[House Report 114-299]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 114-299
======================================================================
FEDERAL IMPROPER PAYMENTS COORDINATION ACT OF 2015
_______
October 20, 2015.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Chaffetz, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
[To accompany H.R. 2320]
[Including cost estimate of the Congressional Budget Office]
The Committee on Oversight and Government Reform, to whom
was referred the bill (H.R. 2320) to provide access to and use
of information by Federal agencies in order to reduce improper
payments, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
CONTENTS
Page
Committee Statement and Views.................................... 3
Section-by-Section............................................... 5
Explanation of Amendments........................................ 6
Committee Consideration.......................................... 6
Roll Call Votes.................................................. 6
Application of Law to the Legislative Branch..................... 6
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 6
Statement of General Performance Goals and Objectives............ 6
Duplication of Federal Programs.................................. 6
Disclosure of Directed Rule Makings.............................. 7
Federal Advisory Committee Act................................... 7
Unfunded Mandate Statement....................................... 7
Earmark Identification........................................... 7
Committee Estimate............................................... 7
Budget Authority and Congressional Budget Office Cost Estimate... 7
Changes in Existing Law Made by the Bill, as Reported............ 9
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Improper Payments Coordination
Act of 2015''.
SEC. 2. AVAILABILITY OF THE DO NOT PAY INITIATIVE TO THE JUDICIAL AND
LEGISLATIVE BRANCHES AND STATES.
Section 5 of the Improper Payments Elimination and Recovery
Improvement Act of 2012 (31 U.S.C. 3321 note) is amended--
(1) in subsection (b)(3)--
(A) in the paragraph heading, by striking ``by
agencies''; and
(B) by adding at the end the following: ``States and
any contractor, subcontractor, or agent of a State, and
the judicial and legislative branches of the United
States (as defined in paragraphs (2) and (3),
respectively, of section 202(e) of title 18, United
States Code), shall have access to, and use of, the Do
Not Pay Initiative for the purpose of verifying payment
or award eligibility for payments (as defined in
section 2(g)(3) of the Improper Payments Information
Act of 2002 (31 U.S.C. 3321 note)) when, with respect
to a State, the Director of the Office of Management
and Budget determines that the Do Not Pay Initiative is
appropriately established for that State and any
contractor, subcontractor, or agent of the State, and,
with respect to the judicial and legislative branches
of the United States, when the Director of the Office
of Management and Budget determines that the Do Not Pay
Initiative is appropriately established for the
judicial branch or the legislative branch, as
applicable. To ensure consistency with the principles
of section 552a of title 5, United States Code
(commonly known as the Privacy Act of 1974) the
Director of the Office of Management and Budget may
issue guidance that establishes privacy and other
requirements that shall be incorporated into Do Not Pay
Initiative access agreements with States, including any
contractor, subcontractor, or agent of a State, and the
judicial and legislative branches of the United
States.''; and
(2) in subsection (d)(2)--
(A) in subparagraph (B), by striking ``and'' after
the semicolon;
(B) in subparagraph (C), by striking the period at
the end and inserting ``; and''; and
(C) by inserting after subparagraph (C) the
following:
``(D) may include States and their quasi-government
entities, and the judicial and legislative branches of
the United States (as defined in paragraphs (2) and
(3), respectively, of section 202(e) of title 18,
United States Code) as users of the system in
accordance with subsection (b)(3).''.
SEC. 3. IMPROVING THE SHARING AND USE OF DATA BY GOVERNMENT AGENCIES TO
CURB IMPROPER PAYMENTS.
The Improper Payments Elimination and Recovery Improvement Act of
2012 (31 U.S.C. 3321 note) is amended--
(1) in section 5(a)(2), by striking subparagraph (A) and
inserting the following:
``(A) The death records maintained by the
Commissioner of Social Security.''; and
(2) by adding at the end the following:
``SEC. 7. IMPROVING THE USE OF DATA BY GOVERNMENT AGENCIES FOR CURBING
IMPROPER PAYMENTS.
