[DOCID: f:publ169.106]

[[Page 1821]]

FOSTER CARE INDEPENDENCE ACT OF 1999

[[Page 113 STAT. 1822]]

Public Law 106-169

106th Congress

An Act

To amend part E of title IV of the Social Security Act to provide States

with more funding and greater flexibility in carrying out programs

designed to help children make the transition from foster care to self-

sufficiency, and for other purposes. <<NOTE: Dec. 14, 1999 - [H.R.

3443]>>

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress <<NOTE: Foster Care Independence

Act of 1999.>> assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short <<NOTE: 42 USC 1305 note.>> Title.--This Act may be cited

as the ``Foster Care Independence Act of 1999''.

(b) Table of Contents.--The table of contents of this Act is as

follows:

Sec. 1. Short title; table of contents.

TITLE I--IMPROVED INDEPENDENT LIVING PROGRAM

Subtitle A--Improved Independent Living Program

Sec. 101. Improved independent living program.

Subtitle B--Related Foster Care Provision

Sec. 111. Increase in amount of assets allowable for children in foster

care.

Sec. 112. Preparation of foster parents to provide for the needs of

children in State care.

Subtitle C--Medicaid Amendments

Sec. 121. State option of Medicaid coverage for adolescents leaving

foster care.

Subtitle D--Adoption Incentive Payments

Sec. 131. Increased funding for adoption incentive payments.

TITLE II--SSI FRAUD PREVENTION

Subtitle A--Fraud Prevention and Related Provisions

Sec. 201. Liability of representative payees for overpayments to

deceased recipients.

Sec. 202. Recovery of overpayments of SSI benefits from lump sum SSI

benefit payments.

Sec. 203. Additional debt collection practices.

Sec. 204. Requirement to provide State prisoner information to Federal

and federally assisted benefit programs.

Sec. 205. Treatment of assets held in trust under the SSI program.

Sec. 206. Disposal of resources for less than fair market value under

the SSI program.

Sec. 207. Administrative procedure for imposing penalties for false or

misleading statements.

Sec. 208. Exclusion of representatives and health care providers

convicted of violations from participation in social security

programs.

Sec. 209. State data exchanges.

Sec. 210. Study on possible measures to improve fraud prevention and

administrative processing.

Sec. 211. Annual report on amounts necessary to combat fraud.

[[Page 113 STAT. 1823]]

Sec. 212. Computer matches with Medicare and Medicaid

institutionalization data.

Sec. 213. Access to information held by financial institutions.

Subtitle B--Benefits For Certain World War II Veterans

Sec. 251. Establishment of program of special benefits for certain World

War II veterans.

Subtitle C--Study

Sec. 261. Study of denial of SSI benefits for family farmers.

TITLE III--CHILD SUPPORT

Sec. 301. Narrowing of hold-harmless provision for State share of

distribution of collected child support.

TITLE IV--TECHNICAL CORRECTIONS

Sec. 401. Technical corrections relating to amendments made by the

Personal Responsibility and Work Opportunity Reconciliation

Act of 1996.

TITLE I--IMPROVED INDEPENDENT LIVING PROGRAM

Subtitle A--Improved Independent Living Program

SEC. 101. <<NOTE: 42 USC 677 note.>> IMPROVED INDEPENDENT LIVING

PROGRAM.

(a) Findings.--The Congress finds the following:

(1) States are required to make reasonable efforts to find

adoptive families for all children, including older children,

for whom reunification with their biological family is not in

the best interests of the child. However, some older children

will continue to live in foster care. These children should be

enrolled in an Independent Living program designed and conducted

by State and local government to help prepare them for

employment, postsecondary education, and successful management

of adult responsibilities.

(2) Older children who continue to be in foster care as

adolescents may become eligible for Independent Living programs.

These Independent Living programs are not an alternative to

adoption for these children. Enrollment in Independent Living

programs can occur concurrent with continued efforts to locate

and achieve placement in adoptive families for older children in

foster care.

(3) About 20,000 adolescents leave the Nation's foster care

system each year because they have reached 18 years of age and

are expected to support themselves.

(4) Congress has received extensive information that

adolescents leaving foster care have significant difficulty

making a successful transition to adulthood; this information

shows that children aging out of foster care show high rates of

homelessness, non-marital childbearing, poverty, and delinquent

or criminal behavior; they are also frequently the target of

crime and physical assaults.

