[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2948 Reported in Senate (RS)]

<DOC>





                                                       Calendar No. 736
115th CONGRESS
  2d Session
                                S. 2948

                          [Report No. 115-445]

   To improve efforts to identify and reduce Governmentwide improper 
                   payments, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 24, 2018

 Mrs. McCaskill (for herself, Mr. Johnson, and Mr. Carper) introduced 
the following bill; which was read twice and referred to the Committee 
             on Homeland Security and Governmental Affairs

                           December 19, 2018

                Reported by Mr. Johnson, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL


 
   To improve efforts to identify and reduce Governmentwide improper 
                   payments, and for other purposes.

    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 ``Payment Integrity Information Act of 
2018''.

SEC. 2. IMPROPER PAYMENTS.

    (a) In General.--Chapter 33 of title 31, United States Code, is 
amended by adding at the end the following:

                   ``Subchapter IV--Improper Payments

``Sec. 3351. Definitions
    ``In this subchapter:
            ``(1) Annual financial statement.--The term `annual 
        financial statement' means the annual financial statement 
        required under section 3515 of this title or similar provision 
        of law.
            ``(2) Compliance.--The term `compliance' means that an 
        executive agency--
                    ``(A) has--
                            ``(i) published improper payments 
                        information with the annual financial statement 
                        of the executive agency for the most recent 
                        fiscal year; and
                            ``(ii) posted on the website of the 
                        executive agency that statement and any 
                        accompanying materials required under guidance 
                        of the Office of Management and Budget;
                    ``(B) if required, has conducted a program specific 
                risk assessment for each program or activity that 
                conforms with the requirements under section 3352(a);
                    ``(C) if required, publishes improper payments 
                estimates for all programs and activities identified 
                under section 3352(a) in the accompanying materials to 
                the annual financial statement;
                    ``(D) publishes programmatic corrective action 
                plans prepared under section 3352(d) that the executive 
                agency may have in the accompanying materials to the 
                annual financial statement;
                    ``(E) publishes improper payments reduction targets 
                established under section 3352(d) that the executive 
                agency may have in the accompanying materials to the 
                annual financial statement for each program or activity 
                assessed to be at risk, and has demonstrated 
                improvements and developed a plan to meet the reduction 
                targets; and
                    ``(F) has reported an improper payment rate of less 
                than 10 percent for each program and activity for which 
                an estimate was published under section 3352(c).
            ``(3) Do not pay initiative.--The term `Do Not Pay 
        Initiative' means the initiative described in section 3354(b).
            ``(4) 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 
                an overpayment or underpayment, under a statutory, 
                contractual, administrative, or other legally 
                applicable requirement; and
                    ``(B) includes--
                            ``(i) any payment to an ineligible 
                        recipient;
                            ``(ii) any payment for an ineligible good 
                        or service;
                            ``(iii) any duplicate payment;
                            ``(iv) any payment for a good or service 
                        not received, except for those payments where 
                        authorized by law; and
                            ``(v) any payment that does not account for 
                        credit for applicable discounts.
            ``(5) Payment.--The term `payment' means any transfer or 
        commitment for future transfer of Federal funds such as cash, 
        securities, loans, loan guarantees, and insurance subsidies to 
        any non-Federal person or entity or a Federal employee, that is 
        made by a Federal agency, a Federal contractor, a Federal 
        grantee, or a governmental or other organization administering 
        a Federal program or activity.
            ``(6) Payment for an ineligible good or service.--The term 
        `payment for an ineligible good or service' includes a payment 
        for any good or service that is rejected under any provision of 
        any contract, grant, lease, cooperative agreement, or other 
        funding mechanism.
            ``(7) Recovery audit.--The term `recovery audit' means a 
        recovery audit described in section 3352(i).
            ``(8) State.--The term `State' means each State of the 
        United States, the District of Columbia, each territory or 
        possession of the United States, and each Federally recognized 
        Indian tribe.
``Sec. 3352. Estimates of improper payments and reports on actions to 
              reduce improper payments
    ``(a) Identification of Susceptible Programs and Activities.--
            ``(1) In general.--The head of each executive agency shall, 
        in accordance with guidance prescribed by the Director of the 
        Office of Management and Budget--
                    ``(A) periodically review all programs and 
                activities that the head of the executive agency 
                administers; and
                    ``(B) identify all programs and activities with 
                outlays exceeding the statutory threshold dollar amount 
                described in paragraph (3)(A)(i) that may be 
                susceptible to significant improper payments.
            ``(2) Frequency.--A review under paragraph (1) shall be 
        performed for each program and activity that the head of an 
        executive agency administers not less frequently than once 
        every 3 fiscal years.
            ``(3) Risk assessments.--
                    ``(A) Definition of significant.--In this 
                paragraph, the term `significant' means that, in the 
                preceding fiscal year, the sum of a program or 
                activity's improper payments and payments whose 
                propriety cannot be determined by the executive agency 
                due to lacking or insufficient documentation may have 
                exceeded--
                            ``(i) $10,000,000 of all reported program 
                        or activity payments of the executive agency 
                        made during that fiscal year and 1.5 percent of 
                        program outlays; or
                            ``(ii) $100,000,000.
                    ``(B) Scope.--If In conducting a review under 
                paragraph (1), the head of each executive agency shall 
                take into account those risk factors that are likely to 
                contribute to a susceptibility to significant improper 
                payments, such as--
                            ``(i) whether the program or activity 
                        reviewed is new to the executive agency;
                            ``(ii) the complexity of the program or 
                        activity reviewed;
                            ``(iii) the volume of payments made through 
                        the program or activity reviewed;
                            ``(iv) whether payments or payment 
                        eligibility decisions are made outside of the 
                        executive agency, such as by a State or local 
                        government;
                            ``(v) recent major changes in program 
                        funding, authorities, practices, or procedures;
                            ``(vi) the level, experience, and quality 
                        of training for personnel responsible for 
                        making program eligibility determinations or 
                        certifying that payments are accurate;
                            ``(vii) significant deficiencies in the 
                        audit report of the executive agency or other 
                        relevant management findings that might hinder 
                        accurate payment certification;
                            ``(viii) similarities to other programs or 
                        activities that have reported improper payment 
                        estimates or been deemed susceptible to 
                        significant improper payments;
                            ``(ix) the accuracy and reliability of 
                        improper payment estimates previously reported 
                        for the program or activity, or other indicator 
                        of potential susceptibility to improper 
                        payments identified by the Inspector General of 
                        the executive agency, the Government 
                        Accountability Office, other audits performed 
                        by or on behalf of the Federal, State, or local 
                        government, disclosures by the executive 
                        agency, or any other means;
                            ``(x) whether the program or activity lacks 
                        information or data systems to confirm 
                        eligibility or provide for other payment 
                        integrity needs; and
                            ``(xi) the risk of fraud as assessed by the 
                        executive agency under the Standards for 
                        Internal Control in the Federal Government 
                        published by the Government Accountability 
                        Office (commonly known as the `Green Book').
                    ``(C) Annual report.--Each executive agency shall 
                publish an annual report that includes--
                            ``(i) a listing of each program or activity 
                        identified under paragraph (1), including the 
                        date on which the program or activity was most 
                        recently assessed for risk under paragraph (1); 
                        and
                            ``(ii) a listing of any program or activity 
                        for which the executive agency makes any 
                        substantial changes to the methodologies of the 
                        reviews conducted under paragraph (1).
    ``(b) Improving the Determination of Improper Payments.--
            ``(1) In general.--The Director of the Office of Management 
        and Budget shall on an annual basis--
                    ``(A) identify a list of high-priority Federal 
                programs for greater levels of oversight and review--
                            ``(i) in which the highest dollar value or 
                        highest rate of improper payments occur; or
                            ``(ii) for which there is a higher risk of 
                        improper payments; and
                    ``(B) in coordination with the executive agency 
                responsible for administering a high-priority program 
                identified under subparagraph (A), establish annual 
                targets and semi-annual or quarterly actions for 
                reducing improper payments associated with the high-
                priority program.
            ``(2) Report on high-priority improper payments.--
                    ``(A) In general.--Subject to Federal privacy 
                policies and to the extent permitted by law, each 
                executive agency with a program identified under 
                paragraph (1)(A) shall on an annual basis submit to the 
                Inspector General of the executive agency and the 
                Office of Management and Budget, and make available to 
                the public, including through a website, a report on 
                that program.
                    ``(B) Contents.--Each report submitted under 
                subparagraph (A)--
                            ``(i) shall describe any action the 
                        executive agency--
                                    ``(I) has taken or plans to take to 
                                recover improper payments; and
                                    ``(II) intends to take to prevent 
                                future improper payments; and
                            ``(ii) shall not include--
                                    ``(I) any referrals the executive 
                                agency made or anticipates making to 
                                the Department of Justice; or
                                    ``(II) any information provided in 
                                connection with a referral described in 
                                subclause (I).
                    ``(C) Public availability on central website.--The 
                Office of Management and Budget shall make each report 
                submitted under subparagraph (A) available on a central 
                website.
                    ``(D) Availability of information to inspector 
                general.--Subparagraph (B)(ii) shall not prohibit any 
                referral or information being made available to an 
                Inspector General as otherwise provided by law.
                    ``(E) Assessment and recommendations.--The 
                Inspector General of each executive agency that submits 
                a report under subparagraph (A) shall, for each program 
                of the executive agency that is identified under 
                paragraph (1)(A)--
                            ``(i) review--
                                    ``(I) the assessment of the level 
                                of risk associated with the program and 
                                the quality of the improper payment 
                                estimates and methodology of the 
                                executive agency relating to the 
                                program; and
                                    ``(II) the oversight or financial 
                                controls to identify and prevent 
                                improper payments under the program; 
                                and
                            ``(ii) submit to the appropriate 
                        authorizing and appropriations committees of 
                        Congress recommendations, which may be included 
                        in another report submitted by the Inspector 
                        General to Congress, for modifying any plans of 
                        the executive agency relating to the program, 
                        including improvements for improper payments 
                        determination and estimation methodology.
                    ``(F) Annual meeting.--Not less frequently than 
                once every year, the head of each executive agency with 
                a program identified under paragraph (1)(A), or a 
                designee of the head of the executive agency, shall 
                meet with the Director of the Office of Management and 
                Budget, or a designee of the Director, to report on 
                actions taken during the preceding year and planned 
                actions to prevent improper payments.
    ``(c) Estimation of Improper Payments.--
            ``(1) Estimation.--With respect to each program and 
        activity identified under subsection (a)(1), the head of the 
        relevant executive agency shall--
                    ``(A) produce a statistically valid estimate, or an 
                estimate that is otherwise appropriate using a 
                methodology approved by the Director of the Office of 
                Management and Budget, of the improper payments made by 
                under the program or activity; and
                    ``(B) include the estimates described in 
                subparagraph (A) in the accompanying materials to the 
                annual financial statement of the executive agency and 
                as required in applicable guidance of the Office of 
                Management and Budget.
            ``(2) Lacking or insufficient documentation.--
                    ``(A) In general.--For the purpose of producing an 
                estimate under paragraph (1), when the executive agency 
                cannot determine, due to lacking or insufficient 
                documentation, whether a payment is proper or not, the 
                payment shall be treated as an improper payment.
                    ``(B) Separate report.--The head of an executive 
                agency may report separately on what portion of the 
                improper payments estimate for a program or activity of 
                the executive agency under paragraph (1) is 
                attributable to lacking or insufficient documentation.
    ``(d) Reports on Actions To Reduce Improper Payments.--With respect 
to any program or activity of an executive agency with estimated 
improper payments under subsection (c), the head of the executive 
agency shall provide with the estimate required under subsection (c) a 
report on what actions the executive agency is taking to reduce 
improper payments, including--
            ``(1) a description of the causes of the improper payments, 
        actions planned or taken to correct those causes, and the 
        planned or actual completion date of the actions taken to 
        address those causes;
            ``(2) in order to reduce improper payments to a level below 
        which further expenditures to reduce improper payments would 
        cost more than the amount those expenditures would save in 
        prevented or recovered improper payments, a statement of 
        whether the executive agency has what is needed with respect 
        to--
                    ``(A) internal controls;
                    ``(B) human capital; and
                    ``(C) information systems and other infrastructure;
            ``(3) if the executive agency does not have sufficient 
        resources to establish and maintain effective internal controls 
        under  as described in paragraph (2)(A), a description of the 
        resources the executive agency has requested in the budget 
        submission of the executive agency to establish and maintain 
        those internal controls;
            ``(4) program-specific and activity-specific improper 
        payments reduction targets that have been approved by the 
        Director of the Office of Management and Budget;
            ``(5) a description of the steps the executive agency has 
        taken to ensure that executive agency managers, programs, and, 
        where appropriate, States and localities local governments are 
        held accountable through annual performance appraisal criteria 
        for--
                    ``(A) meeting applicable improper payments 
                reduction targets; and
                    ``(B) establishing and maintaining sufficient 
                internal controls, including an appropriate control 
                environment, that effectively--
                            ``(i) prevent improper payments from being 
