[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3221 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 3221
To reduce improper payments and eliminate waste in Federal programs,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 17, 2021
Mr. Braun introduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
_______________________________________________________________________
A BILL
To reduce improper payments and eliminate waste in Federal programs,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``IRS Improper Payments Act''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds that when the Federal Government
makes payments to individuals and businesses as beneficiaries,
grantees, or contractors, or on behalf of beneficiaries, of Federal
programs, the Federal Government must make every effort to confirm that
the right recipient is receiving the right payment for the right reason
at the right time.
(b) Purpose.--The purpose of this Act is to--
(1) reduce improper payments in the major programs
administered by the Federal Government--
(A) by intensifying efforts to eliminate payment
error, waste, fraud, and abuse in those programs; and
(B) continuing to ensure that Federal programs
serve and provide access to the intended beneficiaries
of those programs;
(2) adopt a comprehensive set of policies, including--
(A) transparency and public scrutiny of significant
improper payments throughout the Federal Government;
(B) a focus on identifying and eliminating the
highest improper payments;
(C) accountability for reducing improper payments
among agencies and officials of agencies; and
(D) coordinated action by the Federal Government
and State and local governments in identifying and
eliminating improper payments; and
(3) protect access to Federal programs by their intended
beneficiaries.
SEC. 3. TITLE 31 AMENDMENTS.
(a) In General.--Subchapter IV of chapter 33 of title 31, United
States Code, is amended--
(1) in section 3351--
(A) by redesignating paragraphs (4), (5), (6), (7),
and (8) as paragraphs (5), (6), (7), (8), and (10),
respectively;
(B) by inserting after paragraph (3) the following:
``(5) High-priority program.--The term `high-priority
program' means a Federal program identified by the Director of
the Office of Management and Budget under section
3359(a)(1).''; and
(C) by inserting after paragraph (8), as so
redesignated, the following:
``(9) High-priority program reduction target.--The term
`high-priority program reduction target' means a target for
reducing improper payments associated with a high-priority
program under section 3359(a)(2).''; and
(2) by adding at the end the following:
``Sec. 3359. Transparency and public participation
``(a) High Priority Programs.--Not later than 90 days after the
date of enactment of this section, the Director of the Office of
Management and Budget shall--
``(1) identify Federal programs in which the highest dollar
value or majority of Government-wide improper payments occur;
``(2) establish, in coordination with the head of each
executive agency responsible for administering a high-priority
program--
``(A) annual targets for reducing improper payments
associated with the high-priority program; or
``(B) if a target described in subparagraph (A)
exists as of the date of enactment of this Act,
supplemental targets for reducing improper payments
associated with the high-priority program; and
``(3) issue Government-wide guidance on the implementation
of this Act, including procedures for--
``(A) identifying and publicizing the list of
entities described in subsection (c)(2)(E); and
``(B) prior to publication, administratively
appealing the decision to publish the identity of those
entities.
``(b) Working Group.--
``(1) In general.--Not later than 90 days after the date of
enactment of this section, the Director of the Office of
Management and Budget shall establish a working group to be
known as the `High Priority Program Working Group' (referred to
in this section as the `Working Group').
``(2) Members.--The Working Group shall consist of
officials of the Federal Government and State and local
governments.
``(3) Recommendations.--Not later than 180 days after the
date of enactment of this section, the Working Group, in
coordination with Council of the Inspectors General on
Integrity and Efficiency, shall submit to the Director of the
Office of Management and Budget recommendations designed to
improve the measurement by the Federal Government of access to
Federal programs by the intended beneficiaries of those
programs.
``(c) Published High-Priority Program Information.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, and annually thereafter, the
Secretary of the Treasury, in coordination with the Attorney
General and the Director of the Office of Management and
Budget, shall publish on the internet information about
improper payments under high-priority programs.
``(2) Contents.--The information published under paragraph
(1) shall include, subject to Federal privacy policies and to
the extent permitted by law--
``(A) the names of the accountable officials
designated under section 3360(a);
``(B) rates and amounts as of the date of enactment
of this section, and historical rates and amounts, of
improper payments in Federal programs of the Internal
Revenue Service, including, if known and appropriate,
the causes of the improper payments;
``(C)(i) rates and amounts as of the date of
enactment of this section, and historical rates and
amounts, of the recovery of improper payments, where
appropriate; or
``(ii) for high-priority programs in which improper
payments are identified solely on the basis of a
sample, rates and amounts of the recovery of improper
payments estimated on the basis of the applicable
sample;
``(D) high-priority program reduction targets,
where appropriate; and
``(E) the entities that--
``(i) have received the greatest amount of
unreturned improper payments; and
``(ii) in Federal programs in which
improper payments are identified solely on the
basis of a sample, have received the greatest
amount of outstanding improper payments in the
applicable sample.
``(3) Measurements.--The Secretary of the Treasury may
include in the information published under paragraph (1) any
measurements included in the recommendations of the Working
Group submitted under subsection (b)(3).
