I
107TH CONGRESS
1ST SESSION
H. R. 2873
To extend and amend the program entitled Promoting Safe and Stable Fami-
lies under title IV–B, subpart 2 of the Social Security Act, and to
provide new authority to support programs for mentoring children of
incarcerated parents; to amend the Foster Care Independent Living
program under title IV–E of that Act to provide for educational and
training vouchers for youths aging out of foster care, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 10, 2001
Mr. HERGER (for himself and Mr. CARDIN) introduced the following bill;
which was referred to the Committee on Ways and Means
A BILL
To extend and amend the program entitled Promoting Safe
and Stable Families under title IV–B, subpart 2 of the
Social Security Act, and to provide new authority to
support programs for mentoring children of incarcerated
parents; to amend the Foster Care Independent Living
program under title IV–E of that Act to provide for
educational and training vouchers for youths aging out
of foster care, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION. 1. SHORT TITLE; REFERENCES IN ACT.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Promoting Safe and Stable Families Amendments of
2001’’.
(b) REFERENCES IN ACT.—Except as otherwise spec-
ified, amendments made by this Act to a section or other
provision are amendments to such sections or other provi-
sions of the Social Security Act.
TITLE I—PROMOTING SAFE AND
STABLE FAMILIES
PART A—GRANTS TO STATES FOR PROMOTING
SAFE AND STABLE FAMILIES
SEC. 101. FINDINGS AND PURPOSE.
Section 430 is amended to read as follows:
‘‘SEC. 430. FINDINGS AND PURPOSE.
‘‘(a) FINDINGS.—The Congress finds that there is a
continuing urgent need to protect children and to
strengthen families as demonstrated by the following:
‘‘(1) Family support programs directed at spe-
cific vulnerable populations have had positive effects
on parents, children, or both. The vulnerable popu-
lations for which programs have been shown to be
effective include teenage mothers with very young
children and families that have children with special
needs.
‘‘(2) Family preservation programs have been
shown to provide extensive and intensive services to
families in crisis.
‘‘(3) The time lines established by the Adoption
and Safe Families Act of 1997 have made the
prompt availability of services to address family
problems (and in particular the prompt availability
of appropriate services and treatment addressing
substance abuse) an important factor in successful
family reunification.
‘‘(4) The rapid increases in the annual number
of adoptions since the enactment of the Adoption
and Safe Families Act of 1997 have created a grow-
ing need for postadoption services and for service
providers with the particular knowledge and skills
required to address the unique issues adoptive fami-
lies and children may face.
‘‘(b) PURPOSE.—The purpose of this program is to
enable States to develop and establish, or expand, and to
operate coordinated programs of community-based family
support services, family preservation services, time-limited
family reunification services, and adoption promotion and
support services to accomplish the following objectives:
‘‘(1) To prevent child maltreatment among fam-
ilies at risk through the provision of supportive fam-
ily services.
‘‘(2) To assure children’s safety within the
home and preserve intact families in which children
have been maltreated, when the family’s problems
can be addressed effectively.
‘‘(3) To address the problems of families whose
children have been placed in foster care so that re-
unification may occur in a safe and stable manner
in accordance with the Adoption and Safe Families
Act of 1997.
‘‘(4) To support adoptive families by providing
support services as necessary so that they can make
a lifetime commitment to their children.’’.
SEC. 102. DEFINITION OF FAMILY SUPPORT SERVICES.
Section 431(a)(2) is amended by inserting ‘‘to
strengthen parental relationships and promote healthy
marriages,’’ after ‘‘environment,’’.
SEC. 103. REALLOTMENTS.
Section 433 is amended by adding at the end the fol-
lowing new subsection:
‘‘(d) REALLOTMENTS.—The amount of any allotment
to a State under this section for any fiscal year that the
State certifies to the Secretary will not be required for
carrying out the State plan under section 432 shall be
available for reallotment using the allotment methodology
specified in this section.’’.
SEC. 104. PAYMENTS TO STATES.
(a) IN GENERAL.—Section 434(a) is amended—
(1) by striking paragraph (2);
(2) by striking all that precedes subparagraph
(A) and inserting the following:
‘‘SEC. 434. (a) ENTITLEMENT.—Each State that has
a plan approved under section 432 shall be entitled to pay-
ment of the lesser of—’’; and
(3) by redesignating subparagraphs (A) and
(B) as paragraphs (1) and (2), respectively, and by
adjusting the left margins accordingly.
