A bill to amend the Internal Revenue Code of 1954, title XVI of the Social Security Act, and part A of title IV of such Act to improve asset verification for benefits under the SSI and AFDC programs and to make other improvements in such programs.

(Reported to House from the Committee on Ways and Means with amendment, H. Rept. 98-664)

Title I: Disclosure of Certain Tax Return Information to Federal, State, or Local Agencies Administering Certain Programs Under the Social Security Act; Verification and Use of Information - Amends the Internal Revenue Code to authorize the Secretary of the Treasury, upon written request, to disclose return information with respect to unearned income to any officer or employee of any Federal, State, or local agency administering any of the following programs: (1) the Aid to Families with Dependent Children program (part A of title IV of the Social Security Act); (2) Medicaid (title XIX of the Social Security Act); (3) the Supplemental Security Income program (title XVI of the Social Security Act); (4) as applicable to Puerto Rico, Guam, and the Virgin Islands, any benefits provided under titles I (Old Age Assistance and Medical Assistance for the Aged), X (Aid to the Blind), XIV (Aid to the Permanently and Totally Disabled), and XVI of the Social Security Act; and (5) the Food Stamp program. Amends Part A (General Provisions) of title XI of the Social Security Act (the Act) to require any Federal, State, or local agency receiving such information to independently verify such information before making any benefit adjustments. Directs each State agency charged with the administration of a State plan approved under part A of title IV of the Act, title X of the Act, title XIV of the Act, or title XVI of the Act, and the Secretary of Health and Human Services with respect to the SSI program, to request and use any such information obtained from the Secretary of the Treasury for purposes of income and eligibility verification. Requires such information to be used to identify and prevent ineligibility and incorrect payments.

Title II: Improvements In SSI Program - Amends title XVI of the Act to increase the resources limit for single individuals and married couples by $100 and $150, respectively, during each of the next five years.

Provides, under title XVI, that in situations where there has not been fraud in connection with an SSI overpayment, such overpayment shall be recovered through adjustments in future benefits or from the individual in amounts not exceeding the lesser of: (1) the monthly benefit; or (2) an amount equal to ten percent of a beneficiary's monthly income.

Provides that to the extent that an overpayment results because a recipient's resources exceed the applicable limit, such overpayment shall be determined to be the lesser of: (1) the benefits received for which the recipient was ineligible; or (2) the greatest amount by which the total value of the recipient's resources exceeded the applicable limit.

Excludes from resources, for 12 months from the date of receipt, any underpayment amount received in the form of a retroactive check.

Title III: Improvements In AFDC Program - Amends part A of title IV of the Act to revise the gross income limitation. Provides that no family shall be eligible if its income exceeds 130 percent of the poverty line as defined in the Community Services Block Grant Act. (Current law prohibits eligibility if family income exceeds 150 percent the State's standard of need.)

Provides that the $75 monthly work expense deduction shall be applicable to both full and part-time workers.

Repeals the four-month limit on the $30 disregard from earned income.

Requires a State plan to provide that, in any case where a family has ceased to receive aid because of certain increases in income, a monthly transition allowance of $10 shall be paid for at least nine months. Permits former AFDC recipients to reapply for such allowance in certain cases.

States that, for purposes of earned income disregards, an individual's earned income shall be the gross amount of earnings.

Permits the exclusion from resources of burial plots, funeral agreements, and real property which a family is making a good faith effort to sell.

Provides that where a State is unable to provide day care and transportation for community work experience program participants, the State shall directly reimburse participants for such costs.

Permits States to use a monthly reporting and retrospective budgeting system. (Under current law, such a system is mandatory.) Provides Federal matching for State supplementary payments made under a retrospective budgeting system.

Provides for the exclusion from income, for AFDC purposes, of amounts received as an earned income tax credit.

