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needs in order to reduce improper payments to mini-
mal cost-effective levels;
(2) if the agency does not have such systems
and infrastructure, a description of the resources the
agency has requested in its budget submission to ob-
tain the necessary information systems and infra-
structure; and
(3) a description of the steps the agency has
taken to ensure that agency managers (including the
agency head) are held accountable for reducing im-
proper payments.
(d) DEFINITIONS.—For the purposes of this section:
(1) AGENCY.—The term ‘‘agency’’ means an
executive agency, as that term is defined in section
102 of title 31, United States Code.
(2) IMPROPER PAYMENT.—The term ‘‘improper
payment’’—
(A) means any payment that should not
have been made or that was made in an incor-
rect amount (including overpayments and un-
derpayments) under statutory, contractual, ad-
ministrative, or other legally applicable require-
ments; and
(B) includes any payment to an ineligible
recipient, any payment for an ineligible service,
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any duplicate payment, payments for services
not received, and any payment that does not ac-
count for credit for applicable discounts.
(3) PAYMENT.—The term ‘‘payment’’ means
any payment (including a commitment for future
payment, such as a loan guarantee) that is—
(A) made by a Federal agency, a Federal
contractor, or a governmental or other organi-
zation administering a Federal program or ac-
tivity; and
(B) derived from Federal funds or other
Federal resources or that will be reimbursed
from Federal funds or other Federal resources.
(e) APPLICATION.—This section—
(1) applies with respect to the administration of
programs, and improper payments under programs,
in fiscal years after fiscal year 2002; and
(2) requires the inclusion of estimates under
subsection (b)(2) only in annual budget submissions
for fiscal years after fiscal year 2003.
(f) GUIDANCE BY THE OFFICE OF MANAGEMENT
AND BUDGET.—The Director of the Office of Manage-
ment and Budget shall prescribe guidance to implement
the requirements of this section.
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SEC. 640. (a) Notwithstanding paragraph (17) of
subsection (a) of the Policemen and Firemen’s Retirement
and Disability Act (sec. 5–701(17), D.C. Official Code)
or any other provision of such Act to the contrary, for
purposes of determining the amount of any annuity re-
quired to be paid under such Act with respect to an officer
or member of the United States Secret Service who retired
during fiscal year 1995, the officer’s or member’s average
pay shall be the officer’s or member’s basic salary at the
time of retirement.
(b) Subsection (a) shall apply with respect to any an-
nuity paid—
(1) during fiscal year 1995 or any succeeding
fiscal year, in the case of a survivor’s annuity paid
with respect to an officer or member of the United
States Secret Service described in such subsection;
or
(2) during fiscal year 2003 or any succeeding
fiscal year, in the case of any other annuity paid
with respect to an officer or member of the United
States Secret Service described in such subsection.
SEC. 641. Section 902(b) of the Law Enforcement
Pay Equity Act of 2000 (as enacted into law by Public
Law 106–554), shall cease to be effective on January 1,
2003.
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SEC. 642. No funds appropriated under this Act or
any other Act with respect to any fiscal year shall be avail-
able to take any action based upon any provision of 5
U.S.C. 552 with respect to records collected or maintained
by the Secretary of the Treasury or his delegate pursuant
to 18 U.S.C. 846(b), 923(g)(3) or 923(g)(7), or obtained
by the Secretary or delegate from Federal, State, local,
or foreign law enforcement agencies in connection with
arson or explosives incidents or the tracing of a firearm,
except that the Secretary or delegate may continue to dis-
close such records to the extent and in the manner that
records so collected, maintained, or obtained have been
disclosed by the Secretary or delegate under 5 U.S.C. 552
prior to the date of the enactment of this Act.
SEC. 643. (a) The adjustment in rates of basic pay
for the statutory pay systems that takes effect in fiscal
year 2003 under sections 5303 and 5304 of title 5, United
States Code, shall be an increase of 4.1 percent.
(b) Funds used to carry out this section shall be paid
from appropriations which are made to each applicable de-
partment or agency for salaries and expenses for fiscal
year 2003.
SEC. 644. (a) Section 9505(d) of title 5, United
States Code, is amended by striking the second sentence
and inserting the following: ‘‘Such amount may not exceed
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the maximum amount which would be allowable under
paragraph (3) of section 5384(b) if such paragraph were
applied by substituting ‘the Internal Revenue Service’ for
‘an agency’. ’’.
(b) The amendment made by subsection (a) shall
apply with respect to fiscal years beginning after Sep-
tember 30, 2002.
SEC. 645. None of the funds made available in this
Act may be used to finalize, implement, administer, or
enforce—
(1) the proposed rule relating to the determina-
tion that real estate brokerage is an activity that is
financial in nature or incidental to a financial activ-
ity published in the Federal Register on January 3,
2001 (66 Fed. Reg. 307 et seq.); or
(2) the revision proposed in such rule to section
1501.2 of title 12 of the Code of Federal Regula-
tions.
SEC. 646. CORPORATE EXPATRIATES. (a) LIMITA-
TION.—None of the funds made available in this Act may
be obligated for payment on any new contract to a sub-
sidiary of a publicly traded corporation if the corporation
is incorporated in a tax haven country but the United
States is the principal market for the public trading of
the corporation’s stock.
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(b) DEFINITION.—For purposes of subsection (a),
the term ‘‘tax haven country’’ means each of the following:
Barbados, Bermuda, British Virgin Islands, Cayman Is-
lands, Commonwealth of the Bahamas, Cyprus, Gibraltar,
Isle of Man, the Principality of Liechtenstein, the Princi-
pality of Monaco, and the Republic of the Seychelles.
(c) WAIVER.—The President may waive subsection
(a) with respect to any specific contract if the President
certifies to the Appropriations Committees that the waiver
is required in the interest of national security.
This Act may be cited as the ‘‘Treasury and General
Government Appropriations Act, 2003’’.