REPRESENTATIVE PAYEE REFORMS,

SEC. 5105. REPRESENTATIVE PAYEE REFORMS, (a) Improvements in the Representative Payee Selection and Recruitment Process.— (1) Authority for certification of payments to representative payees.— (A) Title ii.—Section 205(j)(l) (42 U.S.C. 405(j)) is amended to read as follows: “Representative Payees “(j)(1) If the Secretary determines that the interest of any individual under this title would be served thereby, certification of payment of such individual’s benefit under this title may be made, regardless of the legal competency or incompetency of the individual, either for direct payment to the individual, or for his or her use and benefit, to another individual, or an organization, with respect to whom the requirements of paragraph (2) have been met (herein-after in this subsection referred to as the individual’s ‘representative payee’). If the Secretary or a court of competent Jurisdiction determines that a representative payee has misused any individual’s 104 STAT. 1388–255benefit paid to such representative payee pursuant to this subsection or section 1631(a)(2), the Secretary shall promptly revoke certification for payment of benefits to such representative payee pursuant to this subsection and certify payment to an alternative representative payee or to the individual.”. (B) Title xvi.— (i) In general.—Section 1631(a)(2)(A) (42 U.S.C. 1383(a)(2)(A)) is amended to read as follows: “(A) (i) Payments of the benefit of any individual may be made to any such individual or to the eligible spouse (if any) of such individual or partly to each. “(ii) Upon a determination by the Secretary that the interest of such individual would be served thereby, or in the case of any individual or eligible spouse referred to in section 1611(e)(3)(A), such payments shall be made, regardless of the legal competency or incompetency of the individual or eligible spouse, to another individual, or an organization, with respect to whom the requirements of subparagraph (B) have been met (in this paragraph referred to as such individual’s ‘representative payee’) for the use and benefit of the individual or eligible spouse. “(iii) If the Secretary or a court of competent jurisdiction deter-mines that the representative payee of an individual or eligible spouse has misused any benefits which have been paid to the representative payee pursuant to clause (ii) or section 205(j)(l), the Secretary shall promptly terminate payment of benefits to the representative payee pursuant to this subparagraph, and provide for payment of benefits to the individual or eligible spouse or to an alternative representative payee of the individual or eligible spouse.”. (ii) Conforming amendments.—Section 1631(a)(2)(C) (42 U.S.C. 1383(a)(2)(O) is amended— (I) in clause (i), by striking “a person other than the individual or spouse entitled to such payment” and inserting “representative payee of an individual or spouse”; (II) in clauses (ii), (iii), and (iv), by striking “other person to whom such payment is made” each place it appears and inserting “representative payee”; and (III) in clause (v)— (aa) by striking “person receiving payments on behalf of another” and inserting “representative payee”; and (bb) by striking “person receiving such payments” and inserting “representative payee”. (2) Procedure for selecting representative payees.— (A) In general.— (i) Title ii.—Section 205(j)(2) (42 U.S.C. 405(j)(2)) is amended to read as follows: “(2) (A) Any certification made under paragraph (1) for payment of benefits to an individual’s representative payee shall be made on the basis of— “(i) an investigation by the Secretary of the person to serve as representative payee, which shall be conducted in advance of such certification and shall, to the extent practicable, include a face-to-face interview with such person, and 104 STAT. 1388–256 “(ii) adequate evidence that such certification is in the interest of such individual (as determined by the Secretary in regulations). “(B) (i) As part of the investigation referred to in subparagraph (A)(i), the Secretary shall— “(I) require the person being investigated to submit documented proof of the identity of such person, unless information establishing such identity has been submitted with an application for benefits under this title or title XVI, “(II) verify such person’s social security account number (or employer identification number), “(III) determine whether such person has been convicted of a violation of section 208 or 1632, and “(IV) determine whether certification of payment of benefits to such person has been revoked pursuant to this subsection or payment of benefits to such person has been terminated pursuant to section 1631(a)(2)(A)(iii) by reason of misuse of funds paid as benefits under this title or title XVI. “(ii) The Secretary shall establish and maintain a centralized file, which shall be updated periodically and which shall be in a form which renders it readily retrievable by each servicing office of the Social Security Administration. Such file shall consist of— “(I) a list of the names and