I 

111TH CONGRESS 

2D SESSION H. R. 5363 

To make funds available to increase program integrity efforts and reduce 

wasteful government spending of taxpayer’s dollars. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 20, 2010 

Mr. SCHRADER (for himself, Mr. ARCURI, Mr. BOREN, Mr. BOYD, Mr. 

CARDOZA, Mr. CHANDLER, Mr. CHILDERS, Mr. COOPER, Mr. COSTA, Mr. 

CUELLAR, Mr. DAVIS of Tennessee, Mr. ELLSWORTH, Ms. GIFFORDS, 

Ms. HARMAN, Ms. HERSETH SANDLIN, Mr. HILL, Mr. HOLDEN, Mr. 

KAGEN, Mr. KRATOVIL, Ms. MARKEY of Colorado, Mr. MATHESON, Mr. 

MCINTYRE, Mr. MELANCON, Mr. MICHAUD, Mr. MINNICK, Mr. MOORE

of Kansas, Mr. MURPHY of New York, Mr. NYE, Mr. ROSS, Ms. LORETTA SANCHEZ of California, Mr. SCHIFF, Mr. SHULER, Mr. TANNER, and 

Mr. WILSON of Ohio) introduced the following bill; which was referred 

to the Committee on Ways and Means, and in addition to the Committees 

on Energy and Commerce and Education and Labor, 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 make funds available to increase program integrity efforts 

and reduce wasteful government spending of taxpayer’s 

dollars. 

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 ‘‘Preventing Waste, 

3 Fraud, and Abuse Act of 2010’’. 

4 SEC. 2. FINDINGS. 

5 The Congress finds the following: 

6 (1) To protect the taxpayer and the Treasury, 

7 it is the responsibility of the Congress to provide 

8 Federal agencies with the financial resources nec9 essary to enforce the laws of the United States and 

10 to prevent waste, fraud, and abuse of taxpayer’s dol11 lars. 

12 (2) For every $1 invested in the Department of 

13 Health and Human Services and the Department of 

14 Justice for program integrity efforts to prevent 

15 waste, fraud, and abuse of Medicare, Medicaid, and 

16 the Children’s Health Insurance Program, approxi17 mately $1.55 will be saved, according to a report 

18 issued by the Office of Management and Budget. 

19 (3) Increased program integrity efforts by the 

20 Department of Health and Human Services and the 

21 Department of Justice can provide an estimated sav22 ings of $4,470,000,000 on an investment of 

23 $3,100,000,000 in Medicare, Medicaid, and the Chil24 dren’s Health Insurance Program over the next 5 

25 fiscal years and an estimated savings of 

26 $9,870,000,000 on an investment of $6,753,000,000 


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1 over the next 10 fiscal years, according to a report 

2 issued by the Office of Management and Budget. 

3 (4) For every $1 invested in the Social Security 

4 Administration for program integrity efforts to in5 crease the volume of continuing disability reviews 

6 conducted pursuant to section 221(i) of the Social 

7 Security Act (42 U.S.C. 421(i)) to determine wheth8 er a recipient of disability insurance benefits under 

9 section 223(a) of such Act (42 U.S.C. 423(a)) will 

10 continue to be eligible for such benefits, approxi11 mately $10 will be saved, according to a report 

12 issued by the Office of Management and Budget. 

13 (5) For every $1 invested in the Social Security 

14 Administration for program integrity efforts to in15 crease the volume of continuing disability reviews 

16 conducted pursuant to section 1631(j) of Social Se17 curity Act (42 U.S.C. 1383(j)) to determine whether 

18 a recipient of supplemental security income benefits 

19 under section 1611 of such Act (42 U.S.C. 1382) 

20 will continue to be eligible for such benefits, approxi21 mately $8 will be saved, according to a report issued 

22 by the Office of Management and Budget. 

23 (6) Providing additional funding to the Social 

24 Security Administration to increase the volume of 

25 continuing disability reviews conducted pursuant to 


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1 sections 221(i) and 1631(j) of Social Security Act 

2 (42 U.S.C. 421(i), 1383(j), respectively) can provide 

3 an estimated savings of $16,102,000,000 on an in4 vestment of $3,953,000,000 over the next 5 fiscal 

5 years and an estimated savings of $57,838,000,000 

6 on an investment of $10,252,000,000 over the next 

7 10 fiscal years, according to a report issued by the 

8 Office of Management and Budget. 

9 (7) The tax gap, the difference between the an10 nual amount of Federal income taxes owed and the 

11 amount voluntarily paid on time, places an undue 

12 burden upon the overwhelming majority of taxpayers 

13 who fully and voluntarily pay their taxes on time. 

14 (8) In a report released in 2009 by the Internal 

15 Revenue Service, it was estimated that in 2005 (the 

16 most recent estimate available) the gross tax gap 

17 was $345,000,000,000 and the net tax gap (after 

18 the collection of late and enforced payments) was 

19 $290,000,000,000. 

