Payment Integrity Information Act of 2019
PL 116-117 (S.375), enacted 03/02/2020

[116th Congress Public Law 117]
[From the U.S. Government Publishing Office]



[[Page 134 STAT. 113]]

Public Law 116-117
116th Congress

                                 An Act


 
   To improve efforts to identify and reduce Governmentwide improper 
  payments, and for other purposes. <<NOTE: Mar. 2, 2020 -  [S. 375]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Payment 
Integrity Information Act of 2019. 31 USC 3301 note.>> 
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Payment Integrity Information Act of 
2019''.
SEC. 2. IMPROPER PAYMENTS.

    (a) In General.--Chapter 33 of title 31, United States Code, is 
amended by adding at the end the following:

``Subchapter <<NOTE: 31 USC 3351 prec.>>  IV--Improper Payments
``Sec. 3351. <<NOTE: 31 USC 3351.>>  Definitions

    ``In this subchapter:
            ``(1) Annual financial statement.--The term `annual 
        financial statement' means the annual financial statement 
        required under section 3515 of this title or similar provision 
        of law.
            ``(2) Compliance.--The term `compliance' means that an 
        executive agency--
                    ``(A) has--
                          ``(i) published improper payments information 
                      with the annual financial statement of the 
                      executive agency for the most recent fiscal year; 
                      and
                          ``(ii) posted on the website of the executive 
                      agency that statement and any accompanying 
                      materials required under guidance of the Office of 
                      Management and Budget;
                    ``(B) if required, has conducted a program specific 
                risk assessment for each program or activity that 
                conforms with the requirements under section 3352(a);
                    ``(C) if required, publishes improper payments 
                estimates for all programs and activities identified 
                under section 3352(a) in the accompanying materials to 
                the annual financial statement;
                    ``(D) publishes programmatic corrective action plans 
                prepared under section 3352(d) that the executive agency 
                may have in the accompanying materials to the annual 
                financial statement;
                    ``(E) publishes improper payments reduction targets 
                established under section 3352(d) that the executive 
                agency

[[Page 134 STAT. 114]]

                may have in the accompanying materials to the annual 
                financial statement for each program or activity 
                assessed to be at risk, and has demonstrated 
                improvements and developed a plan to meet the reduction 
                targets; and
                    ``(F) has reported an improper payment rate of less 
                than 10 percent for each program and activity for which 
                an estimate was published under section 3352(c).
            ``(3) Do not pay initiative.--The term `Do Not Pay 
        Initiative' means the initiative described in section 3354(b).
            ``(4) Improper payment.--The term `improper payment'--
                    ``(A) means any payment that should not have been 
                made or that was made in an incorrect amount, including 
                an overpayment or underpayment, under a statutory, 
                contractual, administrative, or other legally applicable 
                requirement; and
                    ``(B) includes--
                          ``(i) any payment to an ineligible recipient;
                          ``(ii) any payment for an ineligible good or 
                      service;
                          ``(iii) any duplicate payment;
                          ``(iv) any payment for a good or service not 
                      received, except for those payments where 
                      authorized by law; and
                          ``(v) any payment that does not account for 
                      credit for applicable discounts.
            ``(5) Payment.--The term `payment' means any transfer or 
        commitment for future transfer of Federal funds such as cash, 
        securities, loans, loan guarantees, and insurance subsidies to 
        any non-Federal person or entity or a Federal employee, that is 
        made by a Federal agency, a Federal contractor, a Federal 
        grantee, or a governmental or other organization administering a 
        Federal program or activity.
            ``(6) Payment for an ineligible good or service.--The term 
        `payment for an ineligible good or service' includes a payment 
        for any good or service that is rejected under any provision of 
        any contract, grant, lease, cooperative agreement, or other 
        funding mechanism.
            ``(7) Recovery audit.--The term `recovery audit' means a 
        recovery audit described in section 3352(i).
            ``(8) State.--The term `State' means each State of the 
        United States, the District of Columbia, each territory or 
        possession of the United States, and each Federally recognized 
        Indian tribe.
``Sec. 3352. <<NOTE: 31 USC 3352.>>  Estimates of improper 
                  payments and reports on actions to reduce 
                  improper payments

    ``(a) Identification of Susceptible Programs and Activities.--
            ``(1) <<NOTE: Guidance.>>  In general.--The head of each 
        executive agency shall, in accordance with guidance prescribed 
        by the Director of the Office of Management and Budget--
                    ``(A) <<NOTE: Review.>>  periodically review all 
                programs and activities that the head of the executive 
                agency administers; and
                    ``(B) identify all programs and activities with 
                outlays exceeding the statutory threshold dollar amount 
                described in paragraph (3)(A)(i) that may be susceptible 
                to significant improper payments.

[[Page 134 STAT. 115]]

            ``(2) <<NOTE: Time period.>>  Frequency.--A review under 
        paragraph (1) shall be performed for each program and activity 
        that the head of an executive agency administers not less 
        frequently than once every 3 fiscal years.
            ``(3) Risk assessments.--
                    ``(A) Definition of significant.--In this paragraph, 
                the term `significant' means that, in the preceding 
                fiscal year, the sum of a program or activity's improper 
                payments and payments whose propriety cannot be 
                determined by the executive agency due to lacking or 
                insufficient documentation may have exceeded--
                          ``(i) $10,000,000 of all reported program or 
                      activity payments of the executive agency made 
                      during that fiscal year and 1.5 percent of program 
                      outlays; or
                          ``(ii) $100,000,000.
                    ``(B) Scope.--In conducting a review under paragraph 
                (1), the head of each executive agency shall take into 
                account those risk factors that are likely to contribute 
                to a susceptibility to significant improper payments, 
                such as--
                          ``(i) whether the program or activity reviewed 
                      is new to the executive agency;
                          ``(ii) the complexity of the program or 
                      activity reviewed;
                          ``(iii) the volume of payments made through 
                      the program or activity reviewed;
                          ``(iv) whether payments or payment eligibility 
                      decisions are made outside of the executive 
                      agency, such as by a State or local government;
                          ``(v) recent major changes in program funding, 
                      authorities, practices, or procedures;
                          ``(vi) the level, experience, and quality of 
                      training for personnel responsible for making 
                      program eligibility determinations or certifying 
                      that payments are accurate;
                          ``(vii) significant deficiencies in the audit 
                      report of the executive agency or other relevant 
                      management findings that might hinder accurate 
                      payment certification;
                          ``(viii) similarities to other programs or 
                      activities that have reported improper payment 
                      estimates or been deemed susceptible to 
                      significant improper payments;
                          ``(ix) the accuracy and reliability of 
                      improper payment estimates previously reported for 
                      the program or activity, or other indicator of 
                      potential susceptibility to improper payments 
                      identified by the Inspector General of the 
                      executive agency, the Government Accountability 
                      Office, other audits performed by or on behalf of 
                      the Federal, State, or local government, 
                      disclosures by the executive agency, or any other 
                      means;
                          ``(x) whether the program or activity lacks 
                      information or data systems to confirm eligibility 
                      or provide for other payment integrity needs; and
                          ``(xi) the risk of fraud as assessed by the 
                      executive agency under the Standards for Internal 
                      Control in the Federal Government published by the 
                      Government

[[Page 134 STAT. 116]]

                      Accountability Office (commonly known as the 
                      `Green Book').
                    ``(C) <<NOTE: Lists.>>  Annual report.--Each 
                executive agency shall publish an annual report that 
                includes--
                          ``(i) a listing of each program or activity 
                      identified under paragraph (1), including the date 
                      on which the program or activity was most recently 
                      assessed for risk under paragraph (1); and
                          ``(ii) a listing of any program or activity 
                      for which the executive agency makes any 
                      substantial changes to the methodologies of the 
                      reviews conducted under paragraph (1).