social security account numbers (or employer identification numbers) of all persons with respect to whom certification of payment of benefits has been revoked on or after January 1, 1991, pursuant to this subsection, or with respect to whom payment of benefits has been terminated on or after such date pursuant to section 1631(a)(2)(A)(iii), by reason of misuse of funds paid as benefits under this title or title XVI, and “(II) a list of the names and social security account numbers (or employer identification numbers) of all persons who have been convicted of a violation of section 208 or 1632. “(C) (i) Benefits of an individual may not be certified for payment to any other person pursuant to this subsection if— “(I) such person has previously been convicted as described in subparagraph (B)(i)(III), “(II) except as provided in clause (ii), certification of payment of benefits to such person under this subsection has previously been revoked as described in subparagraph (B)(i)(IV), or payment of benefits to such person pursuant to section 1631(a)(2)(A)(ii) has previously been terminated as described in section 1631(a)(2)(B)(ii)(IV), or “(III) except as provided in clause (iii), such person is a creditor of such individual who provides such individual with goods or services for consideration. “(ii) The Secretary shall prescribe regulations under which the Secretary may grant exemptions to any person from the provisions of clause (i)(II) on a case-by-case basis if such exemption is in the best interest of the individual whose benefits would be paid to such person pursuant to this subsection. “(iii) Clause (i)(III) shall not apply with respect to any person who is a creditor referred to therein if such creditor is— “(I) a relative of such individual if such relative resides in the same household as such individual, “(II) a legal guardian or legal representative of such individual, 104 STAT. 1388–257 “(III) a facility that is licensed or certified as a care facility under the law of a State or a political subdivision of a State, “(IV) a person who is an administrator, owner, or employee of a facility referred to in subclause (III) if such individual resides in such facility, and the certification of payment to such facility or such person is made only after good faith efforts have been made by the local servicing office of the Social Security Administration to locate an alternative representative payee to whom such certification of payment would serve the best interests of such individual, or “(V) an individual who is determined by the Secretary, on the basis of written findings and under procedures which the Secretary shall prescribe by regulation, to be acceptable to serve as a representative payee. “(iv) The procedures referred to in clause (iii)(V) shall require the individual who will serve as representative payee to establish, to the satisfaction of the Secretary, that— “(I) such individual poses no risk to the beneficiary, “(II) the financial relationship of such individual to the beneficiary poses no substantial conflict of interest, and “(III) no other more suitable representative payee can be found. “(D)(i) Subject to clause (ii), if the Secretary makes a determination described in the first sentence of paragraph (1) with respect to any individual’s benefit and determines that direct payment of the benefit to the individual would cause substantial harm to the individual, the Secretary may defer (in the case of initial entitlement) or suspend (in the case of existing entitlement) direct payment of such benefit to the individual, until such time as the selection of a representative payee is made pursuant to this subsection. “(ii)(I) Except as provided in subclause (II), any deferral or suspension of direct payment of a benefit pursuant to clause (i) shall be for a period of not more than 1 month. “(II) Subclause (D shall not apply in any case in which the individual is, as of the date of the Secretary’s determination, legally incompetent or under the age of 15. “(iii) Payment pursuant to this subsection of any benefits which are deferred or suspended pending the selection of a representative payee shall be made to the individual or the representative payee as a single sum or over such period of time as the Secretary determines is in the best interest of the individual entitled to such benefits. “(E)(i) Any individual who is dissatisfied with a determination by the Secretary to certify payment of such individual’s benefit to a representative payee under paragraph (1) or with the designation of a particular person to serve as representative payee shall be entitled to a hearing by the Secretary to the same extent as is provided in subsection (b), and to judicial review of the Secretary’s final decision as is provided in subsection (g). “(ii) In advance of the certification of payment of an individual’s benefit to a representative payee under paragraph (1), the Secretary shall provide written notice of the Secretary’s initial determination to certify such payment. Such notice shall be provided to such individual, except that, if such