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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6193 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 6193

 To require States to take certain additional steps to assist children 
in foster care in making the transition to independent living, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 23, 2010

Mr. Langevin (for himself and Mr. Stark) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
 To require States to take certain additional steps to assist children 
in foster care in making the transition to independent living, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foster Youth Financial Security Act 
of 2010''.

SEC. 2. REQUIREMENT THAT STATES TAKE CERTAIN ADDITIONAL STEPS TO ASSIST 
              CHILDREN IN FOSTER CARE IN MAKING THE TRANSITION TO 
              INDEPENDENT LIVING.

    (a) State Plan Requirements.--
            (1) In general.--Section 477(b)(2) of the Social Security 
        Act (42 U.S.C. 677(b)(2)) is amended by adding at the end the 
        following:
                    ``(G) With respect to each child in foster care 
                under the responsibility of the State--
                            ``(i) within 6 months after the first case 
                        review of the case of the child, and annually 
                        thereafter, obtain from each consumer reporting 
                        agency (as defined in section 603(p) of the 
                        Fair Credit Reporting Act) any consumer report 
                        (as defined in section 603(d) of such Act) on 
                        the child, share the report with the child and 
                        the attorney and guardian ad litem of the 
                        child, and assist the child in resolving any 
                        inaccuracy in the report; and
                            ``(ii) if the child has attained 14 years 
                        of age--
                                    ``(I) assist the child in preparing 
                                to obtain, and in obtaining (as 
                                appropriate and in accordance with 
                                State law), a learner's permit and a 
                                license to operate a motor vehicle;
                                    ``(II) if the child has obtained a 
                                license to operate a motor vehicle, 
                                assist the child in obtaining 
                                automobile insurance;
                                    ``(III) assist the child in 
                                applying to, attending, securing 
                                financial aid for, and completing a 
                                postsecondary education or vocational 
                                training program;
                                    ``(IV) help determine if the child 
                                is eligible or potentially eligible for 
                                a Federal or State benefit, inform the 
                                child of the eligibility or potential 
                                eligibility, and assist the child in 
                                applying for any such benefit and in 
                                appealing any denial of any such 
                                benefit;
                                    ``(V) establish and manage an 
                                individual development account for the 
                                child using funds provided under this 
                                section, in accordance with subsection 
                                (k);
                                    ``(VI) assist the child, and the 
                                foster parents or kinship care 
                                providers (or, if the child has been 
                                placed with a biological parent or 
                                other prospective parent or guardian, 
                                the biological parent or other such 
                                parent or guardian) of the child in 
                                becoming educated about youth 
                                independence financial matters, 
                                especially matters relating to the 
                                successful transition of the child to 
                                independent living, by providing 
                                education in budgeting and financial 
                                management, applying for credit 
                                (especially student loans), job 
                                readiness, obtaining health care and 
                                health insurance, and obtaining and 
                                maintaining affordable and stable 
                                housing, with the goal of enabling the 
                                child, as an adult, to attain stable 
                                housing and employment, avoid 
                                dependence on government assistance, 
                                and achieve financial self-sufficiency;
                                    ``(VII) ensure that the child has a 
                                State-issued identification card;
                                    ``(VIII) assist the child in 
                                opening a personal bank account; and
                                    ``(IX) ensure that the child is 
                                provided with information on accessing 
                                health care after the child exits from 
                                foster care.''.
            (2) Individual development accounts.--Section 477 of such 
        Act (42 U.S.C. 677) is amended by adding at the end the 
        following:
    ``(k) Individual Development Accounts.--
            ``(1) In general.--An individual development account is 
        established and managed in accordance with this subsection if 
        the account is a trust created or organized in the United 
        States exclusively for the purpose of paying the qualified 
        expenses of an eligible individual, or enabling an eligible 
        individual to make an emergency withdrawal, but only if the 
        written governing instrument creating the trust contains the 
        following requirements:
                    ``(A) No contribution will be accepted unless the 
                contribution is in cash or by check.
                    ``(B) The trustee is a federally insured financial 
                institution, or a State insured financial institution 
                if no federally insured financial institution is 
                available.
                    ``(C) The assets of the trust will be invested in 
                accordance with the direction of the individual after 
                consultation with the qualified entity authorized to 
