H. R. 2491—847
‘‘(b) DETERMINATIONS.—The Secretary shall determine whether
a plan submitted pursuant to subsection (a) contains the material
required by subsection (a), other than the material described in
paragraph (10) of such subsection. The Secretary may not require
a State to include in such a plan any material not described in
subsection (a).
‘‘SEC. 431. GRANTS TO STATES FOR CHILD PROTECTION AND PAY-
MENTS FOR FOSTER CARE AND ADOPTION ASSISTANCE.
‘‘(a) FUNDING
OF BLOCK GRANTS.—Each eligible State shall
be entitled to receive from the Secretary for each fiscal year specified
in subsection (c)(1) a grant in an amount equal to the State share
of the child protection amount for the fiscal year.
‘‘(b) MAINTENANCE PAYMENTS.—
‘‘(1) IN GENERAL.—In addition to the grants described in
subsection (a), each eligible State shall be entitled to receive
from the Secretary for each quarter of each fiscal year specified
in subsection (c)(1) an amount equal to the sum of—
‘‘(A) an amount equal to the Federal medical assistance
percentage (as defined in section 1905(b) of this Act as
in effect on the day before the date of enactment of this
subpart) of the total amount expended during such quarter
as foster care maintenance payments under the child
protection program under this subpart for children in foster
family homes or child-care institutions; plus
‘‘(B) an amount equal to the Federal medical assistance
percentage (as defined in section 1905(b) of this Act (as
so in effect)) of the total amount expended during such
quarter as adoption assistance payments under the child
protection program under this subpart pursuant to adop-
tion assistance agreements.
‘‘(2) ESTIMATES BY THE SECRETARY.—
‘‘(A) IN GENERAL.—The Secretary shall, prior to the
beginning of each quarter, estimate the amount to which
a State will be entitled to receive under paragraph (1)
for such quarter, such estimates to be based on—
‘‘(i) a report filed by the State containing its esti-
mate of the total sum to be expended in such quarter
in accordance with paragraph (1), and stating the
amount appropriated or made available by the State
and its political subdivisions for such expenditures in
such quarter, and if such amount is less than the
State’s proportionate share of the total sum of such
estimated expenditures, the source or sources from
which the difference is expected to be derived;
‘‘(ii) records showing the number of children in
the State receiving assistance under this subpart; and
‘‘(iii) such other information as the Secretary may
find necessary.
‘‘(B) PAYMENTS.—The Secretary shall pay to the States
the amounts so estimated under subparagraph (A), reduced
or increased to the extent of any overpayment or
underpayment which the Secretary determines was made
under this subsection to such State for any prior quarter
and with respect to which adjustment has not already
been made under this paragraph.
H. R. 2491—848
‘‘(C) PRO RATA SHARE.—The pro rata share to which
the United States is equitably entitled, as determined by
the Secretary, of the net amount recovered during any
quarter by the State or any political subdivision thereof
with respect to foster care and adoption assistance fur-
nished under this subpart shall be considered an overpay-
ment to be adjusted under this paragraph.
‘‘(3) ALLOWANCE OR DISALLOWANCE OF CLAIM.—
‘‘(A) IN GENERAL.—Within 60 days after receipt of a
State claim for expenditures pursuant to paragraph (2)(A),
the Secretary shall allow, disallow, or defer such claim.
‘‘(B) NOTICE.—Within 15 days after a decision to defer
a State claim, the Secretary shall notify the State of the
reasons for the deferral and of the additional information
necessary to determine the allowability of the claim.
‘‘(C) DECISION.—Within 90 days after receiving such
necessary information (in readily reviewable form), the Sec-
retary shall—
‘‘(i) disallow the claim, if able to complete the
review and determine that the claim is not allowable;
or
‘‘(ii) in any other case, allow the claim, subject
to disallowance (as necessary)—
‘‘(I) upon completion of the review, if it is
determined that the claim is not allowable; or
‘‘(II) on the basis of findings of an audit or
financial management review.