    ``(b) Improving the Determination of Improper Payments.--
            ``(1) <<NOTE: Time period.>>  In general.--The Director of 
        the Office of Management and Budget shall on an annual basis--
                    ``(A) <<NOTE: Lists.>>  identify a list of high-
                priority Federal programs for greater levels of 
                oversight and review--
                          ``(i) in which the highest dollar value or 
                      highest rate of improper payments occur; or
                          ``(ii) for which there is a higher risk of 
                      improper payments; and
                    ``(B) <<NOTE: Coordination.>>  in coordination with 
                the executive agency responsible for administering a 
                high-priority program identified under subparagraph (A), 
                establish annual targets and semi-annual or quarterly 
                actions for reducing improper payments associated with 
                the high-priority program.
            ``(2) Report on high-priority improper payments.--
                    ``(A) <<NOTE: Time period. Public information. Web 
                posting.>>  In general.--Subject to Federal privacy 
                policies and to the extent permitted by law, each 
                executive agency with a program identified under 
                paragraph (1)(A) shall on an annual basis submit to the 
                Inspector General of the executive agency and the Office 
                of Management and Budget, and make available to the 
                public, including through a website, a report on that 
                program.
                    ``(B) Contents.--Each report submitted under 
                subparagraph (A)--
                          ``(i) shall describe any action the executive 
                      agency--
                                    ``(I) has taken or plans to take to 
                                recover improper payments; and
                                    ``(II) intends to take to prevent 
                                future improper payments; and
                          ``(ii) shall not include--
                                    ``(I) any referrals the executive 
                                agency made or anticipates making to the 
                                Department of Justice; or
                                    ``(II) any information provided in 
                                connection with a referral described in 
                                subclause (I).
                    ``(C) Public availability on central website.--The 
                Office of Management and Budget shall make each report 
                submitted under subparagraph (A) available on a central 
                website.
                    ``(D) Availability of information to inspector 
                general.--Subparagraph (B)(ii) shall not prohibit any 
                referral or information being made available to an 
                Inspector General as otherwise provided by law.

[[Page 134 STAT. 117]]

                    ``(E) Assessment and recommendations.--The Inspector 
                General of each executive agency that submits a report 
                under subparagraph (A) shall, for each program of the 
                executive agency that is identified under paragraph 
                (1)(A)--
                          ``(i) <<NOTE: Review.>>  review--
                                    ``(I) the assessment of the level of 
                                risk associated with the program and the 
                                quality of the improper payment 
                                estimates and methodology of the 
                                executive agency relating to the 
                                program; and
                                    ``(II) the oversight or financial 
                                controls to identify and prevent 
                                improper payments under the program; and
                          ``(ii) submit to the appropriate authorizing 
                      and appropriations committees of Congress 
                      recommendations, which may be included in another 
                      report submitted by the Inspector General to 
                      Congress, for modifying any plans of the executive 
                      agency relating to the program, including 
                      improvements for improper payments determination 
                      and estimation methodology.
                    ``(F) Annual meeting.--Not less frequently than once 
                every year, the head of each executive agency with a 
                program identified under paragraph (1)(A), or a designee 
                of the head of the executive agency, shall meet with the 
                Director of the Office of Management and Budget, or a 
                designee of the Director, to report on actions taken 
                during the preceding year and planned actions to prevent 
                improper payments.

    ``(c) Estimation of Improper Payments.--
            ``(1) Estimation.--With respect to each program and activity 
        identified under subsection (a)(1), the head of the relevant 
        executive agency shall--
                    ``(A) produce a statistically valid estimate, or an 
                estimate that is otherwise appropriate using a 
                methodology approved by the Director of the Office of 
                Management and Budget, of the improper payments made 
                under the program or activity; and
                    ``(B) include the estimates described in 
                subparagraph (A) in the accompanying materials to the 
                annual financial statement of the executive agency and 
                as required in applicable guidance of the Office of 
                Management and Budget.
            ``(2) Lacking or insufficient documentation.--
                    ``(A) In general.--For the purpose of producing an 
                estimate under paragraph (1), when the executive agency 
                cannot determine, due to lacking or insufficient 
                documentation, whether a payment is proper or not, the 
                payment shall be treated as an improper payment.
                    ``(B) Separate report.--The head of an executive 
                agency may report separately on what portion of the 
                improper payments estimate for a program or activity of 
                the executive agency under paragraph (1) is attributable 
                to lacking or insufficient documentation.

    ``(d) Reports on Actions To Reduce Improper Payments.--With respect 
to any program or activity of an executive agency with estimated 
improper payments under subsection (c), the head of the executive agency 
shall provide with the estimate required

[[Page 134 STAT. 118]]

under subsection (c) a report on what actions the executive agency is 
taking to reduce improper payments, including--
            ``(1) a description of the causes of the improper payments, 
        actions planned or taken to correct those causes, and the 
        planned or actual completion date of the actions taken to 
        address those causes;
            ``(2) in order to reduce improper payments to a level below 
        which further expenditures to reduce improper payments would 
        cost more than the amount those expenditures would save in 
        prevented or recovered improper payments, a statement of whether 
        the executive agency has what is needed with respect to--
                    ``(A) internal controls;
                    ``(B) human capital; and
                    ``(C) information systems and other infrastructure;
            ``(3) if the executive agency does not have sufficient 
        resources to establish and maintain effective internal controls 
        as described in paragraph (2)(A), a description of the resources 
        the executive agency has requested in the budget submission of 
        the executive agency to establish and maintain those internal 
        controls;
            ``(4) program-specific and activity-specific improper 
        payments reduction targets that have been approved by the 
        Director of the Office of Management and Budget;
            ``(5) a description of the steps the executive agency has 
        taken to ensure that executive agency managers, programs, and, 
        where appropriate, States and local governments are held 
        accountable through annual performance appraisal criteria for--
                    ``(A) meeting applicable improper payments reduction 
                targets; and
                    ``(B) establishing and maintaining sufficient 
                internal controls, including an appropriate control 
                environment, that effectively--
                          ``(i) prevent improper payments from being 
                      made; and
                          ``(ii) promptly detect and recover improper 
                      payments that are made; and
            ``(6) a description of how the level of planned or completed 
        actions by the executive agency to address the causes of the 
        improper payments matches the level of improper payments, 
        including a breakdown by category of improper payment and 
        specific timelines for completion of those actions.

