[Senate Report 110-467]
[From the U.S. Government Publishing Office]
Calendar No. 972
110th Congress Report
SENATE
2d Session 110-467
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IMPROVED ADOPTION INCENTIVES AND RELATIVE GUARDIANSHIP SUPPORT ACT OF
2008
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September 16, 2008.--Ordered to be printed
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Mr. Baucus, from the Committee on Finance, submitted the following
R E P O R T
[To accompany S. 3038]
[Including cost estimate of the Congressional Budget Office]
The Committee on Finance, to which was referred the bill
(S. 3038) to amend part E of title IV of the Social Security
Act to extend the adoption incentives program, to authorize
States to establish a relative guardianship program, to promote
the adoption of children with special needs, and for other
purposes, reports favorably thereon with an amendment in the
nature of a substitute and recommends the bill, as amended, do
pass.
I. BACKGROUND
Child Welfare Services
The Child Welfare Services program was established in
1935--as part of the original Social Security Act (P.L. 74-
271)--to provide grants to State agencies for the ``protection
and care of homeless, dependent, and neglected children, and
children in danger of becoming delinquent'' and for
``developing State services for the encouragement and
assistance of adequate methods of community child welfare
organization.'' Child Welfare Services funding is authorized on
a discretionary basis and is distributed, by formula, to
States, territories, and tribes. The program authorization has
been amended numerous times and is currently included in the
Social Security Act as part of Title IV-B, subpart 1, under
which competitive grants for child welfare training and support
for some child welfare related research projects are also
authorized. The Child and Family Services Improvement Act of
2006 (P.L. 109-288) clarified the purposes of that subpart as
being to ``promote State flexibility in the development and
expansion of a coordinated child and family services program
that utilizes community based agencies and ensures all children
are raised in safe, loving families'' by--protecting and
promoting the welfare of all children and preventing their
neglect, abuse, or exploitation; supporting at-risk families to
allow children to remain safely in their own homes, or to
return safely to those homes; promoting the safety, permanence
and well-being of children in foster care and in adoptive
homes; and providing training, professional development and
support to ensure a well-qualified child welfare workforce.
Title IV-E foster care and adoption assistance
Federal support for children placed in foster care was
first authorized on a temporary open-ended entitlement basis in
1961 (P.L. 87-31) as part of the prior law cash welfare
program, Aid to Dependent Children (ADC). The 1961 law gave
States the option to seek reimbursement for a part of the cost
of maintaining in foster care any child who had been eligible
for cash assistance in his or her home but who--because of a
judicial determination that the home was ``contrary to the
welfare'' of the child--needed to be removed to foster care.
One year later, as part of the Public Welfare Amendments of
1962, Congress renamed the cash welfare program, Aid to
Families with Dependent Children (AFDC), and authorized
reimbursement of eligible State foster care costs on a
permanent basis (P.L. 87-543). The Social Security Amendment of
1967 (P.L. 90-248, enacted in January 1968) required States, as
part of the AFDC (cash welfare) program, to provide foster care
support to eligible children, and it broadened eligibility for
Federal foster care assistance to include any child who would
have been eligible for AFDC assistance in his or her own home
if an application had been made on the child's behalf.
Eligibility for Title IV-E. In 1980, the Adoption
Assistance and Child Welfare Act (P.L. 96-272) created Title
IV-E of the Social Security Act to continue, on an independent
basis, open-ended Federal reimbursement of a part of all
eligible State foster care costs, and to newly authorize open-
ended Federal reimbursement to States for a part of the cost of
providing monthly subsidies for eligible adopted children who
are determined by the State to have ``special needs.'' The new
Title IV-E program, however, retained the eligibility link to
the cash welfare program by limiting Federal eligibility for
both foster care and (in most cases) adoption assistance to
children who were removed from homes in which they were (or
would have been if application had been made) eligible for cash
welfare under the AFDC program. With the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(PRWORA, P.L. 104-193) Congress repealed the AFDC program
(replacing it with Temporary Assistance to Needy Families,
TANF). At the same time, it maintained the prior law AFDC
eligibility rules for purposes of determining a child's
eligibility for Federal foster care or adoption assistance
under Title IV-E, and those rules (as they existed on July 16,
1996) continue to apply today.
Placement with Relatives and Legal Guardianship. Amendments
to the Child Welfare Services (Title IV-B, Subpart 1) and
foster care programs that were made as part of the same 1980
law that created Title IV-E (P.L. 96-272) sought to reduce
unnecessary entries to foster care and to ensure, primarily
through case planning and review, that a child's stay in foster
care was temporary. In 1994 (P.L. 103-432), Congress authorized
the U.S. Department of Health and Human Services (HHS) to waive
requirements under Title IV-E or Title IV-B to enable States to
demonstrate alternative ways of providing effective child
welfare services to children and their families. Under this
authority, as many as 12 States have, or are implementing,
assisted guardianship programs that provide subsidies (using
Title IV-E funds) to children who leave foster care for
placement with legal (primarily relative) guardians. In 1996,
PRWORA (P.L. 104-193) amended the Title IV-E foster care
program to require that States ``consider giving preference to
an adult relative over a non-related caregiver when determining
a placement for a child'' in foster care--provided that the
relative caregiver meets all relevant safety standards for the
child's protection. In 1997, the Adoption and Safe Families Act
(ASFA, P.L. 105-89) again amended the Title IV-E foster care
program to clearly establish that States must make safety the
pre-eminent concern of all child welfare decision-making and it
required them to take other actions intended to expedite a
child's placement in an appropriate permanent living
arrangement. ASFA established that for any child for whom
returning home was not appropriate, the State must seek to
place the child with an adoptive family, a legal guardian, a
``fit and willing'' relative, or, if none of these options is
in the child's best interest, in another planned permanent
living arrangement. As amended by ASFA, a ``legal guardian'' is
defined in Title IV-E as the caretaker in a ``legal
guardianship,'' which is defined as ``a judicially created
relationship between child and caretaker which is intended to
be permanent and self-sustaining as evidenced by the transfer
to the caretaker of the following parental rights with respect
to the child: protection, education, care and control of the
person, custody of the person, and decisionmaking.'' After
expanding and renewing the authority for HHS to grant new child
welfare waivers, Congress permitted it to expire at the end of
March 2006. However, States with previously approved waivers to
operate demonstration programs may continue to operate under
those waivers (generally for a limited time) and some States
continued to provide assisted guardianship with Title IV-E
dollars under this authority.
Adoption incentives
As part of encouraging States to find permanent homes for
children in foster care who cannot return to their birth
parents, ASFA (P.L. 105-89) established the Adoption Incentives
program in Section 473A of the Social Security Act. The program
provides a bonus to the State child welfare agency when it
increases the number of children it places out of foster care
and into adoptive families. States receive an enhanced bonus
amount if the child is determined to have ``special needs.''
The Adoption Promotion Act of 2003 (P.L. 108-145) amended the
program to provide separate bonuses to States for increasing
the number of older children (age nine or above) who are placed
out of foster care and into adoptive families.
Independent living
In recognition of research demonstrating the many unmet
needs of youth who upon reaching the State age of majority are
legally ``emancipated'' from foster care custody (typically at
age 18), Congress, in 1986 (P.L. 99-272), authorized a new
capped entitlement to States for provision of independent
living services to such youth before their exit from foster
care. Youth were eligible for these services if they were
between the ages 16 to 18 and met all the Title IV-E foster
care eligibility criteria. In 1988, P.L. 100-647 expanded
independent living program eligibility to include funding for
services to youth who did not meet the Title IV-E eligibility
criteria and to permit States to provide services to youth for
up to 6 months after their emancipation from foster care (P.L.
100-647). That same 1988 law also amended the Title IV-E foster
care program to stipulate that, ``where appropriate,'' for any
child in foster care who is at least age 16, the State must
include in the child's required case plan a written description
of the ``programs and services which will help such child
prepare for the transition from foster care to independent
living.'' In 1990, P.L. 101-508 further provided that States
could use these funds to offer services to youth who had
emancipated from foster care until their 21st birthday. As
research continued to demonstrate poor outcomes for children
emancipating from foster care, the Chafee Foster Care
Independence Act (P.L. 106-169) doubled the program's annual
entitlement to $140 million and made other changes intended to
ensure that State child welfare agencies and foster youth
planned for and achieved independent living. As part of the
Promoting Safe and Stable Families Amendments of 2001 (P.L.
107-133), Congress authorized discretionary funding for
Education and Training Vouchers to enable youth who leave
foster care without a permanent home (or those adopted from
foster care at age 16 or older) to receive vouchers worth up to
$5,000 annually to attend college or an equivalent post-
secondary education training program.
II. CHAIRMAN'S SUBSTITUTE TO S. 3038, THE ``IMPROVED ADOPTION AND
RELATIVE GUARDIANSHIP SUPPORT ACT OF 2008''
PROMOTING ADOPTION
Adoption incentives
The Committee finds that the Adoption Incentive Program has
successfully increased the number of adoptions and should be
extended and improved. The Committee bill includes an updated
and improved extension of the Adoption Incentive Program
through FY 2013.
Adoption Assistance
The Committee finds that more should be done to increase
the number of adoptions out of foster care. Under current law,
to qualify for Federal adoption assistance a child must meet
the income eligibility requirement for the former Aid to
Families with Dependent Children (AFDC). Since AFDC was
eliminated in 1996 as part of the Personal Responsibility and
Work Opportunity Act (PRWORA), commonly known as welfare
reform, the Committee finds that it is an inappropriate
eligibility factor for Federal Adoption Assistance. Therefore,
the Committee bill phases out the Aid to Families with
Dependent Children (AFDC) income eligibility standard.
TRIBAL ACCESS
The Committee finds that tribes, tribal consortia, and
tribal organizations may provide higher quality and more
culturally appropriate care for Indian children. Therefore, the
Committee bill allows qualified tribes, tribal consortia, and
tribal organizations the authority to administer tribal foster
care and adoption assistance programs for Indian children and
to receive direct Federal funding for that purpose. To ensure
the success of Federal administration and tribal implementation
of this new authority the committee provides for the
establishment of a child welfare resource center solely
dedicated to improving outcomes for Indian children whether
served by tribes or States.
GUARDIANSHIP
The Committee finds that child welfare waivers and several
academic studies have demonstrated that children in
guardianship and kinship placements tend to experience fewer
placements and have school stability. The Committee finds that
surveys also show that children are more likely to report
liking their placement and wanting it to become their permanent
placement. Children also are less likely to run away. The
Committee finds that in addition to the benefits of a
permanency option for children, a guardianship option for
States would reduce administrative oversight and caseworker
visits which would reduce Federal payments for States. The
Committee notes that no child would be eligible for a Federal
guardianship payment that is not currently eligible for the
entitlement provided for under Title IV-E of the Social
Security Act. Therefore, the Committee bill allows States to
receive Federal reimbursement, at a level not to exceed the
foster care maintenance payment, for children eligible for
assistance under Title IV-E of the Social Security Act who are
placed with a relative in a guardianship arrangement.
FOSTER CARE
The Committee finds that approximately 20,000 youth age out
of foster care each year. The Committee notes that the Midwest
Evaluation of the Adult Functioning of Former Foster Youth has
tracked outcomes for a sample of youth. The Committee notes
that the study has found that still being in care, as opposed
to having left care, and having certain other characteristics
(i.e., having aspirations to graduate from college, feeling
close to at least one family member, and expressing
satisfaction with their experience in foster care) more than
doubled the odds of the teen working or being in school at age
19. Therefore the Committee bill will encourage States to
continue support and assistance for youth up to age 21 for
youth involved in education, training or employment. Youth with
medical problems or disability can also stay in care. States
will also be required to help youth prior to their emancipation
to develop a transition plan to outline options for education,
training, housing, health care and the range of supports.
It is the view of the Committee that the Committee bill
will promote the goals of permanency in a range of ways
including adoption, guardianship and kinship care. The
Committee finds that the Committee bill provides that for youth
who do not gain permanency, States will be encouraged to
continue support beyond age 18 to promote better outcomes on
education, training and employment.
III. SECTION-BY-SECTION ANALYSIS
Committee Bill (S. 3038 as approved September 10, 2008)
TITLE I--EXTENSION AND IMPROVEMENT OF ADOPTION INCENTIVES
Section 101--Extension of Adoption Incentives Program
5-year extension
CURRENT LAW
Provides that a State may be eligible for Adoption
Incentive awards for increasing the number of children who are
adopted out of foster care in each of FY1998-FY2007. Authorizes
appropriations of $43 million in each of FY2004-FY2008 to make
those awards, and stipulates that funds appropriated for
Adoption Incentives may not be expended after FY2008. As a
condition of eligibility for these awards, in each of FY2001-
FY2007, requires States to provide health insurance coverage to
any child who has special needs (as determined by the State)
and for whom the State has an adoption assistance agreement in
place. Requires the U.S. Department of Health and Human
Services (HHS) to use State-reported data to determine the
number of incentive eligible adoptions that the State has
finalized for each of FY2002-FY2007.
COMMITTEE BILL
The Committee Bill provides that States may be eligible for
Adoption Incentive awards for adoptions finalized in each of
FY2008-FY2012. The Committee Bill extends the funding
authorization for the Adoption Incentive Program for five years
(through FY2013) at the current annual authorization level ($43
million) and provides that funds appropriated for Adoption
Incentives may not be expended after FY2013. Further, the
Committee Bill extends to each fiscal year the current State
eligibility criteria regarding provision of health insurance
for special needs adoptees and the requirement for HHS to
determine the number of adoptions eligible under the program by
State.
Additional incentive payment for exceeding the highest ever foster
child adoption rate
CURRENT LAW
States may earn Adoption Incentive awards if they increase
the number of children who are adopted out of foster care.
COMMITTEE BILL
In addition, the Committee Bill permits States to earn an
Adoption Incentive award for an increase in their rate of
foster child adoptions. Awards for an increase in the rate of
these adoptions are made available in any year beginning with
FY2009, provided that funds appropriated for Adoption
Incentives exceed the amount needed to make any awards earned
for increases in the number of adoptions.
Under the Committee Bill, a State's foster child adoption
rate would be determined by dividing the number of foster child
adoptions finalized in the State in a given fiscal year by the
number of children in that State's foster care caseload on the
last day of the previous year. (For example: If a State
finalizes 150 adoptions in a given fiscal year and on the last
day of the previous fiscal year it had 1,500 children in its
foster care caseload, its foster child adoption rate for the
given fiscal year is 10 percent.) A State earns an award if it
achieves a foster child adoption rate that is above its
``highest ever foster child adoption rate''--meaning the
highest foster child adoption rate that the State achieved in
any year beginning with FY1998 and before the award year. The
amount of this award would be equal to $1,000 multiplied by the
number of adoptions that occurred as a result of the State
exceeding its highest ever foster child adoption rate (and
holding the foster care caseload constant). (For example: If
the State in the example above had previously achieved a
highest ever foster child adoption rate of 9 percent, then,
when it achieved the rate of 10 percent, its award for this
increased rate would be calculated as follows: Multiplying that
highest rate (9 percent) by the 1,500 children in its caseload
on the last day of the fiscal year prior to the award year,
subtracting this number (135) from the actual number of foster
child adoptions achieved in the award year (150) and
multiplying the difference (15) by $1,000 to determine the
award amount of $15,000.) The Committee Bill permits HHS to
make pro rata adjustments to these amounts if funds
appropriated are insufficient to cover the full awards earned.
Increase in incentive payments for special needs adoptions and older
child adoptions
CURRENT LAW
A State earns Adoption Incentive awards for increasing the
number of adoptions out of foster care in the following
amounts: $4,000 for each foster child adoption that is above
its base number of adoptions in this category; $4,000 for each
adoption of a child from foster care who is age 9 or older that
is above its base number of adoptions in this category; and
(provided the State has also earned either a foster child or
older child adoption award), $2,000 for each special needs
adoption of a child (who is under the age of 9) that is above
its base number of adoptions in this category.
COMMITTEE BILL
The Committee Bill raises the award amount for each
increase in older child adoption to $8,000, and for adoption of
a child with special needs (who is under age 9) to $3,000. (The
Committee Bill maintains the current law award of $4,000 for
each increase in foster child adoptions overall.)
Updating of fiscal year used in determining base number of adoptions
CURRENT LAW
A State has a ``base number'' of adoptions for each
category of adoptions under which it may earn an Adoption
Incentive award--foster child adoptions, older child adoptions
and adoptions of special needs children (who are under the age
of 9). Those base numbers are equal to the number of adoptions
the State finalized in each of those categories in FY2002 OR
any year after that in which it achieved a higher number.
COMMITTEE BILL
The Committee Bill establishes the base number of adoptions
as the number of adoptions achieved by a State in each Adoption
Incentive category (foster child, older child, and special
needs children under age 9) by that State in FY2007.
24-month availability of payments to states
CURRENT LAW
States may spend Adoption Incentive awards in the fiscal
year for which they are awarded and in the following fiscal
year.
COMMITTEE BILL
The Committee Bill gives States 24 months, beginning with
the month in which the awards are made, to spend these funds.
Section 102--Promotion of Adoption of Children With Special Needs
Elimination of eligibility based on AFDC and SSI income standards
CURRENT LAW
A child who has ``special needs'' (as determined by each
State) is eligible for Federal adoption assistance if the child
meets the requirements of at least one of the following
eligibility pathways:
(1) AFDC: The child was removed from the home of a parent
or other relative under a voluntary placement agreement or
because a judge found the home of the parent or other relative
to be ``contrary to the welfare'' of that child, AND, if while
living in that home, the child would have met all income,
family structure, and other eligibility requirements necessary
to be determined a ``needy'' child under the Aid to Families
with Dependent Children (AFDC) program (as that program existed
on July 16, 1996).
(2) SSI: The child meets all the eligibility criteria for
Supplemental Security Income (SSI), including those related to
income and medical/physical disability.
(3) Child of a minor parent: The child lives with his/her
minor parent who is in foster care, and the minor parent meets
either the AFDC or SSI eligibility criteria and is receiving
Federal foster care maintenance payments that includes funds to
cover costs of the child.
COMMITTEE BILL
The Committee Bill removes all income and resource tests
included in each of these eligibility pathways. Further, with
regard to the child's removal from his/her home (under the
current AFDC eligibility pathway) the Committee Bill requires a
State to make the determination that continuation of the child
in the home would be contrary to the safety or welfare of the
child and permits the State to make this determination pursuant
to its own criteria, which may or may not require this
determination to be made by a judge.
Eligibility if initial adoption fails
CURRENT LAW
If a child was eligible for Federal adoption assistance in
a previous adoption, ensures continued eligibility for this
assistance in a subsequent adoption provided the child is
determined by the State to have special needs and is available
for adoption because the previous adoption was dissolved (with
adoptive parents' rights terminated) or because the adoptive
parents died. This provision was included in the Adoption and
Safe Families Act and became effective for any child adopted on
or after October 1, 1997.
COMMITTEE BILL
The Committee Bill extends this same provision to any child
whose adoption occurred before the October 1, 1997 effective
date of the Adoption and Safe Families Act and who would have
been found eligible if the ASFA provision was enacted at that
time.
Exception (related to intercountry adoption)
CURRENT LAW
Children adopted in another country, or who are brought to
this country for the purposes of adoption (i.e., intercountry
adoptees) may not be categorically excluded from Federal
adoption assistance. However, they are generally found
ineligible for monthly Federal adoption assistance because they
do not meet the eligibility criteria for Federal adoption
assistance. (For example, they can not meet the requirements of
the prior law AFDC program, which was a domestic program and
available only to children living in this country.) At the same
time, the adoptive parents of an intercountry adoptee may claim
reimbursement of non-recurring adoption expenses (up to $2,000)
if the State determines that the intercountry adoptee has
special needs and the adoptive parents request the payment
before the adoption is finalized.
COMMITTEE BILL
In general, the Committee Bill makes intercountry adoptees
categorically ineligible for Federal adoption assistance of any
kind--that is, they may not be eligible for monthly assistance
payments nor for payment of non-recurring adoption expenses.
However, an intercountry adoptee who the State determines to
have special needs and who is placed in foster care because the
initial intercountry adoption failed (as determined by the
State) may be eligible for Federal adoption assistance.
Requirement for use of State savings
CURRENT LAW
Not applicable.
COMMITTEE BILL
The Committee Bill provides that any State savings that may
be achieved because of the expanded Federal eligibility for
adoption assistance permitted by the Committee Bill must be
spent on child welfare purposes.
Determination of a child with special needs
CURRENT LAW
A child is considered to have ``special needs'' if the
State determines that: (1) the child cannot or should not be
returned to his/her home; (2) because of a factor defined by
the State and specific to the child--e.g., the child's age,
race/ethnicity, membership in a sibling group, physical, mental
or emotional disabilities or medical conditions--he or she is
unlikely to be adopted without provision of medical assistance
or adoption assistance; and (3) it has made efforts (unless
this is against the best interests of the child) to place the
child for adoption without providing medical or adoption
assistance on the child's behalf, but these efforts have been
unsuccessful.
COMMITTEE BILL
The Committee Bill provides that a State must consider any
child who meets all the medical or disability requirements
related to eligibility for SSI to be a child with special needs
(provided that the State has also determined that the child
cannot or should not be returned home and the State has tried
unsuccessfully to place the child for adoption without medical
or adoption assistance).
EFFECTIVE DATE
In general, the Committee Bill makes the provisions of this
section, ``Promotion of Adoption of Children with Special
Needs,'' effective with FY2013 and applicable only to adoption
assistance agreements entered into on or after the first day of
that fiscal year (October 1, 2012). However, the Committee Bill
phases in earlier implementation of these amendments for
children who have attained a certain age. Specifically, it
stipulates that the amendments of the section apply beginning
with the first day of FY2011 (October 1, 2010) for any adoption
assistance agreement entered into during that year that is done
on behalf of a child who is 12 years of age or older on the
date the agreement is executed; and that it applies as of the
first day of FY2012 (October 1, 2011) for any adoption
assistance agreement entered into during that year that is done
on behalf of a child who is 6 years of age or older on the date
the agreement is executed.
TITLE II--SUPPORT FOR RELATIVE GUARDIANSHIP
Section 201--Relative Guardianship Assistance Payments for Children
Option for States to enhance and subsidize a relative guardianship
program
CURRENT LAW
Under Title IV-E of the Social Security Act, States with an
approved foster care and adoption assistance plan are entitled
to receive Federal reimbursement for a part of the cost of
providing foster care and adoption assistance to every eligible
child.
COMMITTEE BILL
The Committee Bill provides that any State that elects to
offer relative guardianship assistance under its Title IV-E
foster care and adoption assistance plan is additionally
entitled to Federal support for a part of the cost of providing
this assistance on behalf of each eligible child.
Requirements
CURRENT LAW
No provision.
COMMITTEE BILL
Relative Guardianship Agreements: The Committee Bill
provides that to receive this Federal support, a State must
negotiate and enter into a written and binding agreement with
the relative guardian of an eligible child that at a minimum,
specifies: (1) the amount of each relative guardianship
assistance payment and how it will be provided; (2) additional
services and assistance that the child and relative guardian
will be eligible for under the agreement; (3) the procedure the
relative guardian may use to apply for additional services (if
agreed to); and (4) that the State will pay up to $2,000 of the
non-recurring expenses associated with obtaining legal
guardianship of the child.
