PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 401 

Public Law 112–40 

112th Congress 

An Act 

To extend the Generalized System of Preferences, 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. EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES. 

(a) EXTENSION.—Section 505 of the Trade Act of 1974 (19 U.S.C. 

2465) is amended by striking ‘‘December 31, 2010’’ and inserting 

‘‘July 31, 2013’’. 

(b) EFFECTIVE DATE.— 

(1) IN GENERAL.—The amendment made by subsection (a) 

shall apply to articles entered on or after the 15th day after 

the date of the enactment of this Act. 

(2) RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS

AND RELIQUIDATIONS.— 

(A) IN GENERAL.—Notwithstanding section 514 of the 

Tariff Act of 1930 (19 U.S.C. 1514) or any other provision 

of law and subject to subparagraph (B), any entry of an 

article to which duty-free treatment or other preferential 

treatment under title V of the Trade Act of 1974 would 

have applied if the entry had been made on December 

31, 2010, that was made— 

(i) after December 31, 2010; and 

(ii) before the 15th day after the date of the enactment of this Act, 

shall be liquidated or reliquidated as though such entry 

occurred on the 15th day after the date of the enactment 

of this Act. 

(B) REQUESTS.—A liquidation or reliquidation may be 

made under subparagraph (A) with respect to an entry 

only if a request therefor is filed with U.S. Customs and 

Border Protection not later than 180 days after the date 

of the enactment of this Act that contains sufficient 

information to enable U.S. Customs and Border Protection— 

(i) to locate the entry; or 

(ii) to reconstruct the entry if it cannot be located. 

(C) PAYMENT OF AMOUNTS OWED.—Any amounts owed 

by the United States pursuant to the liquidation or 

reliquidation of an entry of an article under subparagraph 

(A) shall be paid, without interest, not later than 90 days 

after the date of the liquidation or reliquidation (as the 

case may be). 

Deadlines. 

19 USC 2465 

note. 

Oct. 21, 2011 

[H.R. 2832] 


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125 STAT. 402 PUBLIC LAW 112–40—OCT. 21, 2011 

(3) DEFINITION.—As used in this subsection, the terms 

‘‘enter’’ and ‘‘entry’’ include a withdrawal from warehouse for 

consumption. 

SEC. 2. MERCHANDISE PROCESSING FEES. 

For the period beginning on October 1, 2011, and ending on 

June 30, 2014, section 13031(a)(9) of the Consolidated Omnibus 

Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) shall be 

applied and administered— 

(1) in subparagraph (A), by substituting ‘‘0.3464’’ for ‘‘0.21’’; 

and 

(2) in subparagraph (B)(i), by substituting ‘‘0.3464’’ for 

‘‘0.21’’. 

TITLE II—TRADE ADJUSTMENT 

ASSISTANCE 

SEC. 200. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This title may be cited as the ‘‘Trade Adjustment Assistance Extension Act of 2011’’. 

(b) TABLE OF CONTENTS.—The table of contents for this title 

is as follows: 

TITLE II—TRADE ADJUSTMENT ASSISTANCE 

Sec. 200. Short title; table of contents. 

Subtitle A—Extension of Trade Adjustment Assistance 

PART I—APPLICATION OF PROVISIONS RELATING TO TRADE ADJUSTMENT ASSISTANCE

Sec. 201. Application of provisions relating to trade adjustment assistance. 

PART II—TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

Sec. 211. Group eligibility requirements. 

Sec. 212. Reductions in waivers from training. 

Sec. 213. Limitations on trade readjustment allowances. 

Sec. 214. Funding of training, employment and case management services, and job 

search and relocation allowances. 

Sec. 215. Reemployment trade adjustment assistance. 

Sec. 216. Program accountability. 

Sec. 217. Extension. 

PART III—OTHER ADJUSTMENT ASSISTANCE

Sec. 221. Trade adjustment assistance for firms. 

Sec. 222. Trade adjustment assistance for communities. 

Sec. 223. Trade adjustment assistance for farmers. 

PART IV—GENERAL PROVISIONS

Sec. 231. Applicability of trade adjustment assistance provisions. 

Sec. 232. Termination provisions. 

Sec. 233. Sunset provisions. 

Subtitle B—Health Coverage Improvement 

Sec. 241. Health care tax credit. 

Sec. 242. TAA pre-certification period rule for purposes of determining whether 

there is a 63-day lapse in creditable coverage. 

Sec. 243. Extension of COBRA benefits for certain TAA-eligible individuals and 

PBGC recipients. 

Subtitle C—Offsets 

PART I—UNEMPLOYMENT COMPENSATION PROGRAM INTEGRITY

Sec. 251. Mandatory penalty assessment on fraud claims. 

Sec. 252. Prohibition on noncharging due to employer fault. 

19 USC 2101 

note. 

Trade 

Adjustment 

Assistance 

Extension Act 

of 2011. 

Time period. 

Applicability. 

19 USC 58c note. 


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PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 403 

Sec. 253. Reporting of rehired employees to the directory of new hires. 

PART II—ADDITIONAL OFFSETS

Sec. 261. Improvements to contracts with Medicare quality improvement organizations (QIOs) in order to improve the quality of care furnished to Medicare beneficiaries. 

Sec. 262. Rates for merchandise processing fees. 

Sec. 263. Time for remitting certain merchandise processing fees. 

Subtitle A—Extension of Trade Adjustment 

Assistance 

PART I—APPLICATION OF PROVISIONS RELATING TO TRADE ADJUSTMENT ASSISTANCE 

SEC. 201. APPLICATION OF PROVISIONS RELATING TO TRADE ADJUSTMENT ASSISTANCE. 

(a) REPEAL OF SNAPBACK.—Section 1893 of the Trade and 

Globalization Adjustment Assistance Act of 2009 (Public Law 111– 

5; 123 Stat. 422) is repealed. 

(b) APPLICABILITY OF CERTAIN PROVISIONS.—Except as otherwise provided in this subtitle, the provisions of chapters 2 through 

6 of title II of the Trade Act of 1974, as in effect on February 

12, 2011, and as amended by this subtitle, shall— 

(1) take effect on the date of the enactment of this Act; 

and 

(2) apply to petitions for certification filed under chapter 

2, 3, or 6 of title II of the Trade Act of 1974 on or after 

such date of enactment. 

(c) REFERENCES.—Except as otherwise provided in this subtitle, 

whenever in this subtitle an amendment or repeal is expressed 

in terms of an amendment to, or repeal of, a provision of chapters 

2 through 6 of title II of the Trade Act of 1974, the reference 

shall be considered to be made to a provision of any such chapter, 

as in effect on February 12, 2011. 

PART II—TRADE ADJUSTMENT ASSISTANCE 

FOR WORKERS 

SEC. 211. GROUP ELIGIBILITY REQUIREMENTS. 

(a) IN GENERAL.—Section 222 of the Trade Act of 1974 (19 

U.S.C. 2272) is amended— 

(1) by striking subsection (b); 

(2) by redesignating subsections (c) through (f) as subsections (b) through (e), respectively; 

(3) in paragraph (2) of subsection (b), as redesignated, 

by striking ‘‘(d)’’ and inserting ‘‘(c)’’; 

(4) in subsection (c), as redesignated, by striking paragraph 

(5); and 

(5) in paragraph (2) of subsection (d), as redesignated, 

by striking ‘‘, (b), or (c)’’ and inserting ‘‘or (b)’’. 

(b) CONFORMING AMENDMENTS.—Section 247 of the Trade Act 

of 1974 (19 U.S.C. 2319) is amended— 

(1) in paragraph (3)— 

(A) in the matter preceding subparagraph (A), by 

striking ‘‘Subject to section 222(d)(5), the term’’ and 

inserting ‘‘The term’’; and 

Effective date. 

19 USC 2271 and 

note prec., 

2272–2275, 

2291–2298, 2311, 

2315–2323, 2341, 

2343–2352, 

2354–2356, 

2371–2374, 2393, 

2395, 2397a, 

2401–2401b, 

2401e–2401g. 

19 USC 2271 and 

note prec., 

2272–2275, 

2291–2298, 2311, 

2315–2323, 2341, 

2343–2352, 

2354–2356, 

2371–2374, 2393, 

2395, 2397a, 

2401–2401b, 

2401e–2401g. 

19 USC 2271 

note prec. 


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125 STAT. 404 PUBLIC LAW 112–40—OCT. 21, 2011 

(B) in subparagraph (A), by striking ‘‘, service sector 

firm, or public agency’’ and inserting ‘‘or service sector 

firm’’; 

(2) by striking paragraph (7); and 

(3) by redesignating paragraphs (8) through (19) as paragraphs (7) through (18), respectively. 

SEC. 212. REDUCTIONS IN WAIVERS FROM TRAINING. 

(a) IN GENERAL.—Section 231(c) of the Trade Act of 1974 (19 

U.S.C. 2291(c)) is amended— 

(1) in paragraph (1)— 

(A) by striking subparagraphs (A), (B), and (C); and 

(B) by redesignating subparagraphs (D), (E), and (F) 

as subparagraphs (A), (B), and (C), respectively; and 

(2) in paragraph (3)(B), by striking ‘‘(D), (E), or (F)’’ and 

inserting ‘‘or (C)’’. 

