PUBLIC LAW 104-193—AUG. 22, 1996 110 STAT. 2147 "(b) REASONABLE CAUSE EXCEPTION.— "(1) IN GENERAL.— The Secretary may not impose a penalty on a State under subsection (a) with respect to a requirement if the Secretary determines that the State has reasonable cause for failing to comply with the requirement. "(2) EXCEPTION,—Paragraph (1) of this subsection shall not apply to any penalty under paragraph (7) or (8) of subsection (a). "(c) CORRECTIVE COMPLIANCE PLAN. — " (1) IN GENERAL.— "(A) NOTIFICATION OF VIOLATION. —Before imposing a penalty against a State under subsection (a) with respect to a violation of this part, the Secretary shall notify the State of the violation and allow the State the opportunity to enter into a corrective complisince plan in accordance with this subsection which outlines how the State will correct the violation and how the State will insure continuing compliance with this part. "(B) 60-DAY PERIOD TO PROPOSE A CORRECTIVE COMPLI- ANCE PLAN. — During the 60-day period that begins on the date the State receives a notice provided under subparagraph (A) with respect to a violation, the State may submit to the Federal Government a corrective compliance plan to correct the violation. "(C) CONSULTATION ABOUT MODIFICATIONS. —During the 60-day period that begins with the date the Secretary receives a corrective compliance plan submitted by a State in accordance with subparagraph (B), the Secretary may consult with the State on modifications to the plan. "(D) ACCEPTANCE OF PLAN.— A corrective compliance plsin submitted by a State in accordance with subparagraph (B) is deemed to be accepted by the Secretary if the Secretary does not accept or reject the plan during 60-day period that begins on the date the plan is submitted. " (2) EFFECT OF CORRECTING VIOLATION.—The Secretary may not impose any penalty under subsection (a) with respect to any violation covered by a State corrective compliance plan accepted by the Secretary if the State corrects the violation pursuant to the plan. "(3) EFFECT OF FAILING TO CORRECT VIOLATION.—The Secretary shall assess some or all of a penalty imposed on a State under subsection (a) with respect to a violation if the State does not, in a timely manner, correct the violation pursuant to a State corrective compliance plan accepted by the Secretary. "(4) INAPPLICABILITY TO FAILURE TO TIMELY REPAY A FEDERAL LOAN FUND FOR A STATE WELFARE PROGRAM.—T his subsection shall not apply to the imposition of a penalty against a State under subsection (a)(6), "(d) LIMITATION ON AMOUNT OF PENALTIES. — "(1) IN GENERAL.—In imposing the penalties described in subsection (a), the Secretary shall not reduce any quarterly payment to a State by more than 25 percent. "(2) CARRYFORWARD OF UNRECOVERED PENALTIES.—TO the extent that paragraph (1) of this subsection prevents the Secretary from recovering during a fiscal year the full amount of penalties imposed on a State under subsection (a) of this
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