Interstate Application: The Committee Bill provides that a
relative guardianship assistance agreement must remain in
effect regardless of the State in which the relative guardian
resides.
Federal Reimbursement of Nonrecurring Expenses: The
Committee Bill stipulates that the Federal government must pay
one-half (50 percent) of a State's cost of covering
nonrecurring guardianship expenses (up to $2,000).
Relative Guardianship Assistance Payments: The Committee
Bill provides that the amount of a child's relative
guardianship assistance payment must be based on a
consideration of the circumstances of the relative and the
needs of the child, but must not be less than the amount the
State would pay on behalf of the child if he or she was
adopted, nor can it be more than the amount the State would pay
on the child's behalf if the child remained in a foster family
home. The amount of the relative guardianship assistance
payment may be readjusted periodically, with the concurrence of
the relative guardian, depending upon changes in the
circumstances of the relative guardian or the needs of the
child.
Child's Eligibility for a Relative Guardianship Assistance
Payment: Under the Committee Bill, a child is eligible for a
Federal relative guardianship assistance payment if the State
agency determines that: (1) in the month before the legal
guardianship was established the child was in foster care and
eligible for a Federal foster care maintenance payment; (2)
being returned home or adopted are not appropriate permanency
options for the child and, in the case of a child for whom
removal from the home was associated primarily with parental
substance abuse and addiction, that attempts to engage the
family in residential, comprehensive family treatment programs
are inappropriate or have been unsuccessful, or such programs
are unavailable; (3) the child demonstrates a strong attachment
to the relative guardian; (4) the relative guardian has a
strong commitment to caring for the child and satisfies other
requirements (specified below); and (5) if the child is age 14
or older, the child has been consulted about the relative
guardianship arrangement.
Requirements for Relative Guardians: Under the Committee
Bill, a relative guardian must: (1) be a grandparent or other
relative of the child on whose behalf the relative guardianship
assistance payment is being made; (2) have satisfied the same
criminal background and child abuse and neglect registry checks
that are required of prospective foster and adoptive parents of
children on whose behalf Federal foster care or adoption
assistance payments are made; (3) have met the State's
licensing requirements for a foster family home; and (4) assume
legal guardianship of the child and commit to caring for the
child on a permanent basis.
Treatment of Siblings: The Committee Bill provides that a
child who meets the eligibility requirements for Federal
relative guardianship assistance payments must be placed in the
same relative guardianship arrangement with any sibling(s),
unless it can be shown that this is inappropriate, and, further
that Federal relative guardianship assistance payments may be
paid for each sibling placed in the same relative guardianship
arrangement.
Payments to States
CURRENT LAW
States are entitled to receive Federal reimbursement of 75
percent of their cost of providing short-term training to
eligible individuals (including current and prospective foster
and adoptive parents and staff of certain child care
institutions) provided those individuals care for children who
are eligible for Federal foster care or adoption assistance.
Every State has a Federal Medical Assistance Percentage
(FMAP) that is calculated annually and may range from 50
percent (for higher per capita income States) to 83 percent
(for lower per capita income States).
COMMITTEE BILL
Under the Committee Bill, States are additionally entitled
to Federal reimbursement of 75 percent of the cost of providing
short-term training for current or prospective relative
guardians, provided those relative guardians care for children
receiving Federal foster care, relative guardianship
assistance, or adoption assistance.
Under the Committee Bill, States are entitled to Federal
reimbursement at their FMAP for the cost of providing relative
guardianship assistance payments to eligible children.
Incentive payments for relative guardianship placement
CURRENT LAW
Funds are authorized to be appropriated for Adoption
Incentives to States that increase the number of children
adopted out of foster care.
COMMITTEE BILL
The Committee Bill requires HHS to make Relative
Guardianship Incentive Awards in any fiscal year in which the
funds appropriated for the Adoption Incentive program exceeds
the amount needed to provide all adoption-related awards earned
by the States under that program. In the first year that a
State establishes a relative guardianship assistance program
(under Title IV-E), the Committee Bill provides that the
State's relative guardianship incentive award is equal to the
total number of relative guardianship assistance agreements it
enters into during that year multiplied by $1,000. In any
succeeding year, the award amount is equal to $1,000 multiplied
by any increase in the number of relative guardianship
assistance agreements that a State entered into that is above
its ``base number'' of such agreements. A State's base number
of relative guardianship assistance agreements is equal to the
highest number of those agreements it enters into in any year
before the award year. HHS may make pro rata adjustments to
these award amounts if funds appropriated are insufficient to
cover the full awards earned.
Conforming amendment (use of funds)
CURRENT LAW
States may only spend Adoption Incentive awards for
provision to children and families of any service (including
post-adoption services) that is now authorized under Title IV-B
(Child and Family Services) and Title IV-E (Foster Care and
Adoption Assistance) of the Social Security Act.
COMMITTEE BILL
The Committee Bill maintains the current provisions for use
of Adoption Incentive funds while explicitly adding that
``relative navigator and support services'' may also be funded
by the awards.
Maintaining eligibility for adoption assistance and Medicaid
CURRENT LAW
Children who are eligible for adoption assistance or for
Federal foster care maintenance payments are categorically
eligible for Medicaid.
COMMITTEE BILL
Medicaid eligibility: The Committee Bill ensures that
children who move to Federal relative guardianship assistance--
all of whom must by definition have been eligible for Federal
foster care assistance--maintain their eligibility for
Medicaid.
Adoption Assistance eligibility: The Committee Bill
separately provides that for purposes of determining a child's
eligibility for Federal adoption assistance, any child who has
received Federal relative guardianship assistance payments, and
who is determined by the State to have special needs, must be
eligible for Federal adoption assistance. The Committee Bill
stipulates that the State must make payments of nonrecurring
adoption expenses to the adoptive parents of such a child.
Eligibility for independent living services and education and training
vouchers for children who exit foster care for relative
guardianship or adoption after age 16
CURRENT LAW
Under the Chafee Foster Care Independence Program, States
design and conduct independent living programs to help youth
who are expected to remain in foster care until their 18th
birthday, and those who have aged out of foster care (up to age
21) to transition to independent adulthood. Also authorizes
Education and Training Vouchers for these same youth to attend
college (or an equivalent level training program) and provides
that any youth who is adopted from foster care after his/her
16th birthday is eligible for Education and Training Vouchers.
COMMITTEE BILL
The Committee Bill also permits States to design and
provide Chafee independent living services for any youth who
leaves foster care after his/her 16th birthday for adoption or
relative guardianship. The Committee Bill further extends
eligibility for Education and Training Vouchers to any youth
who leaves foster care for relative guardianship after his/her
16th birthday.
Notice requirements
CURRENT LAW
Provides that a State must ``consider'' giving preference
to an adult relative over a non-related caregiver when
determining the placement of a child, if the adult relative
meets State child protection standards.
COMMITTEE BILL
Notice to relatives of child's removal from parental
custody: The Committee Bill additionally requires the State
child welfare agency to ``exercise due diligence'' to identify
any adult grandparents or other adult relatives of a child
within 60 days of a child's removal from parental custody. It
also requires the State to give these relatives notice of the
imminent or recent removal of the child and to explain the
relative's options to participate in the child's care and
placement--including a description of State licensing
requirements and associated supports and benefits, and how to
enter into a relative guardianship assistance agreement
(provided the State has opted to provide this kind of
assistance). The Committee Bill permits exceptions to this
notice requirement due to family or domestic violence.
Notice to non-parent caregivers of children receiving TANF
benefits: The Committee Bill also requires the State child
welfare agency to give notice of these same care and placement
options to any non-parent relative caretaker who, after an
interaction with the child welfare agency, is providing a home
for a child receiving Temporary Assistance to Needy Families
(TANF) benefits.
TANF penalty for failure to provide notice
CURRENT LAW
Under the TANF block grant (Title IV-A of the Social
Security Act), States are entitled to receive an annual grant
for family assistance. The amount of this grant may be reduced
if HHS determines that the State has failed to comply with
certain Federal requirements related to the receipt and use of
the funds. A State may avoid such a penalty if it can show
reasonable cause for the noncompliance, or if it enters into a
corrective compliance plan with HHS.
COMMITTEE BILL
The Committee Bill requires HHS to reduce the amount of a
State's TANF grant if it determines that the State is not
complying with the notice provisions for non-parent caretakers
of children receiving TANF benefits. If a non-complying State
cannot give reasonable cause or does not enter into a
corrective compliance plan with HHS, the penalty amount must be
based on the State's degree of noncompliance. However, it must
be no less than 1 percent nor more than 3.5 percent of the
State's total TANF family assistance grant.
Notice requirements (adoption tax credit)
CURRENT LAW
The Internal Revenue Code permits taxpayers who adopt a
child to claim a tax credit for all qualifying adoption costs
up to the maximum credit. (The maximum credit was equal to
$11,390 in tax year 2007.) It also provides that any taxpayer
who adopts a child meeting the State's definition of ``special
needs'' may claim the full credit amount (without having to
show any qualifying costs).
COMMITTEE BILL
The Committee Bill requires States to provide information
to prospective adoptive parents about their potential
eligibility for the Federal adoption tax credit, including the
fact that if they adopt a special needs child, they may receive
the maximum credit without having to show any qualifying
adoption costs.
Case plan requirements
CURRENT LAW
Every child in foster care must have a written case plan.
COMMITTEE BILL
The Committee Bill requires that if the permanency goal for
a child in foster care is placement with a relative guardian
who is to receive a Federal relative guardianship assistance
payment on the child's behalf, that child's case plan must
describe--(1) the steps the agency has taken to determine that
it is not appropriate for the child to return home or be
adopted; (2) the reasons why a permanent placement with a fit
and willing relative through a relative guardianship assistance
arrangement is in the child's best interests; (3) the ways in
which the child meets the eligibility requirements for relative
guardianship assistance payments; (4) the efforts the agency
has made to discuss adoption by the child's relative guardian
and, if the relative guardian chose not to pursue adoption, the
reasons why this is so; and (5) the efforts made by the State
agency to secure the consent of the child's parent(s) to the
relative guardianship assistance arrangement (or the reason why
those efforts were not made).
Requirement to conduct criminal records and child abuse and neglect
registry checks
CURRENT LAW
States are required to conduct fingerprint-based FBI checks
of prospective foster and adoptive parents and must also
conduct child abuse registry checks of any prospective foster
or adoptive parents, as well as any other adult living in the
home. A State may not approve the placement of a child for whom
Federal foster care or adoption assistance is claimed with any
individual for whom the criminal record check reveals certain
felony convictions.
COMMITTEE BILL
The Committee Bill would require these same criminal
background checks, child abuse and neglect registry checks, and
placement approval procedures for prospective relative
guardians.
EFFECTIVE DATE
The Committee Bill makes the amendments in this section,
``Relative Guardianship Assistance Payments for Children,''
effective on October 1, 2008, and applicable only to relative
guardianship assistance agreements made on or after that date.
Section 202--Demonstration Projects Regarding Licensing of Immediate
Relative Foster Parents
CURRENT LAW
No provision.
COMMITTEE BILL
The Committee Bill requires HHS to establish not more than
10 demonstration projects (at least 2 in rural States, 1 in a
State where counties primarily administer the Title IV-E foster
care program, and 1 in a tribe that directly operates a Title
IV-E foster care program) to determine the extent to which
flexibility in the application of licensing standards for the
homes of immediate relative foster parents results in improved
well-being and permanency outcomes for children in foster care.
A State (including any of the 50 States or the District of
Columbia) or tribe selected to conduct such a demonstration
(under the Title IV-E foster care program) may modify the
extent to which the home of an immediate foster parent relative
(grandparent, aunt, uncle or adult sibling) meets any of the
State's foster family home licensing standards that concern--
(1) the number or size of bedrooms in the home (with
appropriate safeguards for age and sex of the children); (2)
the number of bathrooms in the home (with appropriate
safeguards for age and sex of the children); and (3) the
overall square footage of the home. The Committee Bill requires
that the licensing demonstrations must begin no later than one
year after the date of the bill's enactment and must be
conducted for two years. It also requires, that, not later than
one year after completion of the projects, HHS must submit to
the Senate Finance and House Ways and Means Committees a report
that evaluates the impact of the projects on the well-being of
children in foster care and on their permanency outcomes--which
must be based on the State's performance before the
demonstration compared to its performance during the
demonstration. The report must also include any recommendations
for administrative or legislative action HHS determines to be
appropriate.
Section 203--Grants To Carry Out Kinship Navigator Programs
CURRENT LAW
No provision.
COMMITTEE BILL
The Committee Bill appropriates $5 million in each of
FY2009-FY2013 to fund competitive grants to (1) establish
kinship navigator programs in States, large metropolitan areas
and tribal areas; and (2) promote effective partnerships among
public and private agencies to more effectively serve kinship
care families. The Committee Bill requires grantees to use
funds received under the grant program to establish information
and referral systems that link kinship caregivers to the full
range of supports available to them; conduct outreach
activities in collaboration with other relevant organizations
to link kinship care families to the kinship navigator program;
prepare, distribute, and updating kinship care resource guides,
websites or other relevant outreach materials; and promote
partnerships between public and private agencies to help those
agencies better meet the needs of kinship care families and to
familiarize them with the special needs of those families.
Additional activities that the Committee Bill permits grant
funds to be used for include establishment and support of a
``kinship care ombudsman,'' as well as, to provide support for
``other activities'' designed to assist caregivers in obtaining
benefits and services and those intended to improve their care
giving.
As provided by the Committee Bill, entities eligible to
apply for kinship navigator grants are tribal organizations,
and public or private agencies of a State, or those serving a
large metropolitan area, that have experience addressing the
needs of kinship caregivers or children. The Committee Bill
requires entities seeking kinship navigator grant funds to
include specific information in their grant application
concerning planning for, providing, and reporting on services
and activities under the kinship navigator program. It further
stipulates that any grant funds received must not generally be
used to provide direct services to children or their kinship
caregivers. And also that not more than 50 percent of any non-
Federal share of the program costs, may be provided by grantees
in-kind and fairly evaluated (including plant, equipment, or
services).
The Committee Bill provides that the kinship navigator
grants are to be administered by the Administration for
Children and Families (ACF) within the HHS and that in doing so
ACF must periodically consult with the Administration on Aging
(of HHS). In addition, the Committee Bill stipulates that ACF
must use no less than 50 percent of the funds appropriated for
kinship navigator programs to award grants to State agencies
and, also requires ACF to give preference for grants to
applicants that demonstrate the capacity to offer the full
range of services and activities for which funds may be used.
As part of a final report to ACF on services and activities
funded by the grant, a grantee must describe to ACF its plans
for continuing the kinship navigator program after the
expiration of the Federal grant. ACF would be permitted to
reserve up to 1 percent of any of the funds appropriated to
provide technical assistance to grantees related to the
purposes of the kinship navigator program. The Committee Bill
establishes this grant authority and funding in a new Section
427 of the Social Security Act.
Section 204--Authority for Comparisons and Disclosures of Information
in the Federal Parent Locator Service for Child Welfare, Foster Care
and Adoption Assistance Purposes
CURRENT LAW
The Federal Parent Locator Service (FPLS) is a national
computerized locator system that consists of the National
Directory of New Hires and the Federal Child Support Case
Registry. It also can provide access to certain information
stored in other agencies including the Internal Revenue
Service, the Social Security Administration, the Department of
Veterans Affairs, the Department of Defense, the Federal Bureau
of Investigation, the National Personnel Records Center and the
State Employment Securities Agencies. HHS is required to
compare information in the multiple components of the FPLS to
find instances in which a comparison reveals a match to an
individual, and to disclose such information (e.g., addresses
and employer information) to the agencies that administer Child
Support Enforcement (under Title IV-D) and the Temporary
Assistance for Needy Families (TANF) block grant (under Title
IV-A). HHS is permitted to make these comparisons to the
extent, and with the frequency, it determines to be effective
in assisting States in administering those programs.
COMMITTEE BILL
The Committee Bill additionally requires HHS to provide
this same assistance to State child welfare agencies (that
administer programs under Title IV-B or Title IV-E).
TITLE III--TRIBAL FOSTER CARE AND ADOPTION ACCESS
Section 301--Equitable Access for Foster Care and Adoption Services for
Indian Children in Tribal Areas
Authority for direct payment of Federal Title IV-E funds for programs
operated by Indian tribal organizations
CURRENT LAW
States with a Title IV-E foster care and adoption
assistance plan that is approved by HHS are entitled to receive
Federal reimbursement for eligible costs associated with
operating those programs. Tribes are not permitted to submit
such a plan to HHS and may not receive direct Federal funding
under Title IV-E.
COMMITTEE BILL
The Committee Bill establishes direct access to tribes for
Federal foster care and adoption assistance funding by
permitting an Indian tribe, tribal organization, or tribal
consortium to submit a Title IV-E foster care and adoption
assistance plan to HHS for approval. The Committee Bill creates
a new Section 479B of the Social Security Act, which sets out
the following law with regard to the tribal foster care and
adoption assistance programs:
Definitions
CURRENT LAW
The Indian Self Determination and Education Assistance Act
(Section 4) defines an Indian tribe as any Federally recognized
band, nation, or other organized group or community (including
certain Alaska Native Villages or regional or village
corporations) that is recognized as eligible for the special
programs and services provided by the United States to Indians
because of their status as Indians. And it defines a ``tribal
organization'' as the recognized governing body of any Indian
tribe.
COMMITTEE BILL
The Committee Bill defines ``Indian tribe'' and ``tribal
organization'' as they are defined in the Indian Self
Determination and Assistance Act.
Authority
CURRENT LAW
No provision.
COMMITTEE BILL
Unless explicitly spelled out differently in the tribal
provisions of Title IV-E (which the Committee Bill creates in
Section 479B), the Committee Bill makes all aspects of Title
IV-E applicable to any Indian tribe, tribal organization, or
tribal consortium, in the same manner as they apply to States,
provided that the tribal entity is operating a Title IV-E
foster care and adoption assistance program under a plan
approved by HHS.
Plan requirements
CURRENT LAW
A State's Title IV-E foster care and adoption assistance
plan must meet numerous requirements, which are specified in
Section 471 of the Social Security Act. Among these are
requirements related to provision of foster care and adoption
assistance to eligible children and Statewide operation of the
program. Under Federal regulations States may not use
affadavits or nunc pro tunc orders to retroactively establish
that a child's removal from his or her home was a result of a
judicial determination that the home was ``contrary to the
welfare'' of that child. Further, as part of seeking Federal
reimbursement for the foster care and adoption assistance
program, States are required by Federal regulation to have an
HHS-approved cost allocation plan that details the costs that
will be assigned to the program and how Federal reimbursement
will be sought. States are not permitted to claim Title IV-E
costs based on in-kind expenditures from third party sources.
COMMITTEE BILL
The Committee Bill requires an eligible tribal entity
seeking to operate a Federal foster care and adoption
assistance plan to submit a plan for approval to HHS that meets
the requirements of Section 471 with the following
modifications and addition.
Financial Management: An Indian tribe, tribal organization,
or tribal consortium seeking to operate a foster care and
adoption assistance program must include in its plan evidence
that that it has not had any uncorrected significant or
material audit exceptions under Federal grants or contracts
that directly relate to the administration of social services
for the 3-year period before the date on which it submits the
plan.
Service Area: The tribal entity's plan must also describe
the service area or areas and populations to be served under
that plan and include an assurance that the plan will be in
effect in all those areas and for all populations to be served.
Eligibility: The tribal entity's plan must include an
assurance that it will make foster care maintenance payments,
adoption assistance payments, and (at the option of the tribal
entity) relative guardianship assistance payments only on
behalf of children who meet the Federal eligibility
requirements. The Committee Bill further specifies that the
AFDC rules that apply for a child that will be served under a
tribal plan are the same rules that applied in the State in
which the child resided when he or she was removed from the
home. Further, for only the first 12 months in which a tribal
entity operates a Title IV-E foster care and adoption
assistance program under a plan approved by HHS, the tribe may
use either affidavits or nunc pro tunc orders to retroactively
verify that a child's removal from his/her home occurred
because of a judge's determination that the home was contrary
to the welfare of the child.
In-Kind Expenditure Claims: For FY2010 through FY2014 only,
the tribal entity's plan must include a list of the in-kind
expenditures and their third party sources that the tribal
entity may claim for purposes of seeking Federal reimbursement
of administrative costs under the foster care and adoption
assistance plan, including training costs. The Committee Bill
prohibits any interpretation of its tribal in-kind claiming
rules that would prevent a tribal entity from making an in-kind
expenditure claim that a State with an HHS-approved foster care
and adoption assistance plan can make. After this stipulation,
the Committee Bill establishes the following special rules
related to in-kind expenditures from third party sources for
tribal entities operating an HHS-approved foster care and
adoption assistance plan: (1) For expenditures in FY2010 and
FY2011, a tribal entity may claim not more than 25 percent of
its total foster care and adoption assistance program
administrative costs (excluding training costs) and not more
than 12 percent of its total program training costs, as in-kind
expenditures from third party sources. (2) For expenditures in
FY2010 and FY2011, with regard to training costs only, the
third party sources of the in-kind expenditures must be listed
in the tribal entity's plan and those sources must be limited
to one or more of the following entities: a State or local
government, a tribal entity other than the one making the claim
under Title IV-E, a public institution of higher education, a
tribal college or university, and a private charitable
organization. (3) In general, for expenditures in FY2012,
FY2013, and FY2014, a tribal entity may only claim
reimbursement for in-kind expenditures from third party sources
in accordance with regulations promulgated by HHS and those
regulations must specify the allowable third party sources and
the applicable share of tribal program costs that may be made
as in-kind expenditures of third party sources. However, a
tribal entity with a foster care and adoption assistance
program plan that was approved by HHS for FY2010 or FY2011 must
not be required to comply with any regulations on this issue
before the first day of FY2013. (4) If HHS does not produce
regulations on tribal claiming of in-kind expenditures from
third party sources by FY2013, and no legislation has been
enacted specifying otherwise, then for FY2012, FY2013 and
FY2014, the special rules that applied for FY2010 and FY2011
claims apply. However, beginning in FY2015, no claims for in-
kind expenditures from third party sources may be made by any
tribal entity (unless a State could make such a claim).
Clarification of tribal authority to establish standards for tribal
foster family homes and tribal child care institutions
CURRENT LAW
Each State is required, as a part of its foster care and
adoption assistance program, to designate or create an
authority (or authorities) to establish standards for licensing
or approving any foster family homes or child care institution
that receives Federal Title IV-E or Title IV-B funds for the
care of a foster child.
COMMITTEE BILL
The Committee Bill clarifies that in complying with this
requirement, the Indian tribe, tribal organization, or tribal
consortium must establish a tribal authority (or authorities),
which are responsible to maintain tribal standards for tribal
foster family homes and tribal child care institutions.
Consortium
CURRENT LAW
No provision.
COMMITTEE BILL
The Committee Bill provides that participating Indian
tribes or tribal organizations of a tribal consortium may
develop and submit a single Title IV-E foster care and adoption
assistance plan that meets the requirements for HHS approval.