(b) GOOD CAUSE EXCEPTION.—Section 234(b) of the Trade Act 

of 1974 (19 U.S.C. 2294(b)) is amended to read as follows: 

‘‘(b) SPECIAL RULE ON GOOD CAUSE FOR WAIVER OF TIME LIMITS

OR LATE FILING OF CLAIMS.—The Secretary shall establish procedures and criteria that allow for a waiver for good cause of the 

time limitations with respect to an application for a trade readjustment allowance or enrollment in training under this chapter.’’. 

SEC. 213. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES. 

Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is 

amended— 

(1) in subsection (a)— 

(A) in paragraph (2), in the matter preceding subparagraph (A), by striking ‘‘(or’’ and all that follows through 

‘‘period)’’; and 

(B) in paragraph (3)— 

(i) in the matter preceding subparagraph (A), by 

striking ‘‘78’’ and inserting ‘‘65’’; and 

(ii) by striking ‘‘91-week period’’ each place it 

appears and inserting ‘‘78-week period’’; and 

(2) by amending subsection (f) to read as follows: 

‘‘(f) PAYMENT OF TRADE READJUSTMENT ALLOWANCES TO COM- PLETE TRAINING.—Notwithstanding any other provision of this section, in order to assist an adversely affected worker to complete 

training approved for the worker under section 236 that leads 

to the completion of a degree or industry-recognized credential, 

payments may be made as trade readjustment allowances for not 

more than 13 weeks within such period of eligibility as the Secretary 

may prescribe to account for a break in training or for justifiable 

cause that follows the last week for which the worker is otherwise 

entitled to a trade readjustment allowance under this chapter if— 

‘‘(1) payment of the trade readjustment allowance for not 

more than 13 weeks is necessary for the worker to complete 

the training; 

‘‘(2) the worker participates in training in each such week; 

and 

‘‘(3) the worker— 

‘‘(A) has substantially met the performance benchmarks established as part of the training approved for 

the worker; 

‘‘(B) is expected to continue to make progress toward 

the completion of the training; and 

Time period. 

Procedures. 


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PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 405 

‘‘(C) will complete the training during that period of 

eligibility.’’. 

SEC. 214. FUNDING OF TRAINING, EMPLOYMENT AND CASE MANAGEMENT SERVICES, AND JOB SEARCH AND RELOCATION 

ALLOWANCES. 

(a) IN GENERAL.—Section 236(a)(2) of the Trade Act of 1974 

(19 U.S.C. 2296(a)(2)) is amended— 

(1) by inserting ‘‘and sections 235, 237, and 238’’ after 

‘‘to carry out this section’’ each place it appears; 

(2) in subparagraph (A)— 

(A) in the matter preceding clause (i), by striking ‘‘of 

payments that may be made under paragraph (1)’’ and 

inserting ‘‘of funds available to carry out this section and 

sections 235, 237, and 238’’; and 

(B) by striking clauses (i) and (ii) and inserting the 

following: ‘‘(i) $575,000,000 for each of fiscal years 2012 and 

2013; and ‘‘(ii) $143,750,000 for the 3-month period beginning 

on October 1, 2013, and ending on December 31, 2013.’’; 

(3) in subparagraph (C)(ii)(V), by striking ‘‘relating to the 

provision of training under this section’’ and inserting ‘‘to carry 

out this section and sections 235, 237, and 238’’; and 

(4) in subparagraph (E), by striking ‘‘to pay the costs of 

training approved under this section’’ and inserting ‘‘to carry 

out this section and sections 235, 237, and 238’’. 

(b) LIMITATIONS ON ADMINISTRATIVE EXPENSES AND EMPLOY- MENT AND CASE MANAGEMENT SERVICES.— (1) IN GENERAL.—Section 235A of the Trade Act of 1974 

(19 U.S.C. 2295a) is amended— 

(A) in the section heading, by striking ‘‘FUNDING FOR’’ 

and inserting ‘‘LIMITATIONS ON’’; and 

(B) by striking subsections (a) and (b) and inserting 

the following: 

‘‘Of the funds made available to a State to carry out sections 

235 through 238 for a fiscal year, the State shall use— 

‘‘(1) not more than 10 percent for the administration of 

the trade adjustment assistance for workers program under 

this chapter, including for— 

‘‘(A) processing waivers of training requirements under 

section 231; 

‘‘(B) collecting, validating, and reporting data required 

under this chapter; and 

‘‘(C) providing reemployment trade adjustment assistance under section 246; and 

‘‘(2) not less than 5 percent for employment and case 

management services under section 235.’’. 

(2) CLERICAL AMENDMENT.—The table of contents for the 

Trade Act of 1974 is amended by striking the item relating 

to section 235A and inserting the following: 

‘‘Sec. 235A. Limitations on administrative expenses and employment and case management services.’’. 

(c) REALLOTMENT OF FUNDS.—Section 245 of the Trade Act 

of 1974 (19 U.S.C. 2317) is amended by adding at the end the 

following: 

‘‘(c) REALLOTMENT OF FUNDS.— 


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125 STAT. 406 PUBLIC LAW 112–40—OCT. 21, 2011 

‘‘(1) IN GENERAL.—The Secretary may— 

‘‘(A) reallot funds that were allotted to any State to 

carry out sections 235 through 238 and that remain unobligated by the State during the second or third fiscal year 

after the fiscal year in which the funds were provided 

to the State; and 

‘‘(B) provide such realloted funds to States to carry 

out sections 235 through 238 in accordance with procedures 

established by the Secretary. 

‘‘(2) REQUESTS BY STATES.—In establishing procedures 

under paragraph (1)(B), the Secretary shall include procedures 

that provide for the distribution of realloted funds under that 

paragraph pursuant to requests submitted by States in need 

of such funds. 

‘‘(3) AVAILABILITY OF AMOUNTS.—The reallotment of funds 

under paragraph (1) shall not extend the period for which 

such funds are available for expenditure.’’. 

(d) JOB SEARCH ALLOWANCES.—Section 237 of the Trade Act 

of 1974 (19 U.S.C. 2297) is amended— 

(1) in subsection (a)(1)— 

(A) by striking ‘‘An adversely affected worker’’ and 

inserting ‘‘Each State may use funds made available to 

the State to carry out sections 235 through 238 to allow 

an adversely affected worker’’; and 

(B) by striking ‘‘may’’ and inserting ‘‘to’’; 

(2) in subsection (b)— 

(A) in paragraph (1)— 

(i) by striking ‘‘An’’ and inserting ‘‘Any’’; and 

(ii) by striking ‘‘all necessary job search expenses’’ 

and inserting ‘‘not more than 90 percent of the necessary job search expenses of the worker’’; and 

(B) in paragraph (2), by striking ‘‘$1,500’’ and inserting 

‘‘$1,250’’; and 

(3) in subsection (c), by striking ‘‘the Secretary shall’’ and 

inserting ‘‘a State may’’. 

(e) RELOCATION ALLOWANCES.—Section 238 of the Trade Act 

of 1974 (19 U.S.C. 2298) is amended— 

(1) in subsection (a)(1)— 

(A) by striking ‘‘Any adversely affected worker’’ and 

inserting ‘‘Each State may use funds made available to 

the State to carry out sections 235 through 238 to allow 

an adversely affected worker’’; and 

(B) by striking ‘‘may file’’ and inserting ‘‘to file’’; and 

(2) in subsection (b)— 

(A) in the matter preceding paragraph (1)— 

(i) by striking ‘‘The’’ and inserting ‘‘Any’’; and 

(ii) by striking ‘‘includes’’ and inserting ‘‘shall 

include’’; 

(B) in paragraph (1), by striking ‘‘all’’ and inserting 

‘‘not more than 90 percent of the’’; and 

(C) in paragraph (2), by striking ‘‘$1,500’’ and inserting 

‘‘$1,250’’. 

(f) CONFORMING AMENDMENTS.—Section 236 of the Trade Act 

of 1974 (19 U.S.C. 2296) is amended— 

(1) in subsection (b), in the first sentence, by striking 

‘‘approppriate’’ and inserting ‘‘appropriate’’; and 


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PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 407 

(2) by striking subsection (g) and redesignating subsection 

(h) as subsection (g). 

SEC. 215. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE. 

(a) IN GENERAL.—Section 246(a) of the Trade Act of 1974 (19 

U.S.C. 2318(a)) is amended— 

(1) in paragraph (3)(B)(ii), by striking ‘‘$55,000’’ and inserting ‘‘$50,000’’; and 

(2) in paragraph (5)— (A) in subparagraph (A)(i), by striking ‘‘$12,000’’ and inserting ‘‘$10,000’’; and (B) in subparagraph (B)(i), by striking ‘‘$12,000’’ and inserting ‘‘$10,000’’. 

(b) EXTENSION.—Section 246(b)(1) of the Trade Act of 1974 

(19 U.S.C. 2318(b)(1)) is amended by striking ‘‘February 12, 2011’’ 

and inserting ‘‘December 31, 2013’’. 

SEC. 216. PROGRAM ACCOUNTABILITY. 

(a) CORE INDICATORS OF PERFORMANCE.— (1) IN GENERAL.—Section 239(j)(2)(A) of the Trade Act of 

1974 (19 U.S.C. 2311(j)(2)(A)) is amended to read as follows: 

‘‘(A) IN GENERAL.—The core indicators of performance 

described in this paragraph are— 

‘‘(i) the percentage of workers receiving benefits 

under this chapter who are employed during the first 

or second calendar quarter following the calendar 

quarter in which the workers cease receiving such 

benefits; 

‘‘(ii) the percentage of such workers who are 

employed during the 2 calendar quarters following the 

earliest calendar quarter during which the worker was 

employed as described in clause (i); 

‘‘(iii) the average earnings of such workers who 

are employed during the 2 calendar quarters described 

in clause (ii); and 

‘‘(iv) the percentage of such workers who obtain 

a recognized postsecondary credential, including an 

industry-recognized credential, or a secondary school 

diploma or its recognized equivalent if combined with 

employment under clause (i), while receiving benefits 

under this chapter or during the 1-year period after 

such workers cease receiving such benefits.’’. 

