[House Report 106-199]
[From the U.S. Government Publishing Office]






106th Congress                                                   Report
  1st Session           HOUSE OF REPRESENTATIVES                106-199

======================================================================




 
PROVIDING FOR THE CONSIDERATION OF H.R. 1802, FOSTER CARE INDEPENDENCE 
                              ACT OF 1999

                                _______
                                

   June 24, 1999.--Referred to the House Calendar and ordered to be 
                                printed

                                _______


Ms. Pryce of Ohio, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 221]

    The Committee on Rules, having had under consideration 
House Resolution 221, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                  summary of provisions of resolution

    The resolution provides for the consideration of H.R. 1802, 
the ``Foster Care Independence Act of 1999,'' under a 
structured rule. The rule provides one hour of general debate 
divided equally between the chairman and ranking minority 
member of the Committee on Ways and means. The rule further 
provides 20 minutes of general debate equally divided and 
controlled by the chairman and ranking member of the Committee 
on Commerce.
    The rule waives clause 401(b) of the Congressional Budget 
Act of 1974 (prohibiting consideration of legislation providing 
new entitlement authority which becomes effective during the 
current fiscal year) against consideration of the bill. The 
rule makes in order as an original bill for the purpose of 
amendment the amendment in the nature of a substitute 
recommended by the Committee on Ways and means. The rule also 
waives clause 401(b) of the Congressional Budget Act of 1974 
against consideration of the amendment in the nature of a 
substitute.
    The rule provides for consideration of only the amendments 
printed in this report accompanying the resolution. The rule 
further provides that the amendments will be considered only in 
the order specified in this report, may be offered only by a 
Member designated in this report, shall be considered as read, 
shall be debatable for the time specified in this report 
equally divided and controlled by the proponent and an 
opponent, shall not be subject to amendment and shall not be 
subject to a demand for division of the question. The rule 
waives all points of order against the amendments printed in 
this report.
    Additionally, the rule allows the Chairman of the Committee 
of the whole to postpone votes during consideration of the 
bill, and to reduce voting time to five minutes on a postponed 
question if the vote follows a fifteen minute vote. Finally the 
rule provides one motion to recommit with or without 
instructions.
    The waiver of section 401(b) of the Congressional Budget 
Act of 1974 against consideration of the bill is due to the 
fact that Section 121 of the bill, relating to the state option 
of Medicaid coverage for adolescents leaving foster care, and 
section 251 of the bill, relating to benefits for Filipino 
veterans of World War II, provide new entitlement authority. 
The need for this same waiver against the committee amendment 
in the nature of a substitute is the same as for consideration 
of the bill.
    The waiver of all points of order against the amendments 
printed in this report includes a waiver of section 302 of the 
Congressional Budget Act (prohibiting consideration of 
legislation providing new budget authority in excess of a 
subcommittee's 302(b) allocation of such authority) and section 
401 of the Congressional Budget Act. The Johnson (CT) amendment 
provides new budget authority in excess of the Ways and Means 
Committee's allocation in the budget resolution and provides 
new entitlement authority by expanding SSI benefits to veterans 
of World War II.

   Amendments Made in Order Under the Rule to H.R. 1802--Foster Care 
                        Independence Act of 1999

