[Congressional Record Volume 165, Number 187 (Thursday, November 21, 2019)]
[Senate]
[Pages S6764-S6766]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           REPRESENTATIVE PAYEE FRAUD PREVENTION ACT OF 2019

  Mrs. FISCHER. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 148, S. 1430.
  The PRESIDING OFFICER. The clerk will report the bill by title.

[[Page S6765]]

  The senior assistant legislative clerk read as follows:

       A bill (S. 1430) to amend title 5, United States Code, to 
     prevent fraud by representative payees.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Homeland Security and 
Governmental Affairs, with amendments, as follows:
  (The parts of the bill intended to be stricken are shown in boldface 
brackets and the parts of the bill intended to be inserted are shown in 
italics.)

                                S. 1430

       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) appointed 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) appointed 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 revoke 
     payments to the representative payee.]
       ``(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.''. [more than 5 years, or both.
       ``(c) Prima Facie Evidence.--Any willful neglect or refusal 
     by a representative payee to make and file proper accountings 
     or reports concerning the amounts received from payments 
     authorized under section 8345(e) as required by law shall be 
     taken to be sufficient evidence prima facie of the 
     embezzlement or conversion of such amounts.''.]
       (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 revoke 
     payments to the representative payee.]
       ``(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.''. [more than 5 years, or both.
       ``(c) Prima Facie Evidence.--Any willful neglect or refusal 
     by a representative payee to make and file proper accountings 
     or reports concerning the amounts received from payments 
     authorized under section 8466(c) as required by law shall be 
     taken to be sufficient evidence prima facie of the 
     embezzlement or conversion of such amounts.''.]
       (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, [and] 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, [and] 1383a); or
       ``(3) section 6101 of title 38.''.

     SEC. 3. IMPLEMENTATION.

       [(a) Authorization of Payments.--Amounts in the Civil 
     Service Retirement and Disability Fund may be used by the 
     Office of Personnel Management, without further 
     appropriation, for the cost of activities of the Office 
     relating to preventing fraud by representative payees (as 
     defined in section 8331 and 8401 of title 5, United States 
     Code, as amended by this Act).]
       (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 [this Act] 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 [this Act] 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).
  Mrs. FISCHER. Mr. President, I ask unanimous consent that the 
committee-reported amendments be agreed

[[Page S6766]]

to; that the Lankford amendment at the desk be agreed to; and that the 
bill, as amended, be considered read a third time and passed; and that 
the motion to reconsider be considered made and laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee-reported amendments were agreed to.
  The amendment (No. 1251) is as follows:

                 (Purpose: To make certain corrections)

       On page 2, line 11, strike ``appointed'' and insert 
     ``designated''.
       On page 2, line 23, strike ``appointed'' and insert 
     ``designated''.
  The bill (S. 1430), as amended, was ordered to be engrossed for a 
third reading, was read the third time, and passed as follows:

                                S. 1430

       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).

                          ____________________