To extend the Generalized System of Preferences, and for other purposes.
PL 112-40 (H.R.2832), enacted 10/21/2011

125 STAT. 401 
PUBLIC LAW 112–40—OCT. 21, 2011 
Public Law 112–40 
112th Congress 
An Act 
To extend the Generalized System of Preferences, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES. 
(a) EXTENSION.—Section 505 of the Trade Act of 1974 (19 U.S.C. 
2465) is amended by striking ‘‘December 31, 2010’’ and inserting 
‘‘July 31, 2013’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendment made by subsection (a) 
shall apply to articles entered on or after the 15th day after 
the date of the enactment of this Act. 
(2) RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS 
AND RELIQUIDATIONS.— 
(A) IN GENERAL.—Notwithstanding section 514 of the 
Tariff Act of 1930 (19 U.S.C. 1514) or any other provision 
of law and subject to subparagraph (B), any entry of an 
article to which duty-free treatment or other preferential 
treatment under title V of the Trade Act of 1974 would 
have applied if the entry had been made on December 
31, 2010, that was made— 
(i) after December 31, 2010; and 
(ii) before the 15th day after the date of the enact-
ment of this Act, 
shall be liquidated or reliquidated as though such entry 
occurred on the 15th day after the date of the enactment 
of this Act. 
(B) REQUESTS.—A liquidation or reliquidation may be 
made under subparagraph (A) with respect to an entry 
only if a request therefor is filed with U.S. Customs and 
Border Protection not later than 180 days after the date 
of the enactment of this Act that contains sufficient 
information to enable U.S. Customs and Border Protec-
tion— 
(i) to locate the entry; or 
(ii) to reconstruct the entry if it cannot be located. 
(C) PAYMENT OF AMOUNTS OWED.—Any amounts owed 
by the United States pursuant to the liquidation or 
reliquidation of an entry of an article under subparagraph 
(A) shall be paid, without interest, not later than 90 days 
after the date of the liquidation or reliquidation (as the 
case may be). 
Deadlines. 
19 USC 2465 
note. 
Oct. 21, 2011 
[H.R. 2832] 
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125 STAT. 402 
PUBLIC LAW 112–40—OCT. 21, 2011 
(3) DEFINITION.—As used in this subsection, the terms 
‘‘enter’’ and ‘‘entry’’ include a withdrawal from warehouse for 
consumption. 
SEC. 2. MERCHANDISE PROCESSING FEES. 
For the period beginning on October 1, 2011, and ending on 
June 30, 2014, section 13031(a)(9) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) shall be 
applied and administered— 
(1) in subparagraph (A), by substituting ‘‘0.3464’’ for ‘‘0.21’’; 
and 
(2) in subparagraph (B)(i), by substituting ‘‘0.3464’’ for 
‘‘0.21’’. 
TITLE II—TRADE ADJUSTMENT 
ASSISTANCE 
SEC. 200. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This title may be cited as the ‘‘Trade Adjust-
ment Assistance Extension Act of 2011’’. 
(b) TABLE OF CONTENTS.—The table of contents for this title 
is as follows: 
TITLE II—TRADE ADJUSTMENT ASSISTANCE 
Sec. 200. Short title; table of contents. 
Subtitle A—Extension of Trade Adjustment Assistance 
PART I—APPLICATION OF PROVISIONS RELATING TO TRADE ADJUSTMENT ASSISTANCE 
Sec. 201. Application of provisions relating to trade adjustment assistance. 
PART II—TRADE ADJUSTMENT ASSISTANCE FOR WORKERS 
Sec. 211. Group eligibility requirements. 
Sec. 212. Reductions in waivers from training. 
Sec. 213. Limitations on trade readjustment allowances. 
Sec. 214. Funding of training, employment and case management services, and job 
search and relocation allowances. 
Sec. 215. Reemployment trade adjustment assistance. 
Sec. 216. Program accountability. 
Sec. 217. Extension. 
PART III—OTHER ADJUSTMENT ASSISTANCE 
Sec. 221. Trade adjustment assistance for firms. 
Sec. 222. Trade adjustment assistance for communities. 
Sec. 223. Trade adjustment assistance for farmers. 
PART IV—GENERAL PROVISIONS 
Sec. 231. Applicability of trade adjustment assistance provisions. 
Sec. 232. Termination provisions. 
Sec. 233. Sunset provisions. 
Subtitle B—Health Coverage Improvement 
Sec. 241. Health care tax credit. 
Sec. 242. TAA pre-certification period rule for purposes of determining whether 
there is a 63-day lapse in creditable coverage. 
Sec. 243. Extension of COBRA benefits for certain TAA-eligible individuals and 
PBGC recipients. 
Subtitle C—Offsets 
PART I—UNEMPLOYMENT COMPENSATION PROGRAM INTEGRITY 
Sec. 251. Mandatory penalty assessment on fraud claims. 
Sec. 252. Prohibition on noncharging due to employer fault. 
19 USC 2101 
note. 
Trade 
Adjustment 
Assistance 
Extension Act 
of 2011. 
Time period. 
Applicability. 
19 USC 58c note. 
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125 STAT. 403 
PUBLIC LAW 112–40—OCT. 21, 2011 
Sec. 253. Reporting of rehired employees to the directory of new hires. 
PART II—ADDITIONAL OFFSETS 
Sec. 261. Improvements to contracts with Medicare quality improvement organiza-
tions (QIOs) in order to improve the quality of care furnished to Medi-
care beneficiaries. 
Sec. 262. Rates for merchandise processing fees. 
Sec. 263. Time for remitting certain merchandise processing fees. 
Subtitle A—Extension of Trade Adjustment 
Assistance 
PART I—APPLICATION OF PROVISIONS RELAT-
ING TO TRADE ADJUSTMENT ASSISTANCE 
SEC. 201. APPLICATION OF PROVISIONS RELATING TO TRADE ADJUST-
MENT ASSISTANCE. 
(a) REPEAL
OF SNAPBACK.—Section 1893 of the Trade and 
Globalization Adjustment Assistance Act of 2009 (Public Law 111– 
5; 123 Stat. 422) is repealed. 
(b) APPLICABILITY OF CERTAIN PROVISIONS.—Except as other-
wise provided in this subtitle, the provisions of chapters 2 through 
6 of title II of the Trade Act of 1974, as in effect on February 
12, 2011, and as amended by this subtitle, shall— 
(1) take effect on the date of the enactment of this Act; 
and 
(2) apply to petitions for certification filed under chapter 
2, 3, or 6 of title II of the Trade Act of 1974 on or after 
such date of enactment. 
(c) REFERENCES.—Except as otherwise provided in this subtitle, 
whenever in this subtitle an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a provision of chapters 
2 through 6 of title II of the Trade Act of 1974, the reference 
shall be considered to be made to a provision of any such chapter, 
as in effect on February 12, 2011. 
PART II—TRADE ADJUSTMENT ASSISTANCE 
FOR WORKERS 
SEC. 211. GROUP ELIGIBILITY REQUIREMENTS. 
(a) IN GENERAL.—Section 222 of the Trade Act of 1974 (19 
U.S.C. 2272) is amended— 
(1) by striking subsection (b); 
(2) by redesignating subsections (c) through (f) as sub-
sections (b) through (e), respectively; 
(3) in paragraph (2) of subsection (b), as redesignated, 
by striking ‘‘(d)’’ and inserting ‘‘(c)’’; 
(4) in subsection (c), as redesignated, by striking paragraph 
(5); and 
(5) in paragraph (2) of subsection (d), as redesignated, 
by striking ‘‘, (b), or (c)’’ and inserting ‘‘or (b)’’. 
(b) CONFORMING AMENDMENTS.—Section 247 of the Trade Act 
of 1974 (19 U.S.C. 2319) is amended— 
(1) in paragraph (3)— 
(A) in the matter preceding subparagraph (A), by 
striking ‘‘Subject to section 222(d)(5), the term’’ and 
inserting ‘‘The term’’; and 
Effective date. 
19 USC 2271 and 
note prec., 
2272–2275, 
2291–2298, 2311, 
2315–2323, 2341, 
2343–2352, 
2354–2356, 
2371–2374, 2393, 
2395, 2397a, 
2401–2401b, 
2401e–2401g. 
19 USC 2271 and 
note prec., 
2272–2275, 
2291–2298, 2311, 
2315–2323, 2341, 
2343–2352, 
2354–2356, 
2371–2374, 2393, 
2395, 2397a, 
2401–2401b, 
2401e–2401g. 
19 USC 2271 
note prec. 
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125 STAT. 404 
PUBLIC LAW 112–40—OCT. 21, 2011 
(B) in subparagraph (A), by striking ‘‘, service sector 
firm, or public agency’’ and inserting ‘‘or service sector 
firm’’; 
(2) by striking paragraph (7); and 
(3) by redesignating paragraphs (8) through (19) as para-
graphs (7) through (18), respectively. 
SEC. 212. REDUCTIONS IN WAIVERS FROM TRAINING. 
(a) IN GENERAL.—Section 231(c) of the Trade Act of 1974 (19 
U.S.C. 2291(c)) is amended— 
(1) in paragraph (1)— 
(A) by striking subparagraphs (A), (B), and (C); and 
(B) by redesignating subparagraphs (D), (E), and (F) 
as subparagraphs (A), (B), and (C), respectively; and 
(2) in paragraph (3)(B), by striking ‘‘(D), (E), or (F)’’ and 
inserting ‘‘or (C)’’. 
