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OCR Page 1 of 56JAN-04-2000 13:12
OMB DEP DIR MGMT
202 395 6974 P.22/31
P. 149
Section 1355.36 (e) Withholding of funds.
This section describes the circumstances under which ACF
will withhold funds for those States determined not to be in
substantial conformity.
Comment: A number of commenters suggested that we emphasize
that penalties will be enforced.
Response: As we consider the amount of the penalty and the
provisions for withholding funds due to nonconformity, we think
that this is an area where stronger provisions are needed. We
want to convey in the rule our sense of urgency about the need to
implement needed improvements in child and family services and to
make the application of penalties consistent with that sense of
urgency. As a result, we have amended the regulatory language at
$1355.36 (e) (2) so that proposed penalties associated with a
particular outcome or systemic area will be imposed when the
State fails to come into substantial conformity or fails to make
the necessary progress with respect to the statewide data
indicators by the date specified in the PIP, rather than waiting
for the completion of the entire PIP. Some problems may only
require six months to fix, for example, while others may require
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