EXTENSION OF QUALITY CONTROL PENALTY MORATORIUM.

SEC. 609. EXTENSION OF QUALITY CONTROL PENALTY MORATORIUM. (a) Moratorium Extended.— Section 403 of the Social Security Act (as amended by section 201(c)(2) of this Act) is further amended by adding at the end the following new subsection: “(m) (1) During the 12-month period beginning on July 1, 1988 (in this subsection referred to as the ‘moratorium period’), the Secretary shall not impose any reductions in payments to States purau-102 STAT. 2425ant to subsection (i) (or prior regulations), or pursuant to any comparable provision of law relating to the programs under this part in Puerto Rico, Guam, the Virgin Islands, American Samoa, or the Northern Mariana Islands. “(2) During the moratorium period— “(A) the Secretary and the States shall continue to operate the quality control systems in effect under this part, and to calculate the error rates under the provisions referred to in paragraph (1), including the process of requesting and reviewing waivers; and “(B) the Departmental Grant Appeals Board shall, notwithstanding paragraph (1), review disallowances for fiscal year 1981 and thereafter and hear appeals with respect thereto (but collection of disallowances owed as a result of Departmental Grant Appeals Board decisions shall not occur).”. (b) Conforming Amendments.— (1) Subparagraph (A) of section 12301(c)(1) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99–272) is amended by striking “title IV–A and” and inserting in lieu thereof “title”. (2) Paragraph (2) of section 12301(c) of such Act is amended by inserting “under title XIX” before “, and shall reduce payments”. (c) Effective Date.— The amendments made by subsections (a) and (b) shall take effect on July 1, 1988.