[United States Statutes at Large, Volume 134, 116th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]
Public Law 116-126
116th Congress
An Act
To amend title 5, United States Code, to prevent fraud by representative
payees. <>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress
assembled, <>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Representative Payee Fraud Prevention
Act of 2019''.
SEC. 2. REPRESENTATIVE PAYEE FRAUD.
(a) Definitions.--
(1) CSRS.--Section 8331 of title 5, United States Code, is
amended--
(A) in paragraph (31), by striking ``and'' at the
end;
(B) in paragraph (32), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(33) `representative payee' means a person (including an
organization) designated under section 8345(e)(1) to receive
payments on behalf of a minor or an individual mentally
incompetent or under other legal disability.''.
(2) FERS.--Section 8401 of title 5, United States Code, is
amended--
(A) in paragraph (37), by striking ``and'' at the
end;
(B) in paragraph (38), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(39) `representative payee' means a person (including an
organization) designated under section 8466(c)(1) to receive
payments on behalf of a minor or an individual mentally
incompetent or under other legal disability.''.
(b) Embezzlement or Conversion.--
(1) CSRS.--Subchapter III of chapter 83 of title 5, United
States Code, is amended by inserting after section 8345 the
following:
``Sec. 8345a. <> Embezzlement or conversion
of payments
``(a) Embezzling and Conversion Generally.--
``(1) In general.--It shall be unlawful for a representative
payee to embezzle or in any manner convert all or any part of
the amounts received from payments received as a representative
payee to a use other than for the use and benefit of the minor
or individual on whose behalf such payments were received.
[[Page 175]]
``(2) <> Revocation.--If the Office
determines that a representative payee has embezzled or
converted payments as described in paragraph (1), the Office
shall promptly--
``(A) revoke the certification for payment of
benefits to the representative payee; and
``(B) <> certify payment--
``(i) to another representative payee; or
``(ii) if the interest of the individual under
this title would be served thereby, to the
individual.
``(b) Penalty.--Any person who violates subsection (a)(1) shall be
fined under title 18, imprisoned for not more than 5 years, or both.''.
(2) FERS.--Subchapter VI of chapter 84 of title 5, United
States Code, is amended by inserting after section 8466 the
following:
``Sec. 8466a. <> Embezzlement or conversion
of payments
``(a) Embezzling and Conversion Generally.--
``(1) In general.--It shall be unlawful for a representative
payee to embezzle or in any manner convert all or any part of
the amounts received from payments received as a representative
payee to a use other than for the use and benefit of the minor
or individual on whose behalf such payments were received.
``(2) <> Revocation.--If the Office
determines that a representative payee has embezzled or
converted payments as described in paragraph (1), the Office
shall promptly--
``(A) revoke the certification for payment of
benefits to the representative payee; and
``(B) <> certify payment--
``(i) to another representative payee; or
``(ii) if the interest of the individual under
this title would be served thereby, to the
individual.
``(b) Penalty.--Any person who violates subsection (a)(1) shall be
fined under title 18, imprisoned for not more than 5 years, or both.''.
(3) Technical and conforming amendments.--
(A) The table of sections for chapter 83 of title 5,
United States Code, <> is
amended by inserting after the item relating to section
8345 the following:
``8345a. Embezzlement or conversion of payments.''.
(B) The table of sections for chapter 84 of title 5,
United States Code, <> is
amended by inserting after the item relating to section
8466 the following:
``8466a. Embezzlement or conversion of payments.''.
(c) Deferral of Payment Pending Appointment of Representative
Payee.--
(1) CSRS.--Section 8345(e) of title 5, United States Code,
is amended--
(A) by inserting ``(1)'' after ``(e)'';
(B) in the first sentence, by inserting ``(including
an organization)'' after ``person'';
(C) in the second sentence--
(i) by inserting ``(including an
organization)'' after ``any person''; and
[[Page 176]]
(ii) by inserting ``and may appropriately
receive such payments on behalf of the claimant''
after ``claimant'' the second place it appears;
and
(D) by adding at the end the following:
``(2) <> If the Office determines that direct
payment of a benefit to an individual mentally incompetent or under
other legal disability would cause substantial harm to the individual,
the Office may defer or suspend direct payment of the benefit until such
time as the appointment of a representative payee is made. The Office
shall resume payment as soon as practicable, including all amounts
due.''.
(2) FERS.--Section 8466(c) of title 5, United States Code,
is amended--
(A) by inserting ``(1)'' after ``(c)'';
(B) in the first sentence, by inserting ``(including
an organization)'' after ``person'';
(C) in the second sentence--
(i) by inserting ``(including an
organization)'' after ``any person''; and
(ii) by inserting ``and may appropriately
receive such payments on behalf of the claimant''
after ``claimant'' the second place it appears;
and
(D) by adding at the end the following:
``(2) <> If the Office determines that direct
payment of a benefit to an individual mentally incompetent or under
other legal disability would cause substantial harm to the individual,
the Office may defer or suspend direct payment of the benefit until such
time as the appointment of a representative payee is made. The Office
shall resume payment as soon as practicable, including all amounts
due.''.
(d) Limitations on Appointments of Representative Payees.--
(1) CSRS.--Section 8345 of title 5, United States Code, is
amended by inserting after subsection (e) the following:
``(f) The Office may not authorize a person to receive payments on
behalf of a minor or individual of legal disability under subsection (e)
if that person has been convicted of a violation of--
``(1) section 8345a or 8466a;
``(2) section 208 or 1632 of the Social Security Act (42
U.S.C. 408, 1383a); or
``(3) section 6101 of title 38.''.
(2) FERS.--Section 8466 of title 5, United States Code, is
amended by adding at the end the following:
``(d) The Office may not authorize a person to receive payments on
behalf of a minor or individual of legal disability under subsection (c)
if that person has been convicted of a violation of--
``(1) section 8345a or 8466a;
``(2) section 208 or 1632 of the Social Security Act (42
U.S.C. 408, 1383a); or
``(3) section 6101 of title 38.''.
SEC. 3. IMPLEMENTATION.
(a) Authorization of Payments.--Section 8348(a)(1)(B) of title 5,
United States Code, is amended by inserting ``in administering fraud
prevention under sections 8345, 8345a, 8466, and 8466a of this title,''
after ``8465(b) of this title,''.
[[Page 177]]
(b) <> Regulations.--Not later
than 1 year after the date of enactment of this Act, the Office of
Personnel Management--
(1) shall promulgate regulations to carry out the amendments
made by section 2; and
(2) may promulgate additional regulations relating to the
administration of the representative payee program.
SEC. 4. <> EFFECTIVE DATE.
The amendments made by section 2--
(1) shall take effect on the date of the enactment of this
Act; and
(2) apply on and after the effective date of the regulations
promulgated under section 3(b)(1).
Approved March 18, 2020.
LEGISLATIVE HISTORY--H.R. 5214:
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CONGRESSIONAL RECORD, Vol. 166 (2020):
Feb. 5, considered and passed House.
Mar. 3, considered and passed Senate.