    Johnson (CT): Makes technical and conforming changes; In 
section 477(b)(3)(A), wording is changed to clarify that 
eligible children are those who have left foster care because 
they reached age 18; Changes wording to clarify that eligible 
children are those who left foster care because they reached 
age 18; In section 477(c)(1), language is inserted to clarify 
that states must be provided a payment to operate their 
Independent Living program that is at least equal to the 
payment under previous law; In section 477(c), a new section is 
added to clarify the procedure by which the Secretary should 
reduce payments to other states to adjust for payments to 
states that receive a hold harmless payment; In section 477(c), 
the Secretary's authority to redistribute funds that are not 
used by states is eliminated; In section 477(d), language is 
inserted to allow states to spend each year's appropriation 
over a 2-year period; A new Subtitle D is added that authorizes 
(but does not appropriate) additional funds to pay adoption 
incentive payments to states that increased their level of 
adoptions in FY 1998; In section 206, a conforming amendment to 
Medicaid law is added to ensure that recipients of Supplemental 
Security Income who lose their benefits because of assets held 
in trust will not automatically lose their Medicaid benefits; 
In section 207, a conforming amendment to Medicaid law is 
included to clarify a section reference; In Title II, Subtitle 
B, extensive amendments are made to the Committee provision; 
the new provision would allow certain veterans of the U.S. 
armed forces in World War II to be eligible for continued SSI 
benefits if they move outside the U.S. (The Committee bill had 
restricted this new benefit to Filipino veterans of World War 
II.); In section 301, the provision that eliminates the hold 
harmless provision in the child support enforcement provision 
is narrowed slightly so that states that share more of their 
child support collections with families are allowed to qualify 
for a partial hold harmless payment. (10 minutes)
    Thompson (CA): Requires States to include in their State 
plan a certification that they adequately train prospective 
foster parents of the child being placed and that such training 
is continued, as necessary, after the placement. (20 minutes)
    Buyer: Requires the Social Security Administration to study 
denials to family farmers with resources of under $100,000 when 
the family chooses to care for a disabled dependent in the 
home. (20 minutes)
    Text of amendments made in order:

1. An Amendment To Be Offered by Representative Johnson of Connecticut, 
                or a Designee, Debatable for 10 Minutes

  In section 1(b) of the bill, in the table of contents, after 
the item relating to section 121, insert the following:

                 Subtitle D--Adoption Incentive Payments

Sec. 131. Increased funding for adoption incentive payments.

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

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

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

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

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

  In section 477(a)(1) of the Social Security Act, as proposed 
to be added by section 101(b) of the bill, strike ``design 
programs that''.

  In section 477(b)(3)(A) of the Social Security Act, as 
proposed to be added by section 101(b) of the bill, strike 
``but'' and insert ``because they have attained 18 years of 
age, and who''.
  In section 477(b)(3)(A) of the Social Security Act, as 
proposed to be added by section 101(b) of the bill, strike 
``and have attained 18 years of age but not'' and insert 
``because they have attained 18 years of age, and who have not 
attained''.
  In section 477(c)(1) of the Social Security Act, as proposed 
to be added by section 101(b) of the bill, insert ``, as 
adjusted in accordance with paragraph (2)'' before the period.
  In section 477(c) of the Social Security Act, as proposed to 
be added by section 101(b) of the bill, strike paragraph (2) 
and insert the following:
          ``(2) Hold harmless provision.--
                  ``(A) In general.--The Secretary shall allot 
                to each State whose allotment for a fiscal year 
                under paragraph (1) is less than the amount 
                payable to the State under this section for 
                fiscal year 1998 an additional amount equal to 
                the difference.''.
                  ``(B) Ratable reduction of certain 
                allotments.--In the case of a State not 
                described in subparagraph (A) for a fiscal 
                year, the Secretary shall reduce the amount 
                allotted to the State for the fiscal year under 
                paragraph (1) by the amount that bears the same 
                ratio to the sum of the differences determined 
                under subparagraph (A) for the fiscal year as 
                the amount so alloted bears to the sum of the 
                amounts allotted to all States not so 
                described.
  In section 477(c) of the Social Security Act, as proposed to 
be added by section 101(b) of the bill, strike paragraph (3).
  At the end of section 477(d) of the Social Security Act, as 
proposed to be added by section 101(b) of the bill, add the 
following:
          ``(3) 2-year availability of funds.--Payments made to 
        a State under this section for a fiscal year shall be 
        expended by the State in the fiscal year or in the 
        succeeding fiscal year.''.
  At the end of title I of the bill, insert the following:

                Subtitle D--Adoption Incentive Payments

SEC. 131. INCREASED FUNDING FOR ADOPTION INCENTIVE PAYMENTS.

