[House Report 114-299]
[From the U.S. Government Publishing Office]


114th Congress   }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                      {      114-299

======================================================================



 
           FEDERAL IMPROPER PAYMENTS COORDINATION ACT OF 2015

                                _______
                                

October 20, 2015.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Chaffetz, from the Committee on Oversight and Government Reform, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2320]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Government Reform, to whom 
was referred the bill (H.R. 2320) to provide access to and use 
of information by Federal agencies in order to reduce improper 
payments, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Committee Statement and Views....................................     3
Section-by-Section...............................................     5
Explanation of Amendments........................................     6
Committee Consideration..........................................     6
Roll Call Votes..................................................     6
Application of Law to the Legislative Branch.....................     6
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     6
Statement of General Performance Goals and Objectives............     6
Duplication of Federal Programs..................................     6
Disclosure of Directed Rule Makings..............................     7
Federal Advisory Committee Act...................................     7
Unfunded Mandate Statement.......................................     7
Earmark Identification...........................................     7
Committee Estimate...............................................     7
Budget Authority and Congressional Budget Office Cost Estimate...     7
Changes in Existing Law Made by the Bill, as Reported............     9

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Federal Improper Payments Coordination 
Act of 2015''.

SEC. 2. AVAILABILITY OF THE DO NOT PAY INITIATIVE TO THE JUDICIAL AND 
                    LEGISLATIVE BRANCHES AND STATES.

  Section 5 of the Improper Payments Elimination and Recovery 
Improvement Act of 2012 (31 U.S.C. 3321 note) is amended--
          (1) in subsection (b)(3)--
                  (A) in the paragraph heading, by striking ``by 
                agencies''; and
                  (B) by adding at the end the following: ``States and 
                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, United 
                States Code), shall have access to, and use of, the Do 
                Not Pay Initiative for the purpose of verifying payment 
                or award eligibility for payments (as defined in 
                section 2(g)(3) of the Improper Payments Information 
                Act of 2002 (31 U.S.C. 3321 note)) when, with respect 
                to a State, the Director of the Office of Management 
                and Budget determines that the Do Not Pay Initiative is 
                appropriately established for that State and any 
                contractor, subcontractor, or agent of the State, and, 
                with respect to the judicial and legislative branches 
                of the United States, when the Director of the Office 
                of Management and Budget determines that the Do Not Pay 
                Initiative is appropriately established for the 
                judicial branch or the legislative branch, as 
                applicable. To ensure consistency with the principles 
                of section 552a of title 5, United States Code 
                (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.''; and
          (2) in subsection (d)(2)--
                  (A) in subparagraph (B), by striking ``and'' after 
                the semicolon;
                  (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                  (C) by inserting after subparagraph (C) the 
                following:
                  ``(D) may include States and their quasi-government 
                entities, 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, 
                United States Code) as users of the system in 
                accordance with subsection (b)(3).''.

SEC. 3. IMPROVING THE SHARING AND USE OF DATA BY GOVERNMENT AGENCIES TO 
                    CURB IMPROPER PAYMENTS.

  The Improper Payments Elimination and Recovery Improvement Act of 
2012 (31 U.S.C. 3321 note) is amended--
          (1) in section 5(a)(2), by striking subparagraph (A) and 
        inserting the following:
                  ``(A) The death records maintained by the 
                Commissioner of Social Security.''; and
          (2) by adding at the end the following:

``SEC. 7. IMPROVING THE USE OF DATA BY GOVERNMENT AGENCIES FOR CURBING 
                    IMPROPER PAYMENTS.

