Stopping Improper Payments to Deceased People Act

Summary: Stopping Improper Payments to Deceased People Act  Amends title II (Old Age, Survivors, and Disability Insurance Benefits) of the Social Security Act to direct the Social Security Administration (SSA) to: (1) provide information on all deceased individuals that is furnished to or maintained by SSA, subject to appropriate safeguards against unauthorized use or disclosure, to federal or state agencies providing benefits or administering a federal program; and (2) provide for the use of such information by federal agencies to operate the Do Not Pay working system and to carry out tax administration or debt collection duties.  Directs the Office of Management and Budget (OMB) to analyze and report to Congress on potential alternative sources of death data maintained by non-federal sources.  Amends the Improper Payments Elimination and Recovery Improvement Act of 2012 to require the OMB to: (1) issue guidance to agencies that operate or maintain a database of information relating to beneficiaries, annuity recipients, or other purposes for which improved data matching with databases would be relevant and necessary; (2) develop a plan to assist states and local agencies, and Indian Tribes and tribal organizations, to provide information, in an electronic format, to the federal government on the deaths of individuals; and (3) submit to Congress a plan to improve data matching with the federal government on the death of individuals who are benefit recipients and an annual report on the implementation of such requirements.  Directs the SSA to submit a plan to ensure the accuracy and completeness of death data of individuals who are not eligible for or receiving social security benefits. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stopping Improper Payments to 
Deceased People Act''.

SEC. 2. DISTRIBUTION OF DEATH INFORMATION FURNISHED TO OR MAINTAINED BY 
              THE SOCIAL SECURITY ADMINISTRATION.