``(a) Prompt Reporting of Death Information by the Department of
State and the Department of Defense.--Not later than 1 year after the
date of enactment of this section, the Secretary of State and the
Secretary of Defense shall establish a procedure under which each
Secretary shall, promptly and on a regular basis, submit information
relating to the deaths of individuals to each agency for which the
Director of the Office of Management and Budget determines receiving
and using such information would be relevant and necessary.
``(b) Guidance to Agencies Regarding Data Access and Use for Improper
Payments Purposes.--
``(1) In general.--Not later than 12 months after the date of
enactment of this section, the Director of the Office of
Management and Budget, in consultation with the Council of the
Inspectors General on Integrity and Efficiency, the heads of
other relevant Federal, State, and local agencies, and Indian
tribes and tribal organizations, as appropriate, shall issue
guidance regarding implementation of the Do Not Pay Initiative
under section 5 to--
``(A) the Department of the Treasury; and
``(B) each agency or component of an agency--
``(i) that operates or maintains a database
of information described in section 5(a)(2); or
``(ii) for which the Director determines
improved data matching would be relevant,
necessary, or beneficial.
``(2) Requirements.--The guidance issued under paragraph (1)
shall--
``(A) address the implementation of subsection (a);
and
``(B) include the establishment of deadlines for
access to and use of the databases described in section
5(a)(2) under the Do Not Pay Initiative.''.
SEC. 4. DATA ANALYTICS.
Section 5 of the Improper Payments Elimination and Recovery
Improvement Act of 2012 (31 U.S.C. 3321 note), is amended by adding at
the end the following:
``(h) Report on Improper Payments Data Analysis.--Not later than 180
days after the date of enactment of the Federal Improper Payments
Coordination Act of 2015, the Secretary of the Treasury shall submit to
Congress a report which shall include a description of--
``(1) data analytics performed as part of the Do Not Pay
Business Center operated by the Department of the Treasury for
the purpose of detecting, preventing, and recovering improper
payments through preaward, postaward prepayment, and
postpayment analysis, which shall include a description of any
analysis or investigations incorporating--
``(A) review and data matching of payments and
beneficiary enrollment lists of State programs carried
out using Federal funds for the purposes of identifying
eligibility duplication, residency ineligibility,
duplicate payments, or other potential improper payment
issues;
``(B) review of multiple Federal agencies and
programs for which comparison of data could show
payment duplication; and
``(C) review of other information the Secretary of
the Treasury determines could prove effective for
identifying, preventing, or recovering improper
payments, which may include investigation or review of
information from multiple Federal agencies or programs;
``(2) the metrics used in determining whether the analytic
and investigatory efforts have reduced, or contributed to the
reduction of, improper payments or improper awards; and
``(3) the target dates for implementing the data analytics
operations performed as part of the Do Not Pay Business
Center.''.
Committee Statement and Views
PURPOSE AND SUMMARY
H.R. 2320, the Federal Improper Payments Coordination Act
of 2015, reduces improper payments by making data available to
program administrators. The bill expands access to databases
included in the Do Not Pay Initiative to states, state
contractors, and the judicial and legislative branches of the
United States. H.R. 2320 expands access to death records to
verify eligibility for payments and awards. The bill also
requires the Department of Treasury to submit a report on its
work to reduce improper payments through the Do Not Pay Center.
BACKGROUND AND NEED FOR LEGISLATION
Federal agencies make more than $2 trillion in payments to
individuals and a variety of other entities each year.\1\ In
each of the last six years, federal agencies have made more
than $100 billion in improper payments.\2\ Improper payments
include payments made to ineligible recipients, duplicate
payments, payments for goods or services not received, and
payments that do not account for credit or applicable
discounts.\3\ Since government agencies first began reporting
in 2004, the federal government has made nearly $1 trillion in
improper payments.\4\
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\1\Dep't of Treasury Bureau of the Fiscal Service, Do Not Pay
Agency Implementation Guide For Treasury's Working System (Dec. 2014),
available at donotpay.treas.gov/DNPAgency ImplementationGuidePublic.pdf
(last visited Sept. 22, 2015).
\2\Office of Mgmt. & Budget, Improper Payment Amounts (FYs 2004-
2014), available at paymentaccuracy.gov/improper-payment-amounts (last
visited Sept. 22, 2015) (hereinafter Improper Payment Amounts (FYs
2004-2014)).