  (a) Supplemental Grants.--Section 473A of the Social Security 
Act (42 U.S.C. 673b) is amended by adding at the end the 
following:
  ``(j) Supplemental Grants.--
          ``(1) In general.--Subject to the availability of 
        such amounts as may be provided in advance in 
        appropriations Acts, in addition to any amount 
        otherwise payable under this section to any State that 
        is an incentive-eligible State for fiscal year 1998, 
        the Secretary shall make a grant to the State in an 
        amount equal to the lesser of--
                  ``(A) the amount by which--
                          ``(i) the amount that would have been 
                        payable to the State under this section 
                        during fiscal year 1999 (on the basis 
                        of adoptions in fiscal year 1998) in 
                        the absence of subsection (d)(2) if 
                        sufficient funds had been available for 
                        the payment; exceeds
                          ``(ii) the amount that, before the 
                        enactment of this subsection, was 
                        payable to the State under this section 
                        during fiscal year 1999 (on such 
                        basis); or
                  ``(B) the amount that bears the same ratio to 
                the dollar amount specified in paragraph (2) as 
                the amount described by subparagraph (A) for 
                the State bears to the aggregate of the amounts 
                described by subparagraph (A) for all States 
                that are incentive-eligible States for fiscal 
                year 1998.
          ``(2) Funding.--$23,000,000 of the amounts 
        appropriated under subsection (h)(1) for fiscal year 
        2000 may be used for grants under paragraph (1) of this 
        subsection.''.
  (b) Limitation on Authorization of Appropriations.--Section 
473A(h)(1) of the Social Security Act (42 U.S.C. 673b(h)(1)) is 
amended to read as follows:
          ``(1) In general.--For grants under subsection (a), 
        there are authorized to be appropriated to the 
        Secretary--
                  ``(A) $20,000,000 for fiscal year 1999;
                  ``(B) $43,000,000 for fiscal year 2000; and
                  ``(C) $20,000,000 for each of fiscal years 
                2001 through 2003.''.
  In section 206 of the bill, redesignate subsection (c) as 
subsection (d) and insert after subsection (b) the following:
  (c) Conforming Amendments.--Section 1902(a)(10) of the Social 
Security Act (42 U.S.C. 1396a(a)(10)) is amended--
          (1) by striking ``and'' at the end of subparagraph 
        (E);
          (2) by adding ``and'' at the end of subparagraph (F); 
        and
          (3) by inserting after subparagraph (F) the 
        following:
                  ``(G) that, in applying eligibility criteria 
                of the supplemental security income program 
                under title XVI for purposes of determining 
                eligibility for medical assistance under the 
                State plan of an individual who is not 
                receiving supplemental security income, the 
                State will disregard the provisions of section 
                1613(e);''.
  In section 207 of the bill, redesignate subsection (b) as 
subsection (c) and insert after subsection (a) the following:
  (b) Conforming Amendment.--Section 1902(a)(10) of the Social 
Security Act (42 U.S.C. 1396a(a)(10)), as amended by section 
206(c) of this Act, is amended by striking ``section 1613(e)'' 
and inserting ``subsections (c) and (e) of section 1613''.
  Strike subtitle B of title II of the bill and insert the 
following:

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

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

  (a) In General.--The Social Security Act is amended by 
inserting after title VII the following:

    ``TITLE VIII--SPECIAL BENEFITS FOR CERTAIN WORLD WAR II VETERANS

                           ``Table of Contents

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

``SEC. 801. BASIC ENTITLEMENT TO BENEFITS.

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

``SEC. 802. QUALIFIED INDIVIDUALS.

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

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

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

``SEC. 804. DISQUALIFICATIONS.

  ``Notwithstanding section 802, an individual may not be a 
qualified individual for any month--
          ``(1) that begins after the month in which the 
        Commissioner of Social Security is notified by the 
        Attorney General that the individual has been removed 
        from the United States pursuant to section 237(a) of 
        the Immigration and Nationality Act and before the 
        month in which the Commissioner of Social Security is 
        notified by the Attorney General that the individual is 
        lawfully admitted to the United States for permanent 
        residence;
          ``(2) during any part of which the individual is 
        outside the United States due to flight to avoid 
        prosecution, or custody or confinement after 
        conviction, under the laws of the United States or the 
        jurisdiction within the United States from which the 
        person has fled, for a crime, or an attempt to commit a 
        crime, that is a felony under the laws of the place 
        from which the individual has fled, or which, in the 
        case of the State of New Jersey, is a high misdemeanor 
        under the laws of such State;
          ``(3) during any part of which which the individual 
        violates a condition of probation or parole imposed 
        under Federal or State law; or
          ``(4) during any part of which the individual is 
        confined in a jail, prison, or other penal institution 
        or correctional facility pursuant to a conviction of an 
        offense.

