) Payments to States.--Section 474(a)(4) of such Act (42 
     U.S.C. 674(a)(4)) is amended to read as follows:
       ``(4) the lesser of--
       ``(A) 80 percent of the amount (if any) by which--
       ``(i) the total amount expended by the State during the 
     fiscal year in which the quarter occurs to carry out programs 
     in accordance with the State application approved under 
     section 477(b) for the period in

[[Page 31128]]

     which the quarter occurs (including any amendment that meets 
     the requirements of section 477(b)(5)); exceeds
       ``(ii) the total amount of any penalties assessed against 
     the State under section 477(e) during the fiscal year in 
     which the quarter occurs; or
       ``(B) the amount allotted to the State under section 477 
     for the fiscal year in which the quarter occurs, reduced by 
     the total of the amounts payable to the State under this 
     paragraph for all prior quarters in the fiscal year.''.
       (d) Regulations.--Not later than 12 months after the date 
     of the enactment of this Act, the Secretary of Health and 
     Human Services shall issue such regulations as may be 
     necessary to carry out the amendments made by this section.
       (e) Sense of the Congress.--It is the sense of the Congress 
     that States should provide medical assistance under the State 
     plan approved under title XIX of the Social Security Act to 
     18-, 19-, and 20-year-olds who have been emancipated from 
     foster care.
               Subtitle B--Related Foster Care Provision

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

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

     SEC. 112. PREPARATION OF FOSTER PARENTS TO PROVIDE FOR THE 
                   NEEDS OF CHILDREN IN STATE CARE.

       (a) State Plan Requirement.--Section 471(a) of the Social 
     Security Act (42 U.S.C. 671(a)) is amended--
       (1) by striking ``and'' at the end of paragraph (22);
       (2) by striking the period at the end of paragraph (23) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(24) include a certification that, before a child in 
     foster care under the responsibility of the State is placed 
     with prospective foster parents, the prospective foster 
     parents will be prepared adequately with the appropriate 
     knowledge and skills to provide for the needs of the child, 
     and that such preparation will be continued, as necessary, 
     after the placement of the child.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 1999.
                    Subtitle C--Medicaid Amendments

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

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

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

       (2) by adding at the end of section 1905 (42 U.S.C. 1396d) 
     the following new subsection:
       ``(v)(1) For purposes of this title, the term `independent 
     foster care adolescent' means an individual--
       ``(A) who is under 21 years of age;
       ``(B) who, on the individual's 18th birthday, was in foster 
     care under the responsibility of a State; and
       ``(C) whose assets, resources, and income do not exceed 
     such levels (if any) as the State may establish consistent 
     with paragraph (2).
       ``(2) The levels established by a State under paragraph 
     (1)(C) may not be less than the corresponding levels applied 
     by the State under section 1931(b).
       ``(3) A State may limit the eligibility of independent 
     foster care adolescents under section 1902(a)(10)(A)(ii)(XV) 
     to those individuals with respect to whom foster care 
     maintenance payments or independent living services were 
     furnished under a program funded under part E of title IV 
     before the date the individuals attained 18 years of age.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     apply to medical assistance for items and services furnished 
     on or after October 1, 1999.
       (c) Contingency in Enactment.--If the Ticket to Work and 
     Work Incentives Improvement Act of 1999 is enacted (whether 
     before, on, or after the date of the enactment of this Act)--
       (1) the amendments made by that Act shall be executed as if 
     this Act had been enacted after the enactment of such other 
     Act;
       (2) with respect to subsection (a)(1)(A) of this section, 
     any reference to subclause (XIII) is deemed a reference to 
     subclause (XV);
       (3) with respect to subsection (a)(1)(B) of this section, 
     any reference to subclause (XIV) is deemed a reference to 
     subclause (XVI);
       (4) the subclause (XV) added by subsection (a)(1)(C) of 
     this section--
       (A) is redesignated as subclause (XVII); and
       (B) is amended by striking ``section 1905(v)(1)'' and 
     inserting ``section 1905(w)(1)''; and
       (5) the subsection (v) added by subsection (a)(2) of this 
     section--
       (A) is redesignated as subsection (w); and
       (B) is amended by striking ``1902(a)(10)(A)(ii)(XV)'' and 
     inserting ``1902(a)(10)(A)(ii)(XVII)''.
                Subtitle D--Adoption Incentive Payments

     SEC. 131. INCREASED FUNDING FOR ADOPTION INCENTIVE PAYMENTS.

       (a) Supplemental Grants.--Section 473A of the Social 
     Security Act (42 U.S.C. 673b) is amended by adding at the end 
     the following:
       ``(j) Supplemental Grants.--
       ``(1) In general.--Subject to the availability of such 
     amounts as may be provided in advance in appropriations Acts, 
     in addition to any amount otherwise payable under this 
     section to any State that is an incentive-eligible State for 
     fiscal year 1998, the Secretary shall make a grant to the 
     State in an amount equal to the lesser of--
       ``(A) the amount by which--
       ``(i) the amount that would have been payable to the State 
     under this section during fiscal year 1999 (on the basis of 
     adoptions in fiscal year 1998) in the absence of subsection 
     (d)(2) if sufficient funds had been available for the 
     payment; exceeds
       ``(ii) the amount that, before the enactment of this 
     subsection, was payable to the State under this section 
     during fiscal year 1999 (on such basis); or
       ``(B) the amount that bears the same ratio to the dollar 
     amount specified in paragraph (2) as the amount described by 
     subparagraph (A) for the State bears to the aggregate of the 
     amounts described by subparagraph (A) for all States that are 
     incentive-eligible States for fiscal year 1998.
       ``(2) Funding.--$23,000,000 of the amounts appropriated 
     under subsection (h)(1) for fiscal year 2000 may be used for 
     grants under paragraph (1) of this subsection.''.
       (b) Limitation on Authorization of Appropriations.--Section 
     473A(h)(1) of the Social Security Act (42 U.S.C. 673b(h)(1)) 
     is amended to read as follows:
       ``(1) In general.--For grants under subsection (a), there 
     are authorized to be appropriated to the Secretary--
       ``(A) $20,000,000 for fiscal year 1999;
       ``(B) $43,000,000 for fiscal year 2000; and
       ``(C) $20,000,000 for each of fiscal years 2001 through 
     2003.''.
                     TITLE II--SSI FRAUD PREVENTION
          Subtitle A--Fraud Prevention and Related Provisions

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

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

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

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

[[Page 31129]]



     SEC. 203. ADDITIONAL DEBT COLLECTION PRACTICES.

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

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

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

     SEC. 205. TREATMENT OF ASSETS HELD IN TRUST UNDER THE SSI 
                   PROGRAM.

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

                                ``Trusts

       ``(e)(1) In determining the resources of an individual, 
     paragraph (3) shall apply to a trust (other than a trust 
     described in paragraph (5)) established by the individual.
       ``(2)(A) For purposes of this subsection, an individual 
     shall be considered to have established a trust if any assets 
     of the individual (or of the individual's spouse) are 
     transferred to the trust other than by will.
       ``(B) In the case of an irrevocable trust to which are 
     transferred the assets of an individual (or of the 
     individual's spouse) and the assets of any other person, this 
     subsection shall apply to the portion of the trust 
     attributable to the assets of the individual (or of the 
     individual's spouse).
       ``(C) This subsection shall apply to a trust without regard 
     to--
       ``(i) the purposes for which the trust is established;
       ``(ii) whether the trustees have or exercise any discretion 
     under the trust;
       ``(iii) any restrictions on when or whether distributions 
     may be made from the trust; or
       ``(iv) any restrictions on the use of distributions from 
     the trust.
       ``(3)(A) In the case of a revocable trust established by an 
     individual, the corpus of the trust shall be considered a 
     resource available to the individual.
       ``(B) In the case of an irrevocable trust established by an 
     individual, if there are any circumstances under which 
     payment from the trust could be made to or for the benefit of 
     the individual or 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) Conforming Amendments.--Section 1902(a)(10) of the 
     Social Security Act (42 U.S.C. 1396a(a)(10)) is amended--
       (1) by striking ``and'' at the end of subparagraph (E);
       (2) by adding ``and'' at the end of subparagraph (F); and
       (3) by inserting after subparagraph (F) the following:
       ``(G) that, in applying eligibility criteria of the 
     supplemental security income program under title XVI for 
     purposes of determining eligibility for medical assistance 
     under the State plan of an individual who is not receiving 
     supplemental security income, the State will disregard the 
     provisions of section 1613(e);''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2000, and shall apply to 
     trusts established on or after such date.

