USE OF NATIONAL DIRECTORY OF NEW HIRES FOR INCOME VERIFICATION PURPOSES FOR CERTAIN VETERANS BENEFITS.

SEC. 301. USE OF NATIONAL DIRECTORY OF NEW HIRES FOR INCOME VERIFICATION PURPOSES FOR CERTAIN VETERANS BENEFITS.(a) Authority for Information Comparisons and Disclosures of Information to Assist in Administration of Certain Veterans Benefits.—Section 453(j) of the Social Security Act (42 U.S.C. 653(j)) is amended by adding at the end the following new paragraph:“(11) Information comparisons and disclosures to assist in administration of certain veterans benefits.—“(A) Furnishing of information by secretary of veterans affairs.—Subject to the provisions of this paragraph, the Secretary of Veterans Affairs shall furnish to the Secretary, on such periodic basis as determined by the Secretary of Veterans Affairs in consultation with the 121 STAT. 1834 Secretary, information in the custody of the Secretary of Veterans Affairs for comparison with information in the National Directory of New Hires, in order to obtain information in such Directory with respect to individuals who are applying for or receiving—“(i) needs-based pension benefits provided under chapter 15 of title 38, United States Code, or under any other law administered by the Secretary of Veterans Affairs;“(ii) parents’ dependency and indemnity compensation provided under section 1315 of title 38, United States Code;“(iii) health care services furnished under subsections (a)(2)(G), (a)(3), or (b) of section 1710 of title 38, United States Code; or“(iv) compensation paid under chapter 11 of title 38, United States Code, at the 100 percent rate based solely on unemployability and without regard to the fact that the disability or disabilities are not rated as 100 percent disabling under the rating schedule.“(B) Requirement to seek minimum information.—The Secretary of Veterans Affairs shall seek information pursuant to this paragraph only to the extent necessary to verify the employment and income of individuals described in subparagraph (A).“(C) Duties of the secretary.—“(i) Information disclosure.—The Secretary, in cooperation with the Secretary of Veterans Affairs, shall compare information in the National Directory of New Hires with information provided by the Secretary of Veterans Affairs with respect to individuals described in subparagraph (A), and shall disclose information in such Directory regarding such individuals to the Secretary of Veterans Affairs, in accordance with this paragraph, for the purposes specified in this paragraph.“(ii) Condition on disclosure.—The Secretary shall make disclosures in accordance with clause (i) only to the extent that the Secretary determines that such disclosures do not interfere with the effective operation of the program under this part.“(D) Use of information by secretary of veterans affairs.—The Secretary of Veterans Affairs may use information resulting from a data match pursuant to this paragraph only—“(i) for the purposes specified in subparagraph (B); and“(ii) after removal of personal identifiers, to conduct analyses of the employment and income reporting of individuals described in subparagraph (A).“(E) Reimbursement of hhs costs.—The Secretary of Veterans Affairs shall reimburse the Secretary, in accordance with subsection (k)(3), for the costs incurred by the Secretary in furnishing the information requested under this paragraph.“(F) Consent.—The Secretary of Veterans Affairs shall not seek, use, or disclose information under this paragraph 121 STAT. 1835 relating to an individual without the prior written consent of such individual (or of a person legally authorized to consent on behalf of such individual).“(G) Expiration of authority.—The authority under this paragraph shall expire on September 30, 2011.”.(b) Amendments to Veterans Affairs Authority.—(1) In general.—Chapter 53 of title 38, United States Code, is amended by inserting after section 5317 the following new section:“§ 5317A. Use of income information from other agencies: independent verification required before termination or reduction of certain benefits and services“(a) Independent Verification Required.—The Secretary may terminate, deny, suspend, or reduce any benefit or service specified in section 5317(c), with respect to an individual under age 65 who is an applicant for or recipient of such a benefit or service, by reason of information obtained from the Secretary of Health and Human Services under section 453(j)(11) of the Social Security Act, only if the Secretary takes appropriate steps to verify independently information relating to the individual’s employment and income from employment.“(b) Opportunity to Contest Findings.—The Secretary shall inform each individual for whom the Secretary terminates, denies, suspends, or reduces any benefit or service under subsection (a) of the findings made by the Secretary under such subsection on the basis of verified information and shall provide to the individual an opportunity to contest such findings in the same manner as applies to other information and findings relating to eligibility for the benefit or service involved.“(c) Source of Funds for Reimbursement to Secretary of Health and Human Services.—The Secretary shall pay the expense of reimbursing the Secretary of Health and Human Services in accordance with section 453(j)(11)(E) of the Social Security Act, for the cost incurred by the Secretary of Health and Human Services in furnishing information requested by the Secretary under section 453(j)(11) of such Act, from amounts available to the Department for the payment of compensation and pensions.“(d) Expiration of Authority.—The authority under this section shall expire on September 30, 2011.” .121 STAT. 1836(2) Clerical amendment.—The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 5317 the following new item: “5317A. Use of income information from other agencies: independent verification required before termination or reduction of certain benefits and services.”.