,i #aagth ,,congress #b;d ,session ,h4 ,r4 #hcbb ,,in ,,the ,,house ,,of ,,representatives ,july #aa1 #bjbb,mr4 ,connolly introduced the following bill2 which was referred to the ,committee on ,oversight and ,reform ,a ,,bill ,to amend title #ca1 ,united ,states ,code1 to establish the ,federal ,real ,anti-fraud ,unified ,directorate1 to require agencies implement anti-fraud controls for programs susceptible to significant improper payments and high-priority programs1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,strengthening ,tools to ,obstruct and ,prevent ,fraud ,act of #bjbb or the ,,stop ,fraud ,act4 #b4 ,federal ,real ,anti-fraud ,unified ,directorate ,subchapter ,i of chapter #e of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 #ejh4 ,federal ,real ,anti-fraud ,unified ,directorate 7a7 ,establishment 7#a7 ,in general ,there is established within the ,office of ,management and ,budget an office to be known as the ,federal ,real ,anti-fraud ,unified ,directorate or the ,,fraud4 7#b7 ,administrator ,there shall be at the head of the ,,fraud an ,administrator who shall be-- 7,a7 appointed by the ,president2 and 7,b7 compensated at the rate of pay in effect for level ,,iii of the ,executive ,schedule under section #ecad4 7b7 ,duties ,the ,administrator shall do the following3 7#a7 ,carry out the duties prescribed to the ,administrator under section #ccfj4 7#b7 ,coordinate activities related to reducing and preventing fraud and improper payments-- 7,a7 sharing leading practices and tools with agencies2 7,b7 providing technical assistance to agencies in implementing the fraud risk management activities described in the ,,gao ,fraud ,risk ,management ,framework2 and 7,c7 assisting agencies in the collection and use of data1 including by assisting agencies in-- 7i7 working to overcome data sharing barriers2 and 7ii7 establishing metrics and methodologies to measure the effectiveness of programs and activities employed by agencies to prevent and reduce fraud and improper payments4 7#c7 ,establish an online1 publicly accessible dashboard on the implementation of proactive analytics in programs designated as susceptible to significant improper payments under section #ccei that-- 7,a7 promotes transparency2 7,b7 assists in the oversight of the implementation of proactive analytics in such programs2 and 7,c7 tracks cost savings1 cost avoidance1 and the administrative burden attributable to such programs4 7#d7 ,refer any fraud1 waste1 or abuse discovered by the ,administrator to the appropriate ,inspector ,general4 7#e7 ,carry out any additional duties that may be prescribed by the ,director4 7c7 ,additional authorities ,the ,administrator may-- 7#a7 require agencies administering programs susceptible to significant improper payments to submit information as may be necessary to administer the dashboard required to be established by subsection 7b77#c71 and promulgate regulations that set standards for-- 7,a7 the type of information to be submitted2 and 7,b7 the format in which such information is to be submitted2 7#b7 provide technical assistance to agencies administering a high-priority program1 including by-- 7,a7 working on behalf of an agency administering the program to overcome any issues that prevent the agency from receiving or using data from other governmental and non-governmental entities1 including by notifying ,congress on behalf of the agency of any ,federal laws that prevent the agency from receiving or using such data2 7,b7 facilitating the collection of real-time data to implement proactive analytics1 including by-- 7i7 identifying governmental or commercial solutions to facilitate such collection2 and 7ii7 supporting the agency in identifying potential sources of funding to facilitate such collection2 7,c7 providing non-reimbursable or reimbursable services to agencies administering the programs2 and 7,d7 identifying strategies that may help the program hire individuals with the requisite skills to implement proactive analytics2 and 7#c7 refer any fraud1 waste1 or abuse discovered by the ,administrator to the appropriate ,inspector ,general4 7d7 ,definitions ,in this section1 the terms administrative burden1 agency administering a high-priority program1 agency administering a program susceptible to significant improper payments1 anti-fraud control1 data1 and proactive analytics have the meanings given those terms in section #ccfj4 4 #c4 ,anti-fraud controls for programs susceptible to significant improper payments and high-priority programs ,subchapter ,,iv of chapter #cc of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 #ccei4 ,proactive analytics with respect to programs susceptible to significant improper payments 7a7 ,designation of programs susceptible to significant improper payments ,not later than ,october #a of each year1 for that fiscal year and the next fiscal year1 the head of each executive agency shall designate as a program susceptible