113TH CONGRESS 

2D SESSION S. 1360 

AN ACT 

To amend the Improper Payments Elimination and Recovery 

Improvement Act of 2012, including making changes 

to the Do Not Pay initiative, for improved detection, 

prevention, and recovery of improper payments to deceased individuals, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Improper Payments 

3 Agency Cooperation Enhancement Act of 2014’’. 

4 SEC. 2. DISTRIBUTION OF DEATH INFORMATION FUR5 NISHED TO OR MAINTAINED BY THE SOCIAL 

6 SECURITY ADMINISTRATION. 

7 (a) IN GENERAL.— 

8 (1) IN GENERAL.—Section 205(r) of the Social 

9 Security Act (42 U.S.C. 405(r)) is amended— 

10 (A) in paragraph (2)— 

11 (i) by striking ‘‘may’’ and inserting 

12 ‘‘shall’’; and 

13 (ii) by inserting ‘‘, and to ensure the 

14 completeness, timeliness, and accuracy of,’’ 

15 after ‘‘transmitting’’; 

16 (B) by striking paragraphs (3), (4), and 

17 (5) and inserting the following: 

18 ‘‘(3)(A) The Commissioner of Social Security shall, 

19 to the extent feasible, provide for the use of information 

20 regarding all deceased individuals furnished to or main21 tained by the Commissioner under this subsection in ac22 cordance with subparagraph (B), subject to such safe23 guards as the Commissioner of Social Security determines 

24 are necessary or appropriate to protect the information 

25 from unauthorized use or disclosure, by any Federal or 

26 State agency providing federally-funded benefits or admin-
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1 istering a Federal program for such benefits, including the 

2 agency operating the Do Not Pay working system for en3 suring proper payment of those benefits, through a cooper4 ative arrangement with the agency (that includes the 

5 agency’s Inspector General) or with an agency’s Inspector 

6 General, if— 

7 ‘‘(i) under such arrangement the agency (in8 cluding, if applicable, the agency’s Inspector Gen9 eral) provides reimbursement to the Commissioner of 

10 Social Security for the reasonable cost of carrying 

11 out such arrangement, including the reasonable 

12 costs associated with the collection and maintenance 

13 of information regarding deceased individuals fur14 nished to the Commissioner pursuant to paragraph 

15 (1), and 

16 ‘‘(ii) such arrangement does not conflict with 

17 the duties of the Commissioner of Social Security 

18 under paragraph (1). 

19 ‘‘(B) The Commissioner of Social Security shall, to 

20 the extent feasible, provide for the use of information re21 garding all deceased individuals furnished to or main22 tained by the Commissioner under this subsection, 

23 through a cooperative arrangement in order for a Federal 

24 agency to carry out any of the following purposes, if the 
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1 requirements of clauses (i) and (ii) of subparagraph (A) 

2 are met: 

3 ‘‘(i) Operating the Do Not Pay working system 

4 established by section 5 of the Improper Payments 

5 Elimination and Recovery Improvement Act of 2012. 

6 Under such arrangement, the agency operating the 

7 working system may compare death information dis8 closed by the Commissioner with personally identifi9 able information reviewed through the working sys10 tem, and may redisclose such comparison of infor11 mation, as appropriate, to any Federal or State 

12 agency authorized to use the working system. 

13 ‘‘(ii) To ensure proper payments under a Fed14 eral program or the proper payment of federally15 funded benefits, including for purposes of payment 

16 certification, payment disbursement, and the preven17 tion, identification, or recoupment of improper pay18 ments. 

19 ‘‘(iii) To carry out tax administration or debt 

20 collection duties of the agency. 

21 ‘‘(iv) For use by any policing agency of the 

22 Federal Government with the principle function of 

23 prevention, detection, or investigation of crime or 

24 the apprehension of alleged offenders. 
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1 ‘‘(4) The Commissioner of Social Security may enter 

2 into similar arrangements with States to provide informa3 tion regarding all deceased individuals furnished to or 

4 maintained by the Commissioner under this subsection, 

5 for any of the purposes specified in paragraph (3)(B), for 

6 use by States in programs wholly funded by the States, 

7 or for use in the administration of a benefit pension plan 

8 or retirement system for employees of a State or a political 

9 subdivision thereof, if the requirements of clauses (i) and 

10 (ii) of paragraph (3)(A) are met. For purposes of this 

11 paragraph, the terms ‘retirement system’ and ‘political 

12 subdivision’ have the meanings given such terms in section 

13 218(b). 

