,i #aaith ,,congress #b;d ,session ,h4 ,r4 #hdfc ,,in ,,the ,,house ,,of ,,representatives ,april #bc1 #bjbf,mr4 ,comer 7for himself and ,mr4 ,arrington7 introduced the following bill2 which was referred to the ,committee on ,oversight and ,government ,reform1 and in addition to the ,committee on ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to establish governmentwide requirements for pre-payment fraud prevention actions1 to provide the ,u4,s4 ,treasury appropriate data resources1 to facilitate participation in governmentwide anti-fraud data sharing1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,pre-,payment ,fraud ,prevention and ,treasury ,data ,access ,act4 #b4 ,pre-payment fraud prevention requirements for agencies 7a7 ,establishment of pre-,payment agency responsibilities 7#a7 ,amendment ,chapter #cc of title #ca1 ,united ,states ,code1 is amended by inserting after section #ccbe the following3 #ccbe;a4 ,agency duties for fraud and improper payment prevention before the issuance of a payment voucher request 7a7 ,mandatory actions before issuing a payment voucher ,the head of an agency1 or an officer or employee described in section #ccbe7;a77#a77;,b71 may not certify a voucher under section #ccbe until the following requirements are met3 7#a7 ,each pre-certification requirement described in subsection 7b7 for such payment request4 7#b7 ,confirmation is provided that the payment complies with any disbursement requirement and instruction1 including any pre-certification requirement1 published by the ,secretary of the ,treasury4 7#c7 ,confirmation is provided that any other appropriate payment1 account1 and payee validation program or service that the ,secretary of the ,treasury1 in consultation with the ,director1 requires to reduce fraud and an improper payment resulting in financial loss to the ,government1 including any agency evaluation of the fraud-risk indicator of a program required under section #cceb and agency procedures required under section #ceed7;b77#a71 have been conducted1 in accordance with necessary exceptions for statutory1 policy1 or operational reasons4 7b7 ,payment verification pre-,certification requirements ,not later than #ahj days after the date of the enactment of this section1 and as needed thereafter1 the ,secretary of the ,treasury shall1 in consultation with the ,director of the ,office of ,management and ,budget1 issue regulations1 and guidance as necessary1 for the pre-certification requirements of this section1 for vouchers certified under section #ccbe1 including any deadline for pre-certification information and related records to be submitted to the requisite ,treasury official and disbursing official under subchapter ,,iv of this chapter1 before the date of disbursement in order to allow for sufficient time to meet the requirements of this section1 including the following3 7#a7 ,funds are available at the time the obligation is incurred and if an obligation is incurred when funds are not available1 then the agency may not certify the payment voucher4 7#b7 ,the amount of the payment and the name of the payee on the payment voucher are correct1 in conformance with the prescribed standard format4 7#c7 ,a valid social security number1 taxpayer identification number1 employer identification number1 individual taxpayer identification number1 or payee ,,id number is provided for each payee on the voucher1 if applicable4 7#d7 ,the appropriation or fund from which the payment will be made is available for the purpose described in the voucher and indicated with the appropriate ,treasury ,account ,symbol or ,business ,event ,type ,code4 7#e7 ,a payee is not deceased1 if the payment would be improperly made to a deceased payee4 7#f7 ,the account number1 if any1 provided on the payment voucher is held at a financial institution and is open1 valid1 and belongs to the payee or a valid designee of the payee4 7#g7 ,any other identifier in conformance with the payment verification pre-certification requirements established by the ,secretary of the ,treasury1 which may include the ,procurement ,instrument ,identified and the ,federal ,award ,identification ,number4 7c7 ,return of payment voucher ,the ,secretary1 in consultation with the ,director1 shall issue guidance and establish procedures to authorize the ,chief ,disbursing ,officer of the ,department of the ,treasury1 or an agency disbursing official1 to return to the relevant agency certifying official1 including a notification to the agency1 any payment or payment voucher issued under section #ccbe which does not comply with pre-certification verification requirements established under this section as determined by the ,secretary4 7d7 ,agency requests for exemptions ,the ,secretary of the ,treasury shall include in the guidance issued under subsection 7b71 or in other regulations or guidance issued under this chapter1 a process