In the nature of a substitute.

SA 3934. Mr. PRYOR (for Mr. Carper (for himself and Mr. Coburn))
proposed an amendment to the bill S. 1360, to amend the Improper
Payments Elimination and Recovery Improvement Act of 2012, including
making changes to the Do Not Pay initiative, for improved detection,
prevention, and recovery of improper payments to deceased individuals,
and for other purposes; as follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Improper Payments Agency
Cooperation Enhancement Act of 2014''.

SEC. 2. DISTRIBUTION OF DEATH INFORMATION FURNISHED TO OR
MAINTAINED BY THE SOCIAL SECURITY
ADMINISTRATION.

(a) In General.--
(1) In general.--Section 205(r) of the Social Security Act
(42 U.S.C. 405(r)) is amended--
(A) in paragraph (2)--
(i) by striking ``may'' and inserting ``shall''; and
(ii) by inserting ``, and to ensure the completeness,
timeliness, and accuracy of,'' after ``transmitting'';
(B) by striking paragraphs (3), (4), and (5) and inserting
the following:
``(3)(A) The Commissioner of Social Security shall, to the
extent feasible, provide for the use of information regarding
all deceased individuals furnished to or maintained by the
Commissioner under this subsection in accordance with
subparagraph (B), subject to such safeguards as the
Commissioner of Social Security determines are necessary or
appropriate to protect the information from unauthorized use
or disclosure, by any Federal or State agency providing
federally-funded benefits or administering a Federal program
for such benefits, including the agency operating the Do Not
Pay working system for ensuring proper payment of those
benefits, through a cooperative arrangement with the agency
(that includes the agency's Inspector General) or with an
agency's Inspector General, if--
``(i) under such arrangement the agency (including, if
applicable, the agency's Inspector General) provides
reimbursement to the Commissioner of Social Security for the
reasonable cost of carrying out such arrangement, including
the reasonable costs associated with the collection and
maintenance of information regarding deceased individuals
furnished to the Commissioner pursuant to paragraph (1), and
``(ii) such arrangement does not conflict with the duties
of the Commissioner of Social Security under paragraph (1).
``(B) The Commissioner of Social Security shall, to the
extent feasible, provide for the use of information regarding
all deceased individuals furnished to or maintained by the
Commissioner under this subsection, through a cooperative
arrangement in order for a Federal agency to carry out any of
the following purposes, if the requirements of clauses (i)
and (ii) of subparagraph (A) are met:
``(i) Operating the Do Not Pay working system established
by section 5 of the Improper Payments Elimination and
Recovery Improvement Act of 2012. Under such arrangement, the
agency operating the working system may compare death
information disclosed by the Commissioner with personally
identifiable information reviewed through the working system,
and may redisclose such comparison of information, as
appropriate, to any Federal or State agency authorized to use
the working system.
``(ii) To ensure proper payments under a Federal program or
the proper payment of federally-funded benefits, including
for purposes of payment certification, payment disbursement,
and the prevention, identification, or recoupment of improper
payments.
``(iii) To carry out tax administration or debt collection
duties of the agency.
``(iv) For use by any policing agency of the Federal
Government with the principle function of prevention,
detection, or investigation of crime or the apprehension of
alleged offenders.
``(4) The Commissioner of Social Security may enter into
similar arrangements with States to provide information
regarding all deceased individuals furnished to or maintained
by the Commissioner under this subsection, for any of the
purposes specified in paragraph (3)(B), for use by States in
programs wholly funded by the States, or for use in the
administration of a benefit pension plan or retirement system
for employees of a State or a political subdivision thereof,
if the requirements of clauses (i) and (ii) of paragraph
(3)(A) are met. For purposes of this paragraph, the terms
`retirement system' and `political subdivision' have the
meanings given such terms in section 218(b).
``(5) The Commissioner of Social Security may use or
provide for the use of information regarding all deceased
individuals furnished to or maintained by the Commissioner
under this subsection, subject to such safeguards as the
Commissioner of Social Security determines are necessary or
appropriate to protect the information from unauthorized use
or disclosure, for statistical purposes and research
activities by Federal and State agencies if the requirements
of clauses (i) and (ii) of paragraph (3)(A) are met. For
purposes of this paragraph, the term `statistical purposes'
has the meaning given that term in section 502 of the
Confidential Information Protection and Statistical
Efficiency Act of 2002.''; and
(C) in paragraph (8)(A)(i), by striking ``subparagraphs (A)
and (B) of paragraph (3)'' and inserting ``clauses (i) and
(ii) of paragraph (3)(A)''.
(2) Repeal.--Effective on the date that is 5 years after
the date of enactment of this Act, the amendments made by
this subsection to paragraphs (3), (4), (5), and (8) of
section 205(r) of the Social Security Act (42 U.S.C. 405(r))
are repealed, and the provisions of section 205(r) of the
Social Security Act (42 U.S.C. 605(r)) so amended are
restored and revived as if such amendments had not been
enacted.
(b) Amendment to Internal Revenue Code.--Section 6103(d)(4)
of the Internal Revenue Code of 1986 is amended--
(1) in subparagraphs (A) and (B), by striking ``Secretary
of Health and Human Services'' each place it appears and
inserting ``Commissioner of Social Security''; and
(2) in subparagraph (B)(ii), by striking ``such Secretary''
and all that follows through ``deceased individuals.'' and
inserting ``such Commissioner pursuant to such contract,
except that such contract may provide that such information
is only to be used by the Social Security Administration (or
any other Federal agency) for purposes authorized in the
Social Security Act or this title.''.
(c) Report to Congress on Alternative Sources of Death
Data.--
(1) Requirements.--The Director of the Office of Management
and Budget shall conduct a review of potential alternative
sources of death data maintained by the non-Federal sources,
including sources maintained by State agencies or
associations of State agencies, for use by Federal agencies
and programs. The review shall include analyses of--
(A) the accuracy and completeness of such data;
(B) interoperability of such data;
(C) the extent to which there is efficient accessability of
such data by Federal agencies;
(D) the cost to Federal agencies of accessing and
maintaining such data;
(E) the security of such data;
(F) the reliability of such data; and
(G) a comparison of the potential alternate sources of
death data to the death data distributed by the Commissioner
of Social Security.
(2) Report.--Not later than 4 years after the date of
enactment of this Act, the Director of the Office of
Management and Budget shall submit a report to Congress on
the results of the review and analyses required under
paragraph (1). The report shall include a recommendation by
the Director of the Office of Management and Budget regarding
whether to extend the agency access to death data distributed
by the Commissioner of Social Security provided under the
amendments made by subsection (a)(1) beyond the date on which
such amendments are to be repealed under subsection (a)(2).