``SEC. 805. BENEFIT AMOUNT.

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

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

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

``SEC. 807. REPRESENTATIVE PAYEES.

  ``(a) In General.--If the Commissioner of Social Security 
determines that the interest of any qualified individual under 
this title would be served thereby, payment of the qualified 
individual's benefit under this title may be made, regardless 
of the legal competency or incompetency of the qualified 
individual, either directly to the qualified individual, or for 
his or her benefit, to another person (the meaning of which 
term, for purposes of this section, includes an organization) 
with respect to whom the requirements of subsection (b) have 
been met (in this section referred to as the qualified 
individual's 'representative payee'). If the Commissioner of 
Social Security determines that a representative payee has 
misused any benefit paid to the representative payee pursuant 
to this section, section 205(j), or section 1631(a)(2), the 
Commissioner of Social Security shall promptly revoke the 
person's designation as the qualified individual's 
representative payee under this subsection, and shall make 
payment to an alternative representative payee or, if the 
interest of the qualified individual under this title would be 
served thereby, to the qualified individual.
  ``(b) Examination of Fitness of Prospective Representative 
Payee.--
          ``(1) Any determination under subsection (a) to pay 
        the benefits of a qualified individual to a 
        representative payee shall be made on the basis of--
                  ``(A) an investigation by the Commissioner of 
                Social Security of the person to serve as 
                representative payee, which shall be conducted 
                in advance of the determination and shall, to 
                the extent practicable, include a face-to-face 
                interview with the person (or, in the case of 
                an organization, a representative of the 
                organization); and
                  ``(B) adequate evidence that the arrangement 
                is in the interest of the qualified individual.
          ``(2) As part of the investigation referred to in 
        paragraph (1), the Commissioner of Social Security 
        shall--
                  ``(A) require the person being investigated 
                to submit documented proof of the identity of 
                the person;
                  ``(B) in the case of a person who has a 
                social security account number issued for 
                purposes of the program under title II or an 
                employer identification number issued for 
                purposes of the Internal Revenue Code of 1986, 
                verify the number;
                  ``(C) determine whether the person has been 
                convicted of a violation of section 208, 811, 
                or 1632; and
                  ``(D) determine whether payment of benefits 
                to the person in the capacity as representative 
                payee has been revoked or terminated pursuant 
                to this section, section 205(j), or section 
                1631(a)(2)(A)(iii) by reason of misuse of funds 
                paid as benefits under this title, title II, or 
                title XVI, respectively.
  ``(c) Requirement for Centralized File.--The Commissioner of 
Social Security shall establish and maintain a centralized 
file, which shall be updated periodically and which shall be in 
a form that renders it readily retrievable by each servicing 
office of the Social Security Administration. The file shall 
consist of--
          ``(1) a list of the names and social security account 
        numbers or employer identification numbers (if issued) 
        of all persons with respect to whom, in the capacity of 
        representative payee, the payment of benefits has been 
        revoked or terminated under this section, section 
        205(j), or section 1631(a)(2)(A)(iii) by reason of 
        misuse of funds paid as benefits under this title, 
        title II, or title XVI, respectively; and
          ``(2) a list of the names and social security account 
        numbers or employer identification numbers (if issued) 
        of all persons who have been convicted of a violation 
        of section 208, 811, or 1632.
  ``(d) Persons Ineligible To Serve as Representative Payees.--
          ``(1) In general.--The benefits of a qualified 
        individual may not be paid to any other person pursuant 
        to this section if--
                  ``(A) the person has been convicted of a 
                violation of section 208, 811, or 1632;
                  ``(B) except as provided in paragraph (2), 
                payment of benefits to the person in the 
                capacity of representative payee has been 
                revoked or terminated under this section, 
                section 205(j), or section 1631(a)(2)(A)(ii) by 
                reason of misuse of funds paid as benefits 
                under this title, title II, or title XVI, 
                respectively; or
                  ``(C) except as provided in paragraph (2)(B), 
                the person is a creditor of the qualified 
                individual and provides the qualified 
                individual with goods or services for 
                consideration.
          ``(2) Exemptions.--
                  ``(A) The Commissioner of Social Security may 
                prescribe circumstances under which the 
                Commissioner of Social Security may grant an 
                exemption from paragraph (1) to any person on a 
                case-by-case basis if the exemption is in the 
                best interest of the qualified individual whose 
                benefits would be paid to the person pursuant 
                to this section.
                  ``(B) Paragraph (1)(C) shall not apply with 
                respect to any person who is a creditor 
                referred to in such paragraph if the creditor 
                is--
                          ``(i) a relative of the qualified 
                        individual and the relative resides in 
                        the same household as the qualified 
                        individual;
                          ``(ii) a legal guardian or legal 
                        representative of the individual;
                          ``(iii) a facility that is licensed 
                        or certified as a care facility under 
                        the law of the political jurisdiction 
                        in which the qualified individual 
                        resides;
                          ``(iv) a person who is an 
                        administrator, owner, or employee of a 
                        facility referred to in clause (iii), 
                        if the qualified individual resides in 
                        the facility, and the payment to the 
                        facility or the person is made only 
                        after the Commissioner of Social 
                        Security has made a good faith effort 
                        to locate an alternative representative 
                        payee to whom payment would serve the 
                        best interests of the qualified 
                        individual; or
                          ``(v) a person who is determined by 
                        the Commissioner of Social Security, on 
                        the basis of written findings and 
                        pursuant to procedures prescribed by 