(b) GOOD CAUSE EXCEPTION.—Section 234(b) of the Trade Act 
of 1974 (19 U.S.C. 2294(b)) is amended to read as follows: 
‘‘(b) SPECIAL RULE ON GOOD CAUSE FOR WAIVER OF TIME LIMITS 
OR LATE FILING OF CLAIMS.—The Secretary shall establish proce-
dures and criteria that allow for a waiver for good cause of the 
time limitations with respect to an application for a trade readjust-
ment allowance or enrollment in training under this chapter.’’. 
SEC. 213. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES. 
Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is 
amended— 
(1) in subsection (a)— 
(A) in paragraph (2), in the matter preceding subpara-
graph (A), by striking ‘‘(or’’ and all that follows through 
‘‘period)’’; and 
(B) in paragraph (3)— 
(i) in the matter preceding subparagraph (A), by 
striking ‘‘78’’ and inserting ‘‘65’’; and 
(ii) by striking ‘‘91-week period’’ each place it 
appears and inserting ‘‘78-week period’’; and 
(2) by amending subsection (f) to read as follows: 
‘‘(f) PAYMENT OF TRADE READJUSTMENT ALLOWANCES TO COM-
PLETE TRAINING.—Notwithstanding any other provision of this sec-
tion, in order to assist an adversely affected worker to complete 
training approved for the worker under section 236 that leads 
to the completion of a degree or industry-recognized credential, 
payments may be made as trade readjustment allowances for not 
more than 13 weeks within such period of eligibility as the Secretary 
may prescribe to account for a break in training or for justifiable 
cause that follows the last week for which the worker is otherwise 
entitled to a trade readjustment allowance under this chapter if— 
‘‘(1) payment of the trade readjustment allowance for not 
more than 13 weeks is necessary for the worker to complete 
the training; 
‘‘(2) the worker participates in training in each such week; 
and 
‘‘(3) the worker— 
‘‘(A) has substantially met the performance bench-
marks established as part of the training approved for 
the worker; 
‘‘(B) is expected to continue to make progress toward 
the completion of the training; and 
Time period. 
Procedures. 
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125 STAT. 405 
PUBLIC LAW 112–40—OCT. 21, 2011 
‘‘(C) will complete the training during that period of 
eligibility.’’. 
SEC. 214. FUNDING OF TRAINING, EMPLOYMENT AND CASE MANAGE-
MENT SERVICES, AND JOB SEARCH AND RELOCATION 
ALLOWANCES. 
(a) IN GENERAL.—Section 236(a)(2) of the Trade Act of 1974 
(19 U.S.C. 2296(a)(2)) is amended— 
(1) by inserting ‘‘and sections 235, 237, and 238’’ after 
‘‘to carry out this section’’ each place it appears; 
(2) in subparagraph (A)— 
(A) in the matter preceding clause (i), by striking ‘‘of 
payments that may be made under paragraph (1)’’ and 
inserting ‘‘of funds available to carry out this section and 
sections 235, 237, and 238’’; and 
(B) by striking clauses (i) and (ii) and inserting the 
following: 
‘‘(i) $575,000,000 for each of fiscal years 2012 and 
2013; and 
‘‘(ii) $143,750,000 for the 3-month period beginning 
on October 1, 2013, and ending on December 31, 2013.’’; 
(3) in subparagraph (C)(ii)(V), by striking ‘‘relating to the 
provision of training under this section’’ and inserting ‘‘to carry 
out this section and sections 235, 237, and 238’’; and 
(4) in subparagraph (E), by striking ‘‘to pay the costs of 
training approved under this section’’ and inserting ‘‘to carry 
out this section and sections 235, 237, and 238’’. 
(b) LIMITATIONS ON ADMINISTRATIVE EXPENSES AND EMPLOY-
MENT AND CASE MANAGEMENT SERVICES.— 
(1) IN GENERAL.—Section 235A of the Trade Act of 1974 
(19 U.S.C. 2295a) is amended— 
(A) in the section heading, by striking ‘‘FUNDING FOR’’ 
and inserting ‘‘LIMITATIONS ON’’; and 
(B) by striking subsections (a) and (b) and inserting 
the following: 
‘‘Of the funds made available to a State to carry out sections 
235 through 238 for a fiscal year, the State shall use— 
‘‘(1) not more than 10 percent for the administration of 
the trade adjustment assistance for workers program under 
this chapter, including for— 
‘‘(A) processing waivers of training requirements under 
section 231; 
‘‘(B) collecting, validating, and reporting data required 
under this chapter; and 
‘‘(C) providing reemployment trade adjustment assist-
ance under section 246; and 
‘‘(2) not less than 5 percent for employment and case 
management services under section 235.’’. 
(2) CLERICAL AMENDMENT.—The table of contents for the 
Trade Act of 1974 is amended by striking the item relating 
to section 235A and inserting the following: 
‘‘Sec. 235A. Limitations on administrative expenses and employment and case man-
agement services.’’. 
(c) REALLOTMENT OF FUNDS.—Section 245 of the Trade Act 
of 1974 (19 U.S.C. 2317) is amended by adding at the end the 
following: 
‘‘(c) REALLOTMENT OF FUNDS.— 
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125 STAT. 406 
PUBLIC LAW 112–40—OCT. 21, 2011 
‘‘(1) IN GENERAL.—The Secretary may— 
‘‘(A) reallot funds that were allotted to any State to 
carry out sections 235 through 238 and that remain unobli-
gated by the State during the second or third fiscal year 
after the fiscal year in which the funds were provided 
to the State; and 
‘‘(B) provide such realloted funds to States to carry 
out sections 235 through 238 in accordance with procedures 
established by the Secretary. 
‘‘(2) REQUESTS
BY
STATES.—In establishing procedures 
under paragraph (1)(B), the Secretary shall include procedures 
that provide for the distribution of realloted funds under that 
paragraph pursuant to requests submitted by States in need 
of such funds. 
‘‘(3) AVAILABILITY OF AMOUNTS.—The reallotment of funds 
under paragraph (1) shall not extend the period for which 
such funds are available for expenditure.’’. 
(d) JOB SEARCH ALLOWANCES.—Section 237 of the Trade Act 
of 1974 (19 U.S.C. 2297) is amended— 
(1) in subsection (a)(1)— 
(A) by striking ‘‘An adversely affected worker’’ and 
inserting ‘‘Each State may use funds made available to 
the State to carry out sections 235 through 238 to allow 
an adversely affected worker’’; and 
(B) by striking ‘‘may’’ and inserting ‘‘to’’; 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) by striking ‘‘An’’ and inserting ‘‘Any’’; and 
(ii) by striking ‘‘all necessary job search expenses’’ 
and inserting ‘‘not more than 90 percent of the nec-
essary job search expenses of the worker’’; and 
(B) in paragraph (2), by striking ‘‘$1,500’’ and inserting 
‘‘$1,250’’; and 
(3) in subsection (c), by striking ‘‘the Secretary shall’’ and 
inserting ‘‘a State may’’. 
(e) RELOCATION ALLOWANCES.—Section 238 of the Trade Act 
of 1974 (19 U.S.C. 2298) is amended— 
(1) in subsection (a)(1)— 
(A) by striking ‘‘Any adversely affected worker’’ and 
inserting ‘‘Each State may use funds made available to 
the State to carry out sections 235 through 238 to allow 
an adversely affected worker’’; and 
(B) by striking ‘‘may file’’ and inserting ‘‘to file’’; and 
(2) in subsection (b)— 
(A) in the matter preceding paragraph (1)— 
(i) by striking ‘‘The’’ and inserting ‘‘Any’’; and 
(ii) by striking ‘‘includes’’ and inserting ‘‘shall 
include’’; 
(B) in paragraph (1), by striking ‘‘all’’ and inserting 
‘‘not more than 90 percent of the’’; and 
(C) in paragraph (2), by striking ‘‘$1,500’’ and inserting 
‘‘$1,250’’. 
(f) CONFORMING AMENDMENTS.—Section 236 of the Trade Act 
of 1974 (19 U.S.C. 2296) is amended— 
(1) in subsection (b), in the first sentence, by striking 
‘‘approppriate’’ and inserting ‘‘appropriate’’; and 
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125 STAT. 407 
PUBLIC LAW 112–40—OCT. 21, 2011 
(2) by striking subsection (g) and redesignating subsection 
(h) as subsection (g). 
SEC. 215. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE. 
(a) IN GENERAL.—Section 246(a) of the Trade Act of 1974 (19 
U.S.C. 2318(a)) is amended— 
(1) in paragraph (3)(B)(ii), by striking ‘‘$55,000’’ and 
inserting ‘‘$50,000’’; and 
(2) in paragraph (5)— 
(A) in subparagraph (A)(i), by striking ‘‘$12,000’’ and 
inserting ‘‘$10,000’’; and 
(B) in subparagraph (B)(i), by striking ‘‘$12,000’’ and 
inserting ‘‘$10,000’’. 
(b) EXTENSION.—Section 246(b)(1) of the Trade Act of 1974 
(19 U.S.C. 2318(b)(1)) is amended by striking ‘‘February 12, 2011’’ 
and inserting ‘‘December 31, 2013’’. 
SEC. 216. PROGRAM ACCOUNTABILITY. 
