II 

Calendar No. 148 

116TH CONGRESS 

1ST SESSION S. 1430 

[Report No. 116–56] 

To amend title 5, United States Code, to prevent fraud by representative 

payees. 

IN THE SENATE OF THE UNITED STATES 

MAY 13, 2019 

Mr. LANKFORD (for himself, Mr. PETERS, and Ms. SINEMA) introduced the 

following bill; which was read twice and referred to the Committee on 

Homeland Security and Governmental Affairs 

JULY 15, 2019 

Reported by Mr. JOHNSON, with amendments 

[Omit the part struck through and insert the part printed in italic] 

A BILL 

To amend title 5, United States Code, to prevent fraud 

by representative payees. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Representative Payee 

5 Fraud Prevention Act of 2019’’. 


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1 SEC. 2. REPRESENTATIVE PAYEE FRAUD. 

2 (a) DEFINITIONS.— 

3 (1) CSRS.—Section 8331 of title 5, United 

4 States Code, is amended— 

5 (A) in paragraph (31), by striking ‘‘and’’ 

6 at the end; 

7 (B) in paragraph (32), by striking the pe8 riod at the end and inserting ‘‘; and’’; and 

9 (C) by adding at the end the following: 

10 ‘‘(33) ‘representative payee’ means a person 

11 (including an organization) appointed under section 

12 8345(e)(1) to receive payments on behalf of a minor 

13 or an individual mentally incompetent or under other 

14 legal disability.’’. 

15 (2) FERS.—Section 8401 of title 5, United 

16 States Code, is amended— 

17 (A) in paragraph (37), by striking ‘‘and’’ 

18 at the end; 

19 (B) in paragraph (38), by striking the pe20 riod at the end and inserting ‘‘; and’’; and 

21 (C) by adding at the end the following: 

22 ‘‘(39) ‘representative payee’ means a person 

23 (including an organization) appointed under section 

24 8466(c)(1) to receive payments on behalf of a minor 

25 or an individual mentally incompetent or under other 

26 legal disability.’’. 


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1 (b) EMBEZZLEMENT OR CONVERSION.— 

2 (1) CSRS.—Subchapter III of chapter 83 of 

3 title 5, United States Code, is amended by inserting 

4 after section 8345 the following: 

5 ‘‘§ 8345a. Embezzlement or conversion of payments 

6 ‘‘(a) EMBEZZLING AND CONVERSION GENERALLY.— 

7 ‘‘(1) IN GENERAL.—It shall be unlawful for a 

8 representative payee to embezzle or in any manner 

9 convert all or any part of the amounts received from 

10 payments received as a representative payee to a use 

11 other than for the use and benefit of the minor or 

12 individual on whose behalf such payments were re13 ceived. 

14 ‘‘(2) REVOCATION.—If the Office determines 

15 that a representative payee has embezzled or con16 verted payments as described in paragraph (1), the 

17 Office shall promptly revoke payments to the rep18 resentative payee. 

19 ‘‘(2) REVOCATION.—If the Office determines that 

20 a representative payee has embezzled or converted 

21 payments as described in paragraph (1), the Office 

22 shall promptly— 

23 ‘‘(A) revoke the certification for payment of 

24 benefits to the representative payee; and 

25 ‘‘(B) certify payment— 


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1 ‘‘(i) to another representative payee; or 

2 ‘‘(ii) if the interest of the individual 

3 under this title would be served thereby, to 

4 the individual. 

5 ‘‘(b) PENALTY.—Any person who violates subsection 

6 (a)(1) shall be fined under title 18, imprisoned for not 

7 more than 5 years, or both.’’. more than 5 years, or both. 

8 ‘‘(c) PRIMA FACIE EVIDENCE.—Any willful neglect 

9 or refusal by a representative payee to make and file prop10 er accountings or reports concerning the amounts received 

11 from payments authorized under section 8345(e) as re12 quired by law shall be taken to be sufficient evidence 

13 prima facie of the embezzlement or conversion of such 

14 amounts.’’. 

