---
kind: "section"
citation: "45 C.F.R. § 264.31"
title: "45"
number: "264.31"
heading: "What happens if a State does not comply with the IV-D sanction requirement?"
url: "https://uscodex.org/cfr/45/264.31"
---

# §264.31. What happens if a State does not comply with the IV-D sanction requirement?

- (a)
  - (1) 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)](/cfr/45/264.30.md?p=c), we will reduce the SFAG payable for the next fiscal year by one percent of the adjusted SFAG.
  - (2) Upon a finding for a second fiscal year, we will reduce the SFAG by two percent of the adjusted SFAG for the following year.
  - (3) A third or subsequent finding will result in the maximum penalty of five percent.
- (b) We will not impose a penalty if:
  - (1) The State demonstrates to our satisfaction that it had reasonable cause pursuant to [§ 262.5](/cfr/45/262.5.md) of this chapter; or
  - (2) The State achieves compliance under a corrective compliance plan pursuant to [§ 262.6](/cfr/45/262.6.md) of this chapter.

## Notes

### 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.