Page:United States Statutes at Large Volume 103 Part 3.djvu/390

 103 STAT. 2458 PUBLIC LAW 101-239—DEC. 19, 1989 "(5) the period, after the completion of the reviews required by paragraphs (1) and (2) of subsection (b) and the resolution by the Quality Control Review Panel of any difference cases ap- pealed by a State, within which the Secretary is to notify the State of the error rate of the State for the fiscal year involved; and "(6) the period within which the Secretary is to notify a State of any disallowance, " (i) PAYMENT OF DISALLOWANCES. — "(1) PAYMENT OPTIONS. —Within 45 days after the date a State is notified of a disallowance pursuant to subsection (g), the State shall, at the option of the State— "(A) pay the Secretary the amount of the disallowance; or Contracts. "(B) enter into an agreement with the Secretary under which the State will make quarterly pa3anents to the Sec- retary over a period not to exceed 30 months beginning not later than the first quarter beginning after the date the State receives the notice, in amounts sufficient to repay the disallowance with interest by the end of such period. "(2) AUTHORITY TO ADJUST STATE MATCHING PAYMENTS. —I f a State fails to pay the smiount of a disallowance imposed on the State, in the manner required by the applicable subparagraph of paragraph (1), the Secretary shall reduce the amount to be paid to the State under section 403(a) by amounts sufficient to recover the amount of the disallowance with interest. "(3) INTEREST ON UNPAID DISALLOWANCES. — «I "(A) RATE OF INTEREST.—Interest on the unpaid amount of a disallowance shall accrue at the overpayment rate established under section 6621(a)(l) of the Internal Revenue Code of 1986. "(B) ACCRUAL OF INTEREST. — "(i) IN GENERAL.— Except as provided in clause (ii), interest on the unpaid amount oi a State's disallowance ' shall accrue beginning 45 days after the date the State receives notice of the disallowance. "(ii) EXCEPTION. — If the State appeals the imposition of a disallowance under this section to the Depart- x^. mental Appeals Board and the Board does not decide ' the appeal within 90 days after the date of the State's notice of appeal, interest shall not accrue on the unpaid amount of the disallowance during the period begin- ning on such 90th day and ending on the date of the Board's final decision on the appeal, except to the extent that the Board finds that the State caused or requested the delay, "(j) ADMINISTRATIVE REVIEW OF DISALLOWANCES. — "(1) IN GENERAL. —Within 60 days after the date a State ' receives notice of a disallowance imposed under this section, the State may appeed the imposition of the disallowance, in whole or in part, to the Departmental Appeals Board established in the Department of Health and Human Services, by filing an appeal with the Board. (2) PROCEDURAL RULES. —The Board shall consider a State's appeal on the basis of such documentation sis the State may submit and as the Board may require to support the final decision of the Board. In deciding whether to uphold a disallow- ance or any portion thereof, the Board shall conduct a thorough

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