[Congressional Record Volume 166, Number 24 (Wednesday, February 5, 2020)]
[House]
[Pages H819-H825]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               PAYMENT INTEGRITY INFORMATION ACT OF 2019

  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I move to suspend 
the rules and pass the bill (S. 375) to improve efforts to identify and 
reduce Governmentwide improper payments, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                 S. 375

       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').

[[Page H820]]

       ``(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,

[[Page H821]]

     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

[[Page H822]]

       ``(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.

[[Page H823]]

       ``(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

[[Page H824]]

     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

[[Page H825]]

       (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).

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Mrs. Carolyn B. Maloney) and the gentleman from North 
Carolina (Mr. Meadows) each will control 20 minutes.
  The Chair recognizes the gentlewoman from New York.


                             General Leave

  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I ask unanimous 
consent that all Members may have 5 legislative days within which to 
revise and extend their remarks and include extraneous material on the 
measure before us.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I yield myself such 
time as I may consume.
  Improper payments include overpayments, underpayments, payments to 
the incorrect recipient, and those that lack proper documentation. They 
are a longstanding and significant problem in the Federal Government. 
In fiscal year 2018 alone, they totaled more than $151 billion.
  Congress has passed a number of laws over the past two decades to try 
and address this problem, but the problem, unfortunately, persists.
  S. 375, the Payment Integrity Information Act, would consolidate the 
existing and proper payment laws in one place in the U.S. Code and make 
several changes to help identify and reduce improper payments. It would 
require agencies to develop plans to prevent improper payments and also 
to identify programs with the highest risk.
  It would also require the Office of Management and Budget and 
inspectors general to offer guidance on how to improve annual reporting 
on improper payments.
  Finally, the bill will create a working group of Federal agencies and 
non-Federal partners to develop strategies for addressing the key 
causes of improper payments, such as fraud and eligibility 
determination in State-managed Federal benefits programs.
  I thank Senators Tom Carper, Ron Johnson, Gary Peters, and Mike Braun 
for their good work on this commonsense measure. I commend Senator 
Carper for his longstanding dedication to reducing improper payments.
  Mr. Speaker, I urge my colleagues to support this important measure 
to reduce waste and fraud in Federal programs, and I reserve the 
balance of my time.
  Mr. MEADOWS. Mr. Speaker, I rise in support of S. 375, the Payment 
Integrity Information Act of 2019. I know that I am not alone in 
addressing the Speaker on the will of the House, but there are very few 
times that we see a whole lot of good that comes out of the other 
Chamber in the Capitol. This is one of the rare moments.

                              {time}  1600

  So as I see this, I would actually encourage support of it.
  According to the GAO, since 2003, we have had $1.5 trillion--that is 
trillion with a T--in improper payments. In fiscal year 2018 alone, 
Federal agencies estimated that there was $151 billion in improper 
payments.
  The Speaker probably knows that oftentimes we have had, in Oversight 
Committee, annual reports on improper payments, and consistently we are 
talking about hundreds of billions of dollars that are sent to not only 
the wrong place, but in terms that are not even accounted for. And 
after you get hundreds of billions year after year, eventually that 
adds up to real money. It is time that we address it.
  This is a commonsense piece of legislation that brings everything 
together so that we can start, hopefully, addressing the sad state of 
where we are in addressing improper payments. The American taxpayers 
demand it, the American taxpayers deserve it, and, ultimately, we have 
a responsibility to address it. So I rise in support of this.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I yield 3 minutes 
to the gentlewoman from Minnesota (Ms. Craig), the House sponsor for 
this bill.
  Ms. CRAIG. Mr. Speaker, I thank the chairwoman for yielding.
  Mr. Speaker, I rise today in support of S. 375, the Payment Integrity 
Information Act. I was proud to introduce H.R. 5389, the House 
companion to this bill, earlier this year.
  Mr. Speaker, I thank the Congressman, Mr. Meadows, as well as 
Representatives Cheri Bustos and   Greg Gianforte for their work on 
this bill.
  My constituents sent me here to Congress to represent some of the 
hardest working, creative, and entrepreneurial folks in our country. 
Every day, I work to protect the hard-earned dollars of these families, 
and I remain committed to ensuring that the Federal Government is a 
good steward of their tax dollars.
  In fiscal year 2018 alone, the Government Accountability Office 
estimated that improper payments throughout the Federal Government 
totaled $151 billion. Since 2003, when agencies were first directed to 
begin reporting improper payments, cumulative improper payments 
estimated across government have totaled $1.4 trillion.
  These improper payments can be overpayments, underpayments, payments 
made to ineligible parties, or payments that were not properly 
documented. Frankly, it is outrageous.
  Whether it is overpaying a defense contractor or underpaying a senior 
on their Social Security benefits, the Federal Government has an 
obligation to put commonsense policies in place to end these improper 
payments.
  Mr. Speaker, I urge all of my colleagues to support this bipartisan 
and commonsense bill to tackle Federal waste, fraud, and abuse so that 
we can make room to fund the priorities that Minnesota families care so 
much about, like special education and addressing our crumbling 
infrastructure.
  Mr. MEADOWS. Mr. Speaker, again, this bill actually takes five 
different laws that have really not been codified in an appropriate 
manner, brings them together under one umbrella, and allows us to 
address this in a meaningful way, a commonsense bill.
  Mr. Speaker, I join my colleagues opposite to thank them for their 
support. I rise in support of this legislation.
  Mr. Speaker, I yield back the balance of my time.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I urge passage of 
S. 375, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from New York (Mrs. Carolyn B. Maloney) that the House 
suspend the rules and pass the bill, S. 375.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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