Transition to Adulthood Program Act of 1999

Summary: Transition to Adulthood Program Act of 1999 - Amends part E (Foster Care and Adoption Assistance) of title IV of the Social Security Act and the Internal Revenue Code with regard to the transition of foster children to self-sufficiency, including the provision of nonresidential services to assist in such transition, making respective changes chiefly: (1) allowing States with approved part E plans to make foster care maintenance payments with respect to a child who has not attained age 21 who would otherwise be ineligible for such payments because of age if the child is completing secondary education, is enrolled in an institution that provides postsecondary education or vocational training, or is employed for at least 80 hours per month, and has a case plan providing for the child's achievement of independent living and residence in a setting that promotes personal responsibility; and (2) expanding the work opportunity tax credit to include certain individuals who, on the day before before attaining age 18, received foster care maintenance payments under an approved State part E plan or were in foster care under the responsibility of the State. 
Provides for an increase in the amount of assets allowable for children in foster care under SSA title IV part E. 
Directs the Secretary of Health and Human Services (HHS) to establish an action plan to promote collaboration between HHS and other Federal programs to promote the self-sufficiency of children aging out of foster care. 
Provides, with respect to the independent living initiatives program under SSA title IV part E, for: (1) the use of updated foster care data in the funding formula for determining the basic amount for such program for a State for a fiscal year (while removing State entitlement to such basic amount under State plan provisions); and (2) a funding increase under such program.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Transition to Adulthood Program Act 
of 1999''.

SEC. 2. TRANSITION OF FOSTER CHILDREN TO SELF-SUFFICIENCY.

    (a) In General.--Section 472 of the Social Security Act (42 U.S.C. 
672) is amended by adding at the end the following:
    ``(i) Each State with a plan approved under this part may make 
foster care maintenance payments (as defined in section 475(4)) under 
this part with respect to a child who has not attained 21 years of age 
and who would otherwise be ineligible for such payments by reason of 
age, but only if the child--
            ``(1) is--
                    ``(A) in the process of completing secondary 
                education;
                    ``(B) enrolled in an institution that provides 
                postsecondary education or vocational training; or
                    ``(C) employed for at least 80 hours per month; and
            ``(2) has a case plan which includes a specific plan for 
        how the child will achieve independent living, and which 
        provides for the child to reside in a setting that promotes 
        personal responsibility and encourages self-sufficiency.''.
    (b) Provision of Nonresidential Services To Assist in the 
Transition to Independent Adult Living.--Section 475(4)(A) of such Act 
(42 U.S.C. 675(4)(A)) is amended by adding at the end the following: 
``In the case of a child described in section 472(i), such term shall 
also include payments with respect to the child for programs designed 
to promote the education, training, or employment of the child.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1999.

SEC. 3. QUALIFIED FORMER FOSTER CARE RECIPIENTS ESTABLISHED AS A 
              TARGETED GROUP FOR PURPOSES OF COMPUTING THE WORK 
              OPPORTUNITY CREDIT FOR EMPLOYMENT OF CERTAIN NEW 
              EMPLOYEES.

    (a) General Rule.--Paragraph (1) of section 51(d) of the Internal 
Revenue Code of 1986 (relating to members of targeted groups) is 
amended by striking ``or'' at the end of subparagraph (G), by striking 
the period at the end of subparagraph (H) and inserting ``, or'', and 
by adding at the end the following new subparagraph:
                    ``(I) a qualified former foster care recipient.''.
    (b) Qualified Former Foster Care Recipient Defined.--Section 51(d) 
of such Code (relating to members of targeted groups) is amended by 
redesignating paragraphs (10), (11), and (12) as paragraphs (11), (12), 
and (13), respectively, and by inserting after paragraph (9) the 
following new paragraph:
            ``(10) Qualified former foster care recipient--The term 
        `qualified former foster care recipient' means an individual 
        who is certified by the local designated agency as--
                    ``(A) having attained age 18 but not age 25 on the 
                hiring date, and
                    ``(B) on the day before attaining age 18 being 
                either--
                            ``(i) a recipient of foster care 
                        maintenance payments under a State plan 
                        approved under part E of title IV of the Social 
                        Security Act, or
                            ``(ii) in the case of any individual not 
                        described in clause (i), in foster care under 
                        the responsibility of a State.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after December 31, 
1999.

SEC. 4. INCREASE IN AMOUNT OF ASSETS ALLOWABLE FOR CHILDREN IN FOSTER 
              CARE.

    Section 472(a) of the Social Security Act (42 U.S.C. 672(a)) is 
amended by adding at the end the following: ``In determining whether a 
child would have received aid under a State plan approved under section 
402 (as in effect on July 16, 1996), a child whose resources 
(determined pursuant to section 402(a)(7)(B), as so in effect) have a 
combined value of not more than $10,000 shall be considered to be a 
child whose resources have a combined value of not more than $1,000 (or 
such lower amount as the State may determine for purposes of such 
section 402(a)(7)(B)).''.

SEC. 5. INTERAGENCY COLLABORATION TO PROMOTE SELF-SUFFICIENCY OF 
              CHILDREN AGING OUT OF FOSTER CARE.

    The Secretary of Health and Human Services shall establish an 
action plan to promote collaboration between programs of the Department 
of Health and Human Services and programs of other Federal agencies, 
including housing programs, educational programs, and employment 
programs, for the purpose of promoting the self-sufficiency of children 
aging out of foster care.

SEC. 6. UPDATING OF FUNDING FORMULA FOR THE FOSTER CARE INDEPENDENT 
              LIVING INITIATIVES PROGRAM.

    (a) Use of Updated Foster Care Data.--Section 477(e)(1) of the 
Social Security Act (42 U.S.C. 677(e)(1)) is amended by striking all 
that precedes subparagraph (C) and inserting the following:
    ``(e)(1)(A) The basic amount for a State for a fiscal year shall be 
an amount which bears the same ratio to the basic ceiling for the 
fiscal year as the State's average number of children receiving foster 
care maintenance payments under this part in fiscal year 1996 bears to 
the total of the average number of children receiving such payments 
under this part for all States for fiscal year 1996.
    ``(B) The maximum additional amount for a State for a fiscal year 
shall be an amount which bears the same ratio to the additional ceiling 
for the fiscal year as the basic amount for the State for the fiscal 
year bears to $58,000,000.''.
    (b) Funding Increase.--Section 477(e)(1)(C)(i) of such Act (42 
U.S.C. 677(e)(1)(C)(i)) is amended to read as follows:
            ``(i) The term `basic ceiling' means $58,000,000 for fiscal 
        year 2000 and each succeeding fiscal year.''.
    (c) Hold Harmless Provision.--Section 474(a)(4) of such Act (42 
U.S.C. 674(a)(4)) is amended to read as follows:
            ``(4) an amount equal to the greater of--
                    ``(A) the sum of--
                            ``(i) so much of the amounts expended by 
                        the State to carry out programs under section 
                        477 as do not exceed the basic amount for the 
                        State for the fiscal year, as determined under 
                        section 477(e)(1)(A); and
                            ``(ii) the lesser of--
                                    ``(I) one-half of any additional 
                                amounts expended by the State for such 
                                programs; or
                                    ``(II) the maximum additional 
                                amount for the State for the fiscal 
                                year, as determined under section 
                                477(e)(1)(B); or
                    ``(B) the total amount required to be paid to the 
                State under this paragraph (as in effect on September 
                30, 1999) for fiscal year 1999.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1999.