                        made; and
                            ``(ii) promptly detect and recover improper 
                        payments that are made; and
            ``(6) a description of how the level of planned or 
        completed actions by the executive agency to address the causes 
        of the improper payments matches the level of improper 
        payments, including a breakdown by category of improper payment 
        and specific timelines for completion of those actions.
    ``(e) Reports on Actions To Recover Improper Payments.--With 
respect to improper payments identified in a recovery audit, the head 
of the executive agency shall provide with the estimate required under 
subsection (c) a report on all actions the executive agency is taking 
to recover the improper payments, including--
            ``(1) a discussion of the methods used by the executive 
        agency to recover overpayments improper payments;
            ``(2) the amounts recovered, outstanding, and determined to 
        not be collectable, including the percent those amounts 
        represent of the total overpayments improper payments of the 
        executive agency;
            ``(3) if a determination has been made that certain 
        overpayments improper payments are not collectable, a 
        justification of that determination;
            ``(4) an aging schedule of the amounts outstanding;
            ``(5) a summary of how recovered amounts have been disposed 
        of;
            ``(6) a discussion of any conditions giving rise to 
        improper payments and how those conditions are being resolved; 
        and
            ``(7) if the executive agency has determined under 
        subsection (i) that performing recovery audits for any 
        applicable program or activity is not cost-effective, a 
        justification for that determination.
    ``(f) Governmentwide Reporting of Improper Payments and Actions To 
Recover Improper Payments.--
            ``(1) Report.--Each fiscal year, the Director of the Office 
        of Management and Budget shall submit a report with respect to 
        the preceding fiscal year on actions that executive agencies 
        have taken to report information regarding improper payments 
        and actions to recover overpayments improper payments to--
                    ``(A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    ``(B) the Committee on Oversight and Government 
                Reform of the House of Representatives; and
                    ``(C) the Comptroller General of the United States.
            ``(2) Contents.--Each report required under paragraph (1) 
        shall include--
                    ``(A) a summary of the reports of each executive 
                agency on improper payments and recovery actions 
                submitted under this section;
                    ``(B) an identification of the compliance status of 
                each executive agency, as determined by the Inspector 
                General of the executive agency under section 3353, to 
                which this section applies;
                    ``(C) Governmentwide improper payment reduction 
                targets;
                    ``(D) a Governmentwide estimate of improper 
                payments; and
                    ``(E) a discussion of progress made towards meeting 
                Governmentwide improper payment reduction targets.
    ``(g) Guidance by the Office of Management and Budget.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Director of the Office of 
        Management and Budget shall prescribe guidance for executive 
        agencies to implement the requirements of this section, which 
        shall not include any exemptions to those requirements that are 
        not specifically authorized by this section.
            ``(2) Contents.--The guidance under paragraph (1) shall 
        prescribe--
                    ``(A) the form of the reports on actions to reduce 
                improper payments, recovery actions, and Governmentwide 
                reporting; and
                    ``(B) strategies for addressing risks and 
                establishing appropriate prepayment and postpayment 
                internal controls.
    ``(h) Determinations of Agency Readiness for Opinion on Internal 
Control.--The criteria required to be developed under section 2(g) of 
the Improper Payments Elimination and Recovery Act of 2010, as in 
effect on the day before the date of enactment of this section--
            ``(1) shall continue to be in effect on and after the date 
        of enactment of this section; and
            ``(2) may be modified as determined appropriate by the 
        Director of the Office of Management and Budget.
    ``(i) Recovery Audits.--
            ``(1) In general.--
                    ``(A) Conduct of audits.--Except as provided under 
                paragraph (3) and if not prohibited under any other 
                provision of law, the head of each executive agency 
                shall conduct recovery audits with respect to each 
                program and activity of the executive agency that 
                expends $1,000,000 or more annually if conducting the 
                audits would be cost effective.
                    ``(B) Procedures.--In conducting a recovery audit 
                under this subsection, the head of an executive 
                agency--
                            ``(i) shall give priority to the most 
                        recent payments and to payments made in any 
                        program identified as susceptible to 
                        significant improper payments under subsection 
                        (a);
                            ``(ii) shall implement this subsection in a 
                        manner designed to ensure the greatest 
                        financial benefit to the Federal Government; 
                        and
                            ``(iii) may conduct the recovery audit 
                        directly, by using other departments and 
                        agencies of the United States, or by procuring 
                        performance of recovery audits by private 
                        sector sources by contract, subject to the 
                        availability of appropriations, or by any 
                        combination thereof.
                    ``(C) Recovery audit contracts.--With respect to a 
                recovery audit procured by an executive agency by 
                contract--
                            ``(i) subject to subparagraph (B)(iii), and 
                        except to the extent such actions are outside 
                        the authority of the executive agency under 
                        section 7103 of title 41, the head of the 
                        executive agency may authorize the contractor 
                        to--
                                    ``(I) notify entities, including 
                                individuals, of potential overpayments 
                                made to those entities;
                                    ``(II) respond to questions 
                                concerning potential overpayments; and
                                    ``(III) take other administrative 
                                actions with respect to an overpayment 
                                claim made or to be made by the 
                                executive agency; and
                            ``(ii) the contractor shall not have the 
                        authority to make a final determination 
                        relating to whether any overpayment occurred or 
                        whether to compromise, settle, or terminate an 
                        overpayment claim.
                    ``(D) Contract terms and conditions.--
                            ``(i) In general.--The executive agency 
                        shall include in each contract for procurement 
                        of performance of a recovery audit a 
                        requirement that the contractor shall--
                                    ``(I) provide to the executive 
                                agency periodic reports on conditions 
                                giving rise to overpayments identified 
                                by the contractor and any 
                                recommendations on how to mitigate 
                                those conditions;
                                    ``(II) notify the executive agency 
                                of any overpayments identified by the 
                                contractor pertaining to the executive 
                                agency or to any other executive agency 
                                that are beyond the scope of the 
                                contract; and
                                    ``(III) report to the executive 
                                agency credible evidence of fraud or 
                                vulnerabilities to fraud and conduct 
                                appropriate training of personnel of 
                                the contractor on identification of 
                                fraud.
                            ``(ii) Reports on actions taken.--Each 
                        executive agency shall, on an annual basis, 
                        include in annual financial statement of the 
                        executive agency a report on actions taken by 
                        the executive agency during the preceding 
                        fiscal year to address the recommendations 
                        described in clause (i)(I).
                    ``(E) Agency action following notification.--Each 
                executive agency shall--
                            ``(i) take prompt and appropriate action in 
                        response to a report or notification by a 
