Penalty for failure to enforce spending policies
(A) In general
(A)In general#
If, within 2 years after February 22, 2012 , any State has not reported to the Secretary on such State’s implementation of the policies and practices required by section 608(a)(12) of this title , or the Secretary determines, based on the information provided in State reports, that any State has not implemented and maintained such policies and practices, the Secretary shall reduce, by an amount equal to 5 percent of the State family assistance grant, the grant payable to such State under section 603(a)(1) of this title for—
(i) the fiscal year immediately succeeding the year in which such 2-year period ends; and
(ii) each succeeding fiscal year in which the State does not demonstrate that such State has implemented and maintained such policies and practices.
(A)(i)#
the fiscal year immediately succeeding the year in which such 2-year period ends; and
(A)(ii)#
each succeeding fiscal year in which the State does not demonstrate that such State has implemented and maintained such policies and practices.
(B)Reduction of applicable penalty#
The Secretary may reduce the amount of the reduction required under subparagraph (A) based on the degree of noncompliance of the State.
(C)State not responsible for individual violations#
Fraudulent activity by any individual in an attempt to circumvent the policies and practices required by section 608(a)(12) of this title shall not trigger a State penalty under subparagraph (A).