314
the State will insure continuing compliance with
this part.
‘‘(B) 60-DAY PERIOD TO PROPOSE A COR-
RECTIVE COMPLIANCE PLAN.—During the 60-
day period that begins on the date the State re-
ceives a notice provided under subparagraph
(A) with respect to a violation, the State may
submit to the Federal Government a corrective
compliance plan to correct the violation.
‘‘(C) CONSULTATION
ABOUT
MODIFICA-
TIONS.—During the 60-day period that begins
with the date the Secretary receives a corrective
compliance plan submitted by a State in accord-
ance with subparagraph (B), the Secretary may
consult with the State on modifications to the
plan.
‘‘(D) ACCEPTANCE OF PLAN.— A correc-
tive compliance plan submitted by a State in ac-
cordance with subparagraph (B) is deemed to
be accepted by the Secretary if the Secretary
does not accept or reject the plan during 60-day
period that begins on the date the plan is sub-
mitted.
‘‘(2) EFFECT
OF
CORRECTING
VIOLATION.—
The Secretary may not impose any penalty under
315
subsection (a) with respect to any violation covered
by a State corrective compliance plan accepted by
the Secretary if the State corrects the violation pur-
suant to the plan.
‘‘(3) EFFECT OF FAILING TO CORRECT VIOLA-
TION.—The Secretary shall assess some or all of a
penalty imposed on a State under subsection (a)
with respect to a violation if the State does not, in
a timely manner, correct the violation pursuant to a
State corrective compliance plan accepted by the
Secretary.
‘‘(4) INAPPLICABILITY TO FAILURE TO TIMELY
REPAY A FEDERAL LOAN FUND FOR A STATE WEL-
FARE PROGRAM.—This subsection shall not apply to
the imposition of a penalty against a State under
subsection (a)(6).
‘‘(d) LIMITATION ON AMOUNT OF PENALTY.—
‘‘(1) IN GENERAL.—In imposing the penalties
described in subsection (a), the Secretary shall not
reduce any quarterly payment to a State by more
than 25 percent.
‘‘(2) CARRYFORWARD OF UNRECOVERED PEN-
ALTIES.—To the extent that paragraph (1) of this
subsection prevents the Secretary from recovering
during a fiscal year the full amount of penalties im-
316
posed on a State under subsection (a) of this section
for a prior fiscal year, the Secretary shall apply any
remaining amount of such penalties to the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year.
‘‘SEC. 410. APPEAL OF ADVERSE DECISION.
‘‘(a) IN GENERAL.—Within 5 days after the date the
Secretary takes any adverse action under this part with
respect to a State, the Secretary shall notify the chief ex-
ecutive officer of the State of the adverse action, including
any action with respect to the State plan submitted under
section 402 or the imposition of a penalty under section
409.
‘‘(b) ADMINISTRATIVE REVIEW.—
‘‘(1) IN GENERAL.—Within 60 days after the
date a State receives notice under subsection (a) of
an adverse action, the State may appeal the action,
in whole or in part, to the Departmental Appeals
Board established in the Department of Health and
Human Services (in this section referred to as the
‘Board’) by filing an appeal with the Board.
‘‘(2) PROCEDURAL
RULES.—The Board shall
consider an appeal filed by a State under paragraph
(1) on the basis of such documentation as the State
may submit and as the Board may require to sup-
317
port the final decision of the Board. In deciding
whether to uphold an adverse action or any portion
of such an action, the Board shall conduct a thor-
ough review of the issues and take into account all
relevant evidence. The Board shall make a final de-
termination with respect to an appeal filed under
paragraph (1) not less than 60 days after the date
the appeal is filed.
‘‘(c) JUDICIAL REVIEW OF ADVERSE DECISION.—
‘‘(1) IN GENERAL.—Within 90 days after the
date of a final decision by the Board under this sec-
tion with respect to an adverse action taken against
a State, the State may obtain judicial review of the
final decision (and the findings incorporated into the
final decision) by filing an action in—
‘‘(A) the district court of the United States
for the judicial district in which the principal or
headquarters office of the State agency is lo-
cated; or
‘‘(B) the United States District Court for
the District of Columbia.
‘‘(2) PROCEDURAL RULES.—The district court
in which an action is filed under paragraph (1) shall
review the final decision of the Board on the record
established in the administrative proceeding, in ac-
318
cordance with the standards of review prescribed by
subparagraphs (A) through (E) of section 706(2) of
title 5, United States Code. The review shall be on
the basis of the documents and supporting data sub-
mitted to the Board.
‘‘SEC. 411. DATA COLLECTION AND REPORTING.
‘‘(a) QUARTERLY REPORTS BY STATES.—
‘‘(1) GENERAL REPORTING REQUIREMENT.—
‘‘(A) CONTENTS OF REPORT.—Each eligi-
ble State shall collect on a monthly basis, and
report to the Secretary on a quarterly basis, the
following disaggregated case record information
on the families receiving assistance under the
State program funded under this part:
‘‘(i) The county of residence of the
family.
‘‘(ii) Whether a child receiving such
assistance or an adult in the family is dis-
abled.
‘‘(iii) The ages of the members of
such families.
‘‘(iv) The number of individuals in the
family, and the relation of each family
member to the youngest child in the fam-
ily.
319
‘‘(v) The employment status and earn-
ings of the employed adult in the family.
‘‘(vi) The marital status of the adults
in the family, including whether such
adults have never married, are widowed, or
are divorced.