(a) CORE INDICATORS OF PERFORMANCE.— 
(1) IN GENERAL.—Section 239(j)(2)(A) of the Trade Act of 
1974 (19 U.S.C. 2311(j)(2)(A)) is amended to read as follows: 
‘‘(A) IN GENERAL.—The core indicators of performance 
described in this paragraph are— 
‘‘(i) the percentage of workers receiving benefits 
under this chapter who are employed during the first 
or second calendar quarter following the calendar 
quarter in which the workers cease receiving such 
benefits; 
‘‘(ii) the percentage of such workers who are 
employed during the 2 calendar quarters following the 
earliest calendar quarter during which the worker was 
employed as described in clause (i); 
‘‘(iii) the average earnings of such workers who 
are employed during the 2 calendar quarters described 
in clause (ii); and 
‘‘(iv) the percentage of such workers who obtain 
a recognized postsecondary credential, including an 
industry-recognized credential, or a secondary school 
diploma or its recognized equivalent if combined with 
employment under clause (i), while receiving benefits 
under this chapter or during the 1-year period after 
such workers cease receiving such benefits.’’. 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) shall— 
(A) take effect on October 1, 2011; and 
(B) apply with respect to agreements under section 
239 of the Trade Act of 1974 (19 U.S.C. 2311) entered 
into before, on, or after October 1, 2011. 
(b) COLLECTION AND PUBLICATION OF DATA.— 
(1) IN GENERAL.—Section 249B(b) of the Trade Act of 1974 
(19 U.S.C. 2323(b)) is amended— 
(A) in paragraph (2)— 
(i) in subparagraph (B), by inserting ‘‘(including 
such allowances classified by payments under para-
graphs (1) and (3) of section 233(a), and section 233(f), 
respectively) and payments under section 246’’ after 
‘‘readjustment allowances’’; and 
(ii) by adding at the end the following: 
Applicability. 
19 USC 2311 
note. 
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125 STAT. 408 
PUBLIC LAW 112–40—OCT. 21, 2011 
‘‘(D) The average number of weeks trade readjustment 
allowances were paid to workers. 
‘‘(E) The number of workers who report that they have 
received benefits under a prior certification issued under 
this chapter in any of the 10 fiscal years preceding the 
fiscal year for which the data is collected under this sec-
tion.’’; 
(B) in paragraph (3)— 
(i) in subparagraph (A), by inserting ‘‘training 
leading to an associate’s degree, remedial education, 
prerequisite education,’’ after ‘‘distance learning,’’; 
(ii) by amending subparagraph (B) to read as fol-
lows: 
‘‘(B) The number of workers who complete training 
approved under section 236 who were enrolled in pre- 
layoff training or part-time training at any time during 
that training.’’; 
(iii) in subparagraph (C), by inserting ‘‘, and the 
average duration of training that does not include 
remedial or prerequisite education’’ after ‘‘training’’; 
(iv) in subparagraph (E), by striking ‘‘duration’’ 
and inserting ‘‘average duration’’; and 
(v) in subparagraph (F), by inserting ‘‘and the aver-
age duration of the training that was completed by 
such workers’’ after ‘‘training’’; and 
(C) in paragraph (4)— 
(i) by redesignating subparagraph (B) as subpara-
graph (D); and 
(ii) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) A summary of the data on workers in the quarterly 
reports required under section 239(j) classified by the age, 
pre-program educational level, and post-program credential 
attainment of the workers. 
‘‘(C) The average earnings of workers described in sec-
tion 239(j)(2)(A)(i) in the second, third, and fourth calendar 
quarters following the calendar quarter in which such 
workers cease receiving benefits under this chapter, 
expressed as a percentage of the average earnings of such 
workers in the 3 calendar quarters before the calendar 
quarter in which such workers began receiving benefits 
under this chapter.’’; and 
(D) by adding at the end the following: 
‘‘(6) DATA ON SPENDING.— 
‘‘(A) The total amount of funds used to pay for trade 
readjustment allowances, in the aggregate and by each 
State. 
‘‘(B) The total amount of the payments to the States 
to carry out sections 235 through 238 used for training, 
in the aggregate and for each State. 
‘‘(C) The total amount of payments to the States to 
carry out sections 235 through 238 used for the costs of 
administration, in the aggregate and for each State. 
‘‘(D) The total amount of payments to the States to 
carry out sections 235 through 238 used for job search 
and relocation allowances, in the aggregate and for each 
State.’’. 
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125 STAT. 409 
PUBLIC LAW 112–40—OCT. 21, 2011 
(2) EFFECTIVE DATE.—Not later than October 1, 2012, the 
Secretary of Labor shall update the system required by section 
249B(a) of the Trade Act of 1974 (19 U.S.C. 2323(a)) to include 
the collection of and reporting on the data required by the 
amendments made by paragraph (1). 
(3) ANNUAL
REPORT.—Section 249B(d) of the Trade Act 
of 1974 (19 U.S.C. 2323(d)) is amended by striking ‘‘December 
15’’ and inserting ‘‘February 15’’. 
SEC. 217. EXTENSION. 
Section 245(a) of the Trade Act of 1974 (19 U.S.C. 2317(a)) 
is amended by striking ‘‘February 12, 2011’’ and inserting 
‘‘December 31, 2013’’. 
PART III—OTHER ADJUSTMENT ASSISTANCE 
SEC. 221. TRADE ADJUSTMENT ASSISTANCE FOR FIRMS. 
(a) ANNUAL REPORT.— 
(1) IN GENERAL.—Chapter 3 of title II of the Trade Act 
of 1974 (19 U.S.C. 2341 et seq.) is amended by inserting after 
section 255 the following: 
‘‘SEC. 255A. ANNUAL REPORT ON TRADE ADJUSTMENT ASSISTANCE 
FOR FIRMS. 
‘‘(a) IN GENERAL.—Not later than December 15, 2012, and 
annually thereafter, the Secretary shall prepare a report containing 
data regarding the trade adjustment assistance for firms program 
under this chapter for the preceding fiscal year. The data shall 
include the following: 
‘‘(1) The number of firms that inquired about the program. 
‘‘(2) The number of petitions filed under section 251. 
‘‘(3) The number of petitions certified and denied by the 
Secretary. 
‘‘(4) The average time for processing petitions after the 
petitions are filed. 
‘‘(5) The number of petitions filed and firms certified for 
each congressional district of the United States. 
‘‘(6) Of the number of petitions filed, the number of firms 
that entered the program and received benefits. 
‘‘(7) The number of firms that received assistance in pre-
paring their petitions. 
‘‘(8) The number of firms that received assistance devel-
oping business recovery plans. 
‘‘(9) The number of business recovery plans approved and 
denied by the Secretary. 
‘‘(10) The average duration of benefits received under the 
program nationally and in each region served by an inter-
mediary organization referred to in section 253(b)(1). 
‘‘(11) Sales, employment, and productivity at each firm 
participating in the program at the time of certification. 
‘‘(12) Sales, employment, and productivity at each firm 
upon completion of the program and each year for the 2-year 
period following completion of the program. 
‘‘(13) The number of firms in operation as of the date 
of the report and the number of firms that ceased operations 
after completing the program and in each year during the 
2-year period following completion of the program. 
19 USC 2345a. 
19 USC 2323 
note. 
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125 STAT. 410 
PUBLIC LAW 112–40—OCT. 21, 2011 
‘‘(14) The financial assistance received by each firm partici-
pating in the program. 
‘‘(15) The financial contribution made by each firm partici-
pating in the program. 
‘‘(16) The types of technical assistance included in the 
business recovery plans of firms participating in the program. 
‘‘(17) The number of firms leaving the program before com-
pleting the project or projects in their business recovery plans 
and the reason the project or projects were not completed. 
‘‘(18) The total amount expended by all intermediary 
organizations referred to in section 253(b)(1) and by each such 
organization to administer the program. 
‘‘(19) The total amount expended by intermediary organiza-
tions to provide technical assistance to firms under the program 
nationally and in each region served by such an organization. 
‘‘(b) CLASSIFICATION OF DATA.—To the extent possible, in col-
lecting and reporting the data described in subsection (a), the 
Secretary shall classify the data by intermediary organization, 
State, and national totals. 
‘‘(c) REPORT TO CONGRESS; PUBLICATION.—The Secretary shall— 
‘‘(1) submit the report described in subsection (a) to the 
Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives; and 
‘‘(2) publish the report in the Federal Register and on 
the website of the Department of Commerce. 
‘‘(d) PROTECTION OF CONFIDENTIAL INFORMATION.— 
‘‘(1) IN GENERAL.—The Secretary may not release informa-
tion described in subsection (a) that the Secretary considers 
to be confidential business information unless the person 
submitting the confidential business information had notice, 
at the time of submission, that such information would be 
released by the Secretary, or such person subsequently consents 
to the release of the information. 
‘‘(2) RULE OF CONSTRUCTION.—Nothing in this subsection 
shall be construed to prohibit the Secretary from providing 
information the Secretary considers to be confidential business 
information under paragraph (1) to a court in camera or to 
another party under a protective order issued by a court.’’. 
(2) CLERICAL AMENDMENT.—The table of contents for the 
Trade Act of 1974 is amended by inserting after the item 
relating to section 255 the following: 
‘‘Sec. 255A. Annual report on trade adjustment assistance for firms.’’. 
(3) CONFORMING REPEAL.—Effective on the day after the 
date on which the Secretary of Commerce submits the report 
required by section 1866 of the Trade and Globalization Adjust-
ment Assistance Act of 2009 (19 U.S.C. 2356) for fiscal year 
2011, such section is repealed. 
(b) EXTENSION.—Section 255(a) of the Trade Act of 1974 (19 
U.S.C. 2345(a)) is amended— 
(1) by striking ‘‘$50,000,000’’ and all that follows through 
‘‘February 12, 2011.’’ and inserting ‘‘$16,000,000 for each of 
the fiscal years 2012 and 2013, and $4,000,000 for the 3- 
month period beginning on October 1, 2013, and ending on 
December 31, 2013.’’; and 
(2) by striking ‘‘shall—’’ and all that follows through ‘‘other-
wise remain’’ and inserting ‘‘shall remain’’. 