‘‘(c) DEFINITIONS.—As used in this section:
‘‘(1) CHILD PROTECTION AMOUNT.—The term ‘child protec-
tion amount’ means—
‘‘(A) $1,936,000,000 for fiscal year 1996;
‘‘(B) $1,942,000,000 for fiscal year 1997;
‘‘(C) $2,063,000,000 for fiscal year 1998;
‘‘(D) $2,167,000,000 for fiscal year 1999;
‘‘(E) $2,297,000,000 for fiscal year 2000;
‘‘(F) $2,432,000,000 for fiscal year 2001; and
‘‘(G) $2,593,000,000 for fiscal year 2002.
‘‘(2) STATE SHARE.—
‘‘(A) IN GENERAL.—The term ‘State share’ means the
qualified child protection expenses of the State divided
by the sum of the qualified child protection expenses of
all of the States.
‘‘(B) QUALIFIED
CHILD
PROTECTION
EXPENSES.—The
term ‘qualified child protection expenses’ means, with
respect to a State the greater of—
‘‘(i) the total amount of—
‘‘(I) 1⁄3 of the total obligations to the State
under the provisions of law specified in clauses
(i), (ii), and (iii) of subparagraph (C) for fiscal
years 1992, 1993, and 1994; and
‘‘(II) 1⁄3 of the total claims submitted by the
State (without regard to disputed claims) under
the provision of law specified in subparagraph
(C)(iv) for fiscal years 1992, 1993, and 1994; or
‘‘(ii) the total amount of—
‘‘(I) the total obligations to the State under
the provisions of law specified in clauses (i), (ii),
H. R. 2491—849
and (iii) of subparagraph (C) for fiscal year 1995;
and
‘‘(II) the total claims submitted by the State
(without regard to disputed claims) under the
provision of law specified in subparagraph (C)(iv)
for fiscal year 1995.
‘‘(C) PROVISIONS OF LAW.—The provisions of law speci-
fied in this subparagraph are the following (as in effect
on the day before the date of enactment of this subpart):
‘‘(i) Section 434 of this Act.
‘‘(ii) Section 474(a)(4) of this Act.
‘‘(iii) Section 474(a)(3) of this Act.
‘‘(d) USE OF GRANT.—
‘‘(1) IN GENERAL.—A State to which a grant is made under
this section may use the grant in any manner that the State
deems appropriate to accomplish the child protection goals of
the State program funded under this subpart.
‘‘(2) TIMING OF EXPENDITURES.—A State to which a grant
is made under this section for a fiscal year shall expend the
total amount of the grant not later than the end of the imme-
diately succeeding fiscal year.
‘‘(3) RULE OF INTERPRETATION.—This subpart shall not be
interpreted to prohibit short- and long-term foster care facilities
operated for profit from receiving funds provided under this
subpart.
‘‘(e) TIMING
OF PAYMENTS.—The Secretary shall pay each
eligible State the amount of the grant payable to the State under
this section in quarterly installments.
‘‘(f) PENALTIES.—
‘‘(1) FOR USE OF GRANT IN VIOLATION OF THIS SUBPART.—
If an audit conducted pursuant to chapter 75 of title 31, United
States Code, finds that an amount paid to a State under this
section for a fiscal year has been used in violation of this
subpart, then the Secretary shall reduce the amount of the
grant that would (in the absence of this paragraph) be payable
to the State under this section for the immediately succeeding
fiscal year by the amount so used, plus 5 percent of the grant
paid under this section to the State for such fiscal year.