    ``(e) Reports on Actions To Recover Improper Payments.--With respect 
to improper payments identified in a recovery audit, the head of the 
executive agency shall provide with the estimate required under 
subsection (c) a report on all actions the executive agency is taking to 
recover the improper payments, including--
            ``(1) a discussion of the methods used by the executive 
        agency to recover improper payments;
            ``(2) the amounts recovered, outstanding, and determined to 
        not be collectable, including the percent those amounts 
        represent of the total improper payments of the executive 
        agency;
            ``(3) <<NOTE: Determination.>>  if a determination has been 
        made that certain improper payments are not collectable, a 
        justification of that determination;
            ``(4) an aging schedule of the amounts outstanding;

[[Page 134 STAT. 119]]

            ``(5) <<NOTE: Summary.>>  a summary of how recovered amounts 
        have been disposed of;
            ``(6) a discussion of any conditions giving rise to improper 
        payments and how those conditions are being resolved; and
            ``(7) <<NOTE: Determination.>>  if the executive agency has 
        determined under subsection (i) that performing recovery audits 
        for any applicable program or activity is not cost-effective, a 
        justification for that determination.

    ``(f) Governmentwide Reporting of Improper Payments and Actions To 
Recover Improper Payments.--
            ``(1) Report.--Each fiscal year, the Director of the Office 
        of Management and Budget shall submit a report with respect to 
        the preceding fiscal year on actions that executive agencies 
        have taken to report information regarding improper payments and 
        actions to recover improper payments to--
                    ``(A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    ``(B) the Committee on Oversight and Reform of the 
                House of Representatives; and
                    ``(C) the Comptroller General of the United States.
            ``(2) Contents.--Each report required under paragraph (1) 
        shall include--
                    ``(A) <<NOTE: Summary.>>  a summary of the reports 
                of each executive agency on improper payments and 
                recovery actions submitted under this section;
                    ``(B) an identification of the compliance status of 
                each executive agency, as determined by the Inspector 
                General of the executive agency under section 3353, to 
                which this section applies;
                    ``(C) Governmentwide improper payment reduction 
                targets;
                    ``(D) <<NOTE: Estimate.>>  a Governmentwide estimate 
                of improper payments; and
                    ``(E) a discussion of progress made towards meeting 
                Governmentwide improper payment reduction targets.

    ``(g) Guidance by the Office of Management and Budget.--
            ``(1) <<NOTE: Deadline.>>  In general.--Not later than 1 
        year after the date of enactment of this section, the Director 
        of the Office of Management and Budget shall prescribe guidance 
        for executive agencies to implement the requirements of this 
        section, which shall not include any exemptions to those 
        requirements that are not specifically authorized by this 
        section.
            ``(2) Contents.--The guidance under paragraph (1) shall 
        prescribe--
                    ``(A) the form of the reports on actions to reduce 
                improper payments, recovery actions, and Governmentwide 
                reporting; and
                    ``(B) strategies for addressing risks and 
                establishing appropriate prepayment and postpayment 
                internal controls.

    ``(h) Determinations of Agency Readiness for Opinion on Internal 
Control.--The criteria required to be developed under section 2(g) of 
the Improper Payments Elimination and Recovery Act of 2010, as in effect 
on the day before the date of enactment of this section--
            ``(1) <<NOTE: Extension.>>  shall continue to be in effect 
        on and after the date of enactment of this section; and

[[Page 134 STAT. 120]]

            ``(2) may be modified as determined appropriate by the 
        Director of the Office of Management and Budget.

    ``(i) Recovery Audits.--
            ``(1) In general.--
                    ``(A) Conduct of audits.--Except as provided under 
                paragraph (3) and if not prohibited under any other 
                provision of law, the head of each executive agency 
                shall conduct recovery audits with respect to each 
                program and activity of the executive agency that 
                expends $1,000,000 or more annually if conducting the 
                audits would be cost effective.
                    ``(B) Procedures.--In conducting a recovery audit 
                under this subsection, the head of an executive agency--
                          ``(i) shall give priority to the most recent 
                      payments and to payments made in any program 
                      identified as susceptible to significant improper 
                      payments under subsection (a);
                          ``(ii) shall implement this subsection in a 
                      manner designed to ensure the greatest financial 
                      benefit to the Federal Government; and
                          ``(iii) may conduct the recovery audit 
                      directly, by using other departments and agencies 
                      of the United States, or by procuring performance 
                      of recovery audits by private sector sources by 
                      contract, subject to the availability of 
                      appropriations, or by any combination thereof.
                    ``(C) Recovery audit contracts.--With respect to a 
                recovery audit procured by an executive agency by 
                contract--
                          ``(i) subject to subparagraph (B)(iii), and 
                      except to the extent such actions are outside the 
                      authority of the executive agency under section 
                      7103 of title 41, the head of the executive agency 
                      may authorize the contractor to--
                                    ``(I) notify entities, including 
                                individuals, of potential overpayments 
                                made to those entities;
                                    ``(II) respond to questions 
                                concerning potential overpayments; and
                                    ``(III) take other administrative 
                                actions with respect to an overpayment 
                                claim made or to be made by the 
                                executive agency; and
                          ``(ii) the contractor shall not have the 
                      authority to make a final determination relating 
                      to whether any overpayment occurred or whether to 
                      compromise, settle, or terminate an overpayment 
                      claim.
                    ``(D) Contract terms and conditions.--
                          ``(i) <<NOTE: Reports.>>  In general.--The 
                      executive agency shall include in each contract 
                      for procurement of performance of a recovery audit 
                      a requirement that the contractor shall--
                                    ``(I) <<NOTE: Recommenda- tions.>>  
                                provide to the executive agency periodic 
                                reports on conditions giving rise to 
                                overpayments identified by the 
                                contractor and any recommendations on 
                                how to mitigate those conditions;
                                    ``(II) <<NOTE: Notification.>>  
                                notify the executive agency of any 
                                overpayments identified by the 
                                contractor pertaining to the executive 
                                agency or to any other executive

[[Page 134 STAT. 121]]

                                agency that are beyond the scope of the 
                                contract; and
                                    ``(III) report to the executive 
                                agency credible evidence of fraud or 
                                vulnerabilities to fraud and conduct 
                                appropriate training of personnel of the 
                                contractor on identification of fraud.
                          ``(ii) Reports on actions taken.--Each 
                      executive agency shall, on an annual basis, 
                      include in annual financial statement of the 
                      executive agency a report on actions taken by the 
                      executive agency during the preceding fiscal year 
                      to address the recommendations described in clause 
                      (i)(I).
                    ``(E) Agency action following notification.--Each 
                executive agency shall--
                          ``(i) take prompt and appropriate action in 
                      response to a report or notification by a 
                      contractor under subclause (I) or (II) of 
                      subparagraph (D)(i) to collect an overpayment; and
                          ``(ii) forward to other executive agencies any 
                      information that applies to that executive agency.
            ``(2) Disposition of amounts recovered.--
                    ``(A) In general.--Amounts collected by executive 
                agencies each fiscal year through recovery audits shall 
                be treated in accordance with this paragraph.
                    ``(B) <<NOTE: Determination.>>  Distribution.--The 
                head of an executive agency shall determine the 
                distribution of collected amounts described in 
                subparagraph (A), less amounts needed to fulfill the 
                purposes of section 3562(a) of this title, in accordance 
                with subparagraphs (C), (D), and (E).
                    ``(C) Use for financial management improvement 
                program.--Not more than 25 percent of the amounts 
                collected by an executive agency through recovery 
                audits--
                          ``(i) shall be available to the head of the 
                      executive agency to carry out the financial 
                      management improvement program of the executive 
                      agency under paragraph (3);
                          ``(ii) may be credited, if applicable, for the 
                      purpose described in clause (i) by the head of an 
                      executive agency to any executive agency 
                      appropriations and funds that are available for 
                      obligation at the time of collection; and
                          ``(iii) shall be used to supplement and not 
                      supplant any other amounts available for the 
                      purpose described in clause (i) and shall remain 
                      available until expended.
                    ``(D) Use for original purpose.--Not more than 25 
                percent of the amounts collected by an executive agency 
                through recovery audits--
                          ``(i) shall be credited to the appropriation 
                      or fund, if any, available for obligation at the 
                      time of collection for the same general purposes 
                      as the appropriation or fund from which the 
                      overpayment was made;
                          ``(ii) shall remain available for the same 
                      period and purposes as the appropriation or fund 
                      to which credited; and
                          ``(iii) if the appropriation from which an 
                      overpayment was made has expired--