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

       (a) In General.--Section 1613(c) of the Social Security Act 
     (42 U.S.C. 1382b(c)) is amended--
       (1) in the caption, by striking ``Notification of Medicaid 
     Policy Restricting Eligibility of Institutionalized 
     Individuals for Benefits Based on'';
       (2) in paragraph (1)--
       (A) in subparagraph (A)--
       (i) by inserting ``paragraph (1) and'' after ``provisions 
     of'';
       (ii) by striking ``title XIX'' the first place it appears 
     and inserting ``this title and title XIX, respectively,'';
       (iii) by striking ``subparagraph (B)'' and inserting 
     ``clause (ii)'';
       (iv) by striking ``paragraph (2)'' and inserting 
     ``subparagraph (B)'';
       (B) in subparagraph (B)--
       (i) by striking ``by the State agency''; and
       (ii) by striking ``section 1917(c)'' and all that follows 
     and inserting ``paragraph (1) or section 1917(c).''; and
       (C) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively;
       (3) in paragraph (2)--
       (A) by striking ``(2)'' and inserting ``(B)''; and
       (B) by striking ``paragraph (1)(B)'' and inserting 
     ``subparagraph (A)(ii)'';
       (4) by striking ``(c)(1)'' and inserting ``(2)(A)''; and
       (5) by inserting before paragraph (2) (as so redesignated 
     by paragraph (4) of this subsection) the following:
       ``(c)(1)(A)(i) If an individual or the spouse of an 
     individual disposes of resources for less than fair market 
     value on or after the look-back date described in clause 
     (ii)(I), the individual is ineligible for benefits under this 
     title for months during the period beginning on the date 
     described in clause (iii) and equal to the number of months 
     calculated as provided in clause (iv).
       ``(ii)(I) The look-back date described in this subclause is 
     a date that is 36 months before the date described in 
     subclause (II).
       ``(II) The date described in this subclause is the date on 
     which the individual applies for benefits under this title 
     or, if later, the date on which the individual (or the spouse 
     of the individual) disposes of resources for less than fair 
     market value.
       ``(iii) The date described in this clause is the first day 
     of the first month in or after which resources were disposed 
     of for less than fair market value and which does not occur 
     in any other period of ineligibility under this paragraph.
       ``(iv) The number of months calculated under this clause 
     shall be equal to--
       ``(I) the total, cumulative uncompensated value of all 
     resources so disposed of by the individual (or the spouse of 
     the individual) on or after the look-back date described in 
     clause (ii)(I); divided by
       ``(II) the amount of the maximum monthly benefit payable 
     under section 1611(b), plus the amount (if any) of the 
     maximum State supplementary payment corresponding to the 
     State's payment level applicable to the individual's living 
     arrangement and eligibility category that would otherwise be 
     payable to the individual by the Commissioner pursuant to an 
     agreement under section 1616(a) of this Act or section 212(b) 
     of Public Law 93-66, for the month in which occurs the date 
     described in clause (ii)(II),

[[Page 31130]]

     rounded, in the case of any fraction, to the nearest whole 
     number, but shall not in any case exceed 36 months.
       ``(B)(i) Notwithstanding subparagraph (A), this subsection 
     shall not apply to a transfer of a resource to a trust if the 
     portion of the trust attributable to the resource is 
     considered a resource available to the individual pursuant to 
     subsection (e)(3) (or would be so considered but for the 
     application of subsection (e)(4)).
       ``(ii) In the case of a trust established by an individual 
     or an individual's spouse (within the meaning of subsection 
     (e)), if from such portion of the trust, if any, that is 
     considered a resource available to the individual pursuant to 
     subsection (e)(3) (or would be so considered but for the 
     application of subsection (e)(4)) or the residue of the 
     portion on the termination of the trust--
       ``(I) there is made a payment other than to or for the 
     benefit of the individual; or
       ``(II) no payment could under any circumstance be made to 
     the individual,
     then, for purposes of this subsection, the payment described 
     in clause (I) or the foreclosure of payment described in 
     clause (II) shall be considered a transfer of resources by 
     the individual or the individual's spouse as of the date of 
     the payment or foreclosure, as the case may be.
       ``(C) An individual shall not be ineligible for benefits 
     under this title by reason of the application of this 
     paragraph to a disposal of resources by the individual or the 
     spouse of the individual, to the extent that--
       ``(i) the resources are a home and title to the home was 
     transferred to--
       ``(I) the spouse of the transferor;
       ``(II) a child of the transferor who has not attained 21 
     years of age, or is blind or disabled;
       ``(III) a sibling of the transferor who has an equity 
     interest in such home and who was residing in the 
     transferor's home for a period of at least 1 year immediately 
     before the date the transferor becomes an institutionalized 
     individual; or
       ``(IV) a son or daughter of the transferor (other than a 
     child described in subclause (II)) who was residing in the 
     transferor's home for a period of at least 2 years 
     immediately before the date the transferor becomes an 
     institutionalized individual, and who provided care to the 
     transferor which permitted the transferor to reside at home 
     rather than in such an institution or facility;
       ``(ii) the resources--
       ``(I) were transferred to the transferor's spouse or to 
     another for the sole benefit of the transferor's spouse;
       ``(II) were transferred from the transferor's spouse to 
     another for the sole benefit of the transferor's spouse;
       ``(III) were transferred to, or to a trust (including a 
     trust described in section 1917(d)(4)) established solely for 
     the benefit of, the transferor's child who is blind or 
     disabled; or
       ``(IV) were transferred to a trust (including a trust 
     described in section 1917(d)(4)) established solely for the 
     benefit of an individual who has not attained 65 years of age 
     and who is disabled;
       ``(iii) a satisfactory showing is made to the Commissioner 
     of Social Security (in accordance with regulations 
     promulgated by the Commissioner) that--
       ``(I) the individual who disposed of the resources intended 
     to dispose of the resources either at fair market value, or 
     for other valuable consideration;
       ``(II) the resources were transferred exclusively for a 
     purpose other than to qualify for benefits under this title; 
     or
       ``(III) all resources transferred for less than fair market 
     value have been returned to the transferor; or
       ``(iv) the Commissioner determines, under procedures 
     established by the Commissioner, that the denial of 
     eligibility would work an undue hardship as determined on the 
     basis of criteria established by the Commissioner.
       ``(D) For purposes of this subsection, in the case of a 
     resource held by an individual in common with another person 
     or persons in a joint tenancy, tenancy in common, or similar 
     arrangement, the resource (or the affected portion of such 
     resource) shall be considered to be disposed of by the 
     individual when any action is taken, either by the individual 
     or by any other person, that reduces or eliminates the 
     individual's ownership or control of such resource.
       ``(E) In the case of a transfer by the spouse of an 
     individual that results in a period of ineligibility for the 
     individual under this subsection, the Commissioner shall 
     apportion the period (or any portion of the period) among the 
     individual and the individual's spouse if the spouse becomes 
     eligible for benefits under this title.
       ``(F) For purposes of this paragraph--
       ``(i) the term `benefits under this title' includes 
     payments of the type described in section 1616(a) of this Act 
     and of the type described in section 212(b) of Public Law 93-
     66;
       ``(ii) the term `institutionalized individual' has the 
     meaning given such term in section 1917(e)(3); and
       ``(iii) the term `trust' has the meaning given such term in 
     subsection (e)(6)(A) of this section.''.
       (b) Conforming Amendment.--Section 1902(a)(10) of the 
     Social Security Act (42 U.S.C. 1396a(a)(10)), as amended by 
     section 205(c) of this Act, is amended by striking ``section 
     1613(e)'' and inserting ``subsections (c) and (e) of section 
     1613''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective with respect to disposals made on or after 
     the date of the enactment of this Act.

