[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2873 Engrossed in House (EH)]


  1st Session

                               H. R. 2873

_______________________________________________________________________

                                 AN ACT

  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.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
107th CONGRESS
  1st Session
                                H. R. 2873

_______________________________________________________________________

                                 AN ACT


 
  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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Promoting Safe and Stable Families 
Amendments of 2001''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
              TITLE I--PROMOTING SAFE AND STABLE FAMILIES

  Subtitle A--Grants to States for Promoting Safe and Stable Families

Sec. 101. Findings and purpose.
Sec. 102. Definition of family support services.
Sec. 103. Reallotments.
Sec. 104. Payments to States.
Sec. 105. Evaluations, research, and technical assistance.
Sec. 106. Authorization of appropriations; reservation of certain 
                            amounts.
Sec. 107. State court improvements.
              Subtitle B--Mentoring Children of Prisoners

Sec. 121. Program authorized.
              TITLE II--FOSTER CARE AND INDEPENDENT LIVING

Sec. 201. Educational and training vouchers for youths aging out of 
                            foster care.
Sec. 202. Reallocation and extension of funds.
                       TITLE III--EFFECTIVE DATE

Sec. 301. Effective date.

SEC. 3. REFERENCES.

    Except as otherwise specified in this Act, an amendment made by 
this Act to a section or other provision shall be considered an 
amendment to the section or other provision of the Social Security Act.

              TITLE I--PROMOTING SAFE AND STABLE FAMILIES

  Subtitle A--Grants to States for Promoting Safe and Stable Families

SEC. 101. FINDINGS AND PURPOSE.

    Section 430 (42 U.S.C. 629) 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 specific 
        vulnerable populations have had positive effects on parents, 
        children, or both. The vulnerable populations 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 growing need for postadoption services and 
        for service providers with the particular knowledge and skills 
        required to address the unique issues adoptive families 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 families at risk 
        through the provision of supportive family 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 reunification 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. DEFINITIONS.

    (a) Inclusion of Infant Safe Haven Programs Among Family 
Preservation Services.--Section 431(a)(1) (42 U.S.C. 629a(a)(1)) is 
amended--
            (1) by striking ``and'' at the end of subparagraph (D);
            (2) by striking the period at the end of subparagraph (E) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(F) infant safe haven programs to provide a way 
                for a parent to safely relinquish a newborn infant at a 
                safe haven designated pursuant to a State law.''.
    (b) Family Support Services.--Section 431(a)(2) (42 U.S.C. 
629a(a)(2)) is amended by inserting ``to strengthen parental 
relationships and promote healthy marriages,'' after ``environment,''.

SEC. 103. REALLOTMENTS.

    Section 433 (42 U.S.C. 629c) is amended by adding at the end the 
following:
    ``(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. Any amount so reallotted to a 
State is deemed part of the allotment of the State under the preceding 
provisions of this section.''.

SEC. 104. PAYMENTS TO STATES.

    (a) In General.--Section 434(a) (42 U.S.C. 629d(a)) is amended--
            (1) by striking paragraph (2);
            (2) by striking all that precedes subparagraph (A) of 
        paragraph (1) and inserting the following:
    ``(a) Entitlement.--Each State that has a plan approved under 
section 432 shall be entitled to payment of the lesser of--''; and
            (3) by redesignating subparagraphs (A) and (B) of paragraph 
        (1) as paragraphs (1) and (2), respectively, and by indenting 
        the provisions 2 ems to the left.
    (b) Conforming Amendments.--Section 434(b) (42 U.S.C. 629d(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 section 432''; 
                and
            (2) in paragraph (2), by striking ``subsection (a)(1)'' and 
        inserting ``subsection (a)''.

SEC. 105. EVALUATIONS, RESEARCH, AND TECHNICAL ASSISTANCE.

    Section 435 (42 U.S.C. 629e) is amended--
            (1) by striking all that precedes ``the effectiveness'' in 
        paragraph (1) of subsection (a), including the heading for 
        section 435 and the caption for subsection (a), and inserting 
        the following:

``SEC. 435. EVALUATIONS; RESEARCH; TECHNICAL ASSISTANCE.

    ``(a) Evaluations.--
            ``(1) In general.--The Secretary shall evaluate and report 
        to the Congress biennially on'';
            (2) by adding at the end of subsection (a) the following:
            ``(3) Timing of report.--Beginning in 2003, the Secretary 
        shall submit the biennial report required by this subsection 
        not later than April 1 of every other year, and shall include 
        in each such report the funding level, the status of ongoing 
        evaluations, findings to date, and the nature of any technical 
        assistance provided to States under subsection (d).''; and
            (3) by adding at the end the following:
    ``(c) Research.--The Secretary shall give priority consideration to 
the following topics for research and evaluation under this subsection, 
using rigorous evaluation methodologies where feasible:
            ``(1) Promising program models in the service categories 
        specified in section 430(b), particularly time-limited 
        reunification services and postadoption services.
            ``(2) Multi-disciplinary service models designed to address 
        parental substance abuse and to reduce its impacts on children.
            ``(3) The efficacy of approaches directed at families with 
        specific problems and with children of specific age ranges.
            ``(4) The outcomes of adoptions finalized after enactment 
        of the Adoption and Safe Families Act of 1997.
    ``(d) Technical Assistance.--To the extent funds are available 
therefor, the Secretary shall provide technical assistance that helps 
States and Indian tribes to--
            ``(1) develop research-based protocols for identifying 
        families at risk of abuse and neglect of use in the field;
            ``(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 service provision 
        matches the treatment model; and
            ``(5) establish mechanisms to ensure that postadoption 
        services meet the needs of the individual families and develop 
        models to reduce the disruption rates of adoption.''.

SEC. 106. AUTHORIZATION OF APPROPRIATIONS; RESERVATION OF CERTAIN 
              AMOUNTS.

    (a) Mandatory Funding.--
            (1) In general.--Subpart 2 of part B of title IV (42 U.S.C. 
        629-629e) is amended by adding at the end the following:

``SEC. 436. AUTHORIZATION OF APPROPRIATIONS; RESERVATION OF CERTAIN 
              AMOUNTS.

    ``(a) Authorization.--There are authorized to be appropriated to 
carry out the provisions of this subpart $305,000,000 for each of 
fiscal years 2002 through 2006.
    ``(b) Reservation of Certain Amounts.--From the amount specified in 
subsection (a) for a fiscal year, the Secretary shall reserve amounts 
as follows:
            ``(1) Evaluation, research, training, and technical 
        assistance.--The Secretary shall reserve $6,000,000 for 
        expenditure by the Secretary--
                    ``(A) for research, training, and technical 
                assistance costs related to the program under this 
                subpart; 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 the State 
                programs.
            ``(2) State court improvements.--The Secretary shall 
        reserve $10,000,000 for grants under section 438.
            ``(3) Indian tribes.--The Secretary shall reserve 1 percent 
        for allotment to Indian tribes in accordance with section 
        433(a).''.
            (2) Conforming amendments.--Section 433 (42 U.S.C. 629c) is 
        amended--
                    (A) in subsection (a), by striking ``section 
                430(d)(3)'' and inserting ``section 436(b)(3)'';
                    (B) in subsection (b)--
                            (i) by striking ``section 430(b)'' and 
                        inserting ``section 436(a)''; and
                            (ii) by striking ``section 430(d)'' and 
                        inserting ``section 436(b)''; and
                    (C) in subsection (c)(1)--
                            (i) by striking ``section 430(b)'' and 
                        inserting ``section 436(a)''; and
                            (ii) by striking ``section 430(d)'' and 
                        inserting ``section 436(b)''.
    (b) Discretionary Funding.--Subpart 2 of part B of title IV (42 
U.S.C. 629-629e) is further amended by adding at the end the following:

``SEC. 437. DISCRETIONARY GRANTS.

