the Commissioner. Any such annual certification shall in-
clude a copy of any independent audit on the agency which
may have been performed since the previous certifi-
cation.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on the first day
of the thirteenth month beginning after the date of
the enactment of this Act.
(b) PERIODIC ONSITE REVIEW.—
(1) TITLE II AMENDMENT.—Section 205(j)(6)
of such Act (42 U.S.C. 405(j)(6)) is amended to
read as follows:
‘‘(6)(A) The Commissioner of Social Security shall
provide for the periodic onsite review of any person or
agency that receives the benefits payable under this title
(alone or in combination with benefits payable under title
VIII or title XVI) to another individual pursuant to the
appointment of such person or agency as a representative
payee under this subsection, section 807, or section
1631(a)(2) in any case in which—
‘‘(i) the representative payee is a person who
serves in that capacity with respect to 15 or more
such individuals;
‘‘(ii) the representative payee is a certified com-
munity-based nonprofit social service agency (as de-
fined in paragraph (9) of this subsection or section
1631(a)(2)(I)); or
‘‘(iii) the representative payee is an agency
(other than an agency described in clause (ii)) that
serves in that capacity with respect to 50 or more
such individuals.
‘‘(B) Within 120 days after the end of each fiscal
year, the Commissioner shall submit to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a report on the re-
sults of periodic onsite reviews conducted during the fiscal
year pursuant to subparagraph (A). Each such report
shall describe in detail all problems identified in such re-
views and any corrective action taken or planned to be
taken to correct such problems, and shall include—
‘‘(i) the number of such reviews,
‘‘(ii) the results of such reviews,
‘‘(iii) the number of cases in which the rep-
resentative payee was changed and why,
‘‘(iv) the number of cases involving the exercise
of expedited, targeted oversight of the representative
payee by the Commissioner conducted upon receipt
of an allegation of misuse of funds, failure to pay a
vendor, or a similar irregularity,
‘‘(v) the number of cases discovered in which
there was a misuse of funds,
‘‘(vi) how any such cases of misuse of funds
were dealt with by the Commissioner,
‘‘(vii) the final disposition of such cases of mis-
use of funds, including any criminal penalties im-
posed, and
‘‘(viii) such other information as the Commis-
sioner deems appropriate.’’.
(2) TITLE VIII AMENDMENT.—Section 807 of
such Act (as amended by section 101(b)(2) of this
Act) is amended further by adding at the end the
following new subsection:
‘‘(k)(1) PERIODIC ONSITE REVIEW.—The Commis-
sioner of Social Security may provide for the periodic on-
site review of any person or agency that receives the bene-
fits payable under this title (alone or in combination with
benefits payable under title II or title XVI) to another in-
dividual pursuant to the appointment of such person or
agency as a representative payee under this section, sec-
tion 205(j), or section 1631(a)(2) in any case in which—
‘‘(A) the representative payee is a person who
serves in that capacity with respect to 15 or more
such individuals; or
‘‘(B) the representative payee is an agency that
serves in that capacity with respect to 50 or more
such individuals.
‘‘(2) Within 120 days after the end of each fiscal
year, the Commissioner shall submit to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a report on the re-
sults of periodic onsite reviews conducted during the fiscal
year pursuant to paragraph (1). Each such report shall
describe in detail all problems identified in such reviews
and any corrective action taken or planned to be taken
to correct such problems, and shall include—
‘‘(A) the number of such reviews,
‘‘(B) the results of such reviews,
‘‘(C) the number of cases in which the rep-
resentative payee was changed and why,
‘‘(D) the number of cases involving the exercise
of expedited, targeted oversight of the representative
payee by the Commissioner conducted upon receipt
of an allegation of misuse of funds, failure to pay a
vendor, or a similar irregularity,
‘‘(E) the number of cases discovered in which
there was a misuse of funds,
‘‘(F) how any such cases of misuse of funds
were dealt with by the Commissioner,
‘‘(G) the final disposition of such cases of mis-
use of funds, including any criminal penalties im-
posed, and
‘‘(H) such other information as the Commis-
sioner deems appropriate.’’.