  ``(a) Prompt Reporting of Death Information by the Department of 
State and the Department of Defense.--Not later than 1 year after the 
date of enactment of this section, the Secretary of State and the 
Secretary of Defense shall establish a procedure under which each 
Secretary shall, promptly and on a regular basis, submit information 
relating to the deaths of individuals to each agency for which the 
Director of the Office of Management and Budget determines receiving 
and using such information would be relevant and necessary.
  ``(b) Guidance to Agencies Regarding Data Access and Use for Improper 
Payments Purposes.--
          ``(1) In general.--Not later than 12 months after the date of 
        enactment of this section, the Director of the Office of 
        Management and Budget, in consultation with the Council of the 
        Inspectors General on Integrity and Efficiency, the heads of 
        other relevant Federal, State, and local agencies, and Indian 
        tribes and tribal organizations, as appropriate, shall issue 
        guidance regarding implementation of the Do Not Pay Initiative 
        under section 5 to--
                  ``(A) the Department of the Treasury; and
                  ``(B) each agency or component of an agency--
                          ``(i) that operates or maintains a database 
                        of information described in section 5(a)(2); or
                          ``(ii) for which the Director determines 
                        improved data matching would be relevant, 
                        necessary, or beneficial.
          ``(2) Requirements.--The guidance issued under paragraph (1) 
        shall--
                  ``(A) address the implementation of subsection (a); 
                and
                  ``(B) include the establishment of deadlines for 
                access to and use of the databases described in section 
                5(a)(2) under the Do Not Pay Initiative.''.

SEC. 4. DATA ANALYTICS.

  Section 5 of the Improper Payments Elimination and Recovery 
Improvement Act of 2012 (31 U.S.C. 3321 note), is amended by adding at 
the end the following:
  ``(h) Report on Improper Payments Data Analysis.--Not later than 180 
days after the date of enactment of the Federal Improper Payments 
Coordination Act of 2015, the Secretary of the Treasury shall submit to 
Congress a report which shall include a description of--
          ``(1) data analytics performed as part of the Do Not Pay 
        Business Center operated by the Department of the Treasury for 
        the purpose of detecting, preventing, and recovering improper 
        payments through preaward, postaward prepayment, and 
        postpayment analysis, which shall include a description of any 
        analysis or investigations incorporating--
                  ``(A) review and data matching of payments and 
                beneficiary enrollment lists of State programs carried 
                out using Federal funds for the purposes of identifying 
                eligibility duplication, residency ineligibility, 
                duplicate payments, or other potential improper payment 
                issues;
                  ``(B) review of multiple Federal agencies and 
                programs for which comparison of data could show 
                payment duplication; and
                  ``(C) review of other information the Secretary of 
                the Treasury determines could prove effective for 
                identifying, preventing, or recovering improper 
                payments, which may include investigation or review of 
                information from multiple Federal agencies or programs;
          ``(2) the metrics used in determining whether the analytic 
        and investigatory efforts have reduced, or contributed to the 
        reduction of, improper payments or improper awards; and
          ``(3) the target dates for implementing the data analytics 
        operations performed as part of the Do Not Pay Business 
        Center.''.

                     Committee Statement and Views


                          PURPOSE AND SUMMARY

    H.R. 2320, the Federal Improper Payments Coordination Act 
of 2015, reduces improper payments by making data available to 
program administrators. The bill expands access to databases 
included in the Do Not Pay Initiative to states, state 
contractors, and the judicial and legislative branches of the 
United States. H.R. 2320 expands access to death records to 
verify eligibility for payments and awards. The bill also 
requires the Department of Treasury to submit a report on its 
work to reduce improper payments through the Do Not Pay Center.