    ``(a) Limitations on Authorization of Appropriations.--In addition 
to any amount appropriated pursuant to section 436, there are 
authorized to be appropriated to carry out this section $200,000,000 
for each of fiscal years 2002 through 2006.
    ``(b) Reservation of Certain Amounts.--From the amount (if any) 
appropriated pursuant to subsection (a) for a fiscal year, the 
Secretary shall reserve amounts as follows:
            ``(1) Evaluation, research, training, and technical 
        assistance.--The Secretary shall reserve 3.3 percent for 
        expenditure by the Secretary for the activities described in 
        section 436(b)(1).
            ``(2) State court improvements.--The Secretary shall 
        reserve 3.3 percent for grants under section 438.
            ``(3) Indian tribes.--The Secretary shall reserve 2 percent 
        for allotment to Indian tribes in accordance with subsection 
        (c)(1).
    ``(c) Allotments.--
            ``(1) Indian tribes.--From the amount (if any) reserved 
        pursuant to subsection (b)(3) for any fiscal year, the 
        Secretary shall allot to each Indian tribe with a plan approved 
        under this subpart an amount that bears the same ratio to such 
        reserved amount as the number of children in the Indian tribe 
        bears to the total number of children in all Indian tribes with 
        State plans so approved, as determined by the Secretary on the 
        basis of the most current and reliable information available to 
        the Secretary.
            ``(2) Territories.--From the amount (if any) appropriated 
        pursuant to subsection (a) for any fiscal year that remains 
        after applying subection (b) for the fiscal year, the Secretary 
        shall allot to each of the jurisdictions of Puerto Rico, Guam, 
        the Virgin Islands, the Northern Mariana Islands, and American 
        Samoa an amount determined in the same manner as the allotment 
        to each of such jurisdictions is determined under section 421.
            ``(3) Other states.--From the amount (if any) appropriated 
        pursuant to subsection (a) for any fiscal year that remains 
        after applying subsection (b) and paragraph (2) of this 
        subsection for the fiscal year, the Secretary shall allot to 
        each State (other than an Indian tribe) which is not specified 
        in paragraph (2) of this subsection an amount equal to such 
        remaining amount multiplied by the food stamp percentage (as 
        defined in section 433(c)(2)) of the State for the fiscal year.
    ``(d) Grants.--The Secretary may make a grant to a State which has 
a plan approved under this subpart in an amount equal to the lesser 
of--
            ``(1) 75 percent of the total expenditures by the State for 
        activities under the plan during the fiscal year or the 
        immediately succeeding fiscal year; or
            ``(2) the allotment of the State under subsection (c) for 
        the fiscal year.
    ``(e) Applicability of Certain Rules.--The rules of subsections (b) 
and (c) of section 434 shall apply in like manner to the amounts made 
available pursuant to this section.''.

SEC. 107. STATE COURT IMPROVEMENTS.

    (a) Scope of Activities.--Section 13712 of the Omnibus Budget 
Reconciliation Act of 1993 (42 U.S.C. 670 note) is amended--
            (1) in subsection (a), by striking paragraph (2) and 
        inserting the following:
            ``(2) to implement improvements the highest state courts 
        deem necessary as a result of the assessments, including--
                    ``(A) to provide for the safety, well-being, and 
                permanence of children in foster care, as set forth in 
                the Adoption and Safe Families Act of 1997 (Public Law 
                105-89); and
                    ``(B) to implement a corrective action plan, as 
                necessary, resulting from reviews of child and family 
                service programs under section 1123A of this Act.''; 
                and
            (2) in subsection (c)(1), in the matter preceding 
        subparagraph (A), by inserting ``and improvement'' after 
        ``assessment''.
    (b) Allotments.--Section 13712(c)(1) of such Act (42 U.S.C. 670 
note) is amended by striking all that follows ``shall be entitled to 
payment,'' and inserting ``for each of fiscal years 2002 through 2006, 
from the amount reserved pursuant to section 436(b)(2) (and the amount, 
if any, reserved pursuant to section 437(b)(2)), of an amount equal to 
the sum of $85,000 plus the amount described in paragraph (2) of this 
subsection for the fiscal year.''.
    (c) Federal Share.--Section 13712(d) of such Act (42 U.S.C. 670 
note) 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 fiscal years 2002 
        through 2006.''.
    (d) Conforming Amendments.--Section 13712 of such Act (42 U.S.C. 
670 note) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``of title IV of the Social Security Act''; 
                and
                    (B) in paragraph (1)(A), by striking ``of title IV 
                of such Act''; and
            (2) in subsection (c)(2), by striking ``section 430(d)(2) 
        of the Social Security Act'' and inserting ``section 436(b)(2) 
        (and the amount, if any, reserved pursuant to section 
        437(b)(2))''.
    (e) Transfer and Redesignation.--Section 13712 of such Act (42 
U.S.C. 670 note), as amended by the preceding provisions of this 
section, is redesignated as section 438 and is transferred to the end 
of subpart 2 of part B of title IV of the Social Security Act.