15 (2) FERS.—Subchapter VI of chapter 84 of 

16 title 5, United States Code, is amended by inserting 

17 after section 8466 the following: 

18 ‘‘§ 8466a. Embezzlement or conversion of payments 

19 ‘‘(a) EMBEZZLING AND CONVERSION GENERALLY.— 

20 ‘‘(1) IN GENERAL.—It shall be unlawful for a 

21 representative payee to embezzle or in any manner 

22 convert all or any part of the amounts received from 

23 payments received as a representative payee to a use 

24 other than for the use and benefit of the minor or 


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1 individual on whose behalf such payments were re2 ceived. 

3 ‘‘(2) REVOCATION.—If the Office determines 

4 that a representative payee has embezzled or con5 verted payments as described in paragraph (1), the 

6 Office shall promptly revoke payments to the rep7 resentative payee. 

8 ‘‘(2) REVOCATION.—If the Office determines that 

9 a representative payee has embezzled or converted 

10 payments as described in paragraph (1), the Office 

11 shall promptly— 

12 ‘‘(A) revoke the certification for payment of 

13 benefits to the representative payee; and 

14 ‘‘(B) certify payment— 

15 ‘‘(i) to another representative payee; or 

16 ‘‘(ii) if the interest of the individual 

17 under this title would be served thereby, to 

18 the individual. 

19 ‘‘(b) PENALTY.—Any person who violates subsection 

20 (a)(1) shall be fined under title 18, imprisoned for not 

21 more than 5 years, or both.’’. more than 5 years, or both. 

22 ‘‘(c) PRIMA FACIE EVIDENCE.—Any willful neglect 

23 or refusal by a representative payee to make and file prop24 er accountings or reports concerning the amounts received 

25 from payments authorized under section 8466(c) as reVerDate Sep 11 2014 20:48 Jul 15, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S1430.RS S1430

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1 quired by law shall be taken to be sufficient evidence 

2 prima facie of the embezzlement or conversion of such 

3 amounts.’’. 

4 (3) TECHNICAL AND CONFORMING AMEND5 MENTS.— 

6 (A) The table of sections for chapter 83 of 

7 title 5, United States Code, is amended by in8 serting after the item relating to section 8345 

9 the following: 

‘‘8345a. Embezzlement or conversion of payments.’’. 

10 (B) The table of sections for chapter 84 of 

11 title 5, United States Code, is amended by in12 serting after the item relating to section 8466 

13 the following: 

‘‘8466a. Embezzlement or conversion of payments.’’. 

14 (c) DEFERRAL OF PAYMENT PENDING APPOINT15 MENT OF REPRESENTATIVE PAYEE.— 

16 (1) CSRS.—Section 8345(e) of title 5, United 

17 States Code, is amended— 

18 (A) by inserting ‘‘(1)’’ after ‘‘(e)’’; 

19 (B) in the first sentence, by inserting ‘‘(in20 cluding an organization)’’ after ‘‘person’’; 

21 (C) in the second sentence— 

22 (i) by inserting ‘‘(including an organi23 zation)’’ after ‘‘any person’’; and 


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1 (ii) by inserting ‘‘and may appro2 priately receive such payments on behalf of 

3 the claimant’’ after ‘‘claimant’’ the second 

4 place it appears; and 

5 (D) by adding at the end the following: 

6 ‘‘(2) If the Office determines that direct payment of 

7 a benefit to an individual mentally incompetent or under 

8 other legal disability would cause substantial harm to the 

9 individual, the Office may defer or suspend direct payment 

10 of the benefit until such time as the appointment of a rep11 resentative payee is made. The Office shall resume payment 

12 as soon as practicable, including all amounts due.’’. 