[[Page S5841]]

SEC. 3. IMPROVING THE SHARING AND USE OF DATA BY GOVERNMENT
AGENCIES TO CURB IMPROPER PAYMENTS.

The Improper Payments Elimination and Recovery Improvement
Act of 2012 (31 U.S.C. 3321 note) is amended--
(1) in section 5--
(A) in subsection (a)(2), by striking subparagraph (A) and
inserting the following:
``(A) The death records maintained by the Commissioner of
the Social Security Administration.''; and
(B) in subsection (b)--
(i) by redesignating paragraph (5) as paragraph (6); and
(ii) by inserting after paragraph (4) the following:
``(5) Use of death and prisoner information.--The
Commissioner of Social Security, and the head of any other
agency that obtains information on deaths or incarcerated
individuals directly from the Commissioner of Social Security
pursuant to an agreement under section 205(r) or sections
202(x) and 1611(e) of the Social Security Act (42 U.S.C.
405(r), 405(x), 1382(e)) or the Department of the Treasury's
Do Not Pay program, shall be considered to have satisfied the
requirements of this section as such requirements relate to
payments or to identifying, preventing, or recovering
improper payments in the case of deaths or incarcerated
individuals. Nothing in the preceding sentence shall be
construed as exempting the Commissioner of Social Security or
the head of any other agency that obtains information on
deaths or incarcerated individuals directly from the
Commissioner of Social Security under an agreement under
section 205(r) or sections 202(x) and 1611(e) of the Social
Security Act (42 U.S.C. 405(r), 405(x), 1382(e)) or the
Department of the Treasury's Do Not Pay program from being
subject to any improper payment reporting requirement of the
Director of the Office of Management.''; and
(2) by adding at the end the following:

``SEC. 7. IMPROVING THE USE OF DEATH DATA BY GOVERNMENT
AGENCIES.