‘‘(2) FOR FAILURE TO MAINTAIN EFFORT.—
‘‘(A) IN GENERAL.—If an audit conducted pursuant to
chapter 75 of title 31, United States Code, finds that the
amount expended by a State (other than from amounts
provided by the Federal Government) during the fiscal
years specified in subparagraph (B), to carry out the State
program funded under this subpart is less than the
applicable percentage specified in such subparagraph of
the total amount expended by the State (other than from
amounts provided by the Federal Government) during fiscal
year 1995 under subpart 2 of part B and part E of this
title (as in effect on the day before the date of the enact-
ment of this subpart), then the Secretary shall reduce
the amount of the grant that would (in the absence of
this paragraph) be payable to the State under this section
for the immediately succeeding fiscal year by the amount
of the difference, plus 5 percent of the grant paid under
this section to the State for such fiscal year.
H. R. 2491—850
‘‘(B) SPECIFICATION OF FISCAL YEARS AND APPLICABLE
PERCENTAGES.—The fiscal years and applicable percentages
specified in this subparagraph are as follows:
‘‘(i) For fiscal years 1996 and 1997, 100 percent.
‘‘(ii) For fiscal years 1998 through 2002, 75 percent.
‘‘(3) FOR FAILURE TO SUBMIT REQUIRED REPORT.—
‘‘(A) IN GENERAL.—The Secretary shall reduce by 3
percent the amount of the grant that would (in the absence
of this paragraph) be payable to a State under this section
for a fiscal year if the Secretary determines that the State
has not submitted the report required by section 436(b)
for the immediately preceding fiscal year, within 6 months
after the end of the immediately preceding fiscal year.
‘‘(B) RESCISSION
OF
PENALTY.—The Secretary shall
rescind a penalty imposed on a State under subparagraph
(A) with respect to a report for a fiscal year if the State
submits the report before the end of the immediately
succeeding fiscal year.
‘‘(4) FOR
FAILURE
TO
COMPLY
WITH
SAMPLING
METHODS
REQUIREMENTS.—The Secretary may reduce by not more than
1 percent the amount of the grant that would (in the absence
of this paragraph) be payable to a State under this section
for a succeeding fiscal year if the Secretary determines that
the State has not complied with the Secretary’s sampling meth-
ods requirements under section 436(c)(2) during the prior fiscal
year.
‘‘(5) STATE
FUNDS
TO
REPLACE
REDUCTIONS
IN
GRANT.—
A State which has a penalty imposed against it under this
subsection for a fiscal year shall expend additional State funds
in an amount equal to the amount of the penalty for the
purpose of carrying out the State program under this subpart
during the immediately succeeding fiscal year.
‘‘(6) REASONABLE CAUSE EXCEPTION.—The Secretary may
not impose a penalty on a State under this subsection with
respect to a requirement if the Secretary determines that the
State has reasonable cause for failing to comply with the
requirement.
‘‘(7) CORRECTIVE COMPLIANCE PLAN.—
‘‘(A) IN GENERAL.—
‘‘(i) NOTIFICATION OF VIOLATION.—Notwithstanding
any other provision of law, the Federal Government
shall, before assessing a penalty against a State under
this subsection, notify the State of the violation of
law for which the penalty would be assessed and allow
the State the opportunity to enter into a corrective
compliance plan in accordance with this subsection
which outlines how the State will correct any such
violations and how the State will insure continuing
compliance with the requirements of this subpart.
‘‘(ii) 60-DAY
PERIOD
TO
PROPOSE
A
CORRECTIVE
COMPLIANCE PLAN.—Any State notified under clause
(i) shall have 60 days in which to submit to the Federal
Government a corrective compliance plan to correct
any violations described in clause (i).
‘‘(iii) ACCEPTANCE OF PLAN.—The Federal Govern-
ment shall have 60 days to accept or reject the State’s
corrective compliance plan and may consult with the
H. R. 2491—851
State during this period to modify the plan. If the
Federal Government does not accept or reject the
corrective compliance plan during the period, the
corrective compliance plan shall be deemed to be
accepted.
‘‘(B) FAILURE TO CORRECT.—If a corrective compliance
plan is accepted by the Federal Government, no penalty
shall be imposed with respect to a violation described in
this subsection if the State corrects the violation pursuant
to the plan. If a State has not corrected the violation
in a timely manner under the plan, some or all of the
penalty shall be assessed.