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

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

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

       ``(a) In General.--Any person who makes, or causes to be 
     made, a statement or representation of a material fact for 
     use in determining any initial or continuing right to or the 
     amount of--
       ``(1) monthly insurance benefits under title II; or
       ``(2) benefits or payments under title XVI,
     that the person knows or should know is false or misleading 
     or knows or should know omits a material fact or who makes 
     such a statement with knowing disregard for the truth shall 
     be subject to, in addition to any other penalties that may be 
     prescribed by law, a penalty described in subsection (b) to 
     be imposed by the Commissioner of Social Security.
       ``(b) Penalty.--The penalty described in this subsection 
     is--
       ``(1) nonpayment of benefits under title II that would 
     otherwise be payable to the person; and
       ``(2) ineligibility for cash benefits under title XVI,
     for each month that begins during the applicable period 
     described in subsection (c).
       ``(c) Duration of Penalty.--The duration of the applicable 
     period, with respect to a determination by the Commissioner 
     under subsection (a) that a person has engaged in conduct 
     described in subsection (a), shall be--
       ``(1) six consecutive months, in the case of the first such 
     determination with respect to the person;
       ``(2) twelve consecutive months, in the case of the second 
     such determination with respect to the person; and
       ``(3) twenty-four consecutive months, in the case of the 
     third or subsequent such determination with respect to the 
     person.
       ``(d) Effect on Other Assistance.--A person subject to a 
     period of nonpayment of benefits under title II or 
     ineligibility for title XVI benefits by reason of this 
     section nevertheless shall be considered to be eligible for 
     and receiving such benefits, to the extent that the person 
     would be receiving or eligible for such benefits but for the 
     imposition of the penalty, for purposes of--
       ``(1) determination of the eligibility of the person for 
     benefits under titles XVIII and XIX; and
       ``(2) determination of the eligibility or amount of 
     benefits payable under title II or XVI to another person.
       ``(e) Definition.--In this section, the term `benefits 
     under title XVI' includes State supplementary payments made 
     by the Commissioner pursuant to an agreement under section 
     1616(a) of this Act or section 212(b) of Public Law 93-66.
       ``(f) Consultations.--The Commissioner of Social Security 
     shall consult with the Inspector General of the Social 
     Security Administration regarding initiating actions under 
     this section.''.
       (b) Conforming Amendment Precluding Delayed Retirement 
     Credit for any Month to Which a Nonpayment of Benefits 
     Penalty Applies.--Section 202(w)(2)(B) of such Act (42 U.S.C. 
     402(w)(2)(B)) is amended--
       (1) by striking ``and'' at the end of clause (i);
       (2) by striking the period at the end of clause (ii) and 
     inserting ``, and''; and
       (3) by adding at the end the following:
       ``(iii) such individual was not subject to a penalty 
     imposed under section 1129A.''.
       (c) Elimination of Redundant Provision.--Section 1611(e) of 
     such Act (42 U.S.C. 1382(e)) is amended--
       (1) by striking paragraph (4);
       (2) in paragraph (6)(A)(i), by striking ``(5)'' and 
     inserting ``(4)''; and
       (3) by redesignating paragraphs (5) and (6) as paragraphs 
     (4) and (5), respectively.
       (d) Regulations.--Within 6 months after the date of the 
     enactment of this Act, the Commissioner of Social Security 
     shall develop regulations that prescribe the administrative 
     process for making determinations under section 1129A of the 
     Social Security Act (including when the applicable period in 
     subsection (c) of such section shall commence), and shall 
     provide guidance on the exercise of discretion as to whether 
     the penalty should be imposed in particular cases.
       (e) Effective Date.--The amendments made by this section 
     shall apply to statements and representations made on or 
     after the date of the enactment of this Act.

     SEC. 208. EXCLUSION OF REPRESENTATIVES AND HEALTH CARE 
                   PROVIDERS CONVICTED OF VIOLATIONS FROM 
                   PARTICIPATION IN SOCIAL SECURITY PROGRAMS.

       (a) In General.--Part A of title XI of the Social Security 
     Act is amended by inserting before section 1137 (42 U.S.C. 
     1320b-7) the following:

[[Page 31131]]




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

       ``Sec. 1136. (a) In General.--The Commissioner of Social 
     Security shall exclude from participation in the social 
     security programs any representative or health care 
     provider--
       ``(1) who is convicted of a violation of section 208 or 
     1632 of this Act;
       ``(2) who is convicted of any violation under title 18, 
     United States Code, relating to an initial application for or 
     continuing entitlement to, or amount of, benefits under title 
     II of this Act, or an initial application for or continuing 
     eligibility for, or amount of, benefits under title XVI of 
     this Act; or
       ``(3) who the Commissioner determines has committed an 
     offense described in section 1129(a)(1) of this Act.
       ``(b) Notice, Effective Date, and Period of Exclusion.--(1) 
     An exclusion under this section shall be effective at such 
     time, for such period, and upon such reasonable notice to the 
     public and to the individual excluded as may be specified in 
     regulations consistent with paragraph (2).
       ``(2) Such an exclusion shall be effective with respect to 
     services furnished to any individual on or after the 
     effective date of the exclusion. Nothing in this section may 
     be construed to preclude, in determining disability under 
     title II or title XVI, consideration of any medical evidence 
     derived from services provided by a health care provider 
     before the effective date of the exclusion of the health care 
     provider under this section.
       ``(3)(A) The Commissioner shall specify, in the notice of 
     exclusion under paragraph (1), the period of the exclusion.
       ``(B) Subject to subparagraph (C), in the case of an 
     exclusion under subsection (a), the minimum period of 
     exclusion shall be 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 the enactment) been 
     convicted, or if such a determination has been made with 
     respect to the individual--
       ``(i) on one previous occasion of one or more offenses for 
     which an exclusion may be effected under such subsection, the 
     period of the exclusion shall be not less than 10 years; or
       ``(ii) on two or more previous occasions of one or more 
     offenses for which an exclusion may be effected under such 
     subsection, the period of the exclusion shall be permanent.
       ``(c) Notice to State Agencies.--The Commissioner shall 
     promptly notify each appropriate State agency employed for 
     the purpose of making disability determinations under section 
     221 or 1633(a)--
       ``(1) of the fact and circumstances of each exclusion 
     effected against an individual under this section; and
       ``(2) of the period (described in subsection (b)(3)) for 
     which the State agency is directed to exclude the individual 
     from participation in the activities of the State agency in 
     the course of its employment.
       ``(d) Notice to State Licensing Agencies.--The Commissioner 
     shall--
       ``(1) promptly notify the appropriate State or local agency 
     or authority having responsibility for the licensing or 
     certification of an individual excluded from participation 
     under this section of the fact and circumstances of the 
     exclusion;
       ``(2) request that appropriate investigations be made and 
     sanctions invoked in accordance with applicable State law and 
     policy; and
       ``(3) request that the State or local agency or authority 
     keep the Commissioner and the Inspector General of the Social 
     Security Administration fully and currently informed with 
     respect to any actions taken in response to the request.
       ``(e) Notice, Hearing, and Judicial Review.--(1) Any 
     individual who is excluded (or directed to be excluded) from 
     participation under this section is entitled to reasonable 
     notice and opportunity for a hearing thereon by the 
     Commissioner to the same extent as is provided in section 
     205(b), and to judicial review of the Commissioner's final 
     decision after such hearing as is provided in section 205(g).
       ``(2) The provisions of section 205(h) shall apply with 
     respect to this section to the same extent as it is 
     applicable with respect to title II.
       ``(f) Application for Termination of Exclusion.--(1) An 
     individual excluded from participation under this section may 
     apply to the Commissioner, in the manner specified by the 
     Commissioner in regulations and at the end of the minimum 
     period of exclusion provided under subsection (b)(3) and at 
     such other times as the Commissioner may provide, for 
     termination of the exclusion effected under this section.
       ``(2) The Commissioner may terminate the exclusion if the 
     Commissioner determines, on the basis of the conduct of the 
     applicant which occurred after the date of the notice of 
     exclusion or which was unknown to the Commissioner at the 
     time of the exclusion, that--
       ``(A) there is no basis under subsection (a) for a 
     continuation of the exclusion; and
       ``(B) there are reasonable assurances that the types of 
     actions which formed the basis for the original exclusion 
     have not recurred and will not recur.
       ``(3) The Commissioner shall promptly notify each State 
     agency employed for the purpose of making disability 
     determinations under section 221 or 1633(a) of the fact and 
     circumstances of each termination of exclusion made under 
     this subsection.
       ``(g) Availability of Records of Excluded Representatives 
     and health care providers.--Nothing in this section shall be 
     construed to have the effect of limiting access by any 
     applicant or beneficiary under title II or XVI, any State 
     agency acting under section 221 or 1633(a), or the 
     Commissioner to records maintained by any representative or 
     health care provider in connection with services provided to 
     the applicant or beneficiary prior to the exclusion of such 
     representative or health care provider under this section.
       ``(h) Reporting Requirement.--Any representative or health 
     care provider participating in, or seeking to participate in, 
     a social security program shall inform the Commissioner, in 
     such form and manner as the Commissioner shall prescribe by 
     regulation, whether such representative or health care 
     provider has been convicted of a violation described in 
     subsection (a).
       ``(i) Delegation of Authority.--The Commissioner may 
     delegate authority granted by this section to the Inspector 
     General.
       ``(j) Definitions.--For purposes of this section:
       ``(1) Exclude.--The term `exclude' from participation 
     means--
       ``(A) in connection with a representative, to prohibit from 
     engaging in representation of an applicant for, or recipient 
     of, benefits, as a representative payee under section 205(j) 
     or section 1631(a)(2)(A)(ii), or otherwise as a 
     representative, in any hearing or other proceeding relating 
     to entitlement to benefits; and
       ``(B) in connection with a health care provider, to 
     prohibit from providing items or services to an applicant 
     for, or recipient of, benefits for the purpose of assisting 
     such applicant or recipient in demonstrating disability.
       ``(2) Social security program.--The term `social security 
     programs' means the program providing for monthly insurance 
     benefits under title II, and the program providing for 
     monthly supplemental security income benefits to individuals 
     under title XVI (including State supplementary payments made 
     by the Commissioner pursuant to an agreement under section 
     1616(a) of this Act or section 212(b) of Public Law 93-66).
       ``(3) Convicted.--An individual is considered to have been 
     `convicted' of a violation--
       ``(A) when a judgment of conviction has been entered 
     against the individual by a Federal, State, or local court, 
     except if the judgment of conviction has been set aside or 
     expunged;
       ``(B) when there has been a finding of guilt against the 
     individual by a Federal, State, or local court;
       ``(C) when a plea of guilty or nolo contendere by the 
     individual has been accepted by a Federal, State, or local 
     court; or
       ``(D) when the individual has entered into participation in 
     a first offender, deferred adjudication, or other arrangement 
     or program where judgment of conviction has been withheld.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to convictions of violations 
     described in paragraphs (1) and (2) of section 1136(a) of the 
     Social Security Act and determinations described in paragraph 
     (3) of such section occurring on or after the date of the 
     enactment of this Act.