                        contractor under subclause (I) or (II) of 
                        subparagraph (D)(i) to collect an overpayment; 
                        and
                            ``(ii) forward to other executive agencies 
                        any information that applies to that executive 
                        agency.
            ``(2) Disposition of amounts recovered.--
                    ``(A) In general.--Amounts collected by executive 
                agencies each fiscal year through recovery audits shall 
                be treated in accordance with this paragraph.
                    ``(B) Distribution.--The head of an executive 
                agency shall determine the distribution of collected 
                amounts described in subparagraph (A), less amounts 
                needed to fulfill the purposes of section 3562(a) of 
                this title, in accordance with subparagraphs (C), (D), 
                and (E).
                    ``(C) Use for financial management improvement 
                program.--Not more than 25 percent of the amounts 
                collected by an executive agency through recovery 
                audits--
                            ``(i) shall be available to the head of the 
                        executive agency to carry out the financial 
                        management improvement program of the executive 
                        agency under paragraph (3);
                            ``(ii) may be credited, if applicable, for 
                        the purpose described in clause (i) by the head 
                        of an executive agency to any executive agency 
                        appropriations and funds that are available for 
                        obligation at the time of collection; and
                            ``(iii) shall be used to supplement and not 
                        supplant any other amounts available for the 
                        purpose described in clause (i) and shall 
                        remain available until expended.
                    ``(D) Use for original purpose.--Not more than 25 
                percent of the amounts collected by an executive agency 
                through recovery audits--
                            ``(i) shall be credited to the 
                        appropriation or fund, if any, available for 
                        obligation at the time of collection for the 
                        same general purposes as the appropriation or 
                        fund from which the overpayment was made;
                            ``(ii) shall remain available for the same 
                        period and purposes as the appropriation or 
                        fund to which credited; and
                        <DELETED>    ``(iii) if the appropriation from 
                        which an overpayment was made has expired, 
                        shall be newly available for the same time 
                        period as the funds were originally available 
                        for obligation, except that any amounts that 
                        are recovered more than 5 fiscal years from the 
                        last fiscal year in which the funds were 
                        available for obligation shall be deposited in 
                        the Treasury as miscellaneous receipts, except 
                        that in the case of recoveries of overpayments 
                        that are made from trust or special fund 
                        accounts, those amounts shall revert to those 
                        accounts.</DELETED>
                            ``(iii) if the appropriation from which an 
                        overpayment was made has expired--
                                    ``(I) in the case of recoveries of 
                                overpayments that are made from a trust 
                                or special fund account, shall revert 
                                to that account; and
                                    ``(II) in the case of other 
                                recoveries of overpayments--
                                            ``(aa) for amounts that are 
                                        recovered more than 5 fiscal 
                                        years from the last fiscal year 
                                        in which the funds were 
                                        available for obligation, shall 
                                        be deposited in the Treasury as 
                                        miscellaneous receipts; and
                                            ``(bb) for other amounts, 
                                        shall be newly available for 
                                        the same time period as the 
                                        funds were originally available 
                                        for obligation.
                    ``(E) Use for inspector general activities.--Not 
                more than 5 percent of the amounts collected by an 
                executive agency through recovery audits--
                            ``(i) shall be available to the Inspector 
                        General of that executive agency for--
                                    ``(I) the Inspector General to 
                                carry out this Act; or
                                    ``(II) any other activities of the 
                                Inspector General relating to 
                                investigating improper payments or 
                                auditing internal controls associated 
                                with payments; and
                            ``(ii) shall remain available for the same 
                        period and purposes as the appropriation or 
                        fund to which credited.
                    ``(F) Remainder.--Amounts collected that are not 
                applied in accordance with subparagraph (B), (C), (D), 
                or (E) shall be deposited in the Treasury as 
                miscellaneous receipts, except that in the case of 
                recoveries of overpayments that are made from trust or 
                special fund accounts, those amounts shall revert to 
                those accounts.
                    ``(G) Discretionary amounts.--This paragraph shall 
                apply only to recoveries of overpayments that are made 
                from discretionary appropriations, as defined in 
                section 250(c)(7) of the Balanced Budget and Emergency 
                Deficit Control Act of 1985 (2 U.S.C. 900(c)(7)), and 
                shall not apply to recoveries of overpayments that are 
                made from discretionary amounts that were appropriated 
                before the date of enactment of the Improper Payments 
                Elimination and Recovery Act of 2010, as in effect on 
                the day before the date of enactment of this section.
                    ``(H) Application.--This paragraph shall not apply 
                to the recovery of an overpayment if the appropriation 
                from which the overpayment was made has not expired.
            ``(3) Financial management improvement program.--
                    ``(A) Requirement.--The head of each executive 
                agency shall conduct a financial management improvement 
                program consistent with rules prescribed by the 
                Director of the Office of Management and Budget.
                    ``(B) Program features.--In conducting a program 
                described in subparagraph (A), the head of an executive 
                agency--
                            ``(i) shall, as the first priority of the 
                        program, address problems that contribute 
                        directly to executive agency improper payments; 
                        and
                            ``(ii) may seek to reduce errors and waste 
                        in other executive agency programs and 
                        operations.
            ``(4) Privacy protections.--Any nongovernmental entity 
        that, in the course of recovery auditing or recovery activity 
        under this subsection, obtains information that identifies an 
        individual or with respect to which there is a reasonable basis 
        to believe that the information can be used to identify an 
        individual, may not disclose the information for any purpose 
        other than the recovery auditing or recovery activity and 
        governmental oversight of the activity, unless disclosure for 
        that other purpose is authorized by the individual to the 
        executive agency that contracted for the performance of the 
        recovery auditing or recovery activity.
            ``(5) Rule of construction.--Except as provided under 
        paragraph (4), nothing in this subsection shall be construed as 
        terminating or in any way limiting authorities that are 
        otherwise available to executive agencies under existing 
        provisions of law to recover improper payments and use 
        recovered amounts.
``Sec. 3353. Compliance
    ``(a) Annual Compliance Report by Inspectors General of Executive 
Agencies.--
            ``(1) In general.--Each fiscal year, the Inspector General 
        of each executive agency shall--
                    ``(A) determine whether the executive agency is in 
                compliance; and
                    ``(B) submit a report on the determination made 
                under subparagraph (A) to--
                            ``(i) the head of the executive agency;
                            ``(ii) the Committee on Homeland Security 
                        and Governmental Affairs of the Senate;
                            ``(iii) the Committee on Oversight and 
                        Governmental Reform of the House of 