(3) 
TITLE
XVI
AMENDMENT.—Section
1631(a)(2)(G) 
of 
such 
Act 
(42
U.S.C. 1383(a)(2)(G)) is amended to read as fol-
lows:
‘‘(G)(i) The Commissioner of Social Security shall
provide for the periodic onsite review of any person or
agency that receives the benefits payable under this title
(alone or in combination with benefits payable under title
II or title VIII) to another individual pursuant to the ap-
pointment of the person or agency as a representative
payee under this paragraph, section 205(j), or section 807
in any case in which—
‘‘(I) the representative payee is a person who
serves in that capacity with respect to 15 or more
such individuals;
‘‘(II) the representative payee is a certified
community-based nonprofit social service agency (as
defined in subparagraph (I) of this paragraph or
section 205(j)(9)); or
‘‘(III) the representative payee is an agency
(other than an agency described in subclause (II))
that serves in that capacity with respect to 50 or
more such individuals.
‘‘(ii) Within 120 days after the end of each fiscal
year, the Commissioner shall submit to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a report on the re-
sults of periodic onsite reviews conducted during the fiscal
year pursuant to clause (i). Each such report shall de-
scribe in detail all problems identified in the reviews and
any corrective action taken or planned to be taken to cor-
rect the problems, and shall include—
‘‘(I) the number of the reviews,
‘‘(II) the results of such reviews,
‘‘(III) the number of cases in which the rep-
resentative payee was changed and why,
‘‘(IV) the number of cases involving the exercise
of expedited, targeted oversight of the representative
payee by the Commissioner conducted upon receipt
of an allegation of misuse of funds, failure to pay a
vendor, or a similar irregularity,
‘‘(V) the number of cases discovered in which
there was a misuse of funds,
‘‘(VI) how any such cases of misuse of funds
were dealt with by the Commissioner,
‘‘(VII) the final disposition of such cases of
misuse of funds, including any criminal penalties im-
posed, and
‘‘(VIII) such other information as the Commis-
sioner deems appropriate.’’.
SEC. 103. DISQUALIFICATION FROM SERVICE AS REP-
RESENTATIVE PAYEE UPON CONVICTION OF
OFFENSES RESULTING IN IMPRISONMENT
FOR MORE THAN 1 YEAR AND UPON FUGI-
TIVE FELON STATUS.
(a) TITLE II AMENDMENTS.—Section 205(j)(2) of
the Social Security Act (42 U.S.C. 405(j)(2)) is
amended—
(1) in subparagraph (B)(i)—
(A) by striking ‘‘and’’ at the end of sub-
clause (III);
(B) by redesignating subclause (IV) as
subclause (VI); and
(C) by inserting after subclause (III) the
following new subclauses:
‘‘(IV) obtain information concerning whether
such person has been convicted of any other offense
under Federal or State law which resulted in impris-
onment for more than 1 year,
‘‘(V) obtain information concerning whether
such person is a fugitive felon as described in section
1611(e)(4), and’’.
(2) in subparagraph (C)(i)(II), by striking
‘‘subparagraph (B)(i)(IV),,’’ and inserting ‘‘subpara-
graph 
(B)(i)(VI)’’ 
and 
striking 
‘‘section
1631(a)(2)(B)(ii)(IV)’’ 
and 
inserting 
‘‘section
1631(a)(2)(B)(ii)(VI)’’; and
(3) in subparagraph (C)(i)—
(A) by striking ‘‘or’’ at the end of sub-
clause (II);
(B) by striking the period at the end of
subclause (III) and inserting a comma; and
(C) by adding at the end the following new
subclauses:
‘‘(IV) such person has previously been convicted
as described in subparagraph (B)(i)(IV), unless the
Commissioner determines that such certification
would be appropriate notwithstanding such convic-
tion, or
‘‘(V) such person is in fugitive felon status as
described in section 1611(e)(4).’’.
