; (II) is a child, grandchild, stepgrandchild, or other first-degree, second-degree, third-degree, fourth-degree, or fifth-degree relative of the individual or the individual's spouse; and (III) has a disability, as defined in section 3 of the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12102 )). (ii) Determination to be made by State The determination of whether an individual meets the criteria described in clause (i) shall be made by the State. . (2) Penalty Section 409(a) of the Social Security Act ( 42 U.S.C. 609(a) ), as previously amended by this section, is amended by adding at the end the following new paragraph: (20) Penalty for failure to disregard income, assets, and resources for older caregiver relatives 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)(14) 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 3 percent of the State family assistance grant. . (h) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall take effect on the first day of the first fiscal year that begins after the date of enactment of this Act. (2) Delay permitted (A) In general Before the date described in subparagraph (B), a State plan under title IV of the Social Security Act shall not be regarded as failing to comply with an additional requirement imposed on the plan by this section if the Secretary of Health and Human Services determines that such additional requirement— (i) requires State legislation (other than legislation appropriating funds) in order for the plan to meet such additional requirement