                        Representatives; and
                            ``(iv) the Comptroller General of the 
                        United States.
            ``(2) Development or use of a central website.--The Council 
        of the Inspectors General on Integrity and Efficiency (in this 
        subsection referred to as the `Council') shall develop a public 
        central website, or make use of a public central website in 
        existence on the date of enactment of this section, to contain 
        individual compliance determination reports issued by 
        Inspectors General under paragraph (1)(B) and such additional 
        information as determined by the Council.
            ``(3) OMB guidance.--Not later than 180 days after the date 
        of enactment of this section, the Director of the Office of 
        Management and Budget, in consultation with the Council and 
        with consideration given to the available resources and 
        independence of individual Offices of Inspectors General, shall 
        develop and promulgate guidance for the compliance 
        determination reports issued by the Inspectors General under 
        paragraph (1)(B), which shall require that--
                    ``(A) the reporting format used by the Inspectors 
                General is consistent;
                    ``(B) Inspectors General evaluate and take into 
                account the adequacy of executive agency risk 
                assessments, improper payment estimates methodology, 
                and executive agency action plans to address the causes 
                of improper payments;
                    ``(C) Inspectors General take into account whether 
                the executive agency has correctly identified the 
                causes of improper payments and whether the actions of 
                the executive agency to address those causes are 
                adequate and effective;
                    ``(D) Inspectors General evaluate the adequacy of 
                executive agency action plans on how the executive 
                agency addresses the causes of improper payments; and
                    ``(E) as part of the report, Inspectors General 
                include an evaluation of executive agency efforts to 
                prevent and reduce improper payments and any 
                recommendations for actions to further improve that 
                prevention and reduction.
            ``(4) CIGIE guidance.--Not later than 180 days after the 
        date of enactment of this section, the Council shall, with 
        consideration given to the available resources and independence 
        of individual Offices of Inspectors General, develop and 
        promulgate guidance that specifies procedures for compliance 
        determinations made by the Inspectors General under paragraph 
        (1)(A), which shall describe procedures for Inspectors 
        General--
                    ``(A) to make the determinations consistent 
                regarding compliance; and
                    ``(B) to evaluate--
                            ``(i) for compliance with the requirement 
                        described in section 3351(2)(B), the risk 
                        assessment methodology of the executive agency, 
                        including whether the audits, examinations, and 
                        legal actions of the Inspector General indicate 
                        a higher risk of improper payments or actual 
                        improper payments that were not included in the 
                        risk assessments of the executive agency 
                        conducted under section 3352(a);
                            ``(ii) for compliance with the requirement 
                        described in section 3351(2)(C), the accuracy 
                        of the rate estimates and whether the sampling 
                        and estimation plan used is appropriate given 
                        program characteristics;
                            ``(iii) for compliance with the requirement 
                        described in section 3351(2)(D), the corrective 
                        action plans and whether the plans are adequate 
                        and focused on the true causes of improper 
                        payments, including whether the corrective 
                        action plans are--
                                    ``(I) reducing improper payments;
                                    ``(II) effectively implemented; and
                                    ``(III) prioritized within the 
                                executive agency;
                            ``(iv) the adequacy of executive agency 
                        action plans to address the causes of improper 
                        payments;
                            ``(v) executive agency efforts to prevent 
                        and reduce improper payments, and any 
                        recommendations for actions to further improve; 
                        and
                            ``(vi) whether an executive agency has 
                        published an annual financial statement in 
                        accordance with the requirement described in 
                        section 3351(2)(A).
    ``(b) Remediation.--
            ``(1) Noncompliance.--
                    ``(A) In general.--If an executive agency is 
                determined by the Inspector General of that executive 
                agency not to be in compliance under subsection (a) in 
                a fiscal year with respect to a program or activity, 
                the head of the executive agency shall submit to the 
                appropriate authorizing and appropriations committees 
                of Congress a plan describing the actions that the 
                executive agency will take to come into compliance.
                    ``(B) Plan.--The plan described in subparagraph (A) 
                shall include--
                            ``(i) measurable milestones to be 
                        accomplished in order to achieve compliance for 
                        each program or activity;
                            ``(ii) the designation of a senior 
                        executive agency official who shall be 
                        accountable for the progress of the executive 
                        agency in coming into compliance for each 
                        program or activity; and
                            ``(iii) the establishment of an 
                        accountability mechanism, such as a performance 
                        agreement, with appropriate incentives and 
                        consequences tied to the success of the 
                        official designated under clause (ii) in 
                        leading the efforts of the executive agency to 
                        come into compliance for each program or 
                        activity.
            ``(2) Noncompliance for 2 fiscal years.--
                    ``(A) In general.--If an executive agency is 
                determined by the Inspector General of that executive 
                agency not to be in compliance under subsection (a) for 
                2 consecutive fiscal years for the same program or 
                activity, the executive agency shall propose to the 
                Director of the Office of Management and Budget 
                additional program integrity proposals that would help 
                the executive agency come into compliance.
                    ``(B) Additional funding.--
                            ``(i) In general.--If the Director of the 
                        Office of Management and Budget determines that 
                        additional funding would help the an executive 
                        agency described in subparagraph (A) come into 
                        compliance, the head of the executive agency 
                        shall obligate additional funding, in an amount 
                        determined by the Director, to intensified 
                        compliance efforts.
                            ``(ii) Reprogramming or transfer 
                        authority.--In providing additional funding 
                        under clause (i)--
                                    ``(I) the head of an executive 
                                agency shall use any reprogramming or 
                                transfer authority available to the 
                                executive agency; and
                                    ``(II) if after exercising the 
                                reprogramming or transfer authority 
                                described in subclause (I), additional 
                                funding is necessary to obligate the 
                                full level of funding determined by the 
                                Director of the Office of Management 
                                and Budget under clause (i), the 
                                executive agency shall submit a request 
                                to Congress for additional 
                                reprogramming or transfer authority.
            ``(3) Reauthorization and statutory proposals.--If an 
        executive agency is determined by the Inspector General of that 
        executive agency not to be in compliance under subsection (a) 
        for 3 consecutive fiscal years for the same program or 
        activity, the head of the executive agency shall, not later 
        than 30 days after the date of that determination, submit to 
        the appropriate authorizing and appropriations committees of 
        Congress and the Comptroller General of the United States--
                    ``(A)(i) reauthorization proposals for each program 
                or activity that has not been in compliance for 3 or 
                more consecutive fiscal years; and
