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106TH CONGRESS

1ST SESSION H. R. 671

To amend part E of title IV of the Social Security Act to help children

aging out of foster care to make the transition to becoming independent

adults, to amend the Internal Revenue Code of 1986 to expand the

work opportunity tax credit to include individuals who were in foster

care just before their 18th birthday, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 10, 1999

Mr. CARDIN (for himself, Mr. STARK, Mr. MATSUI, Mr. COYNE, and Mr. JEFFERSON) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend part E of title IV of the Social Security Act

to help children aging out of foster care to make the

transition to becoming independent adults, to amend the

Internal Revenue Code of 1986 to expand the work opportunity tax credit to include individuals who were in

foster care just before their 18th birthday, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Transition to Adult3 hood Program Act of 1999’’.

4 SEC. 2. TRANSITION OF FOSTER CHILDREN TO SELF-SUFFI5 CIENCY.

6 (a) IN GENERAL.—Section 472 of the Social Security

7 Act (42 U.S.C. 672) is amended by adding at the end the

8 following:

9 ‘‘(i) Each State with a plan approved under this part

10 may make foster care maintenance payments (as defined

11 in section 475(4)) under this part with respect to a child

12 who has not attained 21 years of age and who would other13 wise be ineligible for such payments by reason of age, but

14 only if the child—

15 ‘‘(1) is—

16 ‘‘(A) in the process of completing second17 ary education;

18 ‘‘(B) enrolled in an institution that pro19 vides postsecondary education or vocational

20 training; or

21 ‘‘(C) employed for at least 80 hours per

22 month; and

23 ‘‘(2) has a case plan which includes a specific

24 plan for how the child will achieve independent liv25 ing, and which provides for the child to reside in a
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1 setting that promotes personal responsibility and en2 courages self-sufficiency.’’.

3 (b) PROVISION OF NONRESIDENTIAL SERVICES TO

4 ASSIST IN THE TRANSITION TO INDEPENDENT ADULT

5 LIVING.—Section 475(4)(A) of such Act (42 U.S.C.

6 675(4)(A)) is amended by adding at the end the following:

7 ‘‘In the case of a child described in section 472(i), such

8 term shall also include payments with respect to the child

9 for programs designed to promote the education, training,

10 or employment of the child.’’.

11 (c) EFFECTIVE DATE.—The amendments made by

12 this section shall take effect on October 1, 1999.

13 SEC. 3. QUALIFIED FORMER FOSTER CARE RECIPIENTS ES14 TABLISHED AS A TARGETED GROUP FOR

15 PURPOSES OF COMPUTING THE WORK OP16 PORTUNITY CREDIT FOR EMPLOYMENT OF

17 CERTAIN NEW EMPLOYEES.

18 (a) GENERAL RULE.—Paragraph (1) of section 51(d)

19 of the Internal Revenue Code of 1986 (relating to mem20 bers of targeted groups) is amended by striking ‘‘or’’ at

21 the end of subparagraph (G), by striking the period at

22 the end of subparagraph (H) and inserting ‘‘, or’’, and

23 by adding at the end the following new subparagraph:

24 ‘‘(I) a qualified former foster care recipi25 ent.’’.
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1 (b) QUALIFIED FORMER FOSTER CARE RECIPIENT

2 DEFINED.—Section 51(d) of such Code (relating to mem3 bers of targeted groups) is amended by redesignating

4 paragraphs (10), (11), and (12) as paragraphs (11), (12),

5 and (13), respectively, and by inserting after paragraph

6 (9) the following new paragraph:

7 ‘‘(10) QUALIFIED FORMER FOSTER CARE RE8 CIPIENT—The term ‘qualified former foster care re9 cipient’ means an individual who is certified by the

10 local designated agency as—

11 ‘‘(A) having attained age 18 but not age

12 25 on the hiring date, and

13 ‘‘(B) on the day before attaining age 18

14 being either—

15 ‘‘(i) a recipient of foster care mainte16 nance payments under a State plan ap17 proved under part E of title IV of the So18 cial Security Act, or

19 ‘‘(ii) in the case of any individual not

20 described in clause (i), in foster care under

21 the responsibility of a State.’’.