     SEC. 209. STATE DATA EXCHANGES.

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

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

       (a) Study.--As soon as practicable after the date of the 
     enactment of this Act, the Commissioner of Social Security, 
     in consultation with the Inspector General of the Social 
     Security Administration and the Attorney General, shall 
     conduct a study of possible measures to improve--
       (1) prevention of fraud on the part of individuals entitled 
     to disability benefits under section 223 of the Social 
     Security Act or benefits under section 202 of such Act based 
     on the beneficiary's disability, individuals eligible for 
     supplemental security income benefits under title XVI of such 
     Act, and applicants for any such benefits; and

[[Page 31132]]

       (2) timely processing of reported income changes by 
     individuals receiving such benefits.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Commissioner shall submit to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate a written report 
     that contains the results of the Commissioner's study under 
     subsection (a). The report shall contain such recommendations 
     for legislative and administrative changes as the 
     Commissioner considers appropriate.

     SEC. 211. ANNUAL REPORT ON AMOUNTS NECESSARY TO COMBAT FRAUD.

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

     SEC. 212. COMPUTER MATCHES WITH MEDICARE AND MEDICAID 
                   INSTITUTIONALIZATION DATA.

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

     SEC. 213. ACCESS TO INFORMATION HELD BY FINANCIAL 
                   INSTITUTIONS.

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

     SEC. 251. ESTABLISHMENT OF PROGRAM OF SPECIAL BENEFITS FOR 
                   CERTAIN WORLD WAR II VETERANS.

       (a) In General.--The Social Security Act is amended by 
     inserting after title VII the following new title:
    ``TITLE VIII--SPECIAL BENEFITS FOR CERTAIN WORLD WAR II VETERANS

                          ``Table of Contents

``Sec. 801. Basic entitlement to benefits.
``Sec. 802. Qualified individuals.
``Sec. 803. Residence outside the United States.
``Sec. 804. Disqualifications.
``Sec. 805. Benefit amount.
``Sec. 806. Applications and furnishing of information.
``Sec. 807. Representative payees.
``Sec. 808. Overpayments and underpayments.
``Sec. 809. Hearings and review.
``Sec. 810. Other administrative provisions.
``Sec. 811. Penalties for fraud.
``Sec. 812. Definitions.
``Sec. 813. Appropriations.

     ``SEC. 801. BASIC ENTITLEMENT TO BENEFITS.

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

     ``SEC. 802. QUALIFIED INDIVIDUALS.

       ``Except as otherwise provided in this title, an 
     individual--
       ``(1) who has attained the age of 65 on or before the date 
     of the enactment of this title;
       ``(2) who is a World War II veteran;
       ``(3) who is eligible for a supplemental security income 
     benefit under title XVI for--
       ``(A) the month in which this title is enacted; and
       ``(B) the month in which the individual files an 
     application for benefits under this title;
       ``(4) whose total benefit income is less than 75 percent of 
     the Federal benefit rate under title XVI;
       ``(5) who has filed an application for benefits under this 
     title; and
       ``(6) who is in compliance with all requirements imposed by 
     the Commissioner of Social Security under this title,
     shall be a qualified individual for purposes of this title.

     ``SEC. 803. RESIDENCE OUTSIDE THE UNITED STATES.

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

     ``SEC. 804. DISQUALIFICATIONS.

       ``(a) In General.--Notwithstanding section 802, an 
     individual may not be a qualified individual for any month--
       ``(1) that begins after the month in which the Commissioner 
     of Social Security is notified by the Attorney General that 
     the individual has been removed from the United States 
     pursuant to section 237(a) or 212(a)(6)(A) of the Immigration 
     and Nationality Act and before the month in which the 
     individual is lawfully admitted to the United States for 
     permanent residence;
       ``(2) during any part of which the individual is fleeing to 
     avoid prosecution, or custody or confinement after 
     conviction, under the laws of the United States or the 
     jurisdiction within the United States from which the person 
     has fled, for a crime, or an attempt to commit a crime, that 
     is a felony under the laws of the place from which the 
     individual has fled, or which, in the case of the State of 
     New Jersey, is a high misdemeanor under the laws of such 
     State;
       ``(3) during any part of which the individual violates a 
     condition of probation or parole imposed under Federal or 
     State law; or
       ``(4) during which the individual resides in a foreign 
     country and is not a citizen or national of the United States 
     if payments for such month to individuals residing in such 
     country are withheld by the Treasury Department under section 
     3329 of title 31, United States Code.
       ``(b) Requirement for Attorney General.--For the purpose of 
     carrying out subsection (a)(1), the Attorney General shall 
     notify the Commissioner of Social Security as soon as 
     practicable after the removal of any individual under section 
     237(a) or 212(a)(6)(A) of the Immigration and Nationality 
     Act.

[[Page 31133]]



     ``SEC. 805. BENEFIT AMOUNT.

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

     ``SEC. 806. APPLICATIONS AND FURNISHING OF INFORMATION.

       ``(a) In General.--The Commissioner of Social Security 
     shall, subject to subsection (b), prescribe such requirements 
     with respect to the filing of applications, the furnishing of 
     information and other material, and the reporting of events 
     and changes in circumstances, as may be necessary for the 
     effective and efficient administration of this title.
       ``(b) Verification Requirement.--The requirements 
     prescribed by the Commissioner of Social Security under 
     subsection (a) shall preclude any determination of 
     entitlement to benefits under this title solely on the basis 
     of declarations by the individual concerning qualifications 
     or other material facts, and shall provide for verification 
     of material information from independent or collateral 
     sources, and the procurement of additional information as 
     necessary in order to ensure that the benefits are provided 
     only to qualified individuals (or their representative 
     payees) in correct amounts.

     ``SEC. 807. REPRESENTATIVE PAYEES.