                        the Commissioner of Social Security, to 
                        be acceptable to serve as a 
                        representative payee.
                  ``(C) The procedures referred to in 
                subparagraph (B)(v) shall require the person 
                who will serve as representative payee to 
                establish, to the satisfaction of the 
                Commissioner of Social Security, that--
                          ``(i) the person poses no risk to the 
                        qualified individual;
                          ``(ii) the financial relationship of 
                        the person to the qualified individual 
                        poses no substantial conflict of 
                        interest; and
                          ``(iii) no other more suitable 
                        representative payee can be found.
  ``(e) Deferral of Payment Pending Appointment of 
Representative Payee.--
          ``(1) In general.--Subject to paragraph (2), if the 
        Commissioner of Social Security makes a determination 
        described in the first sentence of subsection (a) with 
        respect to any qualified individual's benefit and 
        determines that direct payment of the benefit to the 
        qualified individual would cause substantial harm to 
        the qualified individual, the Commissioner of Social 
        Security may defer (in the case of initial entitlement) 
        or suspend (in the case of existing entitlement) direct 
        payment of the benefit to the qualified individual, 
        until such time as the selection of a representative 
        payee is made pursuant to this section.
          ``(2) Time limitation.--
                  ``(A) In general.--Except as provided in 
                subparagraph (B), any deferral or suspension of 
                direct payment of a benefit pursuant to 
                paragraph (1) shall be for a period of not more 
                than 1 month.
                  ``(B) Exception in the case of 
                incompetency.--Subparagraph (A) shall not apply 
                in any case in which the qualified individual 
                is, as of the date of the Commissioner of 
                Social Security's determination, legally 
                incompetent under the laws of the jurisdiction 
                in which the individual resides.
          ``(3) Payment of retroactive benefits.--Payment of 
        any benefits which are deferred or suspended pending 
        the selection of a representative payee shall be made 
        to the qualified individual or the representative payee 
        as a single sum or over such period of time as the 
        Commissioner of Social Security determines is in the 
        best interest of the qualified individual.
  ``(f) Hearing.--Any qualified individual who is dissatisfied 
with a determination by the Commissioner of Social Security to 
make payment of the qualified individual's benefit to a 
representative payee under subsection (a) of this section or 
with the designation of a particular person to serve as 
representative payee shall be entitled to a hearing by the 
Commissioner of Social Security to the same extent as is 
provided in section 809(a), and to judicial review of the 
Commissioner of Social Security's final decision as is provided 
in section 809(b).
  ``(g) Notice Requirements.--
          ``(1) In general.--In advance of the payment of a 
        qualified individual's benefit to a representative 
        payee under subsection (a), the Commissioner of Social 
        Security shall provide written notice of the 
        Commissioner's initial determination to so make the 
        payment. The notice shall be provided to the qualified 
        individual, except that, if the qualified individual is 
        legally incompetent, then the notice shall be provided 
        solely to the legal guardian or legal representative of 
        the qualified individual.
          ``(2) Specific requirements.--Any notice required by 
        paragraph (1) shall be clearly written in language that 
        is easily understandable to the reader, shall identify 
        the person to be designated as the qualified 
        individual's representative payee, and shall explain to 
        the reader the right under subsection (f) of the 
        qualified individual or of the qualified individual's 
        legal guardian or legal representative--
                  ``(A) to appeal a determination that a 
                representative payee is necessary for the 
                qualified individual;
                  ``(B) to appeal the designation of a 
                particular person to serve as the 
                representative payee of qualified individual; 
                and
                  ``(C) to review the evidence upon which the 
                designation is based and to submit additional 
                evidence.
  ``(h) Accountability Monitoring.--
          ``(1) In any case where payment under this title is 
        made to a person other than the qualified individual 
        entitled to the payment, the Commissioner of Social 
        Security shall establish a system of accountability 
        monitoring under which the person shall report not less 
        often than annually with respect to the use of the 
        payments. The Commissioner of Social Security shall 
        establish and implement statistically valid procedures 
        for reviewing the reports in order to identify 
        instances in which persons are not properly using the 
        payments.
          ``(2) Special reports.--Notwithstanding paragraph 
        (1), the Commissioner of Social Securitymay require a 
report at any time from any person receiving payments on behalf of a 
qualified individual, if the Commissioner of Social Security has reason 
to believe that the person receiving the payments is misusing the 
payments.
          ``(3) Centralized file.--The Commissioner of Social 
        Security shall maintain a centralized file, which shall 
        be updated periodically and which shall be in a form 
        that is readily retrievable, of--
                  ``(A) the name, address, and (if issued) the 
                social security account number or employer 
                identification number of each representative 
                payee who is receiving benefit payments 
                pursuant to this section, section 205(j), or 
                section 1631(a)(2); and
                  ``(B) the name, address, and social security 
                account number of each individual for whom each 
                representative payee is reported to be 
                providing services as representative payee 
                pursuant to this section, section 205(j), or 
                section 1631(a)(2).
          ``(4) The Commissioner of Social Security shall 
        maintain a list, which shall be updated periodically, 
        of public agencies and community-based nonprofit social 
        service agencies which are qualified to serve as 
        representative payees pursuant to this section and 
        which are located in the jurisdiction in which any 
        qualified individual resides.
  ``(i) Restitution.--In any case where the negligent failure 
of the Commissioner of Social Security to investigate or 
monitor a representative payee results in misuse of benefits by 
the representative payee, the Commissioner of Social Security 
shall make payment to the qualified individual or the 
individual's alternative representative payee of an amount 
equal to the misused benefits. The Commissioner of Social 
Security shall make a good faith effort to obtain restitution 
from the terminated representative payee.