Determination of Federal Medical Assistance Percentage for foster care
maintenance and adoption assistance payments
CURRENT LAW
In general, each State has a Federal Medical Assistance
Percentage (FMAP)--sometimes called the ``Medicaid matching
rate''--which is used to determine the share of a State's
eligible foster care maintenance and adoption assistance
payments that will be reimbursed by the Federal Government. A
State's FMAP may range from 50 percent (for States with highest
per capita income) to 83 percent (for States with lowest per
capita income).
COMMITTEE BILL
The Committee Bill provides that the per capita income of
the service population of a tribal entity operating a plan
under Title IV-E must be used to determine that tribal entity's
Federal reimbursement rate (or FMAP) for foster care
maintenance, adoption assistance, and relative guardianship
assistance payments. However, in no case may the reimbursement
rate of the tribal entity be less then the FMAP of any State in
which it is located. Further, HHS must consider any information
submitted by a tribal entity as relevant to the calculation of
that tribal entity's per capita income.
Non-application to cooperative agreements and contracts
CURRENT LAW
States that operate Title IV-E foster care and adoption
assistance programs may enter into agreements with other public
agencies to provide foster care to children. (As of March 2008,
there were approximately 86 tribal-State Title IV-E agreements
in effect, involving 11 States.)
COMMITTEE BILL
The Committee Bill provides that any cooperative agreement
or contract entered into between a State and tribal entity for
the administration of foster care and adoption assistance
program, or payment of funds under Title IV-E, must remain in
full force and effect upon enactment of the Committee Bill
(subject to the right of either party to revoke or modify the
agreement according to the terms of the agreement). The
Committee Bill also prohibits any interpretation of its
provisions of its section related to ``Tribal Access to Foster
Care and Adoption'' that affects the authority of a tribal
entity and a State to enter into a cooperative agreement or
contract for the administration of foster care and adoption
assistance program or payment of Title IV-E funds.
Rule of construction (application of Medicaid eligibility)
CURRENT LAW
Children who are eligible for assistance under the Title
IV-E foster care and adoption assistance program are made
categorically eligible for Medicaid.
COMMITTEE BILL
The Committee Bill ensures that categorical eligibility for
Medicaid continues to be available to children who are eligible
for a Federal foster care maintenance payment, adoption
assistance payment, or relative guardianship assistance payment
under a tribal entity's Title IV-E foster care and adoption
assistance plan approved by HHS.
Conforming amendment (eligibility of children under tribal care and
placement)
CURRENT LAW
To be eligible to receive Federal foster care assistance, a
child's care and placement must be the responsibility of (1)
the State child welfare agency, which administers the Title IV-
E foster care and adoption assistance program, or (2) any other
public agency with which the State child welfare agency has an
agreement.
COMMITTEE BILL
The Committee Bill additionally permits eligibility for any
child whose care and placement is the responsibility of an
Indian tribe, tribal organization, or tribal consortium that
has a Title IV-E foster care and adoption assistance plan
approved by HHS.
John H. Chafee Foster Care Independence Program
CURRENT LAW
States receive a share of capped mandatory funding to
provide independent living services to youth who are expected
to remain in foster care until their 18th birthday and to youth
who have emancipated from foster care (until their 21st
birthday). They also receive a share of any discretionary
appropriations provided for Education and Training Vouchers to
support the postsecondary education (or comparable training) of
older foster youth. A State must apply to receive funding under
the Chafee Foster Care Independence Program and must meet
certain planning requirements and certifications as a part of
the applications. HHS must pay to each State, the lesser of 80
percent of its Chafee Program cost (including those for
Education and Training Vouchers) or the State's full allotment
under these funding streams. A State's allotment of funds out
of the mandatory Chafee funding ($140 million annually) is
based on its relative share of the national foster child
population, except that no State may receive less then $500,000
or the amount of funding they received for independent living
services in FY1998. A State's allotment of any discretionary
funding appropriated for Education and Training Vouchers
(FY2008 funding = $45 million) is based entirely on its
relative share of the national foster care caseload.
COMMITTEE BILL
The Committee Bill provides that the Title IV-E provisions
related to the Chafee Foster Care Independence Program
(including the associated Education and Training Vouchers) do
not apply to tribes except as described in the Committee Bill.
Application of Chafee Foster Care Independence Program to
Tribes: An Indian tribe, tribal organization, or tribal
consortium with a Title IV-E foster care and adoption
assistance plan approved by HHS, or one that is receiving
funding to provide foster care pursuant to a tribal-State Title
IV-E agreement or contract, may apply directly to HHS for an
allotment of Chafee Foster Care Independence Program funds and/
or Education and Training Voucher funds. The tribal entity's
application must include a plan for providing independent
living services that satisfies the planning and certification
requirements made of States that HHS determines appropriate for
the tribal entity. In addition, the application must describe
the tribal entity's consultation process with all relevant
State(s). In particular, it must include the results of the
consultation with regard to determining Indian children's
eligibility for benefits and services under a tribal entity's
program and the process for ensuring continuity of benefits and
services for children who will transition from State-planned
independent living benefits and services to tribal-planned
independent living benefits and services.
Payment and Allotment: The Committee Bill requires HHS to
make payments to each tribal entity with an approved
application in the same manner that it makes these payments to
States, unless the agency determines that another manner is
more appropriate. (However, in no case may a tribal entity
receive less than 80 percent of its program costs.) The
allotment amount for each tribal entity is based on the share
of children in the tribal entity's foster care population
relative to the total number of children in foster care in the
State (whether under the care and placement responsibility of
the State or of any tribal entity in the State with an approved
application for general Chafee independent living funds and/or
Education and Training Voucher funds. (For example if there are
1,000 children in foster care in the State and 50 of those
children are in the tribal entity's care and placement
responsibility, then 5 percent of the State allotment of Chafee
and/or Education and Training Voucher funds must be allotted to
the tribal entity.) The Committee Bill provides that any
allotment amount for a tribal entity under the general Chafee
program and/or Education and Training Vouchers program must be
considered a part of a State's allotment of those program
funds.
State and tribal cooperation
CURRENT LAW
There is no foster care and adoption assistance State plan
requirement (under Title IV-E) that a State and tribe must
cooperate in the provision of services to eligible children.
Under the Chafee Foster Care Independence Program, however, a
State must certify that it has consulted with each Indian tribe
located within its borders about its planned independent living
programs, that efforts to coordinate the programs with these
tribe(s) have been made, and that the benefits and services it
provides under the programs will be made available to Indian
children in the State on the same basis as to other children.
COMMITTEE BILL
The Committee Bill requires a State, as part of its Title
IV-E foster care and adoption assistance plan, to provide that
it will negotiate in good faith with any Indian tribe, tribal
organization, or tribal consortium that asks to develop an
agreement with the State under which (1) Federal (Title IV-E)
payments would be available for children who are under tribal
authority and who are placed for adoption, in foster family
homes licensed by tribes, or with relative guardians; and (2)
the tribe, organization, or consortium also has access to
Federal Title IV-E resources for related program
administration, training, and data costs.
In addition to the current certification related to Indian
tribes, the Committee Bill requires a State as part of its
application for Chafee Foster Care Independence Program funds
to further certify that it will negotiate in good faith with
any Indian tribe, tribal organization, or tribal consortium
that does not receive a direct allotment of Federal funding
under the program, but which seeks to develop an agreement of
contract with the State to administer, supervise, or oversee
Chafee independent living services for eligible children under
tribal authority and to receive an appropriate portion of the
State's allotment for this purpose.
Rule of construction
CURRENT LAW
No provision.
COMMITTEE BILL
The Committee Bill prohibits any interpretation of its
provisions on ``Tribal Foster Care and Adoption Access'' that
permits termination of funding to any Indian or Indian family
receiving foster care or adoption assistance payments on a
child's behalf, if those payments are being received as of the
date of enactment of the bill and the State is claiming Federal
reimbursement for a part of those payments. This rule of
construction must remain true without regard to whether a
cooperative agreement between the State and the tribe is in
effect on the date of the bill's enactment or whether the
tribal entity chooses, after the date of enactment, to directly
operate a Title IV-E foster care and adoption assistance
program.
The Committee Bill further prohibits any interpretation of
its Tribal Foster Care and Adoption Access provisions that
affects the responsibility of a State as part of its Title IV-E
foster care and adoption assistance plan to provide Federal
foster care maintenance payments, adoption assistance payments,
and if it elects, relative guardianship assistance payments,
for Indian children who are eligible for such payments and who
are not otherwise being served by a tribal entity (either
pursuant to a cooperative agreement with the State or under an
HHS-approved foster care and adoption assistance plan of the
tribal entity). Neither may it be interpreted as affecting the
responsibility of a State to administer, supervise or oversee
independent living programs under the Chafee Foster Care
Independence Program on behalf of eligible Indian children who
are not otherwise being served by a tribal entity with an
approved Chafee plan or under a cooperative agreement or
contract with the State.
Regulations
CURRENT LAW
No provisions.
COMMITTEE BILL
General Regulations: Except with regard to the in-kind
claiming provisions (see below), the Committee Bill requires
HHS to consult with Indian tribes, tribal organizations, tribal
consortia and affected States and, within one year of their
enactment, to promulgate interim final regulations to carry out
the Tribal Foster Care and Adoption Access provisions of the
Committee Bill. These regulations must include procedures that
ensure that a transfer of a child from State care and placement
responsibility to tribal care and responsibility (whether under
that tribal entity's foster care and adoption assistance plan
approved by HHS or via a cooperative agreement with a State)
affects neither that child's eligibility for Medicaid nor his
or her eligibility for Federal payments or any services under
Title IV-E.
Regulations for In-Kind Expenditures: Not later than
September 30, 2010, the Committee Bill requires HHS, in
consultation with Indian tribes, tribal organizations, and
tribal consortia, to promulgate interim final regulations to
specify the types of in-kind expenditures, and the third-party
sources for such in-kind expenditures, that may be claimed by
tribal entities operating an approved foster care and adoption
assistance plan under Title IV-E. Those regulations must also
specify the share of non-Federal Title IV-E funds that tribal
entities may claim as in-kind expenditures from third-party
sources for purposes of receiving Federal reimbursement of
Title IV-E administrative costs, including training costs. The
Committee Bill adds that the regulations regarding in-kind
expenditures may not be in effect before the first day of
FY2011 (October 1, 2010). Finally, the Committee Bill includes
a ``Sense of the Senate'' that if HHS fails to formally publish
these required regulations, Congress should enact legislation
to specify the in-kind expenditures from third-party sources,
and the share of non-Federal program costs those expenditures
may represent and that tribal entities operating an HHS-
approved foster care and adoption assistance program may claim.
EFFECTIVE DATE
The Tribal Foster Care and Adoption Access section of the
Committee Bill is effective as of the first day of FY2010
(October 1, 2009), without regard to whether the regulations
required by the section have been promulgated by that date.
Section 302--Grants to States That Successfully Collaborate With and
Support Tribes To Improve Permanency Outcomes for Indian Children
CURRENT LAW
States are required as part of their plan for Child Welfare
Services (Title IV-B, subpart 1) to consult with tribal
organizations and to describe the specific measures taken to
comply with the Indian Child Welfare Act. Under the Chafee
Foster Care Independence Program (Section 477), States must
certify that they have consulted with and sought to cooperate
with tribes in the provision of independent living services.
COMMITTEE BILL
Grant Authority and Definition of Indian Children: The
Committee Bill creates a new Section 479C of the Social
Security Act that requires HHS, in each of FY2010 through
FY2014, to make grants to States that successfully collaborate
with tribes to improve the services and permanency outcomes for
Indian children and their families. For purposes of this grant,
Indian children are defined as those children who are members
of, enrolled in, or affiliated with a tribe, OR children who
are eligible for membership, enrollment, or affiliation with a
tribe.
Eligible States: The Committee Bill provides that any State
seeking a Successful Collaboration and Tribal Support grant
must submit to HHS the following (in the manner and form
requested by the agency): (1) Evidence of collaboration by the
State with Indian tribes, tribal organizations, or tribal
consortia to plan for and ensure access to services and
supports for Indian children and their families. At a minimum
this must include evidence of consultation with tribal
organizations and specific measures taken to comply with the
Indian Child Welfare Act (as now required under Title IV-B),
and evidence of the consultation and good faith negotiation
efforts required under the State foster care and adoption
assistance plan (as added by the Committee Bill) and the State
application for the Chafee Foster Care Independence Program (as
amended by the Committee Bill); (2) Evidence that the State has
obtained from HHS, or is engaged in accessing technical
assistance (including through the National Child Welfare
Resource Center for Tribes, established in the Committee Bill)
to improve services and permanency outcomes for Indian children
and their families through improved identification of Indian
children, increased recruitment of Indian foster family homes,
and improved rates of family reunification, legal or relative
guardianships, or adoptive homes; and (3) Evidence of improved
outcomes for Indian children and their families and any other
data HHS may require for verification that an improvement,
appropriate for Indian children and their families, has been
achieved.
Amount of Grant: The Committee Bill provides that based on
this evidence, every State found eligible by HHS for a
Successful Collaboration and Tribal Support Grant (in a given
grant year) must receive a portion of the total grant funding
provided. And that the amount for each eligible State must be
based on the number of Indian children in the State relative to
the number of Indian children in all of the States found to be
eligible for a Successful Collaboration and Tribal Support
grant.
Appropriation: The Committee Bill appropriates $5 million
to HHS to make these grants in each of FY2010 through FY2014.
Section 303--Establishment of National Child Welfare Resource Center
for Tribes
CURRENT LAW
No provision.
COMMITTEE BILL
The Committee Bill creates a new Section 479D of the Social
Security Act that requires HHS to establish a National Child
Welfare Resource Center for Tribes that is ``specifically and
exclusively'' dedicated to meeting the needs of Indian tribes,
tribal organizations, tribal consortia and States in improving
services and permanency outcomes for Indian children and their
families.
The Committee Bill provides that this resource center
must--(1) provide information, advice, educational materials,
and technical assistance to Indian tribes and tribal
organizations regarding the types of services, administrative
functions, data collection, program management, and reporting
that are provided for under the child and family services
programs of Title IV-B and the foster care and adoption
assistance program of Title IV-E; (2) assist and provide
technical information to tribes, organization or consortia
seeking to operate programs under Title IV-B or Title IV-E; and
(3) assist and provide technical assistance to those tribal
entities and States seeking to develop cooperative agreements
under Title IV-E or to meet the requirements (included in Title
IV-B or Title IV-E) that are related to State and tribal
consultation or good faith negotiations (as added by the
Committee Bill).
The Committee Bill permits HHS to directly establish the
National Child Welfare Resource Center for Tribes, or to
establish it through a grant or contract with a public or
private organization that is knowledgable in the field of
Indian tribal affairs and child welfare. The Committee Bill
appropriates $1 million in each of FY2009 through FY2013 for
this resource center.
TITLE IV--SUPPORT FOR OLDER CHILDREN IN FOSTER CARE AND OTHER
PROVISIONS
Section 401--State Option for Children in Foster Care or in an Adoptive
or Relative Guardianship Placement After Attaining Age 18
Definition of child
CURRENT LAW
There is no definition of ``child'' for purposes of the
child welfare programs authorized under Title IV-E or Title IV-
B of the Social Security Act. In general, a child may no longer
be eligible for Federal foster care maintenance payments or
adoption assistance payments once he or she has attained 18
years of age. However, in the case of a foster care maintenance
payment, a child who at his or her 18th birthday is still a
fulltime high school student (and who can reasonably be
expected to complete this degree) may remain eligible until his
or her 19th birthday. Further, in the case of a child on whose
behalf adoption assistance payments are being made, if a State
determines that the child has a ``mental or physical handicap''
that warrants continued assistance, it may continue to provide
these payments until the child's 21st birthday.
COMMITTEE BILL
The Committee Bill defines a child, for purposes of Title
IV-E or Title IV-B, as an individual who has not reached his or
her 18th birthday--except for certain individuals (as described
in the following sentences). The Committee Bill permits States
to define as a ``child,''--and thus to provide Federal foster
care maintenance payments, adoption assistance payments, and/or
relative guardianship payments to--otherwise eligible
individuals who have reached their 18th birthdays but who have
not yet reached their 19th, 20th or 21st birthday (whichever
highest age the State chooses). The Committee Bill provides,
however that to be eligible for continued adoption assistance
or relative guardianship assistance agreements under this
definition, the child must have been adopted or placed in
guardianship out of foster after reaching his/her 16th
birthday. Further, to be defined as a ``child'' (and thus to
remain eligible for Federal foster care maintenance, adoption
assistance, or relative guardianship assistance payments) after
reaching his or her 18th birthday, the individual must be--(1)
completing high school; (2) enrolled in college (or equivalent
vocational education); (3) participating in a program or
activity designed to promote employment or remove barriers to
employment; (4) employed at least 80 hours per month; or (5)
determined by the State to be ``particularly vulnerable'' or
``a high-risk individual.''
Conforming amendment to definition of child care institution
CURRENT LAW
To be eligible for Federal foster care maintenance
payments, a child must be living in a foster family home or in
a ``child-care institution.''
COMMITTEE BILL
The Committee Bill amends the definition of ``child care
institution'' to include--but only in the case of a child in
foster care who is at least 18 years of age--a ``supervised
setting in which the individual is living independently'' in
accordance with the conditions that HHS must establish in
regulation.
Conforming amendments to age limits applicable to children eligible for
adoption assistance ore relative guardianship
CURRENT LAW
Prohibits payment of Federal adoption assistance to any
child who has reached age 18, unless the State determines that
the assistance is warranted due to the child's physical or
mental handicap. Further prohibits payment of Federal adoption
assistance on behalf of a child, if the State determines that
the parents are no longer legally responsible for the child or
the child is no longer receiving support from the parents.
Parents who are receiving adoption assistance on behalf of a
child are required to keep the State or local child welfare
agency informed of circumstances that would make them
ineligible to receive further adoption assistance on the
child's behalf or which would make them eligible to receive
adoption assistance payments for the child in a different
amount.
COMMITTEE BILL
In general, the Committee Bill restates all of these
provisions so that they also apply to relative guardianship
payments (or to relative guardians as applicable). However,
consistent with the new definition of child, the Committee Bill
also notes that a State may elect to provide adoption
assistance and relative guardianship assistance payments to a
child after his or her 18th birthday (and before his/her 21st
birthday) consistent with the rules described above (see
``Definition of Child'').
EFFECTIVE DATE
The Committee Bill makes the provisions related to the
``State Option for Children in Foster Care or in Adoptive or
Relative Guardianship After Attaining Age 18'' effective with
the first day of FY2011 (October 1, 2010).
Section 402--Transition Plan for Children Aging Out of Foster Care
CURRENT LAW
A State is required to have in place a case review system
for each child in foster care to, among other things,
periodically review the child's status in foster care and to
develop and carry out a permanency plan for the child.
COMMITTEE BILL
The Committee Bill amends the definition of a case review
system to require that--during the 90-day period immediately
before a child legally emancipates (whether during that period
the child is receiving a foster care maintenance payment, or
benefits or services under Section 477)--the child's
caseworker, and other representatives as appropriate, must help
the child develop a personal transition plan. The plan must be
as detailed as the child chooses and include specific options
on housing, health insurance, education, local opportunities
for mentoring, continuing support services, work force supports
and employment services.
EFFECTIVE DATE
In general, the amendments made regarding a ``Transition
Plan for Children Aging Out of Foster Care'' are effective on
October 1, 2008. However HHS may delay required compliance for
any State that it determines must enact legislation (other then
legislation to appropriate funds) to meet this additional
requirement.
Section 403--Educational Stability
Educational stability
CURRENT LAW
A State is required to maintain an individual written case
plan for each child in foster care. Among other things, this
case plan must include the child's health and education records
with an assurance that the child's placement in foster care
takes into account proximity to the school in which the child
is enrolled at the time of the placement.
COMMITTEE BILL
The Committee Bill maintains all of these current law
requirements but additionally requires the State child welfare
agency to include in each child's case plan an assurance that
it has coordinated with local educational agencies to ensure
that the child remains in the school where he/she is enrolled
at the time of placement into foster care OR, if remaining in
that school is not in the child's best interests, assurances
that the State child welfare agency and the local educational
agencies provide immediate and appropriate enrollment in a new
school, with all of the educational records of the child
provided to that school.
Transportation to school of origin
CURRENT LAW
Under Title IV-E, States are entitled to receive Federal
reimbursement at their Federal Medical Assistance Percentage
(FMAP), which ranges from 50 percent in States with the highest
per capita incomes to 83 percent in States with the lowest per
capita income, for the cost of providing foster care
maintenance payments on behalf of an eligible child. The
definition of a ``foster care maintenance payment'' includes
payments for ``food, clothing, shelter, daily supervision,
school supplies, a child's personal incidentals, liability
insurance with respect to a child, and reasonable travel to the
child's home for visitation.''
States are also entitled to receive Federal reimbursement
of 50 percent of their costs related to the ``proper and
efficient'' administration of their Title IV-E foster care
program. (HHS has recently provided guidance to States
indicating that transportation of a child in foster care to and
from his/her school of origin is a Title IV-E administrative
function and, thus, that 50 percent of the costs of this
transportation may be claimed as a Title IV-E administrative
cost.
COMMITTEE BILL
The Committee Bill would amend the definition of ``foster
care maintenance payment'' to permit States to claim
reimbursement (for eligible children), at their FMAP, for the
cost of ``reasonable travel for the child to remain in the
school in which the child is enrolled at the time of
placement'' in foster care.
Educational attendance
CURRENT LAW
The law requires each child on whose behalf Federal foster
care maintenance payments or adoption assistance payments are
made to meet certain Federal eligibility requirements.
COMMITTEE BILL
The Committee Bill adds a new condition of eligibility for
Federal foster care maintenance payments, adoption assistance
payments, or relative guardianship assistance payments (as
authorized by the Committee Bill). The Committee Bill requires
a State to provide assurances that each child who has reached
the minimum age of compulsory school attendance in his/her
State and who is receiving a foster care maintenance payment,
adoption assistance payment, or relative guardianship payment
is a full-time elementary or secondary school student, or has
completed high school. The Committee Bill defines a full-time
elementary or secondary school student to include a child who
is enrolled at a secondary, or elementary school, or one who is
receiving home school instruction or participating in
independent study, provided that enrollment, home schooling or
independent study is done in accordance with the law of the
State or relevant jurisdiction. Finally, the Committee Bill
defines a full-time elementary and secondary student to include
children who are incapable of attending school on a full-time
basis due to a medical condition, if this fact is supported by
regularly updated information in the child's required case
plan.
EFFECTIVE DATE
The Committee Bill makes the provisions of the section on
``Educational Stability'' effective on the first day of FY2009
(October 1, 2008). However, HHS may delay required compliance
for any State that it determines must enact legislation (other
then legislation to appropriate funds) to meet this additional
requirement.
TITLE V--REVENUE PROVISIONS
Section 501--Clarification of Uniform Definition of Child
Child must be younger than claimant
CURRENT LAW
The Internal Revenue Code provides a uniform definition of
``qualifying child for purposes of the dependency exemption,
the child credit, the earned income credit, the dependent care
credit, and head of household filing status. There are four
basic criteria to determine if an individual is the qualifying
child of a taxpayer: (1) the individual must have a specific
relationship to the taxpayer (son, daughter, foster child,
stepchild, brother, sister, stepbrother, stepsister, half
brother, half sister, or descendant of any of them); (2) the
individual must be less than 19 years of age at the end of the
year, unless the individual is a full-time student, in which
case the individual must be less than 24 at the end of the
year; (3) the individual must have lived with the taxpayer for
more than one-half the tax year; and (4) the individual must
not have provided more than one-half of his or her own support
for the tax year. There is no current law requirement that a
qualifying child of a taxpayer be younger than the taxpayer.
