119-s80

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 80 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 80

 To amend title 31, United States Code, to improve the prevention of 
 improper payments, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 January 13, 2025

 Mr. Lankford introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

 A BILL

 To amend title 31, United States Code, to improve the prevention of 
 improper payments, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Safeguarding the Transparency and 
Efficiency of Payments Act'' or the ``STEP Act''.

SEC. 2. IMPROPER PAYMENTS.

    (a) 

=== Definitions. ===
-

    (1) In general.--

Section 3351 of title 31, United States 
 Code, is amended--
        (A) by redesignating paragraphs

    (2) through

    (8) as 
 paragraphs

    (3) through

    (9) , respectively; and
        (B) by inserting after paragraph

    (1) the following:
 ``

    (2) Chief financial officer.--The term `chief financial 
 officer' means--
 ``
        (A) with respect to an executive agency described 
 in 

section 901

    (b) , the Chief Financial Officer of the 
 executive agency appointed under such section; and
 ``
        (B) with respect to an executive agency that is 
 not described in 

section 901

    (b) , the official serving 
 as the senior executive responsible for managing the 
 financial activities of the executive agency.''.

    (2) Conforming amendments.--

Section 3353

    (a)

    (4)
        (B) of title 
 31, United States Code, is amended--
        (A) in clause
            (i) , by striking ``

section 3351

    (2)
        (B) '' and inserting ``

section 3351

    (3)
        (B) '';
        (B) in clause
            (ii) , by striking ``

section 3351

    (2)
            (C) '' and inserting ``

section 3351

    (3)
            (C) '';
            (C) in clause
            (iii) , by striking ``

section 3351

    (2)
            (D) '' and inserting ``

section 3351

    (3)
            (D) ''; and
            (D) in clause
            (vi) , by striking ``

section 3351

    (2)
        (A) '' and inserting ``

section 3351

    (3)
        (A) ''.

    (b) Estimates of Improper Payments and Reports on Actions To Reduce 
Improper Payments.--

Section 3352 of title 31, United States Code, is 
amended--

    (1) in subsection

    (a) --
        (A) in paragraph

    (3) --
            (i) in subparagraph
        (B) , in the matter 
 preceding clause
            (i) , by striking ``paragraph

    (1) '' and inserting ``paragraph

    (1)
        (B) ''; and
            (ii) in subparagraph
            (C) , by striking 
 ``paragraph

    (1) '' each place it appears and 
 inserting ``paragraphs

    (1) and

    (4) ''; and
        (B) by adding at the end the following:
 ``

    (4) New programs and activities.--In addition to the 
 programs and activities identified under paragraph

    (1)
        (B) and 
 subject to paragraph

    (5) , the head of an executive agency shall 
 annually identify as susceptible to significant improper 
 payments any program or activity that--
 ``
        (A) has or is expected to have outlays exceeding 
 $100,000,000 in any one of the first 3 fiscal years of 
 operation; and
 ``
        (B) is in the first 4 years of operation.
 ``

    (5) Exception.--Paragraph

    (4) shall not apply with 
 respect to any program or activity that the head of the 
 relevant executive agency concludes, based on the results of a 
 review conducted under paragraph

    (1) , is not susceptible to 
 significant improper payments.'';

    (2) in subsection
            (c) (1) --
        (A) in the matter preceding subparagraph
        (A) , by 
 striking ``subsection

    (a)

    (1) '' and inserting 
 ``paragraph

    (1) or

    (4) of subsection

    (a) ''; and
        (B) by striking subparagraphs
        (A) and
        (B) and 
 inserting the following:
 ``
        (A) produce a statistically valid estimate of the 
 improper payments made under the program or activity, 
 or an estimate of such improper payments that is 
 otherwise appropriate using a methodology approved by--
 ``
            (i) the Director of the Office of 
 Management and Budget; and
 ``
            (ii) the chief financial officer of the 
 executive agency; and
 ``
        (B) report the estimates described in 
 subparagraph
        (A) in accordance with subsection

    (j) .''; 
 and

    (3) by adding at the end the following:
 ``

    (j) Annual Reports.--Any annual report required to be made by the 
head of an executive agency under this section shall--
 ``

    (1) be included in the materials accompanying the annual 
 financial statement of the executive agency and, as required, 
 in applicable guidance of the Office of Management and Budget; 
 and
 ``

    (2) include a statement by the chief financial officer of 
 the executive agency--
 ``
        (A) certifying the reliability of the executive 
 agency's identification of programs and activities that 
 may be susceptible to significant improper payments 
 under subsection

    (a) ; and
 ``
        (B) describing the actions of the chief financial 
 officer of the executive agency to monitor the 
 development and implementation of any corrective action 
 plans reported under subsection
            (d) .''.
            (c) Financial and Administrative Controls Relating to Fraud and 
Improper Payments.--

Section 3357 of title 31, United States Code, is 
amended by striking subsection
            (d) and inserting the following:
 ``
            (d) Reports.--
 ``

    (1) In general.--For each fiscal year beginning in the 
 first fiscal year after the date of enactment of the 
 Safeguarding the Transparency and Efficiency of Payments Act, 
 and in each of the following 9 fiscal years, the head of each 
 agency shall submit to Congress, in the report containing the 
 annual financial statement of the agency, a report--
 ``
        (A) on the progress of the agency in--
 ``
            (i) implementing--
 ``
            (I) the financial and 
 administrative controls required to be 
 established under subsection
            (c) (1) ;
 ``
            (II) the fraud risk principles in 
 the Standards for Internal Control in 
 the Federal Government of the 
 Government Accountability Office; and
 ``
            (III) Circular A-123 of the 
 Office of Management and Budget with 
 respect to the leading practices for 
 managing fraud risk;
 ``
            (ii) identifying fraud risks and 
 vulnerabilities, including with respect to 
 payroll, beneficiary payments, grants, large 
 contracts, and purchase and travel cards; and
 ``
            (iii) establishing strategies, 
 procedures, and other steps to curb fraud; and
 ``
        (B) that includes information on the status of 
 implementing each of the 11 leading practices 
 identified in the report published by the Government 
 Accountability Office on July 28, 2015, entitled 
 `Framework for Managing Fraud Risks in Federal 
 Programs'.
 ``

    (2) Information in report.--If the annual financial 
 statement of an agency, or an alternative report of the agency 
 included in the annual financial statement, includes 
 information that fulfills the requirements of this subsection, 
 the head of the agency may include a brief statement to that 
 effect in the financial statement or alternative report without 
 duplicating the information required under this subsection in a 
 separate or standalone report.''.

SEC. 3. NO ADDITIONAL FUNDS.

 No additional funds are authorized to be appropriated for the 
purpose of carrying out this Act or the amendments made by this Act.
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