,,ii #aafth ,,congress #ast ,session ,s4 #adcj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #ac1 #bjai ,mr4 ,lankford 7for himself1 ,mr4 ,peters1 and ,ms4 ,sinema7 introduced the following bill2 which was read twice and referred to the ,committee on ,homeland ,security and ,governmental ,affairs ,a ,,bill ,to amend title #e1 ,united ,states ,code1 to prevent fraud by representative payees4 #a4 ,short title ,this ,act may be cited as the ,representative ,payee ,fraud ,prevention ,act of #bjai4 #b4 ,representative payee fraud 7a7 ,definitions 7#a7 ,,csrs ,section #hcca of title #e1 ,united ,states ,code1 is amended-- 7,a7 in paragraph 7#ca71 by striking and at the end2 7,b7 in paragraph 7#cb71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7#cc7 representative payee means a person 7including an organization7 appointed under section #hcde7;e77#a7 to receive payments on behalf of a minor or an individual mentally incompetent or under other legal disability4 4 7#b7 ,,fers ,section #hdja of title #e1 ,united ,states ,code1 is amended-- 7,a7 in paragraph 7#cg71 by striking and at the end2 7,b7 in paragraph 7#ch71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7#ci7 representative payee means a person 7including an organization7 appointed under section #hdff7;c77#a7 to receive payments on behalf of a minor or an individual mentally incompetent or under other legal disability4 4 7b7 ,embezzlement or conversion 7#a7 ,,csrs ,subchapter ,,iii of chapter #hc of title #e1 ,united ,states ,code1 is amended by inserting after section #hcde the following3 #hcde;a4 ,embezzlement or conversion of payments 7a7 ,embezzling and conversion generally 7#a7 ,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 received4 7#b7 ,revocation ,if the ,office determines that a representative payee has embezzled or converted payments as described in paragraph 7#a71 the ,office shall promptly revoke payments to the representative payee4 7b7 ,penalty ,any person who violates subsection 7a77#a7 shall be fined under title #ah1 imprisoned for not more than #e years1 or both4 7c7 ,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 #hcde7;e7 as required by law shall be taken to be sufficient evidence prima facie of the embezzlement or conversion of such amounts4 4 7#b7 ,,fers ,subchapter ,,vi of chapter #hd of title #e1 ,united ,states ,code1 is amended by inserting after section #hdff the following3 #hdff;a4 ,embezzlement or conversion of payments 7a7 ,embezzling and conversion generally 7#a7 ,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 received4 7#b7 ,revocation ,if the ,office determines that a representative payee has embezzled or converted payments as described in paragraph 7#a71 the ,office shall promptly revoke payments to the representative payee4 7b7 ,penalty ,any person who violates subsection 7a77#a7 shall be fined under title #ah1 imprisoned for not more than #e years1 or both4 7c7 ,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 #hdff7;c7 as required by law shall be taken to be sufficient evidence prima facie of the embezzlement or conversion of such amounts4 4 7#c7 ,technical and conforming amendments 7,a7 ,the table of sections for chapter #hc of title #e1 ,united ,states ,code1 is amended by inserting after the item relating to section #hcde the following3 #hcde;a4 ,embezzlement or conversion of payments4 4 7,b7 ,the table of sections for chapter #hd of title #e1 ,united ,states ,code1 is amended by inserting after the item relating to section #hdff the following3 #hdff;a4 ,embezzlement or conversion of payments4 4 7c7 ,deferral of payment pending appointment of representative payee 7#a7 ,,csrs ,section #hcde7;e7 of title #e1 ,united ,states ,code1 is amended-- 7,a7 by inserting 7#a7 after 7e72 7,b7 in the first sentence1 by inserting 7including an organization7 after person2 7,c7 in the second sentence-- 7i7 by inserting 7including an organization7 after any person2 and 7ii7 by inserting and may appropriately receive such payments on behalf of the claimant after claimant2 and 7,d7 by adding at the end the following3 7#b7 ,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 individual1 the ,office may defer or suspend direct payment of the benefit until such time as the appointment of a representative payee is made4 4 7#b7 ,,fers ,section #hdff7;c7 of title #e1 ,united ,states ,code1 is amended-- 7,a7 by inserting 7#a7 after 7c72 7,b7 in the first sentence1 by inserting 7including an organization7 after person2 7,c7 in the second sentence-- 7i7 by inserting 7including an organization7 after any person2 and 7ii7 by inserting and may appropriately receive such payments on behalf of the claimant after claimant2 and 7,d7 by adding at the end the following3 7#b7 ,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 individual1 the ,office may defer or suspend direct payment of the benefit until such time as the appointment of a representative payee is made4 4 7d7 ,limitations on appointments of representative payees 7#a7 ,,csrs ,section #hcde of title #e1 ,united ,states ,code1 is amended by inserting after subsection 7e7 the following3 7f7 ,the ,office may not authorize a person to receive payments on behalf of a minor or individual of legal disability under subsection 7e7 if that person has been convicted of a violation of-- 7#a7 section #hcde;a or #hdff;a2 7#b7 section #bjh or #afcb of the ,social ,security ,act 7#db ,u4,s4,c4 #djh and #achc;a72 or 7#c7 section #faja of title #ch4 4 7#b7 ,,fers ,section #hdff of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 7d7 ,the ,office may not authorize a person to receive payments on behalf of a minor or individual of legal disability under subsection 7c7 if that person has been convicted of a violation of-- 7#a7 section #hcde;a or #hdff;a2 7#b7 section #bjh or #afcb of the ,social ,security ,act 7#db ,u4,s4,c4 #djh and #achc;a72 or 7#c7 section #faja of title #ch4 4 #c4 ,implementation 7a7 ,authorization of payments ,amounts in the ,civil ,service ,retirement and ,disability ,fund may be used by the ,office of ,personnel ,management1 without further appropriation1 for the cost of activities of the ,office relating to preventing fraud by representative payees 7as defined in section #hcca and #hdja of title #e1 ,united ,states ,code1 as amended by this ,act74 7b7 ,regulations ,not later than #a year after the date of enactment of this ,act1 the ,office of ,personnel ,management-- 7#a7 shall promulgate regulations to carry out the amendments made by this ,act2 and 7#b7 may promulgate additional regulations relating to the administration of the representative payee program4 #d4 ,effective date ,the amendments made by this ,act-- 7#a7 shall take effect on the date of the enactment of this ,act2 and 7#b7 apply on and after the effective date of the regulations promulgated under section #c7;b77#a74