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Notes

45 C.F.R. §§ 262.4–262.6

3 sections in range

§262.4. What happens if we determine that a State is subject to a penalty?

45 C.F.R. § 262.4

(a)
If we determine that a State is subject to a penalty, we will notify the State agency in writing, specifying which penalty we will impose and the reasons for the penalty. This notice will:
(1)
Specify the penalty provision at issue, including the penalty amount;
(2)
Specify the source of information and the reasons for our decision;
(3)
Invite the State to present its arguments if it believes that the information or method that we used were in error or were insufficient or that its actions, in the absence of Federal regulations, were based on a reasonable interpretation of the statute; and
(4)
Explain how and when the State may submit a reasonable cause justification under § 262.5 and/or corrective compliance plan under § 262.6.
(b)
Within 60 days of when it receives our notification, the State may submit a written response that:
(1)
Demonstrates that our determination is incorrect because our information or the method that we used in determining the violation or the amount of the penalty was in error or was insufficient, or that the State acted, in the absence of Federal rules, on a reasonable interpretation of the statute;
(2)
Demonstrates that the State had reasonable cause for failing to meet the requirement(s); and/or
(3)
Provides a corrective compliance plan, pursuant to § 262.6.
(c)
If we find that we determined the penalty erroneously, or that the State has adequately demonstrated that it had reasonable cause for failing to meet one or more requirements, we will not impose the penalty.
(d)
Reasonable cause and corrective compliance plans are not available for failing to repay a Federal loan; meet the basic MOE requirement; meet the Contingency Fund MOE requirement; expend additional State funds to replace adjusted SFAG reductions due to the imposition of one or more penalties listed in § 262.1; or maintain 80 percent, or 75 percent, as appropriate, basic MOE during a year in which the State receives a Welfare-to-Work grant.
(e)
(1)
If we request additional information from a State that we need to determine reasonable cause, the State must ordinarily provide such information within 30 days.
(2)
Under unusual circumstances, we may give the State an extension of the time to respond to our request.
(f)
(1)
(i)
We will notify the State in writing of our findings with respect to reasonable cause generally within 60 days of the date when we receive its response to our penalty notice (in accordance with paragraph (b) of this section).
(ii)
If the finding is negative and the State has not yet submitted a corrective compliance plan, it may do so in response to this notice in accordance with § 262.6.
(2)
We will notify the State of our decision regarding its corrective compliance plan in accordance with the provisions of § 262.6(g).
(g)
We will impose a penalty in accord with the provisions in § 262.1(c) after we make our final decision and the appellate process is completed, if applicable. If there is an appellate decision upholding the penalty, we will take the penalty and charge interest back to the date that we formally notified the Governor of the adverse action pursuant to § 262.7(a)(1).
Notes, amendments, and revision history

Authority

Authority: 31 U.S.C. 7501 et seq.; 42 U.S.C. 606, 609, and 610; Sec. 7102, Pub. L. 109-171, 120 Stat. 135; Sec. 4004, Pub. L. 112-96, 126 Stat. 197.

Source

Source: 64 FR 17890, Apr. 12, 1999, unless otherwise noted.

§262.5. Under what general circumstances will we determine that a State has reasonable cause?

45 C.F.R. § 262.5

(a)
We will not impose a penalty against a State if we determine that the State had reasonable cause for its failure. The general factors a State may use to claim reasonable cause include:
(1)
Natural disasters and other calamities (e.g., hurricanes, earthquakes, fire) whose disruptive impact was so significant as to cause the State's failure;
(2)
Formally issued Federal guidance that provided incorrect information resulting in the State's failure; or
(3)
Isolated problems of minimal impact that are not indicative of a systemic problem.
(b)
(1)
We will grant reasonable cause to a State that:
(i)
Clearly demonstrates that its failure to submit complete, accurate, and timely data, as required at § 265.8 of this chapter, for one or both of the first two quarters of FY 2000, is attributable, in significant part, to its need to divert critical system resources to Year 2000 compliance activities; and
(ii)
Submits complete and accurate data for the first two quarters of FY 2000 by September 30, 2000.
(2)
A State may also use the additional factors for claiming reasonable cause for failure to comply with the five-year limit on Federal assistance or the minimum participation rates, as specified at §§ 261.52 and 264.3 and subpart B of part 260 of this chapter.
(c)
In determining reasonable cause, we will consider the efforts the State made to meet the requirement, as well as the duration and severity of the circumstances that led to the State's failure to achieve the requirement.
(d)
(1)
The burden of proof rests with the State to fully explain the circumstances and events that constitute reasonable cause for its failure to meet a requirement.
(2)
The State must provide us with sufficient relevant information and documentation to substantiate its claim of reasonable cause.
Notes, amendments, and revision history