individual— “(I) is under the age of 15, “(II) is an unemancipated minor under the age of 18, or “(IID is legally incompetent, 104 STAT. 1388–258 then such notice shall be provided solely to the legal guardian or legal representative of such individual. “(iii) Any notice described in clause (ii) shall be clearly written in language that is easily understandable to the reader, shall identify the person to be designated as such individual’s representative payee, and shall explain to the reader the right under clause (i) of such individual or of such individual’s legal guardian or legal representative— “(I) to appeal a determination that a representative payee is necessary for such individual, “(II) to appeal the designation of a particular person to serve as the representative payee of such individual, and “(III) to review the evidence upon which such designation is based and submit additional evidence.”. (ii) Title xvi.—Section 1631(a)(2)(B) (42 U.S.C. 1383(a)(2)(B)) is amended to read as follows: “(B)(i) Any determination made under subparagraph (A) for payment of benefits to the representative payee of an individual or eligible spouse shall be made on the basis of— “(I) an investigation by the Secretary of the person to serve as representative payee, which shall be conducted in advance of such payment, and shall, to the extent practicable, include a face-to-face interview with such person; and “(II) adequate evidence that such payment is in the interest of the individual or eligible spouse (as determined by the Secretary in regulations), “(ii) As part of the investigation referred to in clause (i)(D. the Secretary shall— “(I) require the person being investigated to submit documented proof of the identity of such person, unless information establishing such identity was submitted with an application for benefits under title II or this title; “(II) verify the social security account number (or employer identification number) of such person; “(III) determine whether such person has been convicted of a violation of section 208 or 1632; and “(IV) determine whether payment of benefits to such person has been terminated pursuant to subparagraph (A)(iii), and whether certification of payment of benefits to such person has been revoked pursuant to section 205(j), by reason of misuse of funds paid as benefits under title II or this title. “(iii) Benefits of an individual may not be paid to any other person pursuant to subparagraph (A)(ii) if— “(I) such person has previously been convicted as described in clause (ii)(in); “(II) except as provided in clause (iv), payment of benefits to such person pursuant to subparagraph (A)(ii) has previously been terminated as described in clause (ii)(IV), or certification of payment of benefits to such person under section 205(j) has previously been revoked as described in section 2O5Q)(2)(B)(i)(IV); or . “(III) except as provided in clause (v), such person is a creditor of such individual who provides such individual with goods or services for consideration. “(iv) The Secretary shall prescribe regulations under which the Secretary may grant an exemption from clause (iii)(II) to any person on a case-by-case basis if such exemption would be in the best 104 STAT. 1388–259interest of the individual or eligible spouse whose benefits under this title would be paid to such person pursuant to subparagraph (A)(u). “(v) Clause (iii)(III) shall not apply with respect to any person who is a creditor referred to therein if such creditor is— “(I) a relative of such individual if such relative resides in the same household as such individual; “(II) a legal guardian or legal representative of such individual; “(III) a facility that is licensed or certified as a care facility under the law of a State or a political subdivision of a State; “(IV) a person who is an administrator, owner, or employee of a facility referred to in subclause (III) if such individual resides in such facility, and the payment of benefits under this title to such facility or such person is made only after good faith efforts have been made by the local servicing office of the Social Security Administration to locate an alternative representative payee to whom the payment of such benefits would serve the best interests of such individual; or “(V) an individual who is determined by the Secretary, on the basis of written findings and under procedures which the Secretary shall prescribe by regulation, to be acceptable to serve as a representative payee. “(vi) The procedures referred to in clause (v)(V) shall require the individual who will serve as representative payee to establish, to the satisfaction of the Secretary, that— “(I) such individual poses no risk to the beneficiary; “(II) the financial relationship of such individual to the beneficiary poses no substantial conflict of interest; and “(III) no other more suitable representative payee can be found. “(vii) Subject to clause (viii), if the Secretary makes a determination described in subparagraph (A)(ii) with respect to any individual’s benefit and determines that direct payment of the