20 (9) In 2009, for every $1 that was invested for 

21 the purposes of enforcing the tax code, the Internal 

22 Revenue Service returned an average of $4 to the 

23 Treasury, with some enforcement activities returning 

24 as much as $11 for every $1 invested, according to 


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1 a report issued by the Office of Management and 

2 Budget. 

3 (10) By increasing overall tax enforcement ef4 forts, the Internal Revenue Service can provide an 

5 estimated savings of $13,874,000,000 on an invest6 ment of $8,869,000,000 over the next 5 fiscal years 

7 and an estimated savings of $62,217,000,000 on an 

8 investment of $23,275,000,000 over the next 10 fis9 cal years, according to a report issued by the Office 

10 of Management and Budget. 

11 (11) For each $1 invested to increase the vol12 ume of in-person reemployment and eligibility as13 sessments conducted by States for the Department 

14 of Labor’s unemployment insurance program, ap15 proximately $3.19 will be saved over the next 10 

16 years, according to a report issued by the Office of 

17 Management and Budget. 

18 (12) States will save the Department of Labor’s 

19 unemployment insurance program an estimated 

20 $937,000,000 on an investment of $325,000,000 by 

21 increasing the volume of in-person reemployment 

22 and eligibility assessments over the next 5 fiscal 

23 years and an estimated savings of $2,296,000,000 

24 on an investment of $720,000,000 over the next 10 


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1 fiscal years, according to a report issued by the Of2 fice of Management and Budget. 

3 (13) The investments described in the preceding 

4 paragraphs, if carried out, will save the taxpayers 

5 nearly $2,000,000,000 during fiscal year 2011, while 

6 laying the foundations for saving more than 

7 $35,000,000,000 over the next 5 fiscal years and 

8 more than $132,000,000,000 over the next 10 fiscal 

9 years. 

10 SEC. 3. DEFINITIONS. 

11 In this Act: 

12 (1) AGENCY HEAD.—The term ‘‘agency head’’ 

13 means— 

14 (A) the Attorney General; 

15 (B) the Commissioner of Social Security; 

16 (C) the Secretary of Health and Human 

17 Services; 

18 (D) the Secretary of Labor; and 

19 (E) the Secretary of the Treasury. 

20 (2) DIRECTOR.—The term ‘‘Director’’ means 

21 the Director of the Office of Management and Budg22 et. 

23 SEC. 4. INCREASING PROGRAM INTEGRITY EFFORTS. 

24 (a) PROGRAM INTEGRITY EFFORTS.— 


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1 (1) IN GENERAL.—Each agency head, in con2 sultation with the Director, shall— 

3 (A) identify existing Federal laws and reg4 ulations that may impede the ability to decrease 

5 waste, fraud, and abuse of funds appropriated 

6 to the agency head’s agency; and 

7 (B) develop appropriate performance 

8 metrics to measure such agency’s success in de9 creasing waste, fraud, and abuse. 

10 (2) DEVELOPMENT OF METRICS.—In devel11 oping performance metrics referred to in paragraph 

12 (1)(B), each agency head shall— 

13 (A) ensure that such metrics accurately 

14 demonstrate the effectiveness of the programs 

15 and activities referred to in subsection (d) in 

16 decreasing waste, fraud, and abuse; 

17 (B) provide estimates for points of dimin18 ishing returns on the funds provided under this 

19 Act to increase program integrity efforts; 

20 (C) identify optimal baselines for each of 

21 the metrics developed under this subsection and 

22 appropriate methods to measure variations from 

23 such baselines; and 

24 (D) set performance targets for each of fis25 cal years 2012 through 2020. 


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1 (b) INNOVATION AND DEVELOPMENT.—Each agency 

2 head shall make appropriate accommodations for innova3 tion and development to address the program integrity ef4 forts for programs and activities referred to in subsection 

5 (d). 

6 (c) REPORTS.— 

7 (1) IN GENERAL.—Each agency head shall sub8 mit to Congress— 

9 (A) not later than 6 months after the date 

10 of enactment of this Act, an interim report that 

11 includes a description of— 

12 (i) what the performance metrics de13 veloped under subsection (a) will be meas14 uring; and 

15 (ii) how such metrics will measure and 

16 provide an accurate analysis of the per17 formance of the applicable programs and 

18 activities referred to in subsection (d); and 

19 (B) not later than 1 year after the date of 

20 enactment of this Act, a final report that sets 

21 forth the performance metrics developed under 

22 subsection (a). 

23 (2) FEDERAL REGISTER; WEB SITE.—Each 

24 agency head shall publish in the Federal Register 

25 and make available on the agency Web site the perVerDate Mar 15 2010 23:11 May 21, 2010 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5363.IH H5363

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1 formance metrics set forth in its final report sub2 mitted under paragraph (1)(B) not later than 30 

3 days after such report is submitted. 

4 (3) MODIFICATION OF PERFORMANCE

5 METRICS.—Not later than 30 days after the date on 

6 which any performance metrics developed under sub7 section (a) are modified by an agency head, such 

8 agency head shall submit to Congress a written no9 tice describing such modifications. 