significant improper payments each program that meets the following criteria3 7#a7 ,with respect any program of the agency established during the preceding two fiscal years1 any such program making more than #ajj1jjj1jjj in payments in any one fiscal year4 7#b7 ,for any program of the agency not established during the preceding two fiscal years1 any such program that had outlays that exceeded #a1ejj1jjj1jjj in the preceding fiscal year4 7b7 ,implementation of proactive analytics for high-,risk area ,an agency administering a program susceptible to significant improper payments shall implement proactive analytics for one high-risk area of the program4 7c7 ,reports on ,actions ,to reduce improper payments ,not later than two years after a head of an agency has designated a program as susceptible to improper payments1 the head of the agency administering the program shall submit a report on efforts of the agency to reduce and prevent improper payments and fraud with respect to the program1 including the following3 7#a7 ,with respect to a program that is not a high-priority program at the time of the submission of the report1 the following3 7,a7 ,a description of the proactive analytics implemented in the two fiscal years preceding the submission of the report to reduce improper payments and fraud with respect to such program4 7,b7 ,metrics demonstrating the effectiveness of the proactive analytics implemented4 7,c7 ,an analysis of whether the agency anticipates the program will remain susceptible to improper payments and require continued designation as such4 7,d7 ,a plan for-- 7i7 continuing to use proactive analytics with respect to that program2 7ii7 improving the proactive analytics used with respect to that program2 and 7iii7 identifying1 in consultation with the ,administrator of the ,,fraud1 additional fraud and improper payment mitigation strategies1 that could be employed by the agency if the program is redesginated as a program susceptible to significant improper payments4 7#b7 ,with respect to a program that is a high-priority program at the time of the submission of the report1 the following3 7,a7 ,a copy of the plan approved under section #ccei for the program4 7,b7 ,analysis of whether implementation of that plan has reduced and prevented improper payments and fraud4 7,c7 ,if the plan has not reduced or prevented improper payments or fraud-- 7i7 an explanation of why the plan has not reduced or prevented improper payments or fraud2 and 7ii7 a new plan with a different strategy developed in consultation with the ,administrator of the ,,fraud1 to reduce or prevent improper payments or fraud4 7,d7 ,a statement of whether the agency has what is needed with respect to internal controls1 human capital1 and information systems and other infrastructure1 to implement the requirements described in sections #ccei and #ccfj4 7,e7 ,estimates of-- 7i7 any costs avoided and dollars saved by the implementation of sections #ccei and #ccfj2 7ii7 any change in administrative burden because of the implementation of sections #ccei and #ccfj2 and 7iii7 the number of persons eligible to obtain a thing of value that did not receive such thing of value because of the implementation of sections #ccei and #ccfj4 7#c7 ,whether the information technology 7as defined in section #aaaja of title #dj7 used by the agency with respect to the program is capable of delivering real-time data-- 7,a7 to the ,administrator of the ,,fraud for inclusion in the dashboard required to be established by section #ejh7;b77#c72 and 7,b7 for the purpose of implementing proactive analytics1 as required under section #ccei and #ccfj4 7#d7 ,a description of the quality of any improper payment estimates and methodology of the agency relating to the program1 including-- 7,a7 challenges to accurately estimating improper payments for the program2 and 7,b7 plans to improve the quality of the estimates4 #ccfj4 ,anti-fraud controls for high-priority programs 7a7 ,designation ,by ,january #ca of each fiscal year1 the ,administrator shall designate for the remainder of that fiscal year and the next full fiscal year1 any program with outlays in an amount equal to or in excess of #ej1jjj1jjj1jjj with respect to the preceding fiscal year as a high-priority program4 7b7 ,plan ,to implement anti-,fraud policy for each high-,priority program 7#a7 ,plan ,the head of an agency administering a high-priority program shall develop a plan to implement anti-fraud controls for that program1 that-- 7,a7 at a minimum includes a plan to use-- 7i7 any solution that verifies and authenticates identity1 known as digital identity-proofing solutions1 if determined necessary by the ,administrator to effectively reduce and prevent fraud and improper payments in the high-priority program2 7ii7 threat intelligence1 including open source intelligence and intelligence collected from locations on the internet referred to as the deep web and dark web1 to identify