† HR 2832 EAS 
‘‘(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 pro-
vided under chapter 6 after December 31, 2014. 
‘‘(B) EXCEPTION.—Notwithstanding sub-
paragraph (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 adjust-
ment 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;
† HR 2832 EAS 
(2) firms certified as eligible for technical assist-
ance 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
PROVI-
SIONS.—
† HR 2832 EAS 
(A) Section 7527(b) of such Code is amend-
ed by striking ‘‘65 percent (80 percent in the 
case of eligible coverage months beginning before 
February 13, 2011)’’ and inserting ‘‘72.5 per-
cent’’. 
(B) Section 7527(d)(2) of such Code is 
amended by striking ‘‘which is issued before Feb-
ruary 13, 2011’’. 
(C) Section 7527(e) of such Code is amend-
ed by striking ‘‘80 percent’’ and inserting ‘‘72.5 
percent’’. 
(D) Section 7527(e) of such Code is amend-
ed 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 cov-
erage 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
† HR 2832 EAS 
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 In-
vestment Act of 1998 is amended by striking ‘‘In 
the case of eligible coverage months beginning be-
fore February 13, 2011—’’. 
(c) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion 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 begin-
ning after the date which is 30 days after the 
date of the enactment of this Act.
† HR 2832 EAS 
SEC. 242. TAA PRE-CERTIFICATION PERIOD RULE FOR PUR-
POSES 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 Rev-
enue Code of 1986. 
(2) Section 701(c)(2)(C) of the Employee Retire-
ment 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 be-
fore 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.—Notwith-
standing the amendments made by this section 
(and the provisions of law amended thereby), a 
plan shall not be required to modify benefit de-
† HR 2832 EAS 
(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 Secu-
rity 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 
(2) by adding at the end the following new para-
graph: 
‘‘(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 unem-
ployment fund of the State.’’. 
(b) APPLICATION TO FEDERAL PAYMENTS.—
† HR 2832 EAS 
(1) IN GENERAL.—As a condition for admin-
istering 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 as-
sesses and deposits such penalties under provisions of 
State law implementing section 303(a)(11) of the So-
cial Security Act, as added by subsection (a). 
(2) DEFINITION.—For purposes of this sub-
section, the term ‘‘unemployment compensation pro-
gram of the United States’’ means— 
(A) unemployment compensation for Fed-
eral civilian employees under subchapter I of 
chapter 85 of title 5, United States Code; 
(B) unemployment compensation for ex- 
servicemembers 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);
† HR 2832 EAS 
(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 un-
employment compensation; 
(F) any Federal program which increases 
the weekly amount of unemployment compensa-
tion 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 para-
graph (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 en-
actment 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 EM-
PLOYER FAULT. 
(a) IN GENERAL.—Section 3303 of the Internal Rev-
enue Code of 1986 is amended—
† HR 2832 EAS 
(1) by striking subsections (f) and (g); and 
(2) by inserting after subsection (e) the following 
new subsection: 
‘‘(f) PROHIBITION ON NONCHARGING DUE TO EM-
PLOYER 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 de-
termines that— 
‘‘(A) the payment was made because the em-
ployer, 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 ade-
quately 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 pay-
ment from the State unemployment fund for reasons 
other than the reasons described in subparagraphs (A)
† HR 2832 EAS 
and (B) of such paragraph, such as after the first in-
stance 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 para-
graph (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 en-
actment 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 DI-
RECTORY OF NEW HIRES. 
(a) DEFINITION OF NEWLY HIRED EMPLOYEE.—Sec-
tion 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
† HR 2832 EAS 
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 appro-
priating 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 the effective date of such 
amendment. If the State has a 2-year legislative ses-
sion, each year of the session is deemed to be a sepa-
rate regular session of the State legislature.
† HR 2832 EAS 
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 BENE-
FICIARIES. 
(a) AUTHORITY TO CONTRACT WITH A BROAD RANGE 
OF ENTITIES.— 
(1) DEFINITION.—Section 1152 of the Social Se-
curity Act (42 U.S.C. 1320c–1) is amended by strik-
ing paragraphs (1) and (2) and inserting the fol-
lowing 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 administra-
tion of this part and title XVIII; 
‘‘(2) has at least one individual who is a rep-
resentative 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’’;
† HR 2832 EAS 
(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 ‘‘orga-
nizations’’ and inserting ‘‘quality improvement’’. 