(b) CONFORMING AMENDMENTS.—Section 434(b) is
amended—
(1) in paragraph (1)—
(A) by striking ‘‘paragraph (1) or (2)(B)
of’’; and
(B) by striking ‘‘described in this subpart’’
and inserting ‘‘under the State plan under sec-
tion 432’’; and
(2) in paragraph (2), by striking ‘‘subsection
(a)(1)’’ and inserting ‘‘subsection (a)’’.
‘‘(4) The outcomes of adoptions finalized after
enactment of the Adoption and Safe Families Act of
1997.
‘‘(d) TECHNICAL ASSISTANCE.—The Secretary shall
provide technical assistance that helps States to—
‘‘(1) identify families with specific risk charac-
teristics for intervention;
‘‘(2) develop treatment models that address the
needs of families at risk, particularly families with
substance abuse issues;
‘‘(3) implement programs with well-articulated
theories of how the intervention will result in desired
changes among families at risk;
‘‘(4) establish mechanisms to ensure that serv-
ice provision matches the treatment model; and
‘‘(5) establish mechanisms to ensure that
postadoption services meet the needs of the indi-
vidual families and develop models to reduce the dis-
ruption rates of adoption.’’.
SEC. 106. AUTHORIZATION OF APPROPRIATIONS; RESERVA-
TION OF CERTAIN AMOUNTS.
(a) IN GENERAL.—Title IV is amended by adding
after section 435 the following new section:
‘‘SEC. 436. AUTHORIZATION OF APPROPRIATIONS; RES-
ERVATION OF CERTAIN AMOUNTS.
‘‘(a) AUTHORIZATION.—There are authorized to be
appropriated to carry out the provisions of this subpart
(other than section 438) $505,000,000 for each of fiscal
years 2002 through 2006.
‘‘(b) RESERVATION OF CERTAIN AMOUNTS.—From
the amount specified for each fiscal year under subsection
(a), the Secretary shall reserve amounts for use as follows:
‘‘(1) EVALUATION, RESEARCH, TRAINING, AND
TECHNICAL
ASSISTANCE.—The Secretary shall re-
serve $15,000,000 for fiscal year 2002, and
$20,000,000 for each of fiscal years 2003 through
2006, for expenditure by the Secretary—
‘‘(A) for research, training, and technical
assistance costs related to the program under
this subpart (other than section 438), including
expenditures for research of not less than
$9,000,000 for fiscal year 2002, and not less
than $14,000,000 for each of fiscal years 2003
through 2006; and
‘‘(B) for evaluation of State programs
based on the plans approved under section 432
and funded under this subpart, and any other
Federal, State, or local program, regardless of
whether federally assisted, that is designed to
achieve the same purposes as such State pro-
grams.
‘‘(2) STATE COURT IMPROVEMENTS.—The Sec-
retary shall reserve $20,000,000 for grants under
section 437.
‘‘(3) INDIAN TRIBES.—The Secretary shall re-
serve 2 percent of the amount described in sub-
section (a) for allotment to Indian tribes in accord-
ance with section 433(a).’’.
(b) CONFORMING AMENDMENTS.—Section 433 is
amended—
(1) in subsection (a), by striking ‘‘section
430(d)(3)’’ and inserting ‘‘section 436(b)(3)’’;
(2) in subsection (b)—
(A) by striking ‘‘section 430(b)’’ and in-
serting ‘‘section 436(a)’’; and
(B) by striking ‘‘section 430(d)’’ and in-
serting ‘‘section 436(b)’’; and
(3) in subsection (c)—
(A) by striking ‘‘section 430(b)’’ and in-
serting ‘‘section 436(a); and
(B) by striking ‘‘section 430(d) and insert-
ing ‘‘section 436(b)’’.
SEC. 107. STATE COURT IMPROVEMENTS.
(a) RELOCATION AND REDESIGNATION.—
(1) IN GENERAL.—Section 13712 of the Omni-
bus Budget Reconciliation Act of 1993 is relocated
and redesignated as section 437 of the Social Secu-
rity Act.
(2) CONFORMING AMENDMENTS.—Section 437,
as relocated and redesignated, is amended—
(A) in subsection (a)—
(i) in the matter preceding paragraph
(1), by striking ‘‘of title IV of the Social
Security Act’’; and
(ii) in paragraph (1)(A), by striking
‘‘of title IV of such Act’’; and
(B) in subsection (c)(2), by striking ‘‘sec-
tion 430(d)(2) of the Social Security Act’’ and
inserting ‘‘section 436(b)(2)’’.
