H.R. 8464 — what changed

changed “3337. Authority to pause payments for further review and segment paymentscorrective action

changed “(a) Agency obligation To to pause disbursement requests for corrective action—The head of an agency that administers a federally funded financial assistance or public benefit program shall take a corrective action to temporarily delay, condition, or segment a disbursement request before the certification of a payment voucher under section 3325 if, as determined by an official designated by the head of the agency, the agency—

changed “(1) has sufficient reason to determine that the payment presents an elevated risk of fraud based on a fraud-risk indicator or an improper payment resulting in financial loss to the Government as estimated under the requirements of section 3352; or3352 in accordance with the statutorily-defined eligibility requirements or other legally-established condition of the program for a payee to be eligible to receive payment;

changed “(2) has been notified sufficient reason to determine, based on a notification by the relevant State or local government official in the case of an order a payment from Federal funds disbursed by a State or local government under a State-administered and federally-funded program, that the Secretary payment presents an elevated risk of fraud based on a fraud-risk indicator or an improper payment resulting in financial loss to the Treasury described Government as estimated under subsection (b).the requirements of section 3352 in accordance with the statutorily-defined eligibility requirements or other legally-established condition of the program for a payee to be eligible to receive payment; or

changed “(b) Treasury obligation To return payment voucher and issue corrective action order—Except where otherwise required by law, the Secretary of the Treasury shall notify the relevant certifying official “(3) has been notified of an order to return a certified payment voucher submitted to a disbursing official under section 3325 pursuant to the requirements of this section and issue a corrective action order to the head of an agency if from the Secretary of the Treasury determines—described under subsection (b).

changed “(1) “(b) Treasury obligation to return payment voucher and issue corrective action order—Except where otherwise required by law, the Secretary shall promptly notify the relevant certifying official of an order to return a certified payment voucher submitted to a disbursing official under section 3325 and issue a corrective action order to the head of an agency not later than 2 days after the Secretary makes a determination has been made that in accordance with the statutorily-defined eligibility requirements or other legally-established condition of the program for a payee to be eligible to receive payment that such payment presents an elevated risk of fraud-based fraud based on a fraud-risk indicator or an improper payment resulting in financial loss to the Government based on an output of the Do Not Pay system under subchapter IV; orsection 3354.

changed “(2) a payment payee has been flagged in the Do Not Pay system, as prescribed in guidance prepared “(c) Agency documentation and time-limited corrective action—An action taken by the Secretary head of the Treasury, or another Treasury administered payment, account, or payee validation program or service.an agency under subsection (a) shall—

changed “(c) Agency documentation and time-Limited corrective action—An action taken by “(1) be based on an agency under subsection (a) shall—objective, documented fraud-risk indicator;

removed “(1) be based on objective, documented fraud-risk indicator;

“(2) be narrowly applied to the portion of the payment presenting the elevated risk; and

added “(3) be limited in duration to the minimum period necessary, as determined by the head of the agency, to verify eligibility of the payee or accuracy of the payment per any program requirement associated with the payment or as stipulated under law.

changed “(3) be limited in duration to the minimum period of “(d) Payee notification and time necessary as determined by the agency to verify eligibility limit of the payee paused disbursement requests—With respect to a disbursement request that has been delayed, conditioned, or accuracy segmented pursuant to subsection (a) or a payment voucher that is returned pursuant subsection (b), the head of the payment per agency shall take the program requirements or as stipulated under another law.following actions:

changed “(d) Payee notification and time limit of paused disbursement requests—With respect “(1) Promptly provide to the payee (not later than 2 days after a disbursement request that has been delayed pursuant to determination under subsection (a) or a payment voucher that is returned pursuant subsection (b), the head of notification to the agency shall take the following actions in accordance with any the regulations issued under subsection (i) along with any clarifying guidance issued by the Secretary of the Treasury (b)), as appropriate, and for a case in consultation with the Director of which the Office of Management payment from Federal funds disbursed by a State or local government under a State-administered and Budget:federally-funded program also provides to such relevant State or local government official, a notification that—

removed “(1) Provide prompt notice to the payee, as appropriate, including a notification that—

“(A) a disbursement has been temporarily paused, conditioned, or segmented;

added “(B) identifies the nature of the fraud-risk indicator or improper payment relied upon by the agency to make the corrective action determination under subsection (a) or notification to the agency under subsection (b); and

changed “(B) identifies the nature of the fraud-risk indicator relied upon by “(C) outlines the agency to make process for the determination; andcorrective action review period.

changed “(C) outline the “(2) Use a process tailored to the specific requirements and design of the agency program for a payee, or the State or local government described under paragraph (1), to contest any factual inaccuracy or provide clarifying information during the corrective action review period.

changed “(2) Establish “(3) Issue such payment not later than 30 days after a process tailored determination to take a corrective action is made by the specific requirements and design head of the agency program for under subsection (a) or the agency was notified by the Secretary under subsection (b) of a corrective action order, but not later than 7 days after the date on which the payee to contest any factual inaccuracy or provide clarifying information during contests the corrective action review period.under the process established pursuant to paragraph (2), if the head of the agency determines that the payment does not present an elevated risk of fraud or an improper payment resulting in financial loss to the Government.