‘‘(8) LIMITATION ON AMOUNT OF PENALTY.—
‘‘(A) IN GENERAL.—In imposing the penalties described
in this subsection, the Secretary shall not reduce any quar-
terly payment to a State by more than 25 percent.
‘‘(B) CARRYFORWARD OF UNRECOVERED PENALTIES.—To
the extent that subparagraph (A) prevents the Secretary
from recovering during a fiscal year the full amount of
all penalties imposed on a State under this subsection
for a prior fiscal year, the Secretary shall apply any remain-
ing amount of such penalties to the grant payable to the
State under section 431(a) for the immediately succeeding
fiscal year.
‘‘(g) TREATMENT OF TERRITORIES.—
‘‘(1) IN
GENERAL.—A territory, as defined in section
1108(b)(1), shall carry out a child protection program in accord-
ance with the provisions of this subpart.
‘‘(2) PAYMENTS.—Each territory, as so defined, shall be
entitled to receive from the Secretary for any fiscal year an
amount, in accordance with section 1108, which shall be used
for the purpose of carrying out a child protection program
in accordance with the provisions of this subpart.
‘‘(h) LIMITATION ON FEDERAL AUTHORITY.—Except as expressly
provided in this Act, the Secretary may not regulate the conduct
of States under this subpart or enforce any provision of this subpart.
‘‘SEC. 432. REQUIREMENTS FOR FOSTER CARE MAINTENANCE PAY-
MENTS.
‘‘(a) IN GENERAL.—Each State operating a program under this
subpart shall make foster care maintenance payments under section
431(b) with respect to a child who would meet the requirements
of section 406(a) or of section 407 (as in effect on the day before
the date of the enactment of this subpart) but for the removal
of the child from the home of a relative (specified in section 406
(a) (as so in effect)), if—
‘‘(1) the removal from the home occurred pursuant to a
voluntary placement agreement entered into by the child’s par-
ent or legal guardian, or was the result of a judicial determina-
tion to the effect that continuation therein would be contrary
to the welfare of such child and that reasonable efforts of
the type described in section 430(a)(13) have been made;
‘‘(2) such child’s placement and care are the responsibility
of—
‘‘(A) the State; or
H. R. 2491—852
‘‘(B) any other public agency with whom the State
has made an agreement for the administration of the State
program under this subpart which is still in effect;
‘‘(3) such child has been placed in a foster family home
or child-care institution as a result of the voluntary placement
agreement or judicial determination referred to in paragraph
(1); and
‘‘(4) such child—
‘‘(A) would have been eligible to receive aid under
the eligibility standards under the State plan approved
under section 402 (as in effect on the day before the date
of the enactment of this subpart and adjusted for inflation,
in accordance with regulations issued by the Secretary)
in or for the month in which such agreement was entered
into or court proceedings leading to the removal of such
child from the home were initiated; or
‘‘(B) would have received such aid in or for such month
if application had been made therefore, or the child had
been living with a relative specified in section 406(a) (as
so in effect) within 6 months prior to the month in which
such agreement was entered into or such proceedings were
initiated, and would have received such aid in or for such
month if in such month such child had been living with
such a relative and application therefore had been made.
‘‘(b) LIMITATION
ON FOSTER CARE PAYMENTS.—Foster care
maintenance payments may be made under this subpart only on
behalf of a child described in subsection (a) of this section who
is—
‘‘(1) in the foster family home of an individual, whether
the payments therefore are made to such individual or to a
public or private child-placement or child-care agency; or
‘‘(2) in a child-care institution, whether the payments there-
fore are made to such institution or to a public or private
child-placement or child-care agency, which payments shall
be limited so as to include in such payments only those items
which are included in the term ‘foster care maintenance pay-
ments’ (as defined in section 437(6)).