(2) EFFECTIVE DATE.—The amendment made by paragraph 

(1) shall— 

(A) take effect on October 1, 2011; and 

(B) apply with respect to agreements under section 

239 of the Trade Act of 1974 (19 U.S.C. 2311) entered 

into before, on, or after October 1, 2011. 

(b) COLLECTION AND PUBLICATION OF DATA.— 

(1) IN GENERAL.—Section 249B(b) of the Trade Act of 1974 

(19 U.S.C. 2323(b)) is amended— 

(A) in paragraph (2)— 

(i) in subparagraph (B), by inserting ‘‘(including 

such allowances classified by payments under paragraphs (1) and (3) of section 233(a), and section 233(f), 

respectively) and payments under section 246’’ after 

‘‘readjustment allowances’’; and 

(ii) by adding at the end the following: 

Applicability. 

19 USC 2311 

note. 


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125 STAT. 408 PUBLIC LAW 112–40—OCT. 21, 2011 

‘‘(D) The average number of weeks trade readjustment 

allowances were paid to workers. 

‘‘(E) The number of workers who report that they have 

received benefits under a prior certification issued under 

this chapter in any of the 10 fiscal years preceding the 

fiscal year for which the data is collected under this section.’’; 

(B) in paragraph (3)— 

(i) in subparagraph (A), by inserting ‘‘training 

leading to an associate’s degree, remedial education, 

prerequisite education,’’ after ‘‘distance learning,’’; 

(ii) by amending subparagraph (B) to read as follows: 

‘‘(B) The number of workers who complete training 

approved under section 236 who were enrolled in prelayoff training or part-time training at any time during 

that training.’’; 

(iii) in subparagraph (C), by inserting ‘‘, and the 

average duration of training that does not include 

remedial or prerequisite education’’ after ‘‘training’’; 

(iv) in subparagraph (E), by striking ‘‘duration’’ 

and inserting ‘‘average duration’’; and 

(v) in subparagraph (F), by inserting ‘‘and the average duration of the training that was completed by 

such workers’’ after ‘‘training’’; and 

(C) in paragraph (4)— 

(i) by redesignating subparagraph (B) as subparagraph (D); and 

(ii) by inserting after subparagraph (A) the following: 

‘‘(B) A summary of the data on workers in the quarterly 

reports required under section 239(j) classified by the age, 

pre-program educational level, and post-program credential 

attainment of the workers. 

‘‘(C) The average earnings of workers described in section 239(j)(2)(A)(i) in the second, third, and fourth calendar 

quarters following the calendar quarter in which such 

workers cease receiving benefits under this chapter, 

expressed as a percentage of the average earnings of such 

workers in the 3 calendar quarters before the calendar 

quarter in which such workers began receiving benefits 

under this chapter.’’; and 

(D) by adding at the end the following: 

‘‘(6) DATA ON SPENDING.— 

‘‘(A) The total amount of funds used to pay for trade 

readjustment allowances, in the aggregate and by each 

State. 

‘‘(B) The total amount of the payments to the States 

to carry out sections 235 through 238 used for training, 

in the aggregate and for each State. 

‘‘(C) The total amount of payments to the States to 

carry out sections 235 through 238 used for the costs of 

administration, in the aggregate and for each State. 

‘‘(D) The total amount of payments to the States to 

carry out sections 235 through 238 used for job search 

and relocation allowances, in the aggregate and for each 

State.’’. 


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PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 409 

(2) EFFECTIVE DATE.—Not later than October 1, 2012, the 

Secretary of Labor shall update the system required by section 

249B(a) of the Trade Act of 1974 (19 U.S.C. 2323(a)) to include 

the collection of and reporting on the data required by the 

amendments made by paragraph (1). 

(3) ANNUAL REPORT.—Section 249B(d) of the Trade Act 

of 1974 (19 U.S.C. 2323(d)) is amended by striking ‘‘December 

15’’ and inserting ‘‘February 15’’. 

SEC. 217. EXTENSION. 

Section 245(a) of the Trade Act of 1974 (19 U.S.C. 2317(a)) 

is amended by striking ‘‘February 12, 2011’’ and inserting 

‘‘December 31, 2013’’. 

PART III—OTHER ADJUSTMENT ASSISTANCE 

SEC. 221. TRADE ADJUSTMENT ASSISTANCE FOR FIRMS. 

(a) ANNUAL REPORT.— 

(1) IN GENERAL.—Chapter 3 of title II of the Trade Act 

of 1974 (19 U.S.C. 2341 et seq.) is amended by inserting after 

section 255 the following: 

‘‘SEC. 255A. ANNUAL REPORT ON TRADE ADJUSTMENT ASSISTANCE 

FOR FIRMS. 

‘‘(a) IN GENERAL.—Not later than December 15, 2012, and 

annually thereafter, the Secretary shall prepare a report containing 

data regarding the trade adjustment assistance for firms program 

under this chapter for the preceding fiscal year. The data shall 

include the following: 

‘‘(1) The number of firms that inquired about the program. 

‘‘(2) The number of petitions filed under section 251. 

‘‘(3) The number of petitions certified and denied by the 

Secretary. 

‘‘(4) The average time for processing petitions after the 

petitions are filed. 

‘‘(5) The number of petitions filed and firms certified for 

each congressional district of the United States. 

‘‘(6) Of the number of petitions filed, the number of firms 

that entered the program and received benefits. 

‘‘(7) The number of firms that received assistance in preparing their petitions. 

‘‘(8) The number of firms that received assistance developing business recovery plans. 

‘‘(9) The number of business recovery plans approved and 

denied by the Secretary. 

‘‘(10) The average duration of benefits received under the 

program nationally and in each region served by an intermediary organization referred to in section 253(b)(1). 

‘‘(11) Sales, employment, and productivity at each firm 

participating in the program at the time of certification. 

‘‘(12) Sales, employment, and productivity at each firm 

upon completion of the program and each year for the 2-year 

period following completion of the program. 

‘‘(13) The number of firms in operation as of the date 

of the report and the number of firms that ceased operations 

after completing the program and in each year during the 

2-year period following completion of the program. 

19 USC 2345a. 

19 USC 2323 

note. 


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125 STAT. 410 PUBLIC LAW 112–40—OCT. 21, 2011 

‘‘(14) The financial assistance received by each firm participating in the program. 

‘‘(15) The financial contribution made by each firm participating in the program. 

‘‘(16) The types of technical assistance included in the 

business recovery plans of firms participating in the program. 

‘‘(17) The number of firms leaving the program before completing the project or projects in their business recovery plans 

and the reason the project or projects were not completed. 

‘‘(18) The total amount expended by all intermediary 

organizations referred to in section 253(b)(1) and by each such 

organization to administer the program. 

‘‘(19) The total amount expended by intermediary organizations to provide technical assistance to firms under the program 

nationally and in each region served by such an organization. 

‘‘(b) CLASSIFICATION OF DATA.—To the extent possible, in collecting and reporting the data described in subsection (a), the 

Secretary shall classify the data by intermediary organization, 

State, and national totals. 

‘‘(c) REPORT TO CONGRESS; PUBLICATION.—The Secretary shall— 

‘‘(1) submit the report described in subsection (a) to the 

Committee on Finance of the Senate and the Committee on 

Ways and Means of the House of Representatives; and 

‘‘(2) publish the report in the Federal Register and on 

the website of the Department of Commerce. 

‘‘(d) PROTECTION OF CONFIDENTIAL INFORMATION.— 

‘‘(1) IN GENERAL.—The Secretary may not release information described in subsection (a) that the Secretary considers 

to be confidential business information unless the person 

submitting the confidential business information had notice, 

at the time of submission, that such information would be 

released by the Secretary, or such person subsequently consents 

to the release of the information. 

‘‘(2) RULE OF CONSTRUCTION.—Nothing in this subsection 

shall be construed to prohibit the Secretary from providing 

information the Secretary considers to be confidential business 

information under paragraph (1) to a court in camera or to 

another party under a protective order issued by a court.’’. 

(2) CLERICAL AMENDMENT.—The table of contents for the 

Trade Act of 1974 is amended by inserting after the item 

relating to section 255 the following: 

‘‘Sec. 255A. Annual report on trade adjustment assistance for firms.’’. 

(3) CONFORMING REPEAL.—Effective on the day after the 

date on which the Secretary of Commerce submits the report 

required by section 1866 of the Trade and Globalization Adjustment Assistance Act of 2009 (19 U.S.C. 2356) for fiscal year 

2011, such section is repealed. 

(b) EXTENSION.—Section 255(a) of the Trade Act of 1974 (19 

U.S.C. 2345(a)) is amended— 

(1) by striking ‘‘$50,000,000’’ and all that follows through ‘‘February 12, 2011.’’ and inserting ‘‘$16,000,000 for each of 

the fiscal years 2012 and 2013, and $4,000,000 for the 3- 

month period beginning on October 1, 2013, and ending on 

December 31, 2013.’’; and 

(2) by striking ‘‘shall—’’ and all that follows through ‘‘otherwise remain’’ and inserting ‘‘shall remain’’. 

