[Congressional Record Volume 158, Number 116 (Wednesday, August 1, 2012)]
[Senate]
[Pages S5894-S5898]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
IMPROPER PAYMENTS ELIMINATION AND RECOVERY IMPROVEMENT ACT OF 2012
Mr. REID. Mr. President, I ask unanimous consent that the Senate
proceed to the consideration of Calendar No. 449, S. 1409.
The PRESIDING OFFICER. The clerk will report the bill by title.
The assistant legislative clerk read as follows:
A bill (S. 1409) to intensify efforts to identify, prevent,
and recover payment error, waste, fraud, and abuse within
Federal spending.
There being no objection, the Senate proceeded to consider the bill,
which had been reported from the Committee on Homeland Security and
Governmental Affairs, with an amendment to strike all after the
enacting clause and insert in lieu thereof the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improper Payments
Elimination and Recovery Improvement Act of 2012''.
SEC. 2. DEFINITION.
In this Act, the term ``agency'' means an executive agency
as that term is defined under section 102 of title 31, United
States Code.
SEC. 3. IMPROVING THE DETERMINATION OF IMPROPER PAYMENTS BY
FEDERAL AGENCIES.
(a) In General.--Section 2 of the Improper Payments
Information Act of 2002 (31 U.S.C. 3321 note) is amended--
(1) by redesignating subsections (b) through (g) as
subsections (c) through (h), respectively;
(2) by inserting after subsection (a) the following:
``(b) Improving the Determination of Improper Payments.--
``(1) In general.--The Director of the Office of Management
and Budget shall on an annual basis--
[[Page S5895]]
``(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
frequency of improper payments occur; or
``(ii) for which there is a higher risk of improper
payments; and
``(B) in coordination with the agency responsible for
administering the high-priority program, establish annual
targets and semi-annual or quarterly actions for reducing
improper payments associated with each 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 agency with a program
identified under paragraph (1)(A) on an annual basis shall
submit to the Inspector General of that agency, and make
available to the public (including availability through the
Internet), a report on that program.
``(B) Contents.--Each report under this paragraph--
``(i) shall describe--
``(I) any action the agency--
``(aa) has taken or plans to take to recover improper
payments; and
``(bb) intends to take to prevent future improper payments;
and
``(ii) shall not include any referrals the agency made or
anticipates making to the Department of Justice, or any
information provided in connection with such referrals.
``(C) Public availability on central website.--The Office
of Management and Budget shall make each report submitted
under this paragraph 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 agency that submits a report under this
paragraph shall--
``(i) review--
``(I) the assessment of the level of risk associated with
the applicable program, and the quality of the improper
payment estimates and methodology of the agency; and
``(II) the oversight or financial controls to identify and
prevent improper payments; and
``(ii) provide recommendations, for modifying any plans of
the agency, including improvements for improper payments
determination and estimation methodology.'';
(3) in subsection (d) (as redesignated by paragraph (1) of
this subsection), by striking ``subsection (b)'' each place
that term appears and inserting ``subsection (c)''; and
(4) in subsection (e) (as redesignated by paragraph (1) of
this subsection), by striking ``subsection (b)'' and
inserting ``subsection (c)''.
(b) Improved Estimates.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Director of the Office of
Management and Budget shall provide guidance to agencies for
improving the estimates of improper payments under the
Improper Payments Information Act of 2002 (31 U.S.C. 3321
note).
(2) Guidance.--Guidance under this subsection shall--
(A) strengthen the estimation process of agencies by
setting standards for agencies to follow in determining the
underlying validity of sampled payments to ensure amounts
being billed are proper; and
(B) instruct agencies to give the persons or entities
performing improper payments estimates access to all
necessary payment data, including access to relevant
documentation;
(C) explicitly bar agencies from relying on self-reporting
by the recipients of agency payments as the sole source basis
for improper payments estimates;
(D) require agencies to include all identified improper
payments in the reported estimate, regardless of whether the
improper payment in question has been or is being recovered;
(E) include payments to employees, including salary,
locality pay, travel pay, purchase card use, and other
employee payments, as subject to risk assessment and, where
appropriate, improper payment estimation; and
(F) require agencies to tailor their corrective actions for
the high-priority programs identified under section
2(b)(1)(A) of the Improper Payments Information Act of 2002
(31 U.S.C. 3321 note) to better reflect the unique processes,
procedures, and risks involved in each specific program.