‘‘(c) VOLUNTARY PLACEMENTS.—
‘‘(1) SATISFACTION OF CHILD PROTECTION STANDARDS.—Not-
withstanding any other provision of this section, Federal pay-
ments may be made under this subpart with respect to amounts
expended by any State as foster care maintenance payments
under this subpart, in the case of children removed from their
homes pursuant to voluntary placement agreements as
described in subsection (a), only if (at the time such amounts
were expended) the State has fulfilled all of the requirements
of section 435(b) or 430(a)(12).
‘‘(2) REMOVAL IN EXCESS OF 180 DAYS.—No Federal payment
may be made under this subpart with respect to amounts
expended by any State as foster care maintenance payments,
in the case of any child who was removed from such child’s
home pursuant to a voluntary placement agreement as
described in subsection (a) and has remained in voluntary
placement for a period in excess of 180 days, unless there
has been a judicial determination by a court of competent
jurisdiction (within the first 180 days of such placement) to
H. R. 2491—853
the effect that such placement is in the best interests of the
child.
‘‘(3) DEEMED REVOCATION OF AGREEMENTS.—In any case
where—
‘‘(A) the placement of a minor child in foster care
occurred pursuant to a voluntary placement agreement
entered into by the parents or guardians of such child
as provided in subsection (a); and
‘‘(B) such parents or guardians request (in such manner
and form as the Secretary may prescribe) that the child
be returned to their home or to the home of a relative,
the voluntary placement agreement shall be deemed to be
revoked unless the State opposes such request and obtains
a judicial determination, by a court of competent jurisdiction,
that the return of the child to such home would be contrary
to the child’s best interests.
‘‘SEC. 433. REQUIREMENTS FOR ADOPTION ASSISTANCE PAYMENTS.
‘‘(a) IN GENERAL.—A State operating a program under this
subpart shall enter into adoption assistance agreements with the
adoptive parents of children with special needs.
‘‘(b) PAYMENTS
UNDER
AGREEMENTS.—Under any adoption
assistance agreement entered into by a State with parents who
adopt a child with special needs who meets the requirements of
subsection (c), the State may make adoption assistance payments
to such parents or through another public or nonprofit private
agency, in amounts determined under subsection (d).
‘‘(c) CHILDREN WITH SPECIAL NEEDS.—For purposes of sub-
section (b), a child meets the requirements of this subsection if
such child—
‘‘(1)(A) at the time adoption proceedings were initiated,
met the requirements of section 406(a) or section 407 (as in
effect on the day before the date of the enactment of this
subpart) or would have met such requirements except for such
child’s removal from the home of a relative (specified in section
406(a) (as so in effect)), either pursuant to a voluntary place-
ment agreement with respect to which Federal payments are
provided under section 431(b) (or 403 (as so in effect)) or as
a result of a judicial determination to the effect that continu-
ation therein would be contrary to the welfare of such child;
‘‘(B) meets all of the requirements of title XVI with respect
to eligibility for supplemental security income benefits; or
‘‘(C) 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 his or her minor parent;
‘‘(2)(A) would have received aid under the eligibility stand-
ards under the State plan approved under section 402 (as
in effect on the day before the date of the enactment of this
subpart, adjusted for inflation, in accordance with regulations
issued by the Secretary) in or for the month in which such
agreement was entered into or court proceedings leading to
the removal of such child from the home were initiated;
‘‘(B) would have received such aid in or for such month
if application had been made therefore, or had been living
with a relative specified in section 406(a) (as so in effect)
within 6 months prior to the month in which such agreement
was entered into or such proceedings were initiated, and would
H. R. 2491—854
have received such aid in or for such month if in such month
such child had been living with such a relative and application
therefore had been made; or
‘‘(C) is a child described in subparagraph (A) or (B); and
‘‘(3) has been determined by the State, pursuant to sub-
section (g) of this section, to be a child with special needs.