14 ‘‘(5) The Commissioner of Social Security may use 

15 or provide for the use of information regarding all de16 ceased individuals furnished to or maintained by the Com17 missioner under this subsection, subject to such safe18 guards as the Commissioner of Social Security determines 

19 are necessary or appropriate to protect the information 

20 from unauthorized use or disclosure, for statistical pur21 poses and research activities by Federal and State agen22 cies if the requirements of clauses (i) and (ii) of paragraph 

23 (3)(A) are met. For purposes of this paragraph, the term 

24 ‘statistical purposes’ has the meaning given that term in 
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1 section 502 of the Confidential Information Protection 

2 and Statistical Efficiency Act of 2002.’’; and 

3 (C) in paragraph (8)(A)(i), by striking 

4 ‘‘subparagraphs (A) and (B) of paragraph (3)’’ 

5 and inserting ‘‘clauses (i) and (ii) of paragraph 

6 (3)(A)’’. 

7 (2) REPEAL.—Effective on the date that is 5 

8 years after the date of enactment of this Act, the 

9 amendments made by this subsection to paragraphs 

10 (3), (4), (5), and (8) of section 205(r) of the Social 

11 Security Act (42 U.S.C. 405(r)) are repealed, and 

12 the provisions of section 205(r) of the Social Secu13 rity Act (42 U.S.C. 605(r)) so amended are restored 

14 and revived as if such amendments had not been en15 acted. 

16 (b) AMENDMENT TO INTERNAL REVENUE CODE.— 

17 Section 6103(d)(4) of the Internal Revenue Code of 1986 

18 is amended— 

19 (1) in subparagraphs (A) and (B), by striking 

20 ‘‘Secretary of Health and Human Services’’ each 

21 place it appears and inserting ‘‘Commissioner of So22 cial Security’’; and 

23 (2) in subparagraph (B)(ii), by striking ‘‘such 

24 Secretary’’ and all that follows through ‘‘deceased 

25 individuals.’’ and inserting ‘‘such Commissioner pur-
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1 suant to such contract, except that such contract 

2 may provide that such information is only to be used 

3 by the Social Security Administration (or any other 

4 Federal agency) for purposes authorized in the So5 cial Security Act or this title.’’. 

6 (c) REPORT TO CONGRESS ON ALTERNATIVE

7 SOURCES OF DEATH DATA.— 

8 (1) REQUIREMENTS.—The Director of the Of9 fice of Management and Budget shall conduct a re10 view of potential alternative sources of death data 

11 maintained by the non-Federal sources, including 

12 sources maintained by State agencies or associations 

13 of State agencies, for use by Federal agencies and 

14 programs. The review shall include analyses of— 

15 (A) the accuracy and completeness of such 

16 data; 

17 (B) interoperability of such data; 

18 (C) the extent to which there is efficient 

19 accessability of such data by Federal agencies; 

20 (D) the cost to Federal agencies of access21 ing and maintaining such data; 

22 (E) the security of such data; 

23 (F) the reliability of such data; and 
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1 (G) a comparison of the potential alternate 

2 sources of death data to the death data distrib3 uted by the Commissioner of Social Security. 

4 (2) REPORT.—Not later than 4 years after the 

5 date of enactment of this Act, the Director of the 

6 Office of Management and Budget shall submit a re7 port to Congress on the results of the review and 

8 analyses required under paragraph (1). The report 

9 shall include a recommendation by the Director of 

10 the Office of Management and Budget regarding 

11 whether to extend the agency access to death data 

12 distributed by the Commissioner of Social Security 

13 provided under the amendments made by subsection 

14 (a)(1) beyond the date on which such amendments 

15 are to be repealed under subsection (a)(2). 

16 SEC. 3. IMPROVING THE SHARING AND USE OF DATA BY 

17 GOVERNMENT AGENCIES TO CURB IM18 PROPER PAYMENTS. 

19 The Improper Payments Elimination and Recovery 

20 Improvement Act of 2012 (31 U.S.C. 3321 note) is 

21 amended— 

22 (1) in section 5— 

23 (A) in subsection (a)(2), by striking sub24 paragraph (A) and inserting the following: 
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1 ‘‘(A) The death records maintained by the 

2 Commissioner of the Social Security Adminis3 tration.’’; and 

4 (B) in subsection (b)— 

5 (i) by redesignating paragraph (5) as 

6 paragraph (6); and 

7 (ii) by inserting after paragraph (4) 

8 the following: 

9 ‘‘(5) USE OF DEATH AND PRISONER INFORMA10 TION.—The Commissioner of Social Security, and 

11 the head of any other agency that obtains informa12 tion on deaths or incarcerated individuals directly 

13 from the Commissioner of Social Security pursuant 

14 to an agreement under section 205(r) or sections 

15 202(x) and 1611(e) of the Social Security Act (42 

16 U.S.C. 405(r), 405(x), 1382(e)) or the Department 

17 of the Treasury’s Do Not Pay program, shall be con18 sidered to have satisfied the requirements of this 