(b) SCOPE OF ACTIVITIES.—
(1) Section 437(a)(2) is amended—
(A) by striking ‘‘changes’’ and inserting
‘‘improvements’’; and
(B) by inserting before the period ‘‘in
order to promote more timely court actions that
provide for the safety of children in foster care
and expedite their placement in appropriate
permanent settings’’.
(2) Section 437(c)(1) is amended in the matter
preceding subparagraph (A) by inserting ‘‘and im-
provement’’ after ‘‘assessment’’.
(c) ALLOTMENTS.—Section 437(c)(1) is amended by
striking all that follows ‘‘shall be entitled to payment,’’
and inserting ‘‘for each of fiscal years 2002 through 2006,
from amounts reserved pursuant to section 436(b)(2), of
an amount equal to the sum of $85,000 plus the amount
described in paragraph (2) for such fiscal year.’’
(d) FEDERAL SHARE.—Section 437(d) is amended—
(1) in the heading, by striking ‘‘USE OF GRANT
FUNDS’’ and inserting ‘‘FEDERAL SHARE’’; and
(2) by striking ‘‘to pay—’’ and all that follows
and inserting ‘‘to pay not more than 75 percent of
the cost of activities under this section in each of fis-
cal years 2002 through 2006.’’.
PART B—MENTORING CHILDREN OF PRISONERS
SEC. 121. PROGRAM AUTHORIZED.
Title IV is amended by adding after section 437 the
following new section:
‘‘SEC. 438. GRANTS FOR PROGRAMS FOR MENTORING CHIL-
DREN OF PRISONERS.
‘‘(a) FINDINGS AND PURPOSE.—
‘‘(1) FINDINGS.—
‘‘(A) In the period between 1991 and
1999, the number of children with a parent in-
carcerated in a Federal or State correctional fa-
cility increased by more than 100 percent, from
approximately 
900,000 
to 
approximately
2,000,000. In 1999, 2.1 percent of all children
in the United States had a parent in Federal or
State prison.
‘‘(B) Prior to incarceration, 64 percent of
female prisoners and 44 percent of male pris-
oners in State facilities lived with their children.
‘‘(C) Nearly 90 percent of the children of
incarcerated fathers live with their mothers,
and 79 percent of the children of incarcerated
mothers live with a grandparent or other rel-
ative. Only 10 percent of incarcerated mothers
and 2 percent of incarcerated fathers in State
prisons report that their child or children are in
foster care.
‘‘(D) Parental arrest and confinement lead
to stress, trauma, stigmatization, and separa-
tion problems for children. These problems are
coupled with existing problems that include pov-
erty, violence, parental substance abuse, high-
crime environments, intrafamilial abuse, child
abuse and neglect, multiple care givers, and/or
prior separations. As a result, these children
often exhibit a broad variety of behavioral, emo-
tional, health, and educational problems that
are often compounded by the pain of separa-
tion.
‘‘(E) Empirical research demonstrates that
mentoring is a potent force for improving chil-
dren’s behavior across all risk behaviors affect-
ing health. Quality, one-on-one relationships
that provide young people with caring role mod-
els for future success have profound, life-chang-
ing potential. Done right, mentoring markedly
advances youths’ life prospects. A widely cited
1995 study by Public/Private Ventures meas-
ured the impact of one Big Brothers Big Sis-
ters program and found significant effects in
the lives of youth—cutting first-time drug use
by almost half and first-time alcohol use by
about a third, reducing school absenteeism by
half, cutting assaultive behavior by a third, im-
proving parental and peer relationships, giving
youth greater confidence in their school work,
and improving academic performance.
‘‘(2) PURPOSE.—The purpose of this section is
to authorize the Secretary to make competitive
grants to local governments in areas with substantial
numbers of children of incarcerated parents, to sup-
port the establishment or expansion and operation of
programs using a network of public and private com-
munity entities to provide mentoring services for
children of prisoners.
‘‘(b) DEFINITIONS.—For purposes of this section:
‘‘(1) CHILDREN
OF
PRISONERS.—The term
‘children of prisoners’ means children one or both of
whose parents are incarcerated in a Federal or State
correctional facility. Such term shall be deemed to
include children who are in an ongoing mentoring
relationship in a program under this section at the
time of their parents’ release from prison, for pur-
poses of continued participation in the program.