``(4) Prohibition.--The information described in paragraph
(2)(E) may not include information relating to any referrals
the executive agency has made or anticipates making to the
Attorney General or any information provided in connection with
those referrals.
``(d) Collecting Information From the Public.--Not later than 180
days after the date of enactment of this section, the Secretary of the
Treasury, in coordination with the Attorney General and the Director of
the Office of Management and Budget and in consultation with the
Council of the Inspectors General on Integrity and Efficiency, shall
establish a central internet-based method to collect from the public
information relating to suspected incidents of waste, fraud, and abuse
by an entity receiving Federal funds that have led or may lead to
improper payments by the Federal Government.
``(e) Links.--The head of each executive agency shall prominently
display on the homepage of the website of the executive agency a link
to internet-based resources for addressing improper payments, including
the information published under subsection (c)(1) and the internet-
based method established under subsection (d).
``Sec. 3360. Agency accountability and coordination
``(a) Accountable Officials.--Not later than 120 days after the
date of enactment of this section, the head of each executive agency
that administers a high-priority program shall designate a Senate-
confirmed official of the executive agency to be accountable for
meeting the high-priority program reduction targets of the executive
agency without unduly burdening access to the high-priority program and
participation by eligible beneficiaries.
``(b) Second Official.--If an executive agency that administers a
high-priority program for which the majority of payments are
administered under a single component of the executive agency, the head
of the executive agency shall designate an official of that component,
who shall--
``(1) be responsible for program integrity activities; and
``(2) as appropriate, consolidate and coordinate each
program integrity activity of the component.
``(c) Report.--Not later than 180 days after the date of enactment
of this section, and annually thereafter, each executive agency
official who is designated by the Director of the Office of Management
and Budget under subsection (a) or otherwise shall provide the
inspector general of the executive agency served by the official a
report that includes--
``(1) the methodology of the executive agency for
identifying and measuring improper payments by each high-
priority program of the executive agency;
``(2) the plans of the executive agency and supporting
analysis for meeting high-priority program reduction targets;
and
``(3) the plans of the executive agency and supporting
analysis for ensuring that initiatives undertaken in accordance
with this subchapter do not unduly burden program access and
participation by eligible beneficiaries.
``(d) Duties of Inspector General.--Annually, the inspector general
shall, with respect to each high-priority program of the executive
agency--
``(1) assess the level of risk associated with the program;
``(2) determine the extent of oversight warranted; and
``(3) provide the head of the executive agency with
recommendations, if any, for modifying the methodology,
improper payment reduction plans, or program access and
participation plans of the executive agency.
``(e) Agency Failure.--
``(1) In general.--If an executive agency fails to meet the
high-priority program reduction targets of the executive agency
or implement the plans described in subsection (c)(3) for not
less than 2 consecutive years, the official of the executive
agency designated under subsection (a) shall submit to the head
of the executive agency, the inspector general of the executive
agency, and chief financial officer of the executive agency a
report that--
``(A) describe the likely causes of the failure;
and
``(B) proposes a remedial plan.
``(2) Review.--Annually, the head of an executive agency
described in paragraph (1) shall, with respect to a remedial
plan proposed under paragraph (1)(B)--
``(A) review the remedial plan; and
``(B) in consultation with the inspector general
and chief financial officer of the executive agency,
forward the remedial plan and any additional comments
and analysis to the Director of the Office of
Management and Budget.
``(f) CFOC Recommendations.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, the Chief Financial Officers
Council, in consultation with the Council of the Inspectors
General on Integrity and Efficiency, the Attorney General, and
Federal program experts, shall submit to the Director of the
Office of Management and Budget and the Secretary of the
Treasury recommendations on actions, including actions relating
to forensic accounting and audits, agencies should take to more
effectively tailor methodologies for identifying and measuring
improper payments to Federal programs, or components of Federal
programs, in which improper payments are most likely to occur.
``(2) Contents.--The recommendations submitted under
paragraph (1) shall address the manner in which the recommended
actions would affect program access and participation by
eligible beneficiaries.
``(g) Recommendations To Reduce Improper Payments.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, the Secretary of the Treasury and
the Director of the Office of Management and Budget, in
consultation with the Council of the Inspectors General on
Integrity and Efficiency, the Attorney General, and Federal
program experts, shall submit to the President recommendations
for actions designed to reduce improper payments by improving
information sharing among agencies and Federal programs, and
when applicable, State and local governments and other
stakeholders.
``(2) Contents.--The recommendations submitted under
paragraph (1) shall--
``(A) address the ways in which information sharing
may improve eligibility verification and pre-payment
scrutiny;
``(B) identify legal or regulatory impediments to
effective information sharing; and
``(C) address the manner in which the recommended
actions would affect Federal program access and
participation by eligible beneficiaries.
``(h) Report.--
``(1) In general.--Subject to Federal privacy policies and
to the extent permitted by law, not later than 180 days after
the date of enactment of this section, and not less frequently
than quarterly thereafter, the head of each executive agency
shall submit to the inspector general of the executive agency
and the Council of the Inspectors General on Integrity and
Efficiency, and make available to the public, a report on any
high-dollar improper payments identified by the executive
agency.
``(2) Contents.--The report required under paragraph (1)--
``(A) shall describe any actions that the executive
agency--
``(i) has taken or plans to take to recover
improper payments; and
``(ii) intends to take to prevent improper
payments from occurring in the future; and
``(B) may not include any referrals the executive
agency made or anticipates making to the Attorney
General or any information provided in connection with
those referrals.
``(3) Review.--Not later than 60 days after the date on
which the head of an executive agency submits a report under
paragraph (1), the inspector general of each executive agency
and the Council of the Inspectors General on Integrity and
Efficiency shall--
``(A) assess the level of risk associated with the
Federal program under which a high-dollar improper
payment described in paragraph (1) was made;
``(B) determine the extent of oversight of the
Federal program described in subparagraph (A) that is
warranted; and
``(C) provide the head of the executive agency with
recommendations, if any, for modifying the plans of the
executive agency.
``Sec. 3361. Enhanced focus on contractors and working with State and
local stakeholders
``(a) Enhanced Focus on Contractors.--Not later than 180 days after
the date of enactment of this section, the Federal Acquisition
Regulatory Council, in coordination with the Director of the Office of
Management and Budget and in consultation with the National Procurement
Fraud Task Force (or its successor group), the Council of the
Inspectors General on Integrity and Efficiency, and appropriate
executive agency officials, shall recommend to the President actions
designed to enhance contractor accountability for improper payments,
which may include subjecting contractors to debarment, suspension,
financial penalties, and identification through a public internet
website, subject to Federal privacy policies and to the extent
permitted by law and where the identification would not interfere with
or compromise an ongoing criminal or civil investigation, for knowingly
failing timely to disclose credible evidence of significant
overpayments received under Federal contracts.
``(b) Working Group for Audits.--
``(1) In general.--Not later than 30 days after the date of
enactment of this section, the Director of the Office of
Management and Budget shall establish a working group to be
known as the `Auditing Working Group'.
``(2) Members.--The working group established under
paragraph (1) shall consist of officials of the Federal
Government and elected officials of State and local
governments.
``(3) Chair.--The Director of the Office of Management and
Budget may designate an appropriate official to serve as the
Chair of the working group established under paragraph (1) to
convene the meetings and direct the work of the working group.
``(4) Duties.--Not later than 180 days after the date of
enactment of this section, the working group established under
paragraph (1), in coordination with the Council of the
Inspectors General on Integrity and Efficiency, shall submit to
the Director of the Office of Management and Budget
recommendations designed to improve the effectiveness of single
audits of State and local governments and nonprofit
organizations that expend Federal funds.
``(5) Contents.--The recommendations required under
paragraph (4) shall address--
``(A) the effectiveness of the audits described in
that paragraph in identifying improper payments; and
``(B) opportunities to streamline or eliminate
single audit requirements in situations in which the
value of those requirements is minimal.
``(c) Working Group for Accountability.--
``(1) In general.--Not later than 30 days after the date of
enactment of this section, the Director of the Office of
Management and Budget shall establish a working group, which
may be a component of the working group established under
subsection (b), to be known as the `Accountability Working
Group'.
``(2) Members.--The working group established under
paragraph (1) shall consist of officials of the Federal
Government and elected officials of State and local
governments.
``(3) Chair.--The Director of the Office of Management and
Budget may designate an appropriate official to serve as the
Chair of the working group established under paragraph (1) to
convene the meetings and direct the work of the working group.
``(4) Duties.--Not later than 180 days after the date of
enactment of this section, the working group established under
paragraph (1), in consultation with the Council of the
Inspectors General on Integrity and Efficiency, shall submit to
the Director of the Office of Management and Budget
recommendations for administrative actions designed to improve
the incentives and accountability of State and local
governments and other entities receiving Federal funds for
reducing improper payments.
``Sec. 3362. Policy proposals
``(a) In General.--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 heads of appropriate agencies and the
Council of the Inspectors General on Integrity and Efficiency, shall
develop policy recommendations, including potential legislative
proposals, designed to reduce improper payments, including improper
payments caused by error, waste, fraud, and abuse, across Federal
programs without compromising program access.
``(b) Inclusion.--The recommendations developed under subsection
(a) shall be included, as appropriate, in the budget of the President
under section 1105(a) of title 31, United States Code for fiscal year
2023 and each fiscal year thereafter.''.
(b) Clerical Amendment.--The table of sections for subchapter IV of
chapter 33 of title 31, United States Code, is amended by adding at the
end the following:
``3359. Transparency and public participation.
``3360. Agency accountability and coordination.
``3361. Enhanced focus on contractors and working with State and local
stakeholders.
``3362. Policy proposals.''.
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