for agencies to request exemptions from some or all of the payment verification requirements for specific payments or categories of payments under this section4 ,any approved exemption shall be documented in any related payment voucher certified under section #ccbe for the duration of the exemption4 4 7#b7 ,technical and conforming amendment ,the table of sections for chapter #cc of title #ca1 ,united ,states ,codes1 is amended by inserting after the item for section #ccbe the following3 #ccbe;a4 ,agency duties for fraud and improper payment prevention prior to issuing a payment voucher request4 4 7b7 ,amendment to responsibilities of agency certifying official for payment vouchers ,section #cebh7;a7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#b71 by inserting after of this title the following3 1 including pre-certification requirement described in section #ccbe;a2 7#b7 by redesignating paragraphs 7#d7 and 7#e7 as paragraphs 7#e7 and 7#f71 respectively2 and 7#c7 by inserting after paragraph 7#c7 the following3 7#d7 ,ensuring that-- 7,a7 the agency has complied with the requirements of section #ccbe;a and subchapter ,,iv of this title2 and 7,b7 a covered recipient is in compliance with the reporting requirements under section #fajg4 4 7c7 ,prepayment requirements of payment disbursing officials ,section #ccbe of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7d7 by striking taxpayer identifying number of each person and inserting information required to be submitted under section #ccbe;a7b7 of each payee2 and 7#b7 by adding at the end the following3 7e7 7#a7 ,before certifying a voucher to a disbursing official1 the head of an agency or an officer or employee of an agency described in subparagraph 7,a7 or 7,b7 of subsection 7a77#a71 as applicable1 shall take necessary actions to accurately disburse payments to the recipients of those payments1 including by-- 7,a7 verifying the accuracy of the bank account information to which a payment is to be disbursed1 to the extent practicable2 and 7,b7 comparing the bank account information of the proposed recipient to other payment records available to the agency1 to the extent practicable4 7#b7 ,the ,secretary of the ,treasury shall issue guidance to carry out this subsection1 which may be carried out through any guidance issued for section #ccbe;a7b74 4 7d7 ,requirements and authorities of payment disbursing officials ,paragraph 7#c7 of section #ccbe7;a7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by inserting 1 compliance with an order to pause a payment pursuant to section #cccg7;b71 after except for the correctness of computations on a voucher2 and 7#b7 by striking 11 and inserting a comma4 7e7 ,addition of fraud prevention indicators to agency improper payment risk assessments 7#a7 ,definitions amendments ,section #ccea of title #ca1 ,united ,states ,code is amended-- 7,a7 in paragraph 7#c7-- 7i7 in the heading1 by striking ,initiative and inserting ,system2 7ii7 by striking ,initiative and inserting ,system2 and 7iii7 by striking initiative and inserting system2 and 7,b7 by adding the following in the appropriate alphabetical order and redesignating the paragraphs accordingly3 7#i7 ,appropriate authorizing and appropriations committees of congress ,the term appropriate authorizing and appropriations committees of ,congress means the following3 7,a7 ,the ,committees on ,appropriations of the ,senate and the ,house of ,representatives4 7,b7 ,the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate4 7,c7 ,the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives4 7,d7 ,the ,budget ,committee of the ,house of ,representatives and the ,committee on the ,budget of the ,senate4 7,d7 ,any other relevant congressional committee of jurisdiction4 7#aj7 ,director ,the term ,director means the ,director of the ,office of ,management and ,budget4 7#aa7 ,fraud-risk indicator ,the term fraud-risk indicator means an objective data point or analytic signal that indicates an anomalous payment pattern or increase in the volume of a payment amount1 a verified data mismatch1 network or behavioral anomaly1 or match identified by the ,do ,not ,pay system and any other payment1 account1 and payee validation program or service provided by the ,department of the ,treasury that would result in financial loss to the ,government4 4 7#b7 ,amendment ,section #cceb7;a77#a7 of title #ca1 ,united ,states ,code1 is amended-- 7,a7 in subparagraph 7,a71 by striking 2 and and inserting a semicolon2 7,b7 in subparagraph 7,b71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7,c7 design and apply fraud-risk indicators to the programs identified under paragraph 7,a74 4 #c4 ,treasury do not pay system 7a7 ,amendment ,section #cced of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in the heading1 by striking ,initiative and inserting ,system2 7#b7 in subsection 7a7-- 7,a7 by amending