Social Security Representative Payee Act of 1989

Social Security Representative Payee Act of 1989 - Amends titles II (Old Age, Survivors and Disability Insurance) (OASDI) and XVI (Supplemental Security Income) (SSI) of the Social Security Act to require that the determination as to whether a beneficiary requires a representative payee be made only after a face-to-face interview with the beneficiary in which the beneficiary's need for a representative payee is evaluated and oral and written explanations of the representative payee's role and the beneficiary's rights with respect to such payee's appointment are provided to the beneficiary.

Prohibits a person's designation as a representative payee until an investigation has been conducted to verify such person's identification and determine whether such person has a criminal background or has previously had his or her services as a representative payee terminated or suspended by the Secretary of Health and Human Services. Prohibits the appointment of persons who have a criminal background or have previously had their services terminated or suspended without the written approval of the head of a Social Security Administration office. Requires that such approvals be included in a file which is periodically reviewed by the Secretary. Forbids a beneficiary's creditor from serving as his or her representative payee, except where such creditor is a relative residing with such beneficiary. Requires States to establish and enforce standards for institutions, foster homes, and group living arrangements before they serve as representative payees.

Directs the Secretary to prescribe maximum fees which may be charged for representative payee services by nonprofit organizations that regularly provide such services simultaneously to two or more beneficiaries. Imposes penalties upon representative payees who overcharge.

Requires the Secretary to establish an accountability monitoring system imposing detailed recordkeeping requirements on representative payees and requiring them to submit quarterly reports identifying themselves and the beneficiaries whom they serve. Subjects relatives who are residing with a beneficiary, and State and Federal institutions that serve as representative payees, to a mandatory, annual system of accountability monitoring to be prescribed by the Secretary. Directs the Secretary to require a report at any time from a representative payee believed to be misusing payments. Requires the Secretary to maintain a centralized, current file, accessible to local offices of the Social Security Administration, identifying all representative payees, beneficiaries utilizing the services of representative payees, and persons who have previously misused Social Security Act benefits. Requires that such file highlight instances where two or more beneficiaries who utilize representative payee services reside at the same address.

Gives beneficiaries the opportunity to appeal the Secretary's determinations regarding their need for representative payee services and their representative payee's compliance with this Act's requirements. Directs the Secretary to terminate or suspend the services of a representative payee who violates this Act's requirements or otherwise acts contrary to a beneficiary's best interests and secure a new representative payee for such beneficiary. Reimburses beneficiaries for losses due to a representative payee's fraudulent conversion of benefit proceeds.

Sets forth reporting requirements.