OVERSIGHT OF REPRESENTATIVE PAYEES.

SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES.(a) Certification of Bonding and Licensing Requirements for Nongovernmental Organizational 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 agency licensed or bonded by the State” in subclause (I) and inserting “a certified community-based nonprofit social service agency (as defined in paragraph (9))”;(B) in paragraph (3)(F), by striking “community-based nonprofit social service agencies” and inserting “certified community-based nonprofit social service agencies (as defined in paragraph (9))”;(C) in paragraph (4)(B), by striking “any community-based nonprofit social service agency which is bonded or licensed in each State in which it serves as a representative payee” and inserting “any certified community-based nonprofit social service agency (as defined in paragraph (9))”; and(D) by adding after paragraph (8) (as added by section 101(a)(2) of this Act) the following:“(9) For purposes of this subsection, 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 representative payee (if licensing is available in the State) in accordance with requirements specified by the Commissioner. Any such annual certification shall include a copy of any independent audit on the agency which may have been performed since the previous certification.”.(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 subclause (I) and inserting “a certified community-based nonprofit social service agency (as defined in subparagraph (I))”;(B) in subparagraph (D)(ii)—(i) by striking “or any community-based” and all that follows through “in accordance” in subclause (II) and inserting “or any certified community-based nonprofit social service agency (as defined in subparagraph (I)), if the agency, in accordance”;118 STAT. 498(ii) by redesignating items (aa) and (bb) as subclauses (I) and (II), respectively (and adjusting the margins accordingly); and(iii) by striking “subclause (II)(bb)” and inserting “subclause (II)”; and(C) by adding at the end the following:“(I) For purposes of this paragraph, 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 representative payee (if licensing is available in the State) in accordance with requirements specified by the Commissioner. Any such annual certification shall include a copy of any independent audit on the agency which may have been performed since the previous certification.”.(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 representative 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 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 community-based nonprofit social service agency (as defined 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 results of periodic onsite reviews conducted during the fiscal year pursuant to subparagraph (A) 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 such reviews 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 representative payee was changed and why;“(iv) the number of cases involving the exercise of expedited, targeted oversight of the representative payee by the 118 STAT. 499 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 imposed; and“(viii) such other information as the Commissioner 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:“(k) Periodic Onsite Review.—“(1) In general.—In addition to such other reviews of representative payees as the Commissioner 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 payable under title II or title XVI) to another individual pursuant 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) Report.—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 results 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 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 representative 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 misuse of funds, including any criminal penalties imposed; and“(H) such other information as the Commissioner deems appropriate.”.118 STAT. 500(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 follows:“(G)(i) In addition to such other reviews of representative 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 results 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 reviews 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 representative 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 imposed; and“(VIII) such other information as the Commissioner deems appropriate.”.