following: (20) Failure to conduct outreach to inform potentially eligible recipients of assistance of suspension of durational limit on assistance If the Secretary determines that a State to which a grant is made under section 403 in a fiscal year has violated section 408(a)(16) during the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 5 percent of the State family assistance grant. . (c) State plan required To include description of how potentially eligible recipients will be informed of suspension of time limits during recession Section 402(a)(1)(B) ( 42 U.S.C. 602(a)(1)(B) ), as amended by section 906(c) of this title, is amended by adding at the end the following: (vii) The document shall describe how the State intends to inform potentially eligible recipients of assistance under the program of the suspension of durational limits on the assistance during a high unemployment period with respect to the State. . (d) High unemployment period defined Section 419 ( 42 U.S.C. 619 ) is amended by adding at the end the following: (6) High unemployment period defined The term high unemployment period means, with respect to a State, a period of 1 or more consecutive months if the average rate of total unemployment in the State (seasonally adjusted) for the period consisting of the then most recent 3 months for which data for all States are published equals or exceeds 6.5 percent. . 708. Requirement that States use merit-based system in administration of TANF programs (a) Program requirement Section 408(a) ( 42 U.S.C. 608(a) ), as amended by sections 905(d)(1), 906(b)(1), and 907(b)(1) of this title, is amended by adding at the end the following: (17) Requirement to use merit-based system in administering program A State to which a grant is made under section 403 shall establish and maintain personnel standards through a merit-based system, in administering the State program funded under this part and any