       ``(a) In General.--If the Commissioner of Social Security 
     determines that the interest of any qualified individual 
     under this title would be served thereby, payment of the 
     qualified individual's benefit under this title may be made, 
     regardless of the legal competency or incompetency of the 
     qualified individual, either directly to the qualified 
     individual, or for his or her benefit, to another person (the 
     meaning of which term, for purposes of this section, includes 
     an organization) with respect to whom the requirements of 
     subsection (b) have been met (in this section referred to as 
     the qualified individual's `representative payee'). If the 
     Commissioner of Social Security determines that a 
     representative payee has misused any benefit paid to the 
     representative payee pursuant to this section, section 
     205(j), or section 1631(a)(2), the Commissioner of Social 
     Security shall promptly revoke the person's designation as 
     the qualified individual's representative payee under this 
     subsection, and shall make payment to an alternative 
     representative payee or, if the interest of the qualified 
     individual under this title would be served thereby, to the 
     qualified individual.
       ``(b) Examination of Fitness of Prospective Representative 
     Payee.--
       ``(1) Any determination under subsection (a) to pay the 
     benefits of a qualified individual to a representative payee 
     shall be made on the basis of--
       ``(A) an investigation by the Commissioner of Social 
     Security of the person to serve as representative payee, 
     which shall be conducted in advance of the determination and 
     shall, to the extent practicable, include a face-to-face 
     interview with the person (or, in the case of an 
     organization, a representative of the organization); and
       ``(B) adequate evidence that the arrangement is in the 
     interest of the qualified individual.
       ``(2) As part of the investigation referred to in paragraph 
     (1), the Commissioner of Social Security shall--
       ``(A) require the person being investigated to submit 
     documented proof of the identity of the person;
       ``(B) in the case of a person who has a social security 
     account number issued for purposes of the program under title 
     II or an employer identification number issued for purposes 
     of the Internal Revenue Code of 1986, verify the number;
       ``(C) determine whether the person has been convicted of a 
     violation of section 208, 811, or 1632; and
       ``(D) determine whether payment of benefits to the person 
     in the capacity as representative payee has been revoked or 
     terminated pursuant to this section, section 205(j), or 
     section 1631(a)(2)(A)(iii) by reason of misuse of funds paid 
     as benefits under this title, title II, or XVI, respectively.
       ``(c) Requirement for Maintaining Lists of Undesirable 
     Payees.--The Commissioner of Social Security shall establish 
     and maintain lists which shall be updated periodically and 
     which shall be in a form that renders such lists available to 
     the servicing offices of the Social Security Administration. 
     The lists shall consist of--
       ``(1) the names and (if issued) social security account 
     numbers or employer identification numbers of all persons 
     with respect to whom, in the capacity of representative 
     payee, the payment of benefits has been revoked or terminated 
     under this section, section 205(j), or section 
     1631(a)(2)(A)(iii) by reason of misuse of funds paid as 
     benefits under this title, title II, or XVI, respectively; 
     and
       ``(2) the names and (if issued) social security account 
     numbers or employer identification numbers of all persons who 
     have been convicted of a violation of section 208, 811, or 
     1632.
       ``(d) Persons Ineligible To Serve as Representative 
     Payees.--
       ``(1) In general.--The benefits of a qualified individual 
     may not be paid to any other person pursuant to this section 
     if--
       ``(A) the person has been convicted of a violation of 
     section 208, 811, or 1632;
       ``(B) except as provided in paragraph (2), payment of 
     benefits to the person in the capacity of representative 
     payee has been revoked or terminated under this section, 
     section 205(j), or section 1631(a)(2)(A)(ii) by reason of 
     misuse of funds paid as benefits under this title, title II, 
     or title XVI, respectively; or
       ``(C) except as provided in paragraph (2)(B), the person is 
     a creditor of the qualified individual and provides the 
     qualified individual with goods or services for 
     consideration.
       ``(2) Exemptions.--
       ``(A) The Commissioner of Social Security may prescribe 
     circumstances under which the Commissioner of Social Security 
     may grant an exemption from paragraph (1) to any person on a 
     case-by-case basis if the exemption is in the best interest 
     of the qualified individual whose benefits would be paid to 
     the person pursuant to this section.
       ``(B) Paragraph (1)(C) shall not apply with respect to any 
     person who is a creditor referred to in such paragraph if the 
     creditor is--
       ``(i) a relative of the qualified individual and the 
     relative resides in the same household as the qualified 
     individual;
       ``(ii) a legal guardian or legal representative of the 
     individual;
       ``(iii) a facility that is licensed or certified as a care 
     facility under the law of the political jurisdiction in which 
     the qualified individual resides;
       ``(iv) a person who is an administrator, owner, or employee 
     of a facility referred to in clause (iii), if the qualified 
     individual resides in the facility, and the payment to the 
     facility or the person is made only after the Commissioner of 
     Social Security has made a good faith effort to locate an 
     alternative representative payee to whom payment would serve 
     the best interests of the qualified individual; or
       ``(v) a person who is determined by the Commissioner of 
     Social Security, on the basis of written findings and 
     pursuant to procedures prescribed by the Commissioner of 
     Social Security, to be acceptable to serve as a 
     representative payee.
       ``(C) The procedures referred to in subparagraph (B)(v) 
     shall require the person who will serve as representative 
     payee to establish, to the satisfaction of the Commissioner 
     of Social Security, that--
       ``(i) the person poses no risk to the qualified individual;
       ``(ii) the financial relationship of the person to the 
     qualified individual poses no substantial conflict of 
     interest; and
       ``(iii) no other more suitable representative payee can be 
     found.
       ``(e) Deferral of Payment Pending Appointment of 
     Representative Payee.--
       ``(1) In general.--Subject to paragraph (2), if the 
     Commissioner of Social Security makes a determination 
     described in the first sentence of subsection (a) with 
     respect to any qualified individual's benefit and determines 
     that direct payment of the benefit to the qualified 
     individual would cause substantial harm to the qualified 
     individual, the Commissioner of Social Security may defer (in 
     the case of initial entitlement) or suspend (in the case of 
     existing entitlement) direct payment of the benefit to the 
     qualified individual, until such time as the selection of a 
     representative payee is made pursuant to this section.
       ``(2) Time limitation.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     any deferral or suspension of direct payment of a benefit 
     pursuant to paragraph (1) shall be for a period of not more 
     than 1 month.
       ``(B) Exception in the case of incompetency.--Subparagraph 
     (A) shall not apply in any case in which the qualified 
     individual is, as of the date of the Commissioner of Social 
     Security's determination, legally incompetent under the laws 
     of the jurisdiction in which the individual resides.
       ``(3) Payment of retroactive benefits.--Payment of any 
     benefits which are deferred or suspended pending the 
     selection of a representative payee shall be made to the 
     qualified individual or the representative payee as a single 
     sum or over such period of time as the Commissioner of Social 
     Security determines is in the best interest of the qualified 
     individual.
       ``(f) Hearing.--Any qualified individual who is 
     dissatisfied with a determination by the Commissioner of 
     Social Security to make payment of the qualified individual's 
     benefit to a representative payee under subsection (a) of 
     this section or with the designation of a particular person 
     to serve as representative payee shall be entitled to a 
     hearing by the Commissioner of Social Security to the same 
     extent as is provided in section 809(a), and to judicial 
     review of the Commissioner of Social Security's final 
     decision as is provided in section 809(b).
       ``(g) Notice Requirements.--
       ``(1) In general.--In advance, to the extent practicable, 
     of the payment of a qualified individual's benefit to a 
     representative payee under subsection (a), the Commissioner 
     of Social Security shall provide written notice of the 
     Commissioner's initial determination to so make the payment. 
     The notice shall be provided to the qualified individual, 
     except

[[Page 31134]]

     that, if the qualified individual is legally incompetent, 
     then the notice shall be provided solely to the legal 
     guardian or legal representative of the qualified individual.
       ``(2) Specific requirements.--Any notice required by 
     paragraph (1) shall be clearly written in language that is 
     easily understandable to the reader, shall identify the 
     person to be designated as the qualified individual's 
     representative payee, and shall explain to the reader the 
     right under subsection (f) of the qualified individual or of 
     the qualified individual's legal guardian or legal 
     representative--
       ``(A) to appeal a determination that a representative payee 
     is necessary for the qualified individual;
       ``(B) to appeal the designation of a particular person to 
     serve as the representative payee of the qualified 
     individual; and
       ``(C) to review the evidence upon which the designation is 
     based and to submit additional evidence.
       ``(h) Accountability Monitoring.--
       ``(1) In general.--In any case where payment under this 
     title is made to a person other than the qualified individual 
     entitled to the payment, the Commissioner of Social Security 
     shall establish a system of accountability monitoring under 
     which the person shall report not less often than annually 
     with respect to the use of the payments. The Commissioner of 
     Social Security shall establish and implement statistically 
     valid procedures for reviewing the reports in order to 
     identify instances in which persons are not properly using 
     the payments.
       ``(2) Special reports.--Notwithstanding paragraph (1), the 
     Commissioner of Social Security may require a report at any 
     time from any person receiving payments on behalf of a 
     qualified individual, if the Commissioner of Social Security 
     has reason to believe that the person receiving the payments 
     is misusing the payments.
       ``(3) Maintaining lists of payees.--The Commissioner of 
     Social Security shall maintain lists which shall be updated 
     periodically of--
       ``(A) the name, address, and (if issued) the social 
     security account number or employer identification number of 
     each representative payee who is receiving benefit payments 
     pursuant to this section, section 205(j), or section 
     1631(a)(2); and
       ``(B) the name, address, and social security account number 
     of each individual for whom each representative payee is 
     reported to be providing services as representative payee 
     pursuant to this section, section 205(j), or section 
     1631(a)(2).
       ``(4) Maintaining lists of agencies.--The Commissioner of 
     Social Security shall maintain lists, which shall be updated 
     periodically, of public agencies and community-based 
     nonprofit social service agencies which are qualified to 
     serve as representative payees pursuant to this section and 
     which are located in the jurisdiction in which any qualified 
     individual resides.
       ``(i) Restitution.--In any case where the negligent failure 
     of the Commissioner of Social Security to investigate or 
     monitor a representative payee results in misuse of benefits 
     by the representative payee, the Commissioner of Social 
     Security shall make payment to the qualified individual or 
     the individual's alternative representative payee of an 
     amount equal to the misused benefits. The Commissioner of 
     Social Security shall make a good faith effort to obtain 
     restitution from the terminated representative payee.

