Exemption for noncontiguous States

(A) Definition of noncontiguous State (i) In general In this paragraph, the term “noncontiguous State” means a State that is not 1 of the contiguous 48 States or the District of Columbia. (ii) Exclusions In this paragraph, the term “noncontiguous State” does not include Guam or the Virgin Islands of the United States.

(B) Exemption Subject to subparagraph (D), the Secretary may exempt individuals in a noncontiguous State from compliance with the requirements of paragraph (2) if— (i) the State agency submits to the Secretary a request for that exemption, made in such form and at such time as the Secretary may require, and including the information described in subparagraph (C); and (ii) the Secretary determines that based on that request, the State agency is demonstrating a good faith effort to comply with the requirements of paragraph (2).

(C) Good faith effort determination In determining whether a State agency is demonstrating a good faith effort for purposes of subparagraph (B)(ii), the Secretary shall consider— (i) any actions taken by the State agency toward compliance with the requirements of paragraph (2); (ii) any significant barriers to or challenges in meeting those requirements, including barriers or challenges relating to funding, design, development, procurement, or installation of necessary systems or resources; (iii) the detailed plan and timeline of the State agency for achieving full compliance with those requirements, including any milestones (as defined by the Secretary); and (iv) any other criteria determined appropriate by the Secretary.

(D) Duration of exemption (i) In general An exemption granted under subparagraph (B) shall expire not later than December 31, 2028 , and may not be renewed beyond that date. (ii) Early termination The Secretary may terminate an exemption granted under subparagraph (B) prior to the expiration date of that exemption if the Secretary determines that the State agency— (I) has failed to comply with the reporting requirements described in subparagraph (E); or (II) based on the information provided pursuant to subparagraph (E), failed to make continued good faith efforts toward compliance with the requirements of this subsection.

(E) Reporting requirements A State agency granted an exemption under subparagraph (B) shall submit to the Secretary— (i) quarterly progress reports on the status of the State agency in achieving the milestones toward full compliance described in subparagraph (C)(iii); and (ii) information on specific risks or newly identified barriers or challenges to full compliance, including the plan of the State agency to mitigate those risks, barriers, or challenges.