COMMITTEE BILL
The Committee Bill provides that for an individual to be
the qualifying child of a taxpayer, the child must (in addition
to meeting the current law age requirements) be younger than
the taxpayer.
Marital status of the child
CURRENT LAW
There is no requirement in the Internal Revenue Code that
an individual be unmarried to be the qualifying child of a
taxpayer.
COMMITTEE BILL
The Committee Bill provides that for an individual to be
the qualifying child of a taxpayer, the individual must have
not filed a joint tax return with another taxpayer, other than
to file a refund claim.
Child credit available only if qualifying child is dependent of the
taxpayer
CURRENT LAW
The Internal Revenue Code provides that a taxpayer may
claim a child tax credit (of up to $1,000) for each qualifying
child of the taxpayer. There is no requirement that the
qualifying child be a dependent of the taxpayer.
COMMITTEE BILL
The Committee Bill requires that for purposes of claiming
the child tax credit a qualifying child must be a dependent of
the taxpayer.
Persons other than parents claiming qualifying child
CURRENT LAW
Under the Internal Revenue Code, the following rules apply
with regard to who may claim an individual as a qualifying
child: (1) In cases where the individual is claimed as the
qualifying child of two or more taxpayers, the individual is
the qualifying child of the parent; (2) If both taxpayers
claiming the individual as a qualifying child are the
individual's parents, the individual is claimed as the
qualifying child of the parent the individual resided with the
longest during the tax year; (3) If the individual resided with
both parents for the same amount of time, the individual is the
qualifying child of the parent with the higher adjusted gross
income; (4) If neither of the taxpayers claiming the individual
as a qualifying child are the individual's parents, the
individual is the qualifying child of the taxpayer with the
highest adjusted gross income.
COMMITTEE BILL
The Committee Bill provides that for an individual to be
claimed as the qualifying child of a taxpayer who is not the
individual's parent, the taxpayer must have an adjusted gross
income that is higher than the highest adjusted gross income of
each of the individual's parents.
EFFECTIVE DATE
The Committee Bill makes the amendments in this section
related to ``Clarification of Uniform Definition of Child,''
effective with tax year 2009 (beginning after December 31,
2008).
Section 502--Collection Of Unemployment Compensation Debts Resulting
From Fraud
Collection of unemployment compensation debts resulting from fraud
CURRENT LAW
Section 6402 of the Internal Revenue Code (I.R.C.) allows
the Treasury Department to credit overpayments (and interest)
against any liability with respect to an internal revenue tax
on the part of the person who made the overpayment (subject to
credits against estimated tax under certain circumstances.
These circumstances are the following: to offset past-due child
support payments that have been assigned to the State;
collection of debts owed to Federal agencies; and collection of
past-due and legally enforceable State income tax obligations).
COMMITTEE BILL
The Committee Bill allows the Treasury Department, under
certain circumstances, to reduce any Federal income tax
overpayments by the collection of covered State unemployment
compensation (UC) debts if the debt is on account of fraud and
to pay the State by the amount of such debts. The Treasury
Department would notify the State of such person's name,
taxpayer identification number, address, and the amount
collected. The Treasury Department would also notify the person
making such overpayment that the overpayment had been reduced
by an amount necessary to satisfy a covered unemployment
compensation debt. If an offset is made to a joint return, the
notice would include information related to the rights of a
spouse of a person subject to such an offset.
The Committee Bill sets the priority order of the
reductions as: internal revenue tax liability; past due child
support; Federal agency debt; and, finally, the collection of
past-due and legally enforceable State income tax obligations
and covered UC debts on account of fraud. The reductions would
occur before any such overpayment would be credited to future
Federal internal revenue tax.
The Committee Bill requires that the reduction on account
of UC debt apply only to those persons whose address shown on
the Federal return is an address within the State seeking the
offset.
The Committee Bill requires that States must:
notify the individual of the debt by
certified mail with return receipt;
allow 60 days for the individual to present
evidence that the individual does not have a legally
enforceable debt that is due to fraud;
consider the evidence presented by the
individual; and
satisfy such other conditions as the
Treasury Department may prescribe to ensure that the
determination is valid and that the State has made
reasonable efforts to obtain payment of such covered UC
debt.
The Committee Bill defines covered UC debt to be any of the
following items: past-due debt for erroneous payment of UC due
to fraud which has become final under the State's law and which
remains uncollected; contributions due to the State's
unemployment fund on account of fraud; and, any penalties and
interest assessed on such debt.
The Committee Bill allows the Treasury Department to issue
regulations on the time and manner for States to submit notices
of UC debts due to fraud. These regulations would be authorized
to include:
the setting of a minimum amount of debt for
the reduction procedure to be applied;
a required fee paid to the Treasury for the
cost of applying such reduction procedure and used to
reimburse the appropriations account that bore the cost
of applying such procedure; and
a requirement that States submit notices of
covered UC debt to the Treasury Department via the
Labor Department in accordance with procedures
established by the Labor Department where the
procedures may require States to pay a fee to the Labor
Department; those fees may be deducted from amounts
collected and used to reimburse the appropriations
account that bore the cost of collecting the notices of
covered UC debt.
The Committee Bill requires that erroneous payments to the
State must be promptly paid back to the Treasury.
Disclosure of certain information to States requesting refund offsets
for legally enforceable State unemployment compensation debt
resulting from fraud
CURRENT LAW
Paragraph (3) of section 6103(a) of the I.R.C. describes
the confidentiality and disclosure of Federal tax returns and
return information. Paragraph (3) of section 6103(a) requires
returns and return information to be confidential. Among other
items, Section 6103 authorizes the conditions under which
authorized persons, employees, or officers (who are not
Department of the Treasury officers or employees) may have
access to Federal tax returns or return information.
COMMITTEE BILL
The Committee Bill allows the disclosure of information to
officers and employees of the Department of Labor for purposes
of facilitating the exchange of data in connection with a
request made under its proposed changes in section 6402 of the
I.R.C. The Committee Bill also allows access to the information
to the Department of Labor's agents who maintain and provide
technological support to the Department of Labor's Interstate
Connection Network (ICON) solely for the purpose of providing
such maintenance and support.
Expenditures from the State fund
CURRENT LAW
Paragraph (4) of section 3304(a) of the I.R.C requires that
all money withdrawn from a State's account in the Federal
Unemployment Trust Fund be used solely for the payment of UC
benefits. Exceptions to this include sums erroneously paid into
the fund and refunds paid in accordance with the provisions of
section 3305(b). Other exceptions include (a) the amount of
employee payments into the unemployment fund of a State used in
the payment of cash benefits to individuals with respect to
their disability, exclusive of administration expenses, (b)
certain expenses incurred by the State for administration of
its unemployment compensation law and public employment
offices, (c) deduction of health insurance payments and for tax
withholding, (d) repayment of overpayments as provided in
section 303(g) of the Social Security Act, (e) payment for
short-time compensation under a plan approved by the Secretary
of Labor, and (f) the self-employed assistance program benefit.
COMMITTEE BILL
The Committee Bill authorizes that the fees from collecting
covered UC debt be deducted and that the penalties and interest
from the collections be transferred to the appropriate State
fund into which the State would have deposited such amounts had
the person owing the debt paid such amounts directly to the
State. The remainder of the collected UC debt is deposited into
the appropriate State account within the Federal Unemployment
Trust Fund.
Conforming amendments
CURRENT LAW
Not applicable.
COMMITTEE BILL
The Committee Bill amends section 6402 of the I.R.C. to
reflect the changes created by the Committee Bill.
EFFECTIVE DATE
The amendments made by the Committee Bill in the section,
``Collection of Unemployment Compensation Debts Resulting From
Fraud,'' apply to refunds payable on or after the date of its
enactment.
Section 503--Investment Of Operating Cash
CURRENT LAW
The Treasury Department is responsible for short-term
management of excess Federal operating cash, which it can
invest in short-term obligations of the United States
government or collateralized obligations of certain financial
institutions that maintain Federal Treasury tax and loan
accounts. The Treasury Department is not permitted to require
the sale of obligations by a particular person, dealer, or
financial institution.
COMMITTEE BILL
In addition to the current investment options, the
Committee Bill permits the Treasury Department to invest excess
operating cash, for not more than 90 days, in repurchase
agreements. The Committee Bill eliminates the provision that
bars the Treasury Department from requiring the sale of
obligations by a particular person, dealer, or financial
institution. Finally, the Committee Bill requires the Treasury
Department to submit to the Senate Finance and House Ways and
Means Committees, for each fiscal year, a report detailing the
investment of operating cash in obligations or repurchase
agreements, the Department's considerations of risks associated
with those investments, and actions taken to manage those
risks.
EFFECTIVE DATE
The Committee Bill makes the amendments in this section,
``Investment of Operating Cash,'' effective with the first day
of FY2009 (October 1, 2008).
III. VOTE OF THE COMMITTEE
In compliance with paragraph 7(b) of rule XXVI of Standing
Rules of the Senate, the following statements are made
concerning the vote in the Committee's consideration of the
bill.
Motion to report the bill
The bill was ordered favorably reported by a unanimous
voice vote on September 10, 2008. A quorum was present. No
amendments were voted upon.
IV. REGULATORY IMPACT STATEMENT AND RELATED MATTERS
A. Regulatory Impact
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
statement concerning the regulatory impact of the ``Improved
Adoption Incentives and Relative Guardianship Support Act of
2008.''
IMPACT ON INDIVIDUALS AND BUSINESSES
This bill extends funding for adoption incentive awards;
expands eligibility for Federal adoption assistance for
children with special needs; establishes Federal support for
States providing relative guardianship assistance; authorizes a
demonstration project for States regarding the licensing of
immediate relative foster family homes; appropriates funding
for grants to support ``Kinship Navigator'' program.
The bill also gives the Department of Health and Human
Services (DHHS) the Authority to use the Federal Parent Locator
Service for child welfare purposes; authorizes tribes to apply
for direct Federal funding under Title IV-E of the Social
Security Act; appropriates funds to establish a national child
welfare resource center for tribes and for grants to States
that successfully collaborate with tribes to improve outcomes
for Indian children. The bill provides States an option to
continue Federal support for children in placement after age
eighteen (18) but up to age twenty-one (21); and authorizes
additional activities on behalf of children in or leaving
foster care.
The bill clarifies the uniform definition of a child under
the Internal Revenue Code. Authorizes collection of
unemployment debts resulting from fraud and permits the
Treasury Department to invest excess operating cash for not
more than 90 days.
These provisions do not impose any additional paperwork or
regulatory burden on individuals or businesses.
IMPACT ON PERSONAL PRIVACY
The bill provides for services to children and families. In
the context of seeking assistance, families may be asked about
personal circumstances. The bill should not increase the amount
of personal information and paperwork required.
V. COST ESTIMATE
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 15, 2008.
Hon. Max Baucus,
Chairman, Committee on Finance,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the attached table summarizing the effects on direct
spending and revenues of S. 3038, the Improved Adoption
Incentives and Relative Guardianship Support Act of 2008, as
ordered reported by the Committee on Finance on September 10,
2008. CBO and the Joint Committee on Taxation estimate that the
effects of the bill on direct spending and revenues would
reduce budget deficits by $856 million over the 2009-2013
period and by $7 million over the 2009-2018 period. In
addition, enacting the bill would increase discretionary
spending by an estimated $175 million over the 2009-2013
period, subject to appropriation of the authorized amounts.
Pursuant to section 311 of S. Con. Res. 70, CBO estimates
that changes in direct spending and revenues from enacting S.
3038 would cause an increase in the on-budget deficit greater
than $5 billion in at least one of the 10-year periods between
2018 and 2057.
CBO has reviewed the nontax provisions of the bill (titles
I-IV and section 503) and determined that the bill would impose
intergovernmental mandates as defined in the Unfunded Mandates
Reform Act (UMRA) because it would increase the stringency of
conditions of assistance under the Foster Care and Adoption
Assistance Programs. CBO estimates, however, that the costs to
States to comply with the mandates would not exceed the
threshold established in UMRA ($68 million in 2008, as adjusted
by inflation). The nontax provisions contain no private-sector
mandates as defined in UMRA.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jonathan
Morancy.
Sincerely,
Peter R. Orszag,
Director.
Attachment.
ESTIMATED EFFECTS ON DIRECT SPENDING AND REVENUES OF S. 3038, AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FINANCE ON SEPTEMBER 10, 2008
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------------------------------------
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009-2013 2009-2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Promotion of Adoption:
Estimated Budget Authority 0 0 5 30 95 196 309 437 580 739 131 2,392
Estimated Outlays......... 0 0 5 27 88 184 295 421 562 719 120 2,302
Uniform Definition of a Child
1
Estimated Budget Authority -6 -175 -167 -138 -142 -146 -150 -154 -159 -164 -628 -1,402
Estimated Outlays......... -6 -175 -167 -138 -142 -146 -150 -154 -159 -164 -628 -1,402
Guardianship Assistance:
Estimated Budget Authority 1 0 -7 -21 -40 -72 -116 -153 -191 -229 -67 -828
Estimated Outlays......... 1 0 -6 -19 -37 -67 -110 -147 -185 -223 -60 -791
Extend Programs to Age 21:
Estimated Budget Authority 0 0 35 66 84 106 106 104 101 97 184 699
Estimated outlays......... 0 0 31 61 81 103 105 104 102 98 172 685
Unemployment Compensation
Debts 1
Estimated Budget Authority -11 -44 -58 -59 -59 -60 -60 -61 -62 -62 -231 -535
Estimated Outlays......... -11 -44 -58 -59 -59 -60 -60 -61 -62 -62 -231 -535
Education:
Estimated Budget Authority -41 -42 -44 -46 -48 -50 -52 -54 -57 -60 -221 -494
Estimated Outlays......... -34 -42 -44 -46 -48 -50 -52 -54 -57 -60 -214 -486
Tribal Foster Care:
Estimated Budget Authority 1 8 10 15 19 27 33 44 53 56 54 266
Estimated Outlays......... 0 4 8 14 19 27 35 45 52 55 44 257
Family Caregivers:
Estimated Budget Authority 9 14 13 9 8 1 1 0 0 0 53 55
Estimated Outlays......... 5 12 16 11 8 2 1 0 0 0 52 55
Investment of Operating Cash:
Estimated Budget Authority -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -50 -100
Estimated Outlays......... -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -50 -100
Total Changes in Direct
Spending:
Estimated Budget Authority -56 -249 -222 -155 -93 -7 60 153 255 368 -775 54
Estimated Outlays......... -55 -255 -226 -159 -101 -17 56 145 243 354 -796 -15
CHANGES IN REVENUES
Uniform Definition of a Child 1 23 36 31 32 34 35 37 38 40 123 307
1............................
Unemployment Compensation 0 -1 -8 -20 -34 -44 -50 -52 -53 -53 -63 -315
Debts........................
Total Revenue Changes..... 1 22 28 11 -2 -10 -15 -15 -15 -13 60 -8
NET BUDGETARY IMPACT 3
Estimated Increase or Decrease -56 -277 -254 -170 -99 -7 71 160 258 367 -856 -7
(-) in Deficits 2............
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals due to rounding.
1 Estimates prepared by the Joint Committee on Taxation; all other provisions estimated by the Congressional Budget Office.
2 Negative numbers reflect decreases in the deficit (or increases in the surplus); positive numbers reflect increases in the deficit (or decreases in
the surplus).
3 In addition, enacting the bill would increase discretionary spending by an estimated $175 million over the 2009-2013 period, subject to appropriation
of the authorized amounts.
SOURCE: Congressional Budget Office and the Joint Committee on Taxation.
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
Pursuant to the requirements of paragraph 12 of rule XXVI
of the Standing Rules of the Senate, changes in existing law
made by the bill, as reported, are shown as follows (existing
law proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
SOCIAL SECURITY ACT
* * * * * * *
TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH
CHILDREN AND FOR CHILD-WELFARE SERVICES
Part A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
* * * * * * *
PENALTIES
Sec. 409. (a) In General.--Subject to this section:
(1) Use of grant in violation of this part.--
* * * * * * *
(15) Penalty for failure to establish or comply with
work participation verification procedures.--
* * * * * * *
(16) Penalty for noncompliance with notice
requirements for relatives under part e.--
(A) In general.--If the Secretary determines
that a State to which a grant is made under
section 403 in a fiscal year has not exercised
the due diligence required under section
471(a)(19)(C) during the fiscal year, the
Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount
equal to not less than 1 percent and not more
than 3.5 percent of the State family assistance
grant.
(B) penalty based on severity of failure.--
the Secretary shall impose reductions under
subparagraph (A) with respect to a fiscal year
based on the degree of noncompliance.
Part B--CHILD AND FAMILY SERVICES
Subpart 1--Child Welfare Services
* * * * * * *
LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS
Sec. 425. To carry out this subpart (other than sections
426, 427, and 429), there are authorized to be appropriated to
the Secretary not more than $325,000,000 for each of fiscal
years 2007 through 2011.
* * * * * * *
SEC. 427. GRANTS TO CARRY OUT KINSHIP NAVIGATOR PROGRAMS.
(a) Purpose.--The purposes of this section are--
(1) to establish kinship navigator programs in
States, large metropolitan areas, and tribal areas to
assist kinship caregivers in navigating their way
through programs and services, to help the caregivers
learn about and obtain assistance to meet the needs of
the children they are raising and their own needs; and
(2) to promote effective partnerships among public
and private agencies, including community-based and
faith-based agencies, to help the agencies described in
this paragraph more effectively and efficiently serve
kinship care families and address the fragmentation
that creates barriers to meeting the needs of those
families.
(b) Definitions.--In this section:
(1) Assistant secretary.--The term ``Assistant
Secretary'' means the Assistant Secretary for Children
and Families of the Department of Health and Human
Services.
(2) Large metropolitan area.--The term ``large
metropolitan area'' means a metropolitan statistical
area, as defined by the Bureau of the Census, with a
population of not less than 1,000,000.
(3) Metropolitan agency.--The term ``metropolitan
agency'' means an agency serving a large metropolitan
area, or a county or political subdivision of a large
metropolitan area.
(4) Tribal area.--The term ``tribal area'' means the
area served by a tribal organization.
(5) Tribal organization.--The term ``tribal
organization''--
(A) has the meaning given that term in
section 479B(a); and
(B) includes a consortium of tribal
organizations described in subparagraph (A).
(c) Grants.--
(1) In general.--The Assistant Secretary may make
grants to eligible entities to pay for the Federal
share (as determined by the Assistant Secretary) of the
cost of carrying out kinship navigator programs.
(2) Eligible entities.--To be eligible to receive a
grant under this section, an entity shall be a State
agency, metropolitan agency, or tribal organization,
with experience in--
(A) addressing the needs of kinship
caregivers or children; and
(B) connecting the children or caregivers
with appropriate services and assistance, such
as services and assistance provided by--
(i) an area agency on aging under the
Older Americans Act of 1965 (42 U.S.C.
3001 et seq.); or
(ii) an agency with jurisdiction over
child welfare, income-based financial
assistance, human services, or health
matters, or a public entity that links
family resource and support programs,
for the State, large metropolitan area,
or Indian tribe involved.
(3) Allocation of grants.--Of the funds made
available for grants under this section for each fiscal
year, the Assistant Secretary shall use not less than
50 percent to make grants to State agencies.
(d) Non-Federal Share.--The non-Federal share of the cost
may be provided in cash. Not more than 50 percent of the non-
Federal share of the cost may be provided in kind, fairly
evaluated, including plant, equipment, or services.
(e) Applications.--
(1) In general.--To be eligible to receive a grant
under this section, an entity shall submit an
application to the Assistant Secretary at such time, in
such manner, and containing such information as the
Assistant Secretary may require, including, at a
minimum, the information described in paragraph (2).
(2) Contents.--The application shall include the
following:
(A) A description of the steps the entity
will take during the first 6 months of the
grant period to--
(i) identify gaps in services for
kinship care families in the State,
large metropolitan area, or tribal area
to be served and the specific
activities that are needed to bridge
the gaps;
(ii) convene a group of partners to
assist in the operation of the kinship
navigator program funded through the
grant;
(iii) utilize or develop relevant
technology;
(iv) conduct outreach to kinship
caregivers about the kinship navigator
program; and
(v) develop a plan for reaching
kinship caregivers, ensuring that the
caregivers can access the kinship
navigator program, and following up to
ensure that the caregivers actually
receive necessary services and
supports.
(B) An assurance that the entity will provide
at least the core activities specified in
subparagraphs (A) and (B) of subsection (f)(2)
for kinship care families through the kinship
navigator program.
(C) A description of the activities the
entity expects to offer over the grant period
and the entity's initial projection of the
number of children and kinship caregivers
likely to be served.
(D) A description of how the entity will
involve in the planning and operation of the
kinship navigator program, on an ongoing
basis--
(i) kinship caregivers;
(ii) youth raised or being raised by
kinship caregivers;
(iii) representatives of kinship care
support organizations;
(iv) relevant government agencies
(including agencies with jurisdiction
over matters relating to aging, mental
health, mental retardation or
developmental disabilities, substance
abuse treatment, criminal justice,
health, youth services, human services,
education, income-based financial
assistance, child welfare, child
custody, guardianship, adoption, or
child support enforcement);
(v)(I) not-for-profit service
providers, including community-based
and faith-based agencies; and
(II) educational institutions; and
(vi) other State or local agencies or
systems that promote service
coordination or provide information and
referral services, including the
entities that provide the 2-1-1 or 3-1-
1 information systems where applicable.
(E) A description of--
(i) how the entity will coordinate
its activities with other State or
local agencies or systems that promote
service coordination or provide
information and referral services for
children, families, or older
individuals, including the entities
that provide the 2-1-1 or 3-1-1
information systems where applicable,
so as to avoid duplication of services
and the fragmentation of services that
prevents kinship care families from
getting the help the families need; and
(ii) how the entity will encourage
regional cooperation among agencies,
particularly agencies serving border
communities that may cross
jurisdictional lines, to ensure that
kinship care families will get help.
(F) An assurance that the entity will report
at least annually to the Assistant Secretary,
in a manner prescribed by the Assistant
Secretary, to ensure comparability of data
across States, on--
(i) activities established with the
funds made available through grants
made under this section;
(ii) the numbers and ages of the
children and caregivers assisted
through the grants;
(iii) the types of the assistance
provided;
(iv) the outcomes achieved with the
assistance; and
(v) the barriers identified to
meeting the needs of kinship care
families and plans for addressing the
barriers.
(G) An assurance that the entity, not later
than 3 months after the end of the final year
of the grant period, will submit a final report
to the Administration for Children and Families
that describes--
(i) the numbers and ages of the
children and caregivers assisted
through the grants;
(ii) the types of assistance
provided;
(iii) the outcomes achieved with the
assistance;
(iv) the barriers to meeting the
needs of kinship care families that
were addressed through the grants;
(v) the plans of the entity to
continue the kinship navigator program
after the grant period has ended;
(vi) lessons learned during the grant
period; and
(vii) recommendations about the
considerations that should be taken
into account as the program carried out
under this section is expanded
throughout the United States.
