Sec. 301. Additional targeted penalties to enforce Federal requirements
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/bill/117/hr/8661/ih/section-301·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 303(b) of the Social Security Act ( 42 U.S.C. 503(b) ) is amended— by striking Whenever and inserting
(1)Whenever ; by striking
(1)A denial and inserting
(A)A denial ; by striking
(2)A failure to comply substantially with any provision specified in this section and inserting
(B)A failure to comply substantially with any provision specified in this section or section 307 ; by inserting , except as provided in paragraph (2), after the Secretary of Labor shall notify ; by striking clause
(1)and inserting subparagraph
(A); and by adding at the end the following: Whenever a denial or failure to comply as described in paragraph
(1)occurs in a substantial number of cases, the Secretary of Labor may, in lieu of imposing the penalty described in such paragraph, withhold up to 15 percent of each payment (with such percentage to be determined by the Secretary of Labor based on factors including the severity and the extent of such denial or failure) made to the State under section 302 until such time as the Secretary of Labor is satisfied that there is no longer any such denial or failure to comply. The Secretary of Labor may make such withheld amount available to the State, and shall provide technical assistance to the State for such purpose. The Secretary of Labor shall provide for a reduction to, or an exemption from, the penalty described in subparagraph
(A)in cases where the Secretary of Labor determines that good cause for substantial noncompliance exists, and may allow for flexibility in times of heightened workload or reduced penalties in a case in which a State is making progress toward compliance. . Not later than 2 years after the date of enactment of this Act, the Secretary of Labor shall issue an interim final regulation prescribing— the circumstances in which a penalty described in paragraph (2)(A) of section 303(b) of the Social Security Act will be imposed, including a description of what constitutes substantial noncompliance within the meaning of such section; the method to be used to determine— the percentage of payment to be withheld; any increased penalty to be imposed for failure to take corrective action after the imposition of an initial penalty; and a description of any circumstances in which all or a portion of the penalty will be provided to the State to be used only for corrective action as specified by the Secretary of Labor; procedures under which the Secretary of Labor shall notify a State of any penalty that may potentially be imposed; the timing in which the penalty will be imposed; the permissible uses of any withheld amount made available to the State for corrective action pursuant to such paragraph (2)(A); and any other requirements or guidance the Secretary of Labor deems appropriate to implement the amendments made by subsection (a). The amendments made by subsection
(a)shall apply with respect to fiscal years beginning on or after the date on which the regulations described in subsection
(b)are finalized.
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Sec. 301
Additional targeted penalties to enforce Federal requirements
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