H. R. 3630—4 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to remuneration received, and taxable years beginning, 
after December 31, 2011. 
TITLE 
II—UNEMPLOYMENT 
BENEFIT 
CONTINUATION AND PROGRAM IM-
PROVEMENT 
SEC. 2001. SHORT TITLE. 
This title may be cited as the ‘‘Extended Benefits, Reemploy-
ment, and Program Integrity Improvement Act’’. 
Subtitle 
A—Reforms 
of 
Unemployment 
Compensation to Promote Work and Job 
Creation 
SEC. 2101. CONSISTENT JOB SEARCH REQUIREMENTS. 
(a) IN GENERAL.—Section 303(a) of the Social Security Act 
is amended by adding at the end the following: 
‘‘(12) A requirement that, as a condition of eligibility for 
regular compensation for any week, a claimant must be able 
to work, available to work, and actively seeking work.’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to weeks beginning after the end of the first session 
of the State legislature which begins after the date of enactment 
of this Act. 
SEC. 2102. STATE FLEXIBILITY TO PROMOTE THE REEMPLOYMENT 
OF UNEMPLOYED WORKERS. 
Title III of the Social Security Act (42 U.S.C. 501 and following) 
is amended by adding at the end the following: 
‘‘DEMONSTRATION PROJECTS 
‘‘SEC. 305. (a) The Secretary of Labor may enter into agree-
ments, with up to 10 States that submit an application described 
in subsection (b), for the purpose of allowing such States to conduct 
demonstration projects to test and evaluate measures designed— 
‘‘(1) to expedite the reemployment of individuals who have 
established a benefit year and are otherwise eligible to claim 
unemployment compensation under the State law of such State; 
or 
‘‘(2) to improve the effectiveness of a State in carrying 
out its State law with respect to reemployment. 
‘‘(b) The Governor of any State desiring to conduct a demonstra-
tion project under this section shall submit an application to the 
Secretary of Labor. Any such application shall include— 
‘‘(1) a general description of the proposed demonstration 
project, including the authority (under the laws of the State) 
for the measures to be tested, as well as the period of time 
during which such demonstration project would be conducted; 
‘‘(2) if a waiver under subsection (c) is requested, a state-
ment describing the specific aspects of the project to which
H. R. 3630—5 
the waiver would apply and the reasons why such waiver 
is needed; 
‘‘(3) a description of the goals and the expected pro-
grammatic outcomes of the demonstration project, including 
how the project would contribute to the objective described 
in subsection (a)(1), subsection (a)(2), or both; 
‘‘(4) assurances (accompanied by supporting analysis) that 
the demonstration project would operate for a period of at 
least 1 calendar year and not result in any increased net 
costs to the State’s account in the Unemployment Trust Fund; 
‘‘(5) a description of the manner in which the State— 
‘‘(A) will conduct an impact evaluation, using a method-
ology appropriate to determine the effects of the demonstra-
tion project, including on individual skill levels, earnings, 
and employment retention; and 
‘‘(B) will determine the extent to which the goals and 
outcomes described in paragraph (3) were achieved; 
‘‘(6) assurances that the State will provide any reports 
relating to the demonstration project, after its approval, as 
the Secretary of Labor may require; and 
‘‘(7) assurances that employment meets the State’s suitable 
work requirement and the requirements of section 3304(a)(5) 
of the Internal Revenue Code of 1986. 
‘‘(c) The Secretary of Labor may waive any of the requirements 
of section 3304(a)(4) of the Internal Revenue Code of 1986 or of 
paragraph (1) or (5) of section 303(a), to the extent and for the 
period the Secretary of Labor considers necessary to enable the 
State to carry out a demonstration project under this section. 
‘‘(d) A demonstration project under this section— 
‘‘(1) may be commenced any time after the date of enact-
ment of this section; 
‘‘(2) may not be approved for a period of time greater 
than 3 years; and 
‘‘(3) must be completed by not later than December 31, 
2015. 
‘‘(e) Activities that may be pursued under a demonstration 
project under this section are limited to— 
‘‘(1) subsidies for employer-provided training, such as wage 
subsidies; and 
‘‘(2) direct disbursements to employers who hire individuals 
receiving unemployment compensation, not to exceed the 
weekly benefit amount for each such individual, to pay part 
of the cost of wages that exceed the unemployed individual’s 
prior benefit level. 
‘‘(f) The Secretary of Labor shall, in the case of any State 
for which an application is submitted under subsection (b)— 
‘‘(1) notify the State as to whether such application has 
been approved or denied within 30 days after receipt of a 
complete application; and 
‘‘(2) provide public notice of the decision within 10 days 
after providing notification to the State in accordance with 
paragraph (1). 
Public notice under paragraph (2) may be provided through the 
Internet or other appropriate means. Any application under this 
section that has not been denied within the 30-day period described 
in paragraph (1) shall be deemed approved, and public notice of
H. R. 3630—6 
any approval under this sentence shall be provided within 10 days 
thereafter. 
‘‘(g) The Secretary of Labor may terminate a demonstration 
project under this section if the Secretary determines that the 
State has violated the substantive terms or conditions of the project. 
‘‘(h) Funding certified under section 302(a) may be used for 
an approved demonstration project.’’. 
SEC. 2103. IMPROVING PROGRAM INTEGRITY BY BETTER RECOVERY 
OF OVERPAYMENTS. 
(a) USE OF UNEMPLOYMENT COMPENSATION TO REPAY OVERPAY-
MENTS.—Section 3304(a)(4)(D) of the Internal Revenue Code of 1986 
and section 303(g)(1) of the Social Security Act are each amended 
by striking ‘‘may’’ and inserting ‘‘shall’’. 
(b) USE OF UNEMPLOYMENT COMPENSATION TO REPAY FEDERAL 
ADDITIONAL COMPENSATION OVERPAYMENTS.—Section 303(g)(3) of 
the Social Security Act is amended by inserting ‘‘Federal additional 
compensation,’’ after ‘‘trade adjustment allowances,’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to weeks beginning after the end of the first session 
of the State legislature which begins after the date of enactment 
of this Act. 
SEC. 2104. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTER-
OPERABILITY. 
(a) IN GENERAL.—Title IX of the Social Security Act is amended 
by adding at the end the following: 
‘‘DATA EXCHANGE STANDARDIZATION FOR IMPROVED 
INTEROPERABILITY 
‘‘Data Exchange Standards 
‘‘SEC. 911. (a)(1) The Secretary of Labor, in consultation with 
an interagency work group which shall be established by the Office 
of Management and Budget, and considering State and employer 
perspectives, shall, by rule, designate a data exchange standard 
for any category of information required under title III, title XII, 
or this title. 
‘‘(2) Data exchange standards designated under paragraph (1) 
shall, to the extent practicable, be nonproprietary and interoperable. 
‘‘(3) In designating data exchange standards under this sub-
section, the Secretary of Labor shall, to the extent practicable, 
incorporate— 
‘‘(A) interoperable standards developed and maintained by 
an international voluntary consensus standards body, as 
defined by the Office of Management and Budget, such as 
the International Organization for Standardization; 
‘‘(B) interoperable standards developed and maintained by 
intergovernmental partnerships, such as the National Informa-
tion Exchange Model; and 
‘‘(C) interoperable standards developed and maintained by 
Federal entities with authority over contracting and financial 
assistance, such as the Federal Acquisition Regulations Council.
H. R. 3630—7 
‘‘Data Exchange Standards for Reporting 
‘‘(b)(1) The Secretary of Labor, in consultation with an inter-
agency work group established by the Office of Management and 
Budget, and considering State and employer perspectives, shall, 
by rule, designate data exchange standards to govern the reporting 
required under title III, title XII, or this title. 
‘‘(2) The data exchange standards required by paragraph (1) 
shall, to the extent practicable— 
‘‘(A) incorporate a widely accepted, nonproprietary, search-
able, computer-readable format; 
‘‘(B) 
be 
consistent 
with 
and 
implement 
applicable 
accounting principles; and 
‘‘(C) be capable of being continually upgraded as necessary. 
‘‘(3) In designating reporting standards under this subsection, 
the Secretary of Labor shall, to the extent practicable, incorporate 
existing nonproprietary standards, such as the eXtensible Markup 
Language.’’. 
(b) EFFECTIVE DATES.— 
(1) DATA EXCHANGE STANDARDS.—The Secretary of Labor 
shall issue a proposed rule under section 911(a)(1) of the Social 
Security Act (as added by subsection (a)) within 12 months 
after the date of the enactment of this section, and shall issue 
a final rule under such section 911(a)(1), after public comment, 
within 24 months after such date of enactment. 
(2) DATA REPORTING STANDARDS.—The reporting standards 
required under section 911(b)(1) of such Act (as so added) 
shall become effective with respect to reports required in the 
first reporting period, after the effective date of the final rule 
referred to in paragraph (1) of this subsection, for which the 
authority for data collection and reporting is established or 
renewed under the Paperwork Reduction Act. 
SEC. 2105. DRUG TESTING OF APPLICANTS. 
Section 303 of the Social Security Act is amended by adding 
at the end the following: 
‘‘(l)(1) Nothing in this Act or any other provision of Federal 
law shall be considered to prevent a State from enacting legislation 
to provide for— 
‘‘(A) testing an applicant for unemployment compensation 
for the unlawful use of controlled substances as a condition 
for receiving such compensation, if such applicant— 
‘‘(i) was terminated from employment with the 
applicant’s most recent employer (as defined under the 
State law) because of the unlawful use of controlled sub-
stances; or 
‘‘(ii) is an individual for whom suitable work (as defined 
under the State law) is only available in an occupation 
that regularly conducts drug testing (as determined under 
regulations issued by the Secretary of Labor); or 
‘‘(B) denying such compensation to such applicant on the 
basis of the result of the testing conducted by the State under 
legislation described in subparagraph (A). 
‘‘(2) For purposes of this subsection— 
‘‘(A) the term ‘unemployment compensation’ has the 
meaning given such term in subsection (d)(2)(A); and
H. R. 3630—8 
‘‘(B) the term ‘controlled substance’ has the meaning given 
such term in section 102 of the Controlled Substances Act 
(21 U.S.C. 802).’’. 
Subtitle B—Provisions Relating To 
Extended Benefits 
SEC. 2121. SHORT TITLE. 
This subtitle may be cited as the ‘‘Unemployment Benefits 
Extension Act of 2012’’. 
SEC. 
2122. 
EXTENSION 
AND 
MODIFICATION 
OF 
EMERGENCY 
UNEMPLOYMENT COMPENSATION PROGRAM. 
(a) EXTENSION.—Section 4007 of the Supplemental Appropria-
tions Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is 
amended— 
(1) in subsection (a)— 
(A) by striking ‘‘Except as provided in subsection (b), 
an’’ and inserting ‘‘An’’; and 
(B) by striking ‘‘March 6, 2012’’ and inserting ‘‘January 
2, 2013’’; and 
(2) by striking subsection (b) and inserting the following: 
‘‘(b) TERMINATION.—No compensation under this title shall be 
payable for any week subsequent to the last week described in 
subsection (a).’’. 
(b) MODIFICATIONS RELATING TO TRIGGERS.— 
(1) FOR
SECOND-TIER
EMERGENCY
UNEMPLOYMENT
COM-
PENSATION.—Section 4002(c) of such Act is amended— 
(A) in the subsection heading, by striking ‘‘SPECIAL 
RULE’’ and inserting ‘‘SECOND-TIER EMERGENCY UNEMPLOY-
MENT COMPENSATION’’; 
(B) in paragraph (1), by striking ‘‘At’’ and all that 
follows through ‘‘augmented by an amount’’ and inserting 
‘‘If, at the time that the amount established in an individ-
ual’s account under subsection (b) is exhausted or at any 
time thereafter, such individual’s State is in an extended 
benefit period (as determined under paragraph (2)), such 
account shall be augmented by an amount (hereinafter 
‘second-tier emergency unemployment compensation’)’’; 
(C) by redesignating paragraph (2) as paragraph (4); 
and 
(D) by inserting after paragraph (1) the following: 
‘‘(2) EXTENDED
BENEFIT
PERIOD.—For purposes of para-
graph (1), a State shall be considered to be in an extended 
benefit period, as of any given time, if such a period would 
then be in effect for such State under such Act if— 
‘‘(A) section 203(f) of the Federal-State Extended 
Unemployment Compensation Act of 1970 were applied 
to such State (regardless of whether the State by law 
had provided for such application); and 
‘‘(B) such section 203(f)— 
‘‘(i) were applied by substituting the applicable 
percentage under paragraph (3) for ‘6.5 percent’ in 
paragraph (1)(A)(i) thereof; and 
‘‘(ii) did not include the requirement under para-
graph (1)(A)(ii) thereof.
H. R. 3630—9 
‘‘(3) APPLICABLE PERCENTAGE.—The applicable percentage 
under this paragraph is, for purposes of determining if a State 
is in an extended benefit period as of a date occurring in 
a week ending— 
‘‘(A) before June 1, 2012, 0 percent; and 
‘‘(B) after the last week under subparagraph (A), 6 
percent.’’. 
(2) FOR THIRD-TIER EMERGENCY UNEMPLOYMENT COMPENSA-
TION.—Section 4002(d) of such Act is amended— 
(A) in paragraph (2)(A), by striking ‘‘under such Act’’ 
and 
inserting 
‘‘under 
the 
Federal-State 
Extended 
Unemployment Compensation Act of 1970’’; 
(B) in paragraph (2)(B)(ii)(I), by striking the matter 
after ‘‘substituting’’ and before ‘‘in paragraph (1)(A)(i) 
thereof’’ and inserting ‘‘the applicable percentage under 
paragraph (3) for ‘6.5 percent’ ’’; 
(C) by redesignating paragraph (3) as paragraph (4); 
and 
(D) by inserting after paragraph (2) the following: 
‘‘(3) APPLICABLE PERCENTAGE.—The applicable percentage 
under this paragraph is, for purposes of determining if a State 
is in an extended benefit period as of a date occurring in 
a week ending— 
‘‘(A) before June 1, 2012, 6 percent; and 
‘‘(B) after the last week under subparagraph (A), 7 
percent.’’. 
(3) FOR
FOURTH-TIER
EMERGENCY
UNEMPLOYMENT
COM-
PENSATION.—Section 4002(e) of such Act is amended— 
(A) in paragraph (2)(A), by striking ‘‘under such Act’’ 
and 
inserting 
‘‘under 
the 
Federal-State 
Extended 
Unemployment Compensation Act of 1970’’; 
(B) in paragraph (2)(B)(ii)(I), by striking the matter 
after ‘‘substituting’’ and before ‘‘in paragraph (1)(A)(i) 
thereof’’ and inserting ‘‘the applicable percentage under 
paragraph (3) for ‘6.5 percent’ ’’; 
(C) by redesignating paragraph (3) as paragraph (4); 
and 
(D) by inserting after paragraph (2) the following: 
‘‘(3) APPLICABLE PERCENTAGE.—The applicable percentage 
under this paragraph is, for purposes of determining if a State 
is in an extended benefit period as of a date occurring in 
a week ending— 
‘‘(A) before June 1, 2012, 8.5 percent; and 
‘‘(B) after the last week under subparagraph (A), 9 
percent.’’. 
(c) MODIFICATIONS
RELATING
TO
WEEKS
OF
EMERGENCY 
UNEMPLOYMENT COMPENSATION.— 
(1) NUMBER
OF
WEEKS
IN
FIRST
TIER
BEGINNING
AFTER 
SEPTEMBER 2, 2012.—Section 4002(b) of such Act is amended— 
(A) by redesignating paragraph (2) as paragraph (3); 
and 
(B) by inserting after paragraph (1) the following: 
‘‘(2) SPECIAL RULE RELATING TO AMOUNTS ESTABLISHED IN 
AN ACCOUNT AS OF A WEEK ENDING AFTER SEPTEMBER 2, 2012.— 
Notwithstanding any provision of paragraph (1), in the case 
of any account established as of a week ending after September 
2, 2012—
H. R. 3630—10 
‘‘(A) paragraph (1)(A) shall be applied by substituting 
‘54 percent’ for ‘80 percent’; and 
‘‘(B) paragraph (1)(B) shall be applied by substituting 
‘14 weeks’ for ‘20 weeks’.’’. 
(2) NUMBER OF WEEKS IN THIRD TIER BEGINNING AFTER 
SEPTEMBER 2, 2012.—Section 4002(d) of such Act is amended 
by adding after paragraph (4) (as so redesignated by subsection 
(b)(2)(C)) the following: 
‘‘(5) SPECIAL RULE RELATING TO AMOUNTS ADDED TO AN 
ACCOUNT AS OF A WEEK ENDING AFTER SEPTEMBER 2, 2012.— 
Notwithstanding any provision of paragraph (1), if augmenta-
tion under this subsection occurs as of a week ending after 
September 2, 2012— 
‘‘(A) paragraph (1)(A) shall be applied by substituting 
‘35 percent’ for ‘50 percent’; and 
‘‘(B) paragraph (1)(B) shall be applied by substituting 
‘9 times’ for ‘13 times’.’’. 
(3) NUMBER OF WEEKS IN FOURTH TIER.—Section 4002(e) 
of such Act is amended by adding after paragraph (4) (as 
so redesignated by subsection (b)(3)(C)) the following: 
‘‘(5) SPECIAL RULES RELATING TO AMOUNTS ADDED TO AN 
ACCOUNT.— 
‘‘(A) MARCH TO MAY OF 2012.— 
‘‘(i) SPECIAL RULE.—Notwithstanding any provision 
of paragraph (1) but subject to the following 2 sen-
tences, if augmentation under this subsection occurs 
as of a week ending after the date of enactment of 
this paragraph and before June 1, 2012 (or if, as of 
such date of enactment, any fourth-tier amounts 
remain in the individual’s account)— 
‘‘(I) paragraph (1)(A) shall be applied by sub-
stituting ‘62 percent’ for ‘24 percent’; and 
‘‘(II) paragraph (1)(B) shall be applied by sub-
stituting ‘16 times’ for ‘6 times’. 
The preceding sentence shall apply only if, at the time 
that the account would be augmented under this 
subparagraph, such individual’s State is not in an 
extended benefit period as determined under the Fed-
eral-State Extended Unemployment Compensation Act 
of 1970. In no event shall the total amount added 
to the account of an individual under this subpara-
graph cause, in the case of an individual described 
in the parenthetical matter in the first sentence of 
this clause, the sum of the total amount previously 
added to such individual’s account under this sub-
section (as in effect before the date of enactment of 
this paragraph) and any further amounts added as 
a result of the enactment of this clause, to exceed 
the total amount allowable under subclause (I) or (II), 
as the case may be. 
‘‘(ii) 
LIMITATION.—Notwithstanding 
any 
other 
provision of this title, the amounts added to the account 
of an individual under this subparagraph may not 
cause the sum of the amounts previously established 
in or added to such account, plus any weeks of extended 
benefits provided to such individual under the Federal- 
State Extended Unemployment Compensation Act of
H. R. 3630—11 
1970 (based on the same exhaustion of regular com-
pensation under section 4001(b)(1)), to in the aggregate 
exceed the lesser of— 
‘‘(I) 282 percent of the total amount of regular 
compensation (including dependents’ allowances) 
payable to the individual during the individual’s 
benefit year under the State law; or 
‘‘(II) 73 times the individual’s average weekly 
benefit amount (as determined under subsection 
(b)(3)) for the benefit year. 
‘‘(B) AFTER
AUGUST
OF
2012.—Notwithstanding any 
provision of paragraph (1), if augmentation under this sub-
section occurs as of a week ending after September 2, 
2012— 
‘‘(i) paragraph (1)(A) shall be applied by sub-
stituting ‘39 percent’ for ‘24 percent’; and 
‘‘(ii) paragraph (1)(B) shall be applied by sub-
stituting ‘10 times’ for ‘6 times’.’’. 
(d) ORDER OF PAYMENTS REQUIREMENT.— 
(1) IN GENERAL.—Section 4001(e) of such Act is amended 
to read as follows: 
‘‘(e) COORDINATION RULE.—An agreement under this section 
shall apply with respect to a State only upon a determination 
by the Secretary that, under the State law or other applicable 
rules of such State, the payment of extended compensation for 
which an individual is otherwise eligible must be deferred until 
after the payment of any emergency unemployment compensation 
under section 4002, as amended by the Unemployment Benefits 
Extension Act of 2012, for which the individual is concurrently 
eligible.’’. 
(2) TECHNICAL
AND
CONFORMING
AMENDMENTS.—Section 
4001(b)(2) of such Act is amended— 
(A) by striking ‘‘or extended compensation’’; and 
(B) by striking ‘‘law (except as provided under sub-
section (e));’’ and inserting ‘‘law;’’. 
(e) FUNDING.—Section 4004(e)(1) of such Act is amended— 
(1) in subparagraph (G), by striking ‘‘and’’ at the end; 
and 
(2) by inserting after subparagraph (H) the following: 
‘‘(I) the amendments made by section 2122 of the 
Unemployment Benefits Extension Act of 2012; and’’. 
(f) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendments made by subsections 
(b), (c), and (d) shall take effect as of February 28, 2012, 
and shall apply with respect to weeks of unemployment begin-
ning after that date. 
(2) WEEK DEFINED.—For purposes of this subsection, the 
term ‘‘week’’ has the meaning given such term under section 
4006 of the Supplemental Appropriations Act, 2008. 
SEC. 2123. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVI-
SIONS. 
(a) 
IN
GENERAL.—Section 
2005 
of 
the 
Assistance 
for 
Unemployed Workers and Struggling Families Act, as contained 
in Public Law 111–5 (26 U.S.C. 3304 note), is amended— 
(1) by striking ‘‘March 7, 2012’’ each place it appears and 
inserting ‘‘December 31, 2012’’; and
H. R. 3630—12 
(2) in subsection (c), by striking ‘‘August 15, 2012’’ and 
inserting ‘‘June 30, 2013’’. 
(b) EXTENSION OF MATCHING FOR STATES WITH NO WAITING 
WEEK.—Section 5 of the Unemployment Compensation Extension 
Act of 2008 (Public Law 110–449; 26 U.S.C. 3304 note) is amended 
by striking ‘‘August 15, 2012’’ and inserting ‘‘June 30, 2013’’. 
(c) EXTENSION OF MODIFICATION OF INDICATORS UNDER THE 
EXTENDED BENEFIT PROGRAM.—Section 203 of the Federal-State 
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 
3304 note) is amended— 
(1) in subsection (d), by striking ‘‘February 29, 2012’’ and 
inserting ‘‘December 31, 2012’’; and 
(2) in subsection (f)(2), by striking ‘‘February 29, 2012’’ 
and inserting ‘‘December 31, 2012’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the enactment of the Temporary 
Payroll Tax Cut Continuation Act of 2011 (Public Law 112–78). 
SEC. 2124. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER 
THE RAILROAD UNEMPLOYMENT INSURANCE ACT. 
(a) 
EXTENSION.—Section 
2(c)(2)(D)(iii) 
of 
the 
Railroad 
Unemployment Insurance Act, as added by section 2006 of the 
American Recovery and Reinvestment Act of 2009 (Public Law 
111–5) and as amended by section 9 of the Worker, Homeownership, 
and Business Assistance Act of 2009 (Public Law 111–92), section 
505 of the Tax Relief, Unemployment Insurance Reauthorization, 
and Job Creation Act of 2010 (Public Law 111–312), and section 
202 of the Temporary Payroll Tax Cut Continuation Act of 2011 
(Public Law 112–78), is amended— 
(1) by striking ‘‘August 31, 2011’’ and inserting ‘‘June 30, 
2012’’; and 
(2) by striking ‘‘February 29, 2012’’ and inserting 
‘‘December 31, 2012’’. 
(b) CLARIFICATION
ON
AUTHORITY
TO
USE
FUNDS.—Funds 
appropriated under either the first or second sentence of clause 
(iv) of section 2(c)(2)(D) of the Railroad Unemployment Insurance 
Act shall be available to cover the cost of additional extended 
unemployment benefits provided under such section 2(c)(2)(D) by 
reason of the amendments made by subsection (a) as well as to 
cover the cost of such benefits provided under such section 
2(c)(2)(D), as in effect on the day before the date of enactment 
of this Act. 
(c) FUNDING FOR ADMINISTRATION.—Out of any funds in the 
Treasury not otherwise appropriated, there are appropriated to 
the Railroad Retirement Board $500,000 for administrative 
expenses associated with the payment of additional extended 
unemployment benefits provided under section 2(c)(2)(D) of the 
Railroad Unemployment Insurance Act by reason of the amend-
ments made by subsection (a), to remain available until expended.
H. R. 3630—13 
Subtitle 
C—Improving 
Reemployment 
Strategies Under the Emergency Unem-
ployment Compensation Program 
SEC. 
2141. 
IMPROVED 
WORK 
SEARCH 
FOR 
THE 
LONG-TERM 
UNEMPLOYED. 
(a) IN GENERAL.—Section 4001(b) of the Supplemental Appro-
priations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) 
is amended— 
(1) by striking ‘‘and’’ at the end of paragraph (2); 
(2) by striking the period at the end of paragraph (3) 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(4) are able to work, available to work, and actively 
seeking work.’’. 
(b) ACTIVELY SEEKING WORK.—Section 4001 of such Act is 
amended by adding at the end the following: 
‘‘(h) ACTIVELY SEEKING WORK.— 
‘‘(1) IN GENERAL.—For purposes of subsection (b)(4), the 
term ‘actively seeking work’ means, with respect to any indi-
vidual, that such individual— 
‘‘(A) is registered for employment services in such a 
manner and to such extent as prescribed by the State 
agency; 
‘‘(B) has engaged in an active search for employment 
that is appropriate in light of the employment available 
in the labor market, the individual’s skills and capabilities, 
and includes a number of employer contacts that is con-
sistent with the standards communicated to the individual 
by the State; 
‘‘(C) has maintained a record of such work search, 
including employers contacted, method of contact, and date 
contacted; and 
‘‘(D) when requested, has provided such work search 
record to the State agency. 
‘‘(2) RANDOM AUDITING.—The Secretary shall establish for 
each State a minimum number of claims for which work search 
records must be audited on a random basis in any given week.’’. 
SEC. 2142. REEMPLOYMENT SERVICES AND REEMPLOYMENT AND 
ELIGIBILITY ASSESSMENT ACTIVITIES. 
(a) PROVISION OF SERVICES AND ACTIVITIES.—Section 4001 of 
such Act, as amended by section 2141(b), is further amended by 
adding at the end the following: 
‘‘(i) PROVISION OF SERVICES AND ACTIVITIES.— 
‘‘(1) IN GENERAL.—An agreement under this section shall 
require the following: 
‘‘(A) The State which is party to such agreement shall 
provide reemployment services and reemployment and 
eligibility assessment activities to each individual— 
‘‘(i) who, on or after the 30th day after the date 
of enactment of the Extended Benefits, Reemployment, 
and Program Integrity Improvement Act, begins 
receiving amounts described in subsections (b) and (c); 
and
H. R. 3630—14 
‘‘(ii) while such individual continues to receive 
emergency unemployment compensation under this 
title. 
‘‘(B) As a condition of eligibility for emergency 
unemployment compensation for any week— 
‘‘(i) a claimant who has been duly referred to 
reemployment services shall participate in such serv-
ices; and 
‘‘(ii) a claimant shall be actively seeking work 
(determined applying subsection (i)). 
‘‘(2) DESCRIPTION
OF
SERVICES
AND
ACTIVITIES.—The 
reemployment services and in-person reemployment and eligi-
bility assessment activities provided to individuals receiving 
emergency unemployment compensation described in paragraph 
(1)— 
‘‘(A) shall include— 
‘‘(i) the provision of labor market and career 
information; 
‘‘(ii) an assessment of the skills of the individual; 
‘‘(iii) orientation to the services available through 
the one-stop centers established under title I of the 
Workforce Investment Act of 1998; and 
‘‘(iv) review of the eligibility of the individual for 
emergency unemployment compensation relating to the 
job search activities of the individual; and 
‘‘(B) may include the provision of— 
‘‘(i) comprehensive and specialized assessments; 
‘‘(ii) individual and group career counseling; 
‘‘(iii) training services; 
‘‘(iv) additional reemployment services; and 
‘‘(v) job search counseling and the development 
or review of an individual reemployment plan that 
includes participation in job search activities and 
appropriate workshops. 
‘‘(3) PARTICIPATION REQUIREMENT.—As a condition of con-
tinuing eligibility for emergency unemployment compensation 
for any week, an individual who has been referred to reemploy-
ment services or reemployment and eligibility assessment 
activities under this subsection shall participate in such serv-
ices or activities, unless the State agency responsible for the 
administration of State unemployment compensation law deter-
mines that— 
‘‘(A) such individual has completed participating in 
such services or activities; or 
‘‘(B) there is justifiable cause for failure to participate 
or to complete participating in such services or activities, 
as determined in accordance with guidance to be issued 
by the Secretary.’’. 
(b) ISSUANCE OF GUIDANCE.—Not later than 30 days after the 
date of enactment of this Act, the Secretary shall issue guidance 
on the implementation of the reemployment services and reemploy-
ment and eligibility assessment activities required to be provided 
under the amendment made by subsection (a). 
(c) FUNDING.— 
(1) IN
GENERAL.—Section 4004(c) of the Supplemental 
Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 
note) is amended—
H. R. 3630—15 
(A) by striking ‘‘STATES.—There’’ and inserting the fol-
lowing: ‘‘STATES.— 
‘‘(1) ADMINISTRATION.—There’’; and 
(B) by adding at the end the following new paragraph: 
‘‘(2) REEMPLOYMENT
SERVICES
AND
REEMPLOYMENT
AND 
ELIGIBILITY ASSESSMENT ACTIVITIES.— 
‘‘(A) APPROPRIATION.—There are appropriated from the 
general fund of the Treasury, for the period of fiscal year 
2012 through fiscal year 2013, out of the employment secu-
rity administration account (as established by section 
901(a) of the Social Security Act), such sums as determined 
by the Secretary of Labor in accordance with subparagraph 
(B) to assist States in providing reemployment services 
and reemployment and eligibility assessment activities 
described in section 4001(h)(2). 
‘‘(B) DETERMINATION OF TOTAL AMOUNT.—The amount 
referred to in subparagraph (A) is the amount the Secretary 
of Labor estimates is equal to— 
‘‘(i) the number of individuals who will receive 
reemployment services and reemployment eligibility 
and 
assessment 
activities 
described 
in 
section 
4001(h)(2) in all States through the date specified in 
section 4007(b)(3); multiplied by 
‘‘(ii) $85. 
‘‘(C) DISTRIBUTION
AMONG
STATES.—Of the amounts 
appropriated under subparagraph (A), the Secretary of 
Labor shall distribute amounts to each State, in accordance 
with section 4003(c), that the Secretary estimates is equal 
to— 
‘‘(i) the number of individuals who will receive 
reemployment services and reemployment and eligi-
bility assessment activities described in section 
4001(h)(2) in such State through the date specified 
in section 4007(b)(3); multiplied by 
‘‘(ii) $85.’’. 
(2) TRANSFER OF FUNDS.—Section 4004(e) of the Supple-
mental Appropriations Act, 2008 (Public Law 110–252; 26 
U.S.C. 3304 note) is amended— 
(A) in paragraph (1)(G), by striking ‘‘and’’ at the end; 
(B) in paragraph (2), by striking the period at the 
end and inserting ‘‘; and’’; and 
(C) by adding at the end the following paragraph: 
‘‘(3) to the Employment Security Administration account 
(as established by section 901(a) of the Social Security Act) 
such sums as the Secretary of Labor determines to be necessary 
in accordance with subsection (c)(2) to assist States in providing 
reemployment services and reemployment eligibility and assess-
ment activities described in section 4001(h)(2).’’. 
SEC. 2143. PROMOTING PROGRAM INTEGRITY THROUGH BETTER 
RECOVERY OF OVERPAYMENTS. 
Section 4005(c)(1) of the Supplemental Appropriations Act, 2008 
(Public Law 110–252; 26 U.S.C. 3304 note) is amended— 
(1) by striking ‘‘may’’ and inserting ‘‘shall’’; and 
(2) by striking ‘‘except that’’ and all that follows through 
‘‘made’’ and inserting ‘‘in accordance with the same procedures
H. R. 3630—16 
as apply to the recovery of overpayments of regular unemploy-
ment benefits paid by the State’’. 
SEC. 2144. RESTORE STATE FLEXIBILITY TO IMPROVE UNEMPLOY-
MENT PROGRAM SOLVENCY. 
Subsection (g) of section 4001 of the Supplemental Appropria-
tions Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) shall 
not apply with respect to a State that has enacted a law before 
March 1, 2012, that, upon taking effect, would violate such sub-
section. 
Subtitle D—Short-Time Compensation 
Program 
SEC. 2160. SHORT TITLE. 
This subtitle may be cited as the ‘‘Layoff Prevention Act of 
2012’’. 
SEC. 2161. TREATMENT OF SHORT-TIME COMPENSATION PROGRAMS. 
(a) DEFINITION.— 
(1) IN GENERAL.—Section 3306 of the Internal Revenue 
Code of 1986 (26 U.S.C. 3306) is amended by adding at the 
end the following new subsection: 
‘‘(v) SHORT-TIME COMPENSATION PROGRAM.—For purposes of 
this part, the term ‘short-time compensation program’ means a 
program under which— 
‘‘(1) the participation of an employer is voluntary; 
‘‘(2) an employer reduces the number of hours worked 
by employees in lieu of layoffs; 
‘‘(3) such employees whose workweeks have been reduced 
by at least 10 percent, and by not more than the percentage, 
if any, that is determined by the State to be appropriate (but 
in no case more than 60 percent), are not disqualified from 
unemployment compensation; 
‘‘(4) the amount of unemployment compensation payable 
to any such employee is a pro rata portion of the unemployment 
compensation which would otherwise be payable to the 
employee if such employee were unemployed; 
‘‘(5) such employees meet the availability for work and 
work search test requirements while collecting short-time com-
pensation benefits, by being available for their workweek as 
required by the State agency; 
‘‘(6) eligible employees may participate, as appropriate, in 
training (including employer-sponsored training or worker 
training funded under the Workforce Investment Act of 1998) 
to enhance job skills if such program has been approved by 
the State agency; 
‘‘(7) the State agency shall require employers to certify 
that if the employer provides health benefits and retirement 
benefits under a defined benefit plan (as defined in section 
414(j)) or contributions under a defined contribution plan (as 
defined in section 414(i)) to any employee whose workweek 
is reduced under the program that such benefits will continue 
to be provided to employees participating in the short-time 
compensation program under the same terms and conditions 
as though the workweek of such employee had not been reduced
H. R. 3630—17 
or to the same extent as other employees not participating 
in the short-time compensation program; 
‘‘(8) the State agency shall require an employer to submit 
a written plan describing the manner in which the requirements 
of this subsection will be implemented (including a plan for 
giving advance notice, where feasible, to an employee whose 
workweek is to be reduced) together with an estimate of the 
number of layoffs that would have occurred absent the ability 
to participate in short-time compensation and such other 
information as the Secretary of Labor determines is appro-
priate; 
‘‘(9) the terms of the employer’s written plan and 
implementation shall be consistent with employer obligations 
under applicable Federal and State laws; and 
‘‘(10) upon request by the State and approval by the Sec-
retary of Labor, only such other provisions are included in 
the State law that are determined to be appropriate for pur-
poses of a short-time compensation program.’’. 
(2) EFFECTIVE DATE.—Subject to paragraph (3), the amend-
ment made by paragraph (1) shall take effect on the date 
of the enactment of this Act. 
(3) TRANSITION PERIOD FOR EXISTING PROGRAMS.—In the 
case of a State that is administering a short-time compensation 
program as of the date of the enactment of this Act and the 
State law cannot be administered consistent with the amend-
ment made by paragraph (1), such amendment shall take effect 
on the earlier of— 
(A) the date the State changes its State law in order 
to be consistent with such amendment; or 
(B) the date that is 2 years and 6 months after the 
date of the enactment of this Act. 
(b) CONFORMING AMENDMENTS.— 
(1) INTERNAL REVENUE CODE OF 1986.— 
(A) Subparagraph (E) of section 3304(a)(4) of the 
Internal Revenue Code of 1986 is amended to read as 
follows: 
‘‘(E) amounts may be withdrawn for the payment of 
short-time compensation under a short-time compensation 
program (as defined under section 3306(v));’’. 
(B) Subsection (f) of section 3306 of the Internal Rev-
enue Code of 1986 is amended— 
(i) by striking paragraph (5) (relating to short- 
time compensation) and inserting the following new 
paragraph: 
‘‘(5) amounts may be withdrawn for the payment of short- 
time compensation under a short-time compensation program 
(as defined in subsection (v)); and’’; and 
(ii) by redesignating paragraph (5) (relating to self- 
employment assistance program) as paragraph (6). 
(2) SOCIAL SECURITY ACT.—Section 303(a)(5) of the Social 
Security Act is amended by striking ‘‘the payment of short- 
time compensation under a plan approved by the Secretary 
of Labor’’ and inserting ‘‘the payment of short-time compensa-
tion under a short-time compensation program (as defined in 
section 3306(v) of the Internal Revenue Code of 1986)’’. 
(3) UNEMPLOYMENT COMPENSATION AMENDMENTS OF 1992.— 
Subsections (b) through (d) of section 401 of the Unemployment
H. R. 3630—18 
Compensation Amendments of 1992 (26 U.S.C. 3304 note) are 
repealed. 
SEC. 2162. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION 
PAYMENTS IN STATES WITH PROGRAMS IN LAW. 
(a) PAYMENTS TO STATES.— 
(1) IN GENERAL.—Subject to paragraph (3), there shall be 
paid to a State an amount equal to 100 percent of the amount 
of short-time compensation paid under a short-time compensa-
tion program (as defined in section 3306(v) of the Internal 
Revenue Code of 1986, as added by section 2161(a)) under 
the provisions of the State law. 
(2) TERMS OF PAYMENTS.—Payments made to a State under 
paragraph (1) shall be payable by way of reimbursement in 
such amounts as the Secretary estimates the State will be 
entitled to receive under this section for each calendar month, 
reduced or increased, as the case may be, by any amount 
by which the Secretary finds that the Secretary’s estimates 
for any prior calendar month were greater or less than the 
amounts which should have been paid to the State. Such esti-
mates may be made on the basis of such statistical, sampling, 
or other method as may be agreed upon by the Secretary 
and the State agency of the State involved. 
(3) LIMITATIONS ON PAYMENTS.— 
(A) GENERAL
PAYMENT
LIMITATIONS.—No payments 
shall be made to a State under this section for short- 
time compensation paid to an individual by the State 
during a benefit year in excess of 26 times the amount 
of regular compensation (including dependents’ allowances) 
under the State law payable to such individual for a week 
of total unemployment. 
(B) EMPLOYER
LIMITATIONS.—No payments shall be 
made to a State under this section for benefits paid to 
an individual by the State under a short-time compensation 
program if such individual is employed by the participating 
employer on a seasonal, temporary, or intermittent basis. 
(b) APPLICABILITY.— 
(1) IN GENERAL.—Payments to a State under subsection 
(a) shall be available for weeks of unemployment— 
(A) beginning on or after the date of the enactment 
of this Act; and 
(B) ending on or before the date that is 3 years and 
6 months after the date of the enactment of this Act. 
(2) THREE-YEAR FUNDING LIMITATION FOR COMBINED PAY-
MENTS UNDER THIS SECTION AND SECTION 2163.—States may 
receive payments under this section and section 2163 with 
respect to a total of not more than 156 weeks. 
(c) TWO-YEAR TRANSITION PERIOD FOR EXISTING PROGRAMS.— 
During any period that the transition provision under section 
2161(a)(3) is applicable to a State with respect to a short-time 
compensation program, such State shall be eligible for payments 
under this section. Subject to paragraphs (1)(B) and (2) of subsection 
(b), if at any point after the date of the enactment of this Act 
the State enacts a State law providing for the payment of short- 
time compensation under a short-time compensation program that 
meets the definition of such a program under section 3306(v) of 
the Internal Revenue Code of 1986, as added by section 2161(a),
H. R. 3630—19 
the State shall be eligible for payments under this section after 
the effective date of such enactment. 
(d) FUNDING AND CERTIFICATIONS.— 
(1) FUNDING.—There are appropriated, out of moneys in 
the Treasury not otherwise appropriated, such sums as may 
be necessary for purposes of carrying out this section. 
(2) CERTIFICATIONS.—The Secretary shall from time to time 
certify to the Secretary of the Treasury for payment to each 
State the sums payable to such State under this section. 
(e) DEFINITIONS.—In this section: 
(1) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 
of Labor. 
(2) STATE; STATE AGENCY; STATE LAW.—The terms ‘‘State’’, 
‘‘State agency’’, and ‘‘State law’’ have the meanings given those 
terms in section 205 of the Federal-State Extended Unemploy-
ment Compensation Act of 1970 (26 U.S.C. 3304 note). 
SEC. 2163. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION 
AGREEMENTS. 
(a) FEDERAL-STATE AGREEMENTS.— 
(1) IN GENERAL.—Any State which desires to do so may 
enter into, and participate in, an agreement under this section 
with the Secretary provided that such State’s law does not 
provide for the payment of short-time compensation under a 
short-time compensation program (as defined in section 3306(v) 
of the Internal Revenue Code of 1986, as added by section 
2161(a)). 
(2) ABILITY TO TERMINATE.—Any State which is a party 
to an agreement under this section may, upon providing 30 
days’ written notice to the Secretary, terminate such agreement. 
(b) PROVISIONS OF FEDERAL-STATE AGREEMENT.— 
(1) IN GENERAL.—Any agreement under this section shall 
provide that the State agency of the State will make payments 
of short-time compensation under a plan approved by the State. 
Such plan shall provide that payments are made in accordance 
with the requirements under section 3306(v) of the Internal 
Revenue Code of 1986, as added by section 2161(a). 
(2) LIMITATIONS ON PLANS.— 
(A) GENERAL
PAYMENT
LIMITATIONS.—A short-time 
compensation plan approved by a State shall not permit 
the payment of short-time compensation to an individual 
by the State during a benefit year in excess of 26 times 
the amount of regular compensation (including dependents’ 
allowances) under the State law payable to such individual 
for a week of total unemployment. 
(B) EMPLOYER LIMITATIONS.—A short-time compensa-
tion plan approved by a State shall not provide payments 
to an individual if such individual is employed by the 
participating employer on a seasonal, temporary, or inter-
mittent basis. 
(3) EMPLOYER PAYMENT OF COSTS.—Any short-time com-
pensation plan entered into by an employer must provide that 
the employer will pay the State an amount equal to one- 
half of the amount of short-time compensation paid under such 
plan. Such amount shall be deposited in the State’s unemploy-
ment fund and shall not be used for purposes of calculating
H. R. 3630—20 
an employer’s contribution rate under section 3303(a)(1) of the 
Internal Revenue Code of 1986. 
(c) PAYMENTS TO STATES.— 
(1) IN GENERAL.—There shall be paid to each State with 
an agreement under this section an amount equal to— 
(A) one-half of the amount of short-time compensation 
paid to individuals by the State pursuant to such agree-
ment; and 
(B) any additional administrative expenses incurred 
by the State by reason of such agreement (as determined 
by the Secretary). 
(2) TERMS OF PAYMENTS.—Payments made to a State under 
paragraph (1) shall be payable by way of reimbursement in 
such amounts as the Secretary estimates the State will be 
entitled to receive under this section for each calendar month, 
reduced or increased, as the case may be, by any amount 
by which the Secretary finds that the Secretary’s estimates 
for any prior calendar month were greater or less than the 
amounts which should have been paid to the State. Such esti-
mates may be made on the basis of such statistical, sampling, 
or other method as may be agreed upon by the Secretary 
and the State agency of the State involved. 
(3) FUNDING.—There are appropriated, out of moneys in 
the Treasury not otherwise appropriated, such sums as may 
be necessary for purposes of carrying out this section. 
(4) CERTIFICATIONS.—The Secretary shall from time to time 
certify to the Secretary of the Treasury for payment to each 
State the sums payable to such State under this section. 
(d) APPLICABILITY.— 
(1) IN GENERAL.—An agreement entered into under this 
section shall apply to weeks of unemployment— 
(A) beginning on or after the date on which such agree-
ment is entered into; and 
(B) ending on or before the date that is 2 years and 
13 weeks after the date of the enactment of this Act. 
(2) TWO-YEAR
FUNDING
LIMITATION.—States may receive 
payments under this section with respect to a total of not 
more than 104 weeks. 
(e) SPECIAL RULE.—If a State has entered into an agreement 
under this section and subsequently enacts a State law providing 
for the payment of short-time compensation under a short-time 
compensation program that meets the definition of such a program 
under section 3306(v) of the Internal Revenue Code of 1986, as 
added by section 2161(a), the State— 
(1) shall not be eligible for payments under this section 
for weeks of unemployment beginning after the effective date 
of such State law; and 
(2) subject to paragraphs (1)(B) and (2) of section 2162(b), 
shall be eligible to receive payments under section 2162 after 
the effective date of such State law. 
(f) DEFINITIONS.—In this section: 
(1) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 
of Labor. 
(2) STATE; STATE AGENCY; STATE LAW.—The terms ‘‘State’’, 
‘‘State agency’’, and ‘‘State law’’ have the meanings given those 
terms in section 205 of the Federal-State Extended Unemploy-
ment Compensation Act of 1970 (26 U.S.C. 3304 note).
H. R. 3630—21 
SEC. 2164. GRANTS FOR SHORT-TIME COMPENSATION PROGRAMS. 
(a) GRANTS.— 
(1) FOR IMPLEMENTATION OR IMPROVED ADMINISTRATION.— 
The Secretary shall award grants to States that enact short- 
time compensation programs (as defined in subsection (i)(2)) 
for the purpose of implementation or improved administration 
of such programs. 
(2) FOR PROMOTION AND ENROLLMENT.—The Secretary shall 
award grants to States that are eligible and submit plans 
for a grant under paragraph (1) for such States to promote 
and enroll employers in short-time compensation programs (as 
so defined). 
(3) ELIGIBILITY.— 
(A) IN GENERAL.—The Secretary shall determine eligi-
bility criteria for the grants under paragraphs (1) and 
(2). 
(B) CLARIFICATION.—A State administering a short- 
time compensation program, including a program being 
administered by a State that is participating in the transi-
tion under the provisions of sections 301(a)(3) and 302(c), 
that does not meet the definition of a short-time compensa-
tion program under section 3306(v) of the Internal Revenue 
Code of 1986 (as added by 211(a)), and a State with an 
agreement under section 2163, shall not be eligible to 
receive a grant under this section until such time as the 
State law of the State provides for payments under a 
short-time compensation program that meets such defini-
tion and such law. 
(b) AMOUNT OF GRANTS.— 
(1) IN
GENERAL.—The maximum amount available for 
making grants to a State under paragraphs (1) and (2) shall 
be equal to the amount obtained by multiplying $100,000,000 
(less the amount used by the Secretary under subsection (e)) 
by the same ratio as would apply under subsection (a)(2)(B) 
of section 903 of the Social Security Act (42 U.S.C. 1103) 
for purposes of determining such State’s share of any excess 
amount (as described in subsection (a)(1) of such section) that 
would have been subject to transfer to State accounts, as of 
October 1, 2010, under the provisions of subsection (a) of such 
section. 
(2) AMOUNT AVAILABLE FOR DIFFERENT GRANTS.—Of the 
maximum incentive payment determined under paragraph (1) 
with respect to a State— 
(A) one-third shall be available for a grant under sub-
section (a)(1); and 
(B) two-thirds shall be available for a grant under 
subsection (a)(2). 
(c) GRANT APPLICATION AND DISBURSAL.— 
(1) APPLICATION.—Any State seeking a grant under para-
graph (1) or (2) of subsection (a) shall submit an application 
to the Secretary at such time, in such manner, and complete 
with such information as the Secretary may require. In no 
case may the Secretary award a grant under this section with 
respect to an application that is submitted after December 
31, 2014. 
(2) NOTICE.—The Secretary shall, within 30 days after 
receiving a complete application, notify the State agency of
H. R. 3630—22 
the State of the Secretary’s findings with respect to the require-
ments for a grant under paragraph (1) or (2) (or both) of 
subsection (a). 
(3) CERTIFICATION.—If the Secretary finds that the State 
law provisions meet the requirements for a grant under sub-
section (a), the Secretary shall thereupon make a certification 
to that effect to the Secretary of the Treasury, together with 
a certification as to the amount of the grant payment to be 
transferred to the State account in the Unemployment Trust 
Fund (as established in section 904(a) of the Social Security 
Act (42 U.S.C. 1104(a))) pursuant to that finding. The Secretary 
of the Treasury shall make the appropriate transfer to the 
State account within 7 days after receiving such certification. 
(4) REQUIREMENT.—No certification of compliance with the 
requirements for a grant under paragraph (1) or (2) of sub-
section (a) may be made with respect to any State whose— 
(A) State law is not otherwise eligible for certification 
under section 303 of the Social Security Act (42 U.S.C. 
503) or approvable under section 3304 of the Internal Rev-
enue Code of 1986; or 
(B) short-time compensation program is subject to dis-
continuation or is not scheduled to take effect within 12 
months of the certification. 
(d) USE OF FUNDS.—The amount of any grant awarded under 
this section shall be used for the implementation of short-time 
compensation programs and the overall administration of such pro-
grams and the promotion and enrollment efforts associated with 
such programs, such as through— 
(1) the creation or support of rapid response teams to 
advise employers about alternatives to layoffs; 
(2) the provision of education or assistance to employers 
to enable them to assess the feasibility of participating in 
short-time compensation programs; and 
(3) the development or enhancement of systems to auto-
mate— 
(A) the submission and approval of plans; and 
(B) the filing and approval of new and ongoing short- 
time compensation claims. 
(e) ADMINISTRATION.—The Secretary is authorized to use 0.25 
percent of the funds available under subsection (g) to provide for 
outreach and to share best practices with respect to this section 
and short-time compensation programs. 
(f) RECOUPMENT.—The Secretary shall establish a process under 
which the Secretary shall recoup the amount of any grant awarded 
under paragraph (1) or (2) of subsection (a) if the Secretary deter-
mines that, during the 5-year period beginning on the first date 
that any such grant is awarded to the State, the State— 
(1) terminated the State’s short-time compensation pro-
gram; or 
(2) failed to meet appropriate requirements with respect 
to such program (as established by the Secretary). 
(g) FUNDING.—There are appropriated, out of moneys in the 
Treasury not otherwise appropriated, to the Secretary, $100,000,000 
to carry out this section, to remain available without fiscal year 
limitation.
H. R. 3630—23 
(h) REPORTING.—The Secretary may establish reporting require-
ments for States receiving a grant under this section in order 
to provide oversight of grant funds. 
(i) DEFINITIONS.—In this section: 
(1) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 
of Labor. 
(2) SHORT-TIME COMPENSATION PROGRAM.—The term ‘‘short- 
time compensation program’’ has the meaning given such term 
in section 3306(v) of the Internal Revenue Code of 1986, as 
added by section 2161(a). 
(3) STATE; STATE AGENCY; STATE LAW.—The terms ‘‘State’’, 
‘‘State agency’’, and ‘‘State law’’ have the meanings given those 
terms in section 205 of the Federal-State Extended Unemploy-
ment Compensation Act of 1970 (26 U.S.C. 3304 note). 
SEC. 2165. ASSISTANCE AND GUIDANCE IN IMPLEMENTING PROGRAMS. 
(a) IN GENERAL.—In order to assist States in establishing, 
qualifying, and implementing short-time compensation programs 
(as defined in section 3306(v) of the Internal Revenue Code of 
1986, as added by section 2161(a)), the Secretary of Labor (in 
this section referred to as the ‘‘Secretary’’) shall— 
(1) develop model legislative language which may be used 
by States in developing and enacting such programs and 
periodically review and revise such model legislative language; 
(2) provide technical assistance and guidance in developing, 
enacting, and implementing such programs; 
(3) establish reporting requirements for States, including 
reporting on— 
(A) the number of estimated averted layoffs; 
(B) the number of participating employers and workers; 
and 
(C) such other items as the Secretary of Labor deter-
mines are appropriate. 
(b) MODEL LANGUAGE AND GUIDANCE.—The model language 
and guidance developed under subsection (a) shall allow sufficient 
flexibility by States and participating employers while ensuring 
accountability and program integrity. 
(c) CONSULTATION.—In developing the model legislative lan-
guage and guidance under subsection (a), and in order to meet 
the requirements of subsection (b), the Secretary shall consult with 
employers, labor organizations, State workforce agencies, and other 
program experts. 
SEC. 2166. REPORTS. 
(a) REPORT.— 
(1) IN GENERAL.—Not later than 4 years after the date 
of the enactment of this Act, the Secretary of Labor shall 
submit to Congress and to the President a report or reports 
on the implementation of the provisions of this subtitle. 
(2) REQUIREMENTS.—Any report under paragraph (1) shall 
at a minimum include the following: 
(A) A description of best practices by States and 
employers in the administration, promotion, and use of 
short-time compensation programs (as defined in section 
3306(v) of the Internal Revenue Code of 1986, as added 
by section 2161(a)).
H. R. 3630—24 
(B) An analysis of the significant challenges to State 
enactment and implementation of short-time compensation 
programs. 
(C) A survey of employers in all States to determine 
the level of interest in participating in short-time com-
pensation programs. 
(b) FUNDING.—There are appropriated, out of any moneys in 
the Treasury not otherwise appropriated, to the Secretary of Labor, 
$1,500,000 to carry out this section, to remain available without 
fiscal year limitation. 
Subtitle E—Self-Employment Assistance 
SEC. 2181. STATE ADMINISTRATION OF SELF-EMPLOYMENT ASSIST-
ANCE PROGRAMS. 
(a) AVAILABILITY FOR INDIVIDUALS RECEIVING EXTENDED COM-
PENSATION.—Title II of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended by 
inserting at the end the following new section: 
‘‘AUTHORITY TO CONDUCT SELF-EMPLOYMENT ASSISTANCE PROGRAMS 
‘‘SEC. 208. (a)(1) At the option of a State, for any weeks of 
unemployment beginning after the date of enactment of this section, 
the State agency of the State may establish a self-employment 
assistance program, as described in subsection (b), to provide for 
the payment of extended compensation as self-employment assist-
ance allowances to individuals who would otherwise satisfy the 
eligibility criteria under this title. 
‘‘(2) Subject to paragraph (3), the self-employment assistance 
allowance described in paragraph (1) shall be paid to an eligible 
individual from such individual’s extended compensation account, 
as described in section 202(b), and the amount in such account 
shall be reduced accordingly. 
‘‘(3)(A) Subject to subparagraph (B), for purposes of self-employ-
ment assistance programs established under this section and section 
4001(j) of the Supplemental Appropriations Act, 2008, an individual 
shall be provided with self-employment assistance allowances under 
such programs for a total of not greater than 26 weeks (referred 
to in this section as the ‘combined eligibility limit’). 
‘‘(B) For purposes of an individual who is participating in 
a self-employment assistance program established under this sec-
tion and has not reached the combined eligibility limit as of the 
date on which such individual exhausts all rights to extended 
compensation under this title, the individual shall be eligible to 
receive self-employment assistance allowances under a self-employ-
ment assistance program established under section 4001(j) of the 
Supplemental Appropriations Act, 2008, until such individual has 
reached the combined eligibility limit, provided that the individual 
otherwise satisfies the eligibility criteria described under title IV 
of such Act. 
‘‘(b) For the purposes of this section, the term ‘self-employment 
assistance program’ means a program as defined under section 
3306(t) of the Internal Revenue Code of 1986, except as follows: 
‘‘(1) all references to ‘regular unemployment compensation 
under the State law’ shall be deemed to refer instead to
H. R. 3630—25 
‘extended compensation under title II of the Federal-State 
Extended Unemployment Compensation Act of 1970’; 
‘‘(2) paragraph (3)(B) shall not apply; 
‘‘(3) clause (i) of paragraph (3)(C) shall be deemed to state 
as follows: 
‘‘ ‘(i) include any entrepreneurial training that the 
State or non-profit organizations may provide in 
coordination with programs of training offered by the 
Small Business Administration, which may include 
business counseling, mentorship for participants, 
access to small business development resources, and 
technical assistance; and’; 
‘‘(4) the reference to ‘5 percent’ in paragraph (4) shall 
be deemed to refer instead to ‘1 percent’; and 
‘‘(5) paragraph (5) shall not apply. 
‘‘(c) In the case of an individual who is eligible to receive 
extended compensation under this title, such individual shall not 
receive self-employment assistance allowances under this section 
unless the State agency has a reasonable expectation that such 
individual will be entitled to at least 13 times the individual’s 
average weekly benefit amount of extended compensation and emer-
gency unemployment compensation. 
‘‘(d)(1) An individual who is participating in a self-employment 
assistance program established under this section may elect to 
discontinue participation in such program at any time. 
‘‘(2) For purposes of an individual whose participation in a 
self-employment assistance program established under this section 
is terminated pursuant to subsection (a)(3) or who has discontinued 
participation in such program, if the individual continues to satisfy 
the eligibility requirements for extended compensation under this 
title, the individual shall receive extended compensation payments 
with respect to subsequent weeks of unemployment, to the extent 
that amounts remain in the account established for such individual 
under section 202(b).’’. 