changed “(3) Issue such payment not later than 45 days after “(e) Segmentation of low-risk payments—To the determination was made or maximum extent practicable, the head of each agency was notified, but not later than 7 days after the date on which the payee contests the shall allow a routine, historically consistent payment amount to proceed while temporarily holding an anomalous, unusually large, or high-risk portion of a payment, or class of payments, pending review and resolution of an agency corrective action determination under the process established pursuant to paragraph (2).subsection (a) or a corrective action order under subsection (b).

changed “(e) Segmentation “(f) Exemptions for law enforcement activities—The head of low-Risk payments—To an agency, in consultation with the maximum extent practicable, Secretary and the head Attorney General, may waive any provision in this section on a case-by-case basis if notified of each agency shall allow or instructed by a routine, historically consistent payment amount to proceed while temporarily holding Federal law enforcement authority, including an anomalous, unusually large, agency Inspector General, that the action will jeopardize an active criminal investigation or high-risk portion of a payment, legal proceeding related to an effort to defraud the Federal Government or class of payments, pending review and resolution violate sections 3729 through 3733 of a corrective action.title 31 (commonly known as the “False Claims Act”).

removed “(f) Exemptions for law enforcement activities—The head of an agency, in consultation with the Secretary of the Treasury and the Attorney General, may waive any provision in this section on a case-by-case basis if notified of or instructed by a Federal law enforcement authority, including an agency Inspector General, that the action will jeopardize an active criminal investigation or legal proceeding related to an effort to defraud the Federal Government or violate the False Claims Act (31 U.S.C. 3729 et seq.).

“(g) Limitation of liability—No officer or employee of the Federal Government shall be personally liable for an action taken in good faith under this section. An action taken under this section may not constitute a final determination of eligibility, liability, or wrongdoing on the part of a payee.

added “(h) Rule of construction for program authorizing statute—Nothing in this section may be construed to supersede any other provision of law with respect to any statute that authorizes the payment or program the payment is made under.

changed “(h) Rule “(i) Regulations—Not later than 180 days after the date of construction for program authorizing statute—Nothing in this section may be construed to supersede any other provision the enactment of law this section, and annually thereafter, the Secretary, in consultation with respect the Director, shall issue regulations and establish procedures to administer the statute requirements of this section that authorizes shall be published in the payment or program Federal Register that, at a minimum, specify the payment is made under.following:

changed “(i) Regulations—Not later than 180 days after the date of the enactment of this section, and annually thereafter, the Secretary of the Treasury, in consultation with the Director of the Office “(1) The minimum seniority of Management and Budget, shall issue regulations and establish procedures an agency official designated under subsection (a) authorized to administer the requirements of this section that shall be published in the Federal Register.make a determination to issue a corrective action.

changed “(j) Routine, historically consistent payment amount defined—In this section, “(2) The procedures by which the term “routine, historically consistent payment amount” means a payment amount that is consistent with previous payment history Secretary of the payee, established program Treasury will use patterns, the Do Not Pay system under section 3354 to make a determination under subsection (b) in accordance with the statutorily-defined eligibility requirements or other objective benchmarks determined by the certifying agency.legally-established condition of a program for a payee to be eligible to receive payment.

changed “(k) Fraud-Risk indicator defined—In this section, the term “fraud-risk indicator” means “(3) The procedure for an objective data point or analytic signal that indicates agency to dispute an anomalous order to return a certified payment pattern or increase in voucher and appeal a related corrective action order under subsection (b) to the volume of Fiscal Assistant Secretary, which shall at a payment amount, minimum include a verified data mismatch, network or behavioral anomaly, or match identified by requirement for the Do Not Pay system under section 3354 and any other payment, account, and payee validation program agency to receive a response not later than five days after making such a dispute or service provided by appeal to the Department of the Treasury that would result in financial loss to the government.”Treasury.

added “(4) The minimum information requirements of a notification required under subsection (d)(1).

added “(j) Definitions—In this section:

added “(1) Director—The term Director means the Director of the Office of Management and Budget.

added “(2) 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 amount, a verified data mismatch, network or behavioral anomaly, or match identified by the Do Not Pay system under section 3354 and any payment, account, or payee validation program or service administered by the Secretary that would result in financial loss to the Government.

added “(3) Routine, historically consistent payment amount—The term routine, historically consistent payment amount means a payment amount that is consistent with previous payment history of the payee, established program use patterns, or other objective benchmarks determined by the certifying agency.

added “(4) Secretary—The term Secretary means the Secretary of the Treasury.”

added “(6) complying with an order to take a corrective action to temporarily delay, condition, or segment a disbursement request pursuant to section 3337.”

added “(C) the certification was made as a result of a good faith effort to comply with the requirements of section 3337.”