              Subtitle B--Mentoring Children of Prisoners

SEC. 121. PROGRAM AUTHORIZED.

    Subpart 2 of part B of title IV (42 U.S.C. 629-629e) is further 
amended by adding at the end the following:

``SEC. 439. GRANTS FOR PROGRAMS FOR MENTORING CHILDREN OF PRISONERS.

    ``(a) Findings and Purpose.--
            ``(1) Findings.--
                    ``(A) In the period between 1991 and 1999, the 
                number of children with a parent incarcerated in a 
                Federal or State correctional facility 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 prisoners 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 relative.
                    ``(D) Parental arrest and confinement lead to 
                stress, trauma, stigmatization, and separation problems 
                for children. These problems are coupled with existing 
                problems that include poverty, 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, emotional, 
                health, and educational problems that are often 
                compounded by the pain of separation.
                    ``(E) Empirical research demonstrates that 
                mentoring is a potent force for improving children's 
                behavior across all risk behaviors affecting health. 
                Quality, one-on-one relationships that provide young 
                people with caring role models for future success have 
                profound, life-changing potential. Done right, 
                mentoring markedly advances youths' life prospects. A 
                widely cited 1995 study by Public/Private Ventures 
                measured the impact of one Big Brothers Big Sisters 
                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, improving 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 applicants in areas 
        with substantial numbers of children of incarcerated parents, 
        to support the establishment or expansion and operation of 
        programs using a network of public and private community 
        entities to provide mentoring services for children of 
        prisoners.
    ``(b) Definitions.--In this section:
            ``(1) Children of prisoners.--The term `children of 
        prisoners' means children one or both of whose parents are 
        incarcerated in a Federal, State, or local correctional 
        facility. The term is 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 purposes 
        of continued participation in the program.
            ``(2) Mentoring.--The term `mentoring' means a structured, 
        managed program in which children 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 
        involvement with a caring and supportive adult who provides a 
        positive role model.
            ``(3) Mentoring services.--The term `mentoring 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 children with suitable adult 
        volunteer mentors; support and oversight of the mentoring 
        relationship; and establishment of goals and evaluation of 
        outcomes for mentored children.
    ``(c) Program Authorized.--From the amounts appropriated under 
subsection (h) for a fiscal year that remain after applying subsection 
(h)(2), the Secretary shall make grants under this section for each of 
fiscal years 2002 through 2006 to State or local governments, tribal 
governments or tribal consortia, faith-based organizations, and 
community-based organizations in areas that have significant numbers of 
children of prisoners and that submit applications meeting the 
requirements of this section, in amounts that do not exceed $5,000,000 
per grant.
    ``(d) Application Requirements.--In order to be eligible for a 
grant under this section, the chief executive officer of the applicant 
must submit to the Secretary an application containing the following:
            ``(1) Program design.--A description of the proposed 
        program, including--
                    ``(A) a list of local public and private 
                organizations and entities that will participate in the 
                mentoring network;
                    ``(B) the name, description, and qualifications of 
                the entity that will coordinate and oversee the 
                activities of the mentoring network;
