Current status is Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

119th CONGRESS

1st Session

H. R. 1533

1. Short title
2. Overpayment Czar
3. Amendments to financial management plan requirements
4. Improper payments

1. Short title

This Act may be cited as the "PIIA Reform Act".

2. Overpayment Czar

(a) Amendment - Chapter 5 of title 31, United States Code, is amended by inserting after section 504 the following new section:

504A. Overpayment Czar

(a) Establishment - There is established within the Office of Federal Financial Management a Director of Improper Payment Mitigation, to be referred to as the "Overpayment Czar"—

(1) - under the direction and control of the Controller;

(2) - who shall be appointed and may be removed by the Director; and

(3) - who shall receive a rate of pay fixed by the Director.

(b) Duties - The Overpayment Czar—

(1) - shall assist executive agencies in the identification, prevention, and mitigation of improper payments and fraud within Federal programs; and

(2) - shall develop and recommend strategies that address improper payment in executive agency payments; and

(3) - shall annually submit to the Controller a report that proposes corrective actions to improve payment integrity and combat fraud effectively across the Federal Government.

(c) Authority To Recommend Policy Changes - The Overpayment Czar may recommend policy changes to the Chief Financial Officer of any executive agency to develop reliable estimates of improper payments.

(d) Definitions - In this section:

(1) Controller - The term Controller means the Controller of the Office of Federal Financial Management.

(2) Director - The term Director means the Director of the Office of Management and Budget.

(3) Improper payment - The term improper payment has the meaning given that term in section 3351.

(b) Technical and conforming amendment - The table of sections for chapter 5 of title 31, United States Code, is amended by inserting after the item for section 504 the following new item:

3. Amendments to financial management plan requirements

Section 3512(a)(3) of title 31, United States Code, is amended—

(1) - in subparagraph (A), by inserting "the Overpayment Czar," after "the Controller of the Office of Federal Financial Management,"; and

(2) - in subparagraph (B)—

(A) - in clause (viii), by striking "; and" and inserting a semicolon;

(B) - in clause (ix), by striking the period at the end and inserting "; and"; and

(x) - include a plan to decrease improper payments (as defined in section 3351) throughout executive agencies.

4. Improper payments

(a) Expanding improper payment scope - Section 3352 of title 31, United States Code, is amended—

(1) New programs and activities - in subsection (a)—

(A) - in paragraph (3)—

(i) - in subparagraph (A)—

(I) - in clause (i), by striking "; or" and inserting a semicolon;

(II) - in clause (ii), by striking the period at the end; and

(III) - by adding at the end the following new clauses:

(iii) - any new Federal program that makes more than $100,000,000 in payments in the first year of operation;

(iv) - for which the Inspector general of the executive agency has an outstanding recommendation in the report required by subsection (b)(2)(E); or

(v) - any new Federal program that has or is expected to have outlays exceeding $100,000,000 in any one of the first 3 fiscal years of operation and is in the first 4 years of operation.

(ii) - in subparagraph (B), in the matter preceding clause (i), by striking "paragraph (1)" and inserting "paragraph (1)(B)"; and

(iii) - in subparagraph (C), by striking "paragraph (1)" each place it appears and inserting "paragraphs (1) and (4)"; and

(B) New programs and activities - by adding at the end the following new paragraph:

(4) New programs and activities

(A) Susceptible to significant improper payments - In addition to the programs and activities identified under paragraph (1)(B), the head of an executive agency shall identify as susceptible to significant improper payments any program or activity that—

(i) - has or is expected to have outlays exceeding $100,000,000 in any one of the first 3 fiscal years of operation; and

(ii) - is in the first 4 years of operation.

(B) Applicability - This paragraph shall not apply with respect to any program or activity that the head of the relevant executive agency determines, based on the results of a review conducted under paragraph (1), is not susceptible to significant improper payments.

(2) - in subsection (c)(1), in the matter preceding subparagraph (A), by striking “subsection (a)(1)” and inserting “paragraphs (1) and (4) of subsection (a)”.

(b) Authority To require data reporting for improper payment estimation under the TANF program - Section 417 of the Social Security Act (42 U.S.C. 617) is amended by striking the period at the end and inserting "or as the Secretary may determine is necessary to carry out subsections (a) through (e) of section 3352 of title 31, United States Code, with respect to any program or activity authorized by this part.".