(5) The Nation's State and local governments, with financial

support from the Federal Government, should offer an extensive

program of education, training, employment, and financial

support for young adults leaving foster care, with participation

in such program beginning several years before high school

[[Page 113 STAT. 1824]]

graduation and continuing, as needed, until the young adults

emancipated from foster care establish independence or reach 21

years of age.

(b) Improved Independent Living Program.--Section 477 of the Social

Security Act (42 U.S.C. 677) is amended to read as follows:

``SEC. 477. JOHN H. CHAFEE FOSTER CARE INDEPENDENCE PROGRAM.

``(a) Purpose.--The purpose of this section is to provide States

with flexible funding that will enable programs to be designed and

conducted--

``(1) to identify children who are likely to remain in

foster care until 18 years of age and to help these children

make the transition to self-sufficiency by providing services

such as assistance in obtaining a high school diploma, career

exploration, vocational training, job placement and retention,

training in daily living skills, training in budgeting and

financial management skills, substance abuse prevention, and

preventive health activities (including smoking avoidance,

nutrition education, and pregnancy prevention);

``(2) to help children who are likely to remain in foster

care until 18 years of age receive the education, training, and

services necessary to obtain employment;

``(3) to help children who are likely to remain in foster

care until 18 years of age prepare for and enter postsecondary

training and education institutions;

``(4) to provide personal and emotional support to children

aging out of foster care, through mentors and the promotion of

interactions with dedicated adults; and

``(5) to provide financial, housing, counseling, employment,

education, and other appropriate support and services to former

foster care recipients between 18 and 21 years of age to

complement their own efforts to achieve self-sufficiency and to

assure that program participants recognize and accept their

personal responsibility for preparing for and then making the

transition from adolescence to adulthood.

``(b) Applications.--

``(1) In general.--A State may apply for funds from its

allotment under subsection (c) for a period of five consecutive

fiscal years by submitting to the Secretary, in writing, a plan

that meets the requirements of paragraph (2) and the

certifications required by paragraph (3) with respect to the

plan.

``(2) State plan.--A plan meets the requirements of this

paragraph if the plan specifies which State agency or agencies

will administer, supervise, or oversee the programs carried out

under the plan, and describes how the State intends to do the

following:

``(A) Design and deliver programs to achieve the

purposes of this section.

``(B) Ensure that all political subdivisions in the

State are served by the program, though not necessarily

in a uniform manner.

``(C) Ensure that the programs serve children of

various ages and at various stages of achieving

independence.

``(D) Involve the public and private sectors in

helping adolescents in foster care achieve independence.

[[Page 113 STAT. 1825]]

``(E) Use objective criteria for determining

eligibility for benefits and services under the

programs, and for ensuring fair and equitable treatment

of benefit recipients.

``(F) Cooperate in national evaluations of the

effects of the programs in achieving the purposes of

this section.

``(3) Certifications.--The certifications required by this

paragraph with respect to a plan are the following:

``(A) A certification by the chief executive officer

of the State that the State will provide assistance and

services to children who have left foster care because

they have attained 18 years of age, and who have not

attained 21 years of age.

``(B) A certification by the chief executive officer

of the State that not more than 30 percent of the

amounts paid to the State from its allotment under

subsection (c) for a fiscal year will be expended for

room or board for children who have left foster care

because they have attained 18 years of age, and who have

not attained 21 years of age.

``(C) A certification by the chief executive officer

of the State that none of the amounts paid to the State

from its allotment under subsection (c) will be expended

for room or board for any child who has not attained 18

years of age.

``(D) A certification by the chief executive officer

of the State that the State will use training funds

provided under the program of Federal payments for

foster care and adoption assistance to provide training

to help foster parents, adoptive parents, workers in

group homes, and case managers understand and address

the issues confronting adolescents preparing for

independent living, and will, to the extent possible,

coordinate such training with the independent living

program conducted for adolescents.

``(E) A certification by the chief executive officer

of the State that the State has consulted widely with

public and private organizations in developing the plan

and that the State has given all interested members of

the public at least 30 days to submit comments on the

plan.