    (a) In General.--
            (1) In general.--Section 205(r) of the Social Security Act 
        (42 U.S.C. 405(r)) is amended--
                    (A) in paragraph (2)--
                            (i) by striking ``may'' and inserting 
                        ``shall''; and
                            (ii) by inserting ``, and to ensure the 
                        completeness, timeliness, and accuracy of,'' 
                        after ``transmitting'';
                    (B) by striking paragraphs (3), (4), and (5) and 
                inserting the following:
    ``(3)(A) The Commissioner of Social Security shall, to the extent 
feasible, provide for the use of information regarding all deceased 
individuals furnished to or maintained by the Commissioner under this 
subsection in accordance with subparagraph (B), subject to such 
safeguards as the Commissioner of Social Security determines are 
necessary or appropriate to protect the information from unauthorized 
use or disclosure, by any Federal or State agency providing federally 
funded benefits or administering a Federal program for such benefits, 
including the agency operating the Do Not Pay working system for 
ensuring proper payment of those benefits, through a cooperative 
arrangement with the agency (that includes the agency's Inspector 
General) or with an agency's Inspector General, if--
            ``(i) under such arrangement the agency (including, if 
        applicable, the agency's Inspector General) provides 
        reimbursement to the Commissioner of Social Security for the 
        reasonable cost of carrying out such arrangement, including the 
        reasonable costs associated with the collection and maintenance 
        of information regarding deceased individuals furnished to the 
        Commissioner pursuant to paragraph (1), and
            ``(ii) such arrangement does not conflict with the duties 
        of the Commissioner of Social Security under paragraph (1).
    ``(B) The Commissioner of Social Security shall, to the extent 
feasible, provide for the use of information regarding all deceased 
individuals furnished to or maintained by the Commissioner under this 
subsection, through a cooperative arrangement in order for a Federal 
agency to carry out any of the following purposes, if the requirements 
of clauses (i) and (ii) of subparagraph (A) are met:
            ``(i) Operating the Do Not Pay working system established 
        by section 5 of the Improper Payments Elimination and Recovery 
        Improvement Act of 2012. Under such arrangement, the agency 
        operating the working system may compare death information 
        disclosed by the Commissioner with personally identifiable 
        information reviewed through the working system, and may 
        redisclose such comparison of information, as appropriate, to 
        any Federal or State agency authorized to use the working 
        system.
            ``(ii) To ensure proper payments under a Federal program or 
        the proper payment of federally funded benefits, including for 
        purposes of payment certification, payment disbursement, and 
        the prevention, identification, or recoupment of improper 
        payments.
            ``(iii) To carry out tax administration or debt collection 
        duties of the agency.
            ``(iv) For use by any policing agency of the Federal 
        Government with the principle function of prevention, 
        detection, or investigation of crime or the apprehension of 
        alleged offenders.
    ``(4) The Commissioner of Social Security may enter into similar 
arrangements with States to provide information regarding all deceased 
individuals furnished to or maintained by the Commissioner under this 
subsection, for any of the purposes specified in paragraph (3)(B), for 
use by States in programs wholly funded by the States, or for use in 
the administration of a benefit pension plan or retirement system for 
employees of a State or a political subdivision thereof, if the 
requirements of clauses (i) and (ii) of paragraph (3)(A) are met. For 
purposes of this paragraph, the terms `retirement system' and 
`political subdivision' have the meanings given such terms in section 
218(b).
    ``(5) The Commissioner of Social Security may use or provide for 
the use of information regarding all deceased individuals furnished to 
or maintained by the Commissioner under this subsection, subject to 
such safeguards as the Commissioner of Social Security determines are 
necessary or appropriate to protect the information from unauthorized 
use or disclosure, for statistical purposes and research activities by 
Federal and State agencies if the requirements of clauses (i) and (ii) 
of paragraph (3)(A) are met. For purposes of this paragraph, the term 
`statistical purposes' has the meaning given that term in section 502 
of the Confidential Information Protection and Statistical Efficiency 
Act of 2002.''; and
                    (C) in paragraph (8)(A)(i), by striking 
                ``subparagraphs (A) and (B) of paragraph (3)'' and 
                inserting ``clauses (i) and (ii) of paragraph (3)(A)''.
            (2) Repeal.--Effective on the date that is 5 years after 
        the date of enactment of this Act, the amendments made by this 
        subsection to paragraphs (3), (4), (5), and (8) of section 
        205(r) of the Social Security Act (42 U.S.C. 405(r)) are 
        repealed, and the provisions of section 205(r) of the Social 
        Security Act (42 U.S.C. 605(r)) so amended are restored and 
        revived as if such amendments had not been enacted.
    (b) Amendment to Internal Revenue Code.--Section 6103(d)(4) of the 
Internal Revenue Code of 1986 is amended--
            (1) in subparagraphs (A) and (B), by striking ``Secretary 
        of Health and Human Services'' each place it appears and 
        inserting ``Commissioner of Social Security''; and
            (2) in subparagraph (B)(ii), by striking ``such Secretary'' 
        and all that follows through ``deceased individuals.'' and 
        inserting ``such Commissioner pursuant to such contract, except 
        that such contract may provide that such information is only to 
        be used by the Social Security Administration (or any other 
        Federal agency) for purposes authorized in the Social Security 
        Act or this title.''.
    (c) Report to Congress on Alternative Sources of Death Data.--
            (1) Requirements.--The Director of the Office of Management 
        and Budget shall conduct a review of potential alternative 
        sources of death data maintained by the non-Federal sources, 
        including sources maintained by State agencies or associations 
        of State agencies, for use by Federal agencies and programs. 
        The review shall include analyses of--
                    (A) the accuracy and completeness of such data;
                    (B) interoperability of such data;
                    (C) the extent to which there is efficient 
                accessability of such data by Federal agencies;
                    (D) the cost to Federal agencies of accessing and 
                maintaining such data;
                    (E) the security of such data;
                    (F) the reliability of such data; and
                    (G) a comparison of the potential alternate sources 
                of death data to the death data distributed by the 
                Commissioner of Social Security.
            (2) Report.--Not later than 4 years 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 results of 
        the review and analyses required under paragraph (1). The 
        report shall include a recommendation by the Director of the 
        Office of Management and Budget regarding whether to extend the 
        agency access to death data distributed by the Commissioner of 
        Social Security provided under the amendments made by 
        subsection (a)(1) beyond the date on which such amendments are 
        to be repealed under subsection (a)(2).

SEC. 3. IMPROVING THE 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 by adding at the end the 
following:

``SEC. 7. IMPROVING THE USE OF DEATH DATA BY GOVERNMENT AGENCIES.