\3\Congressional Research Serv., Improper Payments in High Priority
Programs: In Brief (Aug. 18, 2014) (R43694) (hereinafter Improper
Payments in High Priority Programs: In Brief).
\4\Improper Payment Amounts (FYs 2004-2014), supra note 2.
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H.R. 4878, the Improper Payments Information Act (IPIA) of
2002,\5\ directed federal agencies to identify programs with
excessive improper payments and report the estimated rate of
improper payments. Reporting began in fiscal year 2004.\6\ In
2006, the Government Accountability Office reported that the
first two years of IPIA reporting failed to capture the full
scope of federal improper payments.\7\ In 2010, Congress passed
the Improper Payments Elimination and Recovery Act (IPERA)\8\
to establish specific requirements for identifying programs
with significant improper payments, impose requirements to
audit programs to recover improper payments, and require the
agency's inspector general to review compliance with IPIA and
IPERA.
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\5\Improper Payments Info. Act of 2002, Pub. L. No. 107-300.
\6\Improper Payments in High Priority Programs: In Brief, supra
note 3.
\7\Gov't Accountability Office, Incomplete Reporting under the
Improper Payments Info. Act Masks the Extent of the Problem (Dec. 5,
2006) (GAO-07-254T).
\8\Improper Payments Elimination & Recovery Act of 2010, Pub. L.
No. 111-204.
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In 2012, Congress revisited improper payments and passed
the Improper Payments Elimination and Recovery Improvement Act
of 2012 (IPERIA). IPERIA expanded the requirements placed on
agencies to report, identify, and recover improper payments
through reduction targets and error rates.\9\ IPERIA also
codified and expanded the Do Not Pay Initiative, which now
serves as a central location for agencies to check payment data
against multiple other databases to verify eligibility. To
date, the statutory requirements of the Do Not Pay Initiative
have not been fully implemented, such as full participation
from all federal agencies. To help ensure statutory compliance,
the Committee expects that the Department of Treasury
encourage, provide and maintain access to the Do Not Pay
Initiative as a one-stop data shop, including through the use
of single agreements for access to all of the databases that
make up the Do Not Pay Business Center.
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\9\Gov't Accountability Office, OIG Improper Payment Reporting, at
1, (Dec. 9, 2014) (GAO-15-87R).
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H.R. 2320 reforms the methods used to identify and track
improper payments, specifically providing ``states and any
contractor, subcontractor or agency of the State, and the
judicial and legislative branches of the United States'' access
to the Do Not Pay Initiative, as well as expanded access to
death records and reporting. To gain a better understanding of
what the Department of Treasury needs to fully implement the
requirements in IPERIA, H.R. 2320 requires Treasury to produce
a report on the data analytic capabilities of the Do Not Pay
Business Center.
LEGISLATIVE HISTORY
H.R. 2320, the Federal Improper Payments Coordination Act
of 2015, was introduced by Congressman Mick Mulvaney (R-SC) on
May 14, 2015 and referred to the Committee on Oversight and
Government Reform. On July 22, 2015, the Committee on Oversight
and Government Reform ordered H.R. 2320 favorably reported,
with an amendment in the nature of a substitute offered by
Congressman Mulvaney. Congresswoman Cheri Bustos (D-IL),
Congressman Earl L. ``Buddy'' Carter (R-GA), Congressman Gerald
Connolly (D-VA), and Congressman Lynn Westmoreland (R-GA) are
original cosponsors.
The companion bill, S. 614, was introduced by Senator
Thomas R. Carper (D-DE) on February 7, 2015 and referred to the
Senate Committee on Homeland Security and Governmental Affairs.
On March 4, 2015, the Committee on Homeland Security and
Governmental Affairs ordered S. 614 favorably reported, without
amendment, by voice vote, en bloc. S. 614 passed the Senate by
unanimous consent on July 28, 2015. The bill was sent to the
House and held at the desk.
During the 113th Congress, Senator Carper introduced
legislation that included the concepts of S. 614 on July 24,
2013. The bill, S. 1360, was ordered reported by the Committee
on Homeland Security and Governmental Affairs on July 31, 2013
and passed the Senate by unanimous consent on September 18,
2014. The legislation was held at the desk by the House.
Congresswoman Cheri Bustos (D-IL) introduced the companion
bill, H.R. 3555, on November 20, 2013, which was referred to
the Committees on Oversight and Government Reform and Ways and
Means. No further action was taken.
Section-by-Section
Section 1. Short title
Designates the short title of the bill as the ``Federal
Improper Payments Coordination Act of 2015''.
Section 2. Availability of the Do Not Pay Initiative to the judicial
and legislative branches and states
Expands access to the Do Not Pay Center to states and any
contractor, subcontractor or agency of the State, and the
judicial and legislative branches of the United States.
Section 3. Improving the sharing and use of data by government agencies
to curb improper payments
Expands the requirement that agencies review certain
databases prior to issuing any payment or award to verify
eligibility to include the death records maintained by the
Commissioner of Social Security.
Requires the Secretaries of State and Defense to establish
a procedure to submit information relating to deaths of
individuals to agencies as determined by the Director of the
Office of Management and Budget (OMB).
Requires OMB to issue guidance on implementing the Do Not
Pay Initiative to address the procedures established by
Secretaries of State and Defense to disseminate death
information and to establish deadlines for access and use of
certain databases to determine eligibility prior to issuing a
payment or award.
Section 4. DATA analytics
Requires the Department of Treasury to issue a report on
data analytics performed by the Do Not Pay Center, metrics used
to determine if efforts have reduced improper payments, and
target dates for implementing the data analytics operations
performed as part of the Do Not Pay Center.
Explanation of Amendments
Congressman Mulvaney offered an amendment in the nature of
a substitute to the bill. The amendment allows the Director of
the Office of Management and Budget to establish privacy and
other requirements to be incorporated into the Do Not Pay
program access agreements with the States, state contractors,
and judicial and legislative branches. The amendment was
adopted by voice vote.
Committee Consideration
On July 22, 2015, the Committee met in open session and
ordered reported favorably the bill, H.R. 2320, as amended, by
voice vote, a quorum being present.
Roll Call Votes
No recorded votes were taken during Full Committee
consideration of the bill.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to the terms and conditions of
employment or access to public services and accommodations.
This bill enhances access to the Do Not Pay center as a tool to
identify fraud and other improper payments. As such this bill
does not relate to employment or access to public services and
accommodations.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goal or objective of the bill is to provide access to and use
of information by Federal agencies in order to reduce improper
payments.
Duplication of Federal Programs
No provision of this bill establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The Committee estimates that enacting this bill does not
direct the completion of any specific rule makings within the
meaning of 5 U.S.C. 551. The bill requires the Office of
Management and Budget to issue guidance on implementing the Do
Not Pay Initiative to address the procedures established by
Secretaries of State and Defense to disseminate death
information and to establish deadlines for access and use of
certain databases to determine eligibility prior to issuing a
payment or award.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., Section 5(b).
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement as to
whether the provisions of the reported bill include unfunded
mandates. In compliance with this requirement the Committee has
received a letter from the Congressional Budget Office included
herein.
Earmark Identification
This bill does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Committee Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
this bill. However, clause 3(d)(2)(B) of that rule provides
that this requirement does not apply when the Committee has
included in its report a timely submitted cost estimate of the
bill prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for this bill from the Director of
Congressional Budget Office:
H.R. 2320--Federal Improper Payments Coordination Act of 2015
H.R. 2320 would amend federal law with an aim to reduce
improper payments made by the federal government. Improper
payments occur when funds are paid to the wrong recipient, the
recipient receives the incorrect amount of funds, documentation
is not available to support a payment, or the recipient uses
funds in an improper manner.\1\ Specifically, the legislation
would authorize the judicial and legislative branches, as well
as state government agencies that manage federal programs, to
use the Treasury Department's Do Not Pay (DNP) Program. The
Office of Management and Budget (OMB) would provide guidance on
its use. (Agencies use that program to check various databases
before making payments or contract awards in order to identify
ineligible recipients and to prevent other payment errors.)
H.R. 2320 also would direct the Secretaries of State and
Defense to improve the accuracy of their payment systems by
sharing information relating to the deaths of individuals.
Finally, the Secretary of the Treasury would be required to
submit a report to the Congress on efforts to reduce improper
payments.
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\1\A fraudulent payment (the intentional misuse of funds) may be
related to an improper payment, but they are not necessarily the same.
Efforts to curtail improper payments do not exclusively target fraud
prevention. For additional information see: Congressional Budget
Office: How Initiatives to Reduce Fraud in Federal Health Care Programs
Affect the Budget (October 2014).
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OMB reports that about $125 billion in improper payments
were made by the federal government in 2014, which represented
about 4 percent of the $3 trillion in government-wide spending
that year. Although implementing the bill would probably result
in fewer improper payments, any subsequent budgetary savings
would not be significant for several reasons:
Most improper payments result from
incomplete documentation related to the payment and
correcting that documentation usually does not alter
the amount of the payment;
Over 80 percent of improper payments stem
from the larger federal entitlement programs such as
Medicare, Medicaid, Unemployment Insurance, and
Supplemental Security Income. The bill would not
provide any new authorities to help those programs
reduce improper payments;
The judicial and legislative branches of the
government can already access the DNP program under
current law, according to Treasury Department
officials;
Spending by those branches represents less
than 1 percent of total federal spending and most of it
is for salaries and expenses. Such spending generally
does not result in large numbers of improper payments;
State and local governments already use
databases similar to the DNP to detect improper
payments.
In fact, no measures used by OMB or evidence from the
Government Accountability Office (GAO) indicate that focusing
on correcting improper payments would lead to a significant
reduction in federal spending.
Because enacting the bill could affect direct spending for
federal entitlement programs, pay-as-you-go procedures apply.
However, CBO estimates that any change in direct spending would
not be significant for the reasons stated above. We also
estimate that implementing H.R. 2320 would result in additional
spending of about $1 million in 2016 and less than $500,000 in
subsequent years, primarily to cover additional administrative
costs by OMB and the Departments of Defense, State, and the
Treasury. Such additional spending would be subject to the
availability of appropriated funds.
H.R. 2320 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
On June 18, 2015, CBO provided a cost estimate for S. 614,
the Federal Improper Payments Coordination Act of 2015, as
ordered reported by the Senate Committee on Homeland Security
and Governmental Affairs on March 4, 2015. While both bills
have identical provisions dealing with improper payments, H.R.
2320 includes additional responsibilities for OMB. The CBO cost
estimates reflect that difference.
The CBO staff contact for this estimate is Matthew
Pickford. The estimate was approved by Theresa Gullo, Assistant
Director for Budget Analysis.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
IMPROPER PAYMENTS ELIMINATION AND RECOVERY IMPROVEMENT ACT OF 2012
* * * * * * *
SEC. 5. DO NOT PAY INITIATIVE.
(a) Prepayment and Preaward Procedures.--
(1) In general.--Each agency shall review prepayment
and preaward procedures and ensure that a thorough
review of available databases with relevant information
on eligibility occurs to determine program or award
eligibility and prevent improper payments before the
release of any Federal funds.
(2) Databases.--At a minimum and before issuing any
payment and award, each agency shall review as
appropriate the following databases to verify
eligibility of the payment and award:
[(A) The Death Master File of the Social
Security Administration.]
(A) The death records maintained by the
Commissioner of Social Security.
(B) The General Services Administration's
Excluded Parties List System.
(C) The Debt Check Database of the Department
of the Treasury.
(D) The Credit Alert System or Credit Alert
Interactive Voice Response System of the
Department of Housing and Urban Development.
(E) The List of Excluded Individuals/Entities
of the Office of Inspector General of the
Department of Health and Human Services.
(F) Information regarding incarcerated
individuals maintained by the Commissioner of
Social Security under sections 202(x) and
1611(e) of the Social Security Act.
(b) Do Not Pay Initiative.--
(1) Establishment.--There is established the Do Not
Pay Initiative which shall include--
(A) use of the databases described under
subsection (a)(2); and
(B) use of other databases designated by the
Director of the Office of Management and Budget
in consultation with agencies and in accordance
with paragraph (2).
(2) Other databases.--In making designations of other
databases under paragraph (1)(B), the Director of the
Office of Management and Budget shall--
(A) consider any database that substantially
assists in preventing improper payments; and
(B) provide public notice and an opportunity
for comment before designating a database under
paragraph (1)(B).
(3) Access and review [by agencies].--For purposes of
identifying and preventing improper payments, each
agency shall have access to, and use of, the Do Not Pay
Initiative to verify payment or award eligibility in
accordance with subsection (a) when the Director of the
Office of Management and Budget determines the Do Not
Pay Initiative is appropriately established for the
agency. States and any contractor, subcontractor, or
agent of a State, and the judicial and legislative
branches of the United States (as defined in paragraphs
(2) and (3), respectively, of section 202(e) of title
18, United States Code), shall have access to, and use
of, the Do Not Pay Initiative for the purpose of
verifying payment or award eligibility for payments (as
defined in section 2(g)(3) of the Improper Payments
Information Act of 2002 (31 U.S.C. 3321 note)) when,
with respect to a State, the Director of the Office of
Management and Budget determines that the Do Not Pay
Initiative is appropriately established for that State
and any contractor, subcontractor, or agent of the
State, and, with respect to the judicial and
legislative branches of the United States, when the
Director of the Office of Management and Budget
determines that the Do Not Pay Initiative is
appropriately established for the judicial branch or
the legislative branch, as applicable. To ensure
consistency with the principles of section 552a of
title 5, United States Code (commonly known as the
Privacy Act of 1974) the Director of the Office of
Management and Budget may issue guidance that
establishes privacy and other requirements that shall
be incorporated into Do Not Pay Initiative access
agreements with States, including any contractor,
subcontractor, or agent of a State, and the judicial
and legislative branches of the United States.
(4) Payment otherwise required.--When using the Do
Not Pay Initiative, an agency shall recognize that
there may be circumstances under which the law requires
a payment or award to be made to a recipient,
regardless of whether that recipient is identified as
potentially ineligible under the Do Not Pay Initiative.
(5) Annual report.--The Director of the Office of
Management and Budget shall submit to Congress an
annual report, which may be included as part of another
report submitted to Congress by the Director, regarding
the operation of the Do Not Pay Initiative, which
shall--
(A) include an evaluation of whether the Do
Not Pay Initiative has reduced improper
payments or improper awards; and
(B) provide the frequency of corrections or
identification of incorrect information.
(c) Database Integration Plan.--Not later than 60 days after
the date of enactment of this Act, the Director of the Office
of Management and Budget shall provide to the Congress a plan
for--
(1) inclusion of other databases on the Do Not Pay
Initiative;
(2) to the extent permitted by law, agency access to
the Do Not Pay Initiative; and
(3) the data use agreements described under
subsection (e)(2)(D).
(d) Initial Working System.--
(1) Establishment.--Not later than 90 days after the
date of enactment of this Act, the Director of the
Office of Management and Budget shall establish a
working system for prepayment and preaward review that
includes the Do Not Pay Initiative as described under
this section.
(2) Working system.--The working system established
under paragraph (1)--
(A) may be located within an appropriate
agency;
(B) shall include not less than 3 agencies as
users of the system; [and]
(C) shall include investigation activities
for fraud and systemic improper payments
detection through analytic technologies and
other techniques, which may include commercial
database use or access[.]; and
(D) may include States and their quasi-
government entities, and the judicial and
legislative branches of the United States (as
defined in paragraphs (2) and (3),
respectively, of section 202(e) of title 18,
United States Code) as users of the system in
accordance with subsection (b)(3).
(3) Application to all agencies.--Not later than June
1, 2013, each agency shall review all payments and
awards for all programs of that agency through the
system established under this subsection.
(e) Facilitating Data Access by Federal Agencies and Offices
of Inspectors General for Purposes of Program Integrity.--
(1) Definition.--In this subsection, the term
``Inspector General'' means any Inspector General
described in subparagraph (A), (B), or (I) of section
11(b)(1) of the Inspector General Act of 1978 (5 U.S.C.