``(F) A certification by the chief executive officer

of the State that the State will make every effort to

coordinate the State programs receiving funds provided

from an allotment made to the State under subsection (c)

with other Federal and State programs for youth

(especially transitional living youth projects funded

under part B of title III of the Juvenile Justice and

Delinquency Prevention Act of 1974), abstinence

education programs, local housing programs, programs for

disabled youth (especially sheltered workshops), and

school-to-work programs offered by high schools or local

workforce agencies.

``(G) A certification by the chief executive officer

of the State that each Indian tribe in the State has

been consulted about the programs to be carried out

under the plan; that there have been efforts to

coordinate the programs with such tribes; and that

benefits and services under the programs will be made

available to Indian children in the State on the same

basis as to other children in the State.

[[Page 113 STAT. 1826]]

``(H) A certification by the chief executive officer

of the State that the State will ensure that adolescents

participating in the program under this section

participate directly in designing their own program

activities that prepare them for independent living and

that the adolescents accept personal responsibility for

living up to their part of the program.

``(I) A certification by the chief executive officer

of the State that the State has established and will

enforce standards and procedures to prevent fraud and

abuse in the programs carried out under the plan.

``(4) Approval.--The Secretary shall approve an application

submitted by a State pursuant to paragraph (1) for a period if--

``(A) the application is submitted on or before June

30 of the calendar year in which such period begins; and

``(B) the Secretary finds that the application

contains the material required by paragraph (1).

``(5) Authority to implement certain amendments;

notification.--A State with an application approved under

paragraph (4) may implement any amendment to the plan contained

in the application if the application, incorporating the

amendment, would be approvable under paragraph (4).

Within <<NOTE: Deadline.>> 30 days after a State implements any

such amendment, the State shall notify the Secretary of the

amendment.

``(6) Availability.--The State shall make available to the

public any application submitted by the State pursuant to

paragraph (1), and a brief summary of the plan contained in the

application.

``(c) Allotments to States.--

``(1) In general.--From the amount specified in subsection

(h) that remains after applying subsection (g)(2) for a fiscal

year, the Secretary shall allot to each State with an

application approved under subsection (b) for the fiscal year

the amount which bears the same ratio to such remaining amount

as 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 bears to the total number of children in foster

care in all States for such most recent fiscal year, as adjusted

in accordance with paragraph (2).

``(2) Hold harmless provision.--

``(A) In general.--The Secretary shall allot to each

State whose allotment for a fiscal year under paragraph

(1) is less than the greater of $500,000 or the amount

payable to the State under this section for fiscal year

1998, an additional amount equal to the difference

between such allotment and such greater amount.

``(B) Ratable reduction of certain allotments.--In

the case of a State not described in subparagraph (A) of

this paragraph for a fiscal year, the Secretary shall

reduce the amount allotted to the State for the fiscal

year under paragraph (1) by the amount that bears the

same ratio to the sum of the differences determined

under subparagraph (A) of this paragraph for the fiscal

year as the excess of the amount so allotted over the

greater of $500,000 or the amount payable to the State

under

[[Page 113 STAT. 1827]]

this section for fiscal year 1998 bears to the sum of

such excess amounts determined for all such States.

``(d) Use of Funds.--

``(1) In general.--A State to which an amount is paid from

its allotment under subsection (c) may use the amount in any

manner that is reasonably calculated to accomplish the purposes

of this section.

``(2) No supplantation of other funds available for same

general purposes.--The amounts paid to a State from its

allotment under subsection (c) shall be used to supplement and

not supplant any other funds which are available for the same

general purposes in the State.

``(3) Two-year availability of funds.--Payments made to a

State under this section for a fiscal year shall be expended by

the State in the fiscal year or in the succeeding fiscal year.

``(e) Penalties.--

``(1) Use of grant in violation of this part.--If the

Secretary is made aware, by an audit conducted under chapter 75

of title 31, United States Code, or by any other means, that a

program receiving funds from an allotment made to a State under

subsection (c) has been operated in a manner that is

inconsistent with, or not disclosed in the State application

approved under subsection (b), the Secretary shall assess a

penalty against the State in an amount equal to not less than 1

percent and not more than 5 percent of the amount of the

allotment.

