[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4878 Referred in Senate (RFS)]

  2d Session
                                H. R. 4878


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 11 (legislative day, July 10), 2002

  Received; read twice and referred to the Committee on Governmental 
                                Affairs

_______________________________________________________________________

                                 AN ACT


 
 To provide for estimates and reports 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 Information Act of 
2002''.

SEC. 2. ESTIMATES OF IMPROPER PAYMENTS AND REPORTS ON ACTIONS TO REDUCE 
              THEM.

    (a) Identification of Susceptible Programs and Activities.--The 
head of each agency shall, in accordance with guidance prescribed by 
the Director of the Office of Management and Budget, 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.
    (c) Reports on Actions to Reduce 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 provide with the estimate under subsection 
(b) a report on what actions the agency is taking to reduce the 
improper payments, including--
            (1) a statement of whether the agency has the information 
        systems and other infrastructure it needs in order to reduce 
        improper payments to minimal cost-effective levels;
            (2) if the agency does not have such systems and 
        infrastructure, a description of the resources the agency has 
        requested in its budget submission to obtain the necessary 
        information systems and infrastructure; and
            (3) a description of the steps the agency has taken to 
        ensure that agency managers (including the agency head) are 
        held accountable for reducing improper payments.
    (d) Definitions.--For the purposes of this section:
            (1) Agency.--The term ``agency'' means an executive agency, 
        as that term is defined in section 102 of title 31, United 
        States Code.
            (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) 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.
    (e) Application.--This section--
            (1) applies with respect to the administration of programs, 
        and improper payments under programs, in fiscal years after 
        fiscal year 2002; and
            (2) requires the inclusion of estimates under subsection 
        (b)(2) only in annual budget submissions for fiscal years after 
        fiscal year 2003.
    (f) 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 section.

            Passed the House of Representatives July 9, 2002.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

                            By Martha C. Morrison,

                                                          Deputy Clerk.