and mitigate emerging fraud threats2 and 7iii7 proactive analytics2 and 7,b7 takes into consideration the administrative burden of implementing such anti-fraud controls1 including considering the fraud risk profile 7as defined in the study of the ,government ,accountability ,office titled ,framework for ,managing ,fraud ,risks in ,federal ,programs7 of the program4 7#b7 ,initial submission of plan to ,administrator for approval 7,a7 ,initial submission ,not later than #ij days after the date on which a program is designated as a high-priority program under subsection 7a71 the agency administering the high-priority program shall submit to the ,administrator the plan developed under paragraph 7#a74 7,b7 ,approval or denial of plan ,not later than #fj days after the date on which the plan is submitted pursuant to subparagraph 7,a71 the ,administrator shall approve or deny such plan4 7#c7 ,resubmission of plan to ,administrator for approval in case of denial 7,a7 ,in general ,an agency that submits a plan that is denied by the ,administrator under paragraph 7#b7 shall1 until such time as the ,administrator approves the plan-- 7i7 revise the plan2 and 7ii7 submit the plan as revised under clause 7i7 to the ,administrator4 7,b7 ,approval or denial of revised plan ,the ,administrator shall approve or deny a plan submitted under subparagraph 7,a7 not later than #fj days after the ,administrator receives the plan4 7,c7 ,technical assistance ,the ,administrator may provide technical assistance to any agency required to revise a plan under subparagraph 7,a74 7#d7 ,criteria for the approval or denial of plan ,not later than ,january #ca of each year1 the ,administrator shall provide to each agency administering a high-priority program criteria on the basis of which the ,administrator will approve or deny a plan under this subsection4 7#e7 ,report to ,congress ,an agency required to submit a plan for approval under this subsection with respect a high-priority program1 and has such plan denied by the ,administrator three times1 shall submit a report to ,congress on why the plan has not been approved by the ,administrator4 7c7 ,program ,integrity ,fund 7#a7 ,establishment ,there is established in the ,treasury of the ,united ,states a fund to be known as the ,program ,integrity ,fund4 7#b7 ,use of ,fund ,amounts in the fund may be allocated by the ,administrator to agencies to implement plans approved by the ,administrator under subsection 7b74 7#c7 ,management of the ,program ,integrity ,fund 7,a7 ,application process ,not later than #ij days after the date of the enactment of this paragraph1 the ,administrator shall-- 7i7 establish a process through which the head of an agency may request that funds be allocated from the ,program ,integrity ,fund to the agency2 and 7ii7 submit to ,congress a report that describes the process established pursuant to clause 7i74 7,b7 ,award of funds ,in determining the amount1 if any1 of funds to be allocated to an agency from the ,program ,integrity ,fund under paragraph 7#b71 the ,administrator shall consider the extent to which the plan approved by the ,administrator under subsection 7b7 of the agency-- 7i7 implements the use of proactive analytics2 7ii7 is likely to significantly reduce or prevent improper payments and fraud2 and 7iii7 considers the administrative burden of implementing the plan1 including whether there is a clear indication that the agency considered whether there are any anti-fraud controls other than the anti-fraud controls to be implemented under the plan that could be implemented by the agency with less of an administrative burden on individuals who interact with the program4 7#d7 ,authorization of appropriations ,there are authorized to be appropriated #a1jjj1jjj1jjj for fiscal year #bjbc for the ,program ,integrity ,fund1 to remain available until expended4 7d7 ,definitions ,in this section3 7#a7 ,administrator ,the term ,administrator means the ,administrator of the ,,fraud4 7#b7 ,administrative burden ,the term administrative burden means a cost that a person incurs in interacting with the agency to obtain a thing of value from the agency1 including the following3 7,a7 ,the amount of time and effort expended by the person to learn about-- 7i7 the nature of the thing of value2 and 7ii7 how to gain access to the thing of value1 including-- 7,i7 any program or service of the agency through which the person may obtain the thing of value from the agency2 and 7,,ii7 any requirement and condition that must be satisfied for the person to obtain and maintain possession of the thing of value from the government program or service4 7,b7 ,the amount of time it takes to-- 7i7 provide information and documentation to satisfy requirements to obtain and maintain possession of the thing of value2 and 7ii7 respond to discretionary requests of program administrators for the purpose of obtaining and maintaining possession of the thing of value4 