10 (4) OMB ANNUAL REPORT.—Using the per11 formance metrics developed under subsection (a), 

12 each year, beginning with the first fiscal year fol13 lowing the date on which the final reports are re14 quired to be submitted under paragraph (1)(B), on 

15 or after the first Monday in January but not later 

16 than the first Monday in February, the Director 

17 shall submit to Congress an annual report meas18 uring the success of the agency head’s agency in de19 creasing waste, fraud, and abuse of funds appro20 priated to such agency. Each annual report shall in21 clude a summary of and justifications for any modi22 fied performance metrics submitted to Congress pur23 suant to paragraph (3). 

24 (5) REFERRAL OF REPORTS.—Each report sub25 mitted pursuant to this subsection shall be referred 


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1 to the Committee on Appropriations and the Com2 mittee on the Budget of the House of Representa3 tives and the Committee on Appropriations and the 

4 Committee on the Budget of the Senate, and any 

5 other appropriate committee of jurisdiction. 

6 (d) AUTHORIZATION OF APPROPRIATIONS.— 

7 (1) DEPARTMENT OF HEALTH AND HUMAN

8 SERVICES; DEPARTMENT OF JUSTICE.—For the pur9 poses of continuing and increasing program integrity 

10 efforts of the Department of Health and Human 

11 Services and the Department of Justice to prevent 

12 waste, fraud, and abuse of Medicare, Medicaid, and 

13 the Children’s Health Insurance Program, there are 

14 authorized to be appropriated the following sums: 

15 (A) $561,000,000 for fiscal year 2011, to 

16 remain available through September 30, 2012. 

17 (B) $589,000,000 for fiscal year 2012, to 

18 remain available through September 30, 2013. 

19 (C) $619,000,000 for fiscal year 2013, to 

20 remain available through September 30, 2014. 

21 (D) $649,000,000 for fiscal year 2014, to 

22 remain available through September 30, 2015. 

23 (E) $682,000,000 for fiscal year 2015, to 

24 remain available through September 30, 2016. 


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1 (F) $3,653,000,000 for the period encom2 passing fiscal years 2016 through 2020. 

3 (2) SOCIAL SECURITY ADMINISTRATION.—For 

4 the purposes of continuing and increasing program 

5 integrity efforts of the Social Security Administra6 tion by increasing the volume of continuing disability 

7 reviews conducted pursuant to sections 221(i) and 

8 1631(j) of the Social Security Act (42 U.S.C. 421(i), 

9 1383(j), respectively), there are authorized to be ap10 propriated to the Commissioner of Social Security 

11 the following sums: 

12 (A) $513,000,000 for fiscal year 2011, to 

13 remain available through September 30, 2012. 

14 (B) $642,000,000 for fiscal year 2012, to 

15 remain available through September 30, 2013. 

16 (C) $751,000,000 for fiscal year 2013, to 

17 remain available through September 30, 2014. 

18 (D) $924,000,000 for fiscal year 2014, to 

19 remain available through September 30, 2015. 

20 (E) $1,123,000,000 for fiscal year 2015, 

21 to remain available through September 30, 

22 2016. 

23 (F) $6,299,000,000 for the period encom24 passing fiscal years 2016 through 2020. 


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1 (3) DEPARTMENT OF THE TREASURY.—For 

2 purposes of continuing and increasing program in3 tegrity efforts of the Department of the Treasury by 

4 expanding tax enforcement activities, there are au5 thorized to be appropriated to the Secretary of the 

6 Treasury the following sums: 

7 (A) $1,115,000,000 for fiscal year 2011, 

8 to remain available through September 30, 

9 2012. 

10 (B) $1,357,000,000 for fiscal year 2012, 

11 to remain available through September 30, 

12 2013. 

13 (C) $1,724,000,000 for fiscal year 2013, 

14 to remain available through September 30, 

15 2014. 

16 (D) $2,105,000,000 for fiscal year 2014, 

17 to remain available through September 30, 

18 2015. 

19 (E) $2,568,000,000 for fiscal year 2015, 

20 to remain available through September 30, 

21 2016. 

22 (F) $14,406,000,000 for the period encom23 passing fiscal years 2016 through 2020. 

24 (4) DEPARTMENT OF LABOR.—For purposes of 

25 continuing and increasing program integrity efforts 


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1 of the Department of Labor by increasing the vol2 ume of in-person reemployment and eligibility as3 sessments of unemployment insurance beneficiaries 

4 conducted by States, there are authorized to be ap5 propriated to the Secretary of Labor the following 

6 sums: 

7 (A) $55,000,000 for fiscal year 2011, to 

8 remain available through September 30, 2012. 

9 (B) $60,000,000 for fiscal year 2012, to 

10 remain available through September 30, 2013. 

11 (C) $65,000,000 for fiscal year 2013, to 

12 remain available through September 30, 2014. 

13 (D) $70,000,000 for fiscal year 2014, to 

14 remain available through September 30, 2015. 

15 (E) $75,000,000 for fiscal year 2015, to 

16 remain available through September 30, 2016. 

17 (F) $395,000,000 for the period encom18 passing fiscal years 2016 through 2020. 

Æ 


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