                    ``(C) the number of mentor-child matches proposed 
                to be established and maintained annually under the 
                program;
                    ``(D) such information as the Secretary may require 
                concerning the methods to be used to recruit, screen 
                support, and oversee individuals participating as 
                mentors, (which methods shall include criminal 
                background checks on the individuals), and to evaluate 
                outcomes for participating children, including 
                information necessary to demonstrate compliance with 
                requirements established by the Secretary for the 
                program; and
                    ``(E) such other information as the Secretary may 
                require.
            ``(2) Community consultation; coordination with other 
        programs.--A demonstration that, in developing and implementing 
        the program, the applicant will, to the extent feasible and 
        appropriate--
                    ``(A) consult with public and private community 
                entities, including religious organizations, and 
                including, as appropriate, Indian tribal organizations 
                and urban Indian organizations, and with family members 
                of potential clients;
                    ``(B) coordinate the programs and activities 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 development, and substance 
                abuse and mental health agencies.
            ``(3) Equal access for local service providers.--An 
        assurance that public and private entities and community 
        organizations, including religious organizations and Indian 
        organizations, will be eligible to participate on an equal 
        basis.
            ``(4) Records, reports, and audits.--An agreement that the 
        applicant 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 activities and 
        expenditures.
            ``(5) Evaluation.--An agreement that the applicant will 
        cooperate fully with the Secretary's ongoing and final 
        evaluation of the program under the plan, by means including 
        providing the Secretary access to the program and program-
        related records and documents, staff, and grantees receiving 
        funding under the plan.
    ``(e) Federal Share.--
            ``(1) In general.--A grant for a program under this section 
        shall be available to pay a percentage share of the costs of 
        the program up to--
                    ``(A) 75 percent for the first and second fiscal 
                years for which the grant is awarded; and
                    ``(B) 50 percent for the third and each succeeding 
                such fiscal years.
            ``(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 qualifications and capacity of applicants and 
        networks of organizations to effectively carry out a mentoring 
        program under this section;
            ``(2) the comparative severity of need for mentoring 
        services in local areas, taking into consideration data on the 
        numbers of children (and in particular of low-income children) 
        with an incarcerated parents (or parents) in the areas;
            ``(3) evidence of consultation with existing youth and 
        family service programs, as appropriate; and
            ``(4) any other factors the Secretary may deem significant 
        with respect to the need for or the potential success of 
        carrying out a mentoring program under this section.
    ``(g) Evaluation.--The Secretary shall conduct an evaluation of the 
programs conducted pursuant to this section, and submit to the Congress 
not later than April 15, 2005, a report on the findings of the 
evaluation.
    ``(h) Authorization of Appropriations; Reservation of Certain 
Amounts.--
            ``(1) Authorization.--There are authorized to be 
        appropriated to carry out this section $67,000,000 for each of 
        fiscal years 2002 and 2003, and such sums as may be necessary 
        for each succeeding fiscal year.
            ``(2) Reservation.--The Secretary shall reserve 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 
        section.''.

