§264.31. What happens if a State does not comply with the IV-D sanction requirement?
45 C.F.R. § 264.31
If we find that, for a fiscal year, the State IV-A agency did not enforce the penalties against recipients required under § 264.30(c), we will reduce the SFAG payable for the next fiscal year by one percent of the adjusted SFAG.
Upon a finding for a second fiscal year, we will reduce the SFAG by two percent of the adjusted SFAG for the following year.
A third or subsequent finding will result in the maximum penalty of five percent.
We will not impose a penalty if:
The State demonstrates to our satisfaction that it had reasonable cause pursuant to § 262.5 of this chapter; or
The State achieves compliance under a corrective compliance plan pursuant to § 262.6 of this chapter.
Notes, amendments, and revision history
Authority
Authority: 31 U.S.C. 7501 et seq.; 42 U.S.C. 608, 609, 654, 1302, 1308, and 1337.
Source
Source: 64 FR 17896, Apr. 12, 1999, unless otherwise noted.