---
kind: "section"
citation: "45 C.F.R. § 261.55"
title: "45"
number: "261.55"
heading: "Under what circumstances will we reduce the amount of the penalty for not properly imposing penalties on individuals?"
url: "https://uscodex.org/cfr/45/261.55"
---

# §261.55. Under what circumstances will we reduce the amount of the penalty for not properly imposing penalties on individuals?

- (a) We will reduce the amount of the penalty based on the degree of the State's noncompliance.
- (b) In determining the size of any reduction, we will consider objective evidence of:
  - (1) Whether the State has established a control mechanism to ensure that the grants of individuals are appropriately reduced for refusing to engage in required work; and
  - (2) **The percentage of cases for which the grants have not been appropriately reduced.**

## Notes

### Authority

Authority: 42 U.S.C. 601, 602, 607, and 609; Pub. L. 109-171.

### Source

Source: 64 FR 17884, Apr. 12, 1999, unless otherwise noted.