Can 1099 be issued on h4? Can referral money be paid on h4

If you get 1099-Misc, you must file tax return if the income is more than $400. Also this income is subject to SE tax at 15.3%.
So if some one on H4 gets 1099-Misc, he/she must follow the tax rules.

How you will treat the 1099-Misc income, read: Your U.S. Tax Return: W2 or 1099: Employee or Independent Contractor. (http://taxipay.blogspot.com/2008/03/w2-or-1099-employee-or-independent.html)