,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #aecc  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,febru>y #bd1         
#bjbe,mr4 ,meus] introduc$ ! foll[+     
bill2 :i* 0 ref]r$ to ! ,committee on   
,ov]sight & ,gov]nm5t ,re=m1 & 9        
addition to ! ,committee on ,ways &     
,means1 = a p]iod to be subsequ5tly     
det]m9$ by ! ,speak]1 9 ea* case =      
consid]ation ( su* provisions z fall )9 
! jurisdiction ( ! committee conc]n$  ,a
 ,,bill  ,to am5d title #ca1 ,unit$     
,/ates ,code1 to e/abli% an ,ov]paym5t  
,cz>1 /r5g!n ov]sight & acc\ntability = 
improp] paym5ts1 & = o!r purposes4  #a4 
,%ort title ,?is ,act may be cit$ z !   
,,piia ,re=m ,act4  #b4 ,ov]paym5t ,cz> 
7a7 ,am5dm5t ,*apt] #e ( title #ca1     
,unit$ ,/ates ,code1 is am5d$ by ins]t+ 
aft] section #ejd ! foll[+ new section3 
#ejd;,a4 ,ov]paym5t ,cz>  7a7           
,e/abli%m5t ,!re is e/abli%$ )9 ! ,(fice
 ( ,f$]al ,f9ancial ,managem5t a        
,director ( ,improp] ,paym5t            
,mitigation1 to be ref]r$ to z !        

,ov]paym5t ,cz>-- 7#a7 "u ! direction & 
control ( ! ,controll]2  7#b7 :o %all be
 appo9t$ & may be remov$ by ! ,director2
 &  7#c7 :o %all receive a rate ( pay   
fix$ by ! ,director4  7b7 ,duties ,!    
,ov]paym5t ,cz>-- 7#a7 %all assi/       
executive ag5cies 9 ! id5tification1    
prev5tion1 & mitigation ( improp]       
paym5ts & fraud )9 ,f$]al programs2 &   
7#b7 %all develop & recomm5d /rategies t
 address improp] paym5t 9 executive     
ag5cy paym5ts2 &  7#c7 %all annually    
submit to ! ,controll] a report t       
proposes corrective actions to improve  
paym5t integrity & combat fraud         
effectively across ! ,f$]al ,gov]nm5t4  
7c7 ,au?ority ,to ,recomm5d ,policy     
,*anges ,! ,ov]paym5t ,cz> may recomm5d 
policy *anges to ! ,*ief ,f9ancial      
,(fic] ( any executive ag5cy to develop 
reliable e/imates ( improp] paym5ts4    
7d7 ,def9itions ,9 ?is section3 7#a7    
,controll] ,! t]m ,controll] means !    
,controll] ( ! ,(fice ( ,f$]al ,f9ancial
 ,managem5t4  7#b7 ,director ,! t]m     

,director means ! ,director ( ! ,(fice (
 ,managem5t & ,budget4  7#c7 ,improp]   
paym5t ,! t]m improp] paym5t has ! mean+
 giv5 t t]m 9 section #ccea4  4  7b7    
,te*nical & con=m+ am5dm5t ,! table (   
sections = *apt] #e ( title #ca1 ,unit$ 
,/ates ,code1 is am5d$ by ins]t+ aft] ! 
item = section #ejd ! foll[+ new item3  
,sec4 #ejd;,a4 ,ov]paym5t ,cz>4  4  #c4 
,am5dm5ts to f9ancial managem5t plan    
requirem5ts ,section #ceab7;a77#c7 (    
title #ca1 ,unit$ ,/ates ,code1 is      
am5d$-- 7#a7 9 subp>agraph 7,a71 by     
ins]t+ ! ,ov]paym5t ,cz>1 aft] !        
,controll] ( ! ,(fice ( ,f$]al ,f9ancial
 ,managem5t12 &  7#b7 9 subp>agraph     
7,b7-- 7,a7 9 clause 7viii71 by /rik+ 2 
& & ins]t+ a semicolon2  7,b7 9 clause  
7ix71 by /rik+ ! p]iod at ! end & ins]t+
 2 &2 &  7,c7 by add+ at ! end ! foll[+3
  7x7 include a plan to decrease improp]
 paym5ts 7z def9$ 9 section #ccea7      
?r\gh\t executive ag5cies4  4  #d4      
,improp] paym5ts  7a7 ,exp&+ improp]    
paym5t scope ,section #cceb ( title #ca1