benefit to the individual would cause substantial harm to the individual, the Secretary may defer (in the case of initial entitlement) or suspend (in the case of existing entitlement) direct payment of such benefit to the individual, until such time as the selection of a representative payee is made pursuant to this subparagraph. “(viii) (I) Except as provided in subclause (ID, any deferral or suspension of direct payment of a benefit pursuant to clause (vii) shall be for a period of not more than 1 month. “(II) Subclause (I) shall not apply in any case in which the individual or eligible spouse is, as of the date of the Secretary’s determination, legally incompetent, under the age 15 years, or a drug addict or alcoholic referred to in section 1611(e)(3)(A). “(ix) Payment pursuant to this subparagraph of any benefits which are deferred or suspended pending the selection of a representative payee shall be made to the individual, or to the representative payee upon such selection, as a single sum or over such period of time as the Secretary determines is in the best interests of the individual entitled to such benefits. “(x) Any individual who is dissatisfied with a determination by the Secretary to pay such individual’s benefits to a representative payee under this title, or with the designation of a particular person to serve as representative payee, shall be entitled to a hearing by 104 STAT. 1388–260the Secretary, and to judicial review of the Secretary’s final decision, to the same extent as is provided in subsection (c). “(xi) In advance of the first payment of an individual’s benefit to a representative payee under subparagraph (A)(ii), the Secretary shall provide written notice of the Secretary’s initial determination to make any such payment. Such notice shall be provided to such individual, except that, if such individual— “(I) is under the age of 15, “(II) is an unemancipated minor under the age of 18, or “(III) is legally incompetent, then such notice shall be provided solely to the legal guardian or legal representative of such individual. “(xii) Any notice described in clause (xi) shall be clearly written in language that is easily understandable to the reader, shall identify the person to be designated as such individual’s representative payee, and shall explain to the reader the right under clause (x) of such individual or of such individual’s legal guardian or legal representative— “(I) to appeal a determination that a representative payee is necessary for such individual, “(II) to appeal the designation of a particular person to serve as the representative payee of such individual, and “(III) to review the evidence upon which such designation is based and submit additional evidence.”. (B) Report on feasibility of obtaining ready access to certain criminal fraud records.—As soon as practicable after the date of the enactment of this Act, the Secretary of Health and Human Services, in consultation with the Attorney General of the United States and the Secretary of the Treasury, shall study the feasibility of establishing and maintaining a current list, which would be readily available to local offices of the Social Security Administration for use in investigations undertaken pursuant to section 205(j)(2) or 1631(a)(2)(B) of the Social Security Act, of the names and social security account numbers of individuals who have been convicted of a violation of section 495 of title 18, United States Code. The Secretary of Health and Human Services shall, not later than July 1, 1992, submit the results of such study, together with any recommendations, to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate. (3) Provision for compensation of qualified organizations serving as representative payees.— (A) In general.— (i) Title ii.—Section 205(j) (42 U.S.C. 405(j)) is amended by redesignating paragraph (4) as paragraph (5), and by inserting after paragraph (3) the following new paragraph: “(4)(A) A qualified organization may collect from an individual a monthly fee for expenses (including overhead) incurred by such organization in providing services performed as such individual’s representative payee pursuant to this subsection if such fee does not exceed the lesser of— “(i) 10 percent of the monthly benefit involved, or “(ii) $25.00 per month. 104 STAT. 1388–261 Any agreement providing for a fee in excess of the amount permitted under this subparagraph shall be void and shall be treated as misuse by such organization of such individual’s benefits. “(B) For purposes of this paragraph, the term ‘qualified organization’ means any community-based nonprofit social service agency which is bonded or licensed in each State in which it serves as a representative payee and which, in accordance with any applicable regulations of the Secretary— “(i) regularly provides services as the representative payee, pursuant to this subsection or section 1631(a)(2), concurrently to 5 or more individuals, “(ii) demonstrates to the satisfaction of the Secretary that such agency is not otherwise a creditor of any such individual, and “(iii) was in existence on October 1, 1988. The Secretary shall prescribe regulations under which the Secretary may grant an exception from clause (ii) for any individual on a case-by-case basis if such exception is in the best interests of such individual. “(C) Any qualified organization which knowingly charges or collects, directly or indirectly, any fee in excess of the maximum fee prescribed under subparagraph (A) or makes any agreement, directly or indirectly, to charge or collect any fee in excess of such maximum fee, shall be fined in accordance with title 18, United States Code, or imprisoned not more than 6 months, or both. “(D) This paragraph shall cease to be effective on July 1, 1994.”