(3) Preference.--In awarding grants under this
section, the Assistant Secretary shall give preference
to agencies or organizations that can demonstrate that
the agencies and organizations will offer the full
array of activities described in subsection (f)(2).
(f) Use of Grant Funds.--
(1) In general.--An entity that receives a grant under
this title may use the funds made available through the
grant directly, or through grants or contracts with
other public or private agencies, including community-
based or faith-based agencies, that have experience in
connecting kinship caregivers with appropriate services
and assistance.
(2) Use of funds.--An entity that receives a grant
under this title may use the funds made available
through the grant for activities that help to connect
kinship caregivers with the services and assistance
required to meet the needs of the children the
caregivers are raising and their own needs, such as--
(A) establishing and maintaining information
and referral systems that--
(i) assist, through toll free access
that includes access to a live
operator, kinship caregivers, kinship
care service providers, kinship care
support group facilitators, and others
to learn about and link to--
(I) local kinship care
service providers, support
groups, respite care programs,
and special services for
incarcerated parents;
(II) eligibility and
enrollment information for
Federal, State, and local
benefits, such as--
(aa) education
(including preschool,
elementary, secondary,
postsecondary, and
special education);
(bb) family support
services, early
intervention services,
mental health services,
substance abuse
prevention and
treatment services,
services to address
domestic violence
problems, services to
address HIV or AIDS,
legal services, child
support, housing
assistance, and child
care;
(cc) the disability
insurance benefits
program established
under title II;
(dd) the program of
block grants to States
for temporary
assistance for needy
families established
under part A;
(ee) the supplemental
security income program
established under title
XVI;
(ff) the medicaid
program established
under title XIX;
(gg) the State
children's health
insurance program
established under title
XXI;
(hh) the program of
Federal payments for
foster care and
adoption assistance
established under part
E, including the
program of relative
guardianship assistance
payments for children
established under
section 473(d); and
(ii) the supplemental
nutrition assistance
program established
under the Food and
Nutrition Act of 2008
(7 U.S.C. 2011 et
seq.);
(III) relevant training to
assist kinship caregivers in
obtaining benefits and services
and performing their caregiving
activities; and
(IV) relevant legal
assistance and help in
obtaining access to legal
services, including access to
legal aid service providers and
statewide elder law hotlines;
(ii) provide outreach to kinship care
families, in collaboration with
schools, pediatric care clinics,
kinship care organizations, senior
citizen centers, agencies with
jurisdiction over child welfare or
human services, and others to link the
families to the kinship navigator
program and to services and assistance;
and
(iii) establish, distribute, and
regularly update kinship care resource
guides, websites, or other relevant
outreach materials;
(B) promoting partnerships between public and
private agencies, including community-based and
faith-based agencies--
(i) to help the agencies described in
this paragraph more effectively and
efficiently meet the needs of kinship
care families; and
(ii) to familiarize the agencies
about the special needs of kinship care
families, policies that affect their
eligibility for a range of education,
health, mental health, social, child
care, and child welfare services,
income-based financial assistance,
legal assistance, and other services
and benefits, and the means for making
policies more supportive of kinship
care families;
(C) establishing and supporting a kinship
care ombudsman who has the authority to
actively intervene with State agency staff or
service providers with which the State agency
contracts to help ensure, through various
appropriate means including working with
individual families in an ongoing manner, that
kinship caregivers get the services they need
and for which they are eligible; and--
(D) supporting other activities that are
designed to assist kinship caregivers in
obtaining benefits, services, and activities
designed to improve their caregiving.
(3) Limitation.--Except as provided in paragraph
(2)(D), the entity may not use any of the funds made
available through the grant for direct services to
children in kinship care families or to kinship
caregivers.
(g) Administration of the Program.--In administering the
program carried out under this section, the Assistant Secretary
for Children and Families shall periodically consult with the
Assistant Secretary for Aging of the Department of Health and
Human Services.
(h) Reservation.--The Assistant Secretary may reserve not
more than 1 percent of the funds made available under this
section for a fiscal year to provide technical assistance to
the recipients of grants under this section related to the
purposes of the grants.
(i) Appropriation.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated to the Secretary for purposes of making grants
under this section, $5,000,000 for each of fiscal years 2009
through 2013.
Part D--Child Support and Establishment of Paternity
* * * * * * *
FEDERAL PARENT LOCATOR SERVICE
Sec. 453. (a) Establishment; Purpose.--
* * * * * * *
(j) Information Comparisons and Other Disclosures.--
(1) * * *
* * * * * * *
(3) Information comparisons and disclosures of
information in all registries for title iv program
Purposes.--To the extent and with the frequency that
the Secretary determines to be effective in assisting
States to carry out their responsibilities under
programs operated under this part, part B, part E, and
programs funded under part A, the Secretary shall--
* * * * * * *
Part E--Federal Payments for Foster Care and Adoption Assistance
* * * * * * *
STATE PLAN FOR FOSTER CARE AND ADOPTION ASSISTANCE
Sec. 471. (a) In order for a State to be eligible for
payments under this part, it shall have a plan approved by the
Secretary which--
(1) provides (A) for foster care maintenance payments
in accordance with section 472 and for adoption
assistance in accordance with section 473; and
(B) at the option of the State, provides for
relative guardianship assistance payments in
accordance with subsection (d) of section 473;
* * * * * * *
(18) not later than January 1, 1997, provides that
neither the State nor any other entity in the State
that receives funds from the Federal Government and is
involved in adoption or foster care placements may--
(A) deny to any person the opportunity to
become an adoptive or a foster parent, on the
basis of the race, color, or national origin of
the person, or of the child, involved; or
(B) delay or deny the placement of a child
for adoption or into foster care, on the basis
of the race, color, or national origin of the
adoptive or foster parent, or the child,
involved;
(19) provides [that the State] ``that--
``(A) the State''; and
(ii) by adding at the end the
following:
(B) within 60 days of the removal of the
child from the custody of the child's parent or
parents, the State shall exercise due diligence
to identify and provide notice to all adult
grandparents and other adult relatives of the
child (including any other adult relatives
suggested by the parents), subject to
exceptions due to family or domestic violence,
that--
(i) specifies that the child has been
or is being removed from the custody of
the child's parent or parents;
(ii) explains the options the
relative has under Federal, State, and
local law to participate in the child's
care and placement, including any
options that may be lost by failing to
respond to the notice;
(iii) describes the requirements
under paragraph (10) to become a foster
family home and the additional services
and supports that are available for
children placed in such a home; and
(iv) if the State has elected the
option to make relative guardianship
assistance payments under paragraph
(1)(B), describes how the relative may
enter into an agreement with the State
under section 473(d) to receive such
payments; and
(C) with respect to any minor child
(excluding minor heads of households and their
spouses) receiving assistance under the State
program funded under part A (or under a State
program funded with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)) who is in the care of a
nonparent caretaker relative as a result of
interaction with the State agency responsible
for administering the program authorized under
this part, and who does not have a parent in
the home, the State shall provide the nonparent
caretaker relative with notice that--
(i) explains the options the relative
has under Federal, State, and local law
to participate in the child's care and
placement, including any options that
may be lost by failing to respond to
the notice;
(ii) describes the requirements under
section 471(a)(10) to become a foster
family home and the additional services
and supports that are available for
children placed in such a home; and
(iii) if the State has elected the
option to make relative guardianship
assistance payments under paragraph
(1)(B), describes how the relative may
enter into an agreement under section
473(d) with the State to receive such
payments; shall consider giving
preference to an adult relative over a
non-related caregiver when determining
a placement for a child, provided that
the relative caregiver meets all
relevant State child protection
standards;
(20)(A) unless an election provided for in
subparagraph (B) is made with respect to the State,
provides procedures for criminal records checks,
including fingerprint-based checks of national crime
information databases (as defined in section
534(e)(3)(A) of title 28, United States Code), for any
prospective [foster or adoptive parent before the
foster or adoptive parent may be finally approved for
placement of a child regardless of whether foster care
maintenance payments or adoption assistance payments]
foster parent, adoptive parent, or relative guardian
before the foster parent, adoptive parent, or relative
guardian may be finally approved for placement of a
child regardless of whether foster care maintenance
payments, adoption assistance payments, or relative
guardianship assistance payments are to be made on
behalf of the child under the State plan under this
part, including procedures requiring that--
* * * * * * *
(26) provides that--
(A)(i) within 60 days after the State
receives from another State a request to
conduct a study of a home environment for
purposes of assessing the safety and
suitability of placing a child in the home, the
State shall, directly or by contract--
* * * * * * *
(C) the State shall not impose any
restriction on the ability of a State agency
administering, or supervising the
administration of, a State program operated
under a State plan approved under this part to
contract with a private agency for the conduct
of a home study described in subparagraph (A);
[and]
(27) provides that, with respect to any child in
foster care under the responsibility of the State under
this part or part B and without regard to whether
foster care maintenance payments are made under section
472 on behalf of the child, the State has in effect
procedures for verifying the citizenship or immigration
status of the child[.];
(28) provides that the State will inform any
individual who is adopting, or whom the State is made
aware is considering adopting, a child who is in foster
care under the responsibility of the State of the
potential eligibility of the individual for a Federal
tax credit under section 23 of the Internal Revenue
Code of 1986 (without the need to document any
adoption-related expenses, in the case of the adoption
of a child with special needs (as defined in section
23(d)(3) of such Code);
(29) provides that the State will negotiate in good
faith with any Indian tribe, tribal organization or
tribal consortium in the State that requests to develop
an agreement with the State to provide for payments
under this part on behalf of Indian children who are
under the authority of the tribe, organization, or
consortium, including foster care maintenance payments
on behalf of children who are placed in tribally
licensed foster family homes, adoption assistance
payments, and, if the State has elected to provide such
payments, relative guardianship assistance payments,
and tribal access to resources for administration,
training, and data collection under this part; and
(30) provides assurances that each child who has
attained the minimum age for compulsory school
attendance under State law and with respect to whom
there is eligibility for a payment under the State plan
is a full-time elementary or secondary school student
or has completed secondary school, and for purposes of
this paragraph, the term ``elementary or secondary
school student'' means, with respect to a child, that
the child is--
(A) enrolled (or in the process of enrolling)
in an institution which provides elementary or
secondary education, as determined under the
law of the State or other jurisdiction in which
the institution is located;
(B) instructed in elementary or secondary
education at home in accordance with a home
school law of the State or other jurisdiction
in which the home is located;
(C) in an independent study elementary or
secondary education program in accordance with
the law of the State or other jurisdiction in
which the program is located, which is
administered by the local school or school
district; or
(D) incapable of attending school on a full-
time basis due to the medical condition of the
child, which incapability is supported by
regularly updated information included in the
case plan of the child.
* * * * * * *
FOSTER CARE MAINTENANCE PAYMENTS PROGRAM
Sec. 472. (a) In General.--
(1) Eligibility.--Each State with a plan approved
under this part shall make foster care maintenance
payments on behalf of each child who has been removed
from the home of a relative specified in section 406(a)
(as in effect on July 16, 1996) into foster care if--
* * * * * * *
(2) Removal and foster care placement requirements.--
The removal and foster care placement of a child meet
the requirements of this paragraph if--
* * * * * * *
(B) the child's placement and care are the
responsibility of--
(i) the State agency administering
the State plan approved under section
471; [or]
(ii) any other public agency with
which the State agency administering or
supervising the administration of the
State plan has made an agreement which
is in effect; [and] or
(iii) an Indian tribe or a tribal
organization (as defined in section
479B(a)) or a tribal consortium that
has a plan approved under section 471
in accordance with section 479B;
* * * * * * *
(c) For the purposes of this part, (1) the term ``foster
family home'' means a foster family home for children which is
licensed by the State in which it is situated or has been
approved, by the agency of such State having responsibility for
licensing homes of this type, as meeting the standards
established for such licensing; and (2) the term ``child-care
institution'' means a private child-care institution, or a
public child-care institution which accommodates no more than
twenty-five children, which is licensed by the State in which
it is situated or has been approved, by the agency of such
State responsible for licensing or approval of institutions of
this type, as meeting the standards established for such
licensing, but the term shall not include detention facilities,
forestry camps, training schools, or any other facility
operated primarily for the detention of children who are
determined to be delinquent, except, in the case of a child who
has attained 18 years of age, the term shall include a
supervised setting in which the individual is living
independently, in accordance with such conditions as the
Secretary shall establish in regulations.
* * * * * * *
ADOPTION ASSISTANCE PROGRAM
Sec. 473. (a)(1)(A) Each State having a plan approved
under this part shall enter into adoption assistance agreements
(as defined in section 475(3)) with the adoptive parents of
children with special needs.
* * * * * * *
(2)(A) For purposes of paragraph (1)(B)(ii), a child meets
the requirements of this paragraph if the child--
[(i)(I)(aa) was removed from the home of a relative
specified in section 406(a) (as in effect on July 16,
1996) and placed in foster care in accordance with a
voluntary placement agreement with respect to which
Federal payments are provided under section 474 (or
section 403, as such section was in effect on July 16,
1996), or in accordance with a judicial determination
to the effect that continuation in the home would be
contrary to the welfare of the child; and
[(bb) met the requirements of section 472(a)(3) with
respect to the home referred to in item (aa) of this
subclause
[(II) meets all of the requirements of title XVI with
respect to eligibility for supplemental security income
benefits; or
[(III) is a child whose costs in a foster family home
or child-care institution are covered by the foster
care maintenance payments being made with respect to
the minor parent of the child as provided in section
475(4)(B); and
[(ii) has been determined by the State, pursuant to
subsection (c) of this section, to be a child with
special needs.]
(i)(I) at the time of termination of parental rights
was in the care of a public or licensed private child
placement agency or Indian tribal organization pursuant
to a voluntary placement agreement, relinquishment, or
involuntary removal of the child from the home, and the
State has determined, pursuant to criterion or criteria
established by the State (which may, but need not,
include a judicial determination), that continuation in
the home would be contrary to the safety or welfare of
such child;
(II) meets all medical or disability requirements of
title XVI with respect to eligibility for supplemental
security income benefits; or
(III) was residing in a foster family home or child
care institution with the child's minor parent,
provided that the child's minor parent was in such
foster family home or child care institution pursuant
to a voluntary placement agreement, relinquishment, or
involuntary removal of the child from the home, and the
State has determined, pursuant to criterion or criteria
established by the State (which may, but need not,
include judicial determination), that continuation in
the home would be contrary to the safety or welfare of
such child; and
(ii) has been determined by the State, pursuant to
subsection (c), to be a child with special needs.
(B) Section 472(a)(4) shall apply for purposes of
subparagraph (A) of this paragraph, in any case in which the
child is an alien described in such section.
[(C) A child shall be treated as meeting the requirements
of this paragraph for the purpose of paragraph (1)(B)(ii) if
the child--
[(i) meets the requirements of subparagraph (A)(ii);
[(ii) was determined eligible for adoption assistance
payments under this part with respect to a prior
adoption;
[(iii) is available for adoption because--
[(I) the prior adoption has been dissolved,
and the parental rights of the adoptive parents
have been terminated; or
[(II) the child's adoptive parents have died;
and
[(iv) fails to meet the requirements of
subparagraph (A) but would meet such
requirements if--
[(I) the child were treated as if the child
were in the same financial and other
circumstances the child was in the last time
the child was determined eligible for adoption
assistance payments under this part; and
[(II) the prior adoption were treated as
never having occurred.]
(C) A child who meets the requirements of subparagraph
(A)(ii), who was determined eligible for adoption assistance
payments under this part with respect to a prior adoption (or
who would have been determined eligible for such payments had
the Adoption and Safe Families Act of 1997 been in effect at
the time that such determination would have been made), and who
is available for adoption because the prior adoption has been
dissolved and the parental rights of the adoptive parents have
been terminated or because the child's adoptive parents have
died, shall be treated as meeting the requirements of this
paragraph for purposes of paragraph (1)(B)(ii).
(3) The amount of the payments to be made in any case under
clauses (i) and (ii) of paragraph (1)(B) shall be determined
through agreement between the adoptive parents and the State or
local agency administering the program under this section,
which shall take into consideration the circumstances of the
adopting parents and the needs of the child being adopted, and
may be readjusted periodically, with the concurrence of the
adopting parents (which may be specified in the adoption
assistance agreement), depending upon changes in such
circumstances. However, in no case may the amount of the
adoption assistance payment made under clause (ii) of paragraph
(1)(B) exceed the foster care maintenance payment which would
have been paid during the period if the child with respect to
whom the adoption assistance payment is made had been in a
foster family home.
[(4) Notwithstanding the preceding paragraph, (A) no
payment may be made to parents with respect to any child who
has attained the age of eighteen (or, where the State
determines that the child has a mental or physical handicap
which warrants the continuation of assistance, the age of
twenty-one), and (B) no payment may be made to parents with
respect to any child if the State determines that the parents
are no longer legally responsible for the support of the child
or if the State determines that the child is no longer
receiving any support from such parents. Parents who have been
receiving adoption assistance payments under this section shall
keep the State or local agency administering the program under
this section informed of circumstances which would, pursuant to
this subsection, make them ineligible for such assistance
payments, or eligible for assistance payments in a different
amount.]
(4)(A) Notwithstanding any other provision of this section,
a payment may not be made pursuant to this section to parents
or relative guardians with respect to a child--
(i) who has attained--
(I) 18 years of age, or such greater age as
the State may elect under section
475(8)(B)(iii); or
(II) 21 years of age, if the State determines
that the child has a mental or physical
handicap which warrants the continuation of
assistance;
(ii) who has not attained 18 years of age, if the
State determines that the parents or relative
guardians, as the case may be, are no longer legally
responsible for the support of the child; or
(iii) if the State determines that the child is no
longer receiving any support from the parents or
relative guardians, as the case may be.
(B) Parents or relative guardians who have been receiving
adoption assistance payments or relative guardianship
assistance payments under this section shall keep the State or
local agency administering the program under this section
informed of circumstances which would, pursuant to this
subsection, make them ineligible for the payments, or eligible
for the payments in a different amount.
(6)(A) For purposes of paragraph (1)(B)(i), the term
``nonrecurring adoption expenses'' means reasonable and
necessary adoption fees, court costs, attorney fees, and other
expenses which are directly related to the legal adoption of a
child with special needs and which are not incurred in
violation of State or Federal law.
(B) A State's payment of nonrecurring adoption expenses
under an adoption assistance agreement shall be treated as an
expenditure made for the proper and efficient administration of
the State plan for purposes of section 474(a)(3)(E).
(7)(A) Notwithstanding any other provision of this
subsection, no payment may be made to parents with respect to
any child that--
(i) would be considered a child with special needs
under subsection (c);
(ii) is not a citizen or resident of the United
States; and
(iii) was adopted outside of the United States or was
brought into the United States for the purpose of being
adopted.
(B) Subparagraph (A) shall not be construed as prohibiting
payments under this part for a child described in subparagraph
(A) that is placed in foster care subsequent to the failure, as
determined by the State, of the initial adoption of such child
by the parents described in such subparagraph.
(8) A State shall spend an amount equal to the amount of
savings (if any) in State expenditures under this part
resulting from the application of paragraph (2) on and after
the effective date of the amendments to such paragraph made by
section 102(a) of the Improved Adoption Incentives and Relative
Guardianship Support Act of 2008 to provide to children or
families any service (including post-adoption services) that
may be provided under this part or part B.
(9) A child on whose behalf relative guardianship
assistance payments have been made under section 473(d) and who
pursuant to subsection (c) has been determined to be a child
with special needs, shall be eligible for adoption assistance
as if no relative guardianship assistance agreement or payments
had been made. The State shall make payments of nonrecurring
adoption expenses under this section to the adoptive parents of
such a child.
(b)(1) For purposes of title XIX, any child who is
described in paragraph (3) is deemed to be a dependent child as
defined in section 406 (as in effect as of July 16, 1996) and
deemed to be a recipient of aid to families with dependent
children under part A of this title (as so in effect) in the
State where such child resides.
(2) For purposes of title XX, any child who is described in
paragraph (3) is deemed to be a minor child in a needy family
under a State program funded under part A of this title and
deemed to be a recipient of assistance under such part.
(3) A child described in this paragraph is any child--
(A)(i) who is a child described in subsection (a)(2),
and
(ii) with respect to whom an adoption assistance
agreement is in effect under this section (whether or
not adoption assistance payments are provided under the
agreement or are being made under this section),
including any such child who has been placed for
adoption in accordance with applicable State and local
law (whether or not an interlocutory or other judicial
decree of adoption has been issued), [or]
(B) with respect to whom foster care maintenance
payments are being made under section 472[.] , or
(C) with respect to whom relative guardianship
assistance payments are being made under subsection
(d).
(4) For purposes of paragraphs (1) and (2), a child whose
costs in a foster family home or child-care institution are
covered by the foster care maintenance payments being made with
respect to the child's minor parent, as provided in section
475(4)(B), shall be considered a child with respect to whom
foster care maintenance payments are being made under section
472.
[(c) For purposes of this section, a child shall not be
considered a child with special needs unless--
[(1) the State has determined that the child cannot
or should not be returned to the home of his parents;
and
[(2) the State had first determined (A) that there
exists with respect to the child a specific factor or
condition (such as his ethnic background, age, or
membership in a minority or sibling group, or the
presence of factors such as medical conditions or
physical, mental, or emotional handicaps) because of
which it is reasonable to conclude that such child
cannot be placed with adoptive parents without
providing adoption assistance under this section or
medical assistance under title XIX, and (B) that,
except where it would be against the best interests of
the child because of such factors as the existence of
significant emotional ties with prospective adoptive
parents while in the care of such parents as a foster
child, a reasonable, but unsuccessful, effort has been
made to place the child with appropriate adoptive
parents without providing adoption assistance under
this section or medical assistance under title XIX.]
(c) For purposes of this section, a child shall not be
considered a child with special needs unless--
(1) the State has determined, pursuant to a criterion
or criteria established by the State (which may, but
need not, include a judicial determination), that the
child cannot or should not be returned to the home of
his parents; and
(2) the State has determined--
(A) that there exists with respect to the
child a specific factor or condition (such as
ethnic background, age, or membership in a
minority or sibling group, or the presence of
factors such as medical conditions or physical,
mental, or emotional handicaps) because of
which it is reasonable to conclude that the
child cannot be placed with adoptive parents
without providing adoption assistance under
this section and medical assistance under title
XIX; and
(B) that except where it would be against the
best interests of the child because of such
factors as the existence of significant
emotional ties with prospective adoptive
parents while in the care of such parents as a
foster child, a reasonable, but unsuccessful,
effort has been made to place the child with
appropriate adoptive parents without providing
adoption assistance under this section or
medical assistance under title XIX.
A child who meets all medical or disability requirements of
title XVI with respect to eligibility for supplemental security
income benefits shall be deemed to be a child for whom the
determination required by subparagraph (A) of paragraph (2) has
been made.
(d) Relative Guardianship Assistance Payments for
Children.--
(1) Relative guardianship assistance agreement.--
(A) In general--In order to receive payments
under section 474(a)(5), a State shall--
(i) negotiate and enter into a
written, binding relative guardianship
assistance agreement with the relative
guardian of a child who meets the
requirements of paragraph (3)(B); and
(ii) provide the relative guardian
with a copy of the agreement.