(b) TITLE VIII AMENDMENTS.—Section 807 of such
Act (42 U.S.C. 1007) is amended—
(1) in subsection (b)(2)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (C);
(B) by redesignating subparagraph (D) as
subparagraph (F); and
(C) by inserting after subparagraph (C)
the following new subparagraphs:
‘‘(D) obtain information concerning wheth-
er such person has been convicted of any other
offense under a law of the United States or of
any State of the United States which resulted
in imprisonment for more than 1 year;
‘‘(E) obtain information concerning wheth-
er such person is a fugitive felon as described
in section 1611(e)(4); and’’; and
(2) in subsection (d)(1)—
(A) by striking ‘‘or’’ at the end of subpara-
graph (B);
(B) by striking the period at the end of
subparagraph (C) and inserting a semicolon;
and
(C) by adding at the end the following new
subparagraphs:
‘‘(D) such person has previously been con-
victed as described in subsection (b)(2)(D), un-
less the Commissioner determines that such
payment would be appropriate notwithstanding
such conviction; or
‘‘(E) such person is in fugitive felon status
as described in section 1611(e)(4).’’.
(c) 
TITLE
XVI 
AMENDMENTS.—Section
1631(a)(2)(B) of such Act (42 U.S.C. 1383(a)(2)(B)) is
amended—
(1) in clause (ii)—
(A) by striking ‘‘and’’ at the end of sub-
clause (III);
(B) by redesignating subclause (IV) as
subclause (VI); and
(C) by inserting after subclause (III) the
following new subclauses:
‘‘(IV) obtain information concerning whether
the person has been convicted of any other offense
under Federal or State law which resulted in impris-
onment for more than 1 year;
‘‘(V) obtain information concerning whether
such person is a fugitive felon as described in section
1611(e)(4); and’’;
(2) in clause (iii)(II)—
(A) by striking ‘‘clause (ii)(IV)’’ and in-
serting ‘‘clause (ii)(VI)’’; and
(B) 
by 
striking 
‘‘section
205(j)(2)(B)(i)(IV)’’ and inserting ‘‘section
205(j)(2)(B)(i)(VI)’’; and
(3) in clause (iii)—
(A) by striking ‘‘or’’ at the end of sub-
clause (II);
(B) by striking the period at the end of
subclause (III) and inserting a semicolon; and
(C) by adding at the end the following new
subclauses:
‘‘(IV) if the person has previously been con-
victed as described in clause (ii)(IV) of this subpara-
graph, unless the Commissioner determines that the
payment would be appropriate notwithstanding the
conviction; or
‘‘(V) such person is in fugitive felon status as
described in section 1611(e)(4).’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the first day of the thir-
teenth month beginning after the date of the enactment
of this Act.
SEC. 104. FEE FORFEITURE IN CASE OF BENEFIT MISUSE
BY REPRESENTATIVE PAYEES.
(a) TITLE II AMENDMENTS.—Section 205(j)(4)(A)(i)
of the Social Security Act (42 U.S.C. 405(j)(4)(A)(i)) is
amended—
(1) in the first sentence, by striking ‘‘A’’ and
inserting ‘‘Except as provided in the next sentence,
a’’; and
(2) in the second sentence, by striking ‘‘The
Secretary’’ and inserting the following:
‘‘A qualified organization may not collect a fee from an
individual for any month with respect to which the Com-
missioner of Social Security or a court of competent juris-
diction has determined that the organization misused all
or part of the individual’s benefit, and any amount so col-
lected by the qualified organization for such month shall
be treated as a misused part of the individual’s benefit
for purposes of paragraphs (5) and (6). The Commis-
sioner’’.