7,c7 ,any financial cost to access services that may be necessary to receive the thing of value 7such as fees1 legal representation1 and travel costs74 7#c7 ,agency administering a program susceptible to significant improper payments ,the term agency administering a program susceptible to significant improper payments means an agency that is responsible for administering at least one program that is designated as susceptible to significant improper payments under section #ccei4 7#d7 ,agency administering a high-priority program ,the term agency administering a high-priority program means an agency that is responsible for administering at least one program that is designated as high-priority under this section4 7#e7 ,anti-fraud control ,the term anti-fraud control means a process1 system1 or technology that can be implemented to prevent fraud and improper payments4 7#f7 ,data ,the term data has the meaning given the term in section #cejb of title #dd4 7#g7 ,device metadata ,the term device metadata means structural or descriptive data about a connected device 7as defined in section #ijb7;a7 of the ,consolidated ,appropriations ,act1 #bjba 7#dg ,u4,s4,c4 #acjf7;a7771 such as data about the type1 model1 ,,ip address1 and geolocation of the device4 7#h7 ,fraud ,the term fraud means obtaining a thing of value through willful misrepresentation4 7#i7 ,proactive analytics ,the term proactive analytics means the collection and analysis of data 7including data that is device metadata1 administrative data controlled by the agency1 and data from other governmental and non-governmental sources7 to prevent fraud and improper payments from occurring1 including by identifying anomalous or suspicious patterns that might warrant further investigation4 4 #d4 ,amendments related to improper payments provisions 7a7 ,in general ,chapter #cc of subtitle ,,iii of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in section #ccea-- 7,a7 in paragraph 7#b71 by adding at the end the following3 7,d7 has satisfied the requirements of section #ccfj with respect to each high-priority program administered by the agency2 and 7,e7 has implemented proactive analytics for one high-risk area in accordance with section #ccei7;b74 2 7,b7 by redesignating paragraphs 7#d71 7#e71 7#f71 7#g71 and 7#h7 as paragraphs 7#e71 7#f71 7#h71 7#i71 and 7#aj71 respectively2 7,c7 by inserting after paragraph 7#c7 the following3 7#d7 ,high-,priority ,program ,the term high-priority program means a program designated under section #ccfj7;a74 2 and 7,d7 by inserting after paragraph 7#f71 as so redesignated1 the following3 7#g7 ,program susceptible to significant improper payments ,the term program susceptible to significant improper payments means a program designated under section #ccei7;a74 2 7#b7 in section #cceb-- 7,a7 by striking subsections 7a71 7b71 7d71 and 7e72 7,b7 by redesignating subsections 7c71 7f71 7g71 7h71 and 7i7 as subsections 7a71 7b71 7c71 7d71 and 7e71 respectively2 7,c7 in subsection 7a77#a71 as so redesignated1 by striking ,with respect to each program and activity identified under subsection 7a77#a71 the head of the relevant executive agency shall and inserting ,with respect to each program or activity with outlays exceeding #a1ejj1jjj1jjj1 the head of the relevant executive agency shall82 7,d7 in subsection 7b77#b71 as so redesignated-- 7i7 in subparagraph 7,a71 by striking and recovery actions2 7ii7 in subparagraph 7,d71 by striking 2 and and inserting a semicolon2 7iii7 in subparagraph 7,e71 by striking the period at the end and inserting 2 and2 and 7iv7 by inserting after subparagraph 7,e71 the following3 7,f7 ,governmentwide-- 7i7 any cost avoided by implementing sections #ccei and #ccfj2 7ii7 any change in administrative burden by implementing sections #ccei and #ccfj2 and 7iii7 the number of persons eligible to obtain a thing of value that did not receive such thing of value because of the implementation of sections #ccei and #ccfj4 2 and 7,e7 in subsection 7e71 as so redesignated-- 7i7 in paragraph 7#a77;,a71 by striking shall and inserting may2 7ii7 by striking paragraph 7#c72 7iii7 by redesignating paragraphs 7#d7 and 7#e7 as paragraphs 7#c7 and 7#d71 respectively2 and 7iv7 in paragraph 7#d71 as so redesignated1 by striking paragraph 7#d7 and inserting paragraph 7#c72 7#c7 in section #ccec7;a7-- 7,a7 by striking ,annual before ,compliance2 and 7,b7 in paragraph 7#a71 by striking ,each fiscal year and inserting ,not less frequently than once every #c fiscal years2 7#d7 by striking section #ccee2 and 7#e7 by amending section #cceg7;d7 to read as follows3 7d7 ,reports ,for each fiscal year1 the head of each agency shall submit to ,congress1 in the report containing the annual financial statement of the agency1 a report that includes the following3 7#a7 ,the progress of the agency in-- 7,a7 implementing-- 7i7 the financial and administrative controls required to be established under subsection 7c72 7ii7 the