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 Com-
mittee on Oversight and Government Reform, and in addition to the 
Committees on the Budget and Appropriations, for a period to be subse-
quently 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-adminis-
tered programs has increased from the previous year, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Eliminate Preventable 
Waste Act’’. 
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SEC. 2. REPORTS ON IMPROPER PAYMENTS. 
(a) IN
GENERAL.—Notwithstanding the require-
ments of section 2(a)(2) of the Improper Payments Infor-
mation Act of 2002 (31 U.S.C. 3321 note), not later than 
90 days after the end of fiscal year 2014 and each fiscal 
year thereafter, the following agency heads shall perform 
the review required under section 2(a)(1) of such Act for 
the following programs, respectively: 
(1) Commissioner of the Social Security Admin-
istration— 
(A) the Supplemental Security Income pro-
gram under title XVI of the Social Security Act 
(42 U.S.C. 1381 et seq.); and 
(B) the Old Age, Survivors, and Disability 
Insurance program under title XVI of the So-
cial Security Act (42 U.S.C. 1381 et seq.). 
(2) Secretary of Agriculture— 
(A) the school lunch program under the 
Richard B. Russell National School Lunch Act 
(42 U.S.C. 1751 et seq.); and 
(B) the school breakfast program under 
section 4 of the Child Nutrition Act of 1966 
(42 U.S.C. 1773). 
(3) Secretary of Labor; State unemployment 
compensation programs approved by the Secretary 
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of Labor under section 3304 of the Internal Revenue 
Code of 1986. 
(4) Secretary of Health and Human Services— 
(A) Medicare fee-for-service (parts A and 
B of title XVIII of the Social Security Act (42 
U.S.C. 1381 et seq.)); 
(B) Medicaid (title XIX of such Act), 
Medicare Advantage (part C of title XVIII of 
such Act); 
(C) Medicare prescription drug benefit 
(part D of title XVIII of such Act); and 
(D) the Child Care and Development Fund 
(section 5082 of subchapter C of Public Law 
101–508). 
(5) Secretary of the Treasury; the Earned In-
come Tax Credit (section 32 of the Internal Revenue 
Code of 1986). 
(6) Secretary of Veterans Affairs— 
(A) payments under section 607 of the 
Transportation, Treasury, and Independent 
Agencies Appropriations Act, 2004 (division F 
of Public Law 108–199); and 
(B) payments to non-Department facilities 
(as defined in section 1701(4) of title 38, 
United States Code) under the following: 
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(i) section 1703 of such title (relating 
to hospital care and medical services pro-
vided to veterans in non-Department facili-
ties); 
(ii) section 1725 of such title (relating 
to reimbursement to veterans for certain 
emergency treatment in non-Department 
facilities); 
(iii) section 1728 of such title (relat-
ing to reimbursement to veterans for cer-
tain treatment in non-Department facili-
ties); 
(iv) section 8111 of such title (relat-
ing to the sharing of Department of Vet-
erans Affairs and Department of Defense 
health-care resources); and 
(v) section 8153 of such title (relating 
to the sharing of health-care resources). 
(b) BUDGET SUBMISSION.—Each agency head shall 
include in the applicable agency annual budget request to 
the Office of Management and Budget a report on the re-
view required under subsection (a). 
(c) SUNSET.—If a review under subsection (a) shows 
that the improper payment rate for any listed program 
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is less than or equal to 0.00034 percent, this section shall 
no longer apply with respect to such program. 
SEC. 3. AMENDMENT WITH RESPECT TO PRESIDENT’S 
BUDGET SUBMISSION. 
(a) IN GENERAL.—Section 1105(a) of title 31, 
United States Code, is amended by— 
(1) redesignating paragraph (37) (relating to 
the list of outdated or duplicative plans and reports) 
as paragraph (39); and 
(2) by adding at the end the following: 
‘‘(40) any report submitted to the Office of 
Management and Budget pursuant to section 2 of 
the Eliminate Preventable Waste Act.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2014. 
SEC. 4. RESCISSION OF FUNDS. 
(a) REDUCTION IN ERROR RATES.—If any report 
submitted by an agency head required under section 2, 
as included in President’s budget under section 1105(a) 
of title 31, United States Code (as amended by section 
2 of this Act), does not show, with respect to the relevant 
program listed in section 2(a), a decrease in the improper 
payment rate from the fiscal year immediately preceding 
the fiscal year covered by the report, a rescission under 
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subsection (b) of certain funds made available to the appli-
cable agency shall apply. 
(b) RESCISSION.— 
(1) IN GENERAL.—On the day that the Presi-
dent submits such a budget, there is rescinded (if 
necessary) from the following accounts a percentage 
of such account equal to the percentage of the high-
est improper payment rate of the program listed in 
the report submitted by the relevant agency pursu-
ant to section 2 and included in such agency’s budg-
et: 
(A) Department of Agriculture, ‘‘Agricul-
tural 
Programs—Production, 
Process, 
and 
Marketing—Office of the Secretary’’. 
(B) Department of Health and Human 
Services, ‘‘Department of Health and Human 
Services—Office of the Secretary’’. 
(C) Department of Labor, ‘‘Department of 
Labor—Departmental 
Management—Salaries 
and Expenses’’. 
(D) Department of the Treasury, ‘‘Depart-
ment of the Treasury—Departmental Offices— 
Salaries and Expenses’’. 
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(E) Social Security Administration, ‘‘Social 
Security Administration—Limitation on Admin-
istrative Expenses’’. 
(F) Department of Veterans Affairs, ‘‘De-
partment of Veterans Affairs—Departmental 
Administration—General Administration’’. 
(2) PROPORTIONATE
APPLICATION.—Any re-
scission made under paragraph (1) shall be applied 
proportionately within each listed account to each 
program, project, and activity (with programs, 
projects, and activities as delineated in the appro-
priation Act or accompanying reports for the appli-
cable fiscal year covering such account). 
(c) REPORT TO CONGRESS.—For each fiscal year be-
ginning in fiscal year 2015, not later than the date on 
which President submits a budget under section 1105(a) 
of title 31, United States Code, each agency head listed 
in section 2(a) shall submit to Congress any report re-
quired by section 2 of this Act. 
(d) EFFECTIVE DATE.—This section shall take effect 
on October 1, 2014. 
Æ 
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