1. Except as otherwise provided in this section:
(a) If the Division determines that the head of a household has not complied with the terms of the plan for personal responsibility signed by the head of the household pursuant to NRS 422A.535 or the agreement of cooperation signed by the head of the household pursuant to NRS 422A.540, the Division shall notify the head of household that if the failure to comply does not cease within 30 days after the head of household is notified of the failure to comply, the benefits provided to the household will be reduced pursuant to paragraph (b).
(b) The Division shall adopt regulations establishing a schedule of progressive penalties pursuant to which the benefits to the household will be reduced or terminated because of the failure of the head of the household to comply with the terms of the plan.
2. The Division shall not reduce, discontinue or terminate any benefits pursuant to this section if the reduction, discontinuance or termination would violate a requirement of federal law or a condition to the receipt of federal money.
(Added to NRS by 2005, 22nd Special Session, 17)