[[Page 134 STAT. 122]]

                                    ``(I) in the case of recoveries of 
                                overpayments that are made from a trust 
                                or special fund account, shall revert to 
                                that account; and
                                    ``(II) in the case of other 
                                recoveries of overpayments--
                                            ``(aa) for amounts that are 
                                        recovered more than 5 fiscal 
                                        years from the last fiscal year 
                                        in which the funds were 
                                        available for obligation, shall 
                                        be deposited in the Treasury as 
                                        miscellaneous receipts; and
                                            ``(bb) for other amounts, 
                                        shall be newly available for the 
                                        same time period as the funds 
                                        were originally available for 
                                        obligation.
                    ``(E) Use for inspector general activities.--Not 
                more than 5 percent of the amounts collected by an 
                executive agency through recovery audits--
                          ``(i) shall be available to the Inspector 
                      General of that executive agency for--
                                    ``(I) the Inspector General to carry 
                                out this Act; or
                                    ``(II) any other activities of the 
                                Inspector General relating to 
                                investigating improper payments or 
                                auditing internal controls associated 
                                with payments; and
                          ``(ii) shall remain available for the same 
                      period and purposes as the appropriation or fund 
                      to which credited.
                    ``(F) Remainder.--Amounts collected that are not 
                applied in accordance with subparagraph (B), (C), (D), 
                or (E) shall be deposited in the Treasury as 
                miscellaneous receipts, except that in the case of 
                recoveries of overpayments that are made from trust or 
                special fund accounts, those amounts shall revert to 
                those accounts.
                    ``(G) <<NOTE: Applicability.>>  Discretionary 
                amounts.--This paragraph shall apply only to recoveries 
                of overpayments that are made from discretionary 
                appropriations, as defined in section 250(c)(7) of the 
                Balanced Budget and Emergency Deficit Control Act of 
                1985 (2 U.S.C. 900(c)(7)), and shall not apply to 
                recoveries of overpayments that are made from 
                discretionary amounts that were appropriated before the 
                date of enactment of the Improper Payments Elimination 
                and Recovery Act of 2010, as in effect on the day before 
                the date of enactment of this section.
                    ``(H) Application.--This paragraph shall not apply 
                to the recovery of an overpayment if the appropriation 
                from which the overpayment was made has not expired.
            ``(3) Financial management improvement program.--
                    ``(A) <<NOTE: Regulations.>>  Requirement.--The head 
                of each executive agency shall conduct a financial 
                management improvement program consistent with rules 
                prescribed by the Director of the Office of Management 
                and Budget.
                    ``(B) Program features.--In conducting a program 
                described in subparagraph (A), the head of an executive 
                agency--
                          ``(i) shall, as the first priority of the 
                      program, address problems that contribute directly 
                      to executive agency improper payments; and

[[Page 134 STAT. 123]]

                          ``(ii) may seek to reduce errors and waste in 
                      other executive agency programs and operations.
            ``(4) Privacy protections.--Any nongovernmental entity that, 
        in the course of recovery auditing or recovery activity under 
        this subsection, obtains information that identifies an 
        individual or with respect to which there is a reasonable basis 
        to believe that the information can be used to identify an 
        individual, may not disclose the information for any purpose 
        other than the recovery auditing or recovery activity and 
        governmental oversight of the activity, unless disclosure for 
        that other purpose is authorized by the individual to the 
        executive agency that contracted for the performance of the 
        recovery auditing or recovery activity.
            ``(5) Rule of construction.--Except as provided under 
        paragraph (4), nothing in this subsection shall be construed as 
        terminating or in any way limiting authorities that are 
        otherwise available to executive agencies under existing 
        provisions of law to recover improper payments and use recovered 
        amounts.
``Sec. 3353. <<NOTE: 31 USC 3353.>>  Compliance

    ``(a) Annual Compliance Report by Inspectors General of Executive 
Agencies.--
            ``(1) In general.--Each fiscal year, the Inspector General 
        of each executive agency shall--
                    ``(A) <<NOTE: Determination.>>  determine whether 
                the executive agency is in compliance; and
                    ``(B) submit a report on the determination made 
                under subparagraph (A) to--
                          ``(i) the head of the executive agency;
                          ``(ii) the Committee on Homeland Security and 
                      Governmental Affairs of the Senate;
                          ``(iii) the Committee on Oversight and Reform 
                      of the House of Representatives; and
                          ``(iv) the Comptroller General of the United 
                      States.
            ``(2) <<NOTE: Public information.>>  Development or use of a 
        central website.--The Council of the Inspectors General on 
        Integrity and Efficiency (in this subsection referred to as the 
        `Council') shall develop a public central website, or make use 
        of a public central website in existence on the date of 
        enactment of this section, to contain individual compliance 
        determination reports issued by Inspectors General under 
        paragraph (1)(B) and such additional information as determined 
        by the Council.
            ``(3) <<NOTE: Deadline. Consultation. Evaluations.>>  OMB 
        guidance.--Not later than 180 days after the date of enactment 
        of this section, the Director of the Office of Management and 
        Budget, in consultation with the Council and with consideration 
        given to the available resources and independence of individual 
        Offices of Inspectors General, shall develop and promulgate 
        guidance for the compliance determination reports issued by the 
        Inspectors General under paragraph (1)(B), which shall require 
        that--
                    ``(A) the reporting format used by the Inspectors 
                General is consistent;
                    ``(B) Inspectors General evaluate and take into 
                account the adequacy of executive agency risk 
                assessments, improper payment estimates methodology, and 
                executive

