I 

113TH CONGRESS 

1ST SESSION H. R. 3644 

To rescind funds provided to certain Federal agencies if the improper payment 

rate for certain agency-administered programs has increased from the 

previous year, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 3, 2013 

Mr. KINGSTON introduced the following bill; which was referred to the Committee on Oversight and Government Reform, and in addition to the 

Committees on the Budget and Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To rescind funds provided to certain Federal agencies if 

the improper payment rate for certain agency-administered programs has increased from the previous year, 

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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Eliminate Preventable 

5 Waste Act’’. 


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1 SEC. 2. REPORTS ON IMPROPER PAYMENTS. 

2 (a) IN GENERAL.—Notwithstanding the require3 ments of section 2(a)(2) of the Improper Payments Infor4 mation Act of 2002 (31 U.S.C. 3321 note), not later than 

5 90 days after the end of fiscal year 2014 and each fiscal 

6 year thereafter, the following agency heads shall perform 

7 the review required under section 2(a)(1) of such Act for 

8 the following programs, respectively: 

9 (1) Commissioner of the Social Security Admin10 istration— 

11 (A) the Supplemental Security Income pro12 gram under title XVI of the Social Security Act 

13 (42 U.S.C. 1381 et seq.); and 

14 (B) the Old Age, Survivors, and Disability 

15 Insurance program under title XVI of the So16 cial Security Act (42 U.S.C. 1381 et seq.). 

17 (2) Secretary of Agriculture— 

18 (A) the school lunch program under the 

19 Richard B. Russell National School Lunch Act 

20 (42 U.S.C. 1751 et seq.); and 

21 (B) the school breakfast program under 

22 section 4 of the Child Nutrition Act of 1966 

23 (42 U.S.C. 1773). 

24 (3) Secretary of Labor; State unemployment 

25 compensation programs approved by the Secretary 


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1 of Labor under section 3304 of the Internal Revenue 

2 Code of 1986. 

3 (4) Secretary of Health and Human Services— 

4 (A) Medicare fee-for-service (parts A and 

5 B of title XVIII of the Social Security Act (42 

6 U.S.C. 1381 et seq.)); 

7 (B) Medicaid (title XIX of such Act), 

8 Medicare Advantage (part C of title XVIII of 

9 such Act); 

10 (C) Medicare prescription drug benefit 

11 (part D of title XVIII of such Act); and 

12 (D) the Child Care and Development Fund 

13 (section 5082 of subchapter C of Public Law 

14 101–508). 

15 (5) Secretary of the Treasury; the Earned In16 come Tax Credit (section 32 of the Internal Revenue 

17 Code of 1986). 

18 (6) Secretary of Veterans Affairs— 

19 (A) payments under section 607 of the 

20 Transportation, Treasury, and Independent 

21 Agencies Appropriations Act, 2004 (division F 

22 of Public Law 108–199); and 

23 (B) payments to non-Department facilities 

24 (as defined in section 1701(4) of title 38, 

25 United States Code) under the following: 


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1 (i) section 1703 of such title (relating 

2 to hospital care and medical services pro3 vided to veterans in non-Department facili4 ties); 

5 (ii) section 1725 of such title (relating 

6 to reimbursement to veterans for certain 

7 emergency treatment in non-Department 

8 facilities); 

9 (iii) section 1728 of such title (relat10 ing to reimbursement to veterans for cer11 tain treatment in non-Department facili12 ties); 

13 (iv) section 8111 of such title (relat14 ing to the sharing of Department of Vet15 erans Affairs and Department of Defense 

16 health-care resources); and 

17 (v) section 8153 of such title (relating 

18 to the sharing of health-care resources). 

19 (b) BUDGET SUBMISSION.—Each agency head shall 

20 include in the applicable agency annual budget request to 

21 the Office of Management and Budget a report on the re22 view required under subsection (a). 

23 (c) SUNSET.—If a review under subsection (a) shows 

24 that the improper payment rate for any listed program 


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1 is less than or equal to 0.00034 percent, this section shall 

2 no longer apply with respect to such program. 

3 SEC. 3. AMENDMENT WITH RESPECT TO PRESIDENT’S 

4 BUDGET SUBMISSION. 

5 (a) IN GENERAL.—Section 1105(a) of title 31, 

6 United States Code, is amended by— 

7 (1) redesignating paragraph (37) (relating to 

8 the list of outdated or duplicative plans and reports) 

9 as paragraph (39); and 

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

11 ‘‘(40) any report submitted to the Office of 

12 Management and Budget pursuant to section 2 of 

13 the Eliminate Preventable Waste Act.’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 this section shall take effect on October 1, 2014. 

16 SEC. 4. RESCISSION OF FUNDS. 

17 (a) REDUCTION IN ERROR RATES.—If any report 

18 submitted by an agency head required under section 2, 

19 as included in President’s budget under section 1105(a) 

20 of title 31, United States Code (as amended by section 

21 2 of this Act), does not show, with respect to the relevant 

22 program listed in section 2(a), a decrease in the improper 

23 payment rate from the fiscal year immediately preceding 

24 the fiscal year covered by the report, a rescission under 


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1 subsection (b) of certain funds made available to the appli2 cable agency shall apply. 

3 (b) RESCISSION.— 

4 (1) IN GENERAL.—On the day that the Presi5 dent submits such a budget, there is rescinded (if 

6 necessary) from the following accounts a percentage 

7 of such account equal to the percentage of the high8 est improper payment rate of the program listed in 

9 the report submitted by the relevant agency pursu10 ant to section 2 and included in such agency’s budg11 et: 

12 (A) Department of Agriculture, ‘‘Agricul13 tural Programs—Production, Process, and 

14 Marketing—Office of the Secretary’’. 

15 (B) Department of Health and Human 

16 Services, ‘‘Department of Health and Human 

17 Services—Office of the Secretary’’. 

18 (C) Department of Labor, ‘‘Department of 

19 Labor—Departmental Management—Salaries 

20 and Expenses’’. 

21 (D) Department of the Treasury, ‘‘Depart22 ment of the Treasury—Departmental Offices— 

23 Salaries and Expenses’’. 


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1 (E) Social Security Administration, ‘‘Social 

2 Security Administration—Limitation on Admin3 istrative Expenses’’. 

4 (F) Department of Veterans Affairs, ‘‘De5 partment of Veterans Affairs—Departmental 

6 Administration—General Administration’’. 

7 (2) PROPORTIONATE APPLICATION.—Any re8 scission made under paragraph (1) shall be applied 

9 proportionately within each listed account to each 

10 program, project, and activity (with programs, 

11 projects, and activities as delineated in the appro12 priation Act or accompanying reports for the appli13 cable fiscal year covering such account). 

14 (c) REPORT TO CONGRESS.—For each fiscal year be15 ginning in fiscal year 2015, not later than the date on 

16 which President submits a budget under section 1105(a) 

17 of title 31, United States Code, each agency head listed 

18 in section 2(a) shall submit to Congress any report re19 quired by section 2 of this Act. 

20 (d) EFFECTIVE DATE.—This section shall take effect 

21 on October 1, 2014. 

Æ 


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