31 U.S.C. § 3354 — Do Not Pay Initiative

Page 265 TITLE 31—MONEY AND FINANCE § 3354 Accountability of House of Representatives by House Resolution No. 5, One Hundred Eighteenth Congress, Jan. 9, 2023. § 3354. Do Not Pay Initiative (a) PREPAYMENT AND PREAWARD PROCEDURES.— (1) IN GENERAL.—Each executive agency shall review prepayment and preaward procedures and ensure that a thorough review of available databases with relevant information on eligi- bility occurs to determine program or award eligibility and prevent improper payments be- fore the release of any Federal funds. (2) DATABASES.—At a minimum and before issuing any payment or award, each executive agency shall review as appropriate the fol- lowing 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 Gen- eral Services Administration. (C) The Debt Check Database of the De- partment of the Treasury. (D) The Credit Alert System or Credit Alert Interactive Voice Response System of the Department of Housing and Urban Devel- opment. (E) The List of Excluded Individuals/Enti- ties of the Office of Inspector General of the Department of Health and Human Services. (F) Information regarding incarcerated in- dividuals 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 sub- section (a)(2); and (B) 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 designa- tions of other databases under paragraph (1)(B), the Director of the Office of Manage- ment and Budget, or the head of any executive agency designated by the Director, shall— (A) consider any database that substan- tially assists in preventing improper pay- ments; and (B) provide public notice and an oppor- tunity for comment before designating a database under paragraph (1)(B). (3) ACCESS AND REVIEW.— (A) IN GENERAL.—For purposes of identi- fying 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 ac- cordance with subsection (a). (B) MATCHING PROGRAMS.— (i) IN GENERAL.—The head of the agency operating the Working System may, in consultation with the Office of Manage- ment and Budget, waive the requirements of section 552a(o) of title 5 in any case or class of cases for computer matching ac- tivities conducted under this section. (ii) GUIDANCE.—The Director of the Of- fice 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-admin- istered program, and the judicial and legisla- tive branches of the United States, as de- fined 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) CONSISTENCY WITH PRIVACY ACT OF 1974.—To ensure consistency with the prin- ciples of section 552a of title 5 (commonly known as the ‘‘Privacy Act of 1974’’), the Di- rector 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 ac- cess 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 sec- tion 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 cir- cumstances under which the law requires a payment or award to be made to a recipient, regardless of whether that recipient is identi- fied as potentially ineligible under the Do Not Pay Initiative. (5) ANNUAL REPORT.—The Director of the Of- fice 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 op- eration of the Do Not Pay Initiative, which shall— (A) 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) shall continue to be in effect on and after the date of enactment of this section; and (2) shall require each executive agency to re- view 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.— Page 266 TITLE 31—MONEY AND FINANCE § 3354 1 See References in Text note below. (1) COMPUTER MATCHING BY EXECUTIVE AGEN- CIES FOR PURPOSES OF INVESTIGATION AND PRE- VENTION OF IMPROPER PAYMENTS AND FRAUD.— (A) IN GENERAL.—Except as provided in this paragraph, in accordance with section 552a of title 5 (commonly known as the ‘‘Pri- vacy Act of 1974’’), the head of each execu- tive agency may enter into computer match- ing agreements with other heads of execu- tive agencies that allow ongoing data matching, which shall include automated data matching, in order to assist in the de- tection and prevention of improper pay- ments. (B) REVIEW.—Not later than 60 days after the date on which a proposal for an agree- ment under subparagraph (A) has been pre- sented to a Data Integrity Board established under section 552a(u) of title 5 for consider- ation, the Data Integrity Board shall re- spond to the proposal. (C) TERMINATION DATE.—An agreement de- scribed 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 sched- uled to terminate, may be renewed by the executive agencies entering the agreement for not more than 3 years. (D) 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 gov- erning multiple agencies’’ for ‘‘between the source agency and the recipient agency or non-Federal agency’’ in the matter pre- ceding subparagraph (A). (E) COST-BENEFIT ANALYSIS.—A justifica- tion under section 552a(o)(1)(B) of title 5 re- lating to an agreement under subparagraph (A) is not required to contain a specific esti- mate 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 Pay- ments Elimination and Recovery Improve- ment Act of 2012, as in effect on the day before the date of enactment of this section— (A) shall continue to be in effect on and after the date of enactment of this section; and (B) may be modified as determined appro- priate by the Director of the Office of Man- agement and Budget. (3) 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 indi- vidual or entity under this subsection is pro- vided 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 ex- ecutive agency in coordination with an In- spector General under section 6(j) of the In- spector General Act of 1978 (5 U.S.C. App.).1 (e) PLAN TO CURB FEDERAL IMPROPER PAY- MENTS TO DECEASED INDIVIDUALS BY IMPROVING THE QUALITY AND USE BY FEDERAL AGENCIES OF THE SOCIAL SECURITY ADMINISTRATION DEATH MASTER FILE AND OTHER DEATH DATA.