viduals who are beneficiaries under title II, title
XVI, title VIII, or any combination of such titles;
misuses all or part of an individual’s benefit paid to such
representative payee, the Commissioner of Social Security
shall make payment to the beneficiary or the beneficiary’s
alternative representative payee of an amount equal to the
amount of such benefit so misused. The provisions of this
subparagraph are subject to the limitations of subpara-
graph (F)(ii).’’.
(c) EFFECTIVE DATE.—The preceding amendments
made by this section shall apply to any case of benefit
misuse by a representative payee with respect to which the
Commissioner makes the determination of misuse after
the date of the enactment of the Omnibus Budget Rec-
onciliation Act of 1990 (Public Law 101–501).
(d) TECHNICAL AMENDMENT.—Section 205(j) of the
Social Security Act (42 U.S.C. 405(j)) is amended by
striking paragraph (6).
SEC. 202. OVERSIGHT OF NONGOVERNMENTAL ORGANIZA-
TIONAL REPRESENTATIVE PAYEES.
(a) CERTIFICATION OF BONDING AND LICENSING
REQUIREMENTS.—
(1) OASDI AMENDMENT.—Section 205(j) of
the Social Security Act (42 U.S.C. 405(j)) is
amended—
(A) in paragraph (2)(C)(v)—
(i) by striking ‘‘a community-based
nonprofit social service agency licensed or
bonded by the State’’ in subclause (I) and
inserting ‘‘a certified community-based
nonprofit social service agency; and
(ii) by adding at the end the fol-
lowing: ‘‘For purposes of subclause (I), the
term ‘certified community-based nonprofit
social service agency’ means a community
based nonprofit social service agency which
is in compliance with requirements, under
regulations which shall be prescribed by
the Commissioner, for annual certification
to the Commissioner that it is bonded in
accordance with requirements specified by
the Commissioner and that it is licensed in
each State in which it serves as a rep-
resentative payee (if licensing is available
in such State in accordance with require-
ments specified by the Commissioner). Any
such annual certification shall include a
copy of any independent audit on such
agency which may have been performed
since the previous certification.’’; and
(B) in paragraph (4)(B), by striking ‘‘any
community-based nonprofit social service agen-
cy which is bonded or licensed in each State in
which it serves as a representative payee’’ and
inserting ‘‘any certified community-based non-
profit social service agency (as defined in para-
graph (2)(C)(v))’’.
(2) SSI AMENDMENT.—Section 1631(a)(2) of
such Act (42 U.S.C. 1383(a)(2)) is amended—
(A) in subparagraph (B)(vii)—
(i) by striking ‘‘a community-based
nonprofit social service agency licensed or
bonded by the State’’ in subclause (I) and
inserting ‘‘a certified community-based
nonprofit social service agency’’; and
(ii) by adding at the end the fol-
lowing: ‘‘For purposes of subclause (I), the
term ‘certified community-based nonprofit
social service agency’ means a community
based nonprofit social service agency which
is in compliance with requirements, under
regulations which shall be prescribed by
the Commissioner, for annual certification
to the Commissioner that it is bonded in
accordance with requirements specified by
the Commissioner and that it is licensed in
each State in which it serves as a rep-
resentative payee (if licensing is available
in such State in accordance with require-
ments specified by the Commissioner). Any
such annual certification shall include a
copy of any independent audit on such
agency which may have been performed
since the previous certification.’’; and
(B) in subparagraph (D)(ii)—
(i) by striking ‘‘or any community-
based’’ and all that follows down through
‘‘in accordance’’ in subclause (II) and in-
serting ‘‘or any certified community-based
nonprofit social service agency (as defined
in subparagraph (B)(vii)), if such agency,
in accordance’’;
(ii) by redesignating items (aa) and
(bb) as subclauses (I) and (II), respectively
(and adjusting the margination accord-
ingly); and
(iii) by striking ‘‘subclause (II)(bb)’’
and inserting ‘‘subclause (II)’’.
(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) OASDI AMENDMENT.—Section 205(j)(4) of
such Act (42 U.S.C. 405(j)(4)) is amended by add-
ing at the end the following new subparagraph:
‘‘(D) The Commissioner of Social Security shall pro-
vide by regulation for the periodic onsite inspection of
community-based nonprofit social service agencies serving
as representative payees under this subsection.’’.
(2) SSI AMENDMENT.—Section 1631(a)(2)(D)
of such Act (42 U.S.C. 1383(a)(2)(D)) is amended
by adding at the end the following new clause:
‘‘(v) The Commissioner of Social Security shall pro-
vide by regulation for the periodic onsite inspection of
community-based nonprofit social service agencies serving
as representative payees under this paragraph.’’.
