Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Subsidized Stafford Loan Reduced
Interest Rate Extension Act of 2012''.

TITLE I--EXTENSION OF REDUCED INTEREST RATE

SEC. 101. INTEREST RATE EXTENSION.

Section 455(b)(7)(D) of the Higher Education Act of 1965 (20 U.S.C.
1087e(b)(7)(D)) is amended--
(1) in the matter preceding clause (i), by striking ''and
before July 1, 2012,'' and inserting ''and before July 1,
2013,''; and
(2) in clause (v), by striking ''and before July 1, 2012,''
and inserting ''and before July 1, 2013,''.

TITLE II--IMPROPER PAYMENTS ELIMINATION AND RECOVERY IMPROVEMENT

SEC. 201. SHORT TITLE.

This title may be cited as the ''Improper Payments Elimination and
Recovery Improvement Act of 2012''.

SEC. 202. DEFINITION.

In this title, the term ''agency'' means an executive agency
defined under section 105 of title 5, United States Code.

SEC. 203. IMPROVING THE DETERMINATION OF IMPROPER PAYMENTS BY FEDERAL
AGENCIES.

(a) In General.--The Director of the Office of Management and
Budget shall on an annual basis--
(1) identify a list of high-priority Federal programs for
greater levels of oversight and review--
(A) in which the highest dollar value or majority
of governmentwide improper payments occur; or
(B) for which there is a higher risk of improper
payments;
(2) in coordination with the agency responsible for
administering the high-priority program--
(A) establish semi-annual or quarterly targets and
actions for reducing improper payments associated with
each high-priority program; or
(B) if such targets are in effect on the date of
enactment of this Act, establish supplemental targets;
and
(3) determine the entities that have received the greatest
amount of improper payments (or, if improper payments are
identified solely on the basis of a sample, the entities that
have received the greatest amount of improper payments in the
applicable sample).
(b) Report on High-Dollar Improper Payments.--
(1) In general.--Subject to Federal privacy policies and to
the extent permitted by law, each agency on a quarterly basis
shall submit to the Inspector General of that agency, and make
available to the public (including availability through the
Internet), a report on any high-dollar improper payments
identified by the agency.
(2) Contents.--Each report under this subsection--
(A) shall describe--
(i) any action the agency--
(I) has taken or plans to take to
recover improper payments; and
(II) intends to take to prevent
future improper payments; and
(B) shall not include any referrals the agency made
or anticipates making to the Department of Justice, or
any information provided in connection with such
referrals.
(3) Availability of information to inspector general.--
Paragraph (2)(B) shall not prohibit any referral or information
being made available to an Inspector General as otherwise
provided by law.
(4) Assessment.--After the review of each report under this
subsection, the Inspector General shall--
(A) assess the level of risk associated with the
applicable program and the quality of the improper
payment estimates and methodology of the agency;
(B) determine the extent of additional oversight or
financial controls warranted to identify and prevent
improper payments; and
(C) provide the head of the agency with any
recommendations, for modifying any plans of the agency,
including improvements for improper payments
determination and estimation methodology.
(c) Improved Estimates.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Director of the Office of Management
and Budget shall provide guidance to agencies for improving the
estimates of improper payments under the Improper Payments
Information Act of 2002 (31 U.S.C. 3321 note).
(2) Guidance.--Guidance under this subsection shall--
(A) strengthen the estimation process of agencies
by reviewing the underlying validity of payments to
ensure amounts being billed are proper; and
(B) include--
(i) access to more complete data as part of
reviews;
(ii) ending reliance on self-reporting of
improper payments as a replacement for
estimates, and relying on the development of a
robust process to estimate and identify
improper payments across the agency;
(iii) all overpayments in the improper
payments estimate, regardless of whether
improperly paid funds have been or are being
recovered;
(iv) ensuring that--
(I) the review of payments to
employees shall include analysis of
employee data, including pay grade
data, locality pay, and other factors
that affect pay; and
(II) reviews address high-risk or
high-dollar personnel payments,
including travel, pay, and purchase
cards;
(v) reassessing high-risk programs to
better reflect the unique processes,
procedures, and risks of improper payments,
including assessments for each program to
reflect different risk components and better
direct corrective actions; and
(vi) confirming that inter-agency transfers
are proper using a methodology comparable to
that used to assess program level improper
payments.