19 section as such requirements relate to payments or 

20 to identifying, preventing, or recovering improper 

21 payments in the case of deaths or incarcerated indi22 viduals. Nothing in the preceding sentence shall be 

23 construed as exempting the Commissioner of Social 

24 Security or the head of any other agency that ob25 tains information on deaths or incarcerated individ-
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1 uals directly from the Commissioner of Social Secu2 rity under an agreement under section 205(r) or sec3 tions 202(x) and 1611(e) of the Social Security Act 

4 (42 U.S.C. 405(r), 405(x), 1382(e)) or the Depart5 ment of the Treasury’s Do Not Pay program from 

6 being subject to any improper payment reporting re7 quirement of the Director of the Office of Manage8 ment.’’; and 

9 (2) by adding at the end the following: 

10 ‘‘SEC. 7. IMPROVING THE USE OF DEATH DATA BY GOVERN11 MENT AGENCIES. 

12 ‘‘(a) PROMPT REPORTING OF DEATH INFORMATION

13 BY THE DEPARTMENT OF STATE AND THE DEPARTMENT

14 OF DEFENSE.—Not later than 1 year after the date of 

15 enactment of this section, the Secretary of State and the 

16 Secretary of Defense, in coordination with the Commis17 sioner of Social Security, shall establish a procedure under 

18 which each Secretary shall, promptly and on a regular 

19 basis, submit to the Commissioner information relating to 

20 the deaths of individuals. The Commissioner shall, to the 

21 extent feasible, provide for the use of death information 

22 submitted under this subsection for the purpose specified 

23 in clause (i) of section 205(r)(3)(B) of the Social Security 

24 Act (42 U.S.C. 405(r)(3)(B)). 
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1 ‘‘(b) GUIDANCE BY THE OFFICE OF MANAGEMENT

2 AND BUDGET.— 

3 ‘‘(1) GUIDANCE TO AGENCIES.—Not later than 

4 6 months after the date of enactment of this section, 

5 and in consultation with the Council of Inspectors 

6 General on Integrity and Efficiency and the heads of 

7 other relevant Federal, State, and local agencies, 

8 and Indian tribes and tribal organizations, the Di9 rector of the Office of Management and Budget 

10 shall issue guidance for each agency or component 

11 of an agency that operates or maintains a database 

12 of information relating to beneficiaries, annuity re13 cipients, or any purpose described in section 

14 205(r)(3)(B) of the Social Security Act (42 U.S.C. 

15 405(r)(3)(B)) for which improved data matching 

16 with databases relating to the death of an individual 

17 (in this section referred to as ‘death databases’) 

18 would be relevant and necessary regarding imple19 mentation of this section to provide such agencies or 

20 components access to the death databases no later 

21 than 6 months after such date of enactment. 

22 ‘‘(2) PLAN TO ASSIST STATES AND LOCAL

23 AGENCIES AND INDIAN TRIBES AND TRIBAL ORGANI24 ZATIONS.—Not later than 1 year after the date of 

25 enactment of this section, the Director of the Office 
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1 of Management and Budget shall develop a plan to 

2 assist States and local agencies, and Indian tribes 

3 and tribal organizations, in providing electronically 

4 to the Federal Government records relating to the 

5 death of individuals, which may include rec6 ommendations to Congress for any statutory 

7 changes or financial assistance to States and local 

8 agencies and Indian tribes and tribal organizations 

9 that are necessary to ensure States and local agen10 cies and Indian tribes and tribal organizations can 

11 provide such records electronically. The plan may in12 clude recommendations for the authorization of ap13 propriations or other funding to carry out the plan. 

14 ‘‘(c) REPORTS.— 

15 ‘‘(1) REPORT TO CONGRESS ON IMPROVING

16 DATA MATCHING REGARDING PAYMENTS TO DE17 CEASED INDIVIDUALS.—Not later than 270 days 

18 after the date of enactment of this section, the Di19 rector of the Office of Management and Budget, in 

20 consultation with the heads of other relevant Federal 

21 agencies, and in consultation with States and local 

22 agencies, Indian tribes and tribal organizations, shall 

23 submit to Congress a plan to improve how States 

24 and local agencies and Indian tribes and tribal orga25 nizations that provide benefits under a federally- 
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1 funded program will improve data matching with the 

2 Federal Government with respect to the death of in3 dividuals who are recipients of such benefits. 

4 ‘‘(2) ANNUAL REPORT.—Not later than 1 year 

5 after the date of enactment of this section, and for 

6 each of the 4 succeeding years, the Director of the 

7 Office of Management and Budget shall submit to 

8 Congress a report regarding the implementation of 

9 this section. The first report submitted under this 

10 paragraph shall include the recommendations of the 

11 Director required under subsection (b)(2). 

12 ‘‘(d) DEFINITIONS.—In this section, the terms ‘In13 dian tribe’ and ‘tribal organization’ have the meanings 

14 given those terms in section 4 of the Indian Self-Deter15 mination and Education Assistance Act (25 U.S.C. 