Effective date. 
19 USC 2356 
note. 
Notice. 
Federal Register, 
publication. 
Web posting. 
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125 STAT. 411 
PUBLIC LAW 112–40—OCT. 21, 2011 
SEC. 222. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES. 
(a) IN GENERAL.—Chapter 4 of title II of the Trade Act of 
1974 (19 U.S.C. 2371 et seq.) is amended— 
(1) by striking subchapters A, C, and D; 
(2) in subchapter B, by striking the subchapter heading; 
and 
(3) by redesignating sections 278 and 279 as sections 271 
and 272, respectively. 
(b) ANNUAL REPORT.— 
(1) IN GENERAL.—Subsection (e) of section 271 of the Trade 
Act of 1974, as redesignated by subsection (a)(3), is amended— 
(A) in the matter preceding paragraph (1), by striking 
‘‘December 15 in each of the calendar years 2009 through’’ 
and inserting ‘‘December 15, 2009,’’; 
(B) in paragraph (1), by striking ‘‘and’’ at the end; 
(C) in paragraph (2), by striking the period at the 
end and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(3) providing the following data relating to program 
performance and outcomes: 
‘‘(A) Of the grants awarded under this section, the 
amount of funds spent by grantees. 
‘‘(B) The average dollar amount of grants awarded 
under this section. 
‘‘(C) The average duration of grants awarded under 
this section. 
‘‘(D) The percentage of workers receiving benefits under 
chapter 2 that are served by programs developed, offered, 
or improved using grants awarded under this section. 
‘‘(E) The percentage and number of workers receiving 
benefits under chapter 2 who obtained a degree through 
such programs and the average duration of the participa-
tion of such workers in training under section 236. 
‘‘(F) The number of workers receiving benefits under 
chapter 2 served by such programs who did not complete 
a degree and the average duration of the participation 
of such workers in training under section 236.’’. 
(2) EFFECTIVE DATE.—The amendments made by paragraph 
(1) shall— 
(A) take effect on October 1, 2011; and 
(B) apply with respect to reports submitted under sub-
section (e) of section 271 of the Trade Act of 1974, as 
redesignated by subsection (a)(3), on or after October 1, 
2012. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 271 of the Trade Act of 1974, as redesignated 
by subsection (a)(3), is amended— 
(A) in subsection (c)— 
(i) in paragraph (4)— 
(I) in subparagraph (A)— 
(aa) in clause (ii), by striking the semi-
colon and inserting ‘‘; and’’; 
(bb) by striking clauses (iii) and (iv); and 
(cc) by redesignating clause (v) as clause 
(iii); 
(II) in subparagraph (B), by striking ‘‘(A)(v)’’ 
and inserting ‘‘(A)(iii)’’; and 
19 USC 2371. 
Applicability. 
19 USC 2371 
note. 
19 USC 2371. 
19 USC 2371, 
2372. 
19 USC 
2371–2374. 
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125 STAT. 412 
PUBLIC LAW 112–40—OCT. 21, 2011 
(ii) in paragraph (5)(A)— 
(I) in clause (i)— 
(aa) in the matter preceding subclause (I), 
by striking ‘‘, and other entities described in 
section 276(a)(2)(B)’’; and 
(bb) in subclause (II), by striking the semi-
colon and inserting ‘‘; and’’; 
(II) by striking clause (iii); and 
(B) in subsection (d), by striking paragraph (2) and 
redesignating paragraph (3) as paragraph (2). 
(2) Subsection (b) of section 272 of the Trade Act of 1974, 
as redesignated by subsection (a)(3), is amended by striking 
‘‘278(a)(2)’’ and inserting ‘‘271(a)(2)’’. 
(d) CLERICAL AMENDMENT.—The table of contents for the Trade 
Act of 1974 is amended by striking the items relating to chapter 
4 of title II and inserting the following: 
‘‘CHAPTER 4—TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES 
‘‘Sec. 271. Community College and Career Training Grant Program. 
‘‘Sec. 272. Authorization of appropriations.’’. 
SEC. 223. TRADE ADJUSTMENT ASSISTANCE FOR FARMERS. 
(a) ANNUAL REPORT.— 
(1) IN GENERAL.—Section 293(d) of the Trade Act of 1974 
(19 U.S.C. 2401b(d)) is amended to read as follows: 
‘‘(d) ANNUAL REPORT.—Not later than January 30 of each year, 
the Secretary shall submit to the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House 
of Representatives a report containing the following information 
with respect to the trade adjustment assistance for farmers program 
under this chapter during the preceding fiscal year: 
‘‘(1) A list of the agricultural commodities covered by a 
certification under this chapter. 
‘‘(2) The States or regions in which agricultural commod-
ities are produced and the aggregate amount of such commod-
ities produced in each such State or region. 
‘‘(3) The number of petitions filed. 
‘‘(4) The number of petitions certified and denied by the 
Secretary. 
‘‘(5) The average time for processing petitions. 
‘‘(6) The number of petitions filed and agricultural com-
modity producers approved for each congressional district of 
the United States. 
‘‘(7) Of the number of producers approved, the number 
of agricultural commodity producers that entered the program 
and received benefits. 
‘‘(8) The number of agricultural commodity producers that 
completed initial technical assistance. 
‘‘(9) The number of agricultural commodity producers that 
completed intensive technical assistance. 
‘‘(10) The number of initial business plans approved and 
denied by the Secretary. 
‘‘(11) The number of long-term business plans approved 
and denied by the Secretary. 
‘‘(12) The total number of agricultural commodity pro-
ducers, by congressional district, receiving initial technical 
assistance and intensive technical assistance, respectively, 
under this chapter. 
19 USC 2372. 
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125 STAT. 413 
PUBLIC LAW 112–40—OCT. 21, 2011 
‘‘(13) The types of initial technical assistance received by 
agricultural commodity producers participating in the program. 
‘‘(14) The types of intensive technical assistance received 
by agricultural commodity producers participating in the pro-
gram. 
‘‘(15) The number of agricultural commodity producers 
leaving the program before completing the projects in their 
long-term business plans and the reason those projects were 
not completed. 
‘‘(16) The total number of agricultural commodity pro-
ducers, by congressional district, receiving benefits under this 
chapter. 
‘‘(17) The average duration of benefits received under this 
chapter. 
‘‘(18) The number of agricultural commodity producers in 
operation as of the date of the report and the number of 
agricultural commodity producers that ceased operations after 
completing the program and in the 1-year period following 
completion of the program. 
‘‘(19) The number of agricultural commodity producers that 
report that such producers received benefits under a prior 
certification issued under this chapter in any of the 10 fiscal 
years preceding the date of the report.’’. 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) shall— 
(A) take effect on October 1, 2011; and 
(B) apply with respect to reports submitted under sec-
tion 293(d) of the Trade Act of 1974 (19 U.S.C. 2401b(d)) 
on or after October 1, 2012. 
(b) EXTENSION.—Section 298(a) of the Trade Act of 1974 (19 
U.S.C. 2401g(a)) is amended— 
(1) by striking ‘‘and there are appropriated’’; and 
(2) by striking ‘‘not to exceed’’ and all that follows through 
‘‘February 12, 2011’’ and inserting ‘‘not to exceed $90,000,000 
for each of the fiscal years 2012 and 2013, and $22,500,000 
for the 3-month period beginning on October 1, 2013, and 
ending on December 31, 2013’’. 
PART IV—GENERAL PROVISIONS 
SEC. 231. APPLICABILITY OF TRADE ADJUSTMENT ASSISTANCE PROVI-
SIONS. 
(a) TRADE ADJUSTMENT ASSISTANCE FOR WORKERS.— 
(1) PETITIONS FILED ON OR AFTER FEBRUARY 13, 2011, AND 
BEFORE DATE OF ENACTMENT.— 
(A) CERTIFICATIONS OF WORKERS NOT CERTIFIED BEFORE 
DATE OF ENACTMENT.— 
(i) CRITERIA IF A DETERMINATION HAS NOT BEEN 
MADE.—If, as of the date of the enactment of this 
Act, the Secretary of Labor has not made a determina-
tion with respect to whether to certify a group of 
workers as eligible to apply for adjustment assistance 
under section 222 of the Trade Act of 1974 pursuant 
to a petition described in clause (iii), the Secretary 
shall make that determination based on the require-
ments of section 222 of the Trade Act of 1974, as 
in effect on such date of enactment. 
19 USC 2271 
note. 
Applicability. 
19 USC 2401b 
note. 
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125 STAT. 414 
PUBLIC LAW 112–40—OCT. 21, 2011 
(ii) RECONSIDERATION
OF
DENIALS
OF
CERTIFI-
CATIONS.—If, before the date of the enactment of this 
Act, the Secretary made a determination not to certify 
a group of workers as eligible to apply for adjustment 
assistance under section 222 of the Trade Act of 1974 
pursuant to a petition described in clause (iii), the 
Secretary shall— 
(I) reconsider that determination; and 
(II) if the group of workers meets the require-
ments of section 222 of the Trade Act of 1974, 
as in effect on such date of enactment, certify 
the group of workers as eligible to apply for adjust-
ment assistance. 
(iii) PETITION DESCRIBED.—A petition described in 
this clause is a petition for a certification of eligibility 
for a group of workers filed under section 221 of the 
Trade Act of 1974 on or after February 13, 2011, and 
before the date of the enactment of this Act. 