SEC. 204. IMPROPER PAYMENTS INFORMATION.

Section 2(a)(3)(A)(ii) of the Improper Payments Information Act of
2002 (31 U.S.C. 3321 note) is amended by striking ''with respect to
fiscal years following September 30th of a fiscal year beginning before
fiscal year 2013 as determined by the Office of Management and Budget''
and inserting ''with respect to fiscal year 2014 and each fiscal year
thereafter''.

SEC. 205. DO NOT PAY INITIATIVE.

(a) Prepayment and Preaward Procedures.--
(1) In general.--Each 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, to
the extent permitted by law.
(2) Databases.--At a minimum, each agency shall, before
payment and award, check the following databases (if applicable
and permitted by law) to verify eligibility:
(A) The Death Master File of the Social Security
Administration.
(B) The General Services Administration's Excluded
Parties List System.
(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.
(b) Do Not Pay List.--
(1) Establishment.--There is established the Do Not Pay
List which shall consist of--
(A) the databases described under subsection
(a)(2); and
(B) any other database designated by the Director
of the Office of Management and Budget in consultation
with agencies.
(2) Other databases.--In making designations of other
databases under paragraph (1)(B), the Director of the Office of
Management and Budget shall consider--
(A) any database that assists in preventing
improper payments; and
(B) the database of incarcerated individuals
established under subsection (f).
(3) Access and review by agencies.--For purposes of
identifying and preventing improper payment, each agency shall
have access to, and use of, the Do Not Pay List to determine
payment or award eligibility when the Director of the Office of
Management and Budget determines the Do Not Pay List is
appropriately established for the agency.
(4) Payment otherwise required.--When using the Do Not Pay
List, an 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 on the Do
Not Pay List.
(c) Database Integration Plan.--Not later than 60 days after the
date of enactment of this Act, the Director of the Office of Management
and Budget shall provide to the Congress a plan for--
(1) inclusion of other databases on the Do Not Pay List;
(2) to the extent permitted by law, agency access to the Do
Not Pay List; and
(3) the multilateral data use agreements described under
subsection (e).
(d) Initial Working System.--
(1) Establishment.--Not later than 90 days after the date
of enactment of this Act, the Director of the Office of
Management and Budget shall establish a working system for
prepayment and preaward review that includes the Do Not Pay
List as described under this section.
(2) Initial system.--The working system established under
paragraph (1)--
(A) may be located within an appropriate agency;
(B) shall include not less than 3 agencies;
(C) shall include fraud and improper payments
detection through predictive modeling and other
analytic technologies and other techniques; and
(D) may provide for the use of commercial database
sources, commercial analysis, and other functionality
for payment or award reviews, as determined appropriate
by the Director of the Office of Management and Budget
for verifying Federal data.
(3) Application to all agencies.--Not later than January 1,
2013, each agency shall review all payments and awards for all
programs of that agency through the system established under
this subsection.
(e) Multilateral Data Use Agreements.--
(1) In general.--Not later than 60 days after the date of
enactment of this Act, the Director of the Office of Management
and Budget shall develop a plan to establish a multilateral
data use agreement authority to carry out this section,
including access to databases such as the New Hire Database
under section 453(j) of the Social Security Act (42 U.S.C.
653(j)).
(2) General protocols and security.--
(A) In general.--The multilateral data use
agreements shall be consistent with protocols to ensure
the secure transfer and storage of any data provided to
another entity or individual--
(i) under the provisions of, or amendments
made by, this section; and
(ii) consistent with applicable
information, privacy, security, and disclosure
laws, including--
(I) the regulations promulgated
under the Health Insurance Portability
and Accountability Act of 1996 and
section 552a of title 5, United States
Code; and
(II) subject to any information
systems security requirements under
such laws or otherwise required by the
Director of the Office of Management
and Budget.
(B) Consultation.--The Director of the Office of
Management and Budget shall consult with--
(i) the Council of Inspectors General on
Integrity and Efficiency before implementing
this paragraph; and
(ii) the Secretary of Health and Human
Services, the Social Security Administrator,
and the head of any other agency, as
appropriate.
(f) Development and Access to a Database of Incarcerated
Individuals.--
(1) In general.--The Attorney General shall develop and
maintain a database of individuals incarcerated at Federal and
State facilities.
(2) Availability and update.--The database developed under
this subsection shall be--
(A) available to agencies to carry out this section
and prevent waste, fraud, and abuse; and
(B) updated no less frequently than on a weekly
basis.
(g) Plan To Improve the Social Security Administration Death Master
File.--
(1) Establishment.--In conjunction with the Commissioner of
Social Security and in consultation with stakeholders and the
States, the Director of the Office of Management and Budget,
shall establish a plan for improving the quality 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.5.C. 405(r)).
(2) Actions under plan.--The plan established under this
subsection shall include actions agencies are required to take
to--
(A) increase the quality and frequency of access;
(B) achieve a goal of at least daily access as
appropriate; and
(C) provide for all States to use modern,
electronic means for providing data.
(3) Report.--Not later than 120 days 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 plan
established under this subsection, including recommended
legislation.