(c) Mechanism for Noncompliance - Section 3353 of title 31, United States Code, is amended by adding at the end the following new subsection:

(e) Special adjustment for persistent noncompliance

(1) In general - Beginning with the first fiscal year after the date of the enactment of this subsection, any executive agency which is in a state of noncompliance according to subsection (b)(1) shall have its highest-level administrative appropriation account reduced in the final sequestration report issued under the Balanced Budget and Emergency Deficit Control Act of 1985 for that fiscal year by an amount equal to 5 percent of the total budget authority provided for that account in the most recently enacted applicable appropriation Act.

(2) For two or more years - If the executive agency is noncompliant for two or more fiscal years after the date of the enactment of this subsection, then the highest-level administrative appropriation account shall be reduced in the final sequestration report issued under the Balanced Budget and Emergency Deficit Control Act of 1985 for that fiscal year by an amount equal to 10 percent of the total budget authority provided for that account in the most recently enacted applicable appropriation Act.

(d) Reports - Subsection (d) of section 3357 of title 31, United States Code, is amended to read as follows:

(d) Reports

(1) In general - For each fiscal year beginning in the first fiscal year after the date of the enactment of this subsection, and in each of the following 9 fiscal years, the head of each agency shall submit to Congress, in the report containing the annual financial statement of the agency, a report on the following:

(A) - The progress of the agency in the following:

(i) - The implementation of the following:

(I) - The financial and administrative controls required to be established under subsection (c)(1).

(II) - The fraud risk principles in the Standards for Internal Control in the Federal Government of the Government Accountability Office.

(III) - Circular A–123 of the Office of Management and Budget with respect to the leading practices for managing fraud risk.

(ii) - The identification of fraud risks and vulnerabilities, including with respect to payroll, beneficiary payments, grants, large contracts, and purchase and travel cards.

(iii) - The establishment of strategies, procedures, and other steps to curb fraud.

(B) - Information on the status of implementing each of the 11 leading practices identified in the report published by the Government Accountability Office on July 28, 2015, entitled "Framework for Managing Fraud Risks in Federal Programs".

(2) Fulfillment of reporting requirement - If the annual financial statement of an agency, or an alternative report of the agency included in the annual financial statement, includes information that fulfills the requirements of this subsection, the head of the agency may include a brief statement to that effect in the financial statement or alternative report without duplicating the information required under this subsection in a separate or standalone report.

(e) Greater State Investment in Payment Integrity Systems

(1) In general - Chapter 33 of title 31, United States Code, is amended by adding at the end the following new section:

3359. Greater use of payment integrity tools by States

(a) Increasing use of payment integrity tools by State administrators

(1) In general - Any State that receives funding in a program described under paragraph (2) shall use each applicable payment integrity tool published pursuant to paragraph (3) and submit a report on the effectiveness of each such tool in accordance with subsection (b).

(2) Programs - The programs described under this paragraph include the following:

(A) - The program of block grants to States for temporary assistance for needy families under part A of title IV of the Social Security Act.

(B) - The Medicaid program under title XIX of the Social Security Act.

(D) - The Federal-State unemployment compensation program under titles III, IX, and XII of the Social Security Act.

(E) - The special supplemental nutrition program for women, infants, and children established by section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786).

(3) Payment integrity tools - The Director of the Office of Management and Budget shall publish a list of payment integrity tools that each State shall use to reduce overpayments.

(b) Certification of compliance - Not later than September 30 of each year, each State shall submit to the Director of the Office of Management and Budget a report that includes—

(1) - the usage by that State of payment integrity tools; and

(2) - an analysis on the effect of using payment integrity tools.

(c) Noncompliance - If a State does not use payment integrity tools as required by this section, that State shall remit payment to the Treasury for the total amount of overpayment in any program covered by this section.

(2) Clerical amendment - The table of sections for chapter 33 of title 31, United States Code, is amended by adding at the end the following item:

(3) Effective date - Section 3359 of title 31, United States Code, as added by paragraph (1), shall take effect on the date that is one year after the date of the enactment of this Act.

(f) Working system data sharing - Section 205(r)(11) of the Social Security Act is amended—

(1) - by striking "During the 3-year period that begins on the effective date of this paragraph, the" and inserting "The"; and

(2) - by striking "to prevent improper payments to deceased individuals" and inserting "for the authorized uses of the Do Not Pay working system".

119-HR1533

PIIA Reform Act