(B) ELIGIBILITY FOR BENEFITS.— 
(i) IN GENERAL.—Except as provided in clause (ii), 
a worker certified as eligible to apply for adjustment 
assistance under section 222 of the Trade Act of 1974 
pursuant to a petition described in subparagraph 
(A)(iii) shall be eligible, on and after the date that 
is 60 days after the date of the enactment of this 
Act, to receive benefits only under the provisions of 
chapter 2 of title II of the Trade Act of 1974, as 
in effect on such date of enactment. 
(ii) ELECTION FOR WORKERS RECEIVING BENEFITS 
ON THE 60TH DAY AFTER ENACTMENT.— 
(I) IN GENERAL.—A worker certified as eligible 
to apply for adjustment assistance under section 
222 of the Trade Act of 1974 pursuant to a petition 
described in subparagraph (A)(iii) who is receiving 
benefits under chapter 2 of title II of the Trade 
Act of 1974 as of the date that is 60 days after 
the date of the enactment of this Act may, not 
later than the date that is 150 days after such 
date of enactment, make a one-time election to 
receive benefits pursuant to— 
(aa) the provisions of chapter 2 of title 
II of the Trade Act of 1974, as in effect on 
such date of enactment; or 
(bb) the provisions of chapter 2 of title 
II of the Trade Act of 1974, as in effect on 
February 13, 2011. 
(II) EFFECT OF FAILURE TO MAKE ELECTION.— 
A worker described in subclause (I) who does not 
make the election described in that subclause on 
or before the date that is 150 days after the date 
of the enactment of this Act shall be eligible to 
receive benefits only under the provisions of 
chapter 2 of title II of the Trade Act of 1974, 
as in effect on February 13, 2011. 
(III) COMPUTATION OF MAXIMUM BENEFITS.— 
Benefits received by a worker described in sub-
clause (I) under chapter 2 of title II of the Trade 
Deadline. 
Effective date. 
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125 STAT. 415 
PUBLIC LAW 112–40—OCT. 21, 2011 
Act of 1974, as in effect on February 13, 2011, 
before the worker makes the election described 
in that subclause shall be included in any deter-
mination of the maximum benefits for which the 
worker is eligible under the provisions of chapter 
2 of title II of the Trade Act of 1974, as in effect 
on the date of the enactment of this Act, or as 
in effect on February 13, 2011, whichever is 
applicable after the election of the worker under 
subclause (I). 
(2) PETITIONS FILED BEFORE FEBRUARY 13, 2011.—A worker 
certified as eligible to apply for adjustment assistance pursuant 
to a petition filed under section 221 of the Trade Act of 1974— 
(A) on or after May 18, 2009, and on or before February 
12, 2011, shall continue to be eligible to apply for and 
receive benefits under the provisions of chapter 2 of title 
II of such Act, as in effect on February 12, 2011; or 
(B) before May 18, 2009, shall continue to be eligible 
to apply for and receive benefits under the provisions of 
chapter 2 of title II of such Act, as in effect on May 
17, 2009. 
(3) QUALIFYING SEPARATIONS WITH RESPECT TO PETITIONS 
FILED WITHIN 90 DAYS OF DATE OF ENACTMENT.—Section 223(b) 
of the Trade Act of 1974, as in effect on the date of the 
enactment of this Act, shall be applied and administered by 
substituting ‘‘before February 13, 2010’’ for ‘‘more than one 
year before the date of the petition on which such certification 
was granted’’ for purposes of determining whether a worker 
is eligible to apply for adjustment assistance pursuant to a 
petition filed under section 221 of the Trade Act of 1974 on 
or after the date of the enactment of this Act and on or before 
the date that is 90 days after such date of enactment. 
(b) TRADE ADJUSTMENT ASSISTANCE FOR FIRMS.— 
(1) CERTIFICATION OF FIRMS NOT CERTIFIED BEFORE DATE 
OF ENACTMENT.— 
(A) CRITERIA
IF
A
DETERMINATION
HAS
NOT
BEEN 
MADE.—If, as of the date of the enactment of this Act, 
the Secretary of Commerce has not made a determination 
with respect to whether to certify a firm as eligible to 
apply for adjustment assistance under section 251 of the 
Trade Act of 1974 pursuant to a petition described in 
subparagraph (C), the Secretary shall make that deter-
mination based on the requirements of section 251 of the 
Trade Act of 1974, as in effect on such date of enactment. 
(B) RECONSIDERATION
OF
DENIAL
OF
CERTAIN
PETI-
TIONS.—If, before the date of the enactment of this Act, 
the Secretary made a determination not to certify a firm 
as eligible to apply for adjustment assistance under section 
251 of the Trade Act of 1974 pursuant to a petition 
described in subparagraph (C), the Secretary shall— 
(i) reconsider that determination; and 
(ii) if the firm meets the requirements of section 
251 of the Trade Act of 1974, as in effect on such 
date of enactment, certify the firm as eligible to apply 
for adjustment assistance. 
(C) PETITION DESCRIBED.—A petition described in this 
subparagraph is a petition for a certification of eligibility 
Applicability. 
Deadline. 
Time period. 
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125 STAT. 416 
PUBLIC LAW 112–40—OCT. 21, 2011 
filed by a firm or its representative under section 251 
of the Trade Act of 1974 on or after February 13, 2011, 
and before the date of the enactment of this Act. 
(2) CERTIFICATION OF FIRMS THAT DID NOT SUBMIT PETI-
TIONS BETWEEN FEBRUARY 13, 2011, AND DATE OF ENACTMENT.— 
(A) IN GENERAL.—The Secretary of Commerce shall 
certify a firm described in subparagraph (B) as eligible 
to apply for adjustment assistance under section 251 of 
the Trade Act of 1974, as in effect on the date of the 
enactment of this Act, if the firm or its representative 
files a petition for a certification of eligibility under section 
251 of the Trade Act of 1974 not later than 90 days after 
such date of enactment. 
(B) FIRM DESCRIBED.—A firm described in this subpara-
graph is a firm that the Secretary determines would have 
been certified as eligible to apply for adjustment assistance 
if— 
(i) the firm or its representative had filed a petition 
for a certification of eligibility under section 251 of 
the Trade Act of 1974 on a date during the period 
beginning on February 13, 2011, and ending on the 
day before the date of the enactment of this Act; and 
(ii) the provisions of chapter 3 of title II of the 
Trade Act of 1974, as in effect on such date of enact-
ment, had been in effect on that date during the period 
described in clause (i). 
SEC. 232. TERMINATION PROVISIONS. 
Section 285 of the Trade Act of 1974 (19 U.S.C. 2271 note) 
is amended— 
(1) by striking ‘‘February 12, 2011’’ each place it appears 
and inserting ‘‘December 31, 2013’’; 
(2) in subsection (a)(2)— 
(A) in the matter preceding subparagraph (A), by 
striking ‘‘that chapter’’ and all that follows through ‘‘the 
worker is—’’ and inserting ‘‘that chapter if the worker 
is—’’; and 
(B) in subparagraph (A), by striking ‘‘petitions’’ and 
inserting ‘‘a petition’’; and 
(3) in subsection (b)— 
(A) in paragraph (1)(B), in the matter preceding clause 
(i), by inserting ‘‘pursuant to a petition filed under section 
251’’ after ‘‘chapter 3’’; 
(B) in paragraph (2)(B), in the matter preceding clause 
(i), by inserting ‘‘pursuant to a petition filed under section 
292’’ after ‘‘chapter 6’’; and 
(C) by striking paragraph (3). 
SEC. 233. SUNSET PROVISIONS. 
(a) APPLICATION
OF PRIOR LAW.—Subject to subsection (b), 
beginning on January 1, 2014, the provisions of chapters 2, 3, 
5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271 
et seq.), as in effect on February 13, 2011, shall apply, except 
that in applying and administering such chapters— 
(1) paragraph (1) of section 231(c) of that Act shall be 
applied and administered as if subparagraphs (A), (B), and 
(C) of that paragraph were not in effect; 
Effective date. 
19 USC 2271 
note prec. 
19 USC 2271 
note prec. 
Time period. 
Deadline. 
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125 STAT. 417 
PUBLIC LAW 112–40—OCT. 21, 2011 
(2) section 233 of that Act shall be applied and adminis-
tered— 
(A) in subsection (a)— 
(i) in paragraph (2), by substituting ‘‘104-week 
period’’ for ‘‘104-week period’’ and all that follows 
through ‘‘130-week period)’’; and 
(ii) in paragraph (3)— 
(I) in the matter preceding subparagraph (A), 
by substituting ‘‘65’’ for ‘‘52’’; and 
(II) by substituting ‘‘78-week period’’ for ‘‘52- 
week period’’ each place it appears; and 
(B) by applying and administering subsection (g) as 
if it read as follows: 
‘‘(g) PAYMENT OF TRADE READJUSTMENT ALLOWANCES TO COM-
PLETE TRAINING.—Notwithstanding any other provision of this sec-
tion, in order to assist an adversely affected worker to complete 
training approved for the worker under section 236 that leads 
to the completion of a degree or industry-recognized credential, 
payments may be made as trade readjustment allowances for not 
more than 13 weeks within such period of eligibility as the Secretary 
may prescribe to account for a break in training or for justifiable 
cause that follows the last week for which the worker is otherwise 
entitled to a trade readjustment allowance under this chapter if— 
‘‘(1) payment of the trade readjustment allowance for not 
more than 13 weeks is necessary for the worker to complete 
the training; 
‘‘(2) the worker participates in training in each such week; 
and 
‘‘(3) the worker— 
‘‘(A) has substantially met the performance bench-
marks established as part of the training approved for 
the worker; 
‘‘(B) is expected to continue to make progress toward 
the completion of the training; and 
‘‘(C) will complete the training during that period of 
eligibility.’’; 
(3) section 245 of that Act shall be applied and administered 
by substituting ‘‘2014’’ for ‘‘2007’’; 
(4) section 246(b)(1) of that Act shall be applied and 
administered by substituting ‘‘December 31, 2014’’ for ‘‘the date 
that is 5 years’’ and all that follows through ‘‘State’’; 
(5) section 256(b) of that Act shall be applied and adminis-
tered by substituting ‘‘the 1-year period beginning on January 
1, 2014’’ for ‘‘each of fiscal years 2003 through 2007, and 
$4,000,000 for the 3-month period beginning on October 1, 
2007’’; 
(6) section 298(a) of that Act shall be applied and adminis-
tered by substituting ‘‘the 1-year period beginning on January 
1, 2014’’ for ‘‘each of the fiscal years’’ and all that follows 
through ‘‘October 1, 2007’’; and 
(7) section 285 of that Act shall be applied and adminis-
tered— 
(A) in subsection (a), by substituting ‘‘2014’’ for ‘‘2007’’ 
each place it appears; and 
(B) by applying and administering subsection (b) as 
if it read as follows: 
‘‘(b) OTHER ASSISTANCE.— 
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125 STAT. 418 
PUBLIC LAW 112–40—OCT. 21, 2011 
‘‘(1) ASSISTANCE FOR FIRMS.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), assistance may not be provided under chapter 3 after 
December 31, 2014. 
‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), 
any assistance approved under chapter 3 on or before 
December 31, 2014, may be provided— 
‘‘(i) to the extent funds are available pursuant 
to such chapter for such purpose; and 
‘‘(ii) to the extent the recipient of the assistance 
is otherwise eligible to receive such assistance. 
‘‘(2) FARMERS.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), assistance may not be provided under chapter 6 after 
December 31, 2014. 
‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), 
any assistance approved under chapter 6 on or before 
December 31, 2014, may be provided— 
‘‘(i) to the extent funds are available pursuant 
to such chapter for such purpose; and 
‘‘(ii) to the extent the recipient of the assistance 
is otherwise eligible to receive such assistance.’’. 
(b) EXCEPTIONS.—The provisions of chapters 2, 3, 5, and 6 
of title II of the Trade Act of 1974, as in effect on the date 
of the enactment of this Act, shall continue to apply on and after 
January 1, 2014, with respect to— 
(1) workers certified as eligible for trade adjustment assist-
ance benefits under chapter 2 of title II of that Act pursuant 
to petitions filed under section 221 of that Act before January 
1, 2014; 
(2) firms certified as eligible for technical assistance or 
grants under chapter 3 of title II of that Act pursuant to 
petitions filed under section 251 of that Act before January 
1, 2014; and 
(3) agricultural commodity producers certified as eligible 
for technical or financial assistance under chapter 6 of title 
II of that Act pursuant to petitions filed under section 292 
of that Act before January 1, 2014. 
Subtitle B—Health Coverage Improvement 
SEC. 241. HEALTH CARE TAX CREDIT. 
(a) TERMINATION
OF CREDIT.—Subparagraph (B) of section 
35(b)(1) of the Internal Revenue Code of 1986 is amended by 
inserting ‘‘, and before January 1, 2014’’ before the period. 
(b) EXTENSION THROUGH CREDIT TERMINATION DATE OF CER-
TAIN EXPIRED CREDIT PROVISIONS.— 
(1) PARTIAL EXTENSION OF INCREASED CREDIT RATE.—Sec-
tion 35(a) of such Code is amended by striking ‘‘65 percent 
(80 percent in the case of eligible coverage months beginning 
before February 13, 2011)’’ and inserting ‘‘72.5 percent’’. 
(2) EXTENSION OF ADVANCE PAYMENT PROVISIONS.— 
(A) Section 7527(b) of such Code is amended by striking 
‘‘65 percent (80 percent in the case of eligible coverage 
months beginning before February 13, 2011)’’ and inserting 
‘‘72.5 percent’’. 
26 USC 7527. 
26 USC 35. 
Applicability. 
VerDate Mar 15 2010 
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125 STAT. 419 
PUBLIC LAW 112–40—OCT. 21, 2011 
(B) Section 7527(d)(2) of such Code is amended by 
striking ‘‘which is issued before February 13, 2011’’. 
(C) Section 7527(e) of such Code is amended by striking 
‘‘80 percent’’ and inserting ‘‘72.5 percent’’. 
(D) Section 7527(e) of such Code is amended by striking 
‘‘In the case of eligible coverage months beginning before 
February 13, 2011—’’. 
(3) EXTENSION OF CERTAIN OTHER RELATED PROVISIONS.— 
(A) Section 35(c)(2)(B) of such Code is amended by 
striking ‘‘and before February 13, 2011’’. 
(B) Section 35(e)(1)(K) of such Code is amended by 
striking ‘‘In the case of eligible coverage months beginning 
before February 13, 2012, coverage’’ and inserting ‘‘Cov-
erage’’. 
(C) Section 35(g)(9) of such Code, as added by section 
1899E(a) of the American Recovery and Reinvestment Tax 
Act of 2009 (relating to continued qualification of family 
members after certain events), is amended by striking ‘‘In 
the case of eligible coverage months beginning before Feb-
ruary 13, 2011—’’. 
(D) Section 173(f)(8) of the Workforce Investment Act 
of 1998 is amended by striking ‘‘In the case of eligible 
coverage months beginning before February 13, 2011—’’. 
(c) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided in this sub-
section, the amendments made by this section shall apply to 
coverage months beginning after February 12, 2011. 
(2) ADVANCE PAYMENT PROVISIONS.— 
(A) The amendment made by subsection (b)(2)(B) shall 
apply to certificates issued after the date which is 30 days 
after the date of the enactment of this Act. 
(B) The amendment made by subsection (b)(2)(D) shall 
apply to coverage months beginning after the date which 
is 30 days after the date of the enactment of this Act. 
SEC. 242. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF 
DETERMINING WHETHER THERE IS A 63-DAY LAPSE IN 
CREDITABLE COVERAGE. 
(a) IN GENERAL.—The following provisions are each amended 
by striking ‘‘February 13, 2011’’ and inserting ‘‘January 1, 2014’’: 
(1) Section 9801(c)(2)(D) of the Internal Revenue Code of 
1986. 
(2) Section 701(c)(2)(C) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1181(c)(2)(C)). 
(3) Section 2701(c)(2)(C) of the Public Health Service Act 
(as in effect for plan years beginning before January 1, 2014). 
(4) Section 2704(c)(2)(C) of the Public Health Service Act 
(as in effect for plan years beginning on or after January 
1, 2014). 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by this section 
shall apply to plan years beginning after February 12, 2011. 
(2) TRANSITIONAL RULES.— 
(A) BENEFIT
DETERMINATIONS.—Notwithstanding the 
amendments made by this section (and the provisions of 
law amended thereby), a plan shall not be required to 
modify benefit determinations for the period beginning on 
26 USC 9801 
note. 
42 USC 300gg–3. 
42 USC 300gg, 
300gg–3. 
26 USC 9801. 
26 USC 35 note. 
29 USC 2918. 
26 USC 35. 
26 USC 7527. 
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125 STAT. 420 
PUBLIC LAW 112–40—OCT. 21, 2011 
February 13, 2011, and ending 30 days after the date 
of the enactment of this Act, but a plan shall not fail 
to be qualified health insurance within the meaning of 
section 35(e) of the Internal Revenue Code of 1986 during 
this period merely due to such failure to modify benefit 
determinations. 
(B) GUIDANCE CONCERNING PERIODS BEFORE 30 DAYS 
AFTER ENACTMENT.—Except as provided in subparagraph 
(A), the Secretary of the Treasury (or his designee), in 
consultation with the Secretary of Health and Human Serv-
ices and the Secretary of Labor, may issue regulations 
or other guidance regarding the scope of the application 
of the amendments made by this section to periods before 
the date which is 30 days after the date of the enactment 
of this Act. 
(C) SPECIAL RULE RELATING TO CERTAIN LOSS OF COV-
ERAGE.—In the case of a TAA-related loss of coverage (as 
defined in section 4980B(f)(5)(C)(iv) of the Internal Revenue 
Code of 1986) that occurs during the period beginning 
on February 13, 2011, and ending 30 days after the date 
of the enactment of this Act, the 7-day period described 
in section 9801(c)(2)(D) of the Internal Revenue Code of 
1986, section 701(c)(2)(C) of the Employee Retirement 
Income Security Act of 1974, and section 2701(c)(2)(C) of 
the Public Health Service Act shall be extended until 30 
days after such date of enactment. 
SEC. 243. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA- 
ELIGIBLE INDIVIDUALS AND PBGC RECIPIENTS. 
(a) IN GENERAL.—The following provisions are each amended 
by striking ‘‘February 12, 2011’’ and inserting ‘‘January 1, 2014’’: 
(1) Section 602(2)(A)(v) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1162(2)(A)(v)). 
(2) 
Section 
602(2)(A)(vi) 
of 
such 
Act 
(29 
U.S.C. 
1162(2)(A)(vi)). 
(3) Section 4980B(f)(2)(B)(i)(V) of the Internal Revenue 
Code of 1986. 
(4) Section 4980B(f)(2)(B)(i)(VI) of such Code. 
(5) Section 2202(2)(A)(iv) of the Public Health Service Act 
(42 U.S.C. 300bb–2(2)(A)(iv)). 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to periods of coverage which would (without regard 
to the amendments made by this section) end on or after the 
date which is 30 days after the date of the enactment of this 
Act. 