. (ii) Title xvi.—Section 1631(a)(2) (42 U.S.C. 1383(a)(2)) is amended— (I) by redesignating subparagraph (D) as subparagraph (E); . (III) 6262 So In original. Probably should be “(II)”. by inserting after subparagraph (C) the following: “(D) (i) A qualified organization may collect from an individual a monthly fee for expenses (including overhead) incurred by such organization in providing services performed as such individual’s representative payee pursuant to subparagraph (A)(ii) if the fee does not exceed the lesser of— “(I) 10 percent of the monthly benefit involved, or “(II) $25.00 per month. Any agreement providing for a fee in excess of the amount permitted under this clause shall be void and shall be treated as misuse by the organization of such individual’s benefits. “(ii) For purposes of this subparagraph, the term ’qualified organization’ means any community-based nonprofit social service agency which— “(I) is bonded or licensed in each State in which the agency serves as a representative payee; “(II) in accordance with any applicable regulations of the Secretary— “(aa) regularly provides services as a representative payee pursuant to subparagraph (A)(ii) or section 205(j)(4) concurrently to 5 or more individuals; “(bb) demonstrates to the satisfaction of the Secretary that such agency is not otherwise a creditor of any such individual; and “(cc) was in existence on October 1, 1988. 104 STAT. 1388–262 The Secretary shall prescribe regulations under which the Secretary may grant an exception from subclause (Il)(bb) for any individual on a case-by-case basis if such exception is in the best interests of such individual. “(iii) Any qualified organization which knowingly charges or collects, directly or indirectly, any fee in excess of the maximum fee prescribed under clause (i) or makes any agreement, directly or indirectly, to charge or collect any fee in excess of such maximum fee, shall be fined in accordance with title 18, United States Code, or imprisoned not more than 6 months, or both. “(iv) This subparagraph shall cease to be effective on July 1, 1994.”. (B) Studies and reports.— (i) Report by secretary of health and human services.—Not later than January 1, 1993, the Secretary of Health and Human Services shall transmit a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate setting forth the number and types of qualified organizations which have served as representative payees and have collected fees for such service pursuant to any amendment made by subparagraph (A). (ii) Report by comptroller general.—Not later than July 1, 1992, the Comptroller General of the United States shall conduct a study of the advantages and disadvantages of allowing qualified organizations serving as representative payees to charge fees pursuant to the amendments made by subparagraph (A) and shall transmit a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate setting forth the results of such study. (4) Study relating to feasibility of screening of individuals with criminal records.—As soon as practicable after the date of the enactment of this Act, the Secretary of Health and Human Services shall conduct a study of the feasibility of determining the type of representative payee applicant most likely to have a felony or misdemeanor conviction, the suit-ability of individuals with prior convictions to serve as representative payees, and the circumstances under which such applicants could be allowed to serve as representative payees. The Secretary shall transmit the results of such study to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate not later than July 1, 1992. (5) Effective dates.— (A) Use and selection of representative payees.—The amendments made by paragraphs (1) and (2) shall take effect July 1, 1991, and shall apply only with respect to— (i) certifications of payment of benefits under title II of the Social Security Act to representative payees made on or after such date; and (ii) provisions for payment of benefits under title XVI of such Act to representative payees made on or after such date. (B) Compensation of representative payees.—The amendments made by paragraph (3) shall take effect July 1, 104 STAT. 1388–2631991, and the Secretary of Health and Human Services shall prescribe initial regulations necessary to carry out such amendments not later than such date. (b) Improvements in Recordkeeping and Auditing Requirements.— (1) Improved access to certain information.— (A) In general.—Section 205(j)(3) (42 U.S.C. 605(j)(3)) is amended— (i) by striking subparagraph (B); (ii) by redesignating subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (D), respectively; (iii) in subparagraph (D) (as so redesignated), by striking “(A), (B), (C), and (D)” and inserting “(A), (B), and (C)”; and (iv) by adding at the end the following new subparagraphs: “(E) The Secretary shall maintain a centralized file, which shall be updated periodically and which shall be in a form which will be readily retrievable by each servicing office of the Social Security Administration, of— “(i) the address and the social security account number (or employer identification number) of each representative payee who is receiving benefit payments pursuant to this subsection or section 1631(a)(2), and “(ii) the address and social security account number of each individual for whom each representative payee is reported to be providing services as representative payee pursuant to this subsection or section 1631(a)(2). “(F) Each servicing office of the Administration shall maintain a list, which shall be updated periodically, of public agencies and comm unity-based nonprofit social service agencies which are qualified to serve as representative payees pursuant to this subsection or section 1631(a)(2) and which are located in the area served by such servicing office.“. (B) Effective date.—The amendments made by subparagraph (A) shall take effect October 1, 1992, and the Secretary of Health and Human Services shall take such actions as are necessary to ensure that the requirements of section 205(j)(3)(E) of the Social Security Act (as amended by subparagraph (A) of this paragraph) are satisfied as of such date. (2) Study relating to more stringent oversight of high-risk representative payees.— (A) In general.—As soon as practicable after the date of the enactment of this Act, the Secretary of Health and Human Services shall conduct a study of the need for a more stringent accounting system for high-risk representative payees than is otherwise generally provided under section 205(j)(3) or 1631(a)(2)(C) of the Social Security Act, which would include such additional reporting requirements, record maintenance requirements, and other measures as the Secretary considers necessary to determine whether services are being appropriately provided by such payees in accordance with such sections 205(j) and 1631(a)(2). 104 STAT. 1388–264 (B) Special procedures.—In such study, the Secretary shall determine the appropriate means of implementing more stringent, statistically valid procedures for— (i) reviewing reports which would be submitted to the Secretary under any system described in subparagraph (A), and (ii) periodic, random audits of records which would be kept under such a system, in order to identify any instances in which high-risk representative payees are misusing payments made pursuant to section 205(j) or 1631(a)(2) of the Social Security Act. (C) High-risk representative payee.—For purposes of this paragraph, the term “high-risk representative payee” means a representative payee under section 205(j) or 1631(a)(2) of the Social Security Act (42 U.S.C. 405(j) and 1383(a)(2), respectively) (other than a Federal or State institution) who— (i) regularly provides concurrent services as a representative payee under such section 205(j), such section 1631(a)(2), or both such sections, for 5 or more individuals who are unrelated to such representative payee, (ii) is neither related to an individual on whose behalf the payee is being paid benefits nor living in the same household with such individual, (iii) is a creditor of such individual, or (iv) is in such other category of payees as the Secretary may determine appropriate. (D) Report.—The Secretary shall report to the Commit-tee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate the results of the study, together with any recommendations, not later than July 1, 1992. Such report shall include an evaluation of the feasibility and desirability of legislation implementing stricter accounting and review procedures for high-risk representative payees in all servicing offices of the Social Security Administration (together with proposed legislative language). (3) Demonstration projects relating to provision of information to local agencies providing child and adult protective services.— (A) In general.—As soon as practicable after the date of the enactment of this Act, the Secretary of Health and Human Services shall implement a demonstration project under this paragraph in all or part of not fewer than 2 States. Under each such project, the Secretary shall enter into an agreement with the State in which the project is located to make readily available, for the duration of the project, to the appropriate State agency, a listing of addresses of multiple benefit recipients. (B) Listing of addresses of multiple benefit recipients.