 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 
subsection 7a7-- 7,a7 9 p>agraph 7#c7-- 
7i7 9 subp>agraph 7,a7-- 7,i7 9 clause  
7i71 by /rik+ 2 or & ins]t+ a semicolon2
  7,,ii7 9 clause 7ii71 by /rik+ ! p]iod
 at ! end2 &  7,,iii7 by add+ at ! end !
 foll[+ new clauses3  7iii7 any new     
,f$]al program t makes m ?an            
#ajj1jjj1jjj 9 paym5ts 9 ! fir/ ye> (   
op]ation2  7iv7 = :i* ! ,inspector g5]al
 ( ! executive ag5cy has an out/&+      
recomm5dation 9 ! report requir$ by     
subsection 7b77#b77;,e72 or  7v7 any new
 ,f$]al program t has or is expect$ to h
 outlays exce$+ #ajj1jjj1jjj 9 any "o ( 
! fir/ #c fiscal ye>s ( op]ation & is 9 
! fir/ #d ye>s ( op]ation4  2  7ii7 9   
subp>agraph 7,b71 9 ! matt] prec$+      
clause 7i71 by /rik+ p>agraph 7#a7 &    
ins]t+ p>agraph 7#a77;,b72 &  7iii7 9   
subp>agraph 7,c71 by /rik+ p>agraph 7#a7
 ea* place x appe>s & ins]t+ p>agraphs  
7#a7 & 7#d72 &  7,b7 by add+ at ! end ! 
foll[+ new p>agraph3  7#d7 ,new programs
 & activities  7,a7 ,susceptible to     

significant improp] paym5ts ,9 addition 
to ! programs & activities id5tifi$ "u  
p>agraph 7#a77;,b71 ! head ( an         
executive ag5cy %all id5tify z          
susceptible to significant improp]      
paym5ts any program or activity t-- 7i7 
has or is expect$ to h outlays exce$+   
#ajj1jjj1jjj 9 any "o ( ! fir/ #c fiscal
 ye>s ( op]ation2 &  7ii7 is 9 ! fir/ #d
 ye>s ( op]ation4  7,b7 ,applicability  
,?is p>agraph %all n apply ) respect to 
any program or activity t ! head ( !    
relevant executive ag5cy det]m9es1 bas$ 
on ! results ( a review conduct$ "u     
p>agraph 7#a71 is n susceptible to      
significant improp] paym5ts4  2 &  7#b7 
9 subsection 7c77#a71 9 ! matt] prec$+  
subp>agraph 7,a71 by /rik+ 8subsection  
7a77#a70 & ins]t+ 8p>agraphs 7#a7 & 7#d7
 ( subsection 7a704  7b7 ,au?ority ,to  
require data report+ = improp] paym5t   
e/imation "u ! ,,tanf program ,section  
#dag ( ! ,social ,security ,act 7#db    
,u4,s4,c4 #fag7 is am5d$ by /rik+ !     
p]iod at ! end & ins]t+ or z ! ,secret>y