     ``SEC. 808. OVERPAYMENTS AND UNDERPAYMENTS.

       ``(a) In General.--Whenever the Commissioner of Social 
     Security finds that more or less than the correct amount of 
     payment has been made to any person under this title, proper 
     adjustment or recovery shall be made, as follows:
       ``(1) With respect to payment to a person of more than the 
     correct amount, the Commissioner of Social Security shall 
     decrease any payment--
       ``(A) under this title to which the overpaid person (if a 
     qualified individual) is entitled, or shall require the 
     overpaid person or his or her estate to refund the amount in 
     excess of the correct amount, or, if recovery is not obtained 
     under these 2 methods, shall seek or pursue recovery by means 
     of reduction in tax refunds based on notice to the Secretary 
     of the Treasury, as authorized under section 3720A of title 
     31, United States Code; or
       ``(B) under title II to recover the amount in excess of the 
     correct amount, if the person is not currently eligible for 
     payment under this title.
       ``(2) With respect to payment of less than the correct 
     amount to a qualified individual who, at the time the 
     Commissioner of Social Security is prepared to take action 
     with respect to the underpayment--
       ``(A) is living, the Commissioner of Social Security shall 
     make payment to the qualified individual (or the qualified 
     individual's representative payee designated under section 
     807) of the balance of the amount due the underpaid qualified 
     individual; or
       ``(B) is deceased, the balance of the amount due shall 
     revert to the general fund of the Treasury.
       ``(b) No Effect on Title VIII Eligibility or Benefit 
     Amount.--In any case in which the Commissioner of Social 
     Security takes action in accordance with subsection (a)(1)(B) 
     to recover an amount incorrectly paid to an individual, that 
     individual shall not, as a result of such action--
       ``(1) become qualified for benefits under this title; or
       ``(2) if such individual is otherwise so qualified, become 
     qualified for increased benefits under this title.
       ``(c) Waiver of Recovery of Overpayment.--In any case in 
     which more than the correct amount of payment has been made, 
     there shall be no adjustment of payments to, or recovery by 
     the United States from, any person who is without fault if 
     the Commissioner of Social Security determines that the 
     adjustment or recovery would defeat the purpose of this title 
     or would be against equity and good conscience.
       ``(d) Limited Immunity for Disbursing Officers.--A 
     disbursing officer may not be held liable for any amount paid 
     by the officer if the adjustment or recovery of the amount is 
     waived under subsection (b), or adjustment under subsection 
     (a) is not completed before the death of the qualified 
     individual against whose benefits deductions are authorized.
       ``(e) Authorized Collection Practices.--
       ``(1) In general.--With respect to any delinquent amount, 
     the Commissioner of Social Security may use the collection 
     practices described in sections 3711(e), 3716, and 3718 of 
     title 31, United States Code, as in effect on October 1, 
     1994.
       ``(2) Definition.--For purposes of paragraph (1), the term 
     `delinquent amount' means an amount--
       ``(A) in excess of the correct amount of the payment under 
     this title; and
       ``(B) determined by the Commissioner of Social Security to 
     be otherwise unrecoverable under this section from a person 
     who is not a qualified individual under this title.

     ``SEC. 809. HEARINGS AND REVIEW.

       ``(a) Hearings.--
       ``(1) In general.--The Commissioner of Social Security 
     shall make findings of fact and decisions as to the rights of 
     any individual applying for payment under this title. The 
     Commissioner of Social Security shall provide reasonable 
     notice and opportunity for a hearing to any individual who is 
     or claims to be a qualified individual and is in disagreement 
     with any determination under this title with respect to 
     entitlement to, or the amount of, benefits under this title, 
     if the individual requests a hearing on the matter in 
     disagreement within 60 days after notice of the determination 
     is received, and, if a hearing is held, shall, on the basis 
     of evidence adduced at the hearing affirm, modify, or reverse 
     the Commissioner of Social Security's findings of fact and 
     the decision. The Commissioner of Social Security may, on the 
     Commissioner of Social Security's own motion, hold such 
     hearings and conduct such investigations and other 
     proceedings as the Commissioner of Social Security deems 
     necessary or proper for the administration of this title. In 
     the course of any hearing, investigation, or other 
     proceeding, the Commissioner may administer oaths and 
     affirmations, examine witnesses, and receive evidence. 
     Evidence may be received at any hearing before the 
     Commissioner of Social Security even though inadmissible 
     under the rules of evidence applicable to court procedure. 
     The Commissioner of Social Security shall specifically take 
     into account any physical, mental, educational, or linguistic 
     limitation of the individual (including any lack of facility 
     with the English language) in determining, with respect to 
     the entitlement of the individual for benefits under this 
     title, whether the individual acted in good faith or was at 
     fault, and in determining fraud, deception, or intent.
       ``(2) Effect of failure to timely request review.--A 
     failure to timely request review of an initial adverse 
     determination with respect to an application for any payment 
     under this title or an adverse determination on 
     reconsideration of such an initial determination shall not 
     serve as a basis for denial of a subsequent application for 
     any payment under this title if the applicant demonstrates 
     that the applicant failed to so request such a review acting 
     in good faith reliance upon incorrect, incomplete, or 
     misleading information, relating to the consequences of 
     reapplying for payments in lieu of seeking review of an 
     adverse determination, provided by any officer or employee of 
     the Social Security Administration.
       ``(3) Notice requirements.--In any notice of an adverse 
     determination with respect to which a review may be requested 
     under paragraph (1), the Commissioner of Social Security 
     shall describe in clear and specific language the effect on 
     possible entitlement to benefits under this title of choosing 
     to reapply in lieu of requesting review of the determination.
       ``(b) Judicial Review.--The final determination of the 
     Commissioner of Social Security after a hearing under 
     subsection (a)(1) shall be subject to judicial review as 
     provided in section 205(g) to the same extent as the 
     Commissioner of Social Security's final determinations under 
     section 205.

     ``SEC. 810. OTHER ADMINISTRATIVE PROVISIONS.

       ``(a) Regulations and Administrative Arrangements.--The 
     Commissioner of Social Security may prescribe such 
     regulations, and

[[Page 31135]]

     make such administrative and other arrangements, as may be 
     necessary or appropriate to carry out this title.
       ``(b) Payment of Benefits.--Benefits under this title shall 
     be paid at such time or times and in such installments as the 
     Commissioner of Social Security determines are in the 
     interests of economy and efficiency.
       ``(c) Entitlement Redeterminations.--An individual's 
     entitlement to benefits under this title, and the amount of 
     the benefits, may be redetermined at such time or times as 
     the Commissioner of Social Security determines to be 
     appropriate.
       ``(d) Suspension and Termination of Benefits.--Regulations 
     prescribed by the Commissioner of Social Security under 
     subsection (a) may provide for the suspension and termination 
     of entitlement to benefits under this title as the 
     Commissioner determines is appropriate.

     ``SEC. 811. PENALTIES FOR FRAUD.

       ``(a) In General.--Whoever--
       ``(1) knowingly and willfully makes or causes to be made 
     any false statement or representation of a material fact in 
     an application for benefits under this title;
       ``(2) at any time knowingly and willfully makes or causes 
     to be made any false statement or representation of a 
     material fact for use in determining any right to the 
     benefits;
       ``(3) having knowledge of the occurrence of any event 
     affecting--
       ``(A) his or her initial or continued right to the 
     benefits; or
       ``(B) the initial or continued right to the benefits of any 
     other individual in whose behalf he or she has applied for or 
     is receiving the benefit,
     conceals or fails to disclose the event with an intent 
     fraudulently to secure the benefit either in a greater amount 
     or quantity than is due or when no such benefit is 
     authorized; or
       ``(4) having made application to receive any such benefit 
     for the use and benefit of another and having received it, 
     knowingly and willfully converts the benefit or any part 
     thereof to a use other than for the use and benefit of the 
     other individual,
     shall be fined under title 18, United States Code, imprisoned 
     not more than 5 years, or both.
       ``(b) Restitution by Representative Payee.--If a person or 
     organization violates subsection (a) in the person's or 
     organization's role as, or in applying to become, a 
     representative payee under section 807 on behalf of a 
     qualified individual, and the violation includes a willful 
     misuse of funds by the person or entity, the court may also 
     require that full or partial restitution of funds be made to 
     the qualified individual.