``(a) Prompt Reporting of Death Information by the
Department of State and the Department of Defense.--Not later
than 1 year after the date of enactment of this section, the
Secretary of State and the Secretary of Defense, in
coordination with the Commissioner of Social Security, shall
establish a procedure under which each Secretary shall,
promptly and on a regular basis, submit to the Commissioner
information relating to the deaths of individuals. The
Commissioner shall, to the extent feasible, provide for the
use of death information submitted under this subsection for
the purpose specified in clause (i) of section 205(r)(3)(B)
of the Social Security Act (42 U.S.C. 405(r)(3)(B)).
``(b) Guidance by the Office of Management and Budget.--
``(1) Guidance to agencies.--Not later than 6 months after
the date of enactment of this section, and in consultation
with the Council of Inspectors General on Integrity and
Efficiency and the heads of other relevant Federal, State,
and local agencies, and Indian tribes and tribal
organizations, the Director of the Office of Management and
Budget shall issue guidance for each agency or component of
an agency that operates or maintains a database of
information relating to beneficiaries, annuity recipients, or
any purpose described in section 205(r)(3)(B) of the Social
Security Act (42 U.S.C. 405(r)(3)(B)) for which improved data
matching with databases relating to the death of an
individual (in this section referred to as `death databases')
would be relevant and necessary regarding implementation of
this section to provide such agencies or components access to
the death databases no later than 6 months after such date of
enactment.
``(2) Plan to assist states and local agencies and indian
tribes and tribal organizations.--Not later than 1 year after
the date of enactment of this section, the Director of the
Office of Management and Budget shall develop a plan to
assist States and local agencies, and Indian tribes and
tribal organizations, in providing electronically to the
Federal Government records relating to the death of
individuals, which may include recommendations to Congress
for any statutory changes or financial assistance to States
and local agencies and Indian tribes and tribal organizations
that are necessary to ensure States and local agencies and
Indian tribes and tribal organizations can provide such
records electronically. The plan may include recommendations
for the authorization of appropriations or other funding to
carry out the plan.
``(c) Reports.--
``(1) Report to congress on improving data matching
regarding payments to deceased individuals.--Not later than
270 days after the date of enactment of this section, the
Director of the Office of Management and Budget, in
consultation with the heads of other relevant Federal
agencies, and in consultation with States and local agencies,
Indian tribes and tribal organizations, shall submit to
Congress a plan to improve how States and local agencies and
Indian tribes and tribal organizations that provide benefits
under a federally-funded program will improve data matching
with the Federal Government with respect to the death of
individuals who are recipients of such benefits.
``(2) Annual report.--Not later than 1 year after the date
of enactment of this section, and for each of the 4
succeeding years, the Director of the Office of Management
and Budget shall submit to Congress a report regarding the
implementation of this section. The first report submitted
under this paragraph shall include the recommendations of the
Director required under subsection (b)(2).
``(d) Definitions.--In this section, the terms `Indian
tribe' and `tribal organization' have the meanings given
those terms in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b).''.

SEC. 4. AVAILABILITY OF THE DO NOT PAY INITIATIVE TO THE
JUDICIAL AND LEGISLATIVE BRANCHES AND STATES.

Section 5 of the Improper Payments Elimination and Recovery
Improvement Act of 2012 (31 U.S.C. 3321 note), as amended by
section 3, is further amended--
(1) in subsection (b)(3)--
(A) in the paragraph heading, by striking ``by agencies'';
and
(B) by adding at the end the following: ``States and 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 section
202(e) of title 18, United States Code), shall have access
to, and use of, the Do Not Pay Initiative to verify payment
or award eligibility for payments (as defined in section
(2)(g)(3) of the Improper Payments Information Act of 2002,
31 U.S.C. 3321 note) when, with respect to a State, the
Director of the Office of Management and Budget determines
that the Do Not Pay Initiative is appropriately established
for that State and any contractor, subcontractor, or agent of
the State, and, with respect to the judicial and legislative
branches of the United States, when the Director of the
Office of Management and Budget determines that the Do Not
Pay Initiative is appropriately established for the judicial
branch or the legislative branch, as applicable.''; and
(2) in subsection (d)(2)--
(A) in subparagraph (B), by striking ``and'' after the
semicolon;
(B) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(C) by inserting after subparagraph (C) the following:
``(D) may include States and their quasi-government
entities, and the judicial and legislative branches of the
United States (as defined in paragraphs (2) and (3),
respectively, of section 202(e) of title 18, United States
Code) as users of the system in accordance with subsection
(b)(3).''.

SEC. 5. DATA ANALYTICS.

Section 5 of the Improper Payments Elimination and Recovery
Improvement Act of 2012 (31 U.S.C. 3321 note), as amended by
sections 3 and 4, is further amended by adding at the end the
following:
``(h) Report on Improper Payments Data Analysis.--Not later
than 180 days after the date of enactment of the Improper
Payments Agency Cooperation Enhancement Act of 2014, the
Secretary of the Treasury shall submit to Congress a report
which shall include a description of--
``(1) data analytics performed as part of the Do Not Pay
Initiative for the purpose of detecting, preventing, and
recovering improper payments through pre-award, post-award
pre-payment, and post-payment analysis, which shall include a
description of any analysis or investigations incorporating--
``(A) review and data matching of payments and beneficiary
enrollment lists of State programs carried out using Federal
funds for the purposes of identifying eligibility
duplication, residency ineligibility, duplicate payments, or
other potential improper payment issues;
``(B) review of multiple Federal agencies and programs for
which comparison of data could show payment duplication; and
``(C) review of other information the Secretary of the
Treasury determines could prove effective for identifying,
preventing, or recovering improper payments, which may
include investigation or review of information from multiple
Federal agencies or programs; and
``(2) the metrics used in determining whether the analytic
and investigatory efforts have reduced, or contributed to the
reduction of, improper payments or improper awards.''.
______