fraud risk principles in the standards established by the ,government ,accountability ,office in the ,standards for ,internal ,control in the ,federal ,government 7commonly known as the ,green ,book72 and 7iii7 the requirements in the ,office of ,management and ,budget ,circular ,a-#abc with respect to the leading practices for managing fraud risk2 7,b7 identifying fraud risks and vulnerabilities1 including with respect to payroll1 beneficiary payments1 grants1 large contracts1 and purchase and travel cards2 and 7,c7 establishing strategies1 procedures1 and other steps to curb fraud4 7#b7 ,in accordance with the report of the ,government ,accountability ,office titled ,framework for ,managing ,fraud ,risks in ,federal ,programs11 published on ,july #bh1 #bjae1 the following3 7,a7 ,an identification of-- 7i7 the entity of the agency and the personnel of the entity dedicated to leading the fraud risk management activities of the agency2 7ii7 roles and responsibilities of the personnel of such entity1 including any program or operation for which the personnel is responsible for overseeing2 7iii7 capacity1 including any limitation1 of such entity to strategically manage fraud risks2 and 7iv7 any program or operation for which there is not personnel dedicated to leading fraud risk management activities1 along with a detailed justification for why the agency does not have an dedicated personnel to lead fraud risk management activities4 7,b7 ,the status of the fraud risk profiles of each program and operation of the agency1 including-- 7i7 the date on which the profiles were last updated2 and 7ii7 the date on which the agency plans to next update the profile4 7,c7 ,any program or operation for which there is not a fraud risk profile1 along with a detailed justification for why such program or operation does not have a fraud risk profile4 7,d7 ,the status of any anti-fraud strategy for each program and operation of the agency1 including-- 7i7 the date on which any such strategy was last updated2 and 7ii7 the date on which the agency plans to next update each such strategy4 7,e7 ,any program or operation for which there is not any anti-fraud strategy1 along with a detailed justification for why there is not any anti-fraud strategy for such program or operation4 4 7b7 ,recovery of costs ,section #chjf7;g77#a7 of title #ca1 ,united ,states ,code1 is amended to read as follows3 7#a7 ,recovery of costs 7,a7 ,except as provided in paragraph 7#b7-- 7i7 any amount collected under this chapter or chapter #cc shall be used to reimburse any authority that obligated funds in support of efforts of the authority to reduce or prevent improper payments or fraud1 including prosecution of the action1 any court or hearing costs1 investments in information technologies1 or the hiring of additional staff related to such efforts2 and 7ii7 amounts reimbursed under clause 7i7 shall-- 7,i7 be deposited in-- 7aa7 the appropriations account of the authority from which the funds described in subparagraph 7,a7 were obligated2 7bb7 any other similar appropriations account of the authority2 or 7cc7 if the authority obligated nonappropriated funds1 an appropriate account other than any account under item 7aa7 or 7bb72 and 7,,ii7 remain available until expended4 7,b7 ,any amount remaining after reimbursements described in subparagraph 7,a7 shall be deposited as miscellaneous receipts in the ,treasury of the ,united ,states4 4 7c7 ,delegation to ,,fraud ,the ,director of the ,office of ,management and ,budget shall delegate to the ,administrator of the ,,fraud any function of the ,director under subchapter ,,iv of chapter #cc of title #ca1 ,united ,states ,code1 relating to the identification1 analysis1 and reduction of improper payments and fraud4 #e4 ,technical and conforming amendments 7a7 ,section #ccea ,section #ccea of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#b7-- 7,a7 in subparagraph 7,c71 by striking programs and activities identified and inserting programs described under2 7,b7 in subparagraph 7,f71 by striking section #cceb7;c7 and inserting section #cceb7;a72 7,c7 by striking subparagraphs 7,b71 7,d71 and 7,e72 and 7,d7 by redesignating subparagraphs 7,c7 and 7,f7 as subparagraphs 7,b7 and 7,c7 respectively2 and 7#b7 in paragraph 7#i71 by striking section #cceb7;i7 and inserting section #cceb7;e74 7b7 ,amendment to table of contents ,the table of contents for-- 7#a7 subchapter ,i of chapter #e of subtitle ,i of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 ,sec4 #ejh4 ,federal ,real ,anti-fraud ,unified ,directorate4 2 and 7#b7 subchapter ,,iv of chapter #cc of subtitle ,,iii of title #ca1 ,united ,states ,code1 is amended by-- 7,a7 striking the item related to section #ccee2 and 7,b7 adding at the end the following new item3 ,sec4 #ccei4 ,proactive analytics with respect to programs susceptible to significant improper payments4,sec4 #ccfj4 ,anti-fraud controls for high-priority programs4 4