‘‘(2) 
MENTORING.—The 
term 
‘mentoring’
means a structured, managed program in which chil-
dren are appropriately matched with screened and
trained adult volunteers for one-on-one relationships,
involving meetings and activities on a regular basis,
intended to meet, in part, the child’s need for in-
volvement with a caring and supportive adult who
provides a positive role model.
‘‘(3) MENTORING SERVICES.—The term ‘men-
toring services’ means those services and activities
that support a structured, managed program of
mentoring, including the management by trained
personnel of outreach to, and screening of, eligible
children; outreach to, education and training of, and
liaison with sponsoring local organizations; screening
and training of adult volunteers; matching of chil-
dren with suitable adult volunteer mentors; support
and oversight of the mentoring relationship; and es-
tablishment of goals and evaluation of outcomes for
mentored children.
‘‘(c) PROGRAM AUTHORIZED.—From the amounts
appropriated under subsection (g) for a fiscal year that
remains after applying subsection (g)(2), the Secretary
shall make grants under this section for each of fiscal
years 2002 through 2006 to local governments in areas
that have significant numbers of children of prisoners and
that submit applications meeting the requirements of this
section, including—
‘‘(1) two-thirds of such amount in grants in
amounts of up to $5,000,000 each; and
‘‘(2) one-third of such amount in grants in
amounts of up to $10,000,000 each.
‘‘(d) APPLICATION REQUIREMENTS.—In order to be
eligible for a grant under this section, the mayor or other
chief executive officer of a city, council of governments,
or other unit of government must submit to the Secretary
an application containing the following:
‘‘(1) PROGRAM DESIGN.—A description of the
proposed local program, including—
‘‘(A) a list of local public and private orga-
nizations and entities that will participate in
the mentoring network;
‘‘(B) the name, description, and qualifica-
tions of the entity that will coordinate and over-
see the activities of the mentoring network;
‘‘(C) the number of mentor-child matches
proposed to be established and maintained an-
nually under the program;
‘‘(D) such information as the Secretary
may require concerning the methods to be used
to recruit, screen support, and oversee individ-
uals participating as mentors, (which methods
shall include criminal background checks on
such individuals), and to evaluate outcomes for
participating children, including information
necessary to demonstrate compliance with re-
quirements established by the Secretary for the
program; and
‘‘(E) such other information as the Sec-
retary may require.
‘‘(2) COMMUNITY
CONSULTATION; COORDINA-
TION
WITH
OTHER
PROGRAMS.—A demonstration
that, in developing and implementing the program,
the local government will, to the extent feasible and
appropriate—
‘‘(A) consult with public and private com-
munity entities, including religious organiza-
tions, and including, as appropriate, Indian
tribal organizations and urban Indian organiza-
tions, and with family members of potential cli-
ents;
‘‘(B) coordinate the programs and activi-
ties under the program with other Federal,
State, and local programs serving children and
youth; and
‘‘(C) consult with appropriate Federal,
State, and local corrections, workforce develop-
ment, and substance abuse and mental health
agencies.
‘‘(3) EQUAL ACCESS FOR LOCAL SERVICE PRO-
VIDERS.—An assurance that public and private enti-
ties and community organizations, including reli-
gious organizations and Indian organizations, will be
eligible to participate on an equal basis.
‘‘(4) SUPPLEMENTATION ASSURANCE.—An as-
surance that Federal funds provided to the local gov-
ernment under this section will not be used to sup-
plant Federal or non-Federal funds for existing serv-
ices and activities that promote the purpose of this
section.
‘‘(5) BIENNIAL PROGRAM REPORT.—An agree-
ment that the local government will submit to the
Secretary, after the second year of funding of a pro-
gram under this section and every second year there-
after, a report containing the following:
‘‘(A) A description of the grant require-
ments used by the local government to award
grant funds.
‘‘(B) The measurable goals and outcomes
expected by the programs receiving assistance
under the local government program (and in
later reports, the extent to which such goals
and outcomes were achieved).
‘‘(C) A description of the services provided
by programs receiving assistance under the
local government program.
‘‘(D) The number of children and families
served.
‘‘(E) Such other such information as the
Secretary may require.
‘‘(6) RECORDS, REPORTS, AND
AUDITS.—An
agreement that the local government will maintain
such records, make such reports, and cooperate with
such reviews or audits as the Secretary may find
necessary for purposes of oversight of project activi-
ties and expenditures.