(c) Technical and Conforming Amendments.--The Improper
Payments Elimination and Recovery Act of 2010 (Public Law
111-204; 124 Stat. 2224) is amended--
(1) in section 2(h)(1) (31 U.S.C. 3321 note), by striking
``section 2(f)'' and all that follows and inserting ``section
2(g) of the Improper Payments Information Act of 2002 (31
U.S.C. 3321 note).''; and
(2) in section 3(a) (31 U.S.C. 3321 note)--
(A) in paragraph (1), by striking ``section 2(f)'' and all
that follows and inserting ``section 2(g) of the Improper
Payments Information Act of 2002 (31 U.S.C. 3321 note).'';
and
(B) in paragraph (3)--
(i) by striking ``section 2(b)'' each place it appears and
inserting ``section 2(c)''; and
(ii) by striking ``section 2(c)'' each place it appears and
inserting ``section 2(d)''.
SEC. 4. IMPROPER PAYMENTS INFORMATION.
Section 2(a)(3)(A)(ii) of the Improper Payments Information
Act of 2002 (31 U.S.C. 3321 note) is amended by striking
``with respect to fiscal years following September 30th of a
fiscal year beginning before fiscal year 2013 as determined
by the Office of Management and Budget'' and inserting ``with
respect to fiscal year 2014 and each fiscal year
thereafter''.
SEC. 5. DO NOT PAY INITIATIVE.
(a) Prepayment and Preaward Procedures.--
(1) In general.--Each agency shall review prepayment and
preaward procedures and ensure that a thorough review of
available databases with relevant information on eligibility
occurs to determine program or award eligibility and prevent
improper payments before the release of any Federal funds.
(2) Databases.--At a minimum and before issuing any payment
and award, each agency shall review as appropriate the
following databases to verify eligibility of the payment and
award:
(A) The Death Master File of the Social Security
Administration.
(B) The General Services Administration's Excluded Parties
List System.
(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.
(b) Do Not Pay Initiative.--
(1) Establishment.--There is established the Do Not Pay
Initiative which shall consist of--
(A) the databases described under subsection (a)(2); and
(B) any other database designated by the Director of the
Office of Management and Budget in consultation with
agencies.
(2) Other databases.--In making designations of other
databases under paragraph (1)(B), the Director of the Office
of Management and Budget shall consider any database that
assists in preventing improper payments.
(3) Access and review by agencies.--For purposes of
identifying and preventing improper payments, each agency
shall have access to, and use of, the Do Not Pay Initiative
to determine payment or award eligibility when the Director
of the Office of Management and Budget determines the Do Not
Pay Initiative is appropriately established for the agency.
(4) Payment otherwise required.--When using the Do Not Pay
Initiative, an 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 on the Do Not Pay Initiative.
(c) Database Integration Plan.--Not later than 60 days
after the date of enactment of this Act, the Director of the
Office of Management and Budget shall provide to the Congress
a plan for--
(1) inclusion of other databases on the Do Not Pay
Initiative;
(2) to the extent permitted by law, agency access to the Do
Not Pay Initiative; and
(3) the multilateral data use agreements described under
subsection (e).
(d) Initial Working System.--
(1) Establishment.--Not later than 90 days after the date
of enactment of this Act, the Director of the Office of
Management and Budget shall establish a working system for
prepayment and preaward review that includes the Do Not Pay
Initiative as described under this section.