``SEC. 808. OVERPAYMENTS AND UNDERPAYMENTS.

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

``SEC. 809. HEARINGS AND REVIEW.

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

``SEC. 810. OTHER ADMINISTRATIVE PROVISIONS.

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

``SEC. 811. PENALTIES FOR FRAUD.

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

``SEC. 812. DEFINITIONS.

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

``SEC. 813. APPROPRIATIONS.

  ``There are hereby appropriated for fiscal year 2001 and 
subsequent fiscal years such sums as may be necessary to carry 
out this title.''.
  (b) Conforming Amendments.--
          (1) Social security trust funds lae account.--Section 
        201(g) of such Act (42 U.S.C. 401(g)) is amended--
                  (A) in the 4th sentence of paragraph (1)(A), 
                by inserting after ``this title,'' the 
                following: ``title VIII,'';
                  (B) in paragraph (1)(B)(i)(I), by inserting 
                after ``this title,'' the following: ``title 
                VIII,''; and
                  (C) in paragraph (1)(C)(i), by inserting 
                after ``this title,'' the following: ``title 
                VIII,''.
          (2) Representative payee provisions of title ii.--
        Section 205(j) of such Act (42 U.S.C. 405(j)) is 
        amended--
                  (A) in paragraph (1)(A), by inserting ``807 
                or'' before ``1631(a)(2)'';
                  (B) in paragraph (2)(B)(i)(I), by inserting 
                ``, title VIII,'' before ``or title XVI'';
                  (C) in paragraph (2)(B)(i)(III), by inserting 
                ``, 811,'' before ``or 1632'';
                  (D) in paragraph (2)(B)(i)(IV)--
                          (i) by inserting ``, the designation 
                        of such person as a representative 
                        payee has been revoked pursuant to 
                        section 807(a),'' before ``or payment 
                        of benefits''; and
                          (ii) by inserting ``, title VIII,'' 
                        before ``or title XVI'';
                  (E) in paragraph (2)(B)(ii)(I)--
                          (i) by inserting ``whose designation 
                        as a representative payee has been 
                        revoked pursuant to section 807(a),'' 
                        before ``or with respect to whom''; and
                          (ii) by inserting ``, title VIII,'' 
                        before ``or title XVI'';
                  (F) in paragraph (2)(B)(i)(II), by inserting 
                ``, 811,'' before ``or 1632'';
                  (G) in paragraph (2)(C)(i)(II) by inserting 
                ``, the designation of such person as a 
                representative payee has been revoked pursuant 
                to section 807(a),'' before ``or payment of 
                benefits'';
                  (H) in each of clauses (i) and (ii) of 
                paragraph (3)(E), by inserting ``, section 
                807,'' before ``or section 1631(a)(2)'';
                  (I) in paragraph (3)(F), by inserting ``807 
                or'' before ``1631(a)(2)''; and
                  (J) in paragraph (4)(B)(i), by inserting 
                ``807 or'' before ``1631(a)(2)''.
          (3) Withholding for child support and alimony 
        obligations.--Section 459(h)(1)(A) of such Act (42 
        U.S.C. 659(h)(1)(A)) is amended--
                  (A) at the end of clause (iii), by striking 
                ``and'';
                  (B) at the end of clause (iv), by striking 
                ``but'' and inserting ``and''; and
                  (C) by adding at the end a new clause as 
                follows:
                          ``(v) special benefits for certain 
                        World War II veterans payable under 
                        title VIII; but''.
          (4) Social security advisory board.--Section 703(b) 
        of such Act (42 U.S.C. 903(b)) is amended by striking 
        ``title II'' and inserting ``title II, the program of 
        special benefits for certain World War II veterans 
        under title VIII,''.