paragraph 7#a7 to read as follows3 7#a7 ,in general ,the head of each executive agency shall establish and maintain appropriate preaward and prepayment procedures to prevent and recover improper payments1 including payments resulting in financial loss to the ,government1 and to prevent financial fraud4 ,such procedures shall include1 at a minimum-- 7,a7 screening all persons or entities that receive1 or seek to receive1 ,federal awards or payments against all appropriate ,do ,not ,pay system data assets1 including data assets described in paragraph 7#b77;a71 and risk tools before an award is made or a payment request is submitted to the disbursing officer in accordance with section #ccbe;a2 and 7,b7 a periodic review of available data assets and notification to the ,secretary of any data asset that the agency requires access to1 either directly or through the ,do ,not ,pay system4 2 7,b7 in paragraph 7#b7-- 7i7 by striking ,at a minimum and before issuing any payment or award1 each executive agency shall review as appropriate the following databases to verify eligibility of the payment and award3 and inserting the following3 ,notwithstanding any other provision of law1 including the ,internal ,revenue ,code of #aihf1 the ,social ,security ,act1 and the ,personal ,responsibility and ,work ,opportunity ,reconciliation ,act1 the ,secretary shall have access to the following data assets and incorporate them in the ,do ,not ,pay system1 without the need to pursue designation under paragraph 7#c71 for the sole purposes of improper payment prevention and detection32 and 7ii7 by adding at the end the following3 7,g7 ,the ,national ,directory of ,new ,hires pursuant to section #dec7;j7 of the ,social ,security ,act 7#db ,u4,s4,c4 #fec7;j774 7,h7 ,information made available to such head pursuant to a request made under section #fajc7;i77#i77;,a7 of the ,internal ,revenue ,code of #aihf4 7,i7 ,information made available to the ,secretary of ,treasury by the ,commissioner of ,social ,security pursuant to section #bce of the ,social ,security ,act4 2 and 7,c7 by adding at the end the following3 7#c7 ,additional data assets 7,a7 ,designation ,the ,secretary may designate additional categories of data assets for inclusion in the ,do ,not ,pay system to address risks of fraud and improper payments4 7,b7 ,privacy and notice ,in designating data assets that include personally identifiable information1 law enforcement sensitive information1 or information subject to section #eeb;a of title #e1 the ,secretary shall-- 7i7 act in coordination with the ,director of the ,office of ,management and ,budget2 and 7ii7 provide public notice and an opportunity for comment for not less than #cj days prior to designation4 7,c7 ,database inclusion ,following designation of a category of data assets under subparagraph 7,a71 the ,secretary shall provide public notice and an opportunity for comment for not less than #cj days before adding any specific data asset within such category4 7,d7 ,non-sensitive data ,data assets that do not include personally identifiable or law enforcement sensitive information may be added at the discretion of the ,secretary without designation if a list of such data sets is disclosed to the public on a public website maintained by the ,department of the ,treasury4 7#d7 ,treatment of data matching for purposes of agency use of do not pay system ,for purposes of section #eeb;a of title #e1 or any other provision of law1 a computerized comparison of two or more automated ,federal systems of records1 or a computerized comparison of a ,federal system of records with other records or non-,federal records1 carried out by the ,secretary to verify payments or identify or recover improper payments under this section shall not be considered a matching program4 7#e7 ,limitation on use ,information obtained through the ,do ,not ,pay system may be used solely for the purposes described in paragraph 7#a71 or for ,federal or ,state law enforcement or investigative purposes4 ,any officer1 employee1 contractor1 subcontractor1 or agent of a ,federal or ,state entity may not publish1 examine for a purpose not explicitly authorized under this section1 or communicate such information furnished in such data assets other than in fulfillment of the purposes of this section4 7#f7 ,penalty for unlawful disclosure ,any person described in paragraph 7#e7 who knowingly and willfully discloses information in violation of that paragraph shall be fined not more than #e1jjj1 imprisoned not more than #e years1 or both4 7#g7 ,exception when payment otherwise required under law ,the head of an executive agency may be exempt from the requirements of paragraph 7#a7 if a ,federal statute expressly requires that a payment or award be made notwithstanding potential ineligibility1 and the agency head notifies the ,secretary of the ,treasury and the ,director of the ,office