[[Page 134 STAT. 124]]

                agency action plans to address the causes of improper 
                payments;
                    ``(C) Inspectors General take into account whether 
                the executive agency has correctly identified the causes 
                of improper payments and whether the actions of the 
                executive agency to address those causes are adequate 
                and effective;
                    ``(D) Inspectors General evaluate the adequacy of 
                executive agency action plans on how the executive 
                agency addresses the causes of improper payments; and
                    ``(E) as part of the report, Inspectors General 
                include an evaluation of executive agency efforts to 
                prevent and reduce improper payments and any 
                recommendations for actions to further improve that 
                prevention and reduction.
            ``(4) <<NOTE: Deadline. Procedures.>>  CIGIE guidance.--Not 
        later than 180 days after the date of enactment of this section, 
        the Council shall, with consideration given to the available 
        resources and independence of individual Offices of Inspectors 
        General, develop and promulgate guidance that specifies 
        procedures for compliance determinations made by the Inspectors 
        General under paragraph (1)(A), which shall describe procedures 
        for Inspectors General--
                    ``(A) <<NOTE: Determination.>>  to make the 
                determinations consistent regarding compliance; and
                    ``(B) <<NOTE: Evaluation. Compliance.>>  to 
                evaluate--
                          ``(i) for compliance with the requirement 
                      described in section 3351(2)(B), the risk 
                      assessment methodology of the executive agency, 
                      including whether the audits, examinations, and 
                      legal actions of the Inspector General indicate a 
                      higher risk of improper payments or actual 
                      improper payments that were not included in the 
                      risk assessments of the executive agency conducted 
                      under section 3352(a);
                          ``(ii) for compliance with the requirement 
                      described in section 3351(2)(C), the accuracy of 
                      the rate estimates and whether the sampling and 
                      estimation plan used is appropriate given program 
                      characteristics;
                          ``(iii) for compliance with the requirement 
                      described in section 3351(2)(D), the corrective 
                      action plans and whether the plans are adequate 
                      and focused on the true causes of improper 
                      payments, including whether the corrective action 
                      plans are--
                                    ``(I) reducing improper payments;
                                    ``(II) effectively implemented; and
                                    ``(III) prioritized within the 
                                executive agency;
                          ``(iv) the adequacy of executive agency action 
                      plans to address the causes of improper payments;
                          ``(v) executive agency efforts to prevent and 
                      reduce improper payments, and any recommendations 
                      for actions to further improve; and
                          ``(vi) whether an executive agency has 
                      published an annual financial statement in 
                      accordance with the requirement described in 
                      section 3351(2)(A).

    ``(b) Remediation.--
            ``(1) Noncompliance.--
                    ``(A) <<NOTE: Determination. Plan.>>  In general.--
                If an executive agency is determined by the Inspector 
                General of that executive agency not to be in compliance 
                under subsection (a) in a fiscal year

[[Page 134 STAT. 125]]

                with respect to a program or activity, the head of the 
                executive agency shall submit to the appropriate 
                authorizing and appropriations committees of Congress a 
                plan describing the actions that the executive agency 
                will take to come into compliance.
                    ``(B) Plan.--The plan described in subparagraph (A) 
                shall include--
                          ``(i) measurable milestones to be accomplished 
                      in order to achieve compliance for each program or 
                      activity;
                          ``(ii) the designation of a senior executive 
                      agency official who shall be accountable for the 
                      progress of the executive agency in coming into 
                      compliance for each program or activity; and
                          ``(iii) the establishment of an accountability 
                      mechanism, such as a performance agreement, with 
                      appropriate incentives and consequences tied to 
                      the success of the official designated under 
                      clause (ii) in leading the efforts of the 
                      executive agency to come into compliance for each 
                      program or activity.
            ``(2) Noncompliance for 2 fiscal years.--
                    ``(A) <<NOTE: Determination. Proposal.>>  In 
                general.--If an executive agency is determined by the 
                Inspector General of that executive agency not to be in 
                compliance under subsection (a) for 2 consecutive fiscal 
                years for the same program or activity, the executive 
                agency shall propose to the Director of the Office of 
                Management and Budget additional program integrity 
                proposals that would help the executive agency come into 
                compliance.
                    ``(B) Additional funding.--
                          ``(i) <<NOTE: Determination.>>  In general.--
                      If the Director of the Office of Management and 
                      Budget determines that additional funding would 
                      help an executive agency described in subparagraph 
                      (A) come into compliance, the head of the 
                      executive agency shall obligate additional 
                      funding, in an amount determined by the Director, 
                      to intensified compliance efforts.
                          ``(ii) Reprogramming or transfer authority.--
                      In providing additional funding under clause (i)--
                                    ``(I) the head of an executive 
                                agency shall use any reprogramming or 
                                transfer authority available to the 
                                executive agency; and
                                    ``(II) if after exercising the 
                                reprogramming or transfer authority 
                                described in subclause (I), additional 
                                funding is necessary to obligate the 
                                full level of funding determined by the 
                                Director of the Office of Management and 
                                Budget under clause (i), the executive 
                                agency shall submit a request to 
                                Congress for additional reprogramming or 
                                transfer authority.
            ``(3) <<NOTE: Determination. Deadline.>>  Reauthorization 
        and statutory proposals.--If an executive agency is determined 
        by the Inspector General of that executive agency not to be in 
        compliance under subsection (a) for 3 consecutive fiscal years 
        for the same program or activity, the head of the executive 
        agency shall, not later than 30 days after the date of that 
        determination, submit to the

[[Page 134 STAT. 126]]

        appropriate authorizing and appropriations committees of 
        Congress and the Comptroller General of the United States--
                    ``(A)(i) reauthorization proposals for each program 
                or activity that has not been in compliance for 3 or 
                more consecutive fiscal years; and
                    ``(ii) proposed statutory changes necessary to bring 
                the program or activity into compliance; or
                    ``(B) if the head of the executive agency determines 
                that clauses (i) and (ii) of subparagraph (A) will not 
                bring the program or activity into compliance, a 
                description of the actions that the executive agency is 
                undertaking to bring the program or activity into 
                compliance and a timeline of when the compliance will be 
                achieved.
            ``(4) <<NOTE: Deadline. Report.>>  Plan and timeline for 
        compliance.--If an executive agency is determined by the 
        Inspector General of that executive agency not to be in 
        compliance under subsection (a) for 4 or more consecutive fiscal 
        years for the same program or activity, the head of the 
        executive agency shall, not later than 30 days after such 
        determination, submit to the appropriate authorizing and 
        appropriations committees of Congress a report that includes--
                    ``(A) the activities taken to comply with the 
                requirements for 1, 2, 3, 4, or more years of 
                noncompliance;
                    ``(B) a description of any requirements that were 
                fulfilled for 1, 2, or 3 consecutive years of 
                noncompliance that are still relevant and being pursued 
                as a means to bring the program or activity into 
                compliance and prevent and reduce improper payments;
                    ``(C) a description of any new corrective actions; 
                and
                    ``(D) a timeline for when the program or activity 
                will achieve compliance based on the actions described 
                within the report.
            ``(5) Annual report.--Each executive agency shall submit to 
        the appropriate authorizing and appropriations committees of 
        Congress and the Comptroller General of the United States--
                    ``(A) <<NOTE: Lists.>>  a list of each program or 
                activity that was determined to not be in compliance 
                under paragraph (1), (2), (3), or (4); and
                    ``(B) actions that are planned to bring the program 
                or activity into compliance.