SEC. 203. DISQUALIFICATION FROM SERVICE AS REP-
RESENTATIVE PAYEE UPON CONVICTION OF
OFFENSES PUNISHABLE BY IMPRISONMENT
FOR MORE THAN 1 YEAR.
(a) OASDI AMENDMENT.—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 (V); and
(C) by inserting after subclause (III) the
following new subclause:
‘‘(IV) determine whether such person has been
convicted of any other offense punishable under Fed-
eral or State law by imprisonment for more than 1
year (regardless of the actual sentence imposed),
and’’; and
(2) in subparagraph (C)(i), by adding after and
below subclause (III) the following new sentence:
‘‘Benefits of an individual may not be certified for pay-
ment to any other person pursuant to this subsection if
such person has previously been convicted as described in
subparagraph (B)(i)(IV), unless the Commissioner deter-
mines that such certification would be appropriate not-
withstanding such conviction.’’.
(b) SSI AMENDMENT.—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 (V); and
(C) by inserting after subclause (III) the
following new subclause:
‘‘(IV) determine whether such person has been
convicted of any other offense punishable under Fed-
eral or State law by imprisonment for more than 1
year (regardless of the actual sentence imposed),
and’’; and
(2) in clause (iii), by adding after and below
subclause (III) the following new sentence:
‘‘Benefits of an individual may not be paid to any other
person pursuant to subparagraph (A)(ii) if such person
has previously been convicted as described in clause
(ii)(IV), unless the Commissioner determines that such
certification would be appropriate notwithstanding such
conviction.’’.
(c) 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. 204. FEE FORFEITURE IN CASE OF BENEFIT MISUSE
BY REPRESENTATIVE PAYEES.
(a) OASDI AMENDMENT.—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) by inserting before the second sentence the
following new sentence: ‘‘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 competent jurisdiction
has determined that the organization misused all or
part of the individual’s benefit, and any amount so
collected by the qualified organization for such
month shall be treated as a misused part of the indi-
vidual’s benefit for purposes of paragraphs (5) and
(6).’’.
(b) SSI AMENDMENT.—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) by inserting before the second sentence the
following new sentence: ‘‘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 competent jurisdiction
has determined that the organization misused all or
part of the individual’s benefit, and any amount so
collected by the qualified organization for such
month shall be treated as a misused part of the indi-
vidual’s benefit for purposes of subparagraphs (E)
and (F).’’.
(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, 1999.
SEC. 205. LIABILITY OF REPRESENTATIVE PAYEES FOR
MISUSED BENEFITS.
(a) OASDI AMENDMENT.—Section 205(j) of the So-
cial Security Act (42 U.S.C. 405(j)) is amended by redes-
ignating paragraphs (6) and (7) as paragraphs (7) and
(8), respectively, and inserting after paragraph (5) the fol-
lowing new paragraph:
‘‘(6)(A) If the Commissioner of Social Security or a
court of competent jurisdiction determines that a rep-
resentative payee that is not a State or local government
agency has misused all or part of an individual’s benefit
that was paid to such representative payee under this sub-
section, the representative payee shall be liable for the
amount misused, and such amount (to the extent not re-
paid 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 the individual’s alternative representative payee.
‘‘(B) The total of the amount certified for payment
to such individual or the individual’s alternative represent-
ative payee under subparagraph (A) and the amount cer-
tified for payment under paragraph (5) may not exceed
the total benefit amount misused by the representative
payee with respect to such individual.’’.
(b) SSI AMENDMENT.—Section 1631(a)(2) of such
Act (42 U.S.C. 1383(a)(2)) is amended by redesignating
subparagraphs (F), (G), and (H) as subparagraphs (G),
(H), and (I), respectively, and inserting after subpara-
graph (E) the following new subparagraph:
‘‘(F)(i) If the Commissioner of Social Security or a
court of competent jurisdiction determines that a rep-
resentative payee that is not a State or local government
agency has misused all or part of an individual’s benefit
that was paid to such representative payee under this
paragraph, the representative payee shall be liable for the
amount misused, and such amount (to the extent not re-
paid 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 clause (ii), 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 the individual’s alternative representative payee.
‘‘(ii) The total of the amount paid to such individual
or the individual’s alternative representative payee under
clause (i) and the amount paid under subparagraph (E)
may not exceed the total benefit amount misused by the
representative payee with respect to such individual.’’.
(c) 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, 1999.