‘‘(vii) The race and educational status
of each adult in the family.
‘‘(viii) The race and educational sta-
tus of each child in the family.
‘‘(ix) Whether the family received sub-
sidized housing, medical assistance under
the State plan approved under title XIX,
food stamps, or subsidized child care, and
if the latter 2, the amount received.
‘‘(x) The number of months that the
family has received each type of assistance
under the program.
‘‘(xi) If the adults participated in, and
the number of hours per week of participa-
tion in, the following activities:
‘‘(I) Education.
‘‘(II) Subsidized private sector
employment.
‘‘(III) Unsubsidized employment.
320
‘‘(IV) Public sector employment,
work experience, or community serv-
ice.
‘‘(V) Job search.
‘‘(VI) Job skills training or on-
the-job training.
‘‘(VII) Vocational education.
‘‘(xii) Information necessary to cal-
culate participation rates under section
407.
‘‘(xiii) The type and amount of assist-
ance received under the program, including
the amount of and reason for any reduc-
tion of assistance (including sanctions).
‘‘(xiv) Any amount of unearned in-
come received by any member of the fam-
ily.
‘‘(xv) The citizenship of the members
of the family.
‘‘(xvi) From a sample of closed cases,
whether the family left the program, and if
so, whether the family left due to—
‘‘(I) employment;
‘‘(II) marriage;
321
‘‘(III) the prohibition set forth in
section 408(a)(8);
‘‘(IV) sanction; or
‘‘(V) State policy.
‘‘(B) USE OF ESTIMATES.—
‘‘(i) AUTHORITY.—A State may com-
ply with subparagraph (A) by submitting
an estimate which is obtained through the
use of scientifically acceptable sampling
methods approved by the Secretary.
‘‘(ii) SAMPLING
AND
OTHER
METH-
ODS.—The Secretary shall provide the
States with such case sampling plans and
data collection procedures as the Secretary
deems necessary to produce statistically
valid estimates of the performance of State
programs funded under this part. The Sec-
retary may develop and implement proce-
dures for verifying the quality of data sub-
mitted by the States.
‘‘(2) REPORT ON USE OF FEDERAL FUNDS TO
COVER ADMINISTRATIVE COSTS AND OVERHEAD.—
The report required by paragraph (1) for a fiscal
quarter shall include a statement of the percentage
of the funds paid to the State under this part for
322
the quarter that are used to cover administrative
costs or overhead.
‘‘(3) REPORT
ON
STATE
EXPENDITURES
ON
PROGRAMS FOR NEEDY FAMILIES.—The report re-
quired by paragraph (1) for a fiscal quarter shall in-
clude a statement of the total amount expended by
the State during the quarter on programs for needy
families.
‘‘(4) REPORT ON NONCUSTODIAL PARENTS PAR-
TICIPATING IN WORK ACTIVITIES.—The report re-
quired by paragraph (1) for a fiscal quarter shall in-
clude the number of noncustodial parents in the
State who participated in work activities (as defined
in section 407(d)) during the quarter.
‘‘(5) REPORT
ON
TRANSITIONAL
SERVICES.—
The report required by paragraph (1) for a fiscal
quarter shall include the total amount expended by
the State during the quarter to provide transitional
services to a family that has ceased to receive assist-
ance under this part because of employment, along
with a description of such services.
‘‘(6) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary to de-
fine the data elements with respect to which reports
are required by this subsection.
323
‘‘(b) ANNUAL REPORTS TO THE CONGRESS BY THE
SECRETARY.—Not later than 6 months after the end of
fiscal year 1997, and each fiscal year thereafter, the Sec-
retary shall transmit to the Congress a report describ-
ing—
‘‘(1) whether the States are meeting—
‘‘(A) the participation rates described in
section 407(a); and
‘‘(B) the objectives of—
‘‘(i) increasing employment and earn-
ings of needy families, and child support
collections; and
‘‘(ii) decreasing out-of-wedlock preg-
nancies and child poverty;
‘‘(2) the demographic and financial characteris-
tics of families applying for assistance, families re-
ceiving assistance, and families that become ineli-
gible to receive assistance;
‘‘(3) the characteristics of each State program
funded under this part; and
‘‘(4) the trends in employment and earnings of
needy families with minor children living at home.
‘‘SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY IN-
DIAN TRIBES.
‘‘(a) GRANTS FOR INDIAN TRIBES.—
324
‘‘(1) TRIBAL FAMILY ASSISTANCE GRANT.—
‘‘(A) IN
GENERAL.—For each of fiscal
years 1997, 1998, 1999, and 2000, the Sec-
retary shall pay to each Indian tribe that has
an approved tribal family assistance plan a trib-
al family assistance grant for the fiscal year in
an amount equal to the amount determined
under subparagraph (B), and shall reduce the
grant payable under section 403(a)(1) to any
State in which lies the service area or areas of
the Indian tribe by that portion of the amount
so determined that is attributable to expendi-
tures by the State.
‘‘(B) AMOUNT DETERMINED.—
‘‘(i) IN GENERAL.—The amount de-
termined under this subparagraph is an
amount equal to the total amount of the
Federal payments to a State or States
under section 403 (as in effect during such
fiscal year) for fiscal year 1994 attrib-
utable to expenditures (other than child
care expenditures) by the State or States
under parts A and F (as so in effect) for
fiscal year 1994 for Indian families resid-
ing in the service area or areas identified