—The list referred to in subparagraph (A) shall consist of a current list setting forth each address within the State at which benefits under title II, benefits under title XVI, or any combination of such benefits are being received by 5 or more individuals. For purposes of this subparagraph, in the case of benefits under title II, all individuals receiving 104 STAT. 1388–265benefits on the basis of the wages and self-employment income of the same individual shall be counted as 1 individual. (C) Appropriate state agency.—The appropriate State agency referred to in subparagraph (A) is the agency of the State which the Secretary determines is primarily responsible for regulating care facilities operated in such State or providing for child and adult protective services in such tate. (D) Report.—The Secretary shall report to the Commit-tee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate concerning such demonstration projects, together with any recommendations, not later than July 1, 1992. Such report shall include an evaluation of the feasibility and desirability of legislation implementing the programs established pursuant to this paragraph on a permanent basis. (E) State.—For purposes of this paragraph, the term “State” means a State, including the entities included in such term by section 210(h) of the Social Security Act (42 U.S.C. 410(h)). (c) Restitution.— (1) Title n.—Section 205(j) (42 U.S.C. 405(j)) is amended by redesignating paragraph (5) (as so redesignated by subsection (a)(3)(A)(i) of this section) as paragraph (6) and by inserting after paragraph (4) (as added by subsection (a)(3)(A)(i)) the following new paragraph: “(5) In cases where the negligent failure of the Secretary to investigate or monitor a representative payee results in misuse of benefits by the representative payee, the Secretary shall certify for payment to the beneficiary or the beneficiary’s alternative representative payee an amount equal to such misused benefits. The Secretary shall make a good faith effort to obtain restitution from the terminated representative payee.”. (2) Title XVI.—Section 1631(a)(2) (42 U.S.C. 1383(a)(2)) is amended by redesignating subparagraph (E) (as so redesignated by subsection (a)(3)(A)(ii)(I) of this section) as subparagraph (F) and by inserting after subparagraph (D) (as added by subsection (a)(3)(A)(i)(III)) the following new subparagraph: “(E) Restitution.—In cases where the negligent failure of the Secretary to investigate or monitor a representative payee results in misuse of benefits by the representative payee, the Secretary shall make payment to the beneficiary or the beneficiary’s representative payee of an amount equal to such misused benefits. The Secretary shall make a good faith effort to obtain restitution from the terminated representative payee.”. (d) Reports to the Congress.— (1) In general.— (A) Title ii.—Section 205(j)(5) (as so redesignated by subsection (c)(l) of this section) is amended to read as follows: “(5) The Secretary shall include as a part of the annual report required under section 704 information with respect to the implementation of the preceding provisions of this subsection, including the number of cases in which the representative payee was changed, the number of cases discovered where there has been a 104 STAT. 1388–266misuse of funds, how any such cases were dealt with by the Secretary, the final disposition of such cases, including any criminal penalties imposed, and such other information as the Secretary determines to be appropriate.”. (B) Title xvi—Section 1631(a)(2)(E) (42 U.S.C. 1383(a)(2)(E)), as so redesignated by subsection (c)(2) of this section, is amended to read as follows: “(E) The Secretary shall include as a part of the annual report required under section 704 information with respect to the implementation of the preceding provisions of this paragraph, including— “(i) the number of cases in which the representative payee was changed; “(ii) the number of cases discovered where there has been a misuse of funds; “(iii) how any such cases were dealt with by the Secretary; “(iv) the final disposition of such cases (including any criminal penalties imposed); and “(v) such other information as the Secretary determines to be appropriate.”. (2) Effective date.—The amendments made by paragraph (1) shall apply with respect to annual reports issued for years after 1991. (3) Feasibility study regarding involvement of department of veterans affairs.—As soon as practicable after the date of the enactment of this Act, the Secretary of Health and Human Services, in cooperation with the Secretary of Veterans Affairs, shall conduct a study of the feasibility of designating the Department of Veterans Affairs as the lead agency for purposes of selecting, appointing, and monitoring representative payees for those individuals who receive benefits paid under title II or )(VI of the Social Security Act and benefits paid by the Department of Veterans Affairs. Not later than 180 days after the date of the enactment of this Act, the Secretary of Health and Human Services shall transmit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report setting forth the results of such study, together with any recommendations.