§3354 — Title 31 Money and Finance | U.S. Code

Summary

Federal agencies must check available records before they pay or award any federal money. At a minimum they must look at things like Social Security death records, exclusion lists, debt and credit checks, and incarceration information. Agencies must use the Do Not Pay Initiative, a government system that runs those database checks and other approved data sources, to help stop improper payments. States, and their contractors or agents, plus the judicial and legislative branches as defined by law, can also use the Do Not Pay Initiative under privacy rules set by the Office of Management and Budget (OMB). Agencies must still make payments when another law requires it, even if the system flags the recipient. The OMB must send Congress an annual report about how well the system cuts improper payments and how often wrong data is found. The earlier “working system” for checking payments stays active and must be used for all agency programs. Agencies may make computer-matching agreements with other agencies to help detect improper payments. A Data Integrity Board must respond to proposed agreements within 60 days. Agreements must end in under 3 years and can be renewed for up to 3 more years during the 3 months before they end. The head of the agency running the system may, with OMB consultation, waive some Privacy Act limits for matching; OMB can issue guidance about waivers. OMB will also work with Social Security, States, and others to improve death data and must report a plan to Congress within 120 days, including a goal of at least daily access to death records.

Title 31, §3354

Money and Finance — Source: USLM XML via OLRC

(a)(1)Each executive agency shall review prepayment and preaward procedures and ensure that a thorough review of available databases with relevant information on eligibility occurs to determine program or award eligibility and prevent improper payments before the release of any Federal funds.

(2)At a minimum and before issuing any payment or award, each executive agency shall review as appropriate the following databases to verify eligibility of the payment and award:

(A)The death records maintained by the Commissioner of Social Security.

(B)The System for Award Management Exclusion Records, formerly known as the Excluded Parties List System, of the General Services Administration.

(C)The Debt Check Database of the Department of the Treasury.

(D)The Credit Alert System or Credit Alert Interactive Voice Response System of the Department of Housing and Urban Development.

(E)The List of Excluded Individuals/Entities of the Office of Inspector General of the Department of Health and Human Services.

(F)Information regarding incarcerated individuals maintained by the Commissioner of Social Security under section 202(x) and 1611(e) of the Social Security Act (42 U.S.C. 402(x), 1382(e)).

(b)(1)There is the Do Not Pay Initiative, which shall include—

(A)use of the databases described in subsection (a)(2); and

(B)use of other databases designated by the Director of the Office of Management and Budget, or the designee of the Director, in consultation with executive agencies and in accordance with paragraph (2).

(2)In making designations of other databases under paragraph (1)(B), the Director of the Office of Management and Budget, or the head of any executive agency designated by the Director, shall—

(A)consider any database that substantially assists in preventing improper payments; and

(B)provide public notice and an opportunity for comment before designating a database under paragraph (1)(B).

(3)(A)For purposes of identifying and preventing improper payments, each executive agency shall have access to, and use of, the Do Not Pay Initiative to verify payment or award eligibility in accordance with subsection (a).

(B)(i)The head of the agency operating the Working System may, in consultation with the Office of Management and Budget, waive the requirements of section 552a(o) of title 5 in any case or class of cases for computer matching activities conducted under this section.

(ii)The Director of the Office of Management and Budget may issue guidance that establishes requirements governing waivers under clause (i).

(C)Each State and any contractor, subcontractor, or agent of a State, including a State auditor or State program responsible for reducing improper payments of a federally funded State-administered program, 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, shall have access to, and use of, the Do Not Pay Initiative for the purpose of verifying payment or award eligibility for payments.

(D)To ensure consistency with the principles of section 552a of title 5 (commonly known as the “Privacy Act of 1974”), the Director of the Office of Management and Budget may issue guidance that establishes privacy and other requirements that shall be incorporated into Do Not Pay Initiative access agreements with States, including 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.

(4)When using the Do Not Pay Initiative, an executive agency shall recognize that there may be circumstances under which the law requires a payment or award to be made to a recipient, regardless of whether that recipient is identified as potentially ineligible under the Do Not Pay Initiative.

(5)The Director of the Office of Management and Budget shall submit to Congress an annual report, which may be included as part of another report submitted to Congress by the Director, regarding the operation of the Do Not Pay Initiative, which shall—

(A)include an evaluation of whether the Do Not Pay Initiative has reduced improper payments or improper awards; and

(B)provide the frequency of corrections or identification of incorrect information.

