P.L. 112–40, Approved October 21, 2011 (125 Stat. 401)

SEC. 251. [42 U.S.C. 503 note]  MANDATORY PENALTY ASSESSMENT ON FRAUD CLAIMS.

(b) Application to Federal Payments.—

(1)  In general.—As a condition for administering any unemployment compensation program of the United States (as defined in paragraph (2)) as an agent of the United States, if the State determines that an erroneous payment was made by the State to an individual under any such program due to fraud committed by such individual, the State shall assess a penalty on such individual and deposit any such penalty received in the same manner as the State assesses and deposits such penalties under provisions of State law implementing section 303(a)(11) of the Social Security Act, as added by subsection (a).

(2)  Definition.—For purposes of this subsection, the term “unemployment compensation program of the United States” means—

(A)  unemployment compensation for Federal civilian employees under subchapter I of chapter 85 of title 5, United States Code;

(B)  unemployment compensation for 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 Emergency Assistance Act (42 U.S.C. 5177(a)); (E) any Federal temporary extension of unemployment compensation;

(E)  any Federal temporary extension of unemployment compensation;

(F)  any Federal program which increases the weekly amount of unemployment compensation payable to individuals

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

SEC. 253. [42 U.S.C. 653a note]  REPORTING OF REHIRED EMPLOYEES TO THE DIRECTORY OF NEW HIRES.

(b)  Effective date.—

(1)  In general.—Subject to paragraph (2), the amendments made by this section shall take effect 6 months after the date of the enactment of this Act.

(2)  Compliance transition period.—If the Secretary of Health and Human Services determines that State legislation (other than legislation appropriating funds) is required in order for a State plan under part D of title IV of the Social Security Act to meet the additional requirement imposed by the amendment made by subsection (a), the plan shall not be regarded as failing to meet such requirement before the first day of the second calendar quarter beginning after the close of the first regular session of the State legislature that begins after 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.