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45 CFR § 264.3 - How can a State avoid a penalty for failure to comply with the five-year limit?

---
identifier: "/us/cfr/t45/s264.3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "45 CFR § 264.3 - How can a State avoid a penalty for failure to comply with the five-year limit?"
title_number: 45
title_name: "Public Welfare"
section_number: "264.3"
section_name: "How can a State avoid a penalty for failure to comply with the five-year limit?"
chapter_name: "OFFICE OF FAMILY ASSISTANCE (ASSISTANCE PROGRAMS), ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
part_number: "264"
part_name: "OTHER ACCOUNTABILITY PROVISIONS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "31 U.S.C. 7501  42 U.S.C. 608, 609, 654, 1302, 1308, and 1337."
regulatory_source: "64 FR 17896, Apr. 12, 1999, unless otherwise noted."
cfr_part: "264"
---

# 264.3 How can a State avoid a penalty for failure to comply with the five-year limit?

(a) We will not impose the penalty if the State demonstrates to our satisfaction that it had reasonable cause for failing to comply with the five-year limit on Federal assistance or it achieves compliance under a corrective compliance plan, pursuant to §§ 262.5 and 262.6 of this chapter.

(b) In addition, we will determine a State has reasonable cause if it demonstrates that it failed to comply with the five-year limit on Federal assistance because of federally recognized good cause domestic violence waivers provided to victims of domestic violence in accordance with provisions of subpart B of part 260.

[64 FR 17896, Apr. 12, 1999; 64 FR 40292, July 26, 1999]