(c)The working system required to be established under section 5(d) of the Improper Payments Elimination and Recovery Improvement Act of 2012, as in effect on the day before the date of enactment of this section—

(1)shall continue to be in effect on and after the date of enactment of this section; and

(2)shall require each executive agency to review all payments and awards for all programs and activities of that executive agency through the working system.

(d)(1)(A)Except as provided in this paragraph, in accordance with section 552a of title 5 (commonly known as the “Privacy Act of 1974”), the head of each executive agency may enter into computer matching agreements with other heads of executive agencies that allow ongoing data matching, which shall include automated data matching, in order to assist in the detection and prevention of improper payments.

(B)Not later than 60 days after the date on which a proposal for an agreement under subparagraph (A) has been presented to a Data Integrity Board established under section 552a(u) of title 5 for consideration, the Data Integrity Board shall respond to the proposal.

(C)An agreement described in subparagraph (A)—

(i)shall have a termination date of less than 3 years; and

(ii)during the 3-month period ending on the date on which the agreement is scheduled to terminate, may be renewed by the executive agencies entering the agreement for not more than 3 years.

(D)For purposes of this paragraph, section 552a(o)(1) of title 5 shall be applied by substituting “between the source agency and the recipient agency or non-Federal agency or an agreement governing multiple agencies” for “between the source agency and the recipient agency or non-Federal agency” in the matter preceding subparagraph (A).

(E)A justification under section 552a(o)(1)(B) of title 5 relating to an agreement under subparagraph (A) is not required to contain a specific estimate of any savings under the computer matching agreement.

(2)The guidance, rules, and procedures required to be issued, clarified, and established under paragraphs (3) and (4) of section 5(e) of the Improper Payments Elimination and Recovery Improvement Act of 2012, as in effect on the day before the date of enactment of this section—

(A)shall continue to be in effect on and after the date of enactment of this section; and

(B)may be modified as determined appropriate by the Director of the Office of Management and Budget.

(3)The head of each executive agency, in consultation with the Inspector General of the executive agency, shall ensure that any information provided to an individual or entity under this subsection is provided in accordance with protocols established under this subsection.

(4)Nothing in this subsection shall be construed—

(A)to affect the rights of an individual under section 552a(p) of title 5; or

(B)to impede the exercise of an exemption provided to Inspectors General or by an executive agency in coordination with an Inspector General under section 6(j) of the Inspector General Act of 1978 (5 U.S.C. App.).11 See References in Text note below.

(e)(1)In conjunction with the Commissioner of Social Security and in consultation with relevant stakeholders that have an interest in or responsibility for providing the data, and each State, the Director of the Office of Management and Budget shall conduct a study and update the plan required to be established under section 5(g) of the Improper Payments Elimination and Recovery Improvement Act of 2012, as in effect on the day before the date of enactment of this section, for improving the quality, accuracy, and timeliness of death data maintained by the Social Security Administration, including death information reported to the Commissioner under section 205(r) of the Social Security Act (42 U.S.C. 405(r)).

(2)The plan described in this subsection shall include recommended actions by executive agencies to—

(A)increase the quality and frequency of access to the Death Master File and other death data;

(B)achieve a goal of at least daily access as appropriate;

(C)provide for all States and other data providers to use improved and electronic means for providing data;

(D)identify improved methods by executive agencies for determining ineligible payments due to the death of a recipient through proactive verification means; and

(E)address improper payments made by executive agencies to deceased individuals as part of Federal retirement programs.

(3)Not later than 120 days after the date of enactment of this section, the Director of the Office of Management and Budget shall submit a report to Congress on the plan described in this subsection, including recommended legislation.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 5 of the Improper Payments Elimination and Recovery Improvement Act of 2012, referred to in subsecs. (c), (d)(2), and (e)(1), is section 5 of Pub. L. 112–248, which was formerly set out in a note under section 3321 of this title, prior to repeal by Pub. L. 116–117, § 3(a)(3), Mar. 2, 2020, 134 Stat. 133. The date of enactment of this section, referred to in subsecs. (c), (d)(2), and (e)(1), (3), is the date of enactment of Pub. L. 116–117, which was approved Mar. 2, 2020. section 6(j) of the Inspector General Act of 1978, referred to in subsec. (d)(4)(B), is section 6(j) of Pub. L. 95–452, which was set out in the Appendix to Title 5, Government Organization and Employees, and was repealed and restated as section 406(j) of Title 5 by Pub. L. 117–286, §§ 3(b), 7, Dec. 27, 2022, 136 Stat. 4224, 4361.

§3354 Do Not Pay Initiative

Summary

Title 31, §3354

Notes & Related Subsidiaries

Editorial Notes

References in Text

Citations & Metadata