    ``(a) Guidance by the Office of Management and Budget.--
            ``(1) Guidance to agencies.--Not later than 6 months after 
        the date of enactment of this section, and in consultation with 
        the Council of Inspectors General on Integrity and Efficiency 
        and the heads of other relevant Federal, State, and local 
        agencies, and Indian tribes and tribal organizations, the 
        Director of the Office of Management and Budget shall issue 
        guidance for each agency or component of an agency that 
        operates or maintains a database of information relating to 
        beneficiaries, annuity recipients, or any purpose described in 
        section 205(r)(3)(B) of the Social Security Act (42 U.S.C. 
        405(r)(3)(B)) for which improved data matching with databases 
        relating to the death of an individual (in this section 
        referred to as `death databases') would be relevant and 
        necessary regarding implementation of this section to provide 
        such agencies or components access to the death databases no 
        later than 6 months after such date of enactment.
            ``(2) Plan to assist states and local agencies and indian 
        tribes and tribal organizations.--Not later than 1 year after 
        the date of enactment of this section, the Director of the 
        Office of Management and Budget shall develop a plan to assist 
        States and local agencies, and Indian tribes and tribal 
        organizations, in providing electronically to the Federal 
        Government records relating to the death of individuals, which 
        may include recommendations to Congress for any statutory 
        changes or financial assistance to States and local agencies 
        and Indian tribes and tribal organizations that are necessary 
        to ensure States and local agencies and Indian tribes and 
        tribal organizations can provide such records electronically. 
        The plan may include recommendations for the authorization of 
        appropriations or other funding to carry out the plan.
    ``(b) Reports.--
            ``(1) Report to congress on improving data matching 
        regarding payments to deceased individuals.--Not later than 270 
        days after the date of enactment of this section, the Director 
        of the Office of Management and Budget, in consultation with 
        the heads of other relevant Federal agencies, and in 
        consultation with States and local agencies, Indian tribes and 
        tribal organizations, shall submit to Congress a plan to 
        improve how States and local agencies and Indian tribes and 
        tribal organizations that provide benefits under a federally 
        funded program will improve data matching with the Federal 
        Government with respect to the death of individuals who are 
        recipients of such benefits.
            ``(2) Annual report.--Not later than 1 year after the date 
        of enactment of this section, and for each of the 4 succeeding 
        years, the Director of the Office of Management and Budget 
        shall submit to Congress a report regarding the implementation 
        of this section. The first report submitted under this 
        paragraph shall include the recommendations of the Director 
        required under subsection (a)(2).
    ``(c) Definitions.--In this section, the terms `Indian tribe' and 
`tribal organization' have the meanings given those terms in section 4 
of the Indian Self-Determination and Education Assistance Act (25 
U.S.C. 450b).''.

SEC. 4. PLAN FOR ENSURING THE ACCURACY AND COMPLETENESS OF DEATH DATA 
              MAINTAINED AND DISTRIBUTED BY THE SOCIAL SECURITY 
              ADMINISTRATION.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Commissioner of Social Security, in consultation with 
the Secretary of Commerce, shall submit to Congress a plan, which shall 
include the elements described in subsection (b), to ensure the 
accuracy and completeness of the death data (including data regarding 
individuals who are not eligible for or receiving benefits under titles 
II or XVI of the Social Security Act) maintained and furnished by the 
Social Security Administration.
    (b) Content of Plan.--The plan required under subsection (a) shall 
include the following elements:
            (1) A procedure for identifying extremely elderly 
        individuals who are still alive according to the records of the 
        Social Security Administration and verifying the accuracy of 
        this information.
            (2) Improved policies and procedures for identifying and 
        correcting erroneous records, including policies and procedures 
        for--
                    (A) identifying individuals listed as dead who are 
                actually alive;
                    (B) identifying individuals listed as alive who are 
                actually dead; and
                    (C) allowing individuals or survivors of deceased 
                individuals to notify the Social Security 
                Administration of potential errors.
            (3) Improved policies and procedures to identify and 
        correct errors in the records of the Numerical Identification 
        System, and death data.
            (4) A process for employing statistical analysis of the 
        death data maintained and distributed by the Social Security 
        Administration to determine an estimate of the number of 
        erroneous records.
            (5) Recommendations for legislation.
    (c) Implementation of Plan.--Not later than 2 years after the date 
of enactment of this Act, the Commissioner of Social Security shall 
implement the plan required under subsection (a).