(b) 
TITLE
XVI 
AMENDMENTS.—Section
1631(a)(2)(D)(i) 
of 
such 
Act 
(42
U.S.C. 1383(a)(2)(D)(i)) is amended—
(1) in the first sentence, by striking ‘‘A’’ and
inserting ‘‘Except as provided in the next sentence,
a’’; and
(2) in the second sentence, by striking ‘‘The
Commissioner’’ and inserting the following: ‘‘A
qualified organization may not collect a fee from an
individual for any month with respect to which the
Commissioner of Social Security or a court of com-
petent jurisdiction has determined that the organiza-
tion misused all or part of the individual’s benefit,
and any amount so collected by the qualified organi-
zation for such month shall be treated as a misused
part of the individual’s benefit for purposes of sub-
paragraphs (E) and (F). The Commissioner’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to any month involving benefit mis-
use by a representative payee in any case with respect to
which the Commissioner makes the determination of mis-
use after December 31, 2002.
SEC. 105. LIABILITY OF REPRESENTATIVE PAYEES FOR
MISUSED BENEFITS.
(a) TITLE II AMENDMENTS.—Section 205(j) of the
Social Security Act (42 U.S.C. 405(j)) (as amended by
sections 101 and 102 of this Act) is amended further—
(1) by redesignating paragraphs (7), (8), and
(9) as paragraphs (8), (9), and (10), respectively;
(2) in paragraphs (2)(C)(v), (3)(F), and (4)(B),
by striking ‘‘paragraph (9)’’ and inserting ‘‘para-
graph (10)’’;
(3) in paragraph (6)(A)(ii), by striking ‘‘para-
graph (9)’’ and inserting ‘‘paragraph (10)’’; and
(4) by inserting after paragraph (6) the fol-
lowing new paragraph:
‘‘(7)(A) If the Commissioner of Social Security or a
court of competent jurisdiction determines that a rep-
resentative payee that is not a Federal, State, or local gov-
ernment agency has misused all or part of an individual’s
benefit that was paid to such representative payee under
this subsection, the representative payee shall be liable for
the amount misused, and such amount (to the extent not
repaid by the representative payee) shall be treated as an
overpayment of benefits under this title to the representa-
tive payee for all purposes of this Act and related laws
pertaining to the recovery of such overpayments. Subject
to subparagraph (B), upon recovering all or any part of
such amount, the Commissioner shall certify an amount
equal to the recovered amount for payment to such indi-
vidual or such individual’s alternative representative
payee.
‘‘(B) The total of the amount certified for payment
to such individual or such individual’s alternative rep-
resentative payee under subparagraph (A) of this para-
graph and the amount certified for payment under para-
graph (5) may not exceed the total benefit amount mis-
used by the representative payee with respect to such indi-
vidual.’’.
(b) TITLE VIII AMENDMENT.—Section 807 of such
Act (as amended by section 102(b)(2)) is amended further
by adding at the end the following new subsection:
‘‘(l) LIABILITY FOR MISUSED AMOUNTS.—
‘‘(1) IN GENERAL.—If the Commissioner of So-
cial Security or a court of competent jurisdiction de-
termines that a representative payee that is not a
Federal, State, or local government agency has mis-
used all or part of an individual’s benefit that was
paid to such representative payee under this section,
the representative payee shall be liable for the
amount misused, and such amount (to the extent
not repaid by the representative payee) shall be
treated as an overpayment of benefits under this
title to the representative payee for all purposes of
this Act and related laws pertaining to the recovery
of such overpayments. Subject to paragraph (2),
upon recovering all or any part of such amount, the
Commissioner shall make payment of an amount
equal to the recovered amount to such individual or
such individual’s alternative representative payee.
‘‘(2) LIMITATION.—The total of the amount
paid to such individual or such individual’s alter-
native representative payee under paragraph (1) of
this subsection and the amount paid under sub-
section (i) may not exceed the total benefit amount
misused by the representative payee with respect to
such individual.’’.