                  BACKGROUND AND NEED FOR LEGISLATION

    Federal agencies make more than $2 trillion in payments to 
individuals and a variety of other entities each year.\1\ In 
each of the last six years, federal agencies have made more 
than $100 billion in improper payments.\2\ Improper payments 
include payments made to ineligible recipients, duplicate 
payments, payments for goods or services not received, and 
payments that do not account for credit or applicable 
discounts.\3\ Since government agencies first began reporting 
in 2004, the federal government has made nearly $1 trillion in 
improper payments.\4\
---------------------------------------------------------------------------
    \1\Dep't of Treasury Bureau of the Fiscal Service, Do Not Pay 
Agency Implementation Guide For Treasury's Working System (Dec. 2014), 
available at donotpay.treas.gov/DNPAgency ImplementationGuidePublic.pdf 
(last visited Sept. 22, 2015).
    \2\Office of Mgmt. & Budget, Improper Payment Amounts (FYs 2004-
2014), available at paymentaccuracy.gov/improper-payment-amounts (last 
visited Sept. 22, 2015) (hereinafter Improper Payment Amounts (FYs 
2004-2014)).
    \3\Congressional Research Serv., Improper Payments in High Priority 
Programs: In Brief (Aug. 18, 2014) (R43694) (hereinafter Improper 
Payments in High Priority Programs: In Brief).
    \4\Improper Payment Amounts (FYs 2004-2014), supra note 2.
---------------------------------------------------------------------------
    H.R. 4878, the Improper Payments Information Act (IPIA) of 
2002,\5\ directed federal agencies to identify programs with 
excessive improper payments and report the estimated rate of 
improper payments. Reporting began in fiscal year 2004.\6\ In 
2006, the Government Accountability Office reported that the 
first two years of IPIA reporting failed to capture the full 
scope of federal improper payments.\7\ In 2010, Congress passed 
the Improper Payments Elimination and Recovery Act (IPERA)\8\ 
to establish specific requirements for identifying programs 
with significant improper payments, impose requirements to 
audit programs to recover improper payments, and require the 
agency's inspector general to review compliance with IPIA and 
IPERA.
---------------------------------------------------------------------------
    \5\Improper Payments Info. Act of 2002, Pub. L. No. 107-300.
    \6\Improper Payments in High Priority Programs: In Brief, supra 
note 3.
    \7\Gov't Accountability Office, Incomplete Reporting under the 
Improper Payments Info. Act Masks the Extent of the Problem (Dec. 5, 
2006) (GAO-07-254T).
    \8\Improper Payments Elimination & Recovery Act of 2010, Pub. L. 
No. 111-204.
---------------------------------------------------------------------------
    In 2012, Congress revisited improper payments and passed 
the Improper Payments Elimination and Recovery Improvement Act 
of 2012 (IPERIA). IPERIA expanded the requirements placed on 
agencies to report, identify, and recover improper payments 
through reduction targets and error rates.\9\ IPERIA also 
codified and expanded the Do Not Pay Initiative, which now 
serves as a central location for agencies to check payment data 
against multiple other databases to verify eligibility. To 
date, the statutory requirements of the Do Not Pay Initiative 
have not been fully implemented, such as full participation 
from all federal agencies. To help ensure statutory compliance, 
the Committee expects that the Department of Treasury 
encourage, provide and maintain access to the Do Not Pay 
Initiative as a one-stop data shop, including through the use 
of single agreements for access to all of the databases that 
make up the Do Not Pay Business Center.
---------------------------------------------------------------------------
    \9\Gov't Accountability Office, OIG Improper Payment Reporting, at 
1, (Dec. 9, 2014) (GAO-15-87R).
---------------------------------------------------------------------------
    H.R. 2320 reforms the methods used to identify and track 
improper payments, specifically providing ``states and any 
contractor, subcontractor or agency of the State, and the 
judicial and legislative branches of the United States'' access 
to the Do Not Pay Initiative, as well as expanded access to 
death records and reporting. To gain a better understanding of 
what the Department of Treasury needs to fully implement the 
requirements in IPERIA, H.R. 2320 requires Treasury to produce 
a report on the data analytic capabilities of the Do Not Pay 
Business Center.

                          LEGISLATIVE HISTORY

    H.R. 2320, the Federal Improper Payments Coordination Act 
of 2015, was introduced by Congressman Mick Mulvaney (R-SC) on 
May 14, 2015 and referred to the Committee on Oversight and 
Government Reform. On July 22, 2015, the Committee on Oversight 
and Government Reform ordered H.R. 2320 favorably reported, 
with an amendment in the nature of a substitute offered by 
Congressman Mulvaney. Congresswoman Cheri Bustos (D-IL), 
Congressman Earl L. ``Buddy'' Carter (R-GA), Congressman Gerald 
Connolly (D-VA), and Congressman Lynn Westmoreland (R-GA) are 
original cosponsors.
    The companion bill, S. 614, was introduced by Senator 
Thomas R. Carper (D-DE) on February 7, 2015 and referred to the 
Senate Committee on Homeland Security and Governmental Affairs. 
On March 4, 2015, the Committee on Homeland Security and 
Governmental Affairs ordered S. 614 favorably reported, without 
amendment, by voice vote, en bloc. S. 614 passed the Senate by 
unanimous consent on July 28, 2015. The bill was sent to the 
House and held at the desk.
    During the 113th Congress, Senator Carper introduced 
legislation that included the concepts of S. 614 on July 24, 
2013. The bill, S. 1360, was ordered reported by the Committee 
on Homeland Security and Governmental Affairs on July 31, 2013 
and passed the Senate by unanimous consent on September 18, 
2014. The legislation was held at the desk by the House. 
Congresswoman Cheri Bustos (D-IL) introduced the companion 
bill, H.R. 3555, on November 20, 2013, which was referred to 
the Committees on Oversight and Government Reform and Ways and 
Means. No further action was taken.

                           Section-by-Section


Section 1. Short title

    Designates the short title of the bill as the ``Federal 
Improper Payments Coordination Act of 2015''.

Section 2. Availability of the Do Not Pay Initiative to the judicial 
        and legislative branches and states

    Expands access to the Do Not Pay Center to states and any 
contractor, subcontractor or agency of the State, and the 
judicial and legislative branches of the United States.

Section 3. Improving the sharing and use of data by government agencies 
        to curb improper payments

    Expands the requirement that agencies review certain 
databases prior to issuing any payment or award to verify 
eligibility to include the death records maintained by the 
Commissioner of Social Security.
    Requires the Secretaries of State and Defense to establish 
a procedure to submit information relating to deaths of 
individuals to agencies as determined by the Director of the 
Office of Management and Budget (OMB).
    Requires OMB to issue guidance on implementing the Do Not 
Pay Initiative to address the procedures established by 
Secretaries of State and Defense to disseminate death 
information and to establish deadlines for access and use of 
certain databases to determine eligibility prior to issuing a 
payment or award.

Section 4. DATA analytics

    Requires the Department of Treasury to issue a report on 
data analytics performed by the Do Not Pay Center, metrics used 
to determine if efforts have reduced improper payments, and 
target dates for implementing the data analytics operations 
performed as part of the Do Not Pay Center.

                       Explanation of Amendments

    Congressman Mulvaney offered an amendment in the nature of 
a substitute to the bill. The amendment allows the Director of 
the Office of Management and Budget to establish privacy and 
other requirements to be incorporated into the Do Not Pay 
program access agreements with the States, state contractors, 
and judicial and legislative branches. The amendment was 
adopted by voice vote.

                        Committee Consideration

    On July 22, 2015, the Committee met in open session and 
ordered reported favorably the bill, H.R. 2320, as amended, by 
voice vote, a quorum being present.

                            Roll Call Votes

    No recorded votes were taken during Full Committee 
consideration of the bill.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill enhances access to the Do Not Pay center as a tool to 
identify fraud and other improper payments. As such this bill 
does not relate to employment or access to public services and 
accommodations.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goal or objective of the bill is to provide access to and use 
of information by Federal agencies in order to reduce improper 
payments.

                    Duplication of Federal Programs

    No provision of this bill establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting this bill does not 
direct the completion of any specific rule makings within the 
meaning of 5 U.S.C. 551. The bill requires the Office of 
Management and Budget to issue guidance on implementing the Do 
Not Pay Initiative to address the procedures established by 
Secretaries of State and Defense to disseminate death 
information and to establish deadlines for access and use of 
certain databases to determine eligibility prior to issuing a 
payment or award.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement as to 
whether the provisions of the reported bill include unfunded 
mandates. In compliance with this requirement the Committee has 
received a letter from the Congressional Budget Office included 
herein.

                         Earmark Identification

    This bill does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                           Committee Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
this bill. However, clause 3(d)(2)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for this bill from the Director of 
Congressional Budget Office:

H.R. 2320--Federal Improper Payments Coordination Act of 2015

    H.R. 2320 would amend federal law with an aim to reduce 
improper payments made by the federal government. Improper 
payments occur when funds are paid to the wrong recipient, the 
recipient receives the incorrect amount of funds, documentation 
is not available to support a payment, or the recipient uses 
funds in an improper manner.\1\ Specifically, the legislation 
would authorize the judicial and legislative branches, as well 
as state government agencies that manage federal programs, to 
use the Treasury Department's Do Not Pay (DNP) Program. The 
Office of Management and Budget (OMB) would provide guidance on 
its use. (Agencies use that program to check various databases 
before making payments or contract awards in order to identify 
ineligible recipients and to prevent other payment errors.) 
H.R. 2320 also would direct the Secretaries of State and 
Defense to improve the accuracy of their payment systems by 
sharing information relating to the deaths of individuals. 
Finally, the Secretary of the Treasury would be required to 
submit a report to the Congress on efforts to reduce improper 
payments.
---------------------------------------------------------------------------
    \1\A fraudulent payment (the intentional misuse of funds) may be 
related to an improper payment, but they are not necessarily the same. 
Efforts to curtail improper payments do not exclusively target fraud 
prevention. For additional information see: Congressional Budget 
Office: How Initiatives to Reduce Fraud in Federal Health Care Programs 
Affect the Budget (October 2014).
---------------------------------------------------------------------------
    OMB reports that about $125 billion in improper payments 
were made by the federal government in 2014, which represented 
about 4 percent of the $3 trillion in government-wide spending 
that year. Although implementing the bill would probably result 
in fewer improper payments, any subsequent budgetary savings 
would not be significant for several reasons:
           Most improper payments result from 
        incomplete documentation related to the payment and 
        correcting that documentation usually does not alter 
        the amount of the payment;
           Over 80 percent of improper payments stem 
        from the larger federal entitlement programs such as 
        Medicare, Medicaid, Unemployment Insurance, and 
        Supplemental Security Income. The bill would not 
        provide any new authorities to help those programs 
        reduce improper payments;
           The judicial and legislative branches of the 
        government can already access the DNP program under 
        current law, according to Treasury Department 
        officials;
           Spending by those branches represents less 
        than 1 percent of total federal spending and most of it 
        is for salaries and expenses. Such spending generally 
        does not result in large numbers of improper payments;
           State and local governments already use 
        databases similar to the DNP to detect improper 
        payments.
    In fact, no measures used by OMB or evidence from the 
Government Accountability Office (GAO) indicate that focusing 
on correcting improper payments would lead to a significant 
reduction in federal spending.
    Because enacting the bill could affect direct spending for 
federal entitlement programs, pay-as-you-go procedures apply. 
However, CBO estimates that any change in direct spending would 
not be significant for the reasons stated above. We also 
estimate that implementing H.R. 2320 would result in additional 
spending of about $1 million in 2016 and less than $500,000 in 
subsequent years, primarily to cover additional administrative 
costs by OMB and the Departments of Defense, State, and the 
Treasury. Such additional spending would be subject to the 
availability of appropriated funds.
    H.R. 2320 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    On June 18, 2015, CBO provided a cost estimate for S. 614, 
the Federal Improper Payments Coordination Act of 2015, as 
ordered reported by the Senate Committee on Homeland Security 
and Governmental Affairs on March 4, 2015. While both bills 
have identical provisions dealing with improper payments, H.R. 
2320 includes additional responsibilities for OMB. The CBO cost 
estimates reflect that difference.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was approved by Theresa Gullo, Assistant 
Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