22 (c) EFFECTIVE DATE.—The amendments made by

23 this section shall apply to individuals who begin work for

24 the employer after December 31, 1999.
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1 SEC. 4. INCREASE IN AMOUNT OF ASSETS ALLOWABLE FOR

2 CHILDREN IN FOSTER CARE.

3 Section 472(a) of the Social Security Act (42 U.S.C.

4 672(a)) is amended by adding at the end the following:

5 ‘‘In determining whether a child would have received aid

6 under a State plan approved under section 402 (as in ef7 fect on July 16, 1996), a child whose resources (deter8 mined pursuant to section 402(a)(7)(B), as so in effect)

9 have a combined value of not more than $10,000 shall

10 be considered to be a child whose resources have a com11 bined value of not more than $1,000 (or such lower

12 amount as the State may determine for purposes of such

13 section 402(a)(7)(B)).’’.

14 SEC. 5. INTERAGENCY COLLABORATION TO PROMOTE

15 SELF-SUFFICIENCY OF CHILDREN AGING OUT

16 OF FOSTER CARE.

17 The Secretary of Health and Human Services shall

18 establish an action plan to promote collaboration between

19 programs of the Department of Health and Human Serv20 ices and programs of other Federal agencies, including

21 housing programs, educational programs, and employment

22 programs, for the purpose of promoting the self-suffi23 ciency of children aging out of foster care.
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1 SEC. 6. UPDATING OF FUNDING FORMULA FOR THE FOS2 TER CARE INDEPENDENT LIVING INITIA3 TIVES PROGRAM.

4 (a) USE OF UPDATED FOSTER CARE DATA.—Section

5 477(e)(1) of the Social Security Act (42 U.S.C. 677(e)(1))

6 is amended by striking all that precedes subparagraph (C)

7 and inserting the following:

8 ‘‘(e)(1)(A) The basic amount for a State for a fiscal

9 year shall be an amount which bears the same ratio to

10 the basic ceiling for the fiscal year as the State’s average

11 number of children receiving foster care maintenance pay12 ments under this part in fiscal year 1996 bears to the

13 total of the average number of children receiving such pay14 ments under this part for all States for fiscal year 1996.

15 ‘‘(B) The maximum additional amount for a State

16 for a fiscal year shall be an amount which bears the same

17 ratio to the additional ceiling for the fiscal year as the

18 basic amount for the State for the fiscal year bears to

19 $58,000,000.’’.

20 (b) FUNDING INCREASE.—Section 477(e)(1)(C)(i) of

21 such Act (42 U.S.C. 677(e)(1)(C)(i)) is amended to read

22 as follows:

23 ‘‘(i) The term ‘basic ceiling’ means $58,000,000

24 for fiscal year 2000 and each succeeding fiscal

25 year.’’.
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1 (c) HOLD HARMLESS PROVISION.—Section 474(a)(4)

2 of such Act (42 U.S.C. 674(a)(4)) is amended to read as

3 follows:

4 ‘‘(4) an amount equal to the greater of—

5 ‘‘(A) the sum of—

6 ‘‘(i) so much of the amounts expended

7 by the State to carry out programs under

8 section 477 as do not exceed the basic

9 amount for the State for the fiscal year, as

10 determined under section 477(e)(1)(A);

11 and

12 ‘‘(ii) the lesser of—

13 ‘‘(I) one-half of any additional

14 amounts expended by the State for

15 such programs; or

16 ‘‘(II) the maximum additional

17 amount for the State for the fiscal

18 year, as determined under section

19 477(e)(1)(B); or

20 ‘‘(B) the total amount required to be paid

21 to the State under this paragraph (as in effect

22 on September 30, 1999) for fiscal year 1999.’’.

23 (d) EFFECTIVE DATE.—The amendments made by

24 this section shall take effect on October 1, 1999.

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