                make deposits into the account.
                    ``(D) The assets of the trust will not be 
                commingled with other property except in a common trust 
                fund or common investment fund.
                    ``(E) Except as provided in subparagraph (F), any 
                amount in the trust that is attributable to a deposit 
                made by a qualified entity may be paid or distributed 
                out of the trust only for the purpose of paying the 
                qualified expenses of the individual.
                    ``(F) Any balance in the trust on the day after the 
                date on which the individual for whose benefit the 
                trust is established dies shall be distributed within 
                30 days after that date as directed by that individual 
                to another individual development account established 
                for the benefit of another individual.
            ``(2) Custodial accounts.--For purposes of this subsection, 
        a custodial account shall be treated as a trust if the assets 
        of the custodial account are held by a bank (as defined in 
        section 408(n) of the Internal Revenue Code of 1986) or another 
        person who demonstrates, to the satisfaction of the Secretary, 
        that the manner in which the person will administer the 
        custodial account will be consistent with the requirements of 
        this subsection, and if the custodial account would, except for 
        the fact that it is not a trust, constitute an individual 
        development account described in paragraph (1) of this 
        subsection. For purposes of this subsection, in the case of a 
        custodial account treated as a trust by reason of the preceding 
        sentence, the custodian of the account shall be treated as the 
        trustee of the account.
            ``(3) Eligible individual.--In this subsection, the term 
        `eligible individual' means an individual who--
                    ``(A) has attained 18 years of age; and
                    ``(B) is in foster care or a kinship guardianship 
                arrangement, or has been adopted.
            ``(4) Emergency withdrawal.--In paragraph (1), the term 
        `emergency withdrawal' means, with respect to an individual 
        development account, a withdrawal by the individual for whose 
        benefit the trust is established, that--
                    ``(A) is of funds deposited by the individual in 
                the account;
                    ``(B) is permitted on a case-by-case basis by a 
                qualified entity authorized to make deposits into the 
                account; and
                    ``(C) is made for--
                            ``(i) expenses for medical care or 
                        necessary to obtain medical care, for the 
                        individual, the spouse ofthe individual, or a 
                        dependent of the individual with respect to 
                        whom the individual is allowed a deduction 
                        under section 151 of the Internal Revenue Code 
                        of 1986;
                            ``(ii) payments necessary to prevent the 
                        eviction of the individual from the residence 
                        of the individual, or foreclosure on the 
                        mortgage for the principal residence of the 
                        individual; or
                            ``(iii) payments necessary to enable the 
                        individual to meet necessary living expenses 
                        following loss of employment.
            ``(5) Qualified entity.--The term 'qualified entity' 
        means--
                    ``(A) 1 or more not-for-profit organizations 
                described in section 501(c)(3) of the Internal Revenue 
                Code of 1986 and exempt from taxation under section 
                501(a) of such Code;
                    ``(B) a State or unit of local government;
                    ``(C) an entity which has entered into an agreement 
                with a State or unit of local government under which 
                the entity is to provide for individual development 
                accounts for eligible children or children making the 
                transition to independent living; or
                    ``(D) an entity that--
                            ``(i) is--
                                    ``(I) a credit union designated as 
                                a low-income credit union by the 
                                National Credit Union Administration 
                                (NCUA); or
                                    ``(II) an organization designated 
                                as a community development financial 
                                institution by the Secretary of the 
                                Treasury (or the Community Development 
                                Financial Institutions Fund); and
                            ``(ii) can demonstrate a collaborative 
                        relationship with a local community-based 
                        organization whose activities are designed to 
                        address poverty in the community and the needs 
                        of community members for economic independence 
                        and stability.
            ``(6) Qualified expenses.--The term `qualified expenses' 
        means any of the following:
                    ``(A) Housing expenses.--Expenses to secure and 
                maintain safe and decent housing.
                    ``(B) Educational expenses.--Educational expenses 
                paid from an individual development account directly to 
                an eligible educational institution. In this 
                subparagraph:
                            ``(i) Educational expenses.--The term 
                        `educational expenses' means the following:
                                    ``(I) Tuition and fees.--Tuition 
                                and fees required for the enrollment or 
                                attendance of a student at an eligible 
                                educational institution.
                                    ``(II) Fees, books, supplies, and 
                                equipment.--Fees, books, supplies, and 
                                equipment required for courses of 
                                instruction at an eligible educational 
                                institution.
                            ``(ii) Eligible educational institution.--
                        The term `eligible educational institution' 
                        means the following:
                                    ``(I) Secondary school.--A 
                                secondary school (as defined in section 
                                9101 of the Elementary and Secondary 