SEC. 206. IMPROVING RECOVERY OF IMPROPER PAYMENTS.

(a) In General.--The Director of the Office of Management and
Budget shall determine--
(1) current and historical rates and amounts of recovery of
improper payments (or, in cases in which improper payments are
identified solely on the basis of a sample, recovery rates and
amounts estimated on the basis of the applicable sample),
including specific information of amounts and payments
recovered by recovery audit contractors; and
(2) targets for recovering improper payments, including
specific information on amounts and payments recovered by
recovery audit contractors.
(b) Recovery Audit Contractor Programs.--
(1) Establishment.--Not later than 90 days after the date
of enactment of this Act, the Director of the Office of
Management and Budget shall establish a plan for no less than
10 Recovery Audit Contracting programs for the purpose of
identifying and recovering overpayments and underpayments in 10
agencies.
(2) Review of commercial payments.--Of the programs
established under this subsection, 5 programs shall review
commercial payments by an agency.
(3) Duration.--Any program established under this
subsection shall terminate not more than 3 years after the date
on which the program is established.
(4) Reports.--
(A) In general.--Not later than 3 months after the
completion of a program, the head of the agency
conducting the program shall submit a report on the
program to Congress.
(B) Contents.--Each report under this paragraph
shall include--
(i) a description of the impact of the
program on savings and recoveries; and
(ii) such recommendations as the head of
the agency considers appropriate on extending
or expanding the program.
Student:
Subsidized Stafford Loan Reduced Interest Rate Extension Act of 2012 - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to make the 3.4% interest rate on Direct Stafford loans first disbursed to undergraduate students between July 1, 2011, and July 1, 2012, applicable to Direct Stafford loans first disbursed to undergraduate students between July 1, 2011, and July 1, 2013.

Improper Payments Elimination and Recovery ImprovementAct of 2012 - Requires the Director of the Office of Management and Budget (OMB) to: (1) identify, on an annual basis, a list of high-priority federal programs for greater levels of oversight and review of improper payments; (2)coordinate withagencies responsible for administering high-priority programs to establish semi-annual or quarterly targets and actions for reducing improper payments;and (3) provide guidance to agencies for improving estimates of improper payments.

Requires federal agencies to: (1) make quarterly reports to their Inspectors General on any high-dollar improper payments identified by such agencies, and (2) review prepayment and preaward procedures and available databases to determine program or award eligibility and prevent improper payments before releasing any federal funds. Establishes a Do Not Pay List based on information from databases maintained by the federal government, includingthe database of the Social Security Administration (SSA) reporting deaths of Social Security recipients.

Requires the Director to: (1) determine the current and historical rates and amounts of recovery of improper payments and targets for recovering improper payments, and (2) establish a plan for at least 10 Recovery Audit Contracting programs to identify and recover overpayments and underpayments in 10 agencies.