113 STAT. 1501A-286 PUBLIC LAW 106-113—APPENDIX D SEC. 806. REDUCTION OF SET-ASIDE OF PORTION OF WELFARE-TO- WORK FUNDS FOR SUCCESSFUL PERFORMANCE BONUS. (a) IN GENERAL.—Section 403(a)(5)(E) of the Social Security Act (42 U.S.C. 603(a)(5)(E)) is amended in each of clauses (iv) and (vi) by striking "$100,000,000" and inserting "$50,000,000". (b) CONFORMING AMENDMENTS.— (1) Section 403(a)(5)(F) of such Act (42 U.S.C. 603(a)(5)(F)) is amended by inserting "$1,500,000" before "of the amount so SDecified". (2) Section 403(a)(5)(G) of such Act (42 U.S.C. 603(a)(5)(G)) is amended by inserting "$900,000" before "of the amount so snecified" (3) Section 403(a)(5)(H) of such Act (42 U.S.C. 603(a)(5)(H)) is amended by inserting "$300,000" before "of the amount so SDecified" (4) Section 403(a)(5)(I)(i) of such Act (42 U.S.C. 603(a)(5)(I)(i)) is amended by striking "$1,500,000,000 " and all that follows and inserting "for grants under this paragraph— " (I) $1,500,000,000 for fiscal year 1998; and " (II) $1,450,000,000 for fiscal year 1999. ". (c) No OUTLAY UNTIL FY2001.— Section 403(a)(5)(E)(i) of such Act (42 U.S.C. 603(a)(5)(E)(i)) is amended— (1) by striking "make" and insert "award"; and (2) by inserting ", but shall not make any outlay to pay any such grant before October 1, 2000" before the period. SEC. 807. ALTERNATIVE PENALTY PROCEDURE RELATING TO STATE DISBURSEMENT UNITS. (a) IN GENERAL.—Section 455(a) of the Social Security Act (42 U.S.C. 655(a)) is amended by adding at the end the following: "(5)(A)(i) If— "(I) the Secretary determines that a State plan under section 454 would (in the absence of this paragraph) be disapproved for the failure of the State to comply with subparagraphs (A) and (B)(i) of section 454(27), and that the State has made and is continuing to make a good faith effort to so comply; and "(II) the State has submitted to the Secretary, not later than April 1, 2000, a corrective compliance plan that describes how, by when, and at what cost the State will achieve such compliance, which has been approved by the Secretary, then the Secretary shall not disapprove the State plan under section 454, and the Secretary shall reduce the amount otherwise payable to the State under paragraph (1)(A) of this subsection for the fiscal year by the penalty amount. "(ii) All failures of a State during a fiscal year to comply with any of the requirements of section 454B shall be considered a single failure of the State to comply with subparagraphs (A) and (B)(i) of section 454(27) during the fiscal year for purposes of this paragraph. "(B) In this paragraph: "(i) The term 'penalty amount' means, with respect to a failure of a State to comply with subparagraphs (A) and (B)(i) of section 454(27)— "(I) 4 percent of the penalty base, in the case of the 1st fiscal year in which such a failure by the State occurs (regardless of whether a penalty is imposed in that fiscal
�
