PUBLIC LAW 104-193—AUG. 22, 1996 110 STAT. 2145 requirements of section 407(a) for the fiscal year, 75 percent) reduced (if appropriate) in accordance with subparagraph (C)(ii). "(iii) HISTORIC STATE EXPENDITURES.—The term
- historic State expenditures' means, with respect to
a State, the lesser of— "(I) the expenditures by the State under parts A and F (as in effect during fiscal year 1994) for fiscal year 1994; or "(11) the amount which bears the same ratio to the amount described in subclause (I) as— "(aa) the State family assistance grant, plus the total amount required to be paid to the State under former section 403 for fiscal year 1994 with respect to amounts expended by the State for child care under subsection (g) or (i) of section 402 (as in effect during fiscal year 1994); bears to "(bb) the total amount required to be paid to the State under former section 403 (as in effect during fiscal year 1994) for fiscal year 1994. Such term does not include any expenditures under the State plan approved under part A (as so in effect) on behalf of individuals covered by a tribal family assistance plan approved under section 412, as determined by the Secretary. "(iv) EXPENDITURES BY THE STATE. — The term 'expenditures by the State' does not include— "(I) any expenditures from amounts made available by the Federal Government; "(11) any State funds expended for the medicaid program under title XIX; "(III) any State funds which are used to match Federal funds; or "(IV) any State funds which are expended as a condition of receiving Federal funds under Federal programs other than under this part. Notwithstanding subclause (IV) of the preceding sentence, such term includes expenditures by a State for child care in a fiscal year to the extent that the total amount of such expenditures does not exceed an amount equal to the amount of State expenditures in fiscal year 1994 or 1995 (whichever is greater) that equal the non-Federal share for the programs described in section 418(a)(1)(A). "(8) SUBSTANTIAL NONCOMPLIANCE OF STATE CHILD SUPPORT ENFORCEMENT PROGRAM WITH REQUIREMENTS OF PART D. — "(A) IN GENERAL.— If a State 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, and the Secretary determines that the program is not complying substantially with such requirements at the time the finding is made, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the quarter and each subsequent quarter that ends before the 1st quarter
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