App.) and any successor Inspector General.
(2) Computer matching by federal agencies for
purposes of investigation and prevention of improper
payments and fraud.--
(A) In general.--Except as provided in this
paragraph, in accordance with section 552a of
title 5, United States Code (commonly known as
the Privacy Act of 1974), each Inspector
General and the head of each agency may enter
into computer matching agreements with other
inspectors general and agency heads that allow
ongoing data matching (which shall include
automated data matching) in order to assist in
the detection and prevention of improper
payments.
(B) Review.--Not later than 60 days after a
proposal for an agreement under subparagraph
(A) has been presented to a Data Integrity
Board established under section 552a(u) of
title 5, United States Code, for consideration,
the Data Integrity Board shall respond to the
proposal.
(C) Termination date.--An agreement under
subparagraph (A)--
(i) shall have a termination date of
less than 3 years; and
(ii) during the 3-month period ending
on the date on which the agreement is
scheduled to terminate, may be renewed
by the agencies entering the agreement
for not more than 3 years.
(D) Multiple agencies.--For purposes of this
paragraph, section 552a(o)(1) of title 5,
United States Code, shall be applied by
substituting ``between the source agency and
the recipient agency or non-Federal agency or
an agreement governing multiple agencies'' for
``between the source agency and the recipient
agency or non-Federal agency'' in the matter
preceding subparagraph (A).
(E) Cost-benefit analysis.--A justification
under section 552a(o)(1)(B) of title 5, United
States Code, relating to an agreement under
subparagraph (A) is not required to contain a
specific estimate of any savings under the
computer matching agreement.
(3) Guidance by the office of management and
budget.--Not later than 6 months after the date of
enactment of this Act, and in consultation with the
Council of the Inspectors General on Integrity and
Efficiency, the Secretary of Health and Human Services,
the Commissioner of Social Security, and the head of
any other relevant agency, the Director of the Office
of Management and Budget shall--
(A) issue guidance for agencies regarding
implementing this subsection, which shall
include standards for--
(i) reimbursement of costs, when
necessary, between agencies;
(ii) retention and timely destruction
of records in accordance with section
552a(o)(1)(F) of title 5, United States
Code; and
(iii) prohibiting duplication and
redisclosure of records in accordance
with section 552a(o)(1)(H) of title 5,
United States Code;
(B) review the procedures of the Data
Integrity Boards established under section
552a(u) of title 5, United States Code, and
develop new guidance for the Data Integrity
Boards to--
(i) improve the effectiveness and
responsiveness of the Data Integrity
Boards;
(ii) ensure privacy protections in
accordance with section 552a of title
5, United States Code (commonly known
as the Privacy Act of 1974); and
(iii) establish standard matching
agreements for use when appropriate;
and
(C) establish and clarify rules regarding
what constitutes making an agreement entered
under paragraph (2)(A) available upon request
to the public for purposes of section
552a(o)(2)(A)(ii) of title 5, United States
Code, which shall include requiring publication
of the agreement on a public website.
(4) Corrections.--The Director of the Office of
Management and Budget shall establish procedures
providing for the correction of data in order to
ensure--
(A) compliance with section 552a(p) of title
5, United States Code; and
(B) that corrections are made in any Do Not
Pay Initiative database and in any relevant
source databases designated by the Director of
the Office of Management and Budget under
subsection (b)(1).
(5) Compliance.--The head of each agency, in
consultation with the Inspector General of the agency,
shall ensure that any information provided to an
individual or entity under this subsection is provided
in accordance with protocols established under this
subsection.
(6) Rule of construction.--Nothing in this subsection
shall be construed to affect the rights of an
individual under section 552a(p) of title 5, United
States Code.
(f) Development and Access to a Database of Incarcerated
Individuals.--Not later than 1 year after the date of enactment
of this Act, the Attorney General shall submit to Congress
recommendations for increasing the use of, access to, and the
technical feasibility of using data on the Federal, State, and
local conviction and incarceration status of individuals for
purposes of identifying and preventing improper payments by
Federal agencies and programs and fraud.
