---
kind: "section"
citation: "45 C.F.R. § 305.42"
title: "45"
number: "305.42"
heading: "Penalty phase-in."
url: "https://uscodex.org/cfr/45/305.42"
---

# §305.42. Penalty phase-in.


States are subject to the performance penalties described in [§ 305.40](/cfr/45/305.40.md) based on data reported for FY 2001. Data reported for FY 2000 will be used as a base year to determine improvements in performance during FY 2001. There will be an automatic one-year corrective action period before any penalty is assessed. The penalties will be assessed and then suspended during the corrective action period.


## Notes

### Authority

Authority: 42 U.S.C. 609(a)(8), 652(a)(4) and (g), 658a, and 1302.

### Source

Source: 65 FR 82208, Dec. 27, 2000, unless otherwise noted.