16 450b).’’. 

17 SEC. 4. AVAILABILITY OF THE DO NOT PAY INITIATIVE TO 

18 THE JUDICIAL AND LEGISLATIVE BRANCHES 

19 AND STATES. 

20 Section 5 of the Improper Payments Elimination and 

21 Recovery Improvement Act of 2012 (31 U.S.C. 3321 

22 note), as amended by section 3, is further amended— 

23 (1) in subsection (b)(3)— 

24 (A) in the paragraph heading, by striking 

25 ‘‘BY AGENCIES’’; and 
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1 (B) by adding at the end the following: 

2 ‘‘States and any contractor, subcontractor, or 

3 agent of a State, and the judicial and legislative 

4 branches of the United States (as defined in 

5 paragraphs (2) and (3), respectively, of section 

6 202(e) of title 18, United States Code), shall 

7 have access to, and use of, the Do Not Pay Ini8 tiative to verify payment or award eligibility for 

9 payments (as defined in section (2)(g)(3) of the 

10 Improper Payments Information Act of 2002, 

11 31 U.S.C. 3321 note) when, with respect to a 

12 State, the Director of the Office of Manage13 ment and Budget determines that the Do Not 

14 Pay Initiative is appropriately established for 

15 that State and any contractor, subcontractor, or 

16 agent of the State, and, with respect to the ju17 dicial and legislative branches of the United 

18 States, when the Director of the Office of Man19 agement and Budget determines that the Do 

20 Not Pay Initiative is appropriately established 

21 for the judicial branch or the legislative branch, 

22 as applicable.’’; and 

23 (2) in subsection (d)(2)— 

24 (A) in subparagraph (B), by striking 

25 ‘‘and’’ after the semicolon; 
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1 (B) in subparagraph (C), by striking the 

2 period at the end and inserting ‘‘; and’’; and 

3 (C) by inserting after subparagraph (C) 

4 the following: 

5 ‘‘(D) may include States and their quasi6 government entities, and the judicial and legis7 lative branches of the United States (as defined 

8 in paragraphs (2) and (3), respectively, of sec9 tion 202(e) of title 18, United States Code) as 

10 users of the system in accordance with sub11 section (b)(3).’’. 

12 SEC. 5. DATA ANALYTICS. 

13 Section 5 of the Improper Payments Elimination and 

14 Recovery Improvement Act of 2012 (31 U.S.C. 3321 

15 note), as amended by sections 3 and 4, is further amended 

16 by adding at the end the following: 

17 ‘‘(h) REPORT ON IMPROPER PAYMENTS DATA ANAL18 YSIS.—Not later than 180 days after the date of enact19 ment of the Improper Payments Agency Cooperation En20 hancement Act of 2014, the Secretary of the Treasury 

21 shall submit to Congress a report which shall include a 

22 description of— 

23 ‘‘(1) data analytics performed as part of the Do 

24 Not Pay Initiative for the purpose of detecting, pre25 venting, and recovering improper payments through 
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1 pre-award, post-award pre-payment, and post-pay2 ment analysis, which shall include a description of 

3 any analysis or investigations incorporating— 

4 ‘‘(A) review and data matching of pay5 ments and beneficiary enrollment lists of State 

6 programs carried out using Federal funds for 

7 the purposes of identifying eligibility duplica8 tion, residency ineligibility, duplicate payments, 

9 or other potential improper payment issues; 

10 ‘‘(B) review of multiple Federal agencies 

11 and programs for which comparison of data 

12 could show payment duplication; and 

13 ‘‘(C) review of other information the Sec14 retary of the Treasury determines could prove 

15 effective for identifying, preventing, or recov16 ering improper payments, which may include in17 vestigation or review of information from mul18 tiple Federal agencies or programs; and 

19 ‘‘(2) the metrics used in determining whether 

20 the analytic and investigatory efforts have reduced, 
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1 or contributed to the reduction of, improper pay2 ments or improper awards.’’. 

Passed the Senate September 18, 2014. 

Attest: 

Secretary. 
113TH CONGRESS 

2D SESSION S. 1360 

AN ACT 

To amend the Improper Payments Elimination and 

for other purposes. improper payments to deceased individuals, and improved detection, prevention, and recovery of making changes to the Do Not Pay initiative, for Recovery Improvement Act of 2012, including