Title I, SEC. 1374. GENERAL PROVISIONS RELATING TO APPLICATION PROCESS. (a) Distribution of Applications. Each regional alliance shall distribute applications under this subpart directly to consumers and through employers, banks, and designated public agencies. (b) To Whom Application Made. Applications under this subpart shall be filed, by person or mail, with a regional alliance or an agency designated by the State for this purpose. The application may be submitted with an application to enroll with a health plan under this subtitle or separately. (c) Income Statement. Each application shall include a declaration of estimated annual income for the year involved. (d) Form and Contents. An application for a discount or reduction under this subpart shall be in a form and manner specified by the Secretary and shall require the provision of information necessary to make the determinations required under this subpart. (e) Frequency of Applications. (1) In general. An application under this subpart may be filed at any time during the year (including, in the case of section 1373, during the reconciliation process). (2) Correction of income. Nothing in paragraph (1) shall be construed as preventing an individual or family from, at any time, submitting an application to reduce the amount of premium reduction or reduction of liability under this subpart based upon an increase in income from that stated in the previous application. (e) Timing of Reductions and Discounts. (1) In general. Subject to reconciliation under section 1375, premium discounts and cost sharing reductions under this subpart shall be applied to premium payments required (and for expenses incurred) after the date of approval of the application under this subpart. (2) AFDC and ssi recipients. In the case of an AFDC or SSI family, in applying paragraph (1), the date of approval of benefits under the AFDC or SSI program shall be considered the date of approval of an an application under this subpart. (f) Verification. The Secretary shall provide for verification, on a sample basis or other basis, of the information supplied in applications under this part. This verification shall be separate from the reconciliation provided under section 1375. (g) Help in Completing Applications. Each regional alliance shall assist individuals in the filing of applications and income reconciliation statements under this subpart. (h) Penalties for Inaccurate Information. (1) Interest for understatements. Each individual who knowingly understates income reported in an application to a regional alliance under this subpart or otherwise makes a material misrepresentation of information in such an application shall be liable to the alliance for excess payments made based on such understatement or misrepresentation, and for interest on such excess payments at a rate specified by the Secretary. (2) Penalties for misrepresentation. In addition to the liability established under paragraph (1), each individual who knowingly misrepresents material information in an application under this subpart to a regional alliance shall be liable to the State in which the alliance is located for $2,000 or, if greater, three times the excess payments made based on such misrepresentation. The State shall provide for the transfer of a significant portion of such amount to the regional alliance involved.