``(2) Failure to comply with data reporting requirement.--

The Secretary shall assess a penalty against a State that fails

during a fiscal year to comply with an information collection

plan implemented under subsection (f ) in an amount equal to not

less than 1 percent and not more than 5 percent of the amount

allotted to the State for the fiscal year.

``(3) Penalties based on degree of noncompliance.--The

Secretary shall assess penalties under this subsection based on

the degree of noncompliance.

``(f ) Data Collection and Performance Measurement.--

``(1) In general.--The Secretary, in consultation with State

and local public officials responsible for administering

independent living and other child welfare programs, child

welfare advocates, Members of Congress, youth service providers,

and researchers, shall--

``(A) develop outcome measures (including measures

of educational attainment, high school diploma,

employment, avoidance of dependency, homelessness,

nonmarital childbirth, incarceration, and high-risk

behaviors) that can be used to assess the performance of

States in operating independent living programs;

``(B) identify data elements needed to track--

``(i) the number and characteristics of

children receiving services under this section;

``(ii) the type and quantity of services being

provided; and

``(iii) State performance on the outcome

measures; and

[[Page 113 STAT. 1828]]

``(C) develop and implement a plan to collect the

needed information beginning with the second fiscal year

beginning after the date of the enactment of this

section.

``(2) Report <<NOTE: Deadline.>> to the congress.--Within 12

months after the date of the enactment of this section, the

Secretary shall submit to the Committee on Ways and Means of the

House of Representatives and the Committee on Finance of the

Senate a report detailing the plans and timetable for collecting

from the States the information described in paragraph (1) and a

proposal to impose penalties consistent with paragraph (e)(2) on

States that do not report data.

``(g) Evaluations.--

``(1) In general.--The Secretary shall conduct evaluations

of such State programs funded under this section as the

Secretary deems to be innovative or of potential national

significance. The evaluation of any such program shall include

information on the effects of the program on education,

employment, and personal development. To the maximum extent

practicable, the evaluations shall be based on rigorous

scientific standards including random assignment to treatment

and control groups. The Secretary is encouraged to work directly

with State and local governments to design methods for

conducting the evaluations, directly or by grant, contract, or

cooperative agreement.

``(2) Funding of evaluations.--The Secretary shall reserve

1.5 percent of the amount specified in subsection (h) for a

fiscal year to carry out, during the fiscal year, evaluation,

technical assistance, performance measurement, and data

collection activities related to this section, directly or

through grants, contracts, or cooperative agreements with

appropriate entities.

``(h) Limitations on Authorization of Appropriations.--To carry out

this section and for payments to States under section 474(a)(4), there

are authorized to be appropriated to the Secretary $140,000,000 for each

fiscal year.''.

(c) Payments to States.--Section 474(a)(4) of such Act (42 U.S.C.

674(a)(4)) is amended to read as follows:

``(4) the lesser of--

``(A) 80 percent of the amount (if any) by which--

``(i) the total amount expended by the State

during the fiscal year in which the quarter occurs

to carry out programs in accordance with the State

application approved under section 477(b) for the

period in which the quarter occurs (including any

amendment that meets the requirements of section

477(b)(5)); exceeds

``(ii) the total amount of any penalties

assessed against the State under section 477(e)

during the fiscal year in which the quarter

occurs; or

``(B) the amount allotted to the State under section

477 for the fiscal year in which the quarter occurs,

reduced by the total of the amounts payable to the State

under this paragraph for all prior quarters in the

fiscal year.''.

(d) Regulations.--Not <<NOTE: Deadline. 42 USC 677 note.>> later

than 12 months after the date of the enactment of this Act, the

Secretary of Health and Human Services shall issue such regulations as

may be necessary to carry out the amendments made by this section.

42 USC 677

note.

[[Page 113 STAT. 1829]]

(e) Sense of the Congress.--It is the sense of the Congress that

States should provide medical assistance under the State plan approved

under title XIX of the Social Security Act to

18-, 19-, and 20-year-olds who have been emancipated from foster care.

Subtitle B--Related Foster Care Provision

SEC. 111. 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. 112. PREPARATION OF FOSTER PARENTS TO PROVIDE FOR THE NEEDS OF

CHILDREN IN STATE CARE.

