[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8463 Engrossed in House (EH)]
<DOC>
119th CONGRESS
2d Session
H. R. 8463
_______________________________________________________________________
AN ACT
To establish governmentwide requirements for pre-payment fraud
prevention actions, to provide the U.S. Treasury appropriate data
resources, to facilitate participation in governmentwide anti-fraud
data sharing, 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 ``Pre-Payment Fraud Prevention and
Treasury Data Access Act''.
SEC. 2. PRE-PAYMENT FRAUD PREVENTION REQUIREMENTS FOR AGENCIES.
(a) Establishment of Pre-payment Agency Responsibilities.--
(1) Amendment.--Chapter 33 of title 31, United States Code,
is amended by inserting after section 3325 the following:
``Sec. 3325a. Agency duties for fraud and improper payment prevention
before the issuance of a payment voucher request
``(a) Mandatory Actions Before Issuing a Payment Voucher.--The head
of an agency, or an officer or employee described in section
3325(a)(1(B), may not certify a voucher under section 3325 until the
following requirements are met:
``(1) Each pre-certification requirement described in
subsection (b) for such payment request.
``(2) Confirmation is provided that the payment complies
with any disbursement requirement and instruction, including
any pre-certification requirement, published by the Secretary
of the Treasury.
``(3) Confirmation is provided that any other appropriate
payment, account, and payee validation program or service that
the Secretary of the Treasury, in consultation with the
Director, requires to reduce fraud and an improper payment
resulting in financial loss to the Government, including any
agency evaluation of the fraud-risk indicator of a program
required under section 3352 and agency procedures required
under section 3554(b)(1), have been conducted, in accordance
with necessary exceptions for statutory, policy, or operational
reasons.
``(b) Payment Verification Pre-certification Requirements.--Not
later than 180 days after the date of the enactment of this section,
and as needed thereafter, the Secretary of the Treasury shall, in
consultation with the Director of the Office of Management and Budget,
issue regulations, and guidance as necessary, for the pre-certification
requirements of this section, for vouchers certified under section
3325, including any deadline for pre-certification information and
related records to be submitted to the requisite Treasury official and
disbursing official under subchapter IV of this chapter, before the
date of disbursement in order to allow for sufficient time to meet the
requirements of this section, including the following:
``(1) Funds are available at the time the obligation is
incurred and if an obligation is incurred when funds are not
available, then the agency may not certify the payment voucher.
``(2) The amount of the payment and the name of the payee
on the payment voucher are correct, in conformance with the
prescribed standard format.
``(3) A valid social security number, taxpayer
identification number, employer identification number,
individual taxpayer identification number, or payee ID number
is provided for each payee on the voucher, if applicable.
``(4) The appropriation or fund from which the payment will
be made is available for the purpose described in the voucher
and indicated with the appropriate Treasury Account Symbol or
Business Event Type Code.
``(5) A payee is not deceased, if the payment would be
improperly made to a deceased payee.
``(6) The account number, if any, provided on the payment
voucher is held at a financial institution and is open, valid,
and belongs to the payee or a valid designee of the payee.
``(7) Any other identifier in conformance with the payment
verification pre-certification requirements established by the
Secretary of the Treasury, which may include the Procurement
Instrument Identified and the Federal Award Identification
Number.
``(c) Return of Payment Voucher.--The Secretary, in consultation
with the Director, shall issue guidance and establish procedures to
authorize the Chief Disbursing Officer of the Department of the
Treasury, or an agency disbursing official, to return to the relevant
agency certifying official, including a notification to the agency, any
payment or payment voucher issued under section 3325 which does not
comply with pre-certification verification requirements established
under this section as determined by the Secretary.
``(d) Agency Requests for Exemptions.--The Secretary of the
Treasury shall include in the regulations issued under subsection (b),
or in other regulations or guidance issued under this chapter, a
process for agencies to request exemptions from some or all of the
payment verification requirements for specific payments or categories
of payments under this section, which shall include a requirement for
the agency to provide a plan and reasonable timeframe to remediate the
need for the exemption. Any approved exemption shall be documented in
any related payment voucher certified under section 3325 for the
duration of the exemption.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 33 of title 31, United States Code, is
amended by inserting after the item for section 3325 the
following:
``3325a. Agency duties for fraud and improper payment prevention before
the issuance of a payment voucher
request.''.
(b) Amendment to Responsibilities of Agency Certifying Official for
Payment Vouchers.--Section 3528(a) of title 31, United States Code, is
amended--
(1) in paragraph (2), by inserting after ``of this title''
the following: ``, including pre-certification requirements
described in section 3325a'';
(2) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively; and
(3) by inserting after paragraph (3) the following:
``(4) Ensuring that--
``(A) the agency has complied with the requirements
of section 3325a and subchapter IV of this title; and
``(B) a covered recipient is in compliance with the
reporting requirements under section 6107.''.
(c) Prepayment Requirements of Payment Disbursing Officials.--
Section 3325 of title 31, United States Code, is amended--
(1) in subsection (d) by striking ``taxpayer identifying
number of each person'' and inserting ``information required to
be submitted under section 3325a(b) of each payee''; and
(2) by adding at the end the following:
``(e)(1) Before certifying a voucher to a disbursing official, the
head of an agency or an officer or employee of an agency described in
subparagraph (A) or (B) of subsection (a)(1), as applicable, shall take
necessary actions to accurately disburse payments to the recipients of
those payments, including by--
``(A) verifying the accuracy of the bank account
information to which a payment is to be disbursed, to the
extent practicable; and
``(B) comparing the bank account information of the
proposed recipient to other payment records available to the
agency, to the extent practicable.
``(2) The Secretary of the Treasury shall issue guidance to carry
out this subsection, which may be carried out through any guidance
issued for section 3325a(b).''.
(d) Addition of Fraud Prevention Indicators to Agency Improper
Payment Risk Assessments.--
(1) Definitions amendments.--Section 3351 of title 31,
United States Code is amended--
(A) in paragraph (3)--
(i) in the heading, by striking
``initiative'' and inserting ``system'';
(ii) by striking ``Initiative'' and
inserting ``System''; and
(iii) by striking ``initiative'' and
inserting ``system''; and
(B) by adding at the end the following (and by
redesignating and moving the paragraphs to appear in
alphabetical order):
``(9) Appropriate authorizing and appropriations committees
of congress.--The term `appropriate authorizing and
appropriations committees of Congress' means the following:
``(A) The Committees on Appropriations of the
Senate and the House of Representatives.
``(B) The Committee on Homeland Security and
Governmental Affairs of the Senate.
``(C) The Committee on Oversight and Government
Reform of the House of Representatives.
``(D) The Budget Committee of the House of
Representatives and the Committee on the Budget of the
Senate.
``(D) Any other relevant congressional committee of
jurisdiction.
``(10) Director.--The term `Director' means the Director of
the Office of Management and Budget.
``(11) Fraud-risk indicator.--The term `fraud-risk
indicator' means an objective data point or analytic signal
that indicates an anomalous payment pattern or increase in the
volume of a payment amount, a verified data mismatch, network
or behavioral anomaly, or match identified by the Do Not Pay
system and any other payment, account, and payee validation
program or service provided by the Department of the Treasury
that would result in financial loss to the Government.''.
(2) Amendment.--Section 3352(a)(1) of title 31, United
States Code, is amended--
(A) in subparagraph (A), by striking ``; and'' and
inserting a semicolon;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) design and apply fraud-risk indicators to the
programs identified under paragraph (A).''.
SEC. 3. TREASURY DO NOT PAY SYSTEM.
(a) Amendment.--Section 3354 of title 31, United States Code, is
amended--
(1) in the heading, by striking ``Initiative'' and
inserting ``system'';
(2) in subsection (a)--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--The head of each executive agency shall
establish and maintain appropriate preaward and prepayment
procedures to prevent and recover improper payments, including
payments resulting in financial loss to the Government, and to
prevent financial fraud. Such procedures shall include, at a
minimum--
``(A) screening all persons or entities that
receive, or seek to receive, Federal awards or payments
against all appropriate Do Not Pay system data assets,
including data assets described in paragraph (2)(a),
and risk tools before an award is made or a payment
request is submitted to the disbursing officer in
accordance with section 3325a; and
``(B) a periodic review of available data assets
and notification to the Secretary of any data asset
that the agency requires access to, either directly or
through the Do Not Pay system.'';
(B) in paragraph (2), by striking ``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:'' and inserting the following: ``Consistent with
the routine use authority under section 552a of title
5, and subject to the requirements of paragraphs (3)
and (6), the Secretary shall have access to the
following data assets for the purposes described in
paragraph (1):''; and
(C) by adding at the end the following:
``(3) Publication of data assets; additional data assets.--
``(A) Publication of data assets.--The Secretary
shall publish and maintain a System of Records Notice
for the Do Not Pay system that identifies each data
asset, the routine uses under which the data asset is
disclosed from that system of record, the specific
permitted purposes, and the access controls applicable
to each data asset. A data asset may not be disclosed
from the Do Not Pay system before publication of the
applicable routine uses in the relevant System of
Records Notice.
``(B) Designation.--The Secretary, in consultation
with the Director, may designate additional categories
of data assets for inclusion in the Do Not Pay system
that substantially assist agencies in carrying out the
requirements of paragraph (1).
``(C) Privacy and notice.--In designating data
assets that include personally identifiable
information, law enforcement sensitive information, or
information subject to section 552a of title 5, the
Secretary shall--
``(i) act in coordination with the Director
of the Office of Management and Budget; and
``(ii) provide public notice and an
opportunity for comment for not less than 15
days prior to designation.
``(D) Database inclusion.--Following designation of
a category of data assets under subparagraph (B), the
Secretary shall provide public notice and an
opportunity for comment for not less than 30 days
before adding any specific data asset within such
category.
``(E) Non-sensitive data.--Data assets that do not
include personally identifiable information, law
enforcement sensitive information, or information
subject to section 552a of title 5 may be added at the
discretion of the Secretary without designation if a
list of such data assets is disclosed to the public on
a public website maintained by the Department of the
Treasury.
``(4) Treatment of data matching for purposes of agency use
of do not pay system.--For purposes of section 552a of title 5,
or any other provision of law, a computerized comparison of two
or more automated Federal systems of records, or a computerized
comparison of a Federal system of records with other records or
non-Federal records, carried out by the Secretary to verify
payments or identify or recover improper payments under this
section shall not be considered a matching program if such
match-based inquiry is conducted in strict adherence to the
limitations of use under paragraph (5), returns a binary
verification response, resulting data is not retained by the
agency for more than 30 days in order to address the immediate
award eligibility or payment verification determination, and
contains not more than 20 discrete record requests at a time
for a particular agency program.
``(5) Limitation on use.--
``(A) In general.--Information obtained through the
Do Not Pay system may be used solely for the purposes
described in paragraph (1), or for Federal or State law
enforcement or investigative purposes and any officer,
employee, contractor, subcontractor, or agent of a
Federal or State entity may not publish, examine for a
purpose not explicitly authorized under this section,
or communicate such information furnished in such data
assets other than in fulfillment of the purposes of
this section.
``(B) Implementation of system.--The Do Not Pay
system shall be implemented in a manner to strictly
provide match-based queries that return only limited
responses derived from the data submitted by any
individual described in subparagraph (A) with the
minimum data exchanged and retained in order to conduct
the verification match and any associated
responsibility under section 552a(p) of title 5, if--
``(i) such responses to match-based queries
are limited to a confirmation or denial of a
match, the level of confidence in a match, the
data sources that informed the match, and other
administrative metadata or the minimum
additional data elements necessary to achieve
the purposes described in paragraph (1); and
``(ii) any individual described in
subparagraph (A) is prohibited from retrieving,
browsing, making repeated and tailored match-
based inquiries with the intention of
reconstituting the underlying record in another
system, or otherwise accessing any underlying
record maintained in the Do Not Pay system
under subsection (a)(2) beyond the information
necessary to resolve a match-based query solely
for the purposes described in paragraph (1).
``(C) Individuals accessing information.--Any
individual described in subparagraph (A)--
``(i) may not take an adverse action
against any individual based solely upon the
information obtained under such subparagraph;
``(ii) shall take additional independent
steps to verify the eligibility of a benefit
recipient before taking any adverse action,
when necessary or appropriate or when required
by applicable law; and
``(iii) shall make an independent judgment
regarding the decision to certify a payment for
disbursement or pursue recovery of a
potentially improper payment.
``(6) Confidentiality maintenance.--The Secretary shall
maintain, with respect to each data asset obtained through the
Do Not Pay system, the same level of confidentiality required
by the law governing the source of that data asset. Information
obtained from a data asset may only be used for purposes for
which the source statute authorizes disclosure, and access to
such information shall be limited to persons and entities for
whom the source statute authorizes access. The Secretary shall
document, in the System of Records Notice required under
paragraph (2), the specific confidentiality obligations
applicable to each data asset and the means by which Treasury
ensures compliance.
``(7) Penalty for unlawful disclosure.--Any individual
described in paragraph (5)(A) who knowingly and willfully
discloses information in violation of paragraph (5) shall be
fined not more than $250,000, imprisoned not more than 5 years,
or both.
``(8) Exception when payment otherwise required under
law.--The head of an executive agency may be exempt from the
requirements of paragraph (1) if a Federal statute expressly
requires that a payment or award be made notwithstanding
potential ineligibility, and the agency head notifies the
Secretary of the Treasury and the Director of the Office of
Management and Budget prior to certification of the payment
under section 3325.
``(9) Definition.--In this section, the term `data asset'
has the meaning given that term in section 3502(17) of title
44.'';
(3) by striking subsections (b) through (c) and inserting
the following:
``(b) Establishment of System.--The Secretary of the Treasury shall
establish and maintain a Do Not Pay system, which shall be administered
and operated by the Fiscal Service of the Department of the Treasury.
The Do Not Pay system shall include--
``(1) the data assets described in subsection (a)(2); and
``(2) such other data assets as the Secretary of the
Treasury may designate, in consultation with the Director of
the Office of Management and Budget, to assist agencies in
carrying out subsection (a)(1).
``(c) State and Other Governmental Use.--
``(1) In general.--Each State and local government
administering a federally funded program, and any contractor,
subcontractor, or agent thereof, including State and local
government auditors, shall have access to the Do Not Pay system
to review preaward and prepayment data in order to prevent and
recover improper payments, including payments resulting in
financial loss to the Government, and to prevent financial
fraud if procedures are established regarding--
``(A) the screening of persons or entities that
receive, or seek to receive Federal awards or payments
against appropriate Do Not Pay system data assets,
including data assets described in subsection (a)(2),
and risk tools before an award is made or a payment
request is submitted to the disbursing officer; and
``(B) periodic review of available data assets and
notification to the Secretary of any data asset that
the agency requires access to, either directly or
through the Do Not Pay system.
``(2) Other governmental use.--The judicial and legislative
branches of the United States (as defined in section 202(e) of
title 18) shall have access to the Do Not Pay system strictly
for purposes of verifying eligibility for payments and
preventing fraud and improper payments as authorized under
subsection (a)(1).
``(3) Privacy requirements.--The Director, in coordination
with the Secretary, shall issue regulations implementing this
section, including establishing privacy and other requirements
applicable to such access and disclosure, consistent with
section 552a of title 5.
``(d) Quarterly Report.--The Secretary, in consultation with the
Director, shall submit to the appropriate authorizing and
appropriations committees of Congress quarterly reports on the
governmentwide operation of the Do Not Pay system, which may be
included as part of another report submitted to Congress by the
Secretary, and which shall include the following:
``(1) Performance measures for monitoring the effectiveness
of the system in reducing improper payments.
``(2) Information on the frequency of corrections and
identification of erroneous data.
``(3) Recommendations for legislative or administrative
action to enhance the operations of the system.
``(4) An assessment of agency, State, and local compliance
with the requirements of this section, including a listing of
all memorandums established with the head of an agency under
subsection (a)(4) that documents agency use of the Do Not Pay
system.
``(e) Evaluation.--Not less than annually, the Evaluation Officer
of the agency, as designated under section 313 of title 5, shall
provide the appropriate authorization and appropriations committees of
Congress an evaluation of the Do Not Pay system, including the best
available estimate of the effectiveness of the system in reducing fraud
and improper payments that lead to financial loss of the Government in
agency programs on a monthly and regional basis for such program. The
evaluation shall include an analysis of which data sources maintained
by the Do Not Pay system are attributed to identifying or reducing
instances of likely fraudulent or improper payments by count and total
dollar savings value to the Government.
``(f) Continuity and Transition.--
``(1) Continuation of previous system if necessary.--The Do
Not Pay initiative in effect on the day before the date of the
enactment of this section shall continue as necessary to
support implementation of the Do Not Pay system.
``(2) Guidance, rules, and procedures.--Guidance, rules,
and procedures in effect before the date of the enactment of
this section shall remain in effect until modified by the
Secretary or the Director of the Office of Management and
Budget.
``(3) Rules of construction.--Nothing in this subsection
may be construed--
``(A) except as specifically provided in subsection
(a)(4), to modify or supersede the requirements of
section 552a of title 5, including the requirements for
notice in section 552a(e)(12) and for due process
rights of an individual under section 552a(p); or
``(B) to limit any authority of an Inspector
General under applicable law.'';
(4) in subsection (d)--
(A) in paragraph (1)(C)--
(i) in clause (i), by striking ``3 years''
and inserting ``5 years''; and
(ii) in clause (ii), by striking ``3
years'' and inserting ``5 years'';
(B) by redesignating paragraphs (2) through (4) as
paragraphs (3) through (5), respectively; and
(C) by inserting after paragraph (1) the following:
``(2) Voluntary expedited process for computer matching by
executive agencies for purposes of using the do not pay
system.--
``(A) In general.--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 an expedited process for establishing a computer
matching agreement with the head of another executive
agency for the purposes of ongoing and automated data
matching with the Do Not Pay system for purposes under
this section in order to assist in the detection and
prevention of fraudulent and improper payments.
``(B) Requirement for use of computer matching
agreement template.--Not later than 180 days after the
effective date of this section, the Director, in
coordination with the Secretary of the Treasury, shall
establish a standard computer matching agreement
template for the Do Not Pay system which shall
authorize an agency that adopts the standard template
to be deemed to have satisfied the requirements of
section 552a(o) of title 5 upon execution of the
agreement without the need for review by a Data
Integrity Board established under section 552a(u) of
title 5.
``(C) Requirement for federal record notices and
publication.--The standard computer matching agreement
template described under paragraph (B), and any future
modification to the template, shall be published in the
Federal Register by the Secretary of the Treasury 30-
days prior to putting any such template or modification
of such template into effect. On a quarterly basis the
Secretary of the Treasury shall publish in the Federal
Register a consolidated listing of each computer
matching agreement using the standardized template
under paragraph (B) and maintain on a publicly
available website all active computer matching
agreements using such template or the process under
paragraph (1) that shall include the agency name, data
assets covered, authorized purposes, and date of the
agreement. The consolidated quarterly listing under
this subparagraph shall satisfy the matching program
notice requirements of section 552a(e)(12) of title 5
for each computer matching agreement using the
standardized template under paragraph (B), and no
separate Federal Register publication under section
552a(e)(12) shall be required of any agency
participating in such an agreement.
``(D) Termination date.--An agreement under this
paragraph--
``(i) shall have a termination date of less
than 5 years; and
``(ii) during the 3-month period ending on
the date on which the agreement is scheduled to
terminate, may be renewed by each executive
agency that entered into the agreement for not
more than 5 years if the head of the agency
attests to the Secretary of the Treasury and
the Director of the Office of Management and
Budget that the agreement is not being
modified.
``(E) Requirement for omb guidance.--Not later than
180 days after the effective date of this section, the
Director of the Office of Management and Budget, in
consultation with the Secretary of the Treasury, shall
issue guidance, including the computer matching
agreement template, to implement this paragraph.
``(F) 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).'';
and
(5) by striking subsection (e).
(b) Technical and Conforming Amendment.--The item relating to
section 3354 in the table of sections for chapter 33 of title 31,
United States Code, is amended, by striking ``Initiative'' and
inserting ``system''.
SEC. 4. SINGLE REPORT ON FIRST TIME USE OF FUNDS BY RECIPIENT.
(a) Establishment of Post-award Single Report Requirement on First-
time Use of Funds by Recipient of Federal Award.--Chapter 61 of title
31, United States Code, is amended by adding at the end the following:
``Sec. 6107. Single report on first time use of funds by recipient
``(a) Federal Award Reporting Requirement.--The head of each agency
that administers a covered award shall require each covered recipient
to, as a condition of receiving amounts under such award, submit to the
head of the agency, not later than 180 days after the receipt of such
award unless a deadline exception may be applied pursuant to pursuant
to regulations promulgated under subsection (b), a one-time report on
the use of such amounts that--
``(1) includes any content required to be included in such
report pursuant to subsection (b); and
``(2) is in the format required under such subsection.
``(b) Governmentwide Report Regulations and Guidance.--
``(1) Contents and format of report.--
``(A) Promulgation.--Not later than 1 year after
the date of the enactment of this section, the
Director, in coordination with the Secretary of the
Treasury and the standard-setting agency designated
under section 6402(a)(1), shall promulgate regulations,
and any clarifying guidance as may be necessary, to
establish governmentwide requirements for the content
and format of the report described under subsection
(a).
``(B) Updates.--Any guidance or regulation
promulgated under subparagraph (A) shall be updated as
necessary, but in any case, shall be updated not less
often than once every 5 years.
``(2) Report minimum requirements.--The regulations and any
clarifying guidance promulgated under paragraph (1), shall at a
minimum--
``(A) enable the head of an awarding agency to
determine whether amounts provided under a covered
award are being used by the recipient required to
submit the report, and any sub-recipient or sub-grantee
thereof, for the intended purpose of the program, as
set forth in statute, regulation, or policies and
procedures of the agency;
``(B) enable fraud prevention, detection,
investigation, and mitigation, in future awards of
Federal funds to the recipient required to submit the
report by identifying relevant fraud-risk indicators
that would require a referral for investigation and
criminal referral to the appropriate entity of the
Federal Government, including any identified effort by
a recipient to defraud the Federal Government or
violate sections 3729 through 3731 of title 31
(commonly referred to as the `False Claims Act');
``(C) ensure that any sub-recipient or sub-grantee,
at any level, of the recipient required to submit the
report provide to such recipient such information as
may be necessary to enable aggregate reporting on the
covered award by the recipient;
``(D) require the heads of agencies to apply the
governmentwide data standards established under chapter
64 with respect to the format and content of the report
required to be submitted;
``(E) align with the Federal award reporting
requirements and data standards under the Federal
Funding Accountability and Transparency Act of 2006
(Public Law 109-282; 31 U.S.C. 6101 note), to the
maximum extent practicable;
``(F) reduce recipient and agency reporting burdens
by avoiding duplication in recipient reporting
obligations, to the extent practicable; and
``(G) provide clarification for agencies to apply a
reporting deadline exception under subsection (a)(1),
which may be made for an entire program or type of
covered award, beyond 180 days when the use of the
covered funds by the covered recipient takes place more
than 180 days after a receipt of such covered award.
``(c) Agency Requirements.--In accordance with the regulations and
any clarifying guidance promulgated under subsection (b), the head of
an agency that administers a covered award shall--
``(1) update the terms and conditions of Federal awards in
the agency programs to implement subsection (a) for covered
recipients;
``(2) include a summary of the post-award reporting
requirements established under subsection (a), including the
required content and reporting format, in the Notice of Funding
Opportunity (which has the meaning given the term in section
200.1 of title 2, Code of Federal Regulations) for Federal
financial assistance (as defined under section 7501 of this
title) in order to assist applicants for such assistance in
understanding post-award reporting obligations;
``(3) to the maximum extent practicable--
``(A) provide user-friendly and plain language
directives for covered recipients to fulfill their
reporting obligation under subsection (a); and
``(B) use existing post-award reporting
requirements to reduce the burden of cumulative post-
award reporting; and
``(4) establish procedures within the agency to identify
covered recipients that are not in compliance with the
reporting requirement under subsection (a).
``(d) Noncompliance.--For a case in which a covered recipient does
not submit the report required by subsection (a), the awarding agency
shall--
``(1) provide a timely written notice of noncompliance to
the recipient that--
``(A) clearly states the reason for noncompliance;
``(B) notifies the recipient of the obligation of
the agency to cease further disbursements to the entity
until the covered recipient is in compliance; and
``(C) provides clear instructions to the covered
recipient on how to come back into compliance; and
``(2) prevent a payment voucher from being issued under
section 3325 for a payment to such recipient for funds related
to the particular program for which the report was required,
until such report is submitted.
``(e) Availability of Report.--Each report submitted under
subsection (a) shall be--
``(1) kept on file by the agency for a period of not less
than 5 years after the date on the conclusion of the duration
of the award; and
``(2) made available upon request to--
``(A) the Director;
``(B) the Secretary of the Treasury;
``(C) the Attorney General;
``(D) the Inspector General of the agency
concerned; and
``(E) the appropriate congressional committees.
``(f) Use of Information Included in Report.--Information included
in the report required by subsection (a) shall be used by the agency in
support of improper payment activities of the agency under section 3352
as appropriate and applicable.
``(g) Definitions.--In this section:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committees on Appropriations of the
Senate and the House of Representatives;
``(B) the Committee on Homeland Security and
Governmental Affairs of the Senate;
``(C) the Committee on Oversight and Government
Reform of the House of Representatives; and
``(D) any other relevant congressional committee of
jurisdiction.
``(2) Covered award.--The term `covered award' means a
Federal award (as defined under section 7501) in an amount not
less than $50,000 (based on fiscal year 2027 constant dollars).
``(3) Covered recipient.--The term `covered recipient'
means any entity, including any State, the District of
Columbia, and any territory or possession of the United States,
including a pass-through entity (as defined under section
7501), that receives the covered award from a particular agency
program for the first time in that program's existence.
``(4) Fraud-risk indicator.--The term `fraud-risk
indicator' means an objective data point or analytic signal
that indicates an anomalous payment pattern or increase in the
volume of a payment amount, a verified data mismatch, network
or behavioral anomaly, or match identified by the Do Not Pay
system and any other payment, account, and payee validation
program or service provided by the Department of the Treasury
that would result in financial loss to the government.''.
(b) Technical and Conforming Amendment.--The table of sections for
chapter 61 of title 31, United States Code, is amended, by adding at
the end the following:
``6107. Single report on first time use of funds by recipient.''.
(c) Clarification of Application of First Reporting Deadline.--The
report required under subsection (a) of section 6107 of title 31,
United States Code, as added by subsection (a), shall apply to a
covered award made during the fiscal year following the promulgation of
regulations or guidance by the Director under subsection (b)(1)(A) of
such section.
SEC. 5. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect on
the date that is 180 days after the date of the enactment of this Act.
Passed the House of Representatives June 8, 2026.
Attest:
Clerk.
119th CONGRESS
2d Session
H. R. 8463
_______________________________________________________________________
AN ACT
To establish governmentwide requirements for pre-payment fraud
prevention actions, to provide the U.S. Treasury appropriate data
resources, to facilitate participation in governmentwide anti-fraud
data sharing, and for other purposes.