Amends part A (General Provisions) of title XI of the Act to permit any State with an approved AFDC plan to establish and conduct one or more pilot projects to demonstrate the use of integrated service delivery systems for human services programs in that State or in one or more political subdivisions of such State. Requires a pilot project to involve or include: (1) the development of a common set of terms; (2) the development for each applicant of a single comprehensive family profile; (3) the establishment and maintenance of a single resources directory; (4) the development of a unified budget and budgeting process and a unified accounting system; (5) the implementation of unified planning, needs assessment, and evaluation; (6) the consolidation of agency locations and related transportation services; (7) the standardization of procedures for purchasing services from nongovernmental sources; (8) the creation of communications linkages among agencies; (9) the development of uniform application and eligibility determination procedures; and (10) any other methods, arrangements, and procedures consistent with the establishment of an integrated service delivery system. Requires any State desiring to establish and conduct a pilot project to apply to the Secretary. Directs the Secretary to approve a project only if the project will not lower or restrict the levels of aid, assistance, benefits, or services, or the income or resource standards, deductions, or exclusions of any of the human services programs involved. Permits a State with an approved application to request the Secretary to waive any requirement which would otherwise apply with respect to the proposed project under any of the laws governing the human services programs to be included in the project. Sets forth guidelines for approving or disapproving such waiver request. Sets forth guidelines relating to information disclosure. Provides that Federal funding for an approved pilot project shall be: (1) 90 percent for the first 18 months; (2) 80 percent for the following 12 months; and (3) 70 percent for the next 12-month period. Directs the Secretary to report to Congress concerning approved projects. Directs the Comptroller General, through the personnel and facilities of the General Accounting Office, to conduct a study concerning such projects. Authorizes funds to be appropriated for such projects for FY 1985 through 1988.

Authorizes, under regulations prescribed by the Secretary of Health and Human Services, any State which is currently participating in the AFDC program, the Medicaid program, and the food stamp program to apply to the Secretary to establish and conduct a demonstration program to develop ways of improving the delivery of services to needy individuals and families under the three programs by eliminating at least some differences in program requirements and specifications.

Prohibits the approval of more than five applications. Directs the Secretary to approve an application only if the project will not lower or restrict the level of aid, assistance, benefits, services, or the applicable income or resource standards, deductions, or exclusions under the programs. Prohibits a project from lasting more than three years, except that an additional two years may be allowed upon the Secretary's approval. Authorizes each State conducting a demonstration project to adopt, for purposes of the AFDC program, any of the existing rules, procedures, and specifications currently in effect under either or both of the other two programs, with the objective of developing for the three programs: (1) a common set of terms and definitions; (2) uniform application and eligibility determination procedures; (3) a unified budgeting process; (4) a single-family case file; and (5) a common administrative structure that allows for unified planning and evaluation. Requires: (1) each participating State to report to the Secretary; and (2) the Secretary to report to Congress.

Exempts pregnant women in the third trimester of pregnancy from registering for the work incentive program.

Provides that when the maximum number of required hours of work under a community work experience program is computed, child support payments received shall be subtracted from the AFDC payment.

Permits a State to recalculate the period of AFDC ineligibility which occurs when a family receives a nonrecurring lump sum, if the recalculation would promote the purposes and objectives of the AFDC program.

Provides that recovery of an AFDC overpayment need not be attempted if the cost of recovery would equal or exceed the amount of the overpayment.

Provides that when an overpayment occurs due to the ownership or possession of excess resources, the amount of overpayment to be recovered shall be the lesser of: (1) the total amount of benefits that the family received during the period in which resources exceeded the limit; or (2) the greatest amount by which the total value of the resources exceeded the limit at any time during the overpayment period.

Authorizes a State to make protective payments if a parent does not register for work as required, accept suitable employment, or cooperate with child support enforcement efforts.

Suspends sanctions on States based on AFDC error rates for the period beginning October 1, 1983, and ending September 30, 1985.

Provides that any individual who is an alien and whose sponsor was a public or private agency shall be ineligible for AFDC for the three-year period following such alien's entry into the United States, unless the State agency administering the plan determines that the sponsor either no longer exists or has become unable to meet the individual's needs.

Permits the disclosure of certain information concerning an AFDC recipient who is a fugitive felon to a State or local law enforcement officer.

Establishes a payment schedule for the Federal reimbursement of States' back claims for public assistance programs under the Social Security Act.

Provides for an AFDC grant diversion program under which a State may make employment (including on-the-job training) available as an alternative to AFDC otherwise provided. Directs a State, in operating a grant diversion program, to: (1) enter into contracts with public or private employers under which such employers will provide employment for eligible individuals over a period of up to nine months; and (2) pay to each such employer with respect to each individual so employed an amount equal to the lesser of the maximum amount that could have been paid directly to such individual as AFDC at the time of the initial job placement or 50 percent of the individual's wages. States that: (1) wages paid shall be considered to be wages under any provision of law; and (2) any participant shall be considered to be receiving AFDC for purposes of Medicaid eligibility.

Makes permanent AFDC and SSI provisions which exempt in-kind home energy assistance provided by a private nonprofit organization.