Effective date. 

19 USC 2356 

note. 

Notice. 

Federal Register, 

publication. 

Web posting. 


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PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 411 

SEC. 222. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES. 

(a) IN GENERAL.—Chapter 4 of title II of the Trade Act of 

1974 (19 U.S.C. 2371 et seq.) is amended— 

(1) by striking subchapters A, C, and D; 

(2) in subchapter B, by striking the subchapter heading; 

and 

(3) by redesignating sections 278 and 279 as sections 271 

and 272, respectively. 

(b) ANNUAL REPORT.— (1) IN GENERAL.—Subsection (e) of section 271 of the Trade 

Act of 1974, as redesignated by subsection (a)(3), is amended— 

(A) in the matter preceding paragraph (1), by striking 

‘‘December 15 in each of the calendar years 2009 through’’ 

and inserting ‘‘December 15, 2009,’’; 

(B) in paragraph (1), by striking ‘‘and’’ at the end; 

(C) in paragraph (2), by striking the period at the 

end and inserting ‘‘; and’’; and 

(D) by adding at the end the following: 

‘‘(3) providing the following data relating to program 

performance and outcomes: 

‘‘(A) Of the grants awarded under this section, the 

amount of funds spent by grantees. 

‘‘(B) The average dollar amount of grants awarded 

under this section. 

‘‘(C) The average duration of grants awarded under 

this section. 

‘‘(D) The percentage of workers receiving benefits under 

chapter 2 that are served by programs developed, offered, 

or improved using grants awarded under this section. 

‘‘(E) The percentage and number of workers receiving 

benefits under chapter 2 who obtained a degree through 

such programs and the average duration of the participation of such workers in training under section 236. 

‘‘(F) The number of workers receiving benefits under 

chapter 2 served by such programs who did not complete 

a degree and the average duration of the participation 

of such workers in training under section 236.’’. 

(2) EFFECTIVE DATE.—The amendments made by paragraph 

(1) shall— 

(A) take effect on October 1, 2011; and 

(B) apply with respect to reports submitted under subsection (e) of section 271 of the Trade Act of 1974, as 

redesignated by subsection (a)(3), on or after October 1, 

2012. 

(c) CONFORMING AMENDMENTS.— 

(1) Section 271 of the Trade Act of 1974, as redesignated 

by subsection (a)(3), is amended— 

(A) in subsection (c)— 

(i) in paragraph (4)— 

(I) in subparagraph (A)— 

(aa) in clause (ii), by striking the semicolon and inserting ‘‘; and’’; 

(bb) by striking clauses (iii) and (iv); and 

(cc) by redesignating clause (v) as clause 

(iii); 

(II) in subparagraph (B), by striking ‘‘(A)(v)’’ 

and inserting ‘‘(A)(iii)’’; and 

19 USC 2371. 

Applicability. 

19 USC 2371 

note. 

19 USC 2371. 

19 USC 2371, 

2372. 

19 USC 

2371–2374. 


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125 STAT. 412 PUBLIC LAW 112–40—OCT. 21, 2011 

(ii) in paragraph (5)(A)— 

(I) in clause (i)— 

(aa) in the matter preceding subclause (I), 

by striking ‘‘, and other entities described in 

section 276(a)(2)(B)’’; and 

(bb) in subclause (II), by striking the semicolon and inserting ‘‘; and’’; 

(II) by striking clause (iii); and 

(B) in subsection (d), by striking paragraph (2) and 

redesignating paragraph (3) as paragraph (2). 

(2) Subsection (b) of section 272 of the Trade Act of 1974, 

as redesignated by subsection (a)(3), is amended by striking 

‘‘278(a)(2)’’ and inserting ‘‘271(a)(2)’’. 

(d) CLERICAL AMENDMENT.—The table of contents for the Trade 

Act of 1974 is amended by striking the items relating to chapter 

4 of title II and inserting the following: 

‘‘CHAPTER 4—TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

‘‘Sec. 271. Community College and Career Training Grant Program. 

‘‘Sec. 272. Authorization of appropriations.’’. 

SEC. 223. TRADE ADJUSTMENT ASSISTANCE FOR FARMERS. 

(a) ANNUAL REPORT.— 

(1) IN GENERAL.—Section 293(d) of the Trade Act of 1974 

(19 U.S.C. 2401b(d)) is amended to read as follows: 

‘‘(d) ANNUAL REPORT.—Not later than January 30 of each year, 

the Secretary shall submit to the Committee on Finance of the 

Senate and the Committee on Ways and Means of the House 

of Representatives a report containing the following information 

with respect to the trade adjustment assistance for farmers program 

under this chapter during the preceding fiscal year: 

‘‘(1) A list of the agricultural commodities covered by a 

certification under this chapter. 

‘‘(2) The States or regions in which agricultural commodities are produced and the aggregate amount of such commodities produced in each such State or region. 

‘‘(3) The number of petitions filed. 

‘‘(4) The number of petitions certified and denied by the 

Secretary. 

‘‘(5) The average time for processing petitions. 

‘‘(6) The number of petitions filed and agricultural commodity producers approved for each congressional district of 

the United States. 

‘‘(7) Of the number of producers approved, the number 

of agricultural commodity producers that entered the program 

and received benefits. 

‘‘(8) The number of agricultural commodity producers that 

completed initial technical assistance. 

‘‘(9) The number of agricultural commodity producers that 

completed intensive technical assistance. 

‘‘(10) The number of initial business plans approved and 

denied by the Secretary. 

‘‘(11) The number of long-term business plans approved 

and denied by the Secretary. 

‘‘(12) The total number of agricultural commodity producers, by congressional district, receiving initial technical 

assistance and intensive technical assistance, respectively, 

under this chapter. 

19 USC 2372. 


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PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 413 

‘‘(13) The types of initial technical assistance received by 

agricultural commodity producers participating in the program. 

‘‘(14) The types of intensive technical assistance received 

by agricultural commodity producers participating in the program. 

‘‘(15) The number of agricultural commodity producers 

leaving the program before completing the projects in their 

long-term business plans and the reason those projects were 

not completed. 

‘‘(16) The total number of agricultural commodity producers, by congressional district, receiving benefits under this 

chapter. 

‘‘(17) The average duration of benefits received under this 

chapter. 

‘‘(18) The number of agricultural commodity producers in 

operation as of the date of the report and the number of 

agricultural commodity producers that ceased operations after 

completing the program and in the 1-year period following 

completion of the program. 

‘‘(19) The number of agricultural commodity producers that 

report that such producers received benefits under a prior 

certification issued under this chapter in any of the 10 fiscal 

years preceding the date of the report.’’. 

(2) EFFECTIVE DATE.—The amendment made by paragraph 

(1) shall— 

(A) take effect on October 1, 2011; and 

(B) apply with respect to reports submitted under section 293(d) of the Trade Act of 1974 (19 U.S.C. 2401b(d)) 

on or after October 1, 2012. 

(b) EXTENSION.—Section 298(a) of the Trade Act of 1974 (19 

U.S.C. 2401g(a)) is amended— 

(1) by striking ‘‘and there are appropriated’’; and 

(2) by striking ‘‘not to exceed’’ and all that follows through 

‘‘February 12, 2011’’ and inserting ‘‘not to exceed $90,000,000 

for each of the fiscal years 2012 and 2013, and $22,500,000 

for the 3-month period beginning on October 1, 2013, and 

ending on December 31, 2013’’. 

PART IV—GENERAL PROVISIONS 

SEC. 231. APPLICABILITY OF TRADE ADJUSTMENT ASSISTANCE PROVISIONS. 

(a) TRADE ADJUSTMENT ASSISTANCE FOR WORKERS.— 

(1) PETITIONS FILED ON OR AFTER FEBRUARY 13, 2011, AND

BEFORE DATE OF ENACTMENT.— 

(A) CERTIFICATIONS OF WORKERS NOT CERTIFIED BEFORE

DATE OF ENACTMENT.— 

(i) CRITERIA IF A DETERMINATION HAS NOT BEEN

MADE.—If, as of the date of the enactment of this 

Act, the Secretary of Labor has not made a determination with respect to whether to certify a group of 

workers as eligible to apply for adjustment assistance 

under section 222 of the Trade Act of 1974 pursuant 

to a petition described in clause (iii), the Secretary 

shall make that determination based on the requirements of section 222 of the Trade Act of 1974, as 

in effect on such date of enactment. 

19 USC 2271 

note. 

Applicability. 

19 USC 2401b 

note. 


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125 STAT. 414 PUBLIC LAW 112–40—OCT. 21, 2011 

(ii) RECONSIDERATION OF DENIALS OF CERTIFI- CATIONS.—If, before the date of the enactment of this 

Act, the Secretary made a determination not to certify 

a group of workers as eligible to apply for adjustment 

assistance under section 222 of the Trade Act of 1974 

pursuant to a petition described in clause (iii), the 

Secretary shall— 

(I) reconsider that determination; and 

(II) if the group of workers meets the requirements of section 222 of the Trade Act of 1974, 

as in effect on such date of enactment, certify 

the group of workers as eligible to apply for adjustment assistance. 

(iii) PETITION DESCRIBED.—A petition described in 

this clause is a petition for a certification of eligibility 

for a group of workers filed under section 221 of the 

Trade Act of 1974 on or after February 13, 2011, and 

before the date of the enactment of this Act. 

(B) ELIGIBILITY FOR BENEFITS.— 

(i) IN GENERAL.—Except as provided in clause (ii), 

a worker certified as eligible to apply for adjustment 

assistance under section 222 of the Trade Act of 1974 

pursuant to a petition described in subparagraph 

(A)(iii) shall be eligible, on and after the date that 

is 60 days after the date of the enactment of this 

Act, to receive benefits only under the provisions of 

chapter 2 of title II of the Trade Act of 1974, as 

in effect on such date of enactment. 

(ii) ELECTION FOR WORKERS RECEIVING BENEFITS

ON THE 60TH DAY AFTER ENACTMENT.— 

(I) IN GENERAL.—A worker certified as eligible 

to apply for adjustment assistance under section 

222 of the Trade Act of 1974 pursuant to a petition 

described in subparagraph (A)(iii) who is receiving 

benefits under chapter 2 of title II of the Trade 

Act of 1974 as of the date that is 60 days after 

the date of the enactment of this Act may, not 

later than the date that is 150 days after such 

date of enactment, make a one-time election to 

receive benefits pursuant to— 

(aa) the provisions of chapter 2 of title 

II of the Trade Act of 1974, as in effect on 

such date of enactment; or 

(bb) the provisions of chapter 2 of title 

II of the Trade Act of 1974, as in effect on 

February 13, 2011. 

(II) EFFECT OF FAILURE TO MAKE ELECTION.— 

A worker described in subclause (I) who does not 

make the election described in that subclause on 

or before the date that is 150 days after the date 

of the enactment of this Act shall be eligible to 

receive benefits only under the provisions of 

chapter 2 of title II of the Trade Act of 1974, 

as in effect on February 13, 2011. 

(III) COMPUTATION OF MAXIMUM BENEFITS.— Benefits received by a worker described in subclause (I) under chapter 2 of title II of the Trade 

Deadline. 

Effective date. 


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PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 415 

Act of 1974, as in effect on February 13, 2011, 

before the worker makes the election described 

in that subclause shall be included in any determination of the maximum benefits for which the 

worker is eligible under the provisions of chapter 

2 of title II of the Trade Act of 1974, as in effect 

on the date of the enactment of this Act, or as 

in effect on February 13, 2011, whichever is 

applicable after the election of the worker under 

subclause (I). 

(2) PETITIONS FILED BEFORE FEBRUARY 13, 2011.—A worker 

certified as eligible to apply for adjustment assistance pursuant 

to a petition filed under section 221 of the Trade Act of 1974— 

(A) on or after May 18, 2009, and on or before February 

12, 2011, shall continue to be eligible to apply for and 

receive benefits under the provisions of chapter 2 of title 

II of such Act, as in effect on February 12, 2011; or 

(B) before May 18, 2009, shall continue to be eligible 

to apply for and receive benefits under the provisions of 

chapter 2 of title II of such Act, as in effect on May 

17, 2009. 

(3) QUALIFYING SEPARATIONS WITH RESPECT TO PETITIONS

FILED WITHIN 90 DAYS OF DATE OF ENACTMENT.—Section 223(b) 

of the Trade Act of 1974, as in effect on the date of the 

enactment of this Act, shall be applied and administered by 

substituting ‘‘before February 13, 2010’’ for ‘‘more than one 

year before the date of the petition on which such certification 

was granted’’ for purposes of determining whether a worker 

is eligible to apply for adjustment assistance pursuant to a 

petition filed under section 221 of the Trade Act of 1974 on 

or after the date of the enactment of this Act and on or before 

the date that is 90 days after such date of enactment. 

(b) TRADE ADJUSTMENT ASSISTANCE FOR FIRMS.— 

(1) CERTIFICATION OF FIRMS NOT CERTIFIED BEFORE DATE

OF ENACTMENT.— (A) CRITERIA IF A DETERMINATION HAS NOT BEEN

MADE.—If, as of the date of the enactment of this Act, 

the Secretary of Commerce has not made a determination 

with respect to whether to certify a firm as eligible to 

apply for adjustment assistance under section 251 of the 

Trade Act of 1974 pursuant to a petition described in 

subparagraph (C), the Secretary shall make that determination based on the requirements of section 251 of the 

Trade Act of 1974, as in effect on such date of enactment. 

(B) RECONSIDERATION OF DENIAL OF CERTAIN PETITIONS.—If, before the date of the enactment of this Act, 

the Secretary made a determination not to certify a firm 

as eligible to apply for adjustment assistance under section 

251 of the Trade Act of 1974 pursuant to a petition 

described in subparagraph (C), the Secretary shall— 

(i) reconsider that determination; and 

(ii) if the firm meets the requirements of section 

251 of the Trade Act of 1974, as in effect on such 

date of enactment, certify the firm as eligible to apply 

for adjustment assistance. 

(C) PETITION DESCRIBED.—A petition described in this 

subparagraph is a petition for a certification of eligibility 

Applicability. 

Deadline. 

Time period. 


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125 STAT. 416 PUBLIC LAW 112–40—OCT. 21, 2011 

filed by a firm or its representative under section 251 

of the Trade Act of 1974 on or after February 13, 2011, 

and before the date of the enactment of this Act. 

(2) CERTIFICATION OF FIRMS THAT DID NOT SUBMIT PETI- TIONS BETWEEN FEBRUARY 13, 2011, AND DATE OF ENACTMENT.— (A) IN GENERAL.—The Secretary of Commerce shall 

certify a firm described in subparagraph (B) as eligible 

to apply for adjustment assistance under section 251 of 

the Trade Act of 1974, as in effect on the date of the 

enactment of this Act, if the firm or its representative 

files a petition for a certification of eligibility under section 

251 of the Trade Act of 1974 not later than 90 days after 

such date of enactment. 

(B) FIRM DESCRIBED.—A firm described in this subparagraph is a firm that the Secretary determines would have 

been certified as eligible to apply for adjustment assistance 

if— 

(i) the firm or its representative had filed a petition 

for a certification of eligibility under section 251 of 

the Trade Act of 1974 on a date during the period 

beginning on February 13, 2011, and ending on the 

day before the date of the enactment of this Act; and 

(ii) the provisions of chapter 3 of title II of the 

Trade Act of 1974, as in effect on such date of enactment, had been in effect on that date during the period 

described in clause (i). 

SEC. 232. TERMINATION PROVISIONS. 

Section 285 of the Trade Act of 1974 (19 U.S.C. 2271 note) 

is amended— 

(1) by striking ‘‘February 12, 2011’’ each place it appears 

and inserting ‘‘December 31, 2013’’; 

(2) in subsection (a)(2)— 

(A) in the matter preceding subparagraph (A), by 

striking ‘‘that chapter’’ and all that follows through ‘‘the 

worker is—’’ and inserting ‘‘that chapter if the worker 

is—’’; and 

(B) in subparagraph (A), by striking ‘‘petitions’’ and 

inserting ‘‘a petition’’; and 

(3) in subsection (b)— 

(A) in paragraph (1)(B), in the matter preceding clause 

(i), by inserting ‘‘pursuant to a petition filed under section 

251’’ after ‘‘chapter 3’’; 

(B) in paragraph (2)(B), in the matter preceding clause 

(i), by inserting ‘‘pursuant to a petition filed under section 

292’’ after ‘‘chapter 6’’; and 

(C) by striking paragraph (3). 

SEC. 233. SUNSET PROVISIONS. 

(a) APPLICATION OF PRIOR LAW.—Subject to subsection (b), 

beginning on January 1, 2014, the provisions of chapters 2, 3, 

5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271 

et seq.), as in effect on February 13, 2011, shall apply, except 

that in applying and administering such chapters— 

(1) paragraph (1) of section 231(c) of that Act shall be 

applied and administered as if subparagraphs (A), (B), and 

(C) of that paragraph were not in effect; 

Effective date. 

19 USC 2271 

note prec. 

19 USC 2271 

note prec. 

Time period. 

Deadline. 


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PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 417 

(2) section 233 of that Act shall be applied and administered— 

(A) in subsection (a)— 

(i) in paragraph (2), by substituting ‘‘104-week 

period’’ for ‘‘104-week period’’ and all that follows 

through ‘‘130-week period)’’; and 

(ii) in paragraph (3)— 

(I) in the matter preceding subparagraph (A), 

by substituting ‘‘65’’ for ‘‘52’’; and 

(II) by substituting ‘‘78-week period’’ for ‘‘52- 

week period’’ each place it appears; and 

(B) by applying and administering subsection (g) as 

if it read as follows: 

‘‘(g) PAYMENT OF TRADE READJUSTMENT ALLOWANCES TO COM- PLETE TRAINING.—Notwithstanding any other provision of this section, in order to assist an adversely affected worker to complete 

training approved for the worker under section 236 that leads 

to the completion of a degree or industry-recognized credential, 

payments may be made as trade readjustment allowances for not 

more than 13 weeks within such period of eligibility as the Secretary 

may prescribe to account for a break in training or for justifiable 

cause that follows the last week for which the worker is otherwise 

entitled to a trade readjustment allowance under this chapter if— 

‘‘(1) payment of the trade readjustment allowance for not 

more than 13 weeks is necessary for the worker to complete 

the training; 

‘‘(2) the worker participates in training in each such week; 

and 

‘‘(3) the worker— 

‘‘(A) has substantially met the performance benchmarks established as part of the training approved for 

the worker; 