                    ``(ii) proposed statutory changes necessary to 
                bring the program or activity into compliance; or
                    ``(B) if the head of the executive agency 
                determines that clauses (i) and (ii) of subparagraph 
                (A) will not bring the program or activity into 
                compliance, a description of the actions that the 
                executive agency is undertaking to bring the program or 
                activity into compliance and a timeline of when the 
                compliance will be achieved.
            ``(4) Plan and timeline for compliance.--If an executive 
        agency is determined by the Inspector General of that executive 
        agency not to be in compliance under subsection (a) for 4 or 
        more consecutive fiscal years for the same program or activity, 
        the head of the executive agency shall, not later than 30 days 
        after such determination, submit to the appropriate authorizing 
        and appropriations committees of Congress a report that 
        includes--
                    ``(A) the activities taken to comply with the 
                requirements for 1, 2, 3, 4, or more years of 
                noncompliance;
                    ``(B) a description of any requirements that were 
                fulfilled for 1, 2, or 3 consecutive years of 
                noncompliance that are still relevant and being pursued 
                as a means to bring the program or activity into 
                compliance and prevent and reduce improper payments;
                    ``(C) a description of any new corrective actions; 
                and
                    ``(D) a timeline for when the program or activity 
                will achieve compliance based on the actions described 
                within the report.
            ``(5) Annual report.--Each executive agency shall submit to 
        the appropriate authorizing and appropriations committees of 
        Congress and the Comptroller General of the United States--
                    ``(A) a list of each program or activity that was 
                determined to not be in compliance under paragraph (1), 
                (2), (3), or (4); and
                    ``(B) actions that are planned to bring the program 
                or activity into compliance.
    ``(c) Compliance Enforcement Pilot Programs.--The Director of the 
Office of Management and Budget may establish 1 or more pilot programs 
that shall test potential accountability mechanisms with appropriate 
incentives and consequences tied to success in ensuring compliance with 
this section and eliminating improper payments.
    ``(d) Improved Estimates Guidance.--The guidance required to be 
provided under section 3(b) of the Improper Payments Elimination and 
Recovery Improvement Act of 2012, as in effect on the day before the 
date of enactment of this section--
            ``(1) shall continue to be in effect on and after the date 
        of enactment of this section; and
            ``(2) may be modified as determined appropriate by the 
        Director of the Office of Management and Budget.
``Sec. 3354. Do Not Pay Initiative
    ``(a) Prepayment and Preaward Procedures.--
            ``(1) In general.--Each executive 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 or award, each executive agency shall review as 
        appropriate the following databases to verify eligibility of 
        the payment and award:
                    ``(A) The death records maintained by the 
                Commissioner of Social Security.
                    ``(B) The System for Award Management Exclusion 
                Records, formerly known as the Excluded Parties List 
                System, of the General Services Administration.
                    ``(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 (42 U.S.C. 402(x), 1382(e)).
    ``(b) Do Not Pay Initiative.--
            ``(1) In general.--There is the Do Not Pay Initiative, 
        which shall include--
                    ``(A) use of the databases described in subsection 
                (a)(2); and
                    ``(B) use of other databases designated by the 
                Director of the Office of Management and Budget, or the 
                designee of the Director, in consultation with 
                executive 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, or the head of any executive agency 
        designated by the Director, 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.--
                    ``(A) In general.--For purposes of identifying and 
                preventing improper payments, each executive agency 
                shall have access to, and use of, the Do Not Pay 
                Initiative to verify payment or award eligibility in 
                accordance with subsection (a).
                    ``(B) Matching programs.--
                            ``(i) In general.--The head of the agency 
                        operating the Working System may, in 
                        consultation with the Office of Management and 
                        Budget, waive the requirements of section 
                        552a(o) of title 5 in any case or class of 
                        cases for computer matching activities 
                        conducted under this section.
                            ``(ii) Guidance.--The Director of the 
                        Office of Management and Budget may issue 
                        guidance that establishes requirements 
                        governing waivers under clause (i).
                    ``(C) Other entities.--Each State and any 
                contractor, subcontractor, or agent of a State, 
                including a State auditor or State program responsible 
                for reducing improper payments of a federally funded 
                State-administered program, 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, shall have access to, and use of, 
                the Do Not Pay Initiative for the purpose of verifying 
                payment or award eligibility for payments.
                    ``(D) Consistency with privacy act of 1974.--To 
                ensure consistency with the principles of section 552a 
                of title 5 (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, as defined in paragraphs (2) and (3), 
                respectively, of section 202(e) of title 18.
            ``(4) Payment otherwise required.--When using the Do Not 
        Pay Initiative, an executive 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) Initial Working System.--The working system required to be 
established under section 5(d) of the Improper Payments Elimination and 
Recovery Improvement Act of 2012, as in effect on the day before the 
date of enactment of this section--
            ``(1) shall continue to be in effect on and after the date 
        of enactment of this section; and
            ``(2) shall require each executive agency to review all 
        payments and awards for all programs and activities of that 
        executive agency through the working system.
    ``(d) Facilitating Data Access by Federal Agencies and Offices of 
Inspectors General for Purposes of Program Integrity.--
            ``(1) Computer matching by executive 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 
                (commonly known as the `Privacy Act of 1974'), the head 
                of each executive agency may enter into computer 
                matching agreements with other heads of executive 
                agencies 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 the 
                date on which a proposal for an agreement under 
                subparagraph (A) has been presented to a Data Integrity 
                Board established under section 552a(u) of title 5 for 
                consideration, the Data Integrity Board shall respond 
                to the proposal.
                    ``(C) Termination date.--An agreement described in 
                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 executive 
                        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 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 relating to an 
                agreement under subparagraph (A) is not required to 
                contain a specific estimate of any savings under the 
                computer matching agreement.
            ``(2) Guidance and procedures by the office of management 
        and budget.--The guidance, rules, and procedures required to be 
        issued, clarified, and established under paragraphs (3) and (4) 
        of section 5(e) of the Improper Payments Elimination and 
        Recovery Improvement Act of 2012, as in effect on the day 
        before the date of enactment of this section--
                    ``(A) shall continue to be in effect on and after 
                the date of enactment of this section; and
                    ``(B) may be modified as determined appropriate by 
                the Director of the Office of Management and Budget.
            ``(3) Compliance.--The head of each executive agency, in 
        consultation with the Inspector General of the executive 
        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.
            ``(4) Rule of construction.--Nothing in this subsection 
        shall be construed--
                    ``(A) to affect the rights of an individual under 
                section 552a(p) of title 5; or
                    ``(B) to impede the exercise of an exemption 
                provided to Inspectors General or by an executive 
                agency in coordination with an Inspector General under 
                section 6(j) of the Inspector General Act of 1978 (5 
                U.S.C. App.).
    ``(e) 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 and Other Death 
Data.--
            ``(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 each State, the Director of the Office 
        of Management and Budget shall conduct a study and update the 
        plan required to be established under section 5(g) of the 
        Improper Payments Elimination and Recovery Improvement Act of 
        2012, as in effect on the day before the date of enactment of 
        this section, 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 described in 
        this subsection shall include recommended actions by executive 
        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 executive 
                agencies for determining ineligible payments due to the 
                death of a recipient through proactive verification 
                means; and
                    ``(E) address improper payments made by executive 
                agencies to deceased individuals as part of Federal 
                retirement programs.
            ``(3) Report.--Not later than 120 days after the date of 
        enactment of this section, the Director of the Office of 
        Management and Budget shall submit a report to Congress on the 
        plan described in this subsection, including recommended 
        legislation.
``Sec. 3355. Improving recovery of improper payments
    ``The Director of the Office of Management and Budget shall 
determine--
            ``(1) current and historical rates and amounts of recovery 
        of improper payments, or, in cases in which improper payments 
        are identified solely on the basis of a sample, recovery rates 
        and amounts estimated on the basis of the applicable sample, 
        including a list of executive agency recovery audit contract 
        programs and specific information of amounts and payments 
        recovered by recovery audit contractors; and
            ``(2) targets for recovering improper payments, including 
        specific information on amounts and payments recovered by 
        recovery audit contractors.
``Sec. 3356. Improving the use of data by executive agencies for 
              curbing improper payments
    ``(a) Prompt Reporting of Death Information by the Department of 
State and the Department of Defense.--The procedure required to be 
established under section 7(a) of the Improper Payments Elimination and 
Recovery Improvement Act of 2012, as in effect on the day before the 
date of enactment of this section--
            ``(1) shall continue to be in effect on and after the date 
        of enactment of this section; and
            ``(2) may be modified as determined appropriate by the 
        Director of the Office of Management and Budget.
    ``(b) Prompt Reporting of Death Information by the Department of 
Veterans Affairs and the Office of Personnel Management.--Not later 
than 1 year after the date of enactment of this section, the Secretary 
of Veterans Affairs and the Director of the Office of Personnel 
Management shall establish a procedure under which the Secretary and 
the Director--
            ``(1) shall promptly and on a regular basis submit 
        information relating to the deaths of individuals, including 
        stopped payments data as applicable, to each executive agency 
        for which the Director of the Office of Management and Budget 
        determines receiving and using such information would be 
        relevant and necessary; and
            ``(2) to facilitate the centralized access of death data 
        for the use of reducing improper payments, may identify 
        additional Federal sources of death data and direct the data 
        owner to provide that data to 1 or more executive agencies for 
        that purpose.
    ``(c) Guidance to Executive Agencies Regarding Data Access and Use 
for Improper Payments Purposes.--The guidance required to be issued 
under section 7(b) of the Improper Payments Elimination and Recovery 
Improvement Act of 2012, as in effect on the day before the date of 
enactment of this section--
            ``(1) shall continue to be in effect on and after the date 
        of enactment of this section; and
            ``(2) may be modified as determined appropriate by the 
        Director of the Office of Management and Budget.
``Sec. 3357. Financial and administrative controls relating to fraud 
              and improper payments
    ``(a) Definition.--In this section, the term `agency' has the 
meaning given the term in section 551 of title 5.
    ``(b) Guidelines.--The guidelines required to be established under 
section 3(a) of the Fraud Reduction and Data Analytics Act of 2015, as 
in effect on the day before the date of enactment of this section--
            ``(1) shall continue to be in effect on and after the date 
        of enactment of this section; and
            ``(2) may be periodically modified by the Director of the 
        Office of Management and Budget, in consultation with the 
        Comptroller General of the United States, as the Director and 
        Comptroller General may determine necessary.
    ``(c) Requirements for Controls.--The guidelines described in 
subsection (b) shall include--
            ``(1) conducting an evaluation of fraud risks and using a 
        risk-based approach to design and implement financial and 
        administrative control activities to mitigate identified fraud 
        risks;
            ``(2) collecting and analyzing data from reporting 
        mechanisms on detected fraud to monitor fraud trends and using 
        that data and information to continuously improve fraud 
        prevention controls; and
            ``(3) using the results of monitoring, evaluation, audits, 
        and investigations to improve fraud prevention, detection, and 
        response.
    ``(d) Report.--For each of fiscal years 2018 and 2019, each agency 
shall submit to Congress, as part of the annual financial report of the 
agency, a report of the agency on--
            ``(1) implementing--
                    ``(A) the financial and administrative controls 
                required to be described in subsection (b);
                    ``(B) the fraud risk principle in the Standards for 
                Internal Control in the Federal Government published by 
                the Government Accountability Office (commonly known as 
                the `Green Book'); and
                    ``(C) Office of Management and Budget Circular A-
                123, or any successor thereto, with respect to the 
                leading practices for managing fraud risk;
            ``(2) identifying risks and vulnerabilities to fraud, 
        including with respect to payroll, beneficiary payments, 
        grants, large contracts, and purchase and travel cards; and
            ``(3) establishing strategies, procedures, and other steps 
        to curb fraud.
``Sec. 3358. Interagency working group for Governmentwide payment 
              integrity improvement
    ``(a) Working Group.--
            ``(1) Establishment.--Not later than 90 days after the date 
        of enactment of this section, there is established an 
        interagency working group on payment integrity--
                    ``(A) to improve--
                            ``(i) State-administered Federal programs 
                        to determine eligibility processes and data 
                        sharing practices;
                            ``(ii) the guidelines described in section 
                        3357(b) and other best practices and techniques 
                        for detecting, preventing, and responding to 
                        improper payments, including improper payments 
                        that are the result of fraud; and
                            ``(iii) the sharing and development of data 
                        analytics techniques to help prevent and 
                        identify potential improper payments, including 
                        those that are the result of fraud; and
                    ``(B) to identify any additional activities that 
                will improve payment integrity of Federal programs.
            ``(2) Composition.--The interagency working group 
        established under paragraph (1) shall be composed of--
                    ``(A) the Director of the Office of Management and 
                Budget;
                    ``(B) 1 representative from each of the agencies 
                described in paragraphs (1) and (2) of section 901(b) 
                of this title; and
                    ``(C) any other representatives of other executive 
                agencies determined appropriate by the Director of the 
                Office of Management and Budget, which may include the 
                Chief Information Officer, the Chief Procurement 
                Officer, the Chief Risk Officer, or the Chief Operating 
                Officer of an executive agency.
    ``(b) Consultation.--The working group established under subsection 
(a)(1) may consult with Offices of Inspectors General and Federal and 
non-Federal experts on fraud risk assessments, administrative controls 
over payment integrity, financial controls, and other relevant matters.
    ``(c) Meetings.--The working group established under subsection 
(a)(1) shall hold not fewer than 4 meetings per year.
    ``(d) Report.--Not later than 240 days after the date of enactment 
of this section, the working group established under subsection (a)(1) 
shall submit to Congress a report that includes--
            ``(1) a plan containing tangible solutions to prevent and 
        reduce improper payments; and
            ``(2) a plan for State agencies to work with Federal 
        agencies to regularly review lists of beneficiaries of State-
        managed Federal programs for duplicate enrollment between 
        States, including how the Do Not Pay Business Center and the 
        data analytics initiative of the Department of the Treasury 
        could aid in the detection of duplicate enrollment.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 33 of title 31, United States Code, is amended by adding at the 
end the following:

                   ``subchapter iv--improper payments

``3351. Definitions.
``3352. Estimates of improper payments and reports on actions to reduce 
                            improper payments.
``3353. Compliance.
``3354. Do Not Pay Initiative.
``3355. Improving recovery of improper payments.
``3356. Improving the use of data by executive agencies for curbing 
                            improper payments.
``3357. Financial and administrative controls relating to fraud and 
                            improper payments.
``3358. Interagency working group for Governmentwide payment integrity 
                            improvement.''.

SEC. 3. REPEALS.

    (a) In General.--
            (1) Improper payments information act of 2002.--The 
        Improper Payments Information Act of 2002 (31 U.S.C. 3321 note) 
        is repealed.
            (2) Improper payments elimination and recovery act of 
        2010.--The Improper Payments Elimination and Recovery Act of 
        2010 (Public Law 114-204; 124 Stat. 2224) is repealed.
            (3) Improper payments elimination and recovery improvement 
        act of 2012.--The Improper Payments Elimination and Recovery 
        Improvement Act of 2012 (31 U.S.C. 3321 note) is repealed.
            (4) Fraud reduction and data analytics act of 2015.--The 
        Fraud Reduction and Data Analytics Act of 2015 (31 U.S.C. 3321 
        note) is repealed.
    (b) Technical and Conforming Amendments.--
            (1) Government charge card abuse prevention act of 2012.--
        Section 6(a) of the Government Charge Card Abuse Prevention Act 
        of 2012 (5 U.S.C. 5701 note) is amended by striking ``section 
        3512 of title 31, United States Code, or in the Improper 
        Payments Information Act of 2002 (31 U.S.C. 3321 note)'' and 
        inserting ``section 3512 or subchapter IV of chapter 33 of 
        title 31, United States Code''.
            (2) Homeland security act of 2002.--Section 2022(a) of the 
        Homeland Security Act of 2002 (6 U.S.C. 612(a)) is amended--
                    (A) in paragraph (1)(C), by striking ``Consistent 
                with the Improper Payments Information Act of 2002 (31 
                U.S.C. 3321 note)'' and inserting ``Consistent with 
                subchapter IV of chapter 33 of title 31, United States 
                Code''; and
                    (B) in paragraph (5), by striking ``section 2(h) of 
                the Improper Payments Elimination and Recovery Act of 
                2010 (31 U.S.C. 3321 note)'' and inserting ``section 
                3352(i) of title 31, United States Code,''.
            (3) Social security act.--Section 2105 of the Social 
        Security Act (42 U.S.C. 1397ee(c)) is amended by striking 
        ``Improper Payments Information Act of 2002'' each place that 
        term appears and inserting ``subchapter IV of chapter 33 of 
        title 31, United States Code''.
            (4) Title 31.--Section 3562(a) of title 31, United States 
        Code, is amended, in the matter preceding paragraph (1)--
                    (A) by striking ``section 3561'' and inserting 
                ``section 3352(i)''; and
                    (B) by striking ``agency for the following 
                purposes:'' and all that follows through ``To 
                reimburse'' and inserting ``agency to reimburse''.
                                                       Calendar No. 736

115th CONGRESS

  2d Session

                                S. 2948

                          [Report No. 115-445]

_______________________________________________________________________

                                 A BILL

   To improve efforts to identify and reduce Governmentwide improper 
                   payments, and for other purposes.

_______________________________________________________________________

                           December 19, 2018

                        Reported with amendments