Subtitle C—Offsets 
PART I—UNEMPLOYMENT COMPENSATION 
PROGRAM INTEGRITY 
SEC. 251. MANDATORY PENALTY ASSESSMENT ON FRAUD CLAIMS. 
(a) IN GENERAL.—Section 303(a) of the Social Security Act 
(42 U.S.C. 503(a)) is amended— 
(1) in paragraph (10), by striking the period at the end 
of subparagraph (B) and inserting ‘‘; and’’; and 
26 USC 4980B 
note. 
26 USC 4980B. 
Time period. 
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125 STAT. 421 
PUBLIC LAW 112–40—OCT. 21, 2011 
(2) by adding at the end the following new paragraph: 
‘‘(11)(A) At the time the State agency determines an erro-
neous payment from its unemployment fund was made to an 
individual due to fraud committed by such individual, the 
assessment of a penalty on the individual in an amount of 
not less than 15 percent of the amount of the erroneous pay-
ment; and 
‘‘(B) The immediate deposit of all assessments paid pursu-
ant to subparagraph (A) into the unemployment fund of the 
State.’’. 
(b) APPLICATION TO FEDERAL PAYMENTS.— 
(1) IN
GENERAL.—As a condition for administering any 
unemployment compensation program of the United States (as 
defined in paragraph (2)) as an agent of the United States, 
if the State determines that an erroneous payment was made 
by the State to an individual under any such program due 
to fraud committed by such individual, the State shall assess 
a penalty on such individual and deposit any such penalty 
received in the same manner as the State assesses and deposits 
such penalties under provisions of State law implementing 
section 303(a)(11) of the Social Security Act, as added by sub-
section (a). 
(2) DEFINITION.—For purposes of this subsection, the term 
‘‘unemployment compensation program of the United States’’ 
means— 
(A) unemployment compensation for Federal civilian 
employees under subchapter I of chapter 85 of title 5, 
United States Code; 
(B) 
unemployment 
compensation 
for 
ex- 
servicemembers under subchapter II of chapter 85 of title 
5, United States Code; 
(C) trade readjustment allowances under sections 231 
through 234 of the Trade Act of 1974 (19 U.S.C. 2291– 
2294); 
(D) disaster unemployment assistance under section 
410(a) of the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5177(a)); 
(E) any Federal temporary extension of unemployment 
compensation; 
(F) any Federal program which increases the weekly 
amount of unemployment compensation payable to individ-
uals; and 
(G) any other Federal program providing for the pay-
ment of unemployment compensation. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to erroneous 
payments established after the end of the 2-year period begin-
ning on the date of the enactment of this Act. 
(2) AUTHORITY.—A State may amend its State law to apply 
such amendments to erroneous payments established prior to 
the end of the period described in paragraph (1). 
SEC. 252. PROHIBITION ON NONCHARGING DUE TO EMPLOYER FAULT. 
(a) IN GENERAL.—Section 3303 of the Internal Revenue Code 
of 1986 is amended— 
(1) by striking subsections (f) and (g); and 
26 USC 3303. 
42 USC 503 note. 
42 USC 503 note. 
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125 STAT. 422 
PUBLIC LAW 112–40—OCT. 21, 2011 
(2) by inserting after subsection (e) the following new sub-
section: 
‘‘(f) PROHIBITION ON NONCHARGING DUE TO EMPLOYER FAULT.— 
‘‘(1) IN GENERAL.—A State law shall be treated as meeting 
the requirements of subsection (a)(1) only if such law provides 
that an employer’s account shall not be relieved of charges 
relating to a payment from the State unemployment fund if 
the State agency determines that— 
‘‘(A) the payment was made because the employer, 
or an agent of the employer, was at fault for failing to 
respond timely or adequately to the request of the agency 
for information relating to the claim for compensation; 
and 
‘‘(B) the employer or agent has established a pattern 
of failing to respond timely or adequately to such requests. 
‘‘(2) STATE AUTHORITY TO IMPOSE STRICTER STANDARDS.— 
Nothing in paragraph (1) shall limit the authority of a State 
to provide that an employer’s account not be relieved of charges 
relating to a payment from the State unemployment fund for 
reasons other than the reasons described in subparagraphs 
(A) and (B) of such paragraph, such as after the first instance 
of a failure to respond timely or adequately to requests 
described in paragraph (1)(A).’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to erroneous 
payments established after the end of the 2-year period begin-
ning on the date of the enactment of this Act. 
(2) AUTHORITY.—A State may amend its State law to apply 
such amendments to erroneous payments established prior to 
the end of the period described in paragraph (1). 
SEC. 253. REPORTING OF REHIRED EMPLOYEES TO THE DIRECTORY 
OF NEW HIRES. 
(a) 
DEFINITION
OF
NEWLY
HIRED
EMPLOYEE.—Section 
453A(a)(2) of the Social Security Act (42 U.S.C. 653a(a)(2)) is 
amended by adding at the end the following: 
‘‘(C) NEWLY HIRED EMPLOYEE.—The term ‘newly hired 
employee’ means an employee who— 
‘‘(i) has not previously been employed by the 
employer; or 
‘‘(ii) was previously employed by the employer but 
has been separated from such prior employment for 
at least 60 consecutive days.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—Subject to paragraph (2), the amendments 
made by this section shall take effect 6 months after the date 
of the enactment of this Act. 
(2) COMPLIANCE TRANSITION PERIOD.—If the Secretary of 
Health and Human Services determines that State legislation 
(other than legislation appropriating funds) is required in order 
for a State plan under part D of title IV of the Social Security 
Act to meet the additional requirement imposed by the amend-
ment made by subsection (a), the plan shall not be regarded 
as failing to meet such requirement before the first day of 
the second calendar quarter beginning after the close of the 
first regular session of the State legislature that begins after 
42 USC 653a 
note. 
26 USC 3303 
note. 
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125 STAT. 423 
PUBLIC LAW 112–40—OCT. 21, 2011 
the effective date of such amendment. If the State has a 2- 
year legislative session, each year of the session is deemed 
to be a separate regular session of the State legislature. 
PART II—ADDITIONAL OFFSETS 
SEC. 261. IMPROVEMENTS TO CONTRACTS WITH MEDICARE QUALITY 
IMPROVEMENT ORGANIZATIONS (QIOS) IN ORDER TO 
IMPROVE THE QUALITY OF CARE FURNISHED TO MEDI-
CARE BENEFICIARIES. 
(a) AUTHORITY TO CONTRACT WITH A BROAD RANGE OF ENTI-
TIES.— 
(1) DEFINITION.—Section 1152 of the Social Security Act 
(42 U.S.C. 1320c–1) is amended by striking paragraphs (1) 
and (2) and inserting the following new paragraphs: 
‘‘(1) is able, as determined by the Secretary, to perform 
its functions under this part in a manner consistent with the 
efficient and effective administration of this part and title 
XVIII; 
‘‘(2) has at least one individual who is a representative 
of health care providers on its governing body; and’’. 
(2) NAME CHANGE.—Part B of title XI of the Social Security 
Act (42 U.S.C. 1320c et seq.) is amended— 
(A) in the headings for sections 1152 and 1153, by 
striking ‘‘UTILIZATION AND QUALITY CONTROL PEER REVIEW’’ 
and inserting ‘‘QUALITY IMPROVEMENT’’; 
(B) in the heading for section 1154, by striking ‘‘PEER 
REVIEW’’ and inserting ‘‘QUALITY IMPROVEMENT’’; and 
(C) by striking ‘‘utilization and quality control peer 
review’’ and ‘‘peer review’’ each place it appears before 
‘‘organization’’ or ‘‘organizations’’ and inserting ‘‘quality 
improvement’’. 
(3) CONFORMING
AMENDMENTS
TO
THE
MEDICARE
PRO-
GRAM.—Title XVIII of the Social Security Act (42 U.S.C. 1395 
et seq.) is amended— 
(A) by striking ‘‘utilization and quality control peer 
review’’ and inserting ‘‘quality improvement’’ each place 
it appears; 
(B) by striking ‘‘quality control and peer review’’ and 
inserting ‘‘quality improvement’’ each place it appears; 
(C) in paragraphs (1)(A)(iii)(I) and (2) of section 1842(l), 
by striking ‘‘peer review organization’’ and inserting 
‘‘quality improvement organization’’; 
(D) in subparagraphs (A) and (B) of section 1866(a)(3), 
by striking ‘‘peer review’’ and inserting ‘‘quality improve-
ment’’; 
(E) in section 1867(d)(3), in the heading, by striking 
‘‘PEER REVIEW’’ and inserting ‘‘QUALITY IMPROVEMENT’’; and 
(F) in section 1869(c)(3)(G), by striking ‘‘peer review 
organizations’’ 
and 
inserting 
‘‘quality 
improvement 
organizations’’. 
(b) IMPROVEMENTS WITH RESPECT TO THE CONTRACT.— 
(1) FLEXIBILITY WITH RESPECT TO THE GEOGRAPHIC SCOPE 
OF CONTRACTS.—Section 1153 of the Social Security Act (42 
U.S.C. 1320c–2) is amended— 
(A) by striking subsection (a) and inserting the fol-
lowing new subsection: 
42 USC 1395ff. 
42 USC 1395dd. 
42 USC 1395cc. 
42 USC 1395u. 
42 USC 1395g, 
1395k, 1395x, 
1395pp. 
42 USC 1395y, 
1395cc, 1395dd, 
1395ff, 1395mm, 
1395pp, 1395ww. 
42 USC 
1320c–1320c–7, 
1320c–9, 
1320c–10. 
