[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5214 Enrolled Bill (ENR)]
H.R.5214
One Hundred Sixteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and twenty
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.
``(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
(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,''.
(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).
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.