Ill STAT. 616 PUBLIC LAW 105-33—AUG. 5, 1997 required by the preceding sentence from its own funds, the Secretary may reduce the grant payable to the State under section 403(a)(1) for the fiscal year that follows such succeeding fiscal year by an amount equal to the sum of— "(A) not more than 2 percent of the State family assistance grant; and "(B) the amount of the expenditure required by the preceding sentence.", (k) ELIMINATION OF CERTAIN REASONABLE CAUSE EXCEP- TIONS.— Section 409(b)(2) (42 U.S.C. 609(b)(2)) is amended by striking "(7) or (8)" and inserting "(6), (7), (8), (10), or (12)". (1) CLARIFICATION OF WHAT IT MEANS TO CORRECT A VIOLA- TION. —Section 409(c) (42 U.S.C. 609(c)) is amended— (1) in each of subparagraphs (A) and (B) of paragraph (1), by inserting "or discontinue, as appropriate," after "correct"; (2) in paragraph (2)— (A) in the heading, by inserting "OR DISCONTINUING" after "CORRECTING"; and (B) by inserting "or discontinues, as appropriate" after "corrects"; and - (3) in paragraph (3)— (A) in the heading, by inserting "OR DISCONTINUE" after "C ORRECT"; and (B) by inserting "or discontinue, as appropriate," before "the violation". (m) CERTAIN PENALTIES NOT AVOIDABLE THROUGH CORRECTIVE COMPLIANCE PLANS.— Section 409(c)(4) (42 U.S.C. 609(c)(4)) is amended to read as follows: "(4) INAPPLICABILITY TO CERTAIN PENALTIES. —This subsection shall not apply to the imposition of a penalty against a State under paragraph (6), (7), (8), (10), or (12) of subsection (a). ". (n) FAILURE TO SATISFY MINIMUM PARTICIPATION RATES.— Section 409(a)(3) (42 U.S.C. 609(a)(3)) is amended— (1) in subparagraph (A), by striking "not more than"; and (2) in subparagraph (C), by inserting before the period the following: or if the noncompliance is due to extraordinary circumstsmces such as a natural disaster or regional recession. Reports. The Secretary shall provide a written report to Congress to justify any waiver or penalty reduction due to such extraordinary circumstances". SEC. 5507. DATA COLLECTION AND REPORTING. Section 411(a) (42 U.S.C. 611(a)) is amended— (1) in paragraph (1)— (A) in subparagraph (A)— (i) by striking clause (ii) and inserting the following: "(ii) Whether a child receiving such assistance or an adult in the family is receiving— "(I) Federal disability insurance benefits; "(II) benefits based on Federal disability status; "(III) aid under a State plan approved under title XIV (as in effect without regard to the amendment made by section 301 of the Social Security Amendments of 1972));
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