    ``(c) Compliance Enforcement Pilot Programs.--The Director of the 
Office of Management and Budget may establish 1 or more pilot programs 
that shall test potential accountability mechanisms with appropriate 
incentives and consequences tied to success in ensuring compliance with 
this section and eliminating improper payments.
    ``(d) Improved Estimates Guidance.--The guidance required to be 
provided under section 3(b) of the Improper Payments Elimination and 
Recovery Improvement Act of 2012, as in effect on the day before the 
date of enactment of this section--
            ``(1) <<NOTE: Extension.>>  shall continue to be in effect 
        on and after the date of enactment of this section; and
            ``(2) may be modified as determined appropriate by the 
        Director of the Office of Management and Budget.
``Sec. 3354. <<NOTE: 31 USC 3354.>>  Do Not Pay Initiative

    ``(a) Prepayment and Preaward Procedures.--

[[Page 134 STAT. 127]]

            ``(1) <<NOTE: Review.>>  In general.--Each executive agency 
        shall review prepayment and preaward procedures and ensure that 
        a thorough review of available databases with relevant 
        information on eligibility occurs to determine program or award 
        eligibility and prevent improper payments before the release of 
        any Federal funds.
            ``(2) <<NOTE: Review.>>  Databases.--At a minimum and before 
        issuing any payment or award, each executive agency shall review 
        as appropriate the following databases to verify eligibility of 
        the payment and award:
                    ``(A) The death records maintained by the 
                Commissioner of Social Security.
                    ``(B) The System for Award Management Exclusion 
                Records, formerly known as the Excluded Parties List 
                System, of the General Services Administration.
                    ``(C) The Debt Check Database of the Department of 
                the Treasury.
                    ``(D) The Credit Alert System or Credit Alert 
                Interactive Voice Response System of the Department of 
                Housing and Urban Development.
                    ``(E) The List of Excluded Individuals/Entities of 
                the Office of Inspector General of the Department of 
                Health and Human Services.
                    ``(F) Information regarding incarcerated individuals 
                maintained by the Commissioner of Social Security under 
                sections 202(x) and 1611(e) of the Social Security Act 
                (42 U.S.C. 402(x), 1382(e)).

    ``(b) Do Not Pay Initiative.--
            ``(1) In general.--There is the Do Not Pay Initiative, which 
        shall include--
                    ``(A) use of the databases described in subsection 
                (a)(2); and
                    ``(B) <<NOTE: Consultation.>>  use of other 
                databases designated by the Director of the Office of 
                Management and Budget, or the designee of the Director, 
                in consultation with executive agencies and in 
                accordance with paragraph (2).
            ``(2) Other databases.--In making designations of other 
        databases under paragraph (1)(B), the Director of the Office of 
        Management and Budget, or the head of any executive agency 
        designated by the Director, shall--
                    ``(A) consider any database that substantially 
                assists in preventing improper payments; and
                    ``(B) <<NOTE: Public information.>>  provide public 
                notice and an opportunity for comment before designating 
                a database under paragraph (1)(B).
            ``(3) Access and review.--
                    ``(A) In general.--For purposes of identifying and 
                preventing improper payments, each executive agency 
                shall have access to, and use of, the Do Not Pay 
                Initiative to verify payment or award eligibility in 
                accordance with subsection (a).
                    ``(B) Matching programs.--
                          ``(i) <<NOTE: Consultation. Waiver 
                      authority.>>  In general.--The head of the agency 
                      operating the Working System may, in consultation 
                      with the Office of Management and Budget, waive 
                      the requirements of section 552a(o) of title 5 in 
                      any case or class of cases for computer matching 
                      activities conducted under this section.

[[Page 134 STAT. 128]]

                          ``(ii) Guidance.--The Director of the Office 
                      of Management and Budget may issue guidance that 
                      establishes requirements governing waivers under 
                      clause (i).
                    ``(C) Other entities.--Each State and any 
                contractor, subcontractor, or agent of a State, 
                including a State auditor or State program responsible 
                for reducing improper payments of a federally funded 
                State-administered program, and the judicial and 
                legislative branches of the United States, as defined in 
                paragraphs (2) and (3), respectively, of section 202(e) 
                of title 18, shall have access to, and use of, the Do 
                Not Pay Initiative for the purpose of verifying payment 
                or award eligibility for payments.
                    ``(D) <<NOTE: Guidance.>>  Consistency with privacy 
                act of 1974.--To ensure consistency with the principles 
                of section 552a of title 5 (commonly known as the 
                `Privacy Act of 1974'), the Director of the Office of 
                Management and Budget may issue guidance that 
                establishes privacy and other requirements that shall be 
                incorporated into Do Not Pay Initiative access 
                agreements with States, including any contractor, 
                subcontractor, or agent of a State, and the judicial and 
                legislative branches of the United States, as defined in 
                paragraphs (2) and (3), respectively, of section 202(e) 
                of title 18.
            ``(4) Payment otherwise required.--When using the Do Not Pay 
        Initiative, an executive agency shall recognize that there may 
        be circumstances under which the law requires a payment or award 
        to be made to a recipient, regardless of whether that recipient 
        is identified as potentially ineligible under the Do Not Pay 
        Initiative.
            ``(5) Annual report.--The Director of the Office of 
        Management and Budget shall submit to Congress an annual report, 
        which may be included as part of another report submitted to 
        Congress by the Director, regarding the operation of the Do Not 
        Pay Initiative, which shall--
                    ``(A) <<NOTE: Evaluation.>>  include an evaluation 
                of whether the Do Not Pay Initiative has reduced 
                improper payments or improper awards; and
                    ``(B) provide the frequency of corrections or 
                identification of incorrect information.

    ``(c) Initial Working System.--The working system required to be 
established under section 5(d) of the Improper Payments Elimination and 
Recovery Improvement Act of 2012, as in effect on the day before the 
date of enactment of this section--
            ``(1) <<NOTE: Extension.>>  shall continue to be in effect 
        on and after the date of enactment of this section; and
            ``(2) <<NOTE: Requirements. Review.>>  shall require each 
        executive agency to review all payments and awards for all 
        programs and activities of that executive agency through the 
        working system.

    ``(d) Facilitating Data Access by Federal Agencies and Offices of 
Inspectors General for Purposes of Program Integrity.--
            ``(1) Computer matching by executive agencies for purposes 
        of investigation and prevention of improper payments and 
        fraud.--
                    ``(A) In general.--Except as provided in this 
                paragraph, in accordance with section 552a of title 5 
                (commonly

[[Page 134 STAT. 129]]