          (5) Delivery of checks.--Section 708 of such Act (42 
        U.S.C. 908) is amended--
                  (A) in subsection (a), by striking ``title 
                II'' and inserting ``title II, title VIII,''; 
                and
                  (B) in subsection (b), by striking ``title 
                II'' and inserting ``title II, title VIII,''.
          (6) Civil monetary penalties.--Section 1129 of such 
        Act (42 U.S.C. 1320a-8) is amended--
                  (A) in the title, by striking ``II'' and 
                inserting ``II, VIII'';
                  (B) in subsection (a)(1)--
                          (i) by striking ``or'' at the end of 
                        subparagraph (A);
                          (ii) by redesignating subparagraph 
                        (B) as subparagraph (C); and
                          (iii) by inserting after subparagraph 
                        (A) the following:
                  ``(B) benefits or payments under title VIII, 
                or'';
                  (C) in subsection (a)(2), by inserting ``or 
                title VIII,'' after ``title II'';
                  (D) in subsection (e)(1)(C)--
                          (i) by striking ``or'' at the end of 
                        clause (i);
                          (ii) by redesignating clause (ii) as 
                        clause (iii); and
                          (iii) by inserting after clause (i) 
                        the following:
                          ``(ii) by decrease of any payment 
                        under title VIII to which the person is 
                        entitled, or'';
                  (E) in subsection (e)(2)(B), by striking 
                ``title XVI'' and inserting ``title VIII or 
                XVI''; and
                  (F) in subsection (l), by striking ``title 
                XVI'' and inserting ``title VIII or XVI''.
          (7) Recovery of ssi overpayments.--Section 1147 of 
        such Act (42 U.S.C. 1320b-17) is amended--
                  (A) in subsection (a)(1)--
                          (i) by inserting ``or VIII'' after 
                        ``title II'' the first place it 
                        appears; and
                          (ii) by striking ``title II'' the 
                        second place it appears and inserting 
                        ``such title''; and
                  (B) in the title, by striking ``social 
                security'' and inserting ``other''.
          (8) Representative payee provisions of title xvi.--
        Section 1631(a)(2) of such Act (42 U.S.C. 1383(a)(2)) 
        is amended--
                  (A) in subparagraph (A)(iii), by inserting 
                ``or 807'' after ``205(j)(1)'';
                  (B) in subparagraph (B)(ii)(I), by inserting 
                ``, title VIII,'' before ``or this title'';
                  (C) in subparagraph (B)(ii)(III), by 
                inserting ``, 811,'' before ``or 1632'';
                  (D) in subparagraph (B)(ii)(IV)--
                          (i) by inserting ``whether the 
                        designation of such person as a 
                        representative payee has been revoked 
                        pursuant to section 807(a),'' before 
                        ``and whether certification''; and
                          (ii) by inserting ``, title VIII,'' 
                        before ``or this title'';
                  (E) in subparagraph (B)(iii)(II), by 
                inserting ``the designation of such person as a 
                representative payee has been revoked pursuant 
                to section 807(a),'' before ``or 
                certification''; and
                  (F) in subparagraph (D)(ii)(II)(aa), by 
                inserting ``or 807'' after ``205(j)(4)''.
          (9) Administrative offset.--Section 3716(c)(3)(C) of 
        title 31, United States Code, is amended--
                  (A) by striking ``sections 205(b)(1)'' and 
                inserting ``sections 205(b)(1), 809(a)(1),''; 
                and
                  (B) by striking ``either title II'' and 
                inserting ``title II, VIII,''.
  Strike section 301 of the bill and insert the following:

