[Congressional Record Volume 166, Number 24 (Wednesday, February 5, 2020)]
[House]
[Pages H806-H808]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           REPRESENTATIVE PAYEE FRAUD PREVENTION ACT OF 2019

  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I move to suspend 
the rules and pass the bill (H.R. 5214) to amend title 5, United States 
Code, to prevent fraud by representative payees.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5214

       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

[[Page H807]]

       (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).

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Mrs. Carolyn B. Maloney) and the gentleman from North 
Carolina (Mr. Meadows) each will control 20 minutes.
  The Chair recognizes the gentlewoman from New York.


                             General Leave

  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I ask unanimous 
consent that all Members may have 5 legislative days in which to revise 
and extend their remarks and include extraneous material on the measure 
before us.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman?
  There was no objection.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I yield myself such 
time as I may consume.
  The Representative Payee Fraud Prevention Act is a commonsense 
bipartisan bill that would protect recipients of Federal pensions from 
unscrupulous representatives who use the money for their own benefit 
instead of the retirees'. Currently, representative payees can receive 
pension benefits on behalf of a recipient who is a minor, is designated 
mentally incompetent, or has another disability.
  Embezzlement or conversion of Social Security and veterans benefits 
by a representative payee is a Federal felony. However, there is no 
Federal penalty in current law for representative payees who embezzle 
or convert Federal retirement benefits to their own use.
  The Representative Payee Fraud Prevention Act would close this 
loophole and apply the same penalties to those representative payees 
who misuse Federal pension benefits. We must ensure that those who have 
spent their careers in public service receive the benefits they have 
earned.
  I want to thank my friend and colleague, Representative Tlaib, for 
her hard work, along with Representative Meadows. It is a bipartisan 
effort on this important issue.
  Mr. Speaker, I urge my colleagues to support this commonsense 
measure, and I reserve the balance of my time.
  Mr. MEADOWS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 5214, the Representative Payee 
Fraud Prevention Act.
  Federal employees often dedicate decades of their lives to public 
service.

[[Page H808]]

When they retire, those Federal employees receive their hard-earned 
retirement benefits. Currently, the Federal Government issues payments 
to more than 2 million retirees and more than half a million survivor 
annuitants each year. Annuitants receive an average of $2,500 a month.
  If a Federal annuitant becomes incapacitated in some way, a 
representative payee may be appointed. A representative payee is a 
person who receives and manages benefits on behalf of another person 
who is not fully capable of managing their own benefits. Certainly, 
things like mental illness, disability, or long-term illness are just a 
few examples of situations where a payee may step in and provide that 
counsel.
  Obviously, as we look at this, a representative payee has a duty to 
use financial benefits to assist with the care and well-being of the 
intended beneficiary. Surprisingly, though, it is not a crime for a 
representative payee to commit financial fraud against an incapacitated 
Federal retiree. However, under the Social Security Act, it is a crime 
to do so.
  I have always assumed that this type of financial abuse of retired 
Federal employees was also a crime. But right now, under Federal law, 
it is not.
  As the chairwoman from New York mentioned, this is a commonsense 
piece of legislation. I would like to thank my colleague, Ms. Tlaib, 
for her leadership on this.
  This bill will make it a crime to embezzle Federal retirement 
benefits as a representative payee. If convicted, the representative 
payee could be subject to criminal fines and up to 5 years in prison. 
Obviously, this is a protection for our Federal workforce.
  Mr. Speaker, I urge support of this particular piece of legislation, 
and I reserve the balance of my time.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I yield such time 
as she may consume to the gentlewoman from Michigan (Ms. Tlaib).
  Ms. TLAIB. Mr. Speaker, I would like to begin by thanking Congressman 
Meadows for partnering with me on the bill, as well as our Chairwoman 
Maloney and her incredibly strong and talented staff for their 
leadership and for the continued support of the work that we have to do 
on behalf of our residents at home.
  I also want to thank our forever chairman, the late Chairman 
Cummings, who is looking down on us from above, for his mentorship and 
for working with us on this bill that would help some of our most 
vulnerable retirees.
  We all know that no one deserves to be scammed out of their money, 
but that is especially true for our retirees. This bill, the 
Representative Payee Fraud Prevention Act, is a bipartisan effort to 
protect those retirees who are recipients of Federal benefits.
  Retirees who have been declared mentally incompetent or have another 
qualifying disability can have their monthly benefits paid on their 
behalf through a representative, frequently referred to as the 
representative payee. In recent years, what we have seen in our country 
is there has been a sharp increase in the number of representative 
payees who have taken advantage of their position and committed fraud, 
hurting many of our residents.
  We need to hold them accountable, and this bill does that. The bill 
would expand protection to over 2 million workers all across the United 
States.
  In my home State of Michigan, there are nearly 40,000 Federal 
retirees who are currently unprotected from this crime, impacting their 
quality of life. They are supposed to be living in peace during their 
retirement years. They are becoming targets instead, and we need to 
push back together, in a bipartisan way.
  I hear firsthand from our senior residents about their concerns, from 
feeling neglected in the assisted living facilities to unaffordable 
drug prices, and I want to ensure that our older Americans have one 
less worry about financial predators who will misuse their hard-earned 
money.

  For far too long, this lack of Federal protection has left some of 
our, again, most vulnerable civil servants without legal recourse when 
they are taken advantage of and their retirement funds are misused. We 
must ensure that the most impacted communities are protected on every 
front.
  That is what this legislation will do. It will prevent those who have 
committed representative payee fraud from serving as representative 
payees in the future and hold them accountable to their victims.
  Let's really ensure that our public servants and our civil servants 
who have dedicated their lives to serving our country are protected 
against this fraud.
  Again, I want to thank my beloved Chairman Cummings for coming to 
myself and my colleague, Congressman Meadows. When he did, we couldn't 
say no to him, so we worked together in trying to resolve this issue 
for so many folks, again, 2 million Federal employees across the 
country who need this protection.
  Mr. Speaker, I really do urge my colleagues to support this bill.
  Mr. MEADOWS. Mr. Speaker, I certainly would rise in support of this 
legislation. I thank the gentlewoman from Michigan for her kind words. 
Ms. Tlaib has been leading on this.
  The gentlewoman is right. Chairman Cummings had an infectious way of 
bringing people together, and I rise in support of this legislation as 
a tribute to his leadership and to her leadership.
  Mr. Speaker, I yield back the balance of my time.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I urge passage of 
H.R. 5214. I thank Elijah Cummings for his hard work on this bill, too, 
and my colleagues, Mr. Meadows and Ms. Tlaib, and I yield back the 
balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from New York (Mrs. Carolyn B. Maloney) that the House 
suspend the rules and pass the bill, H.R. 5214.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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