(g) Plan To Curb Federal Improper Payments to Deceased
Individuals by Improving the Quality and Use by Federal
Agencies of the Social Security Administration Death Master
File.--
(1) Establishment.--In conjunction with the
Commissioner of Social Security and in consultation
with relevant stakeholders that have an interest in or
responsibility for providing the data, and the States,
the Director of the Office of Management and Budget
shall establish a plan for improving the quality,
accuracy, and timeliness of death data maintained by
the Social Security Administration, including death
information reported to the Commissioner under section
205(r) of the Social Security Act (42 U.S.C. 405(r)).
(2) Additional actions under plan.--The plan
established under this subsection shall include
recommended actions by agencies to--
(A) increase the quality and frequency of
access to the Death Master File and other death
data;
(B) achieve a goal of at least daily access
as appropriate;
(C) provide for all States and other data
providers to use improved and electronic means
for providing data;
(D) identify improved methods by agencies for
determining ineligible payments due to the
death of a recipient through proactive
verification means; and
(E) address improper payments made by
agencies to deceased individuals as part of
Federal retirement programs.
(3) Report.--Not later than 120 days after the date
of enactment of this Act, the Director of the Office of
Management and Budget shall submit a report to Congress
on the plan established under this subsection,
including recommended legislation.
(h) Report on Improper Payments Data Analysis.--Not later
than 180 days after the date of enactment of the Federal
Improper Payments Coordination Act of 2015, the Secretary of
the Treasury shall submit to Congress a report which shall
include a description of--
(1) data analytics performed as part of the Do Not
Pay Business Center operated by the Department of the
Treasury for the purpose of detecting, preventing, and
recovering improper payments through preaward,
postaward prepayment, and postpayment analysis, which
shall include a description of any analysis or
investigations incorporating--
(A) review and data matching of payments and
beneficiary enrollment lists of State programs
carried out using Federal funds for the
purposes of identifying eligibility
duplication, residency ineligibility, duplicate
payments, or other potential improper payment
issues;
(B) review of multiple Federal agencies and
programs for which comparison of data could
show payment duplication; and
(C) review of other information the Secretary
of the Treasury determines could prove
effective for identifying, preventing, or
recovering improper payments, which may include
investigation or review of information from
multiple Federal agencies or programs;
(2) the metrics used in determining whether the
analytic and investigatory efforts have reduced, or
contributed to the reduction of, improper payments or
improper awards; and
(3) the target dates for implementing the data
analytics operations performed as part of the Do Not
Pay Business Center
* * * * * * *
SEC. 7. IMPROVING THE USE OF DATA BY GOVERNMENT AGENCIES FOR CURBING
IMPROPER PAYMENTS.
(a) Prompt Reporting of Death Information by the Department
of State and the Department of Defense.--Not later than 1 year
after the date of enactment of this section, the Secretary of
State and the Secretary of Defense shall establish a procedure
under which each Secretary shall, promptly and on a regular
basis, submit information relating to the deaths of individuals
to each agency for which the Director of the Office of
Management and Budget determines receiving and using such
information would be relevant and necessary.
(b) Guidance to Agencies Regarding Data Access and Use for
Improper Payments Purposes.--
(1) In general.--Not later than 12 months after the
date of enactment of this section, the Director of the
Office of Management and Budget, in consultation with
the Council of the Inspectors General on Integrity and
Efficiency, the heads of other relevant Federal, State,
and local agencies, and Indian tribes and tribal
organizations, as appropriate, shall issue guidance
regarding implementation of the Do Not Pay Initiative
under section 5 to--
(A) the Department of the Treasury; and
(B) each agency or component of an agency--
(i) that operates or maintains a
database of information described in
section 5(a)(2); or
(ii) for which the Director
determines improved data matching would
be relevant, necessary, or beneficial.
(2) Requirements.--The guidance issued under
paragraph (1) shall--
(A) address the implementation of subsection
(a); and
(B) include the establishment of deadlines
for access to and use of the databases
described in section 5(a)(2) under the Do Not
Pay Initiative.
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