‘‘(B) is expected to continue to make progress toward 

the completion of the training; and 

‘‘(C) will complete the training during that period of 

eligibility.’’; 

(3) section 245 of that Act shall be applied and administered 

by substituting ‘‘2014’’ for ‘‘2007’’; 

(4) section 246(b)(1) of that Act shall be applied and 

administered by substituting ‘‘December 31, 2014’’ for ‘‘the date 

that is 5 years’’ and all that follows through ‘‘State’’; 

(5) section 256(b) of that Act shall be applied and administered by substituting ‘‘the 1-year period beginning on January 

1, 2014’’ for ‘‘each of fiscal years 2003 through 2007, and 

$4,000,000 for the 3-month period beginning on October 1, 

2007’’; 

(6) section 298(a) of that Act shall be applied and administered by substituting ‘‘the 1-year period beginning on January 

1, 2014’’ for ‘‘each of the fiscal years’’ and all that follows 

through ‘‘October 1, 2007’’; and 

(7) section 285 of that Act shall be applied and administered— 

(A) in subsection (a), by substituting ‘‘2014’’ for ‘‘2007’’ 

each place it appears; and 

(B) by applying and administering subsection (b) as 

if it read as follows: 

‘‘(b) OTHER ASSISTANCE.— 


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125 STAT. 418 PUBLIC LAW 112–40—OCT. 21, 2011 

‘‘(1) ASSISTANCE FOR FIRMS.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), assistance may not be provided under chapter 3 after 

December 31, 2014. 

‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), 

any assistance approved under chapter 3 on or before 

December 31, 2014, may be provided— 

‘‘(i) to the extent funds are available pursuant 

to such chapter for such purpose; and 

‘‘(ii) to the extent the recipient of the assistance 

is otherwise eligible to receive such assistance. 

‘‘(2) FARMERS.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), assistance may not be provided under chapter 6 after 

December 31, 2014. 

‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), 

any assistance approved under chapter 6 on or before 

December 31, 2014, may be provided— 

‘‘(i) to the extent funds are available pursuant 

to such chapter for such purpose; and 

‘‘(ii) to the extent the recipient of the assistance 

is otherwise eligible to receive such assistance.’’. 

(b) EXCEPTIONS.—The provisions of chapters 2, 3, 5, and 6 

of title II of the Trade Act of 1974, as in effect on the date 

of the enactment of this Act, shall continue to apply on and after 

January 1, 2014, with respect to— 

(1) workers certified as eligible for trade adjustment assistance benefits under chapter 2 of title II of that Act pursuant 

to petitions filed under section 221 of that Act before January 

1, 2014; 

(2) firms certified as eligible for technical assistance or 

grants under chapter 3 of title II of that Act pursuant to 

petitions filed under section 251 of that Act before January 

1, 2014; and 

(3) agricultural commodity producers certified as eligible 

for technical or financial assistance under chapter 6 of title 

II of that Act pursuant to petitions filed under section 292 

of that Act before January 1, 2014. 

Subtitle B—Health Coverage Improvement 

SEC. 241. HEALTH CARE TAX CREDIT. 

(a) TERMINATION OF CREDIT.—Subparagraph (B) of section 

35(b)(1) of the Internal Revenue Code of 1986 is amended by 

inserting ‘‘, and before January 1, 2014’’ before the period. 

(b) EXTENSION THROUGH CREDIT TERMINATION DATE OF CERTAIN EXPIRED CREDIT PROVISIONS.— 

(1) PARTIAL EXTENSION OF INCREASED CREDIT RATE.—Section 35(a) of such Code is amended by striking ‘‘65 percent 

(80 percent in the case of eligible coverage months beginning 

before February 13, 2011)’’ and inserting ‘‘72.5 percent’’. 

(2) EXTENSION OF ADVANCE PAYMENT PROVISIONS.— 

(A) Section 7527(b) of such Code is amended by striking 

‘‘65 percent (80 percent in the case of eligible coverage 

months beginning before February 13, 2011)’’ and inserting 

‘‘72.5 percent’’. 

26 USC 7527. 

26 USC 35. 

Applicability. 


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PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 419 

(B) Section 7527(d)(2) of such Code is amended by 

striking ‘‘which is issued before February 13, 2011’’. 

(C) Section 7527(e) of such Code is amended by striking 

‘‘80 percent’’ and inserting ‘‘72.5 percent’’. 

(D) Section 7527(e) of such Code is amended by striking 

‘‘In the case of eligible coverage months beginning before 

February 13, 2011—’’. 

(3) EXTENSION OF CERTAIN OTHER RELATED PROVISIONS.— (A) Section 35(c)(2)(B) of such Code is amended by 

striking ‘‘and before February 13, 2011’’. 

(B) Section 35(e)(1)(K) of such Code is amended by 

striking ‘‘In the case of eligible coverage months beginning 

before February 13, 2012, coverage’’ and inserting ‘‘Coverage’’. 

(C) Section 35(g)(9) of such Code, as added by section 

1899E(a) of the American Recovery and Reinvestment Tax 

Act of 2009 (relating to continued qualification of family 

members after certain events), is amended by striking ‘‘In 

the case of eligible coverage months beginning before February 13, 2011—’’. 

(D) Section 173(f)(8) of the Workforce Investment Act 

of 1998 is amended by striking ‘‘In the case of eligible 

coverage months beginning before February 13, 2011—’’. 

(c) EFFECTIVE DATES.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to 

coverage months beginning after February 12, 2011. 

(2) ADVANCE PAYMENT PROVISIONS.— 

(A) The amendment made by subsection (b)(2)(B) shall 

apply to certificates issued after the date which is 30 days 

after the date of the enactment of this Act. 

(B) The amendment made by subsection (b)(2)(D) shall 

apply to coverage months beginning after the date which 

is 30 days after the date of the enactment of this Act. 

SEC. 242. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF 

DETERMINING WHETHER THERE IS A 63-DAY LAPSE IN 

CREDITABLE COVERAGE. 

(a) IN GENERAL.—The following provisions are each amended 

by striking ‘‘February 13, 2011’’ and inserting ‘‘January 1, 2014’’: 

(1) Section 9801(c)(2)(D) of the Internal Revenue Code of 

1986. 

(2) Section 701(c)(2)(C) of the Employee Retirement Income 

Security Act of 1974 (29 U.S.C. 1181(c)(2)(C)). 

(3) Section 2701(c)(2)(C) of the Public Health Service Act 

(as in effect for plan years beginning before January 1, 2014). 

(4) Section 2704(c)(2)(C) of the Public Health Service Act 

(as in effect for plan years beginning on or after January 

1, 2014). 

(b) EFFECTIVE DATE.— 

(1) IN GENERAL.—The amendments made by this section 

shall apply to plan years beginning after February 12, 2011. 

(2) TRANSITIONAL RULES.— 

(A) BENEFIT DETERMINATIONS.—Notwithstanding the 

amendments made by this section (and the provisions of 

law amended thereby), a plan shall not be required to 

modify benefit determinations for the period beginning on 

26 USC 9801 

note. 

42 USC 300gg–3. 

42 USC 300gg, 

300gg–3. 

26 USC 9801. 

26 USC 35 note. 

29 USC 2918. 

26 USC 35. 

26 USC 7527. 


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125 STAT. 420 PUBLIC LAW 112–40—OCT. 21, 2011 

February 13, 2011, and ending 30 days after the date 

of the enactment of this Act, but a plan shall not fail 

to be qualified health insurance within the meaning of 

section 35(e) of the Internal Revenue Code of 1986 during 

this period merely due to such failure to modify benefit 

determinations. 

(B) GUIDANCE CONCERNING PERIODS BEFORE 30 DAYS

AFTER ENACTMENT.—Except as provided in subparagraph 

(A), the Secretary of the Treasury (or his designee), in 

consultation with the Secretary of Health and Human Services and the Secretary of Labor, may issue regulations 

or other guidance regarding the scope of the application 

of the amendments made by this section to periods before 

the date which is 30 days after the date of the enactment 

of this Act. 

(C) SPECIAL RULE RELATING TO CERTAIN LOSS OF COVERAGE.—In the case of a TAA-related loss of coverage (as 

defined in section 4980B(f)(5)(C)(iv) of the Internal Revenue 

Code of 1986) that occurs during the period beginning 

on February 13, 2011, and ending 30 days after the date 

of the enactment of this Act, the 7-day period described 

in section 9801(c)(2)(D) of the Internal Revenue Code of 

1986, section 701(c)(2)(C) of the Employee Retirement 

Income Security Act of 1974, and section 2701(c)(2)(C) of 

the Public Health Service Act shall be extended until 30 

days after such date of enactment. 

SEC. 243. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAAELIGIBLE INDIVIDUALS AND PBGC RECIPIENTS. 

(a) IN GENERAL.—The following provisions are each amended 

by striking ‘‘February 12, 2011’’ and inserting ‘‘January 1, 2014’’: 

(1) Section 602(2)(A)(v) of the Employee Retirement Income 

Security Act of 1974 (29 U.S.C. 1162(2)(A)(v)). 

(2) Section 602(2)(A)(vi) of such Act (29 U.S.C. 

1162(2)(A)(vi)). 

(3) Section 4980B(f)(2)(B)(i)(V) of the Internal Revenue 

Code of 1986. 

(4) Section 4980B(f)(2)(B)(i)(VI) of such Code. 

(5) Section 2202(2)(A)(iv) of the Public Health Service Act 

(42 U.S.C. 300bb–2(2)(A)(iv)). 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to periods of coverage which would (without regard 

to the amendments made by this section) end on or after the 

date which is 30 days after the date of the enactment of this 

Act. 

Subtitle C—Offsets 

PART I—UNEMPLOYMENT COMPENSATION 

PROGRAM INTEGRITY 

SEC. 251. MANDATORY PENALTY ASSESSMENT ON FRAUD CLAIMS. 

(a) IN GENERAL.—Section 303(a) of the Social Security Act 

(42 U.S.C. 503(a)) is amended— 

(1) in paragraph (10), by striking the period at the end 

of subparagraph (B) and inserting ‘‘; and’’; and 

26 USC 4980B 

note. 

26 USC 4980B. 

Time period. 


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PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 421 

(2) by adding at the end the following new paragraph: 

‘‘(11)(A) At the time the State agency determines an erroneous payment from its unemployment fund was made to an 

individual due to fraud committed by such individual, the 

assessment of a penalty on the individual in an amount of 

not less than 15 percent of the amount of the erroneous payment; and 

‘‘(B) The immediate deposit of all assessments paid pursuant to subparagraph (A) into the unemployment fund of the 

State.’’. 

(b) APPLICATION TO FEDERAL PAYMENTS.— (1) IN GENERAL.—As a condition for administering any 

unemployment compensation program of the United States (as 

defined in paragraph (2)) as an agent of the United States, 

if the State determines that an erroneous payment was made 

by the State to an individual under any such program due 

to fraud committed by such individual, the State shall assess 

a penalty on such individual and deposit any such penalty 

received in the same manner as the State assesses and deposits 

such penalties under provisions of State law implementing 

section 303(a)(11) of the Social Security Act, as added by subsection (a). 

(2) DEFINITION.—For purposes of this subsection, the term 

‘‘unemployment compensation program of the United States’’ 

means— 

(A) unemployment compensation for Federal civilian 

employees under subchapter I of chapter 85 of title 5, 

United States Code; 

(B) unemployment compensation for exservicemembers under subchapter II of chapter 85 of title 

5, United States Code; 

(C) trade readjustment allowances under sections 231 

through 234 of the Trade Act of 1974 (19 U.S.C. 2291– 

2294); 

(D) disaster unemployment assistance under section 

410(a) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5177(a)); 

(E) any Federal temporary extension of unemployment 

compensation; 

(F) any Federal program which increases the weekly 

amount of unemployment compensation payable to individuals; and 

(G) any other Federal program providing for the payment of unemployment compensation. 

(c) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this section shall apply to erroneous 

payments established after the end of the 2-year period beginning on the date of the enactment of this Act. 

(2) AUTHORITY.—A State may amend its State law to apply 

such amendments to erroneous payments established prior to 

the end of the period described in paragraph (1). 

SEC. 252. PROHIBITION ON NONCHARGING DUE TO EMPLOYER FAULT. 

(a) IN GENERAL.—Section 3303 of the Internal Revenue Code 

of 1986 is amended— 

(1) by striking subsections (f) and (g); and 

26 USC 3303. 

42 USC 503 note. 

42 USC 503 note. 


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125 STAT. 422 PUBLIC LAW 112–40—OCT. 21, 2011 

(2) by inserting after subsection (e) the following new subsection: 

‘‘(f) PROHIBITION ON NONCHARGING DUE TO EMPLOYER FAULT.— 

‘‘(1) IN GENERAL.—A State law shall be treated as meeting 

the requirements of subsection (a)(1) only if such law provides 

that an employer’s account shall not be relieved of charges 

relating to a payment from the State unemployment fund if 

the State agency determines that— 

‘‘(A) the payment was made because the employer, 

or an agent of the employer, was at fault for failing to 

respond timely or adequately to the request of the agency 

for information relating to the claim for compensation; 

and 

‘‘(B) the employer or agent has established a pattern 

of failing to respond timely or adequately to such requests. 

‘‘(2) STATE AUTHORITY TO IMPOSE STRICTER STANDARDS.— Nothing in paragraph (1) shall limit the authority of a State 

to provide that an employer’s account not be relieved of charges 

relating to a payment from the State unemployment fund for 

reasons other than the reasons described in subparagraphs 

(A) and (B) of such paragraph, such as after the first instance 

of a failure to respond timely or adequately to requests 

described in paragraph (1)(A).’’. 

(b) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this section shall apply to erroneous 

payments established after the end of the 2-year period beginning on the date of the enactment of this Act. 

(2) AUTHORITY.—A State may amend its State law to apply 

such amendments to erroneous payments established prior to 

the end of the period described in paragraph (1). 

SEC. 253. REPORTING OF REHIRED EMPLOYEES TO THE DIRECTORY 

OF NEW HIRES. 

(a) DEFINITION OF NEWLY HIRED EMPLOYEE.—Section 

453A(a)(2) of the Social Security Act (42 U.S.C. 653a(a)(2)) is 

amended by adding at the end the following: 

‘‘(C) NEWLY HIRED EMPLOYEE.—The term ‘newly hired 

employee’ means an employee who— 

‘‘(i) has not previously been employed by the 

employer; or 

‘‘(ii) was previously employed by the employer but 

has been separated from such prior employment for 

at least 60 consecutive days.’’. 

(b) EFFECTIVE DATE.— 

(1) IN GENERAL.—Subject to paragraph (2), the amendments 

made by this section shall take effect 6 months after the date 

of the enactment of this Act. 

(2) COMPLIANCE TRANSITION PERIOD.—If the Secretary of 

Health and Human Services determines that State legislation 

(other than legislation appropriating funds) is required in order 

for a State plan under part D of title IV of the Social Security 

Act to meet the additional requirement imposed by the amendment made by subsection (a), the plan shall not be regarded 

as failing to meet such requirement before the first day of 

the second calendar quarter beginning after the close of the 

first regular session of the State legislature that begins after 

42 USC 653a 

note. 

26 USC 3303 

note. 


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PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 423 

the effective date of such amendment. If the State has a 2- 

year legislative session, each year of the session is deemed 

to be a separate regular session of the State legislature. 

PART II—ADDITIONAL OFFSETS 

SEC. 261. IMPROVEMENTS TO CONTRACTS WITH MEDICARE QUALITY 

IMPROVEMENT ORGANIZATIONS (QIOS) IN ORDER TO 

IMPROVE THE QUALITY OF CARE FURNISHED TO MEDICARE BENEFICIARIES. 

(a) AUTHORITY TO CONTRACT WITH A BROAD RANGE OF ENTI- TIES.— (1) DEFINITION.—Section 1152 of the Social Security Act 

(42 U.S.C. 1320c–1) is amended by striking paragraphs (1) 

and (2) and inserting the following new paragraphs: 

‘‘(1) is able, as determined by the Secretary, to perform 

its functions under this part in a manner consistent with the 

efficient and effective administration of this part and title 

XVIII; 

‘‘(2) has at least one individual who is a representative 

of health care providers on its governing body; and’’. 

(2) NAME CHANGE.—Part B of title XI of the Social Security 

Act (42 U.S.C. 1320c et seq.) is amended— 

(A) in the headings for sections 1152 and 1153, by 

striking ‘‘UTILIZATION AND QUALITY CONTROL PEER REVIEW’’ 

and inserting ‘‘QUALITY IMPROVEMENT’’; 

(B) in the heading for section 1154, by striking ‘‘PEER

REVIEW’’ and inserting ‘‘QUALITY IMPROVEMENT’’; and 

(C) by striking ‘‘utilization and quality control peer 

review’’ and ‘‘peer review’’ each place it appears before 

‘‘organization’’ or ‘‘organizations’’ and inserting ‘‘quality 

improvement’’. 

(3) CONFORMING AMENDMENTS TO THE MEDICARE PROGRAM.—Title XVIII of the Social Security Act (42 U.S.C. 1395 

et seq.) is amended— 

(A) by striking ‘‘utilization and quality control peer 

review’’ and inserting ‘‘quality improvement’’ each place 

it appears; 

(B) by striking ‘‘quality control and peer review’’ and 

inserting ‘‘quality improvement’’ each place it appears; 

(C) in paragraphs (1)(A)(iii)(I) and (2) of section 1842(l), 

by striking ‘‘peer review organization’’ and inserting 

‘‘quality improvement organization’’; 

(D) in subparagraphs (A) and (B) of section 1866(a)(3), 

by striking ‘‘peer review’’ and inserting ‘‘quality improvement’’; 

(E) in section 1867(d)(3), in the heading, by striking 

‘‘PEER REVIEW’’ and inserting ‘‘QUALITY IMPROVEMENT’’; and 

(F) in section 1869(c)(3)(G), by striking ‘‘peer review 

organizations’’ and inserting ‘‘quality improvement 

organizations’’. 

(b) IMPROVEMENTS WITH RESPECT TO THE CONTRACT.— 

(1) FLEXIBILITY WITH RESPECT TO THE GEOGRAPHIC SCOPE

OF CONTRACTS.—Section 1153 of the Social Security Act (42 

U.S.C. 1320c–2) is amended— 

(A) by striking subsection (a) and inserting the following new subsection: 

42 USC 1395ff. 

42 USC 1395dd. 

42 USC 1395cc. 

42 USC 1395u. 

42 USC 1395g, 

1395k, 1395x, 

1395pp. 

42 USC 1395y, 

1395cc, 1395dd, 

1395ff, 1395mm, 

1395pp, 1395ww. 

