CFR > Title 45 - Public Welfare > SUBTITLE B—Regulations Relating to Public Welfare > CHAPTER II—OFFICE OF FAMILY ASSISTANCE (ASSISTANCE PROGRAMS), ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES (parts 200 to 288) > PART 261—ENSURING THAT RECIPIENTS WORK > SUBPART E—What Penalties Apply to States Related to Work Requirements? (§261.50 to §261.57) > 261.55—Under what circumstances will we reduce the amount of the penalty for not properly imposing penalties on individuals?

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.