Ill STAT. 614 PUBLIC LAW 105-33—AUG. 5, 1997 (e) ELIMINATION OF MEANINGLESS LANGUAGE. —Section 409(a)(7)(B)(ii) (42 U.S.C. 609(a)(7)(B)(ii)) is amended by striking "reduced (if appropriate) in accordance with subparagraph (C)(ii)". (1) CLARIFICATION OF SOURCE OF DATA TO BE USED IN DETER- MINING HISTORIC STATE EXPENDITURES. —Section 409(a)(7)(B) (42 U.S.C. 609(a)(7)(B)) is amended by adding at the end the following: "(v) SOURCE OF DATA.—In determining expenditures by a State for fiscal years 1994 and 1995, the Secretary shall use information which was reported by the State on ACF Form 231 or (in the case of expenditures under part F) ACF Form 331, available as of the dates specified in clauses (ii) and (iii) of section 403(a)(l)(D).". (g) CONFORMING TITLE IV-A PENALTIES TO TITLE FV-D PERFORMANCE-BASED STANDARDS.— Section 409(a)(8) (42 U.S.C. 609(a)(8)) is amended to read as follows: "(8) NONCOMPLIANCE OF STATE CHILD SUPPORT ENFORCE- MENT PROGRAM WITH REQUIREMENTS OF PART D. — "(A) IN GENERAL.— I f the Secretary finds, with respect to a State's program under part D, in a fiscal year beginning on or after October 1, 1997— "(i)(I) on the basis of data submitted by a State pursuant to section 454(15)(B), or on the basis of the results of a review conducted under section 452(a)(4), that the State program failed to achieve the paternity establishment percentages (as defined in section 452(g)(2)), or to meet other performance measures that may be established by the Secretary; "(II) on the basis of the results of an audit or audits conducted under section 452(a)(4)(C)(i) that the State data submitted pursuant to section 454(15)(B) is incomplete or unreliable; or "(III) on the basis of the results of an audit or audits conducted under section 452(a)(4)(C) that a State failed to substantially comply with 1 or more of the requirements of part D; and "(ii) that, with respect to the succeeding fiscal year— "(I) the State failed to take sufficient corrective action to achieve the appropriate performance levels or compliance as described in subparagraph (A)(i);or "(II) the data submitted by the State pursuant to section 454(15)(B) is incomplete or unreliable; the amounts otherwise payable to the State under this part for quarters following the end of such succeeding fiscal year, prior to quarters following the end of the first quarter throughout which the State program has achieved the paternity establishment percentages or other performance measures as described in subparagraph (A)(i)(I), or is in substantial compliance with 1 or more of the requirements of part D as described in subparagraph (A)(i)(III), as appropriate, shall be reduced by the percentage specified in subparagraph (B). "(B) AMOUNT OF REDUCTIONS.— The reductions required under subparagraph (A) shall be— "(i) not less than 1 nor more than 2 percent;
�
