be provided to a family that includes a parent who has been convicted of committing a fraud against the State program funded under this part, to a representative payee who shall be designated by the Secretary in accordance with procedures similar to those prescribed by and under section 1631(a)(2) for the designation of representative payees, and who shall use the assistance for the benefit of the family. The provisions of section 1631(a)(2) pertaining to misuse of benefits shall apply with respect to misuse of the assistance, except that in such provisions Secretary shall be substituted for Commissioner of Social Security . (C) Fraud defined In subparagraph (A), the term fraud means knowingly making a false representation to the State in applying for, or receiving, assistance from the State program funded under this part, or in providing information with respect to another person who is applying for, or receiving the assistance. . (b) Penalty Section 409(a) of such Act ( 42 U.S.C. 609(a) ), as amended by sections 102(b), 104(b), and 105(b) of this Act, is amended by adding at the end the following: (20) Requirements relating to fraud against the State program If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has failed to comply with section 408(a)(15) for the fiscal year, the Secretary may reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by such amount as the Secretary finds is necessary to induce the State to so comply. . 108. States required to count income of cohabiting persons in assistance determinations (a) Requirement Section 408(a) of the Social Security Act ( 42 U.S.C. 608(a) ), as amended by sections 104(a), 105(a), and 107(a) of this Act, is amended by adding at the end the following: (16) Requirement to count income of cohabiting persons in assistance determinations In determining the eligibility of a family for assistance, or the amount of assistance to be provided to a family, under a State