‘‘(7) EVALUATION.—An agreement that the
local government will cooperate fully with the Sec-
retary’s ongoing and final evaluation of the program
under the plan, by means including providing the
Secretary access to the program and program-re-
lated records and documents, staff, and grantees re-
ceiving funding under the plan.
‘‘(8) EXTENT
OF
LOCAL-STATE
COOPERA-
TION.—A statement as to whether, and the extent to
which, the State government has undertaken to pro-
vide support to and to cooperate with the local pro-
gram.
‘‘(e) FEDERAL SHARE.—
‘‘(1) IN
GENERAL.—A grant for a program
under this section shall be available to pay a per-
centage share of the costs of the program up to—
‘‘(A) 80 percent for the first fiscal year for
which the grant is awarded;
‘‘(B) 60 percent for the second such fiscal
year;
‘‘(C) 40 percent for the third such fiscal
year; and
‘‘(D) 20 percent for each succeeding fiscal
year.
‘‘(2) NON-FEDERAL SHARE.—The non-Federal
share of the cost of projects under this section may
be in cash or in kind. In determining the amount of
the non-Federal share, the Secretary may attribute
fair market value to goods, services, and facilities
contributed from non-Federal sources.
‘‘(f) CONSIDERATIONS IN AWARDING GRANTS.—In
awarding grants under this section, the Secretary shall
take into consideration—
‘‘(1) the experience, qualifications, and capacity
of local governments and networks of organizations
to effectively carry out a mentoring program under
this section;
‘‘(2) the comparative severity of need for men-
toring services in given local areas, taking into con-
sideration data on the numbers of children (and in
particular of low-income children) with an incarcer-
ated parents (or parents) in such areas;
‘‘(3) whether, and the extent to which, the
State government has undertaken to support and co-
operate with the local mentoring program;
‘‘(4) evidence of consultation with existing
youth and family service programs, as appropriate;
and
‘‘(5) any other factors the Secretary may deem
significant with respect to the need for or the poten-
tial success of carrying out a mentoring program
under this section.
‘‘(g) AUTHORIZATION
OF APPROPRIATIONS; RES-
ERVATION OF CERTAIN AMOUNTS.—
‘‘(1) AUTHORIZATION.—There are authorized to
be 
appropriated 
to 
carry 
out 
this 
section
$67,000,000 for fiscal year 2002, and such sums as
may be necessary for each of fiscal years 2003
through 2006.
‘‘(2) RESERVATION.—The Secretary shall re-
serve 2.5 percent of the amount appropriated for
each fiscal year under paragraph (1) for expenditure
by the Secretary for research, technical assistance,
and evaluation related to programs under this sec-
tion.
TITLE II—FOSTER CARE AND
INDEPENDENT LIVING
SEC. 201. ELIMINATION OF OPT-OUT PROVISION FOR STATE
REQUIREMENT 
TO 
CONDUCT 
CRIMINAL
BACKGROUND CHECK ON PROSPECTIVE FOS-
TER OR ADOPTIVE PARENTS.
Section 471(a)(20) is amended—
(1) by striking ‘‘(A) unless an election provided
for in subparagraph (B) is made with respect to the
State;’’;
(2) in subparagraph (A), by striking ‘‘and’’ at
the end;
(3) by striking subparagraph (B);
(4) by striking ‘‘(i)’’ and inserting ‘‘(A)’’; and
(5) by striking ‘‘(ii)’’ and inserting ‘‘(B)’’.
SEC. 202. EDUCATIONAL AND TRAINING VOUCHERS FOR
YOUTHS AGING OUT OF FOSTER CARE.
(a) PURPOSE.—Section 477(a) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(4);
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(6) to make available vouchers for education
and training, including postsecondary training and
education, to youths who have aged out of foster
care.
(b) EDUCATIONAL AND TRAINING VOUCHERS.—Sec-
tion 477 is amended by adding the following new sub-
section:
‘‘(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 shall be avail-
able 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 shall be considered to be youths otherwise eligible
for services under the State program under this sec-
tion.
‘‘(3) Youths participating in the voucher pro-
gram on the date they attain age 21 shall remain el-
igible until they attain 23 years of age, as long as
they are enrolled in a full-time postsecondary edu-
cation or training program and are making satisfac-
tory progress toward completion of that program.
‘‘(4) The voucher or vouchers provided for an
individual under this section—
‘‘(A) shall be available for the cost of at-
tendance at an institution of higher education,
as defined in section 102 of the Higher Edu-
cation Act of 1965; and
‘‘(B) shall not exceed the lesser of $5,000
per year or the total cost of attendance, as de-
fined in section 472 of that Act.