(B) Minimum requirements.--The agreement
shall specify, at a minimum--
(i) the amount of, and manner in
which, each relative guardianship
assistance payment will be provided
under the agreement;
(ii) the additional services and
assistance that the child and relative
guardian will be eligible for under the
agreement;
(iii) the procedure by which the
relative guardian may apply for
additional services as needed, provided
the agency and relative guardian agree
on the additional services as specified
in the agreement; and
(iv) that the State will pay up to
$2,000 of nonrecurring expenses
associated with obtaining legal
guardianship of the child.
(C) Interstate application.--The agreement
shall provide that the agreement shall remain
in effect without regard to the State residency
of the relative guardian.
(D) Federal reimbursement of non-recurring
expenses.--A State's payment of nonrecurring
guardianship expenses under a relative
guardianship assistance agreement in accordance
with subparagraph (B) (iv) shall be treated as
a direct expenditure made for the proper and
efficient administration of the State plan for
purposes of section 474(a)(3)(E).
(2) Relative guardianship assistance payment.--
(A) In general.--Subject to subparagraphs (B)
and (C), the relative guardianship assistance
payment shall be based on consideration of the
circumstances of the relative guardian and the
needs of the child.
(B) Minimum and maximum payment.--A relative
guardianship assistance payment shall not be
less than the adoption assistance payment the
State would have made on behalf of the child
under an adoption assistance agreement entered
into under subsection (a) and shall not exceed
the foster care maintenance payment which would
have been paid if the child had remained in a
foster family home.
(C) Periodic adjustments.--A relative
guardianship assistance payment may be
readjusted periodically, with the concurrence
of the relative guardian (which may be
specified in the relative guardianship
assistance agreement), depending upon changes
in the circumstances of the relative guardian
and the needs of the child.
(3) Child's eligibility for a relative guardianship
assistance payment.--
(A) In general.--A child is eligible for a
relative guardianship assistance payment under
this subsection if the State agency determines
the following:
(i) The child--
(I) has been removed from his
or her home pursuant to a
voluntary placement agreement
or as a result of a judicial
determination to the effect
that continuation in the home
would be contrary to the
welfare of the child; and
(II) in the month prior to
the establishment of the legal
guardianship, is eligible for
foster care maintenance
payments under section 472.
(ii)(I) Being returned home or
adopted are not appropriate permanency
options for the child.
(II) In the case of a child who has
been removed from the home for reasons
primarily associated with parental
substance abuse and addiction, attempts
to engage the family in residential,
comprehensive family treatment programs
are inappropriate or have been
unsuccessful or such programs are
unavailable.
(iii) The child demonstrates a strong
attachment to the relative guardian and
the relative guardian has a strong
commitment to caring permanently for
the child.
(iv) The relative guardian satisfies
the requirements of subparagraph (B).
(v) With respect to a child who has
attained 14 years of age, the child has
been consulted regarding the relative
guardianship arrangement.
(B) Requirements for relative guardians.--A
relative guardian satisfies the requirements of
this subparagraph if the relative--
(i) is the grandparent or other
relative of a child on whose behalf
relative guardianship assistance
payments are to be made;
(ii) has satisfied the background
checks required under section
471(a)(20);
(iii) has met the State's
requirements established under section
471(a)(10) to be a foster family home;
and
(iv) assumes legal guardianship of
such child and commits to caring for
the child on a permanent basis.
(C) Treatment of siblings.--With respect to a
child described in subparagraph (A) whose
sibling or siblings are not so described--
(i) the child and any sibling of the
child shall be placed in the same
relative guardianship arrangement
unless it can be demonstrated that it
is inappropriate to do so; and
(ii) relative guardianship assistance
payments may be paid for the child and
each sibling so placed.
ADOPTION INCENTIVE PAYMENTS
Sec. 473A. (a) Grant Authority.--Subject to the
availability of such amounts as may be provided in advance in
appropriations Acts for this purpose, the Secretary shall make
a grant to each State that is an incentive-eligible State for a
fiscal year in an amount equal to the adoption incentive
payment payable to the State under this section for the fiscal
year, which shall be payable in the immediately succeeding
fiscal year.
(b) Incentive-Eligible State.--A State is an incentive-
eligible State for a fiscal year if--
(1) the State has a plan approved under this part for
the fiscal year;
(2)(A) the number of foster child adoptions in the
State during the fiscal year exceeds the base number of
foster child adoptions for the State for the fiscal
year; [or]
(B) the number of older child adoptions in
the State during the fiscal year exceeds the
base number of older child adoptions for the
State for the fiscal year; or
(C) the State's foster child adoption rate
for the fiscal year exceeds the highest ever
foster child adoption rate determined for the
State;
(3) the State is in compliance with subsection (c)
for the fiscal year;
(4) [in the case of fiscal years 2001 through 2007,]
the State provides health insurance coverage to any
child with special needs (as determined under section
473(c)) for whom there is in effect an adoption
assistance agreement between a State and an adoptive
parent or parents; and
(5) the fiscal year is any of fiscal years [1998
through 2007]. 2008 through 2012.
(c) Data Requirements.--
(1) In general.--A State is in compliance with this
subsection for a fiscal year if the State has provided
to the Secretary the data described in paragraph (2)--
(A) for fiscal years 1995 through 1997 (or,
if the first fiscal year for which the State
seeks a grant under this section is after
fiscal year 1998, the fiscal year that precedes
such first fiscal year); and
(B) for each succeeding fiscal year that
precedes the fiscal year.
(2) Determination of numbers of adoptions based on
afcars data.--The Secretary shall determine the numbers
of foster child adoptions, of special needs adoptions
that are not older child adoptions, and of older child
adoptions in a State during [each of fiscal years 2002
through 2007] a fiscal year, and the foster child
adoption rate for the State for the fiscal year, for
purposes of this section, on the basis of data meeting
the requirements of the system established pursuant to
section 479, as reported by the State and approved by
the Secretary by August 1 of the succeeding fiscal
year.
(3) No waiver of afcars requirements.--This section
shall not be construed to alter or affect any
requirement of section 479 or of any regulation
prescribed under such section with respect to reporting
of data by States, or to waive any penalty for failure
to comply with such a requirement.
(d) Adoption Incentive Payment--
(1) In general.--Except as provided in [paragraph
(2)] paragraphs (2) and (3), the adoption incentive
payment payable to a State for a fiscal year under this
section shall be equal to the sum of--
(A) $4,000, multiplied by the amount (if any)
by which the number of foster child adoptions
in the State during the fiscal year exceeds the
base number of foster child adoptions for the
State for the fiscal year;
(B) [2,000] $3,000 multiplied by the amount
(if any) by which the number of special needs
adoptions that are not older child adoptions in
the State during the fiscal year exceeds the
base number of special needs adoptions that are
not older child adoptions for the State for the
fiscal year; and
(C) [4,000] $8,000 multiplied by the amount
(if any) by which the number of older child
adoptions in the State during the fiscal year
exceeds the base number of older child
adoptions for the State for the fiscal year.
(2) Pro rata adjustment if insufficient funds
available.--For any fiscal year, if the total amount of
adoption incentive payments otherwise payable under
[this section] paragraph (1) for a fiscal year exceeds
the amount appropriated pursuant to subsection (h) for
the fiscal year, the amount of the adoption incentive
payment payable to each State under [this section]
paragraph (1) for the fiscal year shall be--
(A) the amount of the adoption incentive
payment that would otherwise be payable to the
State under [this section] paragraph (1) for
the fiscal year; multiplied by
(B) the percentage represented by the amount
so appropriated for the fiscal year, divided by
the total amount of adoption incentive payments
otherwise payable under [this section]
paragraph (1) for the fiscal year.
(3) Increased incentive payment for exceeding the
highest ever foster child adoption rate.--
(A) In general.--If--
(i) for fiscal year 2009 or
any fiscal year thereafter the
total amount of adoption
incentive payments payable
under paragraph (1) is less
than the amount appropriated
under subsection (h) for the
fiscal year; and
(ii) a State's foster child
adoption rate for that fiscal
year exceeds the highest ever
foster child adoption rate
determined for the State,
then the adoption incentive payment otherwise
determined under paragraph (1) for the State
shall be increased, subject to subparagraph
(C), by the amount determined for the State
under subparagraph (B).
(B) Amount of increase.--For purposes of
subparagraph (A), the amount determined under
this subparagraph with respect to a State and a
fiscal year is the amount equal to the product
of--
(i) $1,000; and
(ii) the excess of--
(I) the number of foster
child adoptions in the State in
the fiscal year; over
(II) the product (rounded to
the nearest whole number) of--
(aa) the highest ever
foster child adoption
rate determined for the
State; and
(bb) the number of
children in foster care
under the supervision
of the State on the
last day of the
preceding fiscal year.
(C) Pro rata adjustment if insufficient funds
available.--For any fiscal year, if the total
amount of increases in adoption incentive
payments otherwise payable under this paragraph
for a fiscal year exceeds the amount available
for such increases for the fiscal year, the
amount of the increase payable to each State
under this paragraph for the fiscal year shall
be--
(i) the amount of the increase that
would otherwise be payable to the State
under this paragraph for the fiscal
year; multiplied by
(ii) the percentage represented by
the amount so available for the fiscal
year, divided by the total amount of
increases otherwise payable under this
paragraph for the fiscal year.
(e) [2-Year] 24-month Availability of Incentive Payments.--
Payments to a State under this section in a fiscal year shall
remain available for use by the State [through the end of the
succeeding fiscal year] for a period of 24 months beginning
with the month in which the payments are made.
(f) Limitations on Use of Incentive Payments.--A State
shall not expend an amount paid to the State under this section
except to provide to children or families any service
(including post-adoption services and relative navigator and
support services) that may be provided under part B or E.
Amounts expended by a State in accordance with the preceding
sentence shall be disregarded in determining State expenditures
for purposes of Federal matching payments under sections 424,
434, and 474.
(g) Definitions.--As used in this section:
(1) Foster child adoption.--The term ``foster child
adoption'' means the final adoption of a child who, at
the time of adoptive placement, was in foster care
under the supervision of the State.
(2) Special needs adoption.--The term ``special needs
adoption'' means the final adoption of a child for whom
an adoption assistance agreement is in effect under
section 473.
(3) Base number of foster child adoptions.--The term
``base number of foster child adoptions for a State''
[means--
[(A) with respect to fiscal year 2003, the
number of foster child adoptions in the State
in fiscal year 2002; and
[(B) with respect to any subsequent fiscal
year, the number of foster child adoptions in
the State in the fiscal year for which the
number is the greatest in the period that
begins with fiscal year 2002 and ends with the
fiscal year preceding that subsequent fiscal
year.]
means, with respect to any fiscal year, the number of
foster child adoptions in the State in fiscal year
2007.
(4) Base number of special needs adoptions that are
not older child adoptions.--The term ``base number of
special needs adoptions that are not older child
adoptions for a State [means--
[(A) with respect to fiscal year 2003, the
number of special needs adoptions that are not
older child adoptions in the State in fiscal
year 2002; and
[(B) with respect to any subsequent fiscal
year, the number of special needs adoptions
that are not older child adoptions in the State
in the fiscal year for which the number is the
greatest in the period that begins with fiscal
year 2002 and ends with the fiscal year
preceding that subsequent fiscal year.] means,
with respect to any fiscal year, the number of
special needs adoptions that are not older
child adoptions in the State in fiscal year
2007.
(5) Base number of older child adoptions.--
The term ``base number of older child adoptions
for a State'' [means--
[(A) with respect to fiscal year 2003, the
number of older child adoptions in the State in
fiscal year 2002; and
[(B) with respect to any subsequent fiscal
year, the number of older child adoptions in
the State in the fiscal year for which the
number is the greatest in the period that
begins with fiscal year 2002 and ends with the
fiscal year preceding that subsequent fiscal
year.] means, with respect to any fiscal year,
the number of older child adoptions in the
State in fiscal year 2007.
(6) Older child adoptions.--The term ``older child
adoptions'' means the final adoption of a child who has
attained 9 years of age if--
(A) at the time of the adoptive placement,
the child was in foster care under the
supervision of the State; or (B) an adoption
assistance agreement was in effect under
section 473 with respect to the child.
(7) Highest ever foster child adoption rate.--The
term ``highest ever foster child adoption rate'' means,
with respect to any fiscal year, the highest foster
child adoption rate determined for any fiscal year in
the period that begins with fiscal year 1998 and ends
with the preceding fiscal year.
(8) Foster child adoption rate.--The term ``foster
child adoption rate'' means, with respect to a State
and a fiscal year, the percentage determined by
dividing--
(A) the number of foster child adoptions
finalized in the State during the fiscal year;
by
(B) the number of children in foster care
under the supervision of the State on the last
day of the preceding fiscal year.
(9) Base number of relative guardianship assistance
agreements.--The term ``base number of relative
guardianship assistance agreements'' means, with
respect to a fiscal year, the number of relative
guardianship assistance agreements entered into under
section 473(d) in the State in the fiscal year for
which the number is the greatest in the period that
begins with the first fiscal year in which the State
establishes a relative guardianship assistance program
under section 471(a)(1)(B) and ends with the preceding
fiscal year.
(h) Limitations on Authorization of Appropriations.----
(1) In general.--For grants under subsection (a),
there are authorized to be appropriated to the
Secretary--
(A) $20,000,000 for fiscal year 1999;
(B) $43,000,000 for fiscal year 2000;
(C) $20,000,000 for each of fiscal years 2001
through 2003, and
(D) $43,000,000 for each of fiscal years 2004
through [2008] 2013
(2) Availability.--Amounts appropriated under
paragraph (1), or under any other law for grants under
subsection (a), are authorized to remain available
until expended, but not after fiscal year [2008] 2013.
* * * * * * *
(j) Incentive payments for relative guardianship
placements.--
(1) Use of unawarded adoption incentive funds to make
relative guardianship incentive payments.--If in any
fiscal year the total amount of adoption incentive
payments payable under subsection (d) are less than the
amount appropriated under subsection (h) for the fiscal
year, States that have established a relative
guardianship assistance program under section
471(a)(1)(B) shall be awarded, in addition to any
adoption incentive payments made to such States under
subsection (d), relative guardianship incentive
payments from the portion of such amount that is in
excess of the total amount of adoption incentive
payments to be made under such subsection for such
fiscal year.
(2) Payment amount.--Subject to paragraph (3), the
relative guardianship incentive payment payable to a
State for a fiscal year under this subsection shall be
equal to--
(A) in the case of the first fiscal year in
which the State establishes a relative
guardianship assistance program under section
471(a)(1)(B), the product of $1,000 and the
number of relative guardianship assistance
agreements entered into under section 473(d) in
the State during that fiscal year; and
(B) in the case of any succeeding fiscal
year, the product of $1,000 and the amount (if
any) by which the number of relative
guardianship assistance agreements entered into
under section 473(d) in the State for the
fiscal year exceed the base number of relative
guardianship assistance agreements in the State
for the fiscal year.
(3) Pro rata adjustment if insufficient funds
available.--For any fiscal year, if the total amount of
relative guardianship incentive payments otherwise
payable under this subsection for a fiscal year exceeds
the amount available for such payments for the fiscal
year, the amount of the relative guardianship incentive
payment payable to each State under this subsection for
the fiscal year shall be--
(A) the amount of the relative guardianship
incentive payment that would otherwise be
payable to the State under this subsection for
the fiscal year; multiplied by
(B) the percentage represented by the amount
so available for the fiscal year, divided by
the total amount of relative guardianship
incentive payments otherwise payable under this
section for the fiscal year.
* * * * * * *
PAYMENTS TO STATES; ALLOTMENTS TO STATES
Sec. 474. (a) For each quarter beginning after September
30, 1980, each State which has a plan approved under this part
shall be entitled to a payment equal to the sum of--
* * * * * * *
(3) subject to section 472(i) an amount equal to the
sum of the following proportions of the total amounts
expended during such quarter as found necessary by the
Secretary for the provision of child placement services
and for the proper and efficient administration of the
State plan--
* * * * * * *
(B) 75 percent of so much of such
expenditures (including travel and per diem
expenses) are for the short-term training of
current or prospective [foster or adoptive
parents and the members of the staff of State-
licensed or State-approved child care
institutions providing care to foster and
adopted children receiving assistance under
this part, in ways that increase the ability of
such current or prospective parents, staff
members, and institutions to provide support
and assistance to foster and adopted children,]
foster parents, adoptive parents, or relative
guardians and the members of the staff of
State-licensed or State-approved child care
institutions providing care to foster children,
adoptive children, or children living with a
relative guardian, who are receiving assistance
under this part, in ways that increase the
ability of such current or prospective parents,
relative guardians, staff members, and
institutions to provide support and assistance
to foster children, adoptive children, or
children living with a relative guardian,
whether incurred directly by the State or by
contract,
* * * * * * *
(4) an amount equal to the amount (if any) by which--
(A) the lesser of--
* * * * * * *
(B) the total amount of any penalties
assessed against the State under section 477(e)
during the fiscal year in which the quarter
occurs[.]; plus
(5) an amount equal to the Federal medical assistance
percentage (as defined in section 1905(b)) of the total
amount expended during such quarter as relative
guardianship assistance payments under section 473(d)
pursuant to relative guardianship assistance
agreements.
* * * * * * *
DEFINITIONS
Sec. 475. As used in this part or part B of this
title:
(1) The term ``case plan'' means a written document
which includes at least the following:
* * * * * * *
(C) To the extent available and accessible,
the health and education records of the child,
including--
(i) the names and addresses of the
child's health and educational
providers;
(ii) the child's grade level
performance;
(iii) the child's school record;
[(iv) assurances that the child's
placement in foster care takes into
account proximity to the school in
which the child is enrolled at the time
of placement;]
[(v)](iv) a record of the child's
immunizations;
[(vi)](v) the child's known medical
problems;
[(vii)](vi) the child's medications;
and
[(viii)](vii) any other relevant
health and education information
concerning the child determined to be
appropriate by the State agency.
* * * * * * *
(F) In the case of a child with respect to
whom the permanency plan is placement with a
relative and receipt of relative guardianship
assistance payments under section 473(d), a
description of--
(i) the steps that the agency has
taken to determine that it is not
appropriate for the child to be
returned home or adopted;
(ii) the reasons why a permanent
placement with a fit and willing
relative through a relative
guardianship assistance arrangement is
in the child's best interests;
(iii) the ways in which the child
meets the eligibility requirements for
a relative guardianship assistance
payment;
(iv) the efforts the agency has made
to discuss adoption by the child's
relative guardian who is to receive
such payments as a more permanent
alternative to legal guardianship and,
in the case of such a relative guardian
who has chosen not to pursue adoption,
documentation of the reasons therefor;
and
(v) the efforts made by the State
agency to secure the consent of the
child's parent or parents to the
relative guardianship assistance
arrangement, or the reasons why the
efforts were not made.
(G) A plan for ensuring the educational
stability of the child while in foster care,
including--
(i) assurances that the placement of
the child in foster care takes into
account the appropriateness of the
current educational setting and the
proximity to the school in which the
child is enrolled at the time of
placement; and
(ii)(I) an assurance that the State
agency has coordinated with appropriate
local educational agencies (as defined
under section 9101 of the Elementary
and Secondary Education Act of 1965) to
ensure that the child remains in the
school in which the child is enrolled
at the time of placement; or
(II) if remaining in such school is
not in the best interests of the child,
assurances by the State agency and the
local educational agencies to provide
immediate and appropriate enrollment in
a new school, with all of the
educational records of the child
provided to the school.
(2) in the 1st sentence of paragraph (4)(A)--
* * * * * * *
(4)(A) The term ``foster care maintenance payments''
means payments to cover the cost of (and the cost of
providing) food, clothing, shelter, daily supervision,
school supplies, a child's personal incidentals,
liability insurance with respect to a child, [and
reasonable] reasonable travel to the child's home for
visitation. In the case of institutional care, such
term shall include the reasonable costs of
administration and operation of such institution as are
necessarily required to provide the items described in
the preceding sentence, and reasonable travel for the
child to remain in the school in which the child is
enrolled at the time of placement.
* * * * * * *
(5) The term ``case review system'' means a procedure
for assuring that--
(A) each child has a case plan designed to
achieve placement in a safe setting that is the
least restrictive (most family like) and most
appropriate setting available and in close
proximity to the parents' home, consistent with
the best interest and special needs of the
child, which--
* * * * * * *
(F) a child shall be considered to have
entered foster care on the earlier of--
(i) the date of the first judicial
finding that the child has been
subjected to child abuse or neglect; or
(ii) the date that is 60 days after
the date on which the child is removed
from the home; [and]
(G) the foster parents (if any) of a child
and any preadoptive parent or relative
providing care for the child are provided with
notice of, and an opportunity to be heard in,
any review or hearing to be held with respect
to the child, except that this subparagraph
shall not be construed to require that any
foster parent, preadoptive parent, or relative
providing care for the child be made a party to
such a review or hearing solely on the basis of
such notice and opportunity to be heard[.]; and
(H) during the 90-day period immediately
prior to the date of the legal emancipation of
a child, whether during that period foster care
maintenance payments are being made on the
child's behalf or the child is receiving
benefits or services under section 477, a
caseworker on the staff of the State agency,
and, as appropriate, other representatives of
the child provide the child with assistance and
support in developing a transition plan that is
personalized at the direction of the child,
includes specific options on housing, health
insurance, education, local opportunities for
mentors and continuing support services, and
work force supports and employment services,
and is as detailed as the child may elect.
* * * * * * *
(8)(A) Subject to subparagraph (B), the term
``child'' means an individual who has not attained 18
years of age.
(B) At the option of a State, the term shall
include an individual--
(i)(I) who is in foster care under
the responsibility of the State;
(II) with respect to whom an
adoption assistance agreement
is in effect under section 473
if the child had attained 16
years of age before the
agreement became effective; or
(III) with respect to whom a
relative guardianship
assistance agreement is in
effect under section 473(d) if
the child had attained 16 years
of age before the agreement
became effective;
(ii) who has attained 18 years of
age;
(iii) who has not attained 19, 20, or
21 years of age, as the State may
elect; and
(iv) who--
(I) is completing secondary
education or a program leading
to an equivalent credential;
(II) is enrolled in an
institution which provides
post-secondary or vocational
education;
(III) is participating in a
program or activity designed to
promote, or remove barriers to,
employment;
(IV) is employed for at least
80 hours per month; or
(V) the State determines is
particularly vulnerable or a
high-risk individual.
JOHN H. CHAFEE FOSTER CARE INDEPENDENCE PROGRAM
Sec. 477. (a) Purpose.--The purpose of this section is to
provide States with flexible funding that will enable programs
to be designed and conducted--
(1) to identify children who are likely to remain in
foster care until 18 years of age and to help these
children make the transition to self-sufficiency by
providing services such as assistance in obtaining a
high school diploma, career exploration, vocational
training, job placement and retention, training in
daily living skills, training in budgeting and
financial management skills, substance abuse
prevention, and preventive health activities (including
smoking avoidance, nutrition education, and pregnancy
prevention);
* * * * * * *
(5) to provide financial, housing, counseling,
employment, education, and other appropriate support
and services to former foster care recipients between
18 and 21 years of age to complement their own efforts
to achieve self-sufficiency and to assure that program
participants recognize and accept their personal
responsibility for preparing for and then making the
transition from adolescence to adulthood; [and]
(6) to make available vouchers for education and
training, including postsecondary training and
education, to youths who have aged out of foster
care[.]; and
(7) to provide the services referred to in this
subsection to children who, after attaining 16 years of
age, have left foster care for relative guardianship or
adoption.