of ,management and ,budget prior to certification of the payment under section #ccbe4 7#h7 ,definition ,in this section1 the term data asset has the meaning given that term in section #cejb7ag7 of title #dd4 2 and 7#c7 by striking subsections 7b7 through 7e7 and inserting the following3 7b7 ,establishment of system ,the ,secretary of the ,treasury shall establish and maintain a ,do ,not ,pay system1 which shall be administered and operated by the ,fiscal ,service of the ,department of the ,treasury4 ,the ,do ,not ,pay system shall include-- 7#a7 the data assets described in subsection 7a77#b72 and 7#b7 such other data assets as the ,secretary of the ,treasury may designate1 in consultation with the ,director of the ,office of ,management and ,budget1 to assist agencies in carrying out subsection 7a77#a74 7c7 ,state and other governmental use 7#a7 ,in general ,each ,state and local government administering a federally funded program1 and any contractor1 subcontractor1 or agent thereof1 including ,state and local government auditors1 shall establish and maintain appropriate preaward and prepayment procedures to prevent and recover improper payments1 including payments resulting in financial loss to the ,government1 and to prevent financial fraud4 ,such procedures shall include1 at a minimum-- 7,a7 screening all persons or entities that receive1 or seek to receive1 ,federal awards or payments against all appropriate ,do ,not ,pay system data assets1 including data assets described in subsection 7a77#b71 and risk tools before an award is made or a payment request is submitted to the disbursing officer2 and 7,b7 periodic review of available data assets and notification to the ,secretary of any data asset that the agency requires access to1 either directly or through the ,do ,not ,pay system4 7#b7 ,other governmental use ,the judicial and legislative branches of the ,united ,states 7as defined in section #bjb7;e7 of title #ah7 shall have access to the ,do ,not ,pay system for purposes of verifying eligibility for payments and preventing fraud and improper payments4 7#c7 ,privacy requirements ,the ,secretary1 in consultation with the ,director of the ,office of ,management and ,budget1 shall issue guidance establishing privacy and other requirements applicable to such access1 consistent with section #eeb;a of title #e4 7d7 ,annual report ,the ,secretary shall submit to the appropriate authorizing and appropriations committees of ,congress an annual report on the operation of the ,do ,not ,pay system1 which may be included as part of another report submitted to ,congress by the ,secretary1 and which shall include the following3 7#a7 ,an evaluation of the effectiveness of the system in reducing improper payments4 7#b7 ,information on the frequency of corrections and identification of erroneous data4 7#c7 ,recommendations for legislative or administrative action to enhance the operations of the system4 7#d7 ,an assessment of agency compliance with the requirements of this section1 including a listing of all memorandums established with the head of an agency under subsection 7a77#d7 that documents agency use of the ,do ,not ,pay system4 7e7 ,continuity and transition 7#a7 ,continuation of previous system if necessary ,the ,do ,not ,pay initiative in effect on the day before the date of the enactment of this section shall continue as necessary to support implementation of the ,do ,not ,pay system4 7#b7 ,guidance1 rules1 and procedures ,guidance1 rules1 and procedures in effect before the date of the enactment of this section shall remain in effect until modified by the ,secretary or the ,director of the ,office of ,management and ,budget4 7#c7 ,rules of construction ,nothing in this subsection may be construed-- 7,a7 except as specifically provided in subsection 7a77#d71 to modify or supersede the requirements of section #eeb;a of title #e1 including the requirements for notice in section #eeb;a7e77#ab7 and for due process rights of an individual under section #eeb;a7p72 or 7,b7 to limit any authority of an ,inspector ,general under applicable law4 4 7b7 ,technical and conforming amendment ,the item relating to section #cced in the table of sections for chapter #cc of title #ca1 ,united ,states ,code1 is amended1 by striking ,initiative and inserting ,program4 #d4 ,single report on first time use of funds by recipient 7a7 ,establishment of post-,award single report requirement on first-,time use of funds by recipient of ,federal award ,chapter #fa of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 #fajg4 ,single report on first time use of funds by recipient 7a7 ,federal award reporting requirement ,the head of each agency that administers a covered award shall require each covered recipient to1 as a condition of receiving amounts under such award1 submit to the head of the agency1 not later than #ahj days after the receipt