‘‘(5) The amount of a voucher under this sec-
tion shall be disregarded for purposes of determining
the recipient’s eligibility for, or the amount of, any
other Federal or Federally supported assistance, ex-
cept that the total amount of educational assistance
to a youth under this section and under other Fed-
eral and Federally supported programs shall not ex-
ceed the total cost of attendance, as defined in sec-
tion 472 of the Higher Education Act of 1965, and
except that the State agency shall take appropriate
steps to prevent duplication of benefits under this
and other Federal or Federally supported programs.
‘‘(6) The program is coordinated with other ap-
propriate education and training programs.’’.
(c) CERTIFICATION.—Section 477(b)(3) is amended
by adding at the end the following new subparagraph:
‘‘(J) A certification by the chief executive
officer of the State that the State educational
and training voucher program under this sec-
tion is in compliance with the conditions speci-
fied in subsection (i), including a statement de-
scribing methods the State will use—
‘‘(i) to ensure that the total amount
of educational assistance to a youth under
this section and under other Federal and
Federally supported programs does not ex-
ceed the limitation specified in subsection
(i)(5); and
‘‘(ii) to avoid duplication of benefits
under this and any other Federal or Fed-
erally assisted benefit program.’’.
(d) INCREASED AUTHORIZATIONS
OF APPROPRIA-
TIONS.—Section 477(h) is amended by striking ‘‘there are
authorized’’ and all that follows and inserting the fol-
lowing: ‘‘there are authorized to be appropriated to the
Secretary for each fiscal year—
‘‘(1) $140,000,000, which shall be available for
all purposes under this section; and
application approved under subsection (b) for the
fiscal year the amount that bears the ratio to such
amount equal to the State foster care ratio.
‘‘(4) STATE
FOSTER
CARE
RATIO.—For pur-
poses of this subsection, the term ‘State foster care
ratio’ means the ratio of the number of children in
foster care under a program of the State in the most
recent fiscal year for which such information is
available to the total number of children in foster
care in all States for such most recent fiscal year.’’.
(f) PAYMENTS
TO STATES.—Section 474(a)(4) is
amended to read as follows:
‘‘(4) an amount equal to—
‘‘(A) the sum of the following amounts for
expenditures in accordance with the State appli-
cation approved under section 477(b) (including
any amounts expended in accordance with an
amendment that meets the requirements of sec-
tion 477(b)(5)):
‘‘(i) the lesser of—
‘‘(I) 80 percent of the amounts
expended by the State during the
quarter to carry out programs for the
purposes 
described 
in 
subsection
(h)(1); or
‘‘(II) the amount allotted to the
State under section 477(c)(1) for the
fiscal year in which the quarter oc-
curs, reduced by the total of the
amounts payable to the State under
this paragraph for such purposes for
all prior quarters in the fiscal year;
plus
‘‘(ii) the lesser of—
‘‘(I) 80 percent of the amounts
expended by the State during the
quarter to carry out programs for the
purposes 
described 
in 
subsection
(h)(2); or
‘‘(II) the amount allotted to the
State under section 477(c)(3) for the
fiscal year in which the quarter oc-
curs, reduced by the total of the
amounts payable to the State under
this paragraph for such purposes for
all prior quarters in the fiscal year;
reduced by
‘‘(B) the total amount of any penalties as-
sessed against the State under section 477(e)
for such fiscal year.’’.
TITLE III—EFFECTIVE DATES
SEC. 301. EFFECTIVE DATES.
(a) IN GENERAL.—Subject to subsection (b)—
(1) except as provided in paragraph (2), the
amendments made by this Act take effect October 1,
2001; and
(2) the amendments made by section 201 take
effect on the date of enactment of this Act.
(b) DELAY PERMITTED IF STATE LEGISLATION RE-
QUIRED.—In the case of a State plan under part B or
E of the Social Security Act that 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
the amendments specified in subsection (a), the State plan
shall not be regarded as failing to comply with the require-
ments of such part solely on the basis of the failure of
the plan to meet such additional requirements before the
first day of the first calendar quarter beginning after the
close of the first regular session of the State legislature
that begins after the date of enactment of this Act. For
purposes of the previous sentence, in the case of a State
that has a 2-year legislative session, each year of such ses-
sion shall be deemed to be a separate regular session of
the State legislature.
Æ