42 USC 1320c–3. 
42 USC 1320c–1, 
1320c–2. 
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125 STAT. 424 
PUBLIC LAW 112–40—OCT. 21, 2011 
‘‘(a) The Secretary shall establish throughout the United States 
such local, State, regional, national, or other geographic areas as 
the Secretary determines appropriate with respect to which con-
tracts under this part will be made.’’; 
(B) in subsection (b)(1), as amended by subsection 
(a)(2)— 
(i) in the first sentence, by striking ‘‘a contract 
with 
a 
quality 
improvement 
organization’’ 
and 
inserting ‘‘contracts with one or more quality improve-
ment organizations’’; and 
(ii) in the second sentence, by striking ‘‘meets the 
requirements’’ and all that follows before the period 
at the end and inserting ‘‘will be operating in an area, 
the Secretary shall ensure that there is no duplication 
of the functions carried out by such organizations 
within the area’’; 
(C) in subsection (b)(2)(B), by inserting ‘‘or the Sec-
retary determines that there is a more qualified entity 
to perform one or more of the functions in section 1154(a)’’ 
after ‘‘under this part’’; 
(D) in subsection (b)(3)— 
(i) in subparagraph (A), by striking ‘‘, or association 
of such facilities,’’; and 
(ii) in subparagraph (B)— 
(I) by striking ‘‘or association of such facili-
ties’’; and 
(II) by striking ‘‘or associations’’; and 
(E) by striking subsection (i). 
(2) 
EXTENSION
OF
LENGTH
OF
CONTRACTS.—Section 
1153(c)(3) of the Social Security Act (42 U.S.C. 1320c–2(c)(3)) 
is amended— 
(A) by striking ‘‘three years’’ and inserting ‘‘five years’’; 
and 
(B) by striking ‘‘on a triennial basis’’ and inserting 
‘‘for terms of five years’’. 
(3) AUTHORITY TO TERMINATE IN A MANNER CONSISTENT 
WITH THE FEDERAL ACQUISITION REGULATION.—Section 1153 of 
the Social Security Act (42 U.S.C. 1320c–2) is amended— 
(A) in subsection (b), by adding at the end the following 
new paragraph: 
‘‘(4) The Secretary may consider a variety of factors in selecting 
the contractors that the Secretary determines would provide for 
the most efficient and effective administration of this part, such 
as geographic location, size, and prior experience in health care 
quality improvement. Quality improvement organizations operating 
as of January 1, 2012, shall be allowed to compete for new contracts 
(as determined appropriate by the Secretary) along with other quali-
fied organizations and are eligible for renewal of contracts for 
terms five years thereafter (as determined appropriate by the Sec-
retary).’’; 
(B) in subsection (c), by striking paragraphs (4) through 
(6) and redesignating paragraphs (7) and (8) as paragraphs 
(4) and (5), respectively; and 
(C) by striking subsection (d). 
(4) ADMINISTRATIVE IMPROVEMENT.—Section 1153(c)(5) of 
the Social Security Act (42 U.S.C. 1320c–2(c)(5)), as redesig-
nated by this subsection, is amended to read as follows: 
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125 STAT. 425 
PUBLIC LAW 112–40—OCT. 21, 2011 
‘‘(5) reimbursement shall be made to the organization on 
a monthly basis, with payments for any month being made 
consistent with the Federal Acquisition Regulation.’’. 
(c) AUTHORITY FOR QUALITY IMPROVEMENT ORGANIZATIONS TO 
PERFORM SPECIALIZED FUNCTIONS AND TO ELIMINATE CONFLICTS 
OF INTEREST.—Part B of title XI of the Social Security Act (42 
U.S.C. 1320c et seq.) is amended— 
(1) in section 1153— 
(A) in subsection (b)(1), as amended by subsection 
(b)(1)(B), by inserting after the first sentence the following 
new sentence: ‘‘In entering into contracts with such quali-
fied organizations, the Secretary shall, to the extent appro-
priate, seek to ensure that each of the functions described 
in section 1154(a) are carried out within an area estab-
lished under subsection (a).’’; and 
(B) in subsection (c)(1), by striking ‘‘the functions set 
forth in section 1154(a), or may subcontract for the perform-
ance of all or some of such functions’’ and inserting ‘‘a 
function or functions under section 1154 directly or may 
subcontract for the performance of all or some of such 
function or functions’’; and 
(2) in section 1154— 
(A) in subsection (a)— 
(i) in the matter preceding paragraph (1)— 
(I) by striking ‘‘Any’’ and inserting ‘‘Subject 
to subsection (b), any’’; and 
(II) by inserting ‘‘one or more of’’ before ‘‘the 
following functions’’; 
(ii) in paragraph (4), by striking subparagraph (C); 
(iii) by inserting after paragraph (11) the following 
new paragraph: 
‘‘(12) As part of the organization’s review responsibility 
under paragraph (1), the organization shall review all ambula-
tory 
surgical 
procedures 
specified 
pursuant 
to 
section 
1833(i)(1)(A) which are performed in the area, or, at the discre-
tion of the Secretary, a sample of such procedures.’’; and 
(iv) in paragraph (15), by striking ‘‘significant on- 
site review activities’’ and all that follows before the 
period at the end and inserting ‘‘on-site review activi-
ties as the Secretary determines appropriate’’. 
(B) by striking subsection (d) and redesignating sub-
sections (b) and (c) as subsections (c) and (d), respectively; 
and 
(C) by inserting after subsection (a) the following new 
subsection: 
‘‘(b) A quality improvement organization entering into a con-
tract with the Secretary to perform a function described in a para-
graph under subsection (a) must perform all of the activities 
described in such paragraph, except to the extent otherwise nego-
tiated with the Secretary pursuant to the contract or except for 
a function for which the Secretary determines it is not appropriate 
for the organization to perform, such as a function that could 
cause a conflict of interest with another function.’’. 
(d) QUALITY IMPROVEMENT AS SPECIFIED FUNCTION.—Section 
1154(a) of the Social Security Act (42 U.S.C. 1320c–3(a)) is amended 
by adding at the end the following new paragraph: 
42 USC 1320c–3. 
42 USC 1320c–2. 
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125 STAT. 426 
PUBLIC LAW 112–40—OCT. 21, 2011 
‘‘(18) The organization shall perform, subject to the terms 
of the contract, such other activities as the Secretary determines 
may be necessary for the purposes of improving the quality 
of care furnished to individuals with respect to items and 
services for which payment may be made under title XVIII.’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to contracts entered into or renewed on or after January 
1, 2012. 
SEC. 262. RATES FOR MERCHANDISE PROCESSING FEES. 
(a) FEES FOR PERIOD FROM JULY 1, 2014, TO NOVEMBER 30, 
2015.—For the period beginning on July 1, 2014, and ending on 
November 30, 2015, section 13031(a)(9) of the Consolidated Omni-
bus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) shall 
be applied and administered— 
(1) in subparagraph (A), by substituting ‘‘0.3464’’ for ‘‘0.21’’; 
and 
(2) in subparagraph (B)(i), by substituting ‘‘0.3464’’ for 
‘‘0.21’’. 
(b) FEES FOR PERIOD FROM OCTOBER 1, 2016, TO SEPTEMBER 
30, 2019.—For the period beginning on October 1, 2016, and ending 
on September 30, 2019, section 13031(a)(9) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) 
shall be applied and administered— 
(1) in subparagraph (A), by substituting ‘‘0.1740’’ for ‘‘0.21’’; 
and 
(2) in subparagraph (B)(i), by substituting ‘‘0.1740’’ for 
‘‘0.21’’. 
SEC. 263. TIME FOR REMITTING CERTAIN MERCHANDISE PROCESSING 
FEES. 
(a) IN GENERAL.—Notwithstanding any other provision of law, 
any fees authorized under paragraphs (9) and (10) of section 
13031(a) of the Consolidated Omnibus Budget Reconciliation Act 
of 1985 (19 U.S.C. 58c(a) (9) and (10)) with respect to processing 
merchandise entered on or after October 1, 2012, and before 
November 12, 2012, shall be paid not later than September 25, 
2012, in an amount equivalent to the amount of such fees paid 
by the person responsible for such fees with respect to merchandise 
entered on or after October 1, 2011, and before November 12, 
2011, as determined by the Secretary of the Treasury. 
(b) RECONCILIATION OF MERCHANDISE PROCESSING FEES.— 
(1) IN GENERAL.—Not later than December 12, 2012, the 
Secretary of the Treasury shall reconcile the fees paid pursuant 
to subsection (a) with the fees for services actually provided 
on or after October 1, 2012, and before November 12, 2012. 
(2) REFUNDS OF OVERPAYMENTS.— 
(A) After making the reconciliation required under 
paragraph (1), the Secretary of the Treasury shall refund 
with interest any overpayment of such fees made under 
subsection (a) and make proper adjustments with respect 
to any underpayment of such fees. 
(B) No interest may be assessed with respect to any 
such underpayment that was based on the amount of fees 
Deadlines. 
19 USC 58c note. 
19 USC 58c note. 
42 USC 1320c 
note. 
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125 STAT. 427 
PUBLIC LAW 112–40—OCT. 21, 2011 
LEGISLATIVE HISTORY—H.R. 2832: 
CONGRESSIONAL RECORD, Vol. 157 (2011): 
Sept. 7, considered and passed House. 
Sept. 20–22, considered and passed Senate, amended. 
Oct. 12, House concurred in Senate amendment. 
paid for merchandise entered on or after October 1, 2012, 
and before November 12, 2012. 
Approved October 21, 2011. 
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