    [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:
    ---------------------------------------------------------------------------

    CONGRESSIONAL RECORD, Vol. 166 (2020):
    Feb. 5, considered and passed House.
    Mar. 3, considered and passed Senate.