of such award unless a deadline exception may be applied pursuant to pursuant to regulations promulgated under subsection 7b71 a one-time report on the use of such amounts that-- 7#a7 includes any content required to be included in such report pursuant to subsection 7b72 and 7#b7 is in the format required under such subsection4 7b7 ,governmentwide report regulations and guidance 7#a7 ,contents and format of report 7,a7 ,promulgation ,not later than #a year after the date of the enactment of this section1 the ,director1 in coordination with the ,secretary of the ,treasury and the standard-setting agency designated under section #fdjb7;a77#a71 shall promulgate regulations1 and any clarifying guidance as may be necessary1 to establish governmentwide requirements for the content and format of the report described under subsection 7a74 7,b7 ,updates ,any guidance or regulation promulgated under subparagraph 7,a7 shall be updated as necessary1 but in any case1 shall be updated not less often than once every #e years4 7#b7 ,report minimum requirements ,the regulations and any clarifying guidance promulgated under paragraph 7#a71 shall at a minimum-- 7,a7 enable the head of an awarding agency to determine whether amounts provided under a covered award are being used by the recipient required to submit the report1 and any sub-recipient or sub-grantee thereof1 for the intended purpose of the program1 as set forth in statute1 regulation1 or policies and procedures of the agency2 7,b7 enable fraud prevention1 detection1 investigation1 and mitigation1 in future awards of ,federal funds to the recipient required to submit the report by identifying relevant fraud-risk indicators that would require a referral for investigation and criminal referral to the appropriate entity of the ,federal ,government1 including any identified effort by a recipient to defraud the ,federal ,government or violate sections #cgbi through #cgca of title #ca1 ,united ,states ,code 7commonly referred to as the ,false ,claims ,act72 7,c7 ensure that any sub-recipient or sub-grantee1 at any level1 of the recipient required to submit the report provide to such recipient such information as may be necessary to enable aggregate reporting on the covered award by the recipient2 7,d7 require the heads of agencies to apply the governmentwide data standards established under chapter #fd with respect to the format and content of the report required to be submitted2 7,e7 align with the ,federal award reporting requirements and data standards under the ,federal ,funding ,accountability and ,transparency ,act of #bjjf 7,public ,law #aji-bhb2 #ca ,u4,s4,c4 #faja note71 to the maximum extent practicable2 7,f7 reduce recipient and agency reporting burdens by avoiding duplication in recipient reporting obligations1 to the extent practicable2 and 7,g7 provide clarification for agencies to apply a reporting deadline exception under subsection 7a77#a71 which may be made for an entire program or type of covered award1 beyond #ahj days when the use of the covered funds by the covered recipient takes place more than #ahj days after a receipt of such covered award4 7c7 ,agency requirements ,in accordance with the regulations and any clarifying guidance promulgated under subsection 7b71 the head of an agency that administers a covered award shall-- 7#a7 update the terms and conditions of ,federal awards in the agency programs to implement subsection 7a7 for covered recipients2 7#b7 include a summary of the post-award reporting requirements established under subsection 7a71 including the required content and reporting format1 in the ,notice of ,funding ,opportunity 7which has the meaning given the term in section #bjj4a of title #b1 ,code of ,federal ,regulations7 for ,federal financial assistance 7as defined under section #geja of this title7 in order to assist applicants for such assistance in understanding post-award reporting obligations2 7#c7 to the maximum extent practicable-- 7,a7 provide user-friendly and plain language directives for covered recipients to fulfill their reporting obligation under subsection 7a72 and 7,b7 use existing post-award reporting requirements to reduce the burden of cumulative post-award reporting2 and 7#d7 establish procedures within the agency to identify covered recipients that are not in compliance with the reporting requirement under subsection 7a74 7d7 ,noncompliance ,for a case in which a covered recipient does not submit the report required by subsection 7a71 the awarding agency shall-- 7#a7 provide a timely written notice of noncompliance to the recipient that-- 7,a7 clearly states the reason for noncompliance2 7,b7 notifies the recipient of the obligation of the agency to cease further disbursements to the entity until the covered recipient is in compliance2 and 7,c7 provides clear instructions to the covered recipient on how to come back into