such individual (or spouse) or any other person
whose income is deemed to be included in such indi-
vidual’s (or spouse’s) income for purposes of this
title as restitution for benefits under this title, title
II, or title VIII that a representative payee of such
individual (or spouse) or such other person under
section 205(j), 807, or 1631(a)(2) has misused.’’.
(3) MISUSE OF BENEFITS DEFINED.—Section
1631(a)(2)(A) 
of 
such 
Act 
(42
U.S.C. 1383(a)(2)(A)) is amended by adding at the
end the following new clause:
‘‘(iv) For purposes of this paragraph, misuse of bene-
fits by a representative payee occurs in any case in which
the representative payee receives payment under this title
for the use and benefit of another person and converts
such payment, or any part thereof, to a use other than
for the use and benefit of such other person. The Com-
missioner of Social Security may prescribe by regulation
the meaning of the term ‘use and benefit’ for purposes
of this clause.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to any case of benefit misuse by
a representative payee with respect to which the Commis-
sioner makes the determination of misuse on or after Jan-
uary 1, 1995.
SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES.
(a) CERTIFICATION OF BONDING AND LICENSING
REQUIREMENTS
FOR
NONGOVERNMENTAL
ORGANIZA-
TIONAL REPRESENTATIVE PAYEES.—
(1) TITLE II AMENDMENTS.—Section 205(j) of
the Social Security Act (42 U.S.C. 405(j)) is
amended—
(A) in paragraph (2)(C)(v), by striking ‘‘a
community-based nonprofit social service agen-
cy licensed or bonded by the State’’ in sub-
clause (I) and inserting ‘‘a certified community-
based nonprofit social service agency (as de-
fined in paragraph (9))’’;
(B) in paragraph (3)(F), by striking ‘‘com-
munity-based nonprofit social service agencies’’
and inserting ‘‘certified community-based non-
profit social service agencies (as defined in
paragraph (9))’’;
(C) 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 (9))’’; and
(D) by adding after paragraph (8) (as
added by section 101(a)(2) of this Act) the fol-
lowing new paragraph:
‘‘(9) For purposes of this subsection, the term ‘cer-
tified community-based nonprofit social service agency’
means a community based nonprofit social service agency
which is in compliance with requirements, under regula-
tions which shall be prescribed by the Commissioner, for
annual certification to the Commissioner that it is bonded
in accordance with requirements specified by the Commis-
sioner and that it is licensed in each State in which it
serves as a representative payee (if licensing is available
in such State) in accordance with requirements 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 certifi-
cation.’’.
(2) 
TITLE
XVI
AMENDMENTS.—Section
1631(a)(2) of such Act (42 U.S.C. 1383(a)(2)) is
amended—
(A) in subparagraph (B)(vii), by striking
‘‘a community-based nonprofit social service
agency licensed or bonded by the State’’ in sub-
clause (I) and inserting ‘‘a certified community-
based nonprofit social service agency (as de-
fined in subparagraph (I))’’;
(B) in subparagraph (D)(ii)—
(i) by striking ‘‘or any community-
based’’ and all that follows through ‘‘in ac-
cordance’’ in subclause (II) and inserting
‘‘or any certified community-based non-
profit social service agency (as defined in
subparagraph (I)), if the agency, in ac-
cordance’’;
(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)’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(I) For purposes of this paragraph, the term ‘cer-
tified community-based nonprofit social service agency’
means a community based nonprofit social service agency
which is in compliance with requirements, under regula-
tions which shall be prescribed by the Commissioner, for
annual certification to the Commissioner that it is bonded
in accordance with requirements specified by the Commis-
sioner and that it is licensed in each State in which it
serves as a representative payee (if licensing is available
in the State) in accordance with requirements specified by
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) In addition to such other reviews of rep-
resentative payees as the Commissioner of Social Security
may otherwise conduct, the Commissioner shall provide for
the periodic onsite review of any person or agency located
in the United States that receives the benefits payable
under this title (alone or in combination with benefits pay-
able 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—
‘‘(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) PERIODIC ONSITE REVIEW.—(1) In addition to
such other reviews of representative payees as the Com-
missioner of Social Security may otherwise conduct, the
Commissioner may 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 pay-
able under title II or title XVI) to another individual pur-
suant to the appointment of such person or agency as a
representative payee under this section, section 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) and of any other reviews
of representative payees conducted during such fiscal year
in connection with benefits under this title. Each such re-
port 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) In addition to such other reviews of rep-
resentative payees as the Commissioner of Social Security
may otherwise conduct, the Commissioner 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 appointment
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) and of any other reviews of
representative payees conducted during such fiscal year in
connection with benefits under this title. Each such report
shall describe in detail all problems identified in the re-
views and any corrective action taken or planned to be
taken to correct 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