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

  (a) In General.--Section 457(d) of the Social Security Act 
(42 U.S.C. 657(d)) is amended to read as follows:
  ``(d) Hold Harmless Provision.--If--
          ``(1) the amounts collected which could be retained 
        by the State in the fiscal year (to the extent 
        necessary to reimburse the State for amounts paid to 
        families as assistance by the State) are less than the 
        State share of the amounts collected in fiscal year 
        1995 (determined in accordance with section 457 as in 
        effect on the day before the date of the enactment of 
        the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996); and
          ``(2)(A)(i) the State has not retained any of the 
        current support so collected during the preceding 
        fiscal year on behalf of any family that is a recipient 
        of assistance under the State program funded under part 
        A (except any such family in a control group required 
        by a waiver granted to the State under section 1115); 
        and
          ``(ii) at least the lesser of $150 or the total 
        amount of current support paid to such a family in any 
        month is disregarded in determining the amount or type 
        of assistance to be provided to the family for the 
        month under the State program funded under part A; or
          ``(B) the State has distributed to families not less 
        than \1/2\ of the child support arrearages collected 
        pursuant to section 464 during the preceding fiscal 
        year, that accrued after the families ceased to receive 
        assistance from the State (as defined in subsection 
        (c)(1)),
then the State share otherwise determined for the fiscal year 
shall be increased by an amount equal to \1/2\ of the amount 
(if any) by which the State share in fiscal year 1995 exceeds 
the State share for the fiscal year (determined without regard 
to this subsection).''.
  (b) Authority of State to Pass Through Portion of Child 
Support Arrearages Collected Through Tax Intercept.--Section 
457(a)(2)(B)(iv) of such Act (42 U.S.C. 657(a)(2)(B)(iv)) is 
amended in the first sentence by inserting after the 2nd 
sentence the following: ``After making such payment, the State 
may distrbute to the family not more than \1/2\ of the 
remaining amount so retained.''.
  (c) Effective Date.--The amendment made by subsection (a) 
shall be effective with respect to calendar quarters beginning 
on or after October 1, 1998.
  (d) Repealer.--Effective October 1, 2001, section 457 of the 
Social Security Act (42 U.S.C. 657) is amended by striking 
subsection (d).
                              ----------                              


2. An Amendment To Be Offered by Representative Thompson of California, 
                or a Designee, Debatable for 20 Minutes

  In section 1(b) of the bill, in the table of contents, after 
the item relating to section 111, insert the following:

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

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

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

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


3. An Amendment To Be Considered by Representative Buyer of Indiana, or 
                  a Designee, Debatable for 20 minutes

  In section 1(b), in the table of contents, after the item 
relating to section 251, insert the following:

                            Subtitle C--Study

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

  At the end of title II, insert the following:

                           Subtitle C--Study

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

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

                                