   IMPROPER PAYMENTS ELIMINATION AND RECOVERY IMPROVEMENT ACT OF 2012




           *       *       *       *       *       *       *
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.]
                  (A) The death records maintained by the 
                Commissioner of Social Security.
                  (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.
                  (F) Information regarding incarcerated 
                individuals maintained by the Commissioner of 
                Social Security under sections 202(x) and 
                1611(e) of the Social Security Act.
  (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. States and 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, United States Code), shall have access to, and use 
        of, the Do Not Pay Initiative for the purpose of 
        verifying payment or award eligibility for payments (as 
        defined in section 2(g)(3) of the Improper Payments 
        Information Act of 2002 (31 U.S.C. 3321 note)) when, 
        with respect to a State, the Director of the Office of 
        Management and Budget determines that the Do Not Pay 
        Initiative is appropriately established for that State 
        and any contractor, subcontractor, or agent of the 
        State, and, with respect to the judicial and 
        legislative branches of the United States, when the 
        Director of the Office of Management and Budget 
        determines that the Do Not Pay Initiative is 
        appropriately established for the judicial branch or 
        the legislative branch, as applicable. To ensure 
        consistency with the principles of section 552a of 
        title 5, United States Code (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.
          (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 data use agreements described under 
        subsection (e)(2)(D).
  (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[.]; and
                  (D) may include States and their quasi-
                government entities, 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, 
                United States Code) as users of the system in 
                accordance with subsection (b)(3).
          (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 any 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.) and any successor Inspector General.
          (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 with other 
                inspectors general and agency heads 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.
          (3) 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 the 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--
                  (A) issue guidance for agencies regarding 
                implementing this subsection, 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; and
                          (iii) prohibiting duplication and 
                        redisclosure of records in accordance 
                        with section 552a(o)(1)(H) of title 5, 
                        United States Code;
                  (B) 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;
                          (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
                  (C) establish and clarify rules regarding 
                what constitutes making an agreement entered 
                under paragraph (2)(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.
          (4) Corrections.--The Director of the Office of 
        Management and Budget shall establish procedures 
        providing for the correction of data in order to 
        ensure--
                  (A) compliance with section 552a(p) of title 
                5, United States Code; and
                  (B) 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).
          (5) 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.
          (6) Rule of construction.--Nothing in this subsection 
        shall be construed to affect the 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.
  (h) Report on Improper Payments Data Analysis.--Not later 
than 180 days after the date of enactment of the Federal 
Improper Payments Coordination Act of 2015, the Secretary of 
the Treasury shall submit to Congress a report which shall 
include a description of--
          (1) data analytics performed as part of the Do Not 
        Pay Business Center operated by the Department of the 
        Treasury for the purpose of detecting, preventing, and 
        recovering improper payments through preaward, 
        postaward prepayment, and postpayment analysis, which 
        shall include a description of any analysis or 
        investigations incorporating--
                  (A) review and data matching of payments and 
                beneficiary enrollment lists of State programs 
                carried out using Federal funds for the 
                purposes of identifying eligibility 
                duplication, residency ineligibility, duplicate 
                payments, or other potential improper payment 
                issues;
                  (B) review of multiple Federal agencies and 
                programs for which comparison of data could 
                show payment duplication; and
                  (C) review of other information the Secretary 
                of the Treasury determines could prove 
                effective for identifying, preventing, or 
                recovering improper payments, which may include 
                investigation or review of information from 
                multiple Federal agencies or programs;
          (2) the metrics used in determining whether the 
        analytic and investigatory efforts have reduced, or 
        contributed to the reduction of, improper payments or 
        improper awards; and
          (3) the target dates for implementing the data 
        analytics operations performed as part of the Do Not 
        Pay Business Center

           *       *       *       *       *       *       *


SEC. 7. IMPROVING THE USE OF DATA BY GOVERNMENT AGENCIES FOR CURBING 
                    IMPROPER PAYMENTS.

  (a) Prompt Reporting of Death Information by the Department 
of State and the Department of Defense.--Not later than 1 year 
after the date of enactment of this section, the Secretary of 
State and the Secretary of Defense shall establish a procedure 
under which each Secretary shall, promptly and on a regular 
basis, submit information relating to the deaths of individuals 
to each agency for which the Director of the Office of 
Management and Budget determines receiving and using such 
information would be relevant and necessary.
  (b) Guidance to Agencies Regarding Data Access and Use for 
Improper Payments Purposes.--
          (1) In general.--Not later than 12 months after the 
        date of enactment of this section, the Director of the 
        Office of Management and Budget, in consultation with 
        the Council of the Inspectors General on Integrity and 
        Efficiency, the heads of other relevant Federal, State, 
        and local agencies, and Indian tribes and tribal 
        organizations, as appropriate, shall issue guidance 
        regarding implementation of the Do Not Pay Initiative 
        under section 5 to--
                  (A) the Department of the Treasury; and
                  (B) each agency or component of an agency--
                          (i) that operates or maintains a 
                        database of information described in 
                        section 5(a)(2); or
                          (ii) for which the Director 
                        determines improved data matching would 
                        be relevant, necessary, or beneficial.
          (2) Requirements.--The guidance issued under 
        paragraph (1) shall--
                  (A) address the implementation of subsection 
                (a); and
                  (B) include the establishment of deadlines 
                for access to and use of the databases 
                described in section 5(a)(2) under the Do Not 
                Pay Initiative.

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