 may det]m9e is necess>y to c>ry out    
subsections 7a7 ?r\gh 7e7 ( section     
#cceb ( title #ca1 ,unit$ ,/ates ,code1 
) respect to any program or activity    
au?oriz$ by ?is "p44  7c7 ,me*anism =   
,noncompliance ,section #ccec ( title   
#ca1 ,unit$ ,/ates ,code1 is am5d$ by   
add+ at ! end ! foll[+ new subsection3  
7e7 ,special adju/m5t = p]si/5t         
noncompliance  7#a7 ,9 g5]al ,beg9n+ ) !
 fir/ fiscal ye> aft] ! date ( !        
enactm5t ( ?is subsection1 any executive
 ag5cy :i* is 9 a /ate ( noncompliance  
accord+ to subsection 7b77#a7 %all h its
 highe/-level adm9i/rative appropriation
 acc\nt r$uc$ 9 ! f9al seque/ration     
report issu$ "u ! ,balanc$ ,budget &    
,em]g5cy ,deficit ,control ,act ( #aihe 
= t fiscal ye> by an am\nt equal to #e  
p]c5t ( ! total budget au?ority provid$ 
= t acc\nt 9 ! mo/ rec5tly enact$       
applicable appropriation ,act4  7#b7 ,= 
two or m ye>s ,if ! executive ag5cy is  
noncompliant = two or m fiscal ye>s aft]
 ! date ( ! enactm5t ( ?is subsection1  

!n ! highe/-level adm9i/rative          
appropriation acc\nt %all be r$uc$ 9 !  
f9al seque/ration report issu$ "u !     
,balanc$ ,budget & ,em]g5cy ,deficit    
,control ,act ( #aihe = t fiscal ye> by 
an am\nt equal to #aj p]c5t ( ! total   
budget au?ority provid$ = t acc\nt 9 !  
mo/ rec5tly enact$ applicable           
appropriation ,act4  4  7d7 ,reports    
,subsection 7d7 ( section #cceg ( title 
#ca1 ,unit$ ,/ates ,code1 is am5d$ to   
read z foll[s3  7d7 ,reports  7#a7 ,9   
g5]al ,= ea* fiscal ye> beg9n+ 9 ! fir/ 
fiscal ye> aft] ! date ( ! enactm5t (   
?is subsection1 & 9 ea* ( ! foll[+ #i   
fiscal ye>s1 ! head ( ea* ag5cy %all    
submit to ,congress1 9 ! report conta9+ 
! annual f9ancial /atem5t ( ! ag5cy1 a  
report on ! foll[+3 7,a7 ,! progress ( !
 ag5cy 9 ! foll[+3 7i7 ,! implem5tation 
( ! foll[+3 7,i7 ,! f9ancial &          
adm9i/rative controls requir$ to be     
e/abli%$ "u subsection 7c77#a74  7,,ii7 
,! fraud risk pr9ciples 9 ! ,/&>ds =    
,int]nal ,control 9 ! ,f$]al ,gov]nm5t (

 ! ,gov]nm5t ,acc\ntability ,(fice4     
7,,iii7 ,circul> ,a-#abc ( ! ,(fice (   
,managem5t & ,budget ) respect to !     
lead+ practices = manag+ fraud risk4    
7ii7 ,! id5tification ( fraud risks &   
vuln]abilities1 includ+ ) respect to    
payroll1 b5efici>y paym5ts1 grants1 l>ge
 contracts1 & pur*ase & travel c>ds4    
7iii7 ,! e/abli%m5t ( /rategies1        
proc$ures1 & o!r /eps to curb fraud4    
7,b7 ,in=mation on ! /atus ( implem5t+  
ea* ( ! #aa lead+ practices id5tifi$ 9 !
 report publi%$ by ! ,gov]nm5t          
,acc\ntability ,(fice on ,july #bh1     
#bjae1 entitl$ ,framework = ,manag+     
,fraud ,risks 9 ,f$]al ,programs4  7#b7 
,fulfillm5t ( report+ requirem5t ,if !  
annual f9ancial /atem5t ( an ag5cy1 or  
an alt]native report ( ! ag5cy includ$ 9
 ! annual f9ancial /atem5t1 includes    
in=mation t fulfills ! requirem5ts ( ?is
 subsection1 ! head ( ! ag5cy may       
include a brief /atem5t to t effect 9 ! 
f9ancial /atem5t or alt]native report   
)\t duplicat+ ! in=mation requir$ "u ?is