compliance2 and 7#b7 prevent a payment voucher from being issued under section #ccbe for a payment to such recipient1 for any program funds1 until such report is submitted4 7e7 ,availability of report ,each report submitted under subsection 7a7 shall be-- 7#a7 kept on file by the agency for a period of not less than #e years after the date on the conclusion of the duration of the award2 and 7#b7 made available upon request to-- 7,a7 the ,director2 7,b7 the ,secretary of the ,treasury2 7,c7 the ,attorney ,general2 7,d7 the ,inspector ,general of the agency concerned2 and 7,e7 the appropriate congressional committees4 7f7 ,use of information included in report ,information included in the report required by subsection 7a7 shall be used by the agency in support of improper payment activities of the agency under section #cceb as appropriate and applicable4 7g7 ,definitions ,in this section3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committees on ,appropriations of the ,senate and the ,house of ,representatives2 7,b7 the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate2 7,c7 the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives2 and 7,d7 any other relevant congressional committee of jurisdiction4 7#b7 ,covered award ,the term covered award means a ,federal award 7as defined under section #geja7 in an amount not less than #ej1jjj 7based on fiscal year #bjbg constant dollars74 7#c7 ,covered recipient ,the term covered recipient means any entity1 including any ,state1 the ,district of ,columbia1 and any territory or possession of the ,united ,states1 including a pass-through entity 7as defined under section #geja71 that receives the covered award from a particular agency program for the first time in that program's existence4 7#d7 ,fraud-risk indicator ,the term fraud-risk indicator means an objective data point or analytic signal that indicates an anomalous payment pattern or increase in the volume of a payment amount1 a verified data mismatch1 network or behavioral anomaly1 or match identified by the ,do ,not ,pay system and any other payment1 account1 and payee validation program or service provided by the ,department of the ,treasury that would result in financial loss to the government4 4 7b7 ,clarification of application of first reporting deadline ,the report required under subsection 7a7 of section #fajg of title #ca1 ,united ,states ,code1 as added by subsection 7a71 shall apply to a covered award made during the fiscal year following the promulgation of regulations or guidance by the ,director under subsection 7b77#a77;,a7 of such section4 #e4 ,u4,s4 treasury data access for purposes of program integrity 7a7 ,access to the national directory of new hires ,section #dec7;j7 of the ,social ,security ,act 7#db ,u4,s4,c4 #fec7;j77 is amended by adding at the end the following3 7#ab7 ,information to assist in the prevention of improper payments 7,a7 ,in general ,the ,secretary of the ,treasury shall have access to the information in the ,national ,directory of ,new ,hires for the sole purpose of detecting1 preventing1 and recovering improper payments 7as defined under section #ccea of title #ca1 ,united ,states ,code71 including for use in the ,do ,not ,pay system established under section #cced of title #ca1 ,united ,states ,code4 7,b7 ,disclosure ,for the sole purpose of detecting1 preventing1 and recovering improper payments1 the ,secretary of the ,treasury may disclose information in the ,national ,directory of ,new ,hires to-- 7i7 agents and contractors of the ,secretary of the ,treasury2 7ii7 ,federal and non-,federal individuals and entities authorized to receive information in the ,national ,directory of ,new ,hires directly from the ,secretary2 7iii7 entities with access to the ,do ,not ,pay system2 and 7iv7 such additional individuals and entities as agreed to by the ,secretary and the ,secretary of the ,treasury4 4 7b7 ,privacy-,preserving validation of select tax information 7#a7 ,in general ,section #fajc7;i7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#i7 ,disclosure of certain return information for use in the do not pay working system 7,a7 ,in general ,upon execution of a written intra agency agreement between the ,internal ,revenue ,service and the office of the ,department of the ,treasury that operates the ,do ,not ,pay system described in section #cced7;c7 of title #ca1 ,united ,states ,code1 the ,secretary may disclose to any authorized person described in subparagraph 7,b7 return information described in subparagraph 7,c7 with respect to an individual taxpayer for the applicable period described in subparagraph 7,d7 for the limited purpose described in subparagraph 7,e74 ,the ,secretary may further authorize the redisclosure of such return information by an authorized person described in subparagraph 7,b71 subject to such terms1 conditions1 and safeguards as the ,secretary