[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 375 Enrolled Bill (ENR)]

        S.375

                     One Hundred Sixteenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Friday,
            the third day of January, two thousand and twenty


                                 An Act


 
   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 
2019''.
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.--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 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 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 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 improper payments;
        ``(2) the amounts recovered, outstanding, and determined to not 
    be collectable, including the percent those amounts represent of 
    the total improper payments of the executive agency;
        ``(3) if a determination has been made that certain 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 improper payments to--
            ``(A) the Committee on Homeland Security and Governmental 
        Affairs of the Senate;
            ``(B) the Committee on Oversight and 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
                ``(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 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 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 
    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 2019 and 2020, 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 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--
            (A) in the matter preceding paragraph (1)--
                (i) by striking ``section 3561'' and inserting 
            ``section 3352(i)''; and
                (ii) by striking ``agency for the following purposes:'' 
            and all that follows through ``To reimburse'' and inserting 
            ``agency to reimburse''; and
            (B) by striking paragraph (2).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.