42 USC 

1320c–1320c–7, 

1320c–9, 

1320c–10. 

42 USC 1320c–3. 

42 USC 1320c–1, 

1320c–2. 


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125 STAT. 424 PUBLIC LAW 112–40—OCT. 21, 2011 

‘‘(a) The Secretary shall establish throughout the United States 

such local, State, regional, national, or other geographic areas as 

the Secretary determines appropriate with respect to which contracts under this part will be made.’’; 

(B) in subsection (b)(1), as amended by subsection 

(a)(2)— 

(i) in the first sentence, by striking ‘‘a contract 

with a quality improvement organization’’ and 

inserting ‘‘contracts with one or more quality improvement organizations’’; and 

(ii) in the second sentence, by striking ‘‘meets the 

requirements’’ and all that follows before the period 

at the end and inserting ‘‘will be operating in an area, 

the Secretary shall ensure that there is no duplication 

of the functions carried out by such organizations 

within the area’’; 

(C) in subsection (b)(2)(B), by inserting ‘‘or the Secretary determines that there is a more qualified entity 

to perform one or more of the functions in section 1154(a)’’ 

after ‘‘under this part’’; 

(D) in subsection (b)(3)— 

(i) in subparagraph (A), by striking ‘‘, or association 

of such facilities,’’; and 

(ii) in subparagraph (B)— 

(I) by striking ‘‘or association of such facilities’’; and 

(II) by striking ‘‘or associations’’; and 

(E) by striking subsection (i). 

(2) EXTENSION OF LENGTH OF CONTRACTS.—Section 

1153(c)(3) of the Social Security Act (42 U.S.C. 1320c–2(c)(3)) 

is amended— 

(A) by striking ‘‘three years’’ and inserting ‘‘five years’’; 

and 

(B) by striking ‘‘on a triennial basis’’ and inserting 

‘‘for terms of five years’’. 

(3) AUTHORITY TO TERMINATE IN A MANNER CONSISTENT

WITH THE FEDERAL ACQUISITION REGULATION.—Section 1153 of 

the Social Security Act (42 U.S.C. 1320c–2) is amended— 

(A) in subsection (b), by adding at the end the following 

new paragraph: 

‘‘(4) The Secretary may consider a variety of factors in selecting 

the contractors that the Secretary determines would provide for 

the most efficient and effective administration of this part, such 

as geographic location, size, and prior experience in health care 

quality improvement. Quality improvement organizations operating 

as of January 1, 2012, shall be allowed to compete for new contracts 

(as determined appropriate by the Secretary) along with other qualified organizations and are eligible for renewal of contracts for 

terms five years thereafter (as determined appropriate by the Secretary).’’; 

(B) in subsection (c), by striking paragraphs (4) through 

(6) and redesignating paragraphs (7) and (8) as paragraphs 

(4) and (5), respectively; and 

(C) by striking subsection (d). 

(4) ADMINISTRATIVE IMPROVEMENT.—Section 1153(c)(5) of 

the Social Security Act (42 U.S.C. 1320c–2(c)(5)), as redesignated by this subsection, is amended to read as follows: 


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PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 425 

‘‘(5) reimbursement shall be made to the organization on 

a monthly basis, with payments for any month being made 

consistent with the Federal Acquisition Regulation.’’. 

(c) AUTHORITY FOR QUALITY IMPROVEMENT ORGANIZATIONS TO

PERFORM SPECIALIZED FUNCTIONS AND TO ELIMINATE CONFLICTS

OF INTEREST.—Part B of title XI of the Social Security Act (42 

U.S.C. 1320c et seq.) is amended— 

(1) in section 1153— 

(A) in subsection (b)(1), as amended by subsection 

(b)(1)(B), by inserting after the first sentence the following 

new sentence: ‘‘In entering into contracts with such qualified organizations, the Secretary shall, to the extent appropriate, seek to ensure that each of the functions described 

in section 1154(a) are carried out within an area established under subsection (a).’’; and 

(B) in subsection (c)(1), by striking ‘‘the functions set 

forth in section 1154(a), or may subcontract for the performance of all or some of such functions’’ and inserting ‘‘a 

function or functions under section 1154 directly or may 

subcontract for the performance of all or some of such 

function or functions’’; and 

(2) in section 1154— 

(A) in subsection (a)— 

(i) in the matter preceding paragraph (1)— 

(I) by striking ‘‘Any’’ and inserting ‘‘Subject 

to subsection (b), any’’; and 

(II) by inserting ‘‘one or more of’’ before ‘‘the 

following functions’’; 

(ii) in paragraph (4), by striking subparagraph (C); 

(iii) by inserting after paragraph (11) the following 

new paragraph: 

‘‘(12) As part of the organization’s review responsibility 

under paragraph (1), the organization shall review all ambulatory surgical procedures specified pursuant to section 

1833(i)(1)(A) which are performed in the area, or, at the discretion of the Secretary, a sample of such procedures.’’; and 

(iv) in paragraph (15), by striking ‘‘significant onsite review activities’’ and all that follows before the 

period at the end and inserting ‘‘on-site review activities as the Secretary determines appropriate’’. 

(B) by striking subsection (d) and redesignating subsections (b) and (c) as subsections (c) and (d), respectively; 

and 

(C) by inserting after subsection (a) the following new 

subsection: 

‘‘(b) A quality improvement organization entering into a contract with the Secretary to perform a function described in a paragraph under subsection (a) must perform all of the activities 

described in such paragraph, except to the extent otherwise negotiated with the Secretary pursuant to the contract or except for 

a function for which the Secretary determines it is not appropriate 

for the organization to perform, such as a function that could 

cause a conflict of interest with another function.’’. 

(d) QUALITY IMPROVEMENT AS SPECIFIED FUNCTION.—Section 

1154(a) of the Social Security Act (42 U.S.C. 1320c–3(a)) is amended 

by adding at the end the following new paragraph: 

42 USC 1320c–3. 

42 USC 1320c–2. 


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125 STAT. 426 PUBLIC LAW 112–40—OCT. 21, 2011 

‘‘(18) The organization shall perform, subject to the terms 

of the contract, such other activities as the Secretary determines 

may be necessary for the purposes of improving the quality 

of care furnished to individuals with respect to items and 

services for which payment may be made under title XVIII.’’. 

(e) EFFECTIVE DATE.—The amendments made by this section 

shall apply to contracts entered into or renewed on or after January 

1, 2012. 

SEC. 262. RATES FOR MERCHANDISE PROCESSING FEES. 

(a) FEES FOR PERIOD FROM JULY 1, 2014, TO NOVEMBER 30, 

2015.—For the period beginning on July 1, 2014, and ending on 

November 30, 2015, section 13031(a)(9) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) shall 

be applied and administered— 

(1) in subparagraph (A), by substituting ‘‘0.3464’’ for ‘‘0.21’’; 

and 

(2) in subparagraph (B)(i), by substituting ‘‘0.3464’’ for 

‘‘0.21’’. 

(b) FEES FOR PERIOD FROM OCTOBER 1, 2016, TO SEPTEMBER

30, 2019.—For the period beginning on October 1, 2016, and ending 

on September 30, 2019, section 13031(a)(9) of the Consolidated 

Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) 

shall be applied and administered— 

(1) in subparagraph (A), by substituting ‘‘0.1740’’ for ‘‘0.21’’; 

and 

(2) in subparagraph (B)(i), by substituting ‘‘0.1740’’ for 

‘‘0.21’’. 

SEC. 263. TIME FOR REMITTING CERTAIN MERCHANDISE PROCESSING 

FEES. 

(a) IN GENERAL.—Notwithstanding any other provision of law, 

any fees authorized under paragraphs (9) and (10) of section 

13031(a) of the Consolidated Omnibus Budget Reconciliation Act 

of 1985 (19 U.S.C. 58c(a) (9) and (10)) with respect to processing 

merchandise entered on or after October 1, 2012, and before 

November 12, 2012, shall be paid not later than September 25, 

2012, in an amount equivalent to the amount of such fees paid 

by the person responsible for such fees with respect to merchandise 

entered on or after October 1, 2011, and before November 12, 

2011, as determined by the Secretary of the Treasury. 

(b) RECONCILIATION OF MERCHANDISE PROCESSING FEES.— 

(1) IN GENERAL.—Not later than December 12, 2012, the 

Secretary of the Treasury shall reconcile the fees paid pursuant 

to subsection (a) with the fees for services actually provided 

on or after October 1, 2012, and before November 12, 2012. 

(2) REFUNDS OF OVERPAYMENTS.— 

(A) After making the reconciliation required under 

paragraph (1), the Secretary of the Treasury shall refund 

with interest any overpayment of such fees made under 

subsection (a) and make proper adjustments with respect 

to any underpayment of such fees. 

(B) No interest may be assessed with respect to any 

such underpayment that was based on the amount of fees 

Deadlines. 

19 USC 58c note. 

19 USC 58c note. 

42 USC 1320c 

note. 


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PUBLIC LAW 112–40—OCT. 21, 2011 125 STAT. 427 

LEGISLATIVE HISTORY—H.R. 2832: 

CONGRESSIONAL RECORD, Vol. 157 (2011): 

Sept. 7, considered and passed House. 

Sept. 20–22, considered and passed Senate, amended. 

Oct. 12, House concurred in Senate amendment. 

Æ 

paid for merchandise entered on or after October 1, 2012, 

and before November 12, 2012. 

Approved October 21, 2011. 


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