              TITLE II--FOSTER CARE AND INDEPENDENT LIVING

SEC. 201. EDUCATIONAL AND TRAINING VOUCHERS FOR YOUTHS AGING OUT OF 
              FOSTER CARE.

    (a) Purpose.--Section 477(a) (42 U.S.C. 677(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (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.--Section 477 (42 U.S.C. 677) 
is amended by adding at the end the following:
    ``(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 may be available 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 may be considered to be 
        youths otherwise eligible for services under the State program 
        under this section.
            ``(3) The State may allow youths participating in the 
        voucher program on the date they attain 21 years of age to 
        remain eligible until they attain 23 years of age, as long as 
        they are enrolled in a postsecondary education or training 
        program and are making satisfactory progress toward completion 
        of that program.
            ``(4) The voucher or vouchers provided for an individual 
        under this section--
                    ``(A) may be available for the cost of attendance 
                at an institution of higher education, as defined in 
                section 102 of the Higher Education Act of 1965; and
                    ``(B) shall not exceed the lesser of $5,000 per 
                year or the total cost of attendance, as defined in 
                section 472 of that Act.
            ``(5) The amount of a voucher under this section may be 
        disregarded for purposes of determining the recipient's 
        eligibility for, or the amount of, any other Federal or 
        Federally supported assistance, except that the total amount of 
        educational assistance to a youth under this section and under 
        other Federal and Federally supported programs shall not exceed 
        the total cost of attendance, as defined in section 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 appropriate 
        education and training programs.''.
    (c) Certification.--Section 477(b)(3) (42 U.S.C. 677(b)(3)) is 
amended by adding at the end the following:
                    ``(J) A certification by the chief executive 
                officer of the State that the State educational and 
                training voucher program under this section is in 
                compliance with the conditions specified in subsection 
                (i), including a statement describing 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 exceed the 
                        limitation specified in subsection (i)(5); and
                            ``(ii) to avoid duplication of benefits 
                        under this and any other Federal or Federally 
                        assisted benefit program.''.
    (d) Increased Authorizations of Appropriations.--Section 477(h) (42 
U.S.C. 677(h)) is amended by striking ``there are authorized'' and all 
that follows and inserting the following: ``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
            ``(2) an additional $60,000,000, which are authorized to be 
        available for payments to States for education and training 
        vouchers for youths who age out of foster care, to assist the 
        youths to develop skills necessary to lead independent and 
        productive lives.''.
    (e) Allotments to States.--Section 477(c) (42 U.S.C. 677(c)) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``(1) In general.--From the amount 
                specified in subsection (h)'' and inserting ``(1) 
                General program allotment.--From the amount specified 
                in subsection (h)(1)'';
                    (B) by striking ``which bears the same ratio'' and 
                inserting ``which bears the ratio''; and
                    (C) by striking ``as the number of children in 
                foster care'' and all that follows and inserting 
                ``equal to the State foster care ratio, as adjusted in 
                accordance with paragraph (2).''; and
            (2) by adding at the end the following new paragraphs:
            ``(3) Voucher program allotment.--From the amount, if any, 
        appropriated pursuant to subsection (h)(2) for a fiscal year, 
        the Secretary may allot to each State with an application 
        approved under subsection (b) for the fiscal year an amount 
        equal to the State foster care ratio multiplied by the amount 
        so specified.
            ``(4) State foster care ratio.--In 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 the information is available 
        to the total number of children in foster care in all States 
        for the most recent fiscal year.''.
    (f) Payments to States.--
            (1) In general.--Section 474(a)(4) (42 U.S.C. 674(a)(4)) is 
        amended to read as follows:
            ``(4) an amount equal to the amount (if any) by which--
                    ``(A) the lesser of--
                            ``(i) 80 percent of the amounts 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)); or
                            ``(ii) the amount allotted to the State 
                        under section 477(c)(1) 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; exceeds
                    ``(B) the total amount of any penalties assessed 
                against the State under section 477(e) during the 
                fiscal year in which the quarter occurs.''.
            (2) Discretionary grants.--Section 474 (42 U.S.C. 674) is 
        amended by adding at the end the following:
    ``(e) Discretionary Grants for Educational and Training Vouchers 
for Youths Aging out of Foster Care.--From amounts appropriated 
pursuant to section 477(h)(2), the Secretary may make a grant to a 
State with a plan approved under this part, for a calendar quarter, in 
an amount equal to the lesser of--
            ``(1) 80 percent of the amounts expended by the State 
        during the quarter to carry out programs for the purposes 
        described in section 477(a)(6); or
            ``(2) the amount, if any, allotted to the State under 
        section 477(c)(3) for the fiscal year in which the quarter 
        occurs, reduced by the total of the amounts payable to the 
        State under this subsection for such purposes for all prior 
        quarters in the fiscal year.''.

SEC. 202. REALLOCATION AND EXTENSION OF FUNDS.

    (a) Reallocation of Unused Funds.--Section 477(d) (42 U.S.C. 
677(d)) is amended by adding at the end the following:
            ``(4) Reallocation of unused funds.--If a State does not 
        apply for funds under this section for a fiscal year within 
        such time as may be provided by the Secretary, the funds to 
        which the State would be entitled for the fiscal year shall be 
        reallocated to 1 or more other States on the basis of