                known as the `Privacy Act of 1974'), the head of each 
                executive agency may enter into computer matching 
                agreements with other heads of executive agencies that 
                allow ongoing data matching, which shall include 
                automated data matching, in order to assist in the 
                detection and prevention of improper payments.
                    ``(B) <<NOTE: Deadline.>>  Review.--Not later than 
                60 days after the date on which a proposal for an 
                agreement under subparagraph (A) has been presented to a 
                Data Integrity Board established under section 552a(u) 
                of title 5 for consideration, the Data Integrity Board 
                shall respond to the proposal.
                    ``(C) Termination date.--An agreement described in 
                subparagraph (A)--
                          ``(i) shall have a termination date of less 
                      than 3 years; and
                          ``(ii) during the 3-month period ending on the 
                      date on which the agreement is scheduled to 
                      terminate, may be renewed by the executive 
                      agencies entering the agreement for not more than 
                      3 years.
                    ``(D) <<NOTE: Applicability.>>  Multiple agencies.--
                For purposes of this paragraph, section 552a(o)(1) of 
                title 5 shall be applied by substituting `between the 
                source agency and the recipient agency or non-Federal 
                agency or an agreement governing multiple agencies' for 
                `between the source agency and the recipient agency or 
                non-Federal agency' in the matter preceding subparagraph 
                (A).
                    ``(E) Cost-benefit analysis.--A justification under 
                section 552a(o)(1)(B) of title 5 relating to an 
                agreement under subparagraph (A) is not required to 
                contain a specific estimate of any savings under the 
                computer matching agreement.
            ``(2) Guidance and procedures by the office of management 
        and budget.--The guidance, rules, and procedures required to be 
        issued, clarified, and established under paragraphs (3) and (4) 
        of section 5(e) of the Improper Payments Elimination and 
        Recovery Improvement Act of 2012, as in effect on the day before 
        the date of enactment of this section--
                    ``(A) <<NOTE: Extension.>>  shall continue to be in 
                effect on and after the date of enactment of this 
                section; and
                    ``(B) may be modified as determined appropriate by 
                the Director of the Office of Management and Budget.
            ``(3) <<NOTE: Consultation.>>  Compliance.--The head of each 
        executive agency, in consultation with the Inspector General of 
        the executive agency, shall ensure that any information provided 
        to an individual or entity under this subsection is provided in 
        accordance with protocols established under this subsection.
            ``(4) Rule of construction.--Nothing in this subsection 
        shall be construed--
                    ``(A) to affect the rights of an individual under 
                section 552a(p) of title 5; or
                    ``(B) to impede the exercise of an exemption 
                provided to Inspectors General or by an executive agency 
                in coordination with an Inspector General under section 
                6(j) of the Inspector General Act of 1978 (5 U.S.C. 
                App.).

    ``(e) Plan To Curb Federal Improper Payments to Deceased Individuals 
by Improving the Quality and Use by Federal

[[Page 134 STAT. 130]]

Agencies of the Social Security Administration Death Master File and 
Other Death Data.--
            ``(1) <<NOTE: Consultation. Study.>>  Establishment.--In 
        conjunction with the Commissioner of Social Security and in 
        consultation with relevant stakeholders that have an interest in 
        or responsibility for providing the data, and each State, the 
        Director of the Office of Management and Budget shall conduct a 
        study and update the plan required to be established under 
        section 5(g) of the Improper Payments Elimination and Recovery 
        Improvement Act of 2012, as in effect on the day before the date 
        of enactment of this section, for improving the quality, 
        accuracy, and timeliness of death data maintained by the Social 
        Security Administration, including death information reported to 
        the Commissioner under section 205(r) of the Social Security Act 
        (42 U.S.C. 405(r)).
            ``(2) <<NOTE: Recommenda- tions.>>  Additional actions under 
        plan.--The plan described in this subsection shall include 
        recommended actions by executive agencies to--
                    ``(A) increase the quality and frequency of access 
                to the Death Master File and other death data;
                    ``(B) achieve a goal of at least daily access as 
                appropriate;
                    ``(C) provide for all States and other data 
                providers to use improved and electronic means for 
                providing data;
                    ``(D) identify improved methods by executive 
                agencies for determining ineligible payments due to the 
                death of a recipient through proactive verification 
                means; and
                    ``(E) address improper payments made by executive 
                agencies to deceased individuals as part of Federal 
                retirement programs.
            ``(3) Report.--Not later than 120 days after the date of 
        enactment of this section, the Director of the Office of 
        Management and Budget shall submit a report to Congress on the 
        plan described in this subsection, including recommended 
        legislation.
``Sec. 3355. <<NOTE: 31 USC 3355.>>  Improving recovery of 
                  improper payments

    ``The <<NOTE: Determinations.>>  Director of the Office of 
Management and Budget shall determine--
            ``(1) current and historical rates and amounts of recovery 
        of improper payments, or, in cases in which improper payments 
        are identified solely on the basis of a sample, recovery rates 
        and amounts estimated on the basis of the applicable sample, 
        including a list of executive agency recovery audit contract 
        programs and specific information of amounts and payments 
        recovered by recovery audit contractors; and
            ``(2) targets for recovering improper payments, including 
        specific information on amounts and payments recovered by 
        recovery audit contractors.
``Sec. 3356. <<NOTE: 31 USC 3356.>>  Improving the use of data by 
                  executive agencies for curbing improper payments

    ``(a) Prompt Reporting of Death Information by the Department of 
State and the Department of Defense.--The procedure required to be 
established under section 7(a) of the Improper Payments Elimination and 
Recovery Improvement Act

[[Page 134 STAT. 131]]

of 2012, as in effect on the day before the date of enactment of this 
section--
            ``(1) <<NOTE: Extension.>>  shall continue to be in effect 
        on and after the date of enactment of this section; and
            ``(2) may be modified as determined appropriate by the 
        Director of the Office of Management and Budget.

    ``(b) Prompt Reporting of Death Information by the Department of 
Veterans Affairs and the Office of Personnel Management.--Not later than 
1 year after the date of enactment of this section, the Secretary of 
Veterans Affairs and the Director of the Office of Personnel Management 
shall establish a procedure under which the Secretary and the Director--
            ``(1) shall promptly and on a regular basis submit 
        information relating to the deaths of individuals, including 
        stopped payments data as applicable, to each executive agency 
        for which the Director of the Office of Management and Budget 
        determines receiving and using such information would be 
        relevant and necessary; and
            ``(2) to facilitate the centralized access of death data for 
        the use of reducing improper payments, may identify additional 
        Federal sources of death data and direct the data owner to 
        provide that data to 1 or more executive agencies for that 
        purpose.

    ``(c) Guidance to Executive Agencies Regarding Data Access and Use 
for Improper Payments Purposes.--The guidance required to be issued 
under section 7(b) of the Improper Payments Elimination and Recovery 
Improvement Act of 2012, as in effect on the day before the date of 
enactment of this section--
            ``(1) <<NOTE: Extension.>>  shall continue to be in effect 
        on and after the date of enactment of this section; and
            ``(2) may be modified as determined appropriate by the 
        Director of the Office of Management and Budget.
``Sec. 3357. <<NOTE: 31 USC 3357.>>  Financial and administrative 
                  controls relating to fraud and improper payments

    ``(a) Definition.--In this section, the term `agency' has the 
meaning given the term in section 551 of title 5.
    ``(b) Guidelines.--The guidelines required to be established under 
section 3(a) of the Fraud Reduction and Data Analytics Act of 2015, as 
in effect on the day before the date of enactment of this section--
            ``(1) <<NOTE: Extension.>>  shall continue to be in effect 
        on and after the date of enactment of this section; and
            ``(2) <<NOTE: Consultation.>>  may be periodically modified 
        by the Director of the Office of Management and Budget, in 
        consultation with the Comptroller General of the United States, 
        as the Director and Comptroller General may determine necessary.

    ``(c) Requirements for Controls.--The guidelines described in 
subsection (b) shall include--
            ``(1) <<NOTE: Evaluation.>>  conducting an evaluation of 
        fraud risks and using a risk-based approach to design and 
        implement financial and administrative control activities to 
        mitigate identified fraud risks;
            ``(2) <<NOTE: Data.>>  collecting and analyzing data from 
        reporting mechanisms on detected fraud to monitor fraud trends 
        and using that data and information to continuously improve 
        fraud prevention controls; and

[[Page 134 STAT. 132]]

            ``(3) using the results of monitoring, evaluation, audits, 
        and investigations to improve fraud prevention, detection, and 
        response.

