PUBLIC LAW 105-33 —AUG. 5, 1997 111 STAT. 615 "(ii) not less than 2 nor more than 3 percent, if the finding is the 2nd consecutive finding made pursuant to subparagraph (A); or "(iii) not less than 3 nor more than 5 percent, if the finding is the 3rd or a subsequent consecutive such finding. "(C) DISREGARD OF NONCOMPLIANCE WHICH IS OF A TECHNICAL NATURE. — For purposes of this section and section 452(a)(4), a State determined as a result of an audit— "(i) to have failed to have substantially complied with 1 or more of the requirements of part D shall be determined to have achieved substantial compliance only if the Secretary determines that the extent of the noncompliance is of a technical nature which does not adversely affect the performance of the State's program under part D; or "(ii) to have submitted incomplete or unreliable data pursuant to section 454(15)(B) shall be determined to have submitted adequate data only if the Secretary determines that the extent of the incompleteness or unreliability of the data is of a technical nature which does not adversely affect the determination of the level of the State's paternity establishment percentages (as defined under section 452(g)(2)) or other performance measures that may be established by the Secretary.". (h) CORRECTION OF REFERENCE TO 5-YEAR LIMIT ON ASSIST- ANCE.—Section 409(a)(9) (42 U.S.C. 609(a)(9)) is amended by striking "408(a)(1)(B)" and inserting "408(a)(7)". (i) CORRECTION OF ERRORS IN PENALTY FOR FAILURE TO MEET MAINTENANCE OF EFFORT REQUIREMENT APPLICABLE TO THE CONTINGENCY FUND. —Section 409(a)(10) (42 U.S.C. 609(a)(10)) is amended— (1) by striking "the expenditures under the State program funded under this part for the fiscal year (excluding any amounts made available by the Federal Government)" and inserting "the qualified State expenditures (as defined in paragraph (7)(B)(i) (other than the expenditures described in subclause (I)(bb) of that paragraph)) under the State program funded under this part for the fiscal year"; (2) by inserting "excluding any amount expended by the State for child care under subsection (g) or (i) of section 402 (as in effect during fiscal year 1994) for fiscal year 1994," after "(as defined in paragraph (7)(B)(iii) of this subsection),"; and (3) by inserting "that the State has not remitted under section 403(b)(6)" before the period. (j) PENALTY FOR STATE FAILURE TO EXPEND ADDITIONAL STATE FUNDS TO REPLACE GRANT REDUCTIONS. —Section 409(a)(12) (42 U.S.C. 609(a)(12)) is amended— (1) in the heading— (A) by striking "FAILURE" and inserting "REQUIRE- MENT"; and (B) by striking "REDUCTIONS" and inserting "REDUC- TIONS; PENALTY FOR FAILURE TO DO SO"; and (2) by adding at the end the following: "If the State fails during such succeeding fiscal year to make the expenditure
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