[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4878 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 4878

   To provide for reduction of improper payments by Federal agencies.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 6, 2002

    Mr. Horn (for himself and Mr. Burton of Indiana) introduced the 
   following bill; which was referred to the Committee on Government 
                                 Reform

_______________________________________________________________________

                                 A BILL


 
   To provide for reduction of improper payments by Federal agencies.

    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 ``Improper Payments Reduction Act of 
2002''.

SEC. 2. DEFINITIONS.

    For the purposes of this Act:
            (1) Payment.--The term ``payment'' means any payment 
        (including a commitment for future payment, such as a loan 
        guarantee) that is--
                    (A) made by a Federal agency, a Federal contractor, 
                or a governmental or other organization administering a 
                Federal program or activity; and
                    (B) derived from Federal funds or other Federal 
                resources or that will be reimbursed from Federal funds 
                or other Federal resources.
            (2) Improper payment.--The term ``improper payment''--
                    (A) means any payment that should not have been 
                made or that was made in an incorrect amount (including 
                overpayments and underpayments) under statutory, 
                contractual, administrative, or other legally 
                applicable requirements; and
                    (B) includes any payment to an ineligible 
                recipient, any payment for an ineligible service, any 
                duplicate payment, payments for services not received, 
                and any payment that does not account for credit for 
                applicable discounts.
            (3) Agency.--The term ``agency'' means an executive agency, 
        as that term is defined in section 102 of title 31, United 
        States Code.

SEC. 3. ESTIMATES OF IMPROPER PAYMENTS AND REDUCTION TARGETS.

    (a) Identification of Susceptible Programs and Activities.--The 
head of each agency shall, in accordance with guidance prescribed under 
section 4, annually review all programs and activities that it 
administers and identify all such programs and activities that may be 
susceptible to significant improper payments.
    (b) Estimation of Improper Payment.--With respect to each program 
and activity identified under subsection (a), the head of the agency 
concerned shall--
            (1) estimate the annual amount of improper payments; and
            (2) include that estimate in its annual budget submission 
        and its annual program performance report under section 1116 of 
        title 31, United States Code.
    (c) Reduction of Improper Payments.--With respect to any program or 
activity of an agency with estimated improper payments under subsection 
(b) that exceed one percent of the total program or activity budget or 
$1,000,000 annually (whichever is less), the head of the agency shall--
            (1) estimate the minimal level to which improper payments 
        can be reduced on a cost-effective basis;
            (2) establish annual performance targets to reduce such 
        improper payments by specific amounts each year, that will 
        result in reducing improper payments to the minimal level as 
        soon as practical;
            (3) ensure that responsible agency managers (including the 
        agency head) are held accountable for meeting the performance 
        targets established under paragraph (2); and
            (4) describe in the agency's annual budget submissions and 
        program performance reports--
                    (A) the agency's performance in meeting the targets 
                established under paragraph (2); and
                    (B) how managers have been held accountable for 
                that performance.

SEC. 4. GUIDANCE BY THE OFFICE OF MANAGEMENT AND BUDGET.

    The Director of the Office of Management and Budget shall prescribe 
guidance to implement the requirements of this Act not later than 30 
days after the date of the enactment of this Act.
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