‘‘(d) DETERMINATION OF PAYMENTS.—The amount of the pay-
ments to be made in any case under subsection (b) shall be deter-
mined through agreement between the adoptive parents and the
State or a public or nonprofit private agency administering the
program under this subpart, 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 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.
‘‘(e) PAYMENT EXCEPTION.—Notwithstanding subsection (d), no
payment may be made to parents with respect to any child who
has attained the age of 18 (or, where the State determines that
the child has a mental or physical disability which warrants the
continuation of assistance, the age of 21), and 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 subpart shall
keep the State or public or nonprofit private agency administering
the program under this subpart informed of circumstances which
would, pursuant to this section, make them ineligible for such
assistance payments, or eligible for assistance payments in a dif-
ferent amount.
‘‘(f) PRE-ADOPTION PAYMENTS.—For purposes of this subpart,
individuals with whom a child who has been determined by the
State, pursuant to subsection (g), to be a child with special needs
is placed for adoption in accordance with applicable State and
local law shall be eligible for adoption assistance payments during
the period of the placement, on the same terms and subject to
the same conditions as if such individuals had adopted such child.
‘‘(g) DETERMINATION OF CHILD WITH SPECIAL NEEDS.—For pur-
poses 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 the child’s parents;
and
‘‘(2) the State had first determined—
‘‘(A) that there exists with respect to the child a specific
factor or condition such as the child’s ethnic background,
age, or membership in a minority or sibling group, or
the presence of factors such as medical conditions or phys-
ical, mental, or emotional handicaps because of which it
is reasonable to conclude that such child cannot be placed
with adoptive parents without providing adoption assist-
H. R. 2491—855
ance under this subpart or medical assistance under title
XIX or XXI; and
‘‘(B) that, except where it would be against the best
interests of the child because of such factors as the exist-
ence 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 or XXI.
‘‘SEC. 434. CITIZEN REVIEW PANELS.
‘‘(a) ESTABLISHMENT.—Each State to which a grant is made
under section 431(a) shall establish at least 3 citizen review panels.
‘‘(b) COMPOSITION.—Each panel established under subsection
(a) shall be broadly representative of the community from which
drawn.
‘‘(c) FREQUENCY OF MEETINGS.—Each panel established under
subsection (a) shall meet not less frequently than quarterly.
‘‘(d) DUTIES.—
‘‘(1) IN GENERAL.—Each panel established under subsection
(a) shall, by examining specific cases, determine the extent
to which the State and local agencies responsible for carrying
out activities under this subpart are doing so in accordance
with the State plan, with the child protection standards set
forth in section 430(a)(12) and 435, and with any other criteria
that the panel considers important to ensure the protection
of children.
‘‘(2) CONFIDENTIALITY.—The members and staff of any
panel established under subsection (a) shall not disclose to
any person or government any information about any specific
child protection case with respect to which the panel is provided
information.
‘‘(e) STATE ASSISTANCE.—Each State that establishes a panel
under subsection (a) shall afford the panel access to any information
on any case that the panel desires to review, and shall provide
the panel with staff assistance in performing its duties.
‘‘(f) REPORTS.—Each panel established under subsection (a)
shall make a public report of its activities after each meeting.
‘‘SEC. 435. FOSTER CARE PROTECTION REQUIRED FOR ADDITIONAL
FEDERAL PAYMENTS.
‘‘(a) REDUCTION OF GRANT.—A State shall not receive a grant
under section 431(a) unless such State—
‘‘(1) has conducted an inventory of all children who have
been in foster care under the responsibility of the State for
a period of 6 months preceding the inventory, and determined
the appropriateness of, and necessity for, the current foster
placement, whether the child can be or should be returned
to his parents or should be freed for adoption, and the services
necessary to facilitate either the return of the child or the
placement of the child for adoption or legal guardianship; and
‘‘(2) has implemented and is operating to the satisfaction
of the Secretary—
‘‘(A) a statewide information system from which the
status, demographic characteristics, location, and goals for
the placement of every child in foster care or who has