     ``SEC. 812. DEFINITIONS.

       ``In this title:
       ``(1) World war ii veteran.--The term `World War II 
     veteran' means a person who--
       ``(A) served during World War II--
       ``(i) in the active military, naval, or air service of the 
     United States during World War II; or
       ``(ii) in the organized military forces of the Government 
     of the Commonwealth of the Philippines, while the forces were 
     in the service of the Armed Forces of the United States 
     pursuant to the military order of the President dated July 
     26, 1941, including among the military forces organized 
     guerrilla forces under commanders appointed, designated, or 
     subsequently recognized by the Commander in Chief, Southwest 
     Pacific Area, or other competent authority in the Army of the 
     United States, in any case in which the service was rendered 
     before December 31, 1946; and
       ``(B) was discharged or released therefrom under conditions 
     other than dishonorable--
       ``(i) after service of 90 days or more; or
       ``(ii) because of a disability or injury incurred or 
     aggravated in the line of active duty.
       ``(2) World war ii.--The term `World War II' means the 
     period beginning on September 16, 1940, and ending on July 
     24, 1947.
       ``(3) Supplemental security income benefit under title 
     xvi.--The term `supplemental security income benefit under 
     title XVI', except as otherwise provided, includes State 
     supplementary payments which are paid by the Commissioner of 
     Social Security pursuant to an agreement under section 
     1616(a) of this Act or section 212(b) of Public Law 93-66.
       ``(4) Federal benefit rate under title xvi.--The term 
     `Federal benefit rate under title XVI' means, with respect to 
     any month, the amount of the supplemental security income 
     cash benefit (not including any State supplementary payment 
     which is paid by the Commissioner of Social Security pursuant 
     to an agreement under section 1616(a) of this Act or section 
     212(b) of Public Law 93-66) payable under title XVI for the 
     month to an eligible individual with no income.
       ``(5) United states.--The term `United States' means, 
     notwithstanding section 1101(a)(1), only the 50 States, the 
     District of Columbia, and the Commonwealth of the Northern 
     Mariana Islands.
       ``(6) Benefit income.--The term `benefit income' means any 
     recurring payment received by a qualified individual as an 
     annuity, pension, retirement, or disability benefit 
     (including any veterans' compensation or pension, workmen's 
     compensation payment, old-age, survivors, or disability 
     insurance benefit, railroad retirement annuity or pension, 
     and unemployment insurance benefit), but only if a similar 
     payment was received by the individual from the same (or a 
     related) source during the 12-month period preceding the 
     month in which the individual files an application for 
     benefits under this title.

     ``SEC. 813. APPROPRIATIONS.

       ``There are hereby appropriated for fiscal year 2000 and 
     subsequent fiscal years, out of any funds in the Treasury not 
     otherwise appropriated, such sums as may be necessary to 
     carry out this title.''.
       (b) Conforming Amendments.--
       (1) Social security trust funds lae account.--Section 
     201(g) of such Act (42 U.S.C. 401(g)) is amended--
       (A) in the fourth sentence of paragraph (1)(A), by 
     inserting after ``this title,'' the following: ``title 
     VIII,'';
       (B) in paragraph (1)(B)(i)(I), by inserting after ``this 
     title,'' the following: ``title VIII,''; and
       (C) in paragraph (1)(C)(i), by inserting after ``this 
     title,'' the following: ``title VIII,''.
       (2) Representative payee provisions of title ii.--Section 
     205(j) of such Act (42 U.S.C. 405(j)) is amended--
       (A) in paragraph (1)(A), by inserting ``807 or'' before 
     ``1631(a)(2)'';
       (B) in paragraph (2)(B)(i)(I), by inserting ``, title 
     VIII,'' before ``or title XVI'';
       (C) in paragraph (2)(B)(i)(III), by inserting ``, 811,'' 
     before ``or 1632'';
       (D) in paragraph (2)(B)(i)(IV)--
       (i) by inserting ``, the designation of such person as a 
     representative payee has been revoked pursuant to section 
     807(a),'' before ``or payment of benefits''; and
       (ii) by inserting ``, title VIII,'' before ``or title 
     XVI'';
       (E) in paragraph (2)(B)(ii)(I)--
       (i) by inserting ``whose designation as a representative 
     payee has been revoked pursuant to section 807(a),'' before 
     ``or with respect to whom''; and
       (ii) by inserting ``, title VIII,'' before ``or title 
     XVI'';
       (F) in paragraph (2)(B)(ii)(II), by inserting ``, 811,'' 
     before ``or 1632'';
       (G) in paragraph (2)(C)(i)(II), by inserting ``, the 
     designation of such person as a representative payee has been 
     revoked pursuant to section 807(a),'' before ``or payment of 
     benefits'';
       (H) in each of clauses (i) and (ii) of paragraph (3)(E), by 
     inserting ``, section 807,'' before ``or section 
     1631(a)(2)'';
       (I) in paragraph (3)(F), by inserting ``807 or'' before 
     ``1631(a)(2)''; and
       (J) in paragraph (4)(B)(i), by inserting ``807 or'' before 
     ``1631(a)(2)''.
       (3) Withholding for child support and alimony 
     obligations.--Section 459(h)(1)(A) of such Act (42 U.S.C. 
     659(h)(1)(A)) is amended--
       (A) at the end of clause (iii), by striking ``and'';
       (B) at the end of clause (iv), by striking ``but'' and 
     inserting ``and''; and
       (C) by adding at the end a new clause as follows:
       ``(v) special benefits for certain World War II veterans 
     payable under title VIII; but''.
       (4) Social security advisory board.--Section 703(b) of such 
     Act (42 U.S.C. 903(b)) is amended by striking ``title II'' 
     and inserting ``title II, the program of special benefits for 
     certain World War II veterans under title VIII,''.
       (5) Delivery of checks.--Section 708 of such Act (42 U.S.C. 
     908) is amended--
       (A) in subsection (a), by striking ``title II'' and 
     inserting ``title II, title VIII,''; and
       (B) in subsection (b), by striking ``title II'' and 
     inserting ``title II, title VIII,''.
       (6) Civil monetary penalties.--Section 1129 of such Act (42 
     U.S.C. 1320a-8) is amended--
       (A) in the title, by striking ``II'' and inserting ``II, 
     VIII'';
       (B) in subsection (a)(1)--
       (i) by striking ``or'' at the end of subparagraph (A);
       (ii) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (iii) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) benefits or payments under title VIII, or'';
       (C) in subsection (a)(2), by inserting ``or title VIII,'' 
     after ``title II'';
       (D) in subsection (e)(1)(C)--
       (i) by striking ``or'' at the end of clause (i);
       (ii) by redesignating clause (ii) as clause (iii); and
       (iii) by inserting after clause (i) the following new 
     clause:
       ``(ii) by decrease of any payment under title VIII to which 
     the person is entitled, or'';
       (E) in subsection (e)(2)(B), by striking ``title XVI'' and 
     inserting ``title VIII or XVI''; and
       (F) in subsection (l), by striking ``title XVI'' and 
     inserting ``title VIII or XVI''.
       (7) Recovery of ssi overpayments.--Section 1147 of such Act 
     (42 U.S.C. 1320b-17) is amended--
       (A) in subsection (a)(1)--
       (i) by inserting ``or VIII'' after ``title II'' the first 
     place it appears; and
       (ii) by striking ``title II'' the second place it appears 
     and inserting ``such title''; and
       (B) in the heading, by striking ``social security'' and 
     inserting ``other''.