(b) AVAILABILITY
FOR
INDIVIDUALS
RECEIVING
EMERGENCY 
UNEMPLOYMENT COMPENSATION.—Section 4001 of the Supplemental 
Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 
note), as amended by sections 2141(b) and 2142(a), is further 
amended by inserting at the end the following new subsection: 
‘‘(j) AUTHORITY
TO CONDUCT SELF-EMPLOYMENT ASSISTANCE 
PROGRAM.— 
‘‘(1) IN GENERAL.— 
‘‘(A) ESTABLISHMENT.—Any agreement under sub-
section (a) may provide that the State agency of the State 
shall establish a self-employment assistance program, as 
described in paragraph (2), to provide for the payment 
of emergency unemployment compensation as self-employ-
ment assistance allowances to individuals who would other-
wise satisfy the eligibility criteria specified in subsection 
(b). 
‘‘(B) PAYMENT OF ALLOWANCES.—Subject to subpara-
graph (C), the self-employment assistance allowance 
described in subparagraph (A) shall be paid to an eligible 
individual from such individual’s emergency unemployment 
compensation account, as described in section 4002, and 
the amount in such account shall be reduced accordingly.
H. R. 3630—26 
‘‘(C) LIMITATION ON SELF-EMPLOYMENT ASSISTANCE FOR 
INDIVIDUALS
RECEIVING
EXTENDED
COMPENSATION
AND 
EMERGENCY UNEMPLOYMENT COMPENSATION.— 
‘‘(i) COMBINED
ELIGIBILITY
LIMIT.—Subject to 
clause (ii), for purposes of self-employment assistance 
programs established under this subsection and section 
208 of the Federal-State Extended Unemployment 
Compensation Act of 1970, an individual shall be pro-
vided with self-employment assistance allowances 
under such programs for a total of not greater than 
26 weeks (referred to in this subsection as the ‘com-
bined eligibility limit’). 
‘‘(ii) CARRYOVER RULE.—For purposes of an indi-
vidual who is participating in a self-employment assist-
ance program established under this subsection and 
has not reached the combined eligibility limit as of 
the date on which such individual exhausts all rights 
to extended compensation under this title, the indi-
vidual shall be eligible to receive self-employment 
assistance allowances under a self-employment assist-
ance program established under section 208 of the 
Federal-State Extended Unemployment Compensation 
Act of 1970 until such individual has reached the com-
bined eligibility limit, provided that the individual 
otherwise satisfies the eligibility criteria described 
under title II of such Act. 
‘‘(2) DEFINITION
OF ‘SELF-EMPLOYMENT
ASSISTANCE
PRO-
GRAM’.—For the purposes of this section, the term ‘self-employ-
ment assistance program’ means a program as defined under 
section 3306(t) of the Internal Revenue Code of 1986, except 
as follows: 
‘‘(A) all references to ‘regular unemployment compensa-
tion under the State law’ shall be deemed to refer instead 
to ‘emergency unemployment compensation under title IV 
of the Supplemental Appropriations Act, 2008’; 
‘‘(B) paragraph (3)(B) shall not apply; 
‘‘(C) clause (i) of paragraph (3)(C) shall be deemed 
to state as follows: 
‘‘ ‘(i) include any entrepreneurial training that the 
State or non-profit organizations may provide in 
coordination with programs of training offered by the 
Small Business Administration, which may include 
business counseling, mentorship for participants, 
access to small business development resources, and 
technical assistance; and’; 
‘‘(D) the reference to ‘5 percent’ in paragraph (4) shall 
be deemed to refer instead to ‘1 percent’; and 
‘‘(E) paragraph (5) shall not apply. 
‘‘(3) AVAILABILITY OF SELF-EMPLOYMENT ASSISTANCE ALLOW-
ANCES.—In the case of an individual who is eligible to receive 
emergency unemployment compensation payment under this 
title, such individual shall not receive self-employment assist-
ance allowances under this subsection unless the State agency 
has a reasonable expectation that such individual will be enti-
tled to at least 13 times the individual’s average weekly benefit 
amount of extended compensation and emergency unemploy-
ment compensation.
H. R. 3630—27 
‘‘(4) PARTICIPANT OPTION TO TERMINATE PARTICIPATION IN 
SELF-EMPLOYMENT ASSISTANCE PROGRAM.— 
‘‘(A) TERMINATION.—An individual who is participating 
in a self-employment assistance program established under 
this subsection may elect to discontinue participation in 
such program at any time. 
‘‘(B) 
CONTINUED
ELIGIBILITY
FOR
EMERGENCY 
UNEMPLOYMENT COMPENSATION.—For purposes of an indi-
vidual whose participation in the self-employment assist-
ance program established under this subsection is termi-
nated pursuant to paragraph (1)(C) or who has discontinued 
participation in such program, if the individual continues 
to satisfy the eligibility requirements for emergency 
unemployment compensation under this title, the indi-
vidual shall receive emergency unemployment compensa-
tion payments with respect to subsequent weeks of 
unemployment, to the extent that amounts remain in the 
account established for such individual under section 
4002(b) or to the extent that such individual commences 
receiving the amounts described in subsections (c), (d), 
or (e) of such section, respectively.’’. 
SEC. 2182. GRANTS FOR SELF-EMPLOYMENT ASSISTANCE PROGRAMS. 
(a) IN GENERAL.— 
(1) ESTABLISHMENT OR IMPROVED ADMINISTRATION.—Sub-
ject to the requirements established under subsection (b), the 
Secretary shall award grants to States for the purposes of— 
(A) improved administration of self-employment assist-
ance programs that have been established, prior to the 
date of the enactment of this Act, pursuant to section 
3306(t) of the Internal Revenue Code of 1986 (26 U.S.C. 
3306(t)), for individuals who are eligible to receive regular 
unemployment compensation; 
(B) development, implementation, and administration 
of self-employment assistance programs that are estab-
lished, subsequent to the date of the enactment of this 
Act, pursuant to section 3306(t) of the Internal Revenue 
Code of 1986, for individuals who are eligible to receive 
regular unemployment compensation; and 
(C) development, implementation, and administration 
of self-employment assistance programs that are estab-
lished pursuant to section 208 of the Federal-State 
Extended Unemployment Compensation Act of 1970 or sec-
tion 4001(j) of the Supplemental Appropriations Act, 2008, 
for individuals who are eligible to receive extended com-
pensation or emergency unemployment compensation. 
(2) PROMOTION AND ENROLLMENT.—Subject to the require-
ments established under subsection (b), the Secretary shall 
award additional grants to States that submit approved applica-
tions for a grant under paragraph (1) for such States to promote 
self-employment assistance programs and enroll unemployed 
individuals in such programs. 
(b) APPLICATION AND DISBURSAL.— 
(1) APPLICATION.—Any State seeking a grant under para-
graph (1) or (2) of subsection (a) shall submit an application 
to the Secretary at such time, in such manner, and containing 
such information as is determined appropriate by the Secretary.
H. R. 3630—28 
In no case shall the Secretary award a grant under this section 
with respect to an application that is submitted after December 
31, 2013. 
(2) NOTICE.—Not later than 30 days after receiving an 
application described in paragraph (1) from a State, the Sec-
retary shall notify the State agency as to whether a grant 
has been approved for such State for the purposes described 
in subsection (a). 
(3) CERTIFICATION.—If the Secretary determines that a 
State has met the requirements for a grant under subsection 
(a), the Secretary shall make a certification to that effect to 
the Secretary of the Treasury, as well as a certification as 
to the amount of the grant payment to be transferred to the 
State account in the Unemployment Trust Fund under section 
904 of the Social Security Act (42 U.S.C. 1104). The Secretary 
of the Treasury shall make the appropriate transfer to the 
State account not later than 7 days after receiving such certifi-
cation. 
(c) ALLOTMENT FACTORS.—For purposes of allotting the funds 
available under subsection (d) to States that have met the require-
ments for a grant under this section, the amount of the grant 
provided to each State shall be determined based upon the percent-
age of unemployed individuals in the State relative to the percent-
age of unemployed individuals in all States. 
(d) FUNDING.—There are appropriated, out of moneys in the 
Treasury not otherwise appropriated, $35,000,000 for the period 
of fiscal year 2012 through fiscal year 2013 for purposes of carrying 
out the grant program under this section, 
SEC. 2183. ASSISTANCE AND GUIDANCE IN IMPLEMENTING SELF- 
EMPLOYMENT ASSISTANCE PROGRAMS. 
(a) MODEL
LANGUAGE
AND
GUIDANCE.—For purposes of 
assisting States in establishing, improving, and administering self- 
employment assistance programs, the Secretary shall— 
(1) develop model language that may be used by States 
in enacting such programs, as well as periodically review and 
revise such model language; and 
(2) provide technical assistance and guidance in estab-
lishing, improving, and administering such programs. 
(b) REPORTING AND EVALUATION.— 
(1) REPORTING.—The Secretary shall establish reporting 
requirements for States that have established self-employment 
assistance programs, which shall include reporting on— 
(A) the total number of individuals who received 
unemployment compensation and— 
(i) were referred to a self-employment assistance 
program; 
(ii) participated in such program; and 
(iii) received an allowance under such program; 
(B) the total amount of allowances provided to individ-
uals participating in a self-employment assistance program; 
(C) the total income (as determined by survey or other 
appropriate method) for businesses that have been estab-
lished by individuals participating in a self-employment 
assistance program, as well as the total number of individ-
uals employed through such businesses; and
H. R. 3630—29 
(D) any additional information, as determined appro-
priate by the Secretary. 
(2) EVALUATION.—Not later than 5 years after the date 
of the enactment of this Act, the Secretary shall submit to 
Congress a report that evaluates the effectiveness of self- 
employment 
assistance 
programs 
established 
by 
States, 
including— 
(A) an analysis of the implementation and operation 
of self-employment assistance programs by States; 
(B) an evaluation of the economic outcomes for individ-
uals who participated in a self-employment assistance pro-
gram as compared to individuals who received unemploy-
ment compensation and did not participate in a self-employ-
ment assistance program, including a comparison as to 
employment status, income, and duration of receipt of 
unemployment compensation or self-employment assistance 
allowances; and 
(C) an evaluation of the state of the businesses started 
by individuals who participated in a self-employment 
assistance program, including information regarding— 
(i) the type of businesses established; 
(ii) the sustainability of the businesses; 
(iii) the total income collected by the businesses; 
(iv) the total number of individuals employed 
through such businesses; and 
(v) the estimated Federal and State tax revenue 
collected from such businesses and their employees. 
(c) FLEXIBILITY
AND ACCOUNTABILITY.—The model language, 
guidance, and reporting requirements developed by the Secretary 
under subsections (a) and (b) shall— 
(1) allow sufficient flexibility for States and participating 
individuals; and 
(2) ensure accountability and program integrity. 
(d) CONSULTATION.—For purposes of developing the model lan-
guage, guidance, and reporting requirements described under sub-
sections (a) and (b), the Secretary shall consult with employers, 
labor organizations, State agencies, and other relevant program 
experts. 
(e) ENTREPRENEURIAL TRAINING PROGRAMS.—The Secretary 
shall utilize resources available through the Department of Labor 
and coordinate with the Administrator of the Small Business 
Administration to ensure that adequate funding is reserved and 
made available for the provision of entrepreneurial training to 
individuals participating in self-employment assistance programs. 
(f) SELF-EMPLOYMENT ASSISTANCE PROGRAM.—For purposes of 
this section, the term ‘‘self-employment assistance program’’ means 
a program established pursuant to section 3306(t) of the Internal 
Revenue Code of 1986 (26 U.S.C. 3306(t)), section 208 of the Federal- 
State Extended Unemployment Compensation Act of 1970, or sec-
tion 4001(j) of the Supplemental Appropriations Act, 2008, for 
individuals who are eligible to receive regular unemployment com-
pensation, extended compensation, or emergency unemployment 
compensation. 