(b) Applications.--
(1) In general.--A State may apply for funds from its
allotment under subsection (c) for a period of five
consecutive fiscal years by submitting to the
Secretary, in writing, a plan that meets the
requirements of paragraph (2) and the certifications
required by paragraph (3) with respect to the plan.
* * * * * * *
(3) Certifications.--The certifications required by
this paragraph with respect to a plan are the
following:
(A) A certification by the chief executive
officer of the State that the State will
provide assistance and services to children who
have left foster care because they have
attained 18 years of age, and who have not
attained 21 years of age.
* * * * * * *
(G) A certification by the chief executive
officer of the State that each Indian tribe in
the State has been consulted about the programs
to be carried out under the plan; that there
have been efforts to coordinate the program
with such tribes; [and that] that benefits and
services under the programs will be made
available to Indian children in the State on
the same basis as to other children in the
State[.]; and that the State will negotiate in
good faith with any Indian tribe, tribal
organization, or tribal consortium in the State
that does not receive an allotment under
subsection (j)(4) for a fiscal year and that
requests to develop an agreement with the State
to administer, supervise, or oversee the
programs to be carried out under the plan with
respect to the Indian children who are eligible
for such programs and who are under the
authority of the tribe, organization, or
consortium and to receive from the State an
appropriate portion of the State allotment
under subsection (c) for the cost of such
administration, supervision, or oversight.
* * * * * * *
(i) Educational and Training Vouchers.--The following
conditions shall apply to a State educational and training
voucher program under this section:
(1) Vouchers under the program may be available to
youths otherwise eligible for services under the State
program under this section.
(2) For purposes of the voucher program, youths
adopted [from foster care after attaining age 16] or
entering relative guardianship from foster care after
attaining 16 years of age may be considered to be
youths otherwise eligible for services under the State
program under this section.
* * * * * * *
(j) Authority for an Indian Tribe, Tribal Organization, or
Tribal Consortium To Receive an Allotment.--
(1) In general.--An Indian tribe, tribal
organization, or tribal consortium with a plan approved
under section 479B, or which is receiving funding to
provide foster care under this part pursuant to a
cooperative agreement or contract with a State, may
apply for an allotment out of any funds authorized by
paragraph (1) or (2) (or both) of subsection (h).
(2) Application.--A tribe, organization, or
consortium desiring an allotment under paragraph (1)
shall submit an application to the Secretary to
directly receive such allotment that includes a plan
which--
(A) satisfies such requirements of paragraphs
(2) and (3) of subsection (b) as the Secretary
determines are appropriate;
(B) contains a description of the tribe's,
organization's, or consortium's consultation
process regarding the programs to be carried
out under the plan with each State for which a
portion of an allotment under subsection (c)
would be redirected to the tribe, organization,
or consortium; and
(C) contains an explanation of the results of
such consultation, particularly with respect
to--
(i) determining the
eligibility for benefits and
services of Indian children to
be served under the programs to
be carried out under the plan;
and
(ii) the process for
consulting with the State in
order to ensure the continuity
of benefits and services for
such children who will
transition from receiving
benefits and services under
programs carried out under a
State plan under subsection (b)
(2) to receiving benefits and
services under programs carried
out under a plan under this
subsection.
(3) Payments.--The Secretary shall pay an Indian
tribe, tribal organization, or tribal consortium with
an application and plan approved under this subsection
from the allotment determined for the tribe,
organization, or consortium under paragraph (4) in the
same manner as is provided in section 474(a)(4) (and,
where requested, and if funds are appropriated, section
474(e)) with respect to a State, or in such other
manner as is determined appropriate by the Secretary,
except that in no case shall an Indian tribe, a tribal
organization, or a tribal consortium receive a lesser
proportion of such funds than a State is authorized to
receive under those sections.
(4) Allotment.--From the amounts allotted to a State
under subsection (c) for a fiscal year, the Secretary
shall allot to each Indian tribe, tribal organization,
or tribal consortium with an application and plan
approved under this subsection for that fiscal year an
amount equal to the tribal foster care ratio determined
under paragraph (5) for the tribe, organization, or
consortium multiplied by the allotment amount of the
State within which the tribe, organization, or
consortium is located. The allotment determined under
this paragraph is deemed to be a part of the allotment
determined under section 477(c) for the State in which
the Indian tribal organization, or tribal consortium is
located.
(5) Tribal foster care ratio.--For purposes of
paragraph (4), the tribal foster care ratio means, with
respect to an Indian tribe, tribal organization, or
tribal consortium, the ratio of--
(A) the number of children in foster care
under the responsibility of the Indian tribe,
tribal organization, or tribal consortium
(either directly or under supervision of the
State), in the most recent fiscal year for
which the information is available; to
(B) the sum of--
(i) the total number of
children in foster care under
the responsibility of the State
within which the Indian tribe,
tribal organization, or tribal
consortium is located; and
(ii) the total number of
children in foster care under
the responsibility of all
Indian tribes, tribal
organizations, or tribal
consortia in the State (either
directly or under supervision
of the State) that have a plan
approved under this subsection.
* * * * * * *
SEC. 479A. ANNUAL REPORT.
The Secretary, in consultation with Governors, State
legislatures, State and local public officials responsible for
administering child welfare programs, and child welfare
advocates, shall--
* * * * * * *
SEC. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL ORGANIZATIONS.
(a) Definitions of Indian Tribe; Tribal Organizations.--In
this section, the terms ``Indian tribe'' and ``tribal
organization'' have the meanings given those terms in section 4
of the Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450b).
(b) Authority.--Except as otherwise provided in this
section, this part shall apply in the same manner as this part
applies to a State to an Indian tribe, tribal organization, or
tribal consortium that elects to operate a program under this
part and has a plan approved by the Secretary under section 471
in accordance with this section.
(c) Plan Requirements.--
(1) In general.--An Indian tribe, tribal
organization, or tribal consortium that elects to
operate a program under this part shall include with
its plan submitted under section 471 the following:
(A) Financial management.--Evidence
demonstrating that the tribe, organization, or
consortium has not had any uncorrected
significant or material audit exceptions under
Federal grants or contracts that directly
relate to the administration of social services
for the 3-year period prior to the date on
which the plan is submitted.
(B) Service areas and populations.--For
purposes of complying with section 471(a)(3), a
description of the service area or areas and
populations to be served under the plan and an
assurance that the plan shall be in effect in
all service area or areas and for all
populations served by the tribe, organization,
or consortium.
(C) Eligibility.--
(i) In general.--Subject to clause
(ii), an assurance that the plan will
provide--
(I) foster care maintenance
payments under section 472 only
on behalf of children who
satisfy the eligibility
requirements of subsection (a)
of that section;
(II) adoption assistance
payments under section 473
pursuant to adoption assistance
agreements only on behalf of
children who satisfy the
eligibility requirements for
such payments under that
section; and
(III) at the option of the
tribe, organization, or
consortium, relative
guardianship assistance
payments in accordance with
section 473(d) only on behalf
of children who meet the
requirements of paragraph
(3)(B) of that section.
(ii) Satisfaction of foster care
eligibility requirements.--For purposes
of determining whether a child whose
placement and care are the
responsibility of an Indian tribe,
tribal organization, or tribal
consortium with a plan approved under
section 471 in accordance with this
section satisfies the requirements of
section 472(a), the following shall
apply:
(I) Use of affidavits, etc.--
Only with respect to the first
12 months for which such plan
is in effect, the requirement
in paragraph (1) of section
472(a) shall not be interpreted
so as to prohibit the use of
affidavits or nunc pro tunc
orders as verification
documents in support of the
reasonable efforts and contrary
to the welfare of the child
judicial determinations
required under that paragraph.
(II) AFDC eligibility
requirement.--The State plan
approved under section 402 (as
in effect on July 16, 1996) of
the State in which the child
resides at the time of removal
from the home shall apply to
the determination of whether
the child satisfies paragraph
(3) of section 472(a).
(D) Option to claim in-kind expenditures from
third-party sources for non-Federal share of
administrative and training costs during
initial implementation period.--Only for fiscal
year quarters beginning after September 30,
2009, and before October 1, 2014, a list of the
in-kind expenditures (which shall be fairly
evaluated, and may include plants, equipment,
administration, or services) and the third-
party sources of such expenditures that the
tribe, organization, or consortium may claim as
part of the non-Federal share of administrative
or training expenditures attributable to such
quarters for purposes of receiving payments
under section 474(a)(3). The Secretary shall
permit a tribe, organization, or consortium to
claim in-kind expenditures from third party
sources for such purposes during such quarters
subject to the following:
(i) No effect on authority for
tribes, organizations, or consortia to
claim in-kind expenditures to the same
extent States may claim in-kind
expenditures.--Nothing in this
subparagraph shall be construed as
preventing a tribe, organization, or
consortium from claiming any in-kind
expenditures for purposes of receiving
payments under section 474(a) that a
State with a plan approved under
section 471(a) could claim for such
purposes.
(ii) Fiscal year 2010 or 2011.--
``(I) Expenditures other than
for training.--With respect to
amounts expended during a
fiscal year quarter beginning
after September 30, 2009, and
before October 1, 2011, for
which the tribe, organization,
or consortium is eligible for
payments under subparagraph
(C), (D), or (E) of section
474(a)(3), not more than 25
percent of such amounts may
consist of in-kind expenditures
from third-party sources
specified in the list required
under this subparagraph to be
submitted with the plan.
(I) Training expenditures.--
With respect to amounts
expended during a fiscal year
quarter beginning after
September 30, 2009, and before
October 1, 2011, for which the
tribe, organization, or
consortium is eligible for
payments under subparagraph (A)
or (B) of section 474(a)(3),
not more than 12 percent of
such amounts may consist of in-
kind expenditures from third-
party sources that are
specified in such list and
described in subclause (III).
(III) Sources described.--For
purposes of subclause (II), the
sources described in this
subclause are the following:
(aa) A State or local
government.
(bb) An Indian tribe,
tribal organization, or
tribal consortium other
than the tribe,
organization, or
consortium submitting
the plan.
(cc) A public
institution of higher
education.
(dd) A Tribal College
or University (as
defined in section 316
of the Higher Education
Act of 1965 (20 U.S.C.
1059c)).
(ee) A private
charitable
organization.
(iii) Fiscal year 2012, 2013, or
2014.--
(I) In general.--Except as
provided in subclause (II) and
clause (v), with respect to
amounts expended during any
fiscal year quarter beginning
after September 30, 2011, and
before October 1, 2014, for
which the tribe, organization,
or consortium is eligible for
payments under any subparagraph
of section 474(a)(3), the only
in-kind expenditures from
third-party sources that may be
claimed by the tribe,
organization, or consortium for
purposes of determining the
non-Federal share of such
expenditures (without regard to
whether the expenditures are
specified on the list required
under this subparagraph to be
submitted with the plan) are
in-kind expenditures that are
specified in regulations
promulgated by the Secretary
under section 301(e)(2) of the
Improved Adoption Incentives
and Relative Guardianship
Support Act of 2008 and are
from an applicable third-party
source specified in such
regulations, and do not exceed
the applicable percentage for
claiming such in-kind
expenditures specified in the
regulations.
(II) Transition period for
early approved tribes,
organizations, or consortia.--
Subject to clause (v), if the
tribe, organization, or
consortium is an early approved
tribe, organization, or
consortium (as defined in
subclause (III)), the Secretary
shall not require the tribe,
organization, or consortium to
comply with such regulations
before October 1, 2013. Until
the earlier of the date such
tribe, organization, or
consortium comes into
compliance with such
regulations or October 1, 2013,
the limitations on the claiming
of in-kind expenditures from
third-party sources under
clause (ii) shall continue to
apply to such tribe,
organization, or consortium
(without regard to fiscal
limitation) for purposes of
determining the non-Federal
share of amounts expended by
the tribe, organization, or
consortium during any fiscal
year quarter that begins after
September 30, 2011, and before
such date of compliance or
October 1, 2013, whichever is
earlier.
(III) Definition of early
approved tribe, organization,
or consortium.--For purposes of
subclause (II), the term
``early approved tribe,
organization, or consortium''
means an Indian tribe, tribal
organization, or tribal
consortium that had a plan
approved under section 471 in
accordance with this section
for any quarter of fiscal year
2010 or 2011.
(iv) Fiscal year 2015 and
thereafter.--Subject to clause (v),
with respect to amounts expended during
any fiscal year quarter beginning after
September 30, 2014, for which the
tribe, organization, or consortium is
eligible for payments under any
subparagraph of section 474(a)(3), in-
kind expenditures from third-party
sources may be claimed for purposes of
determining the non-Federal share of
expenditures under any subparagraph of
section 474(a)(3) only in accordance
with the regulations promulgated by the
Secretary under section 301(e)(2) of
the Improved Adoption Incentives and
Relative Guardianship Support Act of
2008.
(v) Contingency rule.--If at the time
expenditures are made for a fiscal year
quarter beginning after September 30,
2011, and before October 1, 2014, for
which a tribe, organization, or
consortium may receive payments for
under section 474(a)(3), no regulations
required to be promulgated under
section 301(e) (2) of the Improved
Adoption Incentives and Relative
Guardianship Support Act of 2008 are in
effect, and no legislation has been
enacted specifying otherwise--
(I) in the case of any
quarter of fiscal year 2012,
2013, or 2014, the limitations
on claiming in-kind
expenditures from third-party
sources under clause (ii) shall
apply (without regard to fiscal
limitation) for purposes of
determining the non-Federal
share of such expenditures; and
(II) in the case of any
quarter of fiscal year 2015 or
any fiscal year thereafter, no
tribe, organization, or
consortium may claim in-kind
expenditures from third-party
sources for purposes of
determining the non-Federal
share of such expenditures if a
State with a plan approved
under section 471(a) could not
claim in-kind expenditures from
third-party sources for such
purposes.
(2) Clarification of tribal authority to establish
standards for tribal foster family homes and tribal
child care institutions.--For purposes of complying
with section 471(a)(10), an Indian tribe, tribal
organization, or tribal consortium shall establish and
maintain a tribal authority or authorities which shall
be responsible for establishing and maintaining tribal
standards for tribal foster family homes and tribal
child care institutions.
(3) Consortium.--The participating Indian tribes or
tribal organizations of a tribal consortium may develop
and submit a single plan under section 471 that meets
the requirements of this section.
(d) Determination of Federal Medical Assistance Percentage
for Foster Care Maintenance and Adoption Assistance Payments.--
(1) Per capita income.--For purposes of determining
the Federal medical assistance percentage applicable to
an Indian tribe, a tribal organization, or a tribal
consortium under paragraphs (1), (2), and (5) of
section 474(a), the calculation of the per capita
income of the Indian tribe, tribal organization, or
tribal consortium shall be based upon the service
population of the Indian tribe, tribal organization, or
tribal consortium, except that in no case shall an
Indian tribe, a tribal organization, or a tribal
consortium receive less than the Federal medical
assistance percentage for any State in which the tribe,
organization, or consortium is located.
(2) Consideration of other information.--Before
making a calculation under paragraph (1), the Secretary
shall consider any information submitted by an Indian
tribe, a tribal organization, or a tribal consortium
that the Indian tribe, tribal organization, or tribal
consortium considers relevant to making the calculation
of the per capita income of the Indian tribe, tribal
organization, or tribal consortium.
(e) Nonapplication to Cooperative Agreements and
Contracts.--Any cooperative agreement or contract entered into
between an Indian tribe, a tribal organization, or a tribal
consortium and a State for the administration or payment of
funds under this part that is in effect as of the date of
enactment of this section shall remain in full force and
effect, subject to the right of either party to the agreement
or contract to revoke or modify the agreement or contract
pursuant to the terms of the agreement or contract. Nothing in
this section shall be construed as affecting the authority for
an Indian tribe, a tribal organization, or a tribal consortium
and a State to enter into a cooperative agreement or contract
for the administration or payment of funds under this part.
(f) John H. Chafee Foster Care Independence Program.--
Except as provided in section 477(j), subsection (b) of this
section shall not apply with respect to the John H. Chafee
Foster Care Independence Program established under section 477
(or with respect to payments made under section 474(a)(4) or
grants made under section 474(e)).
(g) Rule of Construction.--Nothing in this section shall be
construed as affecting the application of subsection (h) of
section 472 to a child on whose behalf payments are paid under
such section, or the application of subsection (b) of section
473 to a child on whose behalf payments are made under that
section pursuant to an adoption assistance agreement or a
relative guardianship assistance agreement, by an Indian tribe,
tribal organization, or tribal consortium that elects to
operate a foster care and adoption assistance program in
accordance with this section.
SEC. 479C. GRANTS TO STATES THAT SUCCESSFULLY COLLABORATE WITH AND
SUPPORT TRIBES TO IMPROVE PERMANENCY OUTCOMES FOR
INDIAN CHILDREN.
(a) Definitions.--In this section:
(1) Grant year.--The term ``grant year'' means each
of fiscal years 2010, 2011, 2012, 2013, and 2014.
(2) Indian children.--The term ``Indian children''
means children who are members of, enrolled in, or
affiliated with, or eligible for membership,
enrollment, or affiliation with, an Indian tribe.
(3) Indian tribe, tribal organization, tribal
consortium.--The terms ``Indian tribe, tribal
organization, and tribal consortium'' have the meaning
given those terms in section 479B(a).
(4) State.--The term ``State'' means any of the 50
States or the District of Columbia with State plans
approved under part B and this part that elect to apply
for a grant under this section.
(5) Successful collaboration and tribal support
state.--The term ``Successful Collaboration and Tribal
Support State'' means, with respect to any grant year,
a State that the Secretary determines has demonstrated
significant evidence of successful collaboration and
Tribal support (as determined under subsection (c)) for
the fiscal year preceding the grant year.
(b) Grants.--The Secretary shall make a grant pursuant to
this paragraph to each State for each grant year for which the
Secretary determines that the State is a Successful
Collaboration and Tribal Support State.
(c) Significant Evidence of Successful Collaboration and
Tribal Support.--
(1) In general.--For purposes of subsection (a)(5),
significant evidence of successful collaboration and
Tribal support shall be demonstrated through submission
by a State of the following evidence to the Secretary:
(A) Evidence of collaboration by the State
with an Indian tribe, tribal organization, or
tribal consortium to plan for and ensure access
to services and supports for Indian children
and their families which includes, at a
minimum, evidence of the measures and
activities required under sections 422(b)(9),
471(a)(29), and 477(b)(3)(G).
(B) Evidence that the State has obtained from
the Secretary, or is engaged in accessing
(including through the National Child Welfare
Resource Center for Tribes established under
section 479D), technical assistance to improve
services and permanency outcomes for Indian
children and their families, such as through
improved identification of Indian children,
increased recruitment of Indian foster family
homes, and, consistent with the requirements of
the Indian Child Welfare Act of 1978 (25 U.S.C.
1901 et seq.), improved rates of family
reunification, legal or relative guardianships,
or adoptive homes.
(C) Evidence of improved outcomes for Indian
children and their families and such other data
as the Secretary may require to verify that an
improvement in outcomes appropriate for Indian
children and their families have been achieved.
(2) Form and manner.--The Secretary shall establish
the form and manner in which a State that elects to
apply for a grant under this section shall submit the
evidence described in each subparagraph of paragraph
(1). To the extent practicable, the requirements for
such evidence shall be consistent with data
requirements under the Indian Child Welfare Act of 1978
(25 U.S.C. 1901 et seq.).
(d) Amount of Grant.--The amount of the grant payable under
this section to a Successful Collaboration and Tribal Support
State for a grant year is equal to the product of--
(1) the amount appropriated under subsection (e) for
that year; and
(2) the ratio of--
(A) the number of Indian children in t he
State (as determined for purposes of making
payments under section 428; to
(B) the sum of the number of such children
determined for all Successful Collaboration and
Tribal Support States for the grant year.
(e) Appropriation.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated to the Secretary for purposes of making payments
under this section, $5,000,000 for each of fiscal years 2010
through 2014.
SEC. 479D. NATIONAL CHILD WELFARE RESOURCE CENTER FOR TRIBES.
(a) Establishment.--The Secretary shall establish a
National Child Welfare Resource Center for Tribes that is--
(1) specifically and exclusively dedicated to meeting
the needs of Indian tribes, tribal organizations, (as
defined in section 479B(a)), tribal consortia, and
States in improving services and permanency outcomes
for Indian children and their families through the
provision of assistance described in subsection (b);
and
(2) not part of any existing national child welfare
resource center.
(b) Assistance Provided.--
(1) In general.--The National Child Welfare Resource
Center for Tribes shall--
(A) provide information, advice, educational
materials, and technical assistance to Indian
tribes and tribal organizations with respect to
the types of services, administrative
functions, data collection, program management,
and reporting that are provided for under State
plans under part B and this part; and
(B) assist and provide technical assistance
to--
(i) Indian tribes, tribal
organizations, and tribal consortia
seeking to operate a program under part
B or this part through direct
application to the Secretary under
section 479B; and
(ii) Indian tribes, tribal
organizations, tribal consortia, and
States seeking to develop cooperative
agreements to provide for payments
under this part or satisfy the
requirements of section 422(b)(9),
471(a)(29), or 477(b)(3)(G).
(2) Implementation authority.--The
Secretary may provide the assistance
described in paragraph (1) either
directly or through a grant or contract
with public or private organizations
knowledgeable and experienced in the
field of Indian tribal affairs and
child welfare.
(c) Appropriations.--There is appropriated to the
Secretary, out of any money in the Treasury of the United
States not otherwise appropriated, $1,000,000 for each of
fiscal years 2009 through 2013 to carry out this section.
* * * * * * *
TITLE XI--GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE
SIMPLIFICATION
* * * * * * *
EFFECT OF FAILURE TO CARRY OUT STATE PLAN
Sec. 1130A. In an action brought to enforce a provision of
the Social Security Act, such provision is not to be deemed
unenforceable because of its inclusion in a section of the Act
requiring a State plan or specifying the required contents of a
State plan. This section is not intended to limit or expand the
grounds for determining the availability of private actions to
enforce State plan requirements other than by overturning any
such grounds applied in Suter v. Artist M., 112 S. Ct. 1360
(1992), but not applied in prior Supreme Court decisions
respecting such enforceability: Provided, however, That this
section is not intended to alter the holding in Suter v. Artist
M. that section 471(a)(15) of the Act is not enforceable in a
private right of action.
SEC. 1130B. DEMONSTRATION PROJECTS REGARDING LICENSING OF IMMEDIATE
RELATIVE FOSTER PARENTS.
(a) Definitions.--In this section:
(1) Children in foster care.--The term ``children in
foster care'' means children who are placed in foster
family homes receiving funds under part B or E of title
IV.
(2) Demonstration projects.--The term ``demonstration
projects'' means the projects conducted under this
section.
(3) Directly funded tribal iv-e program.--The term
``directly funded tribal IV-E program'' means a program
established under section 479B by an Indian tribe,
tribal organization, or tribal consortium (as defined
in subsection (a) of such section).