[[Page 31136]]

       (8) Recovery of social security overpayments.--Part A of 
     title XI of the Social Security Act is amended by inserting 
     after section 1147 (42 U.S.C. 1320b-17) the following new 
     section:


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

       ``Sec. 1147A. Whenever the Commissioner of Social Security 
     determines that more than the correct amount of any payment 
     has been made under title II to an individual who is not 
     currently receiving benefits under that title but who is 
     receiving benefits under title VIII, the Commissioner may 
     recover the amount incorrectly paid under title II by 
     decreasing any amount which is payable to the individual 
     under title VIII.''.
       (9) Representative payee provisions of title xvi.--Section 
     1631(a)(2) of such Act (42 U.S.C. 1383(a)(2)) is amended--
       (A) in subparagraph (A)(iii), by inserting ``or 807'' after 
     ``205(j)(1)'';
       (B) in subparagraph (B)(ii)(I), by inserting ``, title 
     VIII,'' before ``or this title'';
       (C) in subparagraph (B)(ii)(III), by inserting ``, 811,'' 
     before ``or 1632'';
       (D) in subparagraph (B)(ii)(IV)--
       (i) by inserting ``whether the designation of such person 
     as a representative payee has been revoked pursuant to 
     section 807(a),'' before ``and whether certification''; and
       (ii) by inserting ``, title VIII,'' before ``or this 
     title'';
       (E) in subparagraph (B)(iii)(II), by inserting ``the 
     designation of such person as a representative payee has been 
     revoked pursuant to section 807(a),'' before ``or 
     certification''; and
       (F) in subparagraph (D)(ii)(II)(aa), by inserting ``or 
     807'' after ``205(j)(4)''.
       (10) Administrative offset.--Section 3716(c)(3)(C) of title 
     31, United States Code, is amended--
       (A) by striking ``sections 205(b)(1)'' and inserting 
     ``sections 205(b)(1), 809(a)(1),''; and
       (B) by striking ``either title II'' and inserting ``title 
     II, VIII,''.
                           Subtitle C--Study

     SEC. 261. STUDY OF DENIAL OF SSI BENEFITS FOR FAMILY FARMERS.

       (a) In General.--The Commissioner of Social Security shall 
     conduct a study of the reasons why family farmers with 
     resources of less than $100,000 are denied supplemental 
     security income benefits under title XVI of the Social 
     Security Act, including whether the deeming process unduly 
     burdens and discriminates against family farmers who do not 
     institutionalize a disabled dependent, and shall determine 
     the number of such farmers who have been denied such benefits 
     during each of the preceding 10 years.
       (b) Report to the Congress.--Within 1 year after the date 
     of the enactment of this Act, the Commissioner of Social 
     Security shall prepare and submit to the Committee on Ways 
     and Means of the House of Representatives and the Committee 
     on Finance of the Senate a report that contains the results 
     of the study, and the determination, required by subsection 
     (a).
                        TITLE III--CHILD SUPPORT

     SEC. 301. NARROWING OF HOLD-HARMLESS PROVISION FOR STATE 
                   SHARE OF DISTRIBUTION OF COLLECTED CHILD 
                   SUPPORT.

       (a) In General.--Section 457(d) of the Social Security Act 
     (42 U.S.C. 657(d)) is amended to read as follows:
       ``(d) Hold Harmless Provision.--If--
       ``(1) the State share of amounts collected in the fiscal 
     year which could be retained to reimburse the State for 
     amounts paid to families as assistance by the State is less 
     than the State share of such amounts collected in fiscal year 
     1995 (determined in accordance with section 457 as in effect 
     on August 21, 1996); and
       ``(2)(A) the State has distributed to families that include 
     an adult receiving assistance under the program under part A 
     at least 80 percent of the current support payments collected 
     during the preceding fiscal year on behalf of such families, 
     and the amounts distributed were disregarded in determining 
     the amount or type of assistance provided under the program 
     under part A; or
       ``(B) the State has distributed to families that formerly 
     received assistance under the program under part A the State 
     share of the amounts collected pursuant to section 464 that 
     could have been retained as reimbursement for assistance paid 
     to such families,
     then the State share otherwise determined for the fiscal year 
     shall be increased by an amount equal to \1/2\ of the amount 
     (if any) by which the State share for fiscal year 1995 
     exceeds the State share for the fiscal year (determined 
     without regard to this subsection).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be effective with respect to calendar quarters 
     occurring during the period that begins on October 1, 1998, 
     and ends on September 30, 2001.
       (c) Repeal.--Effective October 1, 2001, section 457 of the 
     Social Security Act (42 U.S.C. 657) is amended--
       (1) in subsection (a), by striking ``subsections (e) and 
     (f)'' and inserting ``subsections (d) and (e)'';
       (2) by striking subsection (d);
       (3) in subsection (e), by striking the second sentence; and
       (4) by redesignating subsections (e) and (f) as subsections 
     (d) and (e), respectively.
                    TITLE IV--TECHNICAL CORRECTIONS

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

       (a) Section 402(a)(1)(B)(iv) of the Social Security Act (42 
     U.S.C. 602(a)(1)(B)(iv)) is amended by striking ``Act'' and 
     inserting ``section''.
       (b) Section 409(a)(7)(B)(i)(II) of the Social Security Act 
     (42 U.S.C. 609(a)(7)(B)(i)(II)) is amended by striking 
     ``part'' and inserting ``section''.
       (c) Section 413(g)(1) of the Social Security Act (42 U.S.C. 
     613(g)(1)) is amended by striking ``Act'' and inserting 
     ``section''.
       (d) Section 416 of the Social Security Act (42 U.S.C. 616) 
     is amended by striking ``Opportunity Act'' and inserting 
     ``Opportunity Reconciliation Act'' each place such term 
     appears.
       (e) Section 431(a)(6) of the Social Security Act (42 U.S.C. 
     629a(a)(6))) is amended--
       (1) by inserting ``, as in effect before August 22, 1986'' 
     after ``482(i)(5)''; and
       (2) by inserting ``, as so in effect'' after 
     ``482(i)(7)(A)''.
       (f) Sections 452(a)(7) and 466(c)(2)(A)(i) of the Social 
     Security Act (42 U.S.C. 652(a)(7) and 666(c)(2)(A)(i)) are 
     each amended by striking ``Social Security'' and inserting 
     ``social security''.
       (g) Section 454 of the Social Security Act (42 U.S.C. 654) 
     is amended--
       (1) by striking ``, or'' at the end of each of paragraphs 
     (6)(E)(i) and (19)(B)(i) and inserting ``; or'';
       (2) in paragraph (9), by striking the comma at the end of 
     each of subparagraphs (A), (B), and (C) and inserting a 
     semicolon; and
       (3) by striking ``, and'' at the end of each of paragraphs 
     (19)(A) and (24)(A) and inserting ``; and''.
       (h) Section 454(24)(B) of the Social Security Act (42 
     U.S.C. 654(24)(B)) is amended by striking ``Opportunity Act'' 
     and inserting ``Opportunity Reconciliation Act''.
       (i) Section 344(b)(1)(A) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (Public Law 104-
     193; 110 Stat. 2236) is amended to read as follows:
       ``(A) in paragraph (1), by striking subparagraph (B) and 
     inserting the following:
       `(B) equal to the percent specified in paragraph (3) of the 
     sums expended during such quarter that are attributable to 
     the planning, design, development, installation or 
     enhancement of an automatic data processing and information 
     retrieval system (including in such sums the full cost of the 
     hardware components of such system); and'; and''.
       (j) Section 457(a)(2)(B)(i)(I) of the Social Security Act 
     (42 U.S.C. 657(a)(2)(B)(i)(I)) is amended by striking ``Act 
     Reconciliation'' and inserting ``Reconciliation Act''.
       (k) Section 457 of the Social Security Act (42 U.S.C. 657) 
     is amended by striking ``Opportunity Act'' each place it 
     appears and inserting ``Opportunity Reconciliation Act''.
       (l) Effective on the date of the enactment of this Act, 
     section 404(e) of the Social Security Act (42 U.S.C. 604(e)) 
     is amended by inserting ``or tribe'' after ``State'' the 
     first and second places it appears, and by inserting ``or 
     tribal'' after ``State'' the third place it appears.
       (m) Section 466(a)(7)(A) of the Social Security Act (42 
     U.S.C. 666(a)(7)(A)) is amended by striking ``1681a(f))'' and 
     inserting ``1681a(f)))''.
       (n) Section 466(b)(6)(A) of the Social Security Act (42 
     U.S.C. 666(b)(6)(A)) is amended by striking ``state'' and 
     inserting ``State''.
       (o) Section 471(a)(8) of the Social Security Act (42 U.S.C. 
     671(a)(8)) is amended by striking ``(including activities 
     under part F)''.
       (p) Section 1137(a)(3) of the Social Security Act (42 
     U.S.C. 1320b-7(a)(3)) is amended by striking 
     ``453A(a)(2)(B)(iii))'' and inserting 
     ``453A(a)(2)(B)(ii)))''.
       (q) Except as provided in subsection (l), the amendments 
     made by this section shall take effect as if included in the 
     enactment of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
     2105).

                          ____________________