BONDING OF CERTAIN STATE OR LOCAL EMPLOYEES; HANDLING OF CASH RECEIPTS.

SEC. 502. BONDING OF CERTAIN STATE OR LOCAL EMPLOYEES; HANDLING OF CASH RECEIPTS. (a) In General.—Section 454 of the Social Security Act is amended— (1) by striking out “and” at the end of paragraph (12), (2) by striking out the period at the end of paragraph (13) and inserting a semicolon in lieu thereof, and (3) by adding at the end thereof the following new paragraphs: “(14) comply with such bonding requirements, for employees who receive, disburse, handle, or have access to, cash, as the Secretary shall by regulations prescribe; and “(15) maintain methods of administration which are designed to assure that persons responsible for handling cash receipts shall not participate in accounting or operating functions which would permit them to conceal in the accounting records the misuse of cash receipts (except that the Secretary shall by regulations provide for exceptions to this requirement in the case of sparsely populated areas where the hiring of unreasonable additional staff would otherwise be necessary).”. (b) Effective Date.—The amendments made by this section shall take effect on the first day of the first calendar month which begins after the date of enactment of this Act.