— (1) ESTABLISHMENT.—In conjunction with the Commissioner of Social Security and in con- sultation 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 con- duct a study and update the plan required to be established under section 5(g) of the Im- proper Payments Elimination and Recovery Improvement Act of 2012, as in effect on the day before the date of enactment of this sec- tion, for improving the quality, accuracy, and timeliness of death data maintained by the Social Security Administration, including death information reported to the Commis- sioner under section 205(r) of the Social Secu- rity Act (42 U.S.C. 405(r)). (2) 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 execu- tive agencies for determining ineligible pay- ments 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 Di- rector of the Office of Management and Budget shall submit a report to Congress on the plan described in this subsection, including rec- ommended legislation. (Added Pub. L. 116–117, § 2(a), Mar. 2, 2020, 134 Stat. 126.) Editorial Notes REFERENCES IN TEXT Section 5 of the Improper Payments Elimination and Recovery Improvement Act of 2012, referred to in sub- secs. (c), (d)(2), and (e)(1), is section 5 of Pub. L. 112–248, which was formerly set out in a note under section 3321 of this title, prior to repeal by Pub. L. 116–117, § 3(a)(3), Mar. 2, 2020, 134 Stat. 133. The date of enactment of this section, referred to in subsecs. (c), (d)(2), and (e)(1), (3), is the date of enact- ment of Pub. L. 116–117, which was approved Mar. 2, 2020. Section 6(j) of the Inspector General Act of 1978, re- ferred to in subsec. (d)(4)(B), is section 6(j) of Pub. L. Page 267 TITLE 31—MONEY AND FINANCE § 3357 95–452, which was set out in the Appendix to Title 5, Government Organization and Employees, and was re- pealed and restated as section 406(j) of Title 5 by Pub. L. 117–286, §§ 3(b), 7, Dec. 27, 2022, 136 Stat. 4224, 4361. § 3355. Improving recovery of improper payments The 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 ap- plicable 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 pay- ments, including specific information on amounts and payments recovered by recovery audit contractors. (Added Pub. L. 116–117, § 2(a), Mar. 2, 2020, 134 Stat. 130.) § 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 DEPART- MENT OF DEFENSE.—The procedure required to be established under section 7(a) of the Improper Payments Elimination and Recovery Improve- ment Act of 2012, as in effect on the day before the date of enactment of this section— (1) shall continue to be in effect on and after the date of enactment of this section; and (2) may be modified as determined appro- priate by the Director of the Office of Manage- ment 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 Man- agement shall establish a procedure under which the Secretary and the Director— (1) shall promptly and on a regular basis sub- mit information relating to the deaths of indi- viduals, 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 execu- tive agencies for that purpose. (c) GUIDANCE TO EXECUTIVE AGENCIES REGARD- ING DATA ACCESS AND USE FOR IMPROPER PAY- MENTS PURPOSES.—The guidance required to be issued under section 7(b) of the Improper Pay- ments Elimination and Recovery Improvement Act of 2012, as in effect on the day before the date of enactment of this section— (1) shall continue to be in effect on and after the date of enactment of this section; and (2) may be modified as determined appro- priate by the Director of the Office of Manage- ment and Budget. (Added Pub. L. 116–117, § 2(a), Mar. 2, 2020, 134 Stat. 130.) Editorial Notes REFERENCES IN TEXT The date of enactment of this section, referred to in text, is the date of enactment of Pub. L. 116–117, which was approved Mar. 2, 2020. Section 7 of the Improper Payments Elimination and Recovery Improvement Act of 2012, referred to in sub- secs. (a) and (c), is section 7 of Pub. L. 112–248, which was formerly set out in a note under section 3321 of this title, prior to repeal by Pub. L. 116–117, § 3(a)(3), Mar. 2, 2020, 134 Stat. 133. § 3357. Financial and administrative controls re- lating 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 Re- duction and Data Analytics Act of 2015, as in ef- fect on the day before the date of enactment of this section— (1) shall continue to be in effect on and after the date of enactment of this section; and (2) may be periodically modified by the Di- rector of the Office of Management and Budg- et, in consultation with the Comptroller Gen- eral of the United States, as the Director and Comptroller General may determine nec- essary. (c) REQUIREMENTS FOR CONTROLS.—The guide- lines described in subsection (b) shall include— (1) conducting an evaluation of fraud risks and using a risk-based approach to design and implement financial and administrative con- trol activities to mitigate identified fraud risks; (2) collecting and analyzing data from re- porting mechanisms on detected fraud to mon- itor fraud trends and using that data and in- formation to continuously improve fraud pre- vention controls; and (3) using the results of monitoring, evalua- tion, 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 agen- cy, a report of the agency on— (1) implementing— (A) the financial and administrative con- trols described in subsection (b); (B) the fraud risk principle in the Stand- ards for Internal Control in the Federal Gov- ernment published by the Government Ac- countability Office (commonly known as the ‘‘Green Book’’); and (C) Office of Management and Budget Cir- cular A–123, or any successor thereto, with respect to the leading practices for man- aging fraud risk; (2) identifying risks and vulnerabilities to fraud, including with respect to payroll, bene-