98 STAT. 1316
PUBLIC LAW 98-378—AUG. 16, 1984 PERIODIC REVIEW OF EFFECTIVENESS OF STATE PROGRAMS; MODIFICATION OF PENALTY
42 USC 652.
Infra. 42 USC 602.
42 USC 603. 42 USC 651. Supra.
S E C 9. (a)(1) Section 452(a)(4) of the Social Security Act is amended by striking out "not less often than annually" and inserting in lieu thereof "not less often than once every three years (or not less often than annually in the case of any State to which a reduction is being applied under section 403(h)(1), or which is operating under a corrective action plan in accordance with section 403(h)(2))". (2) Section 402(a)(27) of such Act is amended by striking out "operate a child support program in conformity with such plan" and inserting in lieu thereof "operates a child support program in substantial compliance with such plan". (b) Section 403(h) of such Act is amended to read as follows: "(h)(1) Notwithstanding any other provision of this Act, if a State's program operated under part D is found as a result of a review conducted under section 452(a)(4) not to have complied substantially with the requirements of such part for any quarter beginning after September 30, 1983, and the Secretary determines that the State's program is not complying substantially with such requirements at the time such finding is made, the amounts otherwise payable to the State under this part for such quarter and each subsequent quarter, prior to the first quarter throughout which the State program is found to be in substantial compliance with such requirements, shall be reduced (subject to paragraph (2)) by— "(A) not less than one nor more than two percent, or "(B) not less than two nor more than three percent, if the finding is the second consecutive such finding made as a result of such a review, or "(C) not less than three nor more than five percent, if the finding is the third or a subsequent consecutive such finding made as a result of such a review. "(2)(A) The reductions required under paragraph (1) shall be suspended for any quarter if^ "(i) the State submits a corrective action plan, within a period prescribed by the Secretary following notice of the finding under paragraph (1), which contains steps necessary to achieve substantial compliance within a time period which the Secretary finds to be appropriate; "(ii) the Secretary approves such corrective action plan (and any amendments thereto) as being sufficient to achieve substantial compliance; and "(iii) the Secretary finds that the corrective action plan (and any amendment thereto approved by the Secretary under clause (ii)), is being fully implemented by the State and that the State is progressing in accordance with the timetable contained in the plan to achieve substantial compliance with such requirements. "(B) A suspension of the penalty under subparagraph (A) shall continue until such time as the Secretary determines that— "(i) the State has achieved substantial compliance, "(ii) the State is no longer implementing its corrective action plan, or "(iii) the State is implementing or has implemented its corrective action plan but has failed to achieve substantial compliance within the appropriate time period (as specified in subparagraph (A)(i)).