SEC. 2184. DEFINITIONS. 
In this subtitle:
H. R. 3630—30 
(1) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 
of Labor. 
(2) STATE; STATE AGENCY.—The terms ‘‘State’’ and ‘‘State 
agency’’ have the meanings given such terms under section 
205 of the Federal-State Extended Unemployment Compensa-
tion Act of 1970 (26 U.S.C. 3304 note). 
TITLE III—MEDICARE AND OTHER 
HEALTH PROVISIONS 
Subtitle A—Medicare Extensions 
SEC. 3001. EXTENSION OF MMA SECTION 508 RECLASSIFICATIONS. 
(a) IN GENERAL.—Section 106(a) of division B of the Tax Relief 
and Health Care Act of 2006 (42 U.S.C. 1395 note), as amended 
by section 117 of the Medicare, Medicaid, and SCHIP Extension 
Act of 2007 (Public Law 110–173), section 124 of the Medicare 
Improvements for Patients and Providers Act of 2008 (Public Law 
110–275), sections 3137(a) and 10317 of the Patient Protection 
and Affordable Care Act (Public Law 111–148), section 102(a) of 
the Medicare and Medicaid Extenders Act of 2010 (Public Law 
111–309), and section 302(a) of the Temporary Payroll Tax Cut 
Continuation Act of 2011 (Public Law 112–78), is amended by 
striking ‘‘November 30, 2011’’ and inserting ‘‘March 31, 2012’’. 
(b) SPECIAL RULE.— 
(1) IN GENERAL.—Subject to paragraph (2), for purposes 
of implementation of the amendment made by subsection (a), 
including for purposes of the implementation of paragraph (2) 
of section 117(a) of the Medicare, Medicaid, and SCHIP Exten-
sion Act of 2007 (Public Law 110–173), for the period beginning 
on December 1, 2011, and ending on March 31, 2012, the 
Secretary of Health and Human Services shall use the hospital 
wage index that was promulgated by the Secretary of Health 
and Human Services in the Federal Register on August 18, 
2011 (76 Fed. Reg. 51476), and any subsequent corrections. 
(2) EXCEPTION.—In determining the wage index applicable 
to hospitals that qualify for wage index reclassification, the 
Secretary shall, for the period described in paragraph (1), 
include the average hourly wage data of hospitals whose 
reclassification was extended pursuant to the amendment made 
by subsection (a) only if including such data results in a higher 
applicable reclassified wage index. Any revision to hospital 
wage indexes made as a result of this paragraph shall not 
be effected in a budget neutral manner. 
(c) TIMEFRAME FOR PAYMENTS.— 
(1) IN
GENERAL.—The Secretary shall make payments 
required under subsections (a) and (b) by not later than June 
30, 2012. 
(2) OCTOBER
2011
AND
NOVEMBER
2011
CONFORMING 
CHANGE.—Section 302(c) of the Temporary Payroll Tax Cut 
Continuation Act of 2011 (Public Law 112-78) is amended by 
striking ‘‘December 31, 2012’’ and inserting ‘‘June 30, 2012’’.
H. R. 3630—31 
SEC. 3002. EXTENSION OF OUTPATIENT HOLD HARMLESS PAYMENTS. 
(a) IN GENERAL.—Section 1833(t)(7)(D)(i) of the Social Security 
Act (42 U.S.C. 1395l(t)(7)(D)(i)), as amended by section 308 of 
the Temporary Payroll Tax Cut Continuation Act of 2011 (Public 
Law 112–78), is amended— 
(1) in subclause (II)— 
(A) in the first sentence, by striking ‘‘March 1, 2012’’ 
and inserting ‘‘January 1, 2013’’; and 
(B) in the second sentence, by striking ‘‘or the first 
two months of 2012’’ and inserting ‘‘or 2012’’; and 
(2) in subclause (III), in the first sentence, by striking 
‘‘March 1, 2012’’ and inserting ‘‘January 1, 2013’’. 
(b) REPORT.—Not later than July 1, 2012, the Secretary of 
Health and Human Services shall submit to the Committees on 
Ways and Means and Energy and Commerce of the House of Rep-
resentatives and the Committee on Finance of the Senate a report 
including recommendations for which types of hospitals should con-
tinue to receive hold harmless payments described in subclauses 
(II) and (III) of section 1833(t)(7)(D)(i) of the Social Security Act 
(42 U.S.C. 1395l(t)(7)(D)(i)) in order to maintain adequate bene-
ficiary access to outpatient services. In conducting such report, 
the Secretary should examine why some similarly situated hospitals 
do not receive such hold harmless payments and are able to rely 
only on the prospective payment system for hospital outpatient 
department services under section 1833(t) of the Social Security 
Act (42 U.S.C. 1395l(t)). 
SEC. 3003. PHYSICIAN PAYMENT UPDATE. 
(a) IN GENERAL.—Section 1848(d)(13) of the Social Security 
Act (42 U.S.C. 1395w–4(d)(13)), as added by section 301 of the 
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 
112–78), is amended— 
(1) in the heading, by striking ‘‘FIRST
TWO
MONTHS
OF 
2012’’ and inserting ‘‘2012’’; 
(2) in subparagraph (A), by striking ‘‘the period beginning 
on January 1, 2012, and ending on February 29, 2012’’ and 
inserting ‘‘2012’’; 
(3) in the heading of subparagraph (B), by striking 
‘‘REMAINING PORTION OF 2012’’ and inserting ‘‘2013’’; and 
(4) in subparagraph (B), by striking ‘‘for the period begin-
ning on March 1, 2012, and ending on December 31, 2012, 
and for 2013’’ and inserting ‘‘for 2013’’. 
(b) MANDATED STUDIES ON PHYSICIAN PAYMENT REFORM.— 
(1) STUDY
BY
SECRETARY
ON
OPTIONS
FOR
BUNDLED
OR 
EPISODE-BASED PAYMENT.— 
(A) IN GENERAL.—The Secretary of Health and Human 
Services shall conduct a study that examines options for 
bundled or episode-based payments, to cover physicians’ 
services currently paid under the physician fee schedule 
under section 1848 of the Social Security Act (42 U.S.C. 
1395w–4), for one or more prevalent chronic conditions 
(such as cancer, diabetes, and congestive heart failure) 
or episodes of care for one or more major procedures (such 
as medical device implantation). In conducting the study, 
the Secretary shall consult with medical professional soci-
eties and other relevant stakeholders. The study shall
H. R. 3630—32 
include an examination of related private payer payment 
initiatives. 
(B) REPORT.—Not later than January 1, 2013, the Sec-
retary shall submit to the Committees on Ways and Means 
and Energy and Commerce of the House of Representatives 
and the Committee on Finance of the Senate a report 
on the study conducted under this paragraph. The Sec-
retary shall include in the report recommendations on suit-
able alternative payment options for services paid under 
such fee schedule and on associated implementation 
requirements (such as timelines, operational issues, and 
interactions with other payment reform initiatives). 
(2) GAO STUDY OF PRIVATE PAYER INITIATIVES.— 
(A) IN
GENERAL.—The Comptroller General of the 
United States shall conduct a study that examines initia-
tives of private entities offering or administering health 
insurance coverage, group health plans, or other private 
health benefit plans to base or adjust physician payment 
rates under such coverage or plans for performance on 
quality and efficiency, as well as demonstration of care 
delivery improvement activities (such as adherence to evi-
dence-based guidelines and patient-shared decision making 
programs). In conducting such study, the Comptroller Gen-
eral shall consult, to the extent appropriate, with medical 
professional societies and other relevant stakeholders. 
(B) REPORT.—Not later than January 1, 2013, the 
Comptroller General shall submit to the Committees on 
Ways and Means and Energy and Commerce of the House 
of Representatives and the Committee on Finance of the 
Senate a report on the study conducted under this para-
graph. Such report shall include an assessment of the 
applicability of the payer initiatives described in subpara-
graph (A) to the Medicare program and recommendations 
on modifications to existing Medicare performance-based 
initiatives. 
SEC. 3004. WORK GEOGRAPHIC ADJUSTMENT. 
(a) IN GENERAL.—Section 1848(e)(1)(E) of the Social Security 
Act (42 U.S.C. 1395w–4(e)(1)(E)), as amended by section 303 of 
the Temporary Payroll Tax Cut Continuation Act of 2011 (Public 
Law 112–78), is amended by striking ‘‘before March 1, 2012’’ and 
inserting ‘‘before January 1, 2013’’. 
(b) REPORT.—Not later than June 15, 2013, the Medicare Pay-
ment Advisory Commission shall submit to the Committees on 
Ways and Means and Energy and Commerce of the House of Rep-
resentatives and the Committee on Finance of the Senate a report 
that assesses whether any adjustment under section 1848 of the 
Social Security Act (42 U.S.C. 1395w–4) to distinguish the difference 
in work effort by geographic area is appropriate and, if so, what 
that level should be and where it should be applied. The report 
shall also assess the impact of the work geographic adjustment 
under such section, including the extent to which the floor on 
such adjustment impacts access to care. 
SEC. 3005. PAYMENT FOR OUTPATIENT THERAPY SERVICES. 
(a) APPLICATION
OF
ADDITIONAL
REQUIREMENTS.—Section 
1833(g)(5) of the Social Security Act (42 U.S.C. 1395l(g)(5)), as
H. R. 3630—33 
amended by section 304 of the Temporary Payroll Tax Cut Continu-
ation Act of 2011 (Public Law 112–78), is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(5)’’; 
(2) in the first sentence, by striking ‘‘February 29, 2012’’ 
and inserting ‘‘December 31, 2012’’; 
(3) in the first sentence, by inserting ‘‘and if the require-
ment of subparagraph (B) is met’’ after ‘‘medically necessary’’; 
(4) in the second sentence, by inserting ‘‘made in accordance 
with such requirement’’ after ‘‘receipt of the request’’; and 
(5) by adding at the end the following new subparagraphs: 
‘‘(B) In the case of outpatient therapy services for which an 
exception is requested under the first sentence of subparagraph 
(A), the claim for such services shall contain an appropriate modifier 
(such as the KX modifier used as of the date of the enactment 
of this subparagraph) indicating that such services are medically 
necessary as justified by appropriate documentation in the medical 
record involved. 
‘‘(C)(i) In applying this paragraph with respect to a request 
for an exception with respect to expenses that would be incurred 
for outpatient therapy services (including services described in sub-
section (a)(8)(B)) that would exceed the threshold described in clause 
(ii) for a year, the request for such an exception, for services 
furnished on or after October 1, 2012, shall be subject to a manual 
medical review process that is similar to the manual medical review 
process used for certain exceptions under this paragraph in 2006. 
‘‘(ii) The threshold under this clause for a year is $3,700. 
Such threshold shall be applied separately— 
‘‘(I) for physical therapy services and speech-language 
pathology services; and 
‘‘(II) for occupational therapy services.’’. 
(b) TEMPORARY APPLICATION OF THERAPY CAP TO THERAPY FUR-
NISHED
AS PART
OF HOSPITAL OUTPATIENT SERVICES.—Section 
1833(g) of such Act (42 U.S.C. 1395l(g)) is amended— 
(1) in each of paragraphs (1) and (3), by striking ‘‘but 
not described in section 1833(a)(8)(B)’’ and inserting ‘‘but 
(except as provided in paragraph (6)) not described in subsection 
(a)(8)(B)’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(6) In applying paragraphs (1) and (3) to services furnished 
during the period beginning not later than October 1, 2012, and 
ending on December 31, 2012, the exclusion of services described 
in subsection (a)(8)(B) from the uniform dollar limitation specified 
in paragraph (2) shall not apply to such services furnished during 
2012.’’. 
(c) REQUIREMENT FOR INCLUSION ON CLAIMS OF NPI OF PHYSI-
CIAN WHO REVIEWS THERAPY PLAN.—Section 1842(t) of such Act 
(42 U.S.C. 1395u(t)) is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(t)’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(2) Each request for payment, or bill submitted, for therapy 
services described in paragraph (1) or (3) of section 1833(g), 
including services described in section 1833(a)(8)(B), furnished on 
or after October 1, 2012, for which payment may be made under 
this part shall include the national provider identifier of the physi-
cian who periodically reviews the plan for such services under 
section 1861(p)(2).’’.
H. R. 3630—39 
is less than the Federal medical assistance percentage 
received by the State during the preceding fiscal year.’’; 
(2) in paragraph (2)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘Federal medical assistance percent-
age determined for the State for the fiscal year’’ and 
all that follows through ‘‘Act,’’ and inserting ‘‘State’s 
regular FMAP for the fiscal year’’; and 
(ii) by striking ‘‘subsection (y)’’ and inserting ‘‘sub-
sections (y) and (z)’’; and 
(B) in subparagraph (B), by striking ‘‘Federal medical 
assistance percentage determined for the State for the fiscal 
year’’ and all that follows through ‘‘Act,’’ and inserting 
‘‘State’s regular FMAP for the fiscal year’’; 
(3) by redesignating paragraph (3) as paragraph (4); and 
(4) by inserting after paragraph (2) the following: 
‘‘(3) In this subsection, the term ‘regular FMAP’ means, for 
each fiscal year for which this subsection applies to a State, the 
Federal medical assistance percentage that would otherwise apply 
to the State for the fiscal year, as determined under subsection 
(b) and without regard to this subsection, subsections (y) and (z), 
and section 10202 of the Patient Protection and Affordable Care 
Act.’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on October 1, 2013. 
SEC. 3205. PREVENTION AND PUBLIC HEALTH FUND. 
Section 4002(b) of the Patient Protection and Affordable Care 
Act (42 U.S.C. 300u–11(b)) is amended by striking paragraphs 
(2) through (6) and inserting the following: 
‘‘(2) for each of fiscal years 2012 through 2017, 
$1,000,000,000; 
‘‘(3) for each of fiscal years 2018 and 2019, $1,250,000,000; 
‘‘(4) for each of fiscal years 2020 and 2021, $1,500,000,000; 
and 
‘‘(5) for fiscal year 2022, and each fiscal year thereafter, 
$2,000,000,000.’’. 
TITLE IV—TANF EXTENSION 
SEC. 4001. SHORT TITLE. 
This title may be cited as the ‘‘Welfare Integrity and Data 
Improvement Act’’. 
SEC. 4002. EXTENSION OF PROGRAM. 
(a) FAMILY ASSISTANCE GRANTS.—Section 403(a)(1) of the Social 
Security Act (42 U.S.C. 603(a)(1)) is amended— 
(1) in subparagraph (A), by striking ‘‘each of fiscal years 
1996’’ and all that follows through ‘‘2003’’ and inserting ‘‘fiscal 
year 2012’’; 
(2) in subparagraph (B)— 
(A) by inserting ‘‘(as in effect just before the enactment 
of the Welfare Integrity and Data Improvement Act)’’ after 
‘‘this paragraph’’ the first place it appears; and 
(B) by inserting ‘‘(as so in effect)’’ after ‘‘this paragraph’’ 
the second place it appears; and
H. R. 3630—45 
(A) Section 8422(d)(2) of title 5, United States Code, 
is amended by striking ‘‘section 8415(l)’’ and inserting ‘‘sec-
tion 8415(m)’’. 
(B) Section 8452(d)(1) of title 5, United States Code, 
is amended by striking ‘‘subsection (g)’’ and inserting ‘‘sub-
section (h)’’. 
(C) Section 8468(b)(1)(A) of title 5, United States Code, 
is amended by striking ‘‘section 8415(a) through (h)’’ and 
inserting ‘‘section 8415(a) through (i)’’. 
(D) Section 805(a)(2)(B) of the Foreign Service Act of 
1980 (22 U.S.C. 4045(a)(2)(B)) is amended by striking ‘‘sec-
tion 8415(d)’’ and inserting ‘‘section 8415(e)’’. 
(E) Section 806(a) of the Foreign Service Act of 1980 
(22 U.S.C. 4046(a)) is amended by striking ‘‘section 8415(d)’’ 
each place it appears and inserting ‘‘section 8415(e)’’. 
(F) Section 855(b) of the Foreign Service Act of 1980 
(22 U.S.C. 4071d(b)) is amended— 
(i) in paragraph (2)(A), by striking ‘‘section 
8415(d)(1)’’ and inserting ‘‘section 8415(e)(1)’’; and 
(ii) in paragraph (5), by striking ‘‘section 8415(f)(1)’’ 
and inserting ‘‘section 8415(g)(1)’’. 
(G) Section 303(b)(1) of the Central Intelligence Agency 
Retirement Act (50 U.S.C. 2153(b)(1)) is amended by 
striking ‘‘section 8415(d)’’ and inserting ‘‘section 8415(e)’’. 
SEC. 5002. FOREIGN SERVICE PENSION SYSTEM. 
(a) DEFINITION.—Section 852 of the Foreign Service Act of 
1980 (22 U.S.C. 4071a) is amended— 
(1) by redesignating paragraphs (7), (8), and (9) as para-
graphs (8), (9), and (10), respectively; and 
(2) by inserting after paragraph (6) the following: 
‘‘(7) the term ‘revised annuity participant’ means any indi-
vidual who— 
‘‘(A) on December 31, 2012— 
‘‘(i) is not a participant; 
‘‘(ii) is not performing service which is creditable 
service under section 854; and 
‘‘(iii) has less than 5 years creditable service under 
section 854; and 
‘‘(B) after December 31, 2012, becomes a participant 
performing service which is creditable service under section 
854;’’. 
(b) DEDUCTIONS
AND
WITHHOLDINGS
FROM
PAY.—Section 
856(a)(2) of the Foreign Service Act of 1980 (22 U.S.C. 4071e(a)(2)) 
is amended— 
(1) by striking ‘‘The applicable percentage under this sub-
section’’ and inserting ‘‘(A) The applicable percentage for a 
participant other than a revised annuity participant’’; and 
(2) by adding at the end the following: 
‘‘(B) The applicable percentage for a revised annuity participant 
shall be as follows: 
‘‘9.85 .....................................
After December 31, 2012’’. 
SEC. 5003. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DIS-
ABILITY SYSTEM. 
Section 211(a) of the Central Intelligence Agency Retirement 
Act (50 U.S.C. 2021(a)) is amended—
H. R. 3630—46 
(1) by redesignating paragraph (3) as paragraph (4); and 
(2) by striking paragraphs (1) and (2) and inserting the 
following: 
‘‘(1) DEFINITION.—In this subsection, the term ‘revised 
annuity participant’ means an individual who— 
‘‘(A) on December 31, 2012— 
‘‘(i) is not a participant; 
‘‘(ii) is not performing qualifying service; and 
‘‘(iii) has less than 5 years of qualifying service; 
and 
‘‘(B) after December 31, 2012, becomes a participant 
performing qualifying service. 
‘‘(2) CONTRIBUTIONS.— 
‘‘(A) IN GENERAL.—Except as provided in subsection 
(d), 7 percent of the basic pay received by a participant 
other than a revised annuity participant for any pay period 
shall be deducted and withheld from the pay of that partici-
pant and contributed to the fund. 
‘‘(B) REVISED ANNUITY PARTICIPANTS.—Except as pro-
vided in subsection (d), 9.3 percent of the basic pay received 
by a revised annuity participant for any pay period shall 
be deducted and withheld from the pay of that revised 
annuity participant and contributed to the fund. 
‘‘(3) AGENCY CONTRIBUTIONS.— 
‘‘(A) IN GENERAL.—An amount equal to 7 percent of 
the basic pay received by a participant other than a revised 
annuity participant shall be contributed to the fund for 
a pay period for the participant from the appropriation 
or fund which is used for payment of the participant’s 
basic pay. 
‘‘(B) REVISED
ANNUITY
PARTICIPANTS.—An amount 
equal to 4.7 percent of the basic pay received by a revised 
annuity participant shall be contributed to the fund for 
a pay period for the revised annuity participant from the 
appropriation or fund which is used for payment of the 
revised annuity participant’s basic pay.’’. 
TITLE 
VI—PUBLIC 
SAFETY 
COMMU-
NICATIONS AND ELECTROMAGNETIC 
SPECTRUM AUCTIONS 
SEC. 6001. DEFINITIONS. 
In this title: 
(1) 700 MHZ
BAND.—The term ‘‘700 MHz band’’ means 
the portion of the electromagnetic spectrum between the fre-
quencies from 698 megahertz to 806 megahertz. 
(2) 700 MHZ
D
BLOCK
SPECTRUM.—The term ‘‘700 MHz 
D block spectrum’’ means the portion of the electromagnetic 
spectrum between the frequencies from 758 megahertz to 763 
megahertz and between the frequencies from 788 megahertz 
to 793 megahertz. 
(3) APPROPRIATE
COMMITTEES
OF
CONGRESS.—Except as 
otherwise specifically provided, the term ‘‘appropriate commit-
tees of Congress’’ means—
H. R. 3630—65 
(A) participate in the deployment of the nationwide, 
interoperable broadband network as proposed by the First 
Responder Network Authority; or 
(B) conduct its own deployment of a radio access net-
work in such State. 
(3) PROCESS.— 
(A) IN GENERAL.—Upon making a decision to opt-out 
under paragraph (2)(B), the Governor shall notify the First 
Responder Network Authority, the NTIA, and the Commis-
sion of such decision. 
(B) STATE REQUEST FOR PROPOSALS.—Not later than 
180 days after the date on which a Governor provides 
notice under subparagraph (A), the Governor shall develop 
and complete requests for proposals for the construction, 
maintenance, and operation of the radio access network 
within the State. 
(C) SUBMISSION AND APPROVAL OF ALTERNATIVE PLAN.— 
(i) IN GENERAL.—The State shall submit an alter-
native plan for the construction, maintenance, oper-
ation, and improvements of the radio access network 
within the State to the Commission, and such plan 
shall demonstrate— 
(I) that the State will be in compliance with 
the minimum technical interoperability require-
ments developed under section 6203; and 
(II) interoperability with the nationwide public 
safety broadband network. 
(ii) COMMISSION APPROVAL OR DISAPPROVAL.—Upon 
submission of a State plan under clause (i), the 
Commission shall either approve or disapprove the 
plan. 
(iii) APPROVAL.—If the Commission approves a 
plan under this subparagraph, the State— 
(I) may apply to the NTIA for a grant to 
construct the radio access network within the State 
that includes the showing described in subpara-
graph (D); and 
(II) shall apply to the NTIA to lease spectrum 
capacity from the First Responder Network 
Authority. 
(iv) DISAPPROVAL.—If the Commission disapproves 
a plan under this subparagraph, the construction, 
maintenance, operation, and improvements of the net-
work within the State shall proceed in accordance with 
the plan proposed by the First Responder Network 
Authority. 
(D) FUNDING REQUIREMENTS.—In order to obtain grant 
funds and spectrum capacity leasing rights under subpara-
graph (C)(iii), a State shall demonstrate— 
(i) that the State has— 
(I) the technical capabilities to operate, and 
the funding to support, the State radio access net-
work; 
(II) has the ability to maintain ongoing inter-
operability with the nationwide public safety 
broadband network; and