103 STAT. 2456 PUBLIC LAW 101-239—DEC. 19, 1989 f'i "(i) results in the declaration by the President or the •'^' Governor of the State of a state of emergency or major disaster; and "(ii) directly affects the State agency's ability to t^t make correct payments under the State plan approved under this part; or ,-..,, "(E) the failure of a family to submit monthly reports to the State pursuant to section 402(a)(14), if the failure did not affect the amount of the payment. "(4) CERTAIN PAYMENTS CONSIDERED ERRONEOUS.— Notwith- standing any other provision of this section, a payment shall be considered an erroneous payment if the payment is made to a family— "(A) which has failed without good cause to assign sup- port rights as required by section 402(a)(26); or "(B) any member of which is a recipient of aid under a State plan approved under this part and does not have a social security account number (unless an application for a social security account number for the family member has been filed within 30 days after the date of application for such aid). " (d) DETERMINATION OF ERROR RATES.— "(1) IN GENERAL.—The Secretary shall, in accordance with this subsection, determine an error rate for each State for the fiscal year involved, based on the reviews under paragraphs (1) and (2) of subsection (b) and the decisions of the Quality Control Review Panel under subsection (b)(5). "(2) ERROR RATE FORMULA.— Except as provided in paragraph (3), the State's error rate for a fiscal year is— "(A) the ratio of— "(i) the erroneous payments of the State for the fiscal year; to "(ii) the total payments of aid under the State plan approved under this part for the fiscal year; reduced by "(B) the amount by which— "(i) the national average underpayment rate for the fiscal year; exceeds
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"(ii) the underpayment rate of the State for the fiscal year. "(3) APPLICATION OF REDUCTION TO SUBSEQUENT FISCAL YEAR. — At the request of a State, the Secretary shall apply the reduc- tion described in paragraph (2)(B) in determining the State's error rate for either of the 2 following fiscal years instead of in determining the State's error rate for the fiscal year to which the reduction would otherwise apply. " (e) NOTIFICATION TO STATES OF ERROR RATES.— The Secretary shall notify each State of the error rate of the State determined under subsection (d), within the time period prescribed in regula- tions issued under subsection (h)(5). "(f) IMPOSITION OF DISALLOWANCES. —If a State's error rate for a fiscal year exceeds the national average error rate for the fiscal ^ year, the Secretary shall impose a disallowance on the State for the fiscal year in an amount equal to— "(1) the product of— "(A) the State's total payments of aid to families with dependent children for the fiscal year;
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