determines appropriate1 to other authorized persons described in subparagraph 7,b7 solely for the limited purpose described in subparagraph 7,e74 ,the ,secretary shall disclose or permit the redisclosure of such return information only to the extent necessary and for the purpose of the ,do ,not ,pay system assisting an authorized person to identify1 prevent1 and recover improper payments4 7,b7 ,authorized person ,for purposes of this paragraph1 the term authorized person means-- 7i7 an officer1 employee1 agent1 or contractor of the ,department of ,treasury1 whose official duties require access to the ,do ,not ,pay system for the purpose of facilitating the identification1 prevention1 or recovery of improper payments1 or 7ii7 an officer1 employee1 or contractor of an entity authorized to access the ,do ,not ,pay system for the purposes described in subparagraph 7,e74 7,c7 ,return information ,the return information that may be disclosed under this paragraph is limited to-- 7i7 taxpayer identity information1 7ii7 filing status1 7iii7 adjusted gross income1 7iv7 net profit or loss1 as reported on ,schedule ,c of ,form #ajdj 7or successor form71 7v7 bank account and routing information1 7vi7 if applicable1 the fact that there was no return filed1 7vii7 the taxable year with respect to which the preceding information relates1 and 7viii7 any reported identity theft related to the taxpayer identification number4 7,d7 ,applicable period ,for purposes of this paragraph1 the term applicable period means1 with respect to any individual taxpayer1 the period-- 7i7 consisting of the number of taxable years specified in the agreement entered under subparagraph 7,a71 except that such period shall not be fewer than #c taxable years1 and 7ii7 ending with the most recent taxable year for which the information described in subparagraph 7,c7 is available4 7,e7 ,limitation on use of information ,information disclosed under this subparagraph shall be solely for the use of the authorized persons to whom such information is disclosed and solely for the purpose of detecting1 preventing1 and recovering improper payments4 4 7#b7 ,conforming amendments 7,a7 ,section #fajc7;a77#c7 of the ,internal ,revenue ,code of #aihf is amended by inserting subsection 7i77#i71 after subsection 7e77#a77;,d77iii714 7,b7 ,section #fajc7p77#d7 of such ,code is amended-- 7i7 in the matter preceding subparagraph 7,a7-- 7,i7 by striking or 7#g71 and inserting 7#g71 or 7#i712 and 7,,ii7 by striking or 7#g77;,a77ii71 and inserting 7#g77;,a77ii71 or 7#i712 7ii7 in subparagraph 7,f77i71 by inserting or 7#i7 after 7i77#c77;,b77i72 and 7iii7 in the matter preceding subclause 7,i7 of subparagraph 7,f77ii71 by striking 7#e7 or 7#g71 and inserting 7#e71 7#g71 or 7#i714 7,c7 ,section #gbac7;a77#b7 of such ,code is amended by striking or 7#g77;,a77ii71 and inserting 7#g77;,a77ii71 or 7#i714 7#c7 ,effective date ,the amendments made by this subsection shall apply to any disclosure made after the effective date of this ,act4 7c7 ,access to social security information ,title ,,ii of the ,social ,security ,act 7#db ,u4,s4,c4 #dja et seq47 is amended by adding at the end the following new section3 #bce4 ,disclosure of information for do not pay system 7a7 ,the ,commissioner of ,social ,security shall enter into an agreement with the ,secretary of the ,treasury 7or his designee7 under which-- 7#a7 the ,commissioner establishes a reliable1 secure method1 which compares the name and social security account number provided in an inquiry against such information maintained by the ,commissioner in order to confirm 7or not confirm1 including the reason for the nonconfirmation7 the validity of the information provided2 7#b7 appropriate safeguards are included to assure that the confirmation 7or nonconfirmation7 is used solely for the use of the authorized persons to whom such information is disclosed and solely for the purpose of using the ,do ,no ,pay system to identify1 prevent1 and recover improper payments1 and any redisclosure shall be subject to the provisions of section #cced of title #ca1 ,united ,states ,code2 and 7#c7 the ,secretary shall pay the ,commissioner of ,social ,security the full costs 7including systems and administrative costs7 of providing the confirmation described in paragraph 7#a74 7b7 ,for purposes of this paragraph the term authorized person means-- 7#a7 an officer1 employee1 contractor1 or agent of the ,department of ,treasury1 whose official duties require access to the ,do ,not ,pay system1 or 7#b7 an officer1 employee1 or contractor of another ,federal agency1 or a ,state agency that manages ,federally funded ,state-administered programs1 whose official duties require access to the ,do ,not ,pay system4 4 #f4 ,effective date ,this ,act and the amendments made by this ,act shall take effect on the date that is #ahj days after the date of the enactment of this ,act4