Amendments

[64 FR 17890, Apr. 12, 1999; 64 FR 40291, July 26, 1999]

Authority

Authority: 31 U.S.C. 7501 et seq.; 42 U.S.C. 606, 609, and 610; Sec. 7102, Pub. L. 109-171, 120 Stat. 135; Sec. 4004, Pub. L. 112-96, 126 Stat. 197.

Source

Source: 64 FR 17890, Apr. 12, 1999, unless otherwise noted.

Amendments

[64 FR 17890, Apr. 12, 1999; 64 FR 40291, July 26, 1999]

§262.6. What happens if a State does not demonstrate reasonable cause?

45 C.F.R. § 262.6

(a)
A State may accept the penalty or enter into a corrective compliance plan that will correct or discontinue the violation in order to avoid the penalty if:
(1)
A State does not claim reasonable cause; or
(2)
We find that the State does not have reasonable cause.
(b)
A State that does not claim reasonable cause will have 60 days from receipt of our notice described in § 262.4(a) to submit its corrective compliance plan.
(c)
A State that unsuccessfully claimed reasonable cause will have 60 days from the date that it received our second notice, described in § 262.4(f), to submit its corrective compliance plan.
(d)
The corrective compliance plan must include:
(1)
A complete analysis of why the State did not meet the requirements;
(2)
A detailed description of how the State will correct or discontinue, as appropriate, the violation in a timely manner;
(3)
The time period in which the violation will be corrected or discontinued;
(4)
The milestones, including interim process and outcome goals, that the State will achieve to assure it comes into compliance within the specified time period; and
(5)
A certification by the Governor that the State is committed to correcting or discontinuing the violation, in accordance with the plan.
(e)
The corrective compliance plan must correct or discontinue the violation within the following time frames:
(1)
For a penalty under § 262.1(a)(4), (a)(9), or (a)(15), by the end of the first fiscal year ending at least six months after our receipt of the corrective compliance plan; and
(2)
For the remaining penalties, by a date the State proposes that reflects the minimum period necessary to achieve compliance.
(f)
During the 60-day period following our receipt of the State's corrective compliance plan, we may request additional information and consult with the State on modifications to the plan including in the case of a penalty under § 262.1(a)(15), modifications to the State's work verification procedures and Work Verification Plan.
(g)
We will accept or reject the State's corrective compliance plan, in writing, within 60 days of our receipt of the plan, although a corrective compliance plan is deemed to be accepted if we take no action during the 60-day period following our receipt of the plan.
(h)
If a State does not submit an acceptable corrective compliance plan on time, we will assess the penalty immediately.
(i)
We will not impose a penalty against a State with respect to any violation covered by a corrective compliance plan that we accept if the State completely corrects or discontinues, as appropriate, the violation within the period covered by the plan.
(j)
Under limited circumstances, we may reduce the penalty if the State fails to completely correct or discontinue the violation pursuant to its corrective compliance plan and in a timely manner. To receive a reduced penalty, the State must demonstrate that it met one or both of the following conditions:
(1)
Although it did not achieve full compliance, the State made significant progress towards correcting or discontinuing the violation; or
(2)
The State's failure to comply fully was attributable to either a natural disaster or regional recession.
Notes, amendments, and revision history

Amendments

[64 FR 17890, Apr. 12, 1999, as amended at 71 FR 37481, June 29, 2006]

Authority

Authority: 31 U.S.C. 7501 et seq.; 42 U.S.C. 606, 609, and 610; Sec. 7102, Pub. L. 109-171, 120 Stat. 135; Sec. 4004, Pub. L. 112-96, 126 Stat. 197.

Source

Source: 64 FR 17890, Apr. 12, 1999, unless otherwise noted.

Amendments

[64 FR 17890, Apr. 12, 1999, as amended at 71 FR 37481, June 29, 2006]