 subsection 9 a sep>ate or /&alone      
report4  4  7e7 ,great] ,/ate ,inve/m5t 
9 ,paym5t ,integrity ,sy/ems  7#a7 ,9   
g5]al ,*apt] #cc ( title #ca1 ,unit$    
,/ates ,code1 is am5d$ by add+ at ! end 
! foll[+ new section3  #ccei4 ,great]   
use ( paym5t integrity tools by ,/ates  
7a7 ,increas+ use ( paym5t integrity    
tools by ,/ate adm9i/rators  7#a7 ,9    
g5]al ,any ,/ate t receives fund+ 9 a   
program describ$ "u p>agraph 7#b7 %all  
use ea* applicable paym5t integrity tool
 publi%$ pursuant to p>agraph 7#c7 &    
submit a report on ! effectiv5ess ( ea* 
su* tool 9 accordance ) subsection 7b74 
7#b7 ,programs ,! programs describ$ "u  
?is p>agraph include ! foll[+3 7,a7 ,!  
program ( block grants to ,/ates =      
tempor>y assi/ance = ne$y families "u "p
 ,a ( title ,,iv ( ! ,social ,security  
,act4  7,b7 ,! ,m$icaid program "u title
 ,,xix ( ! ,social ,security ,act4  7,c7
 ,! supplem5tal nutrition assi/ance     
program "u ! ,food & ,nutrition ,act (  
#bjjh 7#g ,u4,s4,c4 #bjaa et seq474     

7,d7 ,! ,f$]al-,/ate unemploym5t        
comp5sation program "u titles ,,iii1    
,,ix1 & ,,xii ( ! ,social ,security     
,act4  7,e7 ,! special supplem5tal      
nutrition program = wom51 infants1 &    
*ildr5 e/abli%$ by section #ag ( ! ,*ild
 ,nutrition ,act ( #aiff 7#db ,u4,s4,c4 
#aghf74  7#c7 ,paym5t integrity tools ,!
 ,director ( ! ,(fice ( ,managem5t &    
,budget %all publi% a li/ ( paym5t      
integrity tools t ea* ,/ate %all use to 
r$uce ov]paym5ts4  7b7 ,c]tification (  
compliance ,n lat] ?an ,septemb] #cj (  
ea* ye>1 ea* ,/ate %all submit to !     
,director ( ! ,(fice ( ,managem5t &     
,budget a report t includes-- 7#a7 !    
usage by t ,/ate ( paym5t integrity     
tools2 &  7#b7 an analysis on ! effect (
 us+ paym5t integrity tools4  7c7       
,noncompliance ,if a ,/ate does n use   
paym5t integrity tools z requir$ by ?is 
section1 t ,/ate %all remit paym5t to ! 
,treasury = ! total am\nt ( ov]paym5t 9 
any program cov]$ by ?is section4  4    
7#b7 ,cl]ical am5dm5t ,! table (        

sections = *apt] #cc ( title #ca1 ,unit$
 ,/ates ,code1 is am5d$ by add+ at ! end
 ! foll[+ item3  #ccei4 ,great] use (   
paym5t integrity tools by ,/ates4  4    
7#c7 ,effective date ,section #ccei (   
title #ca1 ,unit$ ,/ates ,code1 z add$  
by p>agraph 7#a71 %all take effect on ! 
date t is "o ye> aft] ! date ( !        
enactm5t ( ?is ,act4  7f7 ,work+ sy/em  
data %>+ ,section #bje7r77#aa7 ( !      
,social ,security ,act is am5d$-- 7#a7  
by /rik+ ,dur+ ! #c-ye> p]iod t beg9s on
 ! effective date ( ?is p>agraph1 ! &   
ins]t+ ,!2 &  7#b7 by /rik+ to prev5t   
improp] paym5ts to deceas$ individuals &
 ins]t+ = ! au?oriz$ uses ( ! ,d ,n ,pay
 work+ sy/em4