(a) State Plan Requirement.--Section 471(a) of the Social Security

Act (42 U.S.C. 671(a)) is amended--

(1) by striking ``and'' at the end of paragraph (22);

(2) by striking the period at the end of paragraph (23) and

inserting ``; and''; and

(3) by adding at the end the following:

``(24) include a certification that, before a child in

foster care under the responsibility of the State is placed with

prospective foster parents, the prospective foster parents will

be prepared adequately with the appropriate knowledge and skills

to provide for the needs of the child, and that such preparation

will be continued, as necessary, after the placement of the

child.''.

(b) Effective <<NOTE: 42 USC 671 note.>> Date.--The amendments made

by subsection (a) shall take effect on October 1, 1999.

Subtitle C--Medicaid Amendments

SEC. 121. STATE OPTION OF MEDICAID COVERAGE FOR ADOLESCENTS LEAVING

FOSTER CARE.

(a) In General.--Subject to subsection (c), title XIX of the Social

Security Act, is amended--

(1) in section 1902(a)(10)(A)(ii) (42 U.S.C.

1396a(a)(10)(A)(ii))--

(A) by striking ``or'' at the end of subclause

(XIII);

(B) by adding ``or'' at the end of subclause (XIV);

and

(C) by adding at the end the following new

subclause:

``(XV) who are independent foster

care adolescents (as defined in section

1905(v)(1)), or who are within any

reasonable categories of such

adolescents specified by the State;'';

and

(2) by adding at the end of section 1905 (42 U.S.C. 1396d)

the following new subsection:

[[Page 113 STAT. 1830]]

``(v)(1) For purposes of this title, the term `independent foster

care adolescent' means an individual--

``(A) who is under 21 years of age;

``(B) who, on the individual's 18th birthday, was in foster

care under the responsibility of a State; and

``(C) whose assets, resources, and income do not exceed such

levels (if any) as the State may establish consistent with

paragraph (2).

``(2) The levels established by a State under paragraph (1)(C) may

not be less than the corresponding levels applied by the State under

section 1931(b).

``(3) A State may limit the eligibility of independent foster care

adolescents under section 1902(a)(10)(A)(ii)(XV) to those individuals

with respect to whom foster care maintenance payments or independent

living services were furnished under a program funded under part E of

title IV before the date the individuals attained 18 years of age.''.

(b) Effective <<NOTE: Applicability. 42 USC 1396a note.>> Date.--The

amendments made by subsection (a) apply to medical assistance for items

and services furnished on or after October 1, 1999.

42 USC

1396a

note.

(c) Contingency <<NOTE: 42 USC 1396a note.>> in Enactment.--If the

Ticket to Work and Work Incentives Improvement Act of 1999 is enacted

(whether before, on, or after the date of the enactment of this Act)--

(1) the amendments made by that Act shall be executed as if

this Act had been enacted after the enactment of such other Act;

(2) with respect to subsection (a)(1)(A) of this section,

any reference to subclause (XIII) is deemed a reference to

subclause (XV);

(3) with respect to subsection (a)(1)(B) of this section,

any reference to subclause (XIV) is deemed a reference to

subclause (XVI);

(4) <<NOTE: 42 USC 1396a.>> the subclause (XV) added by

subsection (a)(1)(C) of this section--

(A) is redesignated as subclause (XVII); and

(B) is amended by striking ``section 1905(v)(1)''

and inserting ``section 1905(w)(1)''; and

(5) <<NOTE: 42 USC 1396d.>> the subsection (v) added by

subsection (a)(2) of this section--

(A) is redesignated as subsection (w); and

(B) is amended by striking

``1902(a)(10)(A)(ii)(XV)'' and inserting

``1902(a)(10)(A)(ii)(XVII)''.

Subtitle D--Adoption Incentive Payments

SEC. 131. INCREASED FUNDING FOR ADOPTION INCENTIVE PAYMENTS.

(a) Supplemental Grants.--Section 473A of the Social Security Act

(42 U.S.C. 673b) is amended by adding at the end the following:

``( j) Supplemental Grants.--

``(1) In general.--Subject to the availability of such

amounts as may be provided in advance in appropriations Acts, in

addition to any amount otherwise payable under this section to

any State that is an incentive-eligible State for fiscal year

1998, the Secretary shall make a grant to the State in an amount

equal to the lesser of--

[[Page 113 STAT. 1831]]

``(A) the amount by which--