                                Education Act of 1965).
                                    ``(II) Vocational education 
                                school.--A school that provides 
                                vocational education.
                                    ``(III) Institution of higher 
                                education.--An institution described in 
                                section 101 or 102 of the Higher 
                                Education Act of 1965.
                                    ``(IV) Postsecondary vocational 
                                education school.--An area vocational 
                                education school (as defined in 
                                subparagraph (C) or (D) of section 
                                521(4) of the Carl D. Perkins 
                                Vocational and Applied Technology 
                                Education Act) which is in any State 
                                (as defined in section 521(33) of such 
                                Act).
                    ``(C) Employment expenses.--Amounts paid from an 
                individual development account to enable an eligible 
                individual to operate a business, purchase clothing or 
                supplies necessary to become or remain employed, or 
                purchase, maintain, or repair a motor vehicle 
                (including insurance).''.
    (b) State Evaluations.--Section 477(g) of such Act (42 U.S.C. 
677(g)) is amended by adding at the end the following:
            ``(3) State evaluations of specific services provided to 
        assist the transition to independent living.--
                    ``(A) In general.--Within 3 months after the end of 
                each fiscal year for which a State receives funds made 
                available under subsection (h)(3), the State shall 
                conduct an evaluation of the uses to which the funds 
                are put, and the effects of so using the funds, during 
                the fiscal year.
                    ``(B) Funding.--The Secretary shall reserve 5 
                percent of the amount specified in subsection (h)(3) 
                for a fiscal year for grants to States for evaluations 
                referred to in subparagraph (A) of this paragraph.''.
    (c) Elimination of Use of Social Security Number as Identifier for 
Foster Child.--Section 471(a) of such Act (42 U.S.C. 671(a)) is 
amended--
            (1) by striking ``and'' at the end of pararaph (32);
            (2) by striking the period at the end of paragraph (33) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(34) beginning 2 years after the date of the enactment of 
        this paragraph, provides for use of procedures and practices to 
        eliminate the use of the social security account number of a 
        child who is in foster care under the responsibility of the 
        State as an identifier for the child.''.
    (d) Funding.--Section 477(h) of such Act (42 U.S.C. 677(h)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(3) an additional $45,000,000, which are authorized to be 
        available to enable States to carry out the State plan 
        requirements described in subsection (b)(2)(G); and
            ``(4) an additional $5,000,000, which are authorized to be 
        available to the Secretary for a grant to a national coalition 
        or consortium of private, non-profit organizations and other 
        organizations focused on the needs of transitioning foster 
        youth, in consultation with individual organizations 
        experienced in addressing service delivery, legal issues, and 
        financial asset management issues, and identity safeguarding 
        issues related to youth, for the development of materials, 
        technical assistance, and other support to State foster care 
        agencies to aid in the implementation of subsection 
        (b)(2)(G).''.
    (e) Annual Reports to the Secretary.--Section 477 of such Act (42 
U.S.C. 677), as amended by subsection (a)(2) of this section, is 
amended by adding at the end the following:
    ``(k) State Reports to the Secretary.--Within 3 months after the 
end of each fiscal year, each State to which a grant is made under 
subsection (h)(1)(B) for a fiscal year shall submit to the Secretary a 
report on--
            ``(1) the number of children for whom the State obtained a 
        consumer report pursuant to subsection (b)(2)(G)(i) during the 
        fiscal year, and the number of such children whose report 
        contained a discrepancy; and
            ``(2) the total number of children provided services 
        pursuant to subsection (b)(2)(G) during the fiscal year, the 
        nature of the services so provided, and the effects of the 
        provision of financial security and financial management 
        services on the competence of the children in such matters.''.
    (f) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on October 1, 
        2010, and shall apply to payments under part E of title IV of 
        the Social Security Act for quarters beginning on or after such 
        date.
            (2) Delay permitted if state legislation required.--In the 
        case of a State plan approved under part E of title IV of the 
        Social Security Act which the Secretary of Health and Human 
        Services determines requires State legislation (other than 
        legislation appropriating funds) in order for the plan to meet 
        the additional requirements imposed by subsection (a), the 
        State plan shall not be regarded as failing to comply with the 
        requirements solely on the basis of the failure of the plan to 
        meet such additional requirements before the 1st day of the 1st 
        calendar quarter beginning after the close of the 1st regular 
        session of the State legislature that ends after the 1-year 
        period beginning with the date specified in paragraph (1) of 
        this subsection. For purposes of the preceding sentence, in the 
        case of a State that has a 2-year legislative session, each 
        year of the session is deemed to be a separate regular session 
        of the State legislature.

SEC. 3. TECHNICAL ASSISTANCE FOR CHILD WELFARE AGENCIES.

    On request of a State agency responsible for administering, or 
supervising the administration of, a State program authorized by part E 
of title IV of the Social Security Act, the Secretary of Health and 
Human Services, in consultation with the Chairman of the Federal Trade 
Commission with respect to matters pertaining to transactional 
security, shall provide the State agency with technical assistance in 
carrying out the amendments made by this Act, and may award grants to 
and enter into contracts with qualified non-profit or other community-
based service providers with substantive expertise to provide the 
assistance.
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