(4) Immediate relative foster parent.--The term
``immediate relative foster parent'' means, with
respect to a child in foster care, a foster parent of
the child who is an adult sibling, grandparent, aunt,
or uncle of the child.
(5) State.--The term ``State'' means any of the 50
States or the District of Columbia with a State plan
approved under section 471(a).
(b) Establishment.--The Secretary shall establish not more
than 10 demonstration projects to determine the extent to which
flexibility in the application of certain licensing standards
to foster family homes of immediate relative foster parents
results in improved well-being and permanency outcomes for
children in foster care.
(c) Requirements.--
(1) Number of projects.--Of the demonstration
projects conducted under this section, at least----
``(A) 2 projects shall be conducted in States
with a large number of rural areas, as
determined by the Secretary;
(B) 1 project shall be conducted in a State
in which the State plan under this part is
administered by a political subdivision of the
State; and
(2) 1 project shall be conducted by a
directly funded tribal IV-E program
(2) Application to certain licensing standards.--For
purposes of placing a child in foster care in the home
of an immediate relative foster parent of the child,
and determining whether the home satisfies standards
established by a State or directly funded tribal IV-E
program for purposes of complying with section
471(a)(10), a State or directly funded tribal IV-E
program selected to conduct a demonstration project
under this section may modify the extent to which the
home is required to comply with any or all of the
following standards in order to be a licensed foster
family home for the child:
(A) Standards relating to the number or size
of bedrooms in the home, but only if the State
or tribal program applies appropriate
safeguards for age and gender.
(B) Standards relating to the number of
bathrooms in the home, but only if the State or
tribal program applies appropriate safeguards
for age and gender.
(C) Standards relating to overall square
footage of the home.
(3) Implementation; duration.--The demonstration
projects shall--
(A) begin not later than 1 year after the
date of enactment of this section; and
(B) be conducted for a 2-year period.
(d) Report.--Not later than 1 year after the date on which
the projects are completed, the Secretary shall submit to the
Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate a report that--
(1) evaluates, with respect to each State or directly
funded tribal IV-E program conducting a project, the
impact of the projects on the well-being of children in
foster care and the extent to which the projects result
in improved permanency outcomes for children in foster
care, based on the past performance of the State (or,
in the case of a directly funded tribal IV-E program,
based on the past performance of each State in which
the program is conducted); and
(2) includes such recommendations for administrative
or legislative action as the Secretary determines
appropriate.
* * * * * * *
INTERNAL REVENUE CODE OF 1986
* * * * * * *
Subtitle A--Income Taxes
CHAPTER 1--NORMAL TAXES AND SURTAXES
Subchapter A--Determination of Tax Liability
PART IV--CREDITS AGAINST TAX
Subpart A--Nonrefundable Personal Credits
* * * * * * *
SEC. 24. CHILD TAX CREDIT.
(a) Allowance of Credit.--There shall be allowed as a
credit against the tax imposed by this chapter for the taxable
year with respect to each qualifying child of the taxpayer for
which the taxpayer is allowed a deduction under section 151 an
amount equal to $1,000.
* * * * * * *
Subchapter B--Computation of Taxable Income
PART V--DEDUCTIONS FOR PERSONAL EXEMPTIONS
* * * * * * *
SEC. 152. DEPENDENT DEFINED.
* * * * * * *
(c) Qualifying Child.--For purposes of this section--
(1) In general.--The term ``qualifying child'' means,
with respect to any taxpayer for any taxable year, an
individual--
(A) who bears a relationship to the taxpayer
described in paragraph (2),
(B) who has the same principal place of abode
as the taxpayer for more than one-half of such
taxable year,
(C) who meets the age requirements of
paragraph (3), [and]
(D) who has not provided over one-half of
such individual's own support for the calendar
year in which the taxable year of the taxpayer
begins[.], and
(E) who has not filed a joint return (other
than only for a claim of refund) with the
individual's spouse under section 6013 for the
taxable year beginning in the calendar year in
which the taxable year of the taxpayer begins.
* * * * * * *
(2) Relationship.--For purposes of paragraph (1)(A),
an individual bears a relationship to the taxpayer
described in this paragraph if such individual is--
(A) a child of the taxpayer or a descendant
of such a child, or
(B) a brother, sister, stepbrother, or
stepsister of the taxpayer or a descendant of
any such relative.
(3) Age requirements.--
(A) In general.--For purposes of paragraph
(1)(C), an individual meets the requirements of
this paragraph if such individual is younger
than the taxpayer claiming such individual as a
qualifying child and--
* * * * * * *
(4) Special rule relating to 2 or more [claiming] who
can claim the same qualifying child.--
(A) In general.--[Except as provided in
subparagraph (B), if (but for this paragraph)
an individual may be and is claimed as a
qualifying child by 2 or more taxpayers] Except
as provided in subparagraphs (B) and (C), if
(but for this paragraph) an individual may be
claimed as a qualifying child by 2 or more
taxpayers for a taxable year beginning in the
same calendar year, such individual shall be
treated as the qualifying child of taxpayer who
is--
(i) a parent of the individual, or
* * * * * * *
(C) No parent claiming qualifying child.--If
the parents of an individual may claim such
individual as a qualifying child but no parent
so claims the individual, such individual may
be claimed as the qualifying child of another
taxpayer but only if the adjusted gross income
of such taxpayer is higher than the highest
adjusted gross income of any parent of the
individual.
Subtitle F--Procedure and Administration
CHAPTER 61--INFORMATION AND RETURNS
Subchapter B--Miscellaneous Provisions
* * * * * * *
SEC. 6103. CONFIDENTIALITY AND DISCLOSURE OF RETURNS AND RETURN
INFORMATION
(a) General Rule.--Returns and return information shall be
confidential, and except as authorized by this title--
(1) no officer or employee of the United States,
(2) no officer or employee of any State, any local
law enforcement agency receiving information under
subsection (i)(7)(A), any local child support
enforcement agency, or any local agency administering a
program listed in subsection (1)(7)(D) who has or had
access to returns or return information under this
section, and (3) no other person (or officer or
employee thereof) who has or had access to returns or
return information under subsection (e) (1)(D)(iii),
paragraph (6), (10), (12), (16), (19), or (20) of
subsection (1), paragraph (2) or (4)(B) of subsection
(m), or subsection (n),
shall disclose any return or return information obtained by him
in any manner in connection with his service as such an officer
or an employee or otherwise or under the provisions of this
section. For purposes of this subsection, the term ``officer or
employee'' includes a former officer or employee.
* * * * * * *
(10) Disclosure of certain information to agencies
requesting a reduction under subsection [(c), (d) or
(e)] (c), (d), (e) or (f) of section 6402.
(A) Return information from internal revenue
service.--The Secretary may, upon receiving a
written request, disclose to officers and
employees of any agency seeking a reduction
under subsection [(c), (d), or (e)] (c), (d),
(e) or (f) of section 6402, to officers and
employees of the Department of Labor for
purposes of facilitating the exchange of data
in connection with a request made under
subsection (f)(5) of section 6402, and to
officers and employees of the Department of the
Treasury.
(B)(i) Restriction on use of disclosed
information.--Any officers and employees of an
agency receiving return information under
subparagraph (A) shall use such information
only for the purposes of, and to the extent
necessary in, establishing appropriate agency
records, locating any person with respect to
whom a reduction under subsection [(c), (d), or
(e)] (c), (d), (e) or (f) of section 6402 is
sought for purposes of collecting the debt with
respect to which the reduction is sought, or in
the defense of any litigation or administrative
procedure ensuing from a reduction made under
subsection [(c), (d), or (e)] (c), (d), (e) or
(f) of section 6402.
(ii) Notwithstanding clause (i), return
information disclosed to officers and employees
of the Department of Labor may be accessed by
agents who maintain and provide technological
support to the Department of Labor's Interstate
Connection Network (ICON) solely for the
purpose of providing such maintenance and
support.
* * * * * * *
(p) Procedure and Recordkeeping.--
(1) Manner, time, and place of inspections.--
* * * * * * *
(4) Safeguards.--Any Federal agency described in
subsection (h)(2), (h)(5), (i)(1), (2), (3), (5), or
(7), (j)(1), (2), or (5), (k)(8), (1)(1), (2), (3),
(5), (10), (11), (13), (14), or (17) or (o)(1), the
Government Accountability Office, the Congressional
Budget Office, or any agency, body, or commission
described in subsection (d), (i)(3)(B)(i) or 7(A)(ii),
or (l)(6), (7), (8), (9), (12), (15), or (16) or any
other person described in subsection [(l)(16),]
(l)(10), (16), (18), (19), or (20) shall, as a
condition for receiving returns or return information--
* * * * * * *
(F) Upon completion of use of such returns or
return information.--
(i) in the case of an agency, body,
or commission described in subsection
(d), (i)(3)(B)(i), or (l)(6), (7), (8),
(9), or (16), or any other person
described in subsection [(l)(16),]
(l)(10), (16), (18), (19), or (20)
return to the Secretary such returns or
return information (along with any
copies made therefrom) or make such
returns or return information
undisclosable in any manner and furnish
a written report to the Secretary
describing such manner,
* * * * * * *
(iii) in the case of the Department
of Health and Human Services for
purposes of subsection (m)(6), destroy
all such return information upon
completion of its use in providing the
notification for which the information
was obtained, so as to make such
information undisclosable; except that
the conditions of subparagraphs (A),
(B), (C), (D), and (E) shall cease to
apply with respect to any return or
return information if, and to the
extent that, such return or return
information is disclosed in the course
of any judicial or administrative
proceeding and made a part of the
public record thereof. If the Secretary
determines that any such agency, body,
or commission, including an agency or
any other person described in
subsection [(l)(16),] (l)(10), (16),
(18), (19), or (20), or the Government
Accountability Office or the
Congressional Budget Office, has failed
to, or does not, meet the requirements
of this paragraph, he may, after any
proceedings for review established
under paragraph (7), take such actions
as are necessary to ensure such
requirements are met, including
refusing to disclose returns or return
information to such agency, body, or
commission, including an agency or any
other person described in subsection
[(l)(16),] (l)(10), (16), (18), (19),
or (20), or the Government
Accountability Office or the
Congressional Budget Office, until he
determines that such requirements have
been or will be met. In the case of any
agency which receives any mailing
address under paragraph (2), (4), (6),
or (7) of subsection (m) and which
discloses any such mailing address to
any agent or which receives any
information under paragraph (6)(A),
(10), (12)(B), or (16) of subsection
(l) and which discloses any such
information to any agent, or any person
including an agent described in
subsection [(l)(16),] (l)(10) or (16)
paragraph shall apply to such agency
and each such agent or other person
(except that, in the case of an agent,
or any person 11 including an agent
described in subsection [(l)(16),]
(l)(10) or (16) any report to the
Secretary or other action with respect
to the Secretary shall be made or taken
through such agency). For purposes of
applying this paragraph in any case to
which subsection (m)(6) applies, the
term ``return information'' includes
related blood donor records (as defined
in section 1141(h)(2) of the Social
Security Act).
* * * * * * *
Subtitle C--Employment Taxes
CHAPTER 23--FEDERAL UNEMPLOYMENT TAX ACT
* * * * * * *
SEC. 3304. APPROVAL OF STATE LAWS
(a) Requirements.--The Secretary of Labor shall approve any
State law submitted to him, within 30 days of such submission,
which he finds provides that--
(1) all compensation is to be paid through public
employment offices or such other agencies as the
Secretary of Labor may approve;
* * * * * * *
(4) all money withdrawn from the unemployment fund of
the State shall be used solely in the payment of
unemployment compensation, exclusive of expenses of
administration, and for refunds of sums erroneously
paid into such fund and refunds paid in accordance with
the provisions of section 3305(b); except that--
(A) an amount equal to the amount of employee
payments into the unemployment fund of a State
may be used in the payment of cash benefits to
individuals with respect to their disability,
exclusive of expenses of administration;
* * * * * * *
(E) amounts may be withdrawn for the payment
of short-time compensation under a plan
approved by the Secretary of Labor; [and]
(F) amounts may be withdrawn for the payment
of allowances under a self-employment
assistance program (as defined in section
3306(t); and
(G) with respect to amounts of covered
unemployment compensation debt (as defined in
section 6402(f)(4)) collected under section
6402(f)--
(i) amounts may be deducted to pay
any fees authorized under such section;
and
(ii) the penalties and interest
described in section 6402(f)(4)(B) may
be transferred to the appropriate State
fund into which the State would have
deposited such amounts had the person
owing the debt paid such amounts
directly to the State;
* * * * * * *
Subtitle F--Procedure and Administration
CHAPTER 65--ABATEMENTS, CREDITS, AND REFUNDS
Subchapter A--Procedure in General
* * * * * * *
SEC. 6402. AUTHORITY TO MAKE CREDITS OR REFUNDS.
(a) General rule.--In the case of any overpayment, the
Secretary, within the applicable period of limitations, may
credit the amount of such overpayment, including any interest
allowed thereon, against any liability in respect of an
internal revenue tax on the part of the person who made the
overpayment and shall, subject to subsections [(c), (d), and
(e)] (c), (d), (e), and (f) refund any balance to such person.
(b) Credits against estimated tax.--
* * * * * * *
(d) Collection of Debts Owed to Federal Agencies.--
(1) In general.--
* * * * * * *
(2) Priorities for offset.--Any overpayment by a
person shall be reduced pursuant to this subsection
after such overpayment is reduced pursuant to
subsection (c) with respect to past-due support
collected pursuant to an assignment under section
402(a)(26) (!1) of the Social Security Act [and before
such overpayment is reduced pursuant to subsection (e)]
and before such overpayment is reduced pursuant to
subsections (e) and (f) and before such overpayment is
credited to the future liability for tax of such person
pursuant to subsection (b). If the Secretary receives
notice from a Federal agency or agencies of more than
one debt subject to paragraph (1) that is owed by a
person to such agency or agencies, any overpayment by
such person shall be applied against such debts in the
order in which such debts accrued.
* * * * * * *
(e) Collection of Past-Due, Legally Enforceable State
Income Tax Obligations.--
(1) In general.--
* * * * * * *
(3) Priorities for offset.--Any overpayment by a
person shall be reduced pursuant to this subsection--
(A) after such overpayment is reduced
pursuant to--
(i) subsection (a) with respect to
any liability for any internal revenue
tax on the part of the person who made
the overpayment;
(ii) subsection (c) with respect to
past-due support; and
(iii) subsection (d) with respect to
any past-due, legally enforceable debt
owed to a Federal agency; and
(B) before such overpayment is credited to
the future liability for any Federal internal
revenue tax of such person pursuant to
subsection (b).
If the Secretary receives notice from one or more agencies of
the State of more than one debt subject to paragraph (1) or
subsection (f) that is owed by such person to such an agency,
any overpayment by such person shall be applied against such
debts accrued.
* * * * * * *
(f) Collection of Unemployment Compensation Debts Resulting
From Fraud.--
(1) In general. Upon receiving notice from any State
that a named person owes a covered unemployment
compensation debt to such State, the Secretary shall,
under such conditions as may be prescribed by the
Secretary--
(A) reduce the amount of any overpayment
payable to such person by the amount of such
covered unemployment compensation debt;
(B) pay the amount by which such overpayment
is reduced under subparagraph (A) to such State
and notify such State of such person's name,
taxpayer identification number, address, and
the amount collected; and
(C) notify the person making such overpayment
that the overpayment has been reduced by an
amount necessary to satisfy a covered
unemployment compensation debt.
If an offset is made pursuant to a joint return, the notice
under subparagraph (C) shall include information related to the
rights of a spouse of a person subject to such an offset.
(2) Priorities for offset.--Any overpayment by a
person shall be reduced pursuant to this subsection--
(A) after such overpayment is reduced
pursuant to--
(i) subsection (a) with respect to
any liability for any internal revenue
tax on the part of the person who made
the overpayment;
(ii) subsection (c) with respect to
past-due support; and
(iii) subsection (d) with respect to
any past-due, legally enforceable debt
owed to a Federal agency; and
(B) before such overpayment is credited to
the future liability for any Federal internal
revenue tax of such person pursuant to
subsection (b).
If the Secretary receives notice from a State or States of
more than one debt subject to paragraph (1) or subsection (e)
that is owed by a person to such State or States, any
overpayment by such person shall be applied against such debts
in the order in which such debts accrued.
(3) Offset permitted only against residents of state
seeking offset.--Paragraph (1) shall apply to an
overpayment by any person for a taxable year only if
the address shown on the Federal return for such
taxable year of the overpayment is an address within
the State seeking the offset.
(4) Notice; consideration of evidence.--No State may
take action under this subsection until such State--
(A) notifies by certified mail with return
receipt the person owing the covered
unemployment compensation debt that the State
proposes to take action pursuant to this
section;
(B) provides such person at least 60 days to
present evidence that all or part of such
liability is not legally enforceable or due to
fraud;
(C) considers any evidence presented by such
person and determines that an amount of such
debt is legally enforceable and due to fraud;
and
(D) satisfies such other conditions as the
Secretary may prescribe to ensure that the
determination made under subparagraph (C) is
valid and that the State has made reasonable
efforts to obtain payment of such covered
unemployment compensation debt.
(5) Covered unemployment compensation debt.--For
purposes of this subsection, the term ``covered
unemployment compensation debt'' means a debt which
resulted from a judgment rendered by a court of
competent jurisdiction and which is no longer subject
to judicial review in an amount equal to--
(A) a past-due debt for erroneous payment of
unemployment compensation due to fraud which
has become final under the law of a State
certified by the Secretary of Labor pursuant to
section 3304 and which remains uncollected;
(B) contributions due to the unemployment
fund of a State for which the State has
determined the person to be liable due to
fraud; and
(C) any penalties and interest assessed on
such debt.
(6) Regulations.--
(A) In general.--The Secretary may issue
regulations prescribing the time and manner in
which States must submit notices of covered
unemployment compensation debt and the
necessary information that must be contained in
or accompany such notices. The regulations may
specify the minimum amount of debt to which the
reduction procedure established by paragraph
(1) may be applied.
(B) Fee payable to secretary.--The
regulations may require States to pay a fee to
the Secretary, which may be deducted from
amounts collected, to reimburse the Secretary
for the cost of applying such procedure. Any
fee paid to the Secretary pursuant to the
preceding sentence shall be used to reimburse
appropriations which bore all or part of the
cost of applying such procedure.
(C) Submission of notices through secretary
of labor.--The regulations may include a
requirement that States submit notices of
covered unemployment compensation debt to the
Secretary via the Secretary of Labor in
accordance with procedures established by the
Secretary of Labor. Such procedures may require
States to pay a fee to the Secretary of Labor
to reimburse the Secretary of Labor for the
costs of applying this subsection. Any such fee
shall be established in consultation with the
Secretary of the Treasury. Any fee paid to the
Secretary of Labor may be deducted from amounts
collected and shall be used to reimburse the
appropriation account which bore all or part of
the cost of applying this subsection.
(7) Erroneous payment to state.--Any State receiving
notice from the Secretary that an erroneous payment has
been made to such State under paragraph (1) shall pay
promptly to the Secretary, in accordance with such
regulations as the Secretary may prescribe, an amount
equal to the amount of such erroneous payment (without
regard to whether any other amounts payable to such
State under such paragraph have been paid to such
State).
[(f)](g) Review of Reductions.--No court of the United
States shall have jurisdiction to hear any action, whether
legal or equitable, brought to restrain or review a reduction
authorized by subsection [(c), (d), or (e)](c), (d), (e), or
(f). No such reduction shall be subject to review by the
Secretary in an administrative proceeding. No action brought
against the United States to recover the amount of any such
reduction shall be considered to be a suit for refund of tax.
This subsection does not preclude any legal, equitable, or
administrative action against the Federal agency or State to
which the amount of such reduction was paid or any such action
against the Commissioner of Social Security which is otherwise
available with respect to recoveries of overpayments of
benefits under section 204 of the Social Security Act.
[(g)](h) Federal Agency.--For purposes of this section, the
term ``Federal agency'' means a department, agency, or
instrumentality of the United States, and includes a Government
corporation (as such term is defined in section 103 of title 5,
United States Code).
[(h)](i) Treatment of Payments to States.--The Secretary
may provide that, for purposes of determining interest, the
payment of any amount withheld under [subsection (c) or
(e)]subsection (c), (e), or (f) to a State shall be treated as
a payment to the persons making the overpayment.
[(i)](j) Cross Reference.--For procedures relating to
agency notification of the Secretary, see section 3721 of title
31, United States Code.
[(j)](k) Refunds to Certain Fiduciaries of Insolvent
Members of Affiliated Groups.--Notwithstanding any other
provision of law, in the case of an insolvent corporation which
is a member of an affiliated group of corporations filing a
consolidated return for any taxable year and which is subject
to a statutory or court-appointed fiduciary, the Secretary may
by regulation provide that any refund for such taxable year may
be paid on behalf of such insolvent corporation to such
fiduciary to the extent that the Secretary determines that the
refund is attributable to losses or credits of such insolvent
corporation.
[(k)](l) Explanation of Reason for Refund Disallowance.--In
the case of a disallowance of a claim for refund, the Secretary
shall provide the taxpayer with an explanation for such
disallowance.
* * * * * * *
TITLE 31--MONEY AND FINANCE
SUBTITLE I--GENERAL
CHAPTER 3--DEPARTMENT OF THE TREASURY
SUBCHAPTER II--ADMINISTRATIVE
* * * * * * *
[SEC. 323. INVESTMENT OF OPERATING CASH
[(a) To manage United States cash, the Secretary of the
Treasury may invest any part of the operating cash of the
Treasury for not more than 90 days. Investments may be made in
obligations of--
[(1) depositories maintaining Treasury tax and loan
accounts secured by pledged collateral acceptable to
the Secretary; and
[(2) the United States Government.
(b) Subsection (a) of this section does not--
[(1) require the Secretary to invest a cash balance
held in a particular account; or
[(2) permit the Secretary to require the sale of
obligations by a particular person, dealer, or
financial institution.
[(c) The Secretary shall consider the prevailing
market in prescribing rates of interest for investments
under subsection (a)(1) of this section.]
SEC. 323. INVESTMENT OF OPERATING CASH
(a) To manage United States cash, the Secretary of the
Treasury may invest any part of the operating cash of the
Treasury for not more than 90 days. The Secretary may invest
the operating cash of the Treasury in--
(1) obligations of depositories maintaining Treasury
tax and loan accounts secured by pledged collateral
acceptable to the Secretary;
(2) obligations of the United States Government; and
(3) repurchase agreements with parties acceptable to
the Secretary.
(b) Subsection (a) of this section does not require the
Secretary to invest a cash balance held in a particular
account.
(c) The Secretary shall consider the prevailing market in
prescribing rates of interest for investments under subsection
(a)(1) of this section.
(d)(1) The Secretary of the Treasury shall submit each
fiscal year to the appropriate committees a report detailing
the investment of operating cash under subsection
(a) for the preceding fiscal year. The report shall
describe the Secretary's consideration of risks associated with
investments and the actions taken to manage such risks.
(2) For purposes of paragraph (1), the term
``appropriate committees'' means the Committee on Ways
and Means of the House of Representatives and the
Committee on Finance of the Senate.''
* * * * * * *