; and (B) The making of quarterly reports to the Secretary of Labor (in such form as the Secretary of Labor may require) describing the results of the procedures under subparagraph (A); and (14) The establishment of administrative penalties for misclassifying employees, or paying unreported wages to employees without proper recordkeeping, for unemployment compensation purposes. . (b) Review of auditing programs The Secretary of Labor shall include, in the Department of Labor’s system for measuring the performance of States in conducting unemployment compensation tax audits, a specific measure of the effectiveness of States in identifying the underreporting of wages and the underpayment of unemployment compensation contributions (including the effectiveness of States in identifying instances of such underreporting or underpayments despite the absence of canceled checks, original time sheets, or other similar documentation). (c) Effective date (1) In general Except as provided in paragraph (2), the amendments made by subsection (a) shall take effect 12 months after the date of enactment of this Act. (2) Exception If the Secretary of Labor finds that legislation is necessary for the unemployment compensation law of a State to comply with the amendments made by subsection (a), such amendments shall not apply with respect to such law until the later of— (A) the day after the close of the first regular session of the legislature of such State that begins after the date of enactment of this Act