(3) CONFORMING AMENDMENTS TO THE MEDI-
CARE 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 im-
provement’’ 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 organi-
zation’’ and inserting ‘‘quality improvement or-
ganization’’; 
(D) in subparagraphs (A) and (B) of sec-
tion 1866(a)(3), by striking ‘‘peer review’’ and 
inserting ‘‘quality improvement’’;
† HR 2832 EAS 
(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 ‘‘qual-
ity improvement organizations’’. 
(b) IMPROVEMENTS WITH RESPECT
TO
THE CON-
TRACT.— 
(1) FLEXIBILITY WITH RESPECT TO THE GEO-
GRAPHIC SCOPE OF CONTRACTS.—Section 1153 of the 
Social Security Act (42 U.S.C. 1320c–2) is amend-
ed— 
(A) by striking subsection (a) and inserting 
the following new subsection: 
‘‘(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 orga-
nization’’ and inserting ‘‘contracts with one
† HR 2832 EAS 
or more quality improvement organiza-
tions’’; and 
(ii) in the second sentence, by striking 
‘‘meets the requirements’’ and all that fol-
lows before the period at the end and insert-
ing ‘‘will be operating in an area, the Sec-
retary shall ensure that there is no duplica-
tion of the functions carried out by such or-
ganizations 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).
† HR 2832 EAS 
(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 REGU-
LATION.—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 adminis-
tration of this part, such as geographic location, size, and 
prior experience in health care quality improvement. Qual-
ity improvement organizations operating as of January 1, 
2012, shall be allowed to compete for new contracts (as de-
termined appropriate by the Secretary) along with other 
qualified organizations and are eligible for renewal of con-
tracts for terms five years thereafter (as determined appro-
priate by the Secretary).’’;
† HR 2832 EAS 
(B) in subsection (c), by striking para-
graphs (4) through (6) and redesignating para-
graphs (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: 
‘‘(5) reimbursement shall be made to the organi-
zation on a monthly basis, with payments for any 
month being made consistent with the Federal Acqui-
sition Regulation.’’. 
(c) AUTHORITY FOR QUALITY IMPROVEMENT ORGANI-
ZATIONS 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 sub-
section (b)(1)(B), by inserting after the first sen-
tence 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
† HR 2832 EAS 
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 insert-
ing ‘‘Subject to subsection (b), any’’; 
and 
(II) by inserting ‘‘one or more of’’ 
before ‘‘the following functions’’; 
(ii) in paragraph (4), by striking sub-
paragraph (C); 
(iii) by inserting after paragraph (11) 
the following new paragraph: 
‘‘(12) As part of the organization’s review re-
sponsibility under paragraph (1), the organization 
shall review all ambulatory surgical procedures speci-
† HR 2832 EAS 
fied pursuant to section 1833(i)(1)(A) which are per-
formed in the area, or, at the discretion of the Sec-
retary, a sample of such procedures.’’; and 
(iv) in paragraph (15), by striking 
‘‘significant on-site 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 redesig-
nating subsections (b) and (c) as subsections (c) 
and (d), respectively; and 
(C) by inserting after subsection (a) the fol-
lowing 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 per-
form all of the activities described in such paragraph, ex-
cept 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 orga-
nization to perform, such as a function that could cause 
a conflict of interest with another function.’’. 
(d) QUALITY IMPROVEMENT
AS SPECIFIED FUNC-
TION.—Section 1154(a) of the Social Security Act (42
† HR 2832 EAS 
U.S.C. 1320c–3(a)) is amended by adding at the end the 
following new paragraph: 
‘‘(18) The organization shall perform, subject to 
the terms of the contract, such other activities as the 
Secretary determines may be necessary for the pur-
poses of improving the quality of care furnished to in-
dividuals 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 NO-
VEMBER 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 Reconcili-
ation 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 Octo-
ber 1, 2016, and ending on September 30, 2019, section
† HR 2832 EAS 
13031(a)(9) of the Consolidated Omnibus Budget Reconcili-
ation 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 provi-
sion of law, any fees authorized under paragraphs (9) and 
(10) of section 13031(a) of the Consolidated Omnibus Budg-
et 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
† HR 2832 EAS 
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 Treas-
ury shall refund with interest any overpayment 
of such fees made under subsection (a) and make 
proper adjustments with respect to any under-
payment of such fees. 
(B) No interest may be assessed with respect 
to any such underpayment that was based on the 
amount of fees paid for merchandise entered on 
or after October 1, 2012, and before November 
12, 2012. 
Attest: 
Secretary.