    ``(d) Report.--For each of fiscal years 2019 and 2020, each agency 
shall submit to Congress, as part of the annual financial report of the 
agency, a report of the agency on--
            ``(1) implementing--
                    ``(A) the financial and administrative controls 
                described in subsection (b);
                    ``(B) the fraud risk principle in the Standards for 
                Internal Control in the Federal Government published by 
                the Government Accountability Office (commonly known as 
                the `Green Book'); and
                    ``(C) Office of Management and Budget Circular A-
                123, or any successor thereto, with respect to the 
                leading practices for managing fraud risk;
            ``(2) identifying risks and vulnerabilities to fraud, 
        including with respect to payroll, beneficiary payments, grants, 
        large contracts, and purchase and travel cards; and
            ``(3) establishing strategies, procedures, and other steps 
        to curb fraud.
``Sec. 3358. <<NOTE: 31 USC 3358.>>  Interagency working group for 
                  Governmentwide payment integrity improvement

    ``(a) Working Group.--
            ``(1) <<NOTE: Deadline.>>  Establishment.--Not later than 90 
        days after the date of enactment of this section, there is 
        established an interagency working group on payment integrity--
                    ``(A) to improve--
                          ``(i) State-administered Federal programs to 
                      determine eligibility processes and data sharing 
                      practices;
                          ``(ii) the guidelines described in section 
                      3357(b) and other best practices and techniques 
                      for detecting, preventing, and responding to 
                      improper payments, including improper payments 
                      that are the result of fraud; and
                          ``(iii) <<NOTE: Data.>>  the sharing and 
                      development of data analytics techniques to help 
                      prevent and identify potential improper payments, 
                      including those that are the result of fraud; and
                    ``(B) to identify any additional activities that 
                will improve payment integrity of Federal programs.
            ``(2) Composition.--The interagency working group 
        established under paragraph (1) shall be composed of--
                    ``(A) the Director of the Office of Management and 
                Budget;
                    ``(B) 1 representative from each of the agencies 
                described in paragraphs (1) and (2) of section 901(b) of 
                this title; and
                    ``(C) any other representatives of other executive 
                agencies determined appropriate by the Director of the 
                Office of Management and Budget, which may include the 
                Chief Information Officer, the Chief Procurement 
                Officer, the Chief Risk Officer, or the Chief Operating 
                Officer of an executive agency.

    ``(b) <<NOTE: Assessment.>>  Consultation.--The working group 
established under subsection (a)(1) may consult with Offices of 
Inspectors General and

[[Page 134 STAT. 133]]

Federal and non-Federal experts on fraud risk assessments, 
administrative controls over payment integrity, financial controls, and 
other relevant matters.

    ``(c) Meetings.--The working group established under subsection 
(a)(1) shall hold not fewer than 4 meetings per year.
    ``(d) <<NOTE: Plans.>>  Report.--Not later than 240 days after the 
date of enactment of this section, the working group established under 
subsection (a)(1) shall submit to Congress a report that includes--
            ``(1) a plan containing tangible solutions to prevent and 
        reduce improper payments; and
            ``(2) a plan for State agencies to work with Federal 
        agencies to regularly review lists of beneficiaries of State-
        managed Federal programs for duplicate enrollment between 
        States, including how the Do Not Pay Business Center and the 
        data analytics initiative of the Department of the Treasury 
        could aid in the detection of duplicate enrollment.''.

    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 33 of title <<NOTE: 31 USC 3301 prec.>> 31, United States Code, 
is amended by adding at the end the following:

                   ``subchapter iv--improper payments

``3351. Definitions.
``3352. Estimates of improper payments and reports on actions to reduce 
           improper payments.
``3353. Compliance.
``3354. Do Not Pay Initiative.
``3355. Improving recovery of improper payments.
``3356. Improving the use of data by executive agencies for curbing 
           improper payments.
``3357. Financial and administrative controls relating to fraud and 
           improper payments.
``3358. Interagency working group for Governmentwide payment integrity 
           improvement.''.

SEC. 3. REPEALS.

    (a) In General.--
            (1) Improper payments information act of 2002.--The Improper 
        Payments Information Act of 2002 (31 U.S.C. 3321 note) is 
        repealed.
            (2) Improper payments elimination and recovery act of 
        2010.--The Improper Payments Elimination and Recovery Act of 
        2010 <<NOTE: 31 USC 3301 note, 3321 notes.>> (Public Law 114-
        204; 124 Stat. 2224) is repealed.
            (3) Improper payments elimination and recovery improvement 
        act of 2012.--The Improper Payments Elimination and Recovery 
        Improvement Act of 2012 (31 U.S.C. 3321 note) is repealed.
            (4) Fraud reduction and data analytics act of 2015.--The 
        Fraud Reduction and Data Analytics Act of 2015 (31 U.S.C. 3321 
        note) is repealed.

    (b) Technical and Conforming Amendments.--
            (1) Government charge card abuse prevention act of 2012.--
        Section 6(a) of the Government Charge Card Abuse Prevention Act 
        of 2012 (5 U.S.C. 5701 note) is amended by striking ``section 
        3512 of title 31, United States Code, or in the Improper 
        Payments Information Act of 2002 (31 U.S.C. 3321 note)'' and 
        inserting ``section 3512 or subchapter IV of chapter 33 of title 
        31, United States Code''.
            (2) Homeland security act of 2002.--Section 2022(a) of the 
        Homeland Security Act of 2002 (6 U.S.C. 612(a)) is amended--

[[Page 134 STAT. 134]]

                    (A) in paragraph (1)(C), by striking ``Consistent 
                with the Improper Payments Information Act of 2002 (31 
                U.S.C. 3321 note)'' and inserting ``Consistent with 
                subchapter IV of chapter 33 of title 31, United States 
                Code''; and
                    (B) in paragraph (5), by striking ``section 2(h) of 
                the Improper Payments Elimination and Recovery Act of 
                2010 (31 U.S.C. 3321 note)'' and inserting ``section 
                3352(i) of title 31, United States Code,''.
            (3) Social security act.--Section 2105 of the Social 
        Security Act (42 U.S.C. 1397ee(c)) is amended by striking 
        ``Improper Payments Information Act of 2002'' each place that 
        term appears and inserting ``subchapter IV of chapter 33 of 
        title 31, United States Code''.
            (4) Title 31.--Section 3562(a) of title 31, United States 
        Code, is amended--
                    (A) in the matter preceding paragraph (1)--
                          (i) by striking ``section 3561'' and inserting 
                      ``section 3352(i)''; and
                          (ii) by striking ``agency for the following 
                      purposes:'' and all that follows through ``To 
                      reimburse'' and inserting ``agency to reimburse''; 
                      and
                    (B) by striking paragraph (2).

    Approved March 2, 2020.

LEGISLATIVE HISTORY--S. 375:
---------------------------------------------------------------------------

SENATE REPORTS: No. 116-35 (Comm. on Homeland Security and Governmental 
Affairs).
CONGRESSIONAL RECORD:
                                                        Vol. 165 (2019):
                                    July 16, considered and passed 
                                        Senate.
                                                        Vol. 166 (2020):
                                    Feb. 5, considered and passed House.

                                  <all>