13 (2) FERS.—Section 8466(c) of title 5, United 

14 States Code, is amended— 

15 (A) by inserting ‘‘(1)’’ after ‘‘(c)’’; 

16 (B) in the first sentence, by inserting ‘‘(in17 cluding an organization)’’ after ‘‘person’’; 

18 (C) in the second sentence— 

19 (i) by inserting ‘‘(including an organi20 zation)’’ after ‘‘any person’’; and 

21 (ii) by inserting ‘‘and may appro22 priately receive such payments on behalf of 

23 the claimant’’ after ‘‘claimant’’ the second 

24 place it appears; and 

25 (D) by adding at the end the following: 


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1 ‘‘(2) If the Office determines that direct payment of 

2 a benefit to an individual mentally incompetent or under 

3 other legal disability would cause substantial harm to the 

4 individual, the Office may defer or suspend direct payment 

5 of the benefit until such time as the appointment of a rep6 resentative payee is made. The Office shall resume payment 

7 as soon as practicable, including all amounts due.’’. 

8 (d) LIMITATIONS ON APPOINTMENTS OF REP9 RESENTATIVE PAYEES.— 

10 (1) CSRS.—Section 8345 of title 5, United 

11 States Code, is amended by inserting after sub12 section (e) the following: 

13 ‘‘(f) The Office may not authorize a person to receive 

14 payments on behalf of a minor or individual of legal dis15 ability under subsection (e) if that person has been con16 victed of a violation of— 

17 ‘‘(1) section 8345a or 8466a; 

18 ‘‘(2) section 208 or 1632 of the Social Security 

19 Act (42 U.S.C. 408, and 1383a); or 

20 ‘‘(3) section 6101 of title 38.’’. 

21 (2) FERS.—Section 8466 of title 5, United 

22 States Code, is amended by adding at the end the 

23 following: 

24 ‘‘(d) The Office may not authorize a person to receive 

25 payments on behalf of a minor or individual of legal disVerDate Sep 11 2014 20:48 Jul 15, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1430.RS S1430

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1 ability under subsection (c) if that person has been con2 victed of a violation of— 

3 ‘‘(1) section 8345a or 8466a; 

4 ‘‘(2) section 208 or 1632 of the Social Security 

5 Act (42 U.S.C. 408, and 1383a); or 

6 ‘‘(3) section 6101 of title 38.’’. 

7 SEC. 3. IMPLEMENTATION. 

8 (a) AUTHORIZATION OF PAYMENTS.—Amounts in 

9 the Civil Service Retirement and Disability Fund may be 

10 used by the Office of Personnel Management, without fur11 ther appropriation, for the cost of activities of the Office 

12 relating to preventing fraud by representative payees (as 

13 defined in section 8331 and 8401 of title 5, United States 

14 Code, as amended by this Act). 

15 (a) AUTHORIZATION OF PAYMENTS.—Section 

16 8348(a)(1)(B) of title 5, United States Code, is amended 

17 by inserting ‘‘in administering fraud prevention under sec18 tions 8345, 8345a, 8466, and 8466a of this title,’’ after 

19 ‘‘8465(b) of this title,’’. 

20 (b) REGULATIONS.—Not later than 1 year after the 

21 date of enactment of this Act, the Office of Personnel 

22 Management— 

23 (1) shall promulgate regulations to carry out 

24 the amendments made by this Act section 2; and 


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1 (2) may promulgate additional regulations re2 lating to the administration of the representative 

3 payee program. 

4 SEC. 4. EFFECTIVE DATE. 

5 The amendments made by this Act section 2— 

6 (1) shall take effect on the date of the enact7 ment of this Act; and 

8 (2) apply on and after the effective date of the 

9 regulations promulgated under section 3(b)(1). 


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Calendar No. 148 

116TH CONGRESS 

1ST SESSION S. 1430 

[Report No. 116–56] 

A BILL 

To amend title 5, United States Code, to prevent 

fraud by representative payees. 

JULY 15, 2019 

Reported with amendments 


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