(c) TITLE XVI AMENDMENTS.—Section 1631(a)(2)
of such Act (42 U.S.C. 1383(a)(2)) (as amended by sec-
tion 102 of this Act) is amended further—
(1) in subparagraph (G)(i)(II), by striking
‘‘paragraph (9)’’ and inserting ‘‘paragraph (10)’’;
and
(2) by striking subparagraph (H) and inserting
the following:
‘‘(H)(i) If the Commissioner of Social Security or a
court of competent jurisdiction determines that a rep-
resentative payee that is not a Federal, State, or local gov-
ernment agency has misused all or part of an individual’s
benefit that was paid to the representative payee under
this paragraph, the representative payee shall be liable for
the amount misused, and the amount (to the extent not
repaid by the representative payee) shall be treated as an
overpayment of benefits under this title to the representa-
tive payee for all purposes of this Act and related laws
pertaining to the recovery of the overpayments. Subject
to clause (ii), upon recovering all or any part of the
amount, the Commissioner shall make payment of an
amount equal to the recovered amount to such individual
or such individual’s alternative representative payee.
‘‘(ii) The total of the amount paid to such individual
or such individual’s alternative representative payee under
clause (i) of this subparagraph and the amount paid under
subparagraph (E) may not exceed the total benefit amount
misused by the representative payee with respect to such
individual.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to benefit misuse by a representa-
tive payee in any case with respect to which the Commis-
sioner makes the determination of misuse after December
31, 2002.
SEC. 106. AUTHORITY TO REDIRECT DELIVERY OF BENEFIT
PAYMENTS WHEN A REPRESENTATIVE PAYEE
FAILS TO PROVIDE REQUIRED ACCOUNTING.
(a) TITLE II AMENDMENTS.—Section 205(j)(3) of
the Social Security Act (42 U.S.C. 405(j)(3)) is
amended—
(1) by redesignating subparagraphs (E) and
(F) as subparagraphs (F) and (G), respectively; and
(2) by inserting after subparagraph (D) the fol-
lowing new subparagraph:
‘‘(E) In any case in which the person described in
subparagraph (A) or (D) receiving payments on behalf of
another fails to submit a report required by the Commis-
sioner of Social Security under subparagraph (A) or (D),
the Commissioner may, after furnishing notice to such
person and the individual entitled to such payment, re-
quire that such person appear in person at a field office
of the Social Security Administration serving the area in
which the individual resides in order to receive such pay-
ments.’’.
(b) TITLE VIII AMENDMENTS.—Section 807(h) of
such Act (42 U.S.C. 1007(h)) is amended—
(1) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
(2) by inserting after paragraph (2) the fol-
lowing new paragraph:
‘‘(3) AUTHORITY TO REDIRECT DELIVERY OF
BENEFIT
PAYMENTS
WHEN
A
REPRESENTATIVE
PAYEE
FAILS
TO
PROVIDE
REQUIRED
ACCOUNT-
ING.—In any case in which the person described in
paragraph (1) or (2) receiving benefit payments on
behalf of a qualified individual fails to submit a re-
port required by the Commissioner of Social Secu-
rity under paragraph (1) or (2), the Commissioner
may, after furnishing notice to such person and the
qualified individual, require that such person appear
in person at a United States Government facility
designated by the Social Security Administration as
serving the area in which the qualified individual re-
sides in order to receive such benefit payments.’’.
(c) 
TITLE
XVI 
AMENDMENT.—Section
1631(a)(2)(C) of such Act (42 U.S.C. 1383(a)(2)(C)) is
amended by adding at the end the following new clause:
‘‘(v) In any case in which the person described in
clause (i) or (iv) receiving payments on behalf of another
fails to submit a report required by the Commissioner of
Social Security under clause (i) or (iv), the Commissioner
may, after furnishing notice to the person and the indi-
vidual entitled to the payment, require that such person
appear in person at a field office of the Social Security
Administration serving the area in which the individual
resides in order to receive such payments.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect 180 days after the date of
the enactment of this Act.