(2) Working system.--The working system established under
paragraph (1)--
(A) may be located within an appropriate agency;
(B) shall include not less than 3 agencies as users of the
system; and
(C) shall include investigation activities for fraud and
systemic improper payments detection through analytic
technologies and other techniques, which may include
commercial database use or access.
(3) Application to all agencies.--Not later than January 1,
2013, each agency shall review all payments and awards for
all programs of that agency through the system established
under this subsection.
(e) Multilateral Data Use Agreements.--
(1) In general.--Not later than 60 days after the date of
enactment of this Act, the Director of the Office of
Management and Budget shall develop a plan to establish a
multilateral data use agreement authority to carry out this
section, including access to databases such as the New Hire
Database under section 453(j) of the Social Security Act (42
U.S.C. 653(j)).
(2) Privacy act matching agreements.--Section 552a(o)(1) of
title 5, United States Code, is amended in the matter
preceding subparagraph (A), by inserting ``or an agreement
governing multiple agencies'' before ``specifying''.
(3) General protocols and security.--
(A) In general.--In developing the multilateral data use
agreements, the Director of the Office of Management and
Budget shall establish implementing regulations and
guidelines that include streamlined interagency processes to
ensure agency access to data, and provide for appropriate
transfer and storage of any transferred data, in a manner
consistent with relevant privacy, security and disclosure
laws.
(B) Consultation.--The Director of the Office of Management
and Budget shall consult with--
(i) the Council of Inspectors General on Integrity and
Efficiency before implementing this paragraph; and
(ii) the Secretary of Health and Human Services, the Social
Security Administrator, and the head of any other agency, as
appropriate.
(f) Development and Access to a Database of Incarcerated
Individuals.--Not later than 1 year after the date of
enactment of this Act, the Attorney General shall submit to
Congress recommendations for increasing the use of, access
to, and the technical feasibility of using data on the
Federal, State, and local conviction and incarceration status
of individuals for purposes of identifying and preventing
improper payments by Federal agencies and programs and fraud.
[[Page S5896]]
(g) 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.--
(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 the States, the Director of the
Office of Management and Budget shall establish a plan 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 established
under this subsection shall include recommended actions by
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 agencies for determining
ineligible payments due to the death of a recipient through
proactive verification means; and
(E) address improper payments made by agencies to deceased
individuals as part of Federal retirement programs.
(3) Report.--Not later than 120 days after the date of
enactment of this Act, the Director of the Office of
Management and Budget shall submit a report to Congress on
the plan established under this subsection, including
recommended legislation.
SEC. 6. IMPROVING RECOVERY OF IMPROPER PAYMENTS.
(a) Definition.--In this section, the term ``recovery
audit'' means a recovery audit described under section 2(h)
of the Improper Payments Elimination and Recovery Act of
2010.
(b) In General.--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 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.
(c) Recovery Audit Contractor Programs.--
(1) Establishment.--Not later than 90 days after the date
of enactment of this Act, the Director of the Office of
Management and Budget shall establish a plan for no less than
10 Recovery Audit Contracting programs for the purpose of
identifying and recovering overpayments and underpayments in
10 agencies.
(2) Range of recovery audit contracting types.--Programs
established under paragraph (1) shall be representative of
different types of--
(A) programs, including programs that differ in size,
payment types, and recipient types (such as beneficiaries and
vendors or contractors) across the Federal Government; and
(B) recover audit contracting (including individual
payments review and demographic analysis).
(3) Initial operation of programs.--Not later than 1 year
after the plan under paragraph (1) is established, each
applicable agency shall establish the programs included in
that plan which shall be conducted for not more than a 3-year
period.
(4) Reports.--
(A) In general.--Not later than 2 years after establishing
a program under the plan established under paragraph (1), the
head of the agency conducting the program shall submit a
report on the program to Congress.
(B) Contents.--Each report under this paragraph shall
include--
(i) a description of the impact of the program on savings
and recoveries; and
(ii) such recommendations as the head of the agency
considers appropriate on extending or expanding the program.
Mr. REID. Mr. President, I ask unanimous consent that the committee-
reported substitute amendment be considered, the Carper amendment,
which is at the desk, be agreed to, the committee-reported amendment,
as amended, be agreed to, and the bill, as amended, be read a third
time and passed, the motion to reconsider be laid upon the table, with
no intervening action or debate, and any related statements be printed
in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment (No. 2770) was agreed to, as follows:
(Purpose: In the nature of a substitute)
In lieu of the matter proposed to be inserted, insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improper Payments
Elimination and Recovery Improvement Act of 2012''.
SEC. 2. DEFINITIONS.
In this Act--
(1) the term ``agency'' means an executive agency as that
term is defined under section 102 of title 31, United States
Code; and
(2) the term ``improper payment'' has the meaning given
that term in section 2(g) of the Improper Payments
Information Act of 2002 (31 U.S.C. 3321 note), as
redesignated by section 3(a)(1) of this Act.
SEC. 3. IMPROVING THE DETERMINATION OF IMPROPER PAYMENTS BY
FEDERAL AGENCIES.
(a) In General.--Section 2 of the Improper Payments
Information Act of 2002 (31 U.S.C. 3321 note) is amended--
(1) by redesignating subsections (b) through (g) as
subsections (c) through (h), respectively;
(2) by inserting after subsection (a) the following:
``(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 agency responsible for
administering the high-priority program, establish annual
targets and semi-annual or quarterly actions for reducing
improper payments associated with each 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 agency with a program
identified under paragraph (1)(A) on an annual basis shall
submit to the Inspector General of that agency, and make
available to the public (including availability through the
Internet), a report on that program.
``(B) Contents.--Each report under this paragraph--
``(i) shall describe--
``(I) any action the agency--
``(aa) has taken or plans to take to recover improper
payments; and
``(bb) intends to take to prevent future improper payments;
and
``(ii) shall not include any referrals the agency made or
anticipates making to the Department of Justice, or any
information provided in connection with such referrals.
``(C) Public availability on central website.--The Office
of Management and Budget shall make each report submitted
under this paragraph 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 agency that submits a report under this
paragraph shall, for each program of the 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 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 Congress recommendations, which may be
included in another report submitted by the Inspector General
to Congress, for modifying any plans of the agency relating
to the program, including improvements for improper payments
determination and estimation methodology.'';
(3) in subsection (d) (as redesignated by paragraph (1) of
this subsection), by striking ``subsection (b)'' each place
that term appears and inserting ``subsection (c)'';
(4) in subsection (e) (as redesignated by paragraph (1) of
this subsection), by striking ``subsection (b)'' and
inserting ``subsection (c)''; and
(5) in subsection (g)(3) (as redesignated by paragraph (1)
of this subsection), by inserting ``or a Federal employee''
after ``non-Federal person or entity''.
(b) Improved Estimates.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Director of the Office of
Management and Budget shall provide guidance to agencies for
improving the estimates of improper payments under the
Improper Payments Information Act of 2002 (31 U.S.C. 3321
note).
(2) Guidance.--Guidance under this subsection shall--
(A) strengthen the estimation process of agencies by
setting standards for agencies to follow in determining the
underlying validity of sampled payments to ensure amounts
being billed are proper; and
(B) instruct agencies to give the persons or entities
performing improper payments estimates access to all
necessary payment data, including access to relevant
documentation;
(C) explicitly bar agencies from relying on self-reporting
by the recipients of agency payments as the sole source basis
for improper payments estimates;
(D) require agencies to include all identified improper
payments in the reported estimate, regardless of whether the
improper payment in question has been or is being recovered;
(E) include payments to employees, including salary,
locality pay, travel pay, purchase card use, and other
employee payments, as subject to risk assessment and, where
appropriate, improper payment estimation; and
(F) require agencies to tailor their corrective actions for
the high-priority programs
[[Page S5897]]
identified under section 2(b)(1)(A) of the Improper Payments
Information Act of 2002 (31 U.S.C. 3321 note) to better
reflect the unique processes, procedures, and risks involved
in each specific program.
(c) Technical and Conforming Amendments.--The Improper
Payments Elimination and Recovery Act of 2010 (Public Law
111-204; 124 Stat. 2224) is amended--
(1) in section 2(h)(1) (31 U.S.C. 3321 note), by striking
``section 2(f)'' and all that follows and inserting ``section
2(g) of the Improper Payments Information Act of 2002 (31
U.S.C. 3321 note).''; and
(2) in section 3(a) (31 U.S.C. 3321 note)--
(A) in paragraph (1), by striking ``section 2(f)'' and all
that follows and inserting ``section 2(g) of the Improper
Payments Information Act of 2002 (31 U.S.C. 3321 note).'';
and
(B) in paragraph (3)--
(i) by striking ``section 2(b)'' each place it appears and
inserting ``section 2(c)''; and
(ii) by striking ``section 2(c)'' each place it appears and
inserting ``section 2(d)''.
SEC. 4. IMPROPER PAYMENTS INFORMATION.
Section 2(a)(3)(A)(ii) of the Improper Payments Information
Act of 2002 (31 U.S.C. 3321 note) is amended by striking
``with respect to fiscal years following September 30th of a
fiscal year beginning before fiscal year 2013 as determined
by the Office of Management and Budget'' and inserting ``with
respect to fiscal year 2014 and each fiscal year
thereafter''.
SEC. 5. DO NOT PAY INITIATIVE.
(a) Prepayment and Preaward Procedures.--
(1) In general.--Each agency shall review prepayment and
preaward procedures and ensure that a thorough review of
available databases with relevant information on eligibility
occurs to determine program or award eligibility and prevent
improper payments before the release of any Federal funds.
(2) Databases.--At a minimum and before issuing any payment
and award, each agency shall review as appropriate the
following databases to verify eligibility of the payment and
award:
(A) The Death Master File of the Social Security
Administration.
(B) The General Services Administration's Excluded Parties
List System.
(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.
(b) Do Not Pay Initiative.--
(1) Establishment.--There is established the Do Not Pay
Initiative which shall include--
(A) use of the databases described under subsection (a)(2);
and
(B) use of other databases designated by the Director of
the Office of Management and Budget in consultation with
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 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 by agencies.--For purposes of
identifying and preventing improper payments, each agency
shall have access to, and use of, the Do Not Pay Initiative
to verify payment or award eligibility in accordance with
subsection (a) when the Director of the Office of Management
and Budget determines the Do Not Pay Initiative is
appropriately established for the agency.
(4) Payment otherwise required.--When using the Do Not Pay
Initiative, an 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) Database Integration Plan.--Not later than 60 days
after the date of enactment of this Act, the Director of the
Office of Management and Budget shall provide to the Congress
a plan for--
(1) inclusion of other databases on the Do Not Pay
Initiative;
(2) to the extent permitted by law, agency access to the Do
Not Pay Initiative; and
(3) the multilateral data use agreements described under
subsection (e).
(d) Initial Working System.--
(1) Establishment.--Not later than 90 days after the date
of enactment of this Act, the Director of the Office of
Management and Budget shall establish a working system for
prepayment and preaward review that includes the Do Not Pay
Initiative as described under this section.
(2) Working system.--The working system established under
paragraph (1)--
(A) may be located within an appropriate agency;
(B) shall include not less than 3 agencies as users of the
system; and
(C) shall include investigation activities for fraud and
systemic improper payments detection through analytic
technologies and other techniques, which may include
commercial database use or access.
(3) Application to all agencies.--Not later than June 1,
2013, each agency shall review all payments and awards for
all programs of that agency through the system established
under this subsection.
(e) Facilitating Data Access by Federal Agencies and
Offices of Inspectors General for Purposes of Program
Integrity.--
(1) Definition.--In this subsection, the term ``Inspector
General'' means an Inspector General described in
subparagraph (A), (B), or (I) of section 11(b)(1) of the
Inspector General Act of 1978 (5 U.S.C. App.).
(2) Computer matching by federal 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, United States Code
(commonly known as the Privacy Act of 1974), each Inspector
General and the head of each agency may enter into computer
matching agreements 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 a proposal for an
agreement under subparagraph (A) has been presented to a Data
Integrity Board established under section 552a(u) of title 5,
United States Code, for consideration, the Data Integrity
Board shall respond to the proposal.
(C) Termination date.--An agreement under 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 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, United States Code, 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, United States Code, relating to an
agreement under subparagraph (A) is not required to contain a
specific estimate of any savings under the computer matching
agreement.
(F) Guidance by the office of management and budget.--Not
later than 6 months after the date of enactment of this Act,
and in consultation with the Council of Inspectors General on
Integrity and Efficiency, the Secretary of Health and Human
Services, the Commissioner of Social Security, and the head
of any other relevant agency, the Director of the Office of
Management and Budget shall--
(i) issue guidance for agencies regarding implementing this
paragraph, which shall include standards for--
(I) reimbursement of costs, when necessary, between
agencies;
(II) retention and timely destruction of records in
accordance with section 552a(o)(1)(F) of title 5, United
States Code;
(III) prohibiting duplication and redisclosure of records
in accordance with section 552a(o)(1)(H) of title 5, United
States Code;
(ii) review the procedures of the Data Integrity Boards
established under section 552a(u) of title 5, United States
Code, and develop new guidance for the Data Integrity Boards
to--
(I) improve the effectiveness and responsiveness of the
Data Integrity Boards; and
(II) ensure privacy protections in accordance with section
552a of title 5, United States Code (commonly known as the
Privacy Act of 1974); and
(III) establish standard matching agreements for use when
appropriate; and
(iii) establish and clarify rules regarding what
constitutes making an agreement entered under subparagraph
(A) available upon request to the public for purposes of
section 552a(o)(2)(A)(ii) of title 5, United States Code,
which shall include requiring publication of the agreement on
a public website.
(G) Corrections.--The Director of the Office of Management
and Budget shall establish procedures providing for the
correction of data in order to ensure--
(i) compliance with section 552a(p) of title 5, United
States Code; and
(ii) that corrections are made in any Do Not Pay Initiative
database and in any relevant source databases designated by
the Director of the Office of Management and Budget under
subsection (b)(1).
(H) Compliance.--The head of each agency, in consultation
with the Inspector General of the 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.
(I) Rule of construction.--Nothing in this subsection shall
be construed to affect the
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rights of an individual under section 552a(p) of title 5,
United States Code.
(f) Development and Access to a Database of Incarcerated
Individuals.--Not later than 1 year after the date of
enactment of this Act, the Attorney General shall submit to
Congress recommendations for increasing the use of, access
to, and the technical feasibility of using data on the
Federal, State, and local conviction and incarceration status
of individuals for purposes of identifying and preventing
improper payments by Federal agencies and programs and fraud.
(g) 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.--
(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 the States, the Director of the
Office of Management and Budget shall establish a plan 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 established
under this subsection shall include recommended actions by
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 agencies for determining
ineligible payments due to the death of a recipient through
proactive verification means; and
(E) address improper payments made by agencies to deceased
individuals as part of Federal retirement programs.
(3) Report.--Not later than 120 days after the date of
enactment of this Act, the Director of the Office of
Management and Budget shall submit a report to Congress on
the plan established under this subsection, including
recommended legislation.
SEC. 6. IMPROVING RECOVERY OF IMPROPER PAYMENTS.
(a) Definition.--In this section, the term ``recovery
audit'' means a recovery audit described under section 2(h)
of the Improper Payments Elimination and Recovery Act of
2010.
(b) Review.--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 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.
The committee-reported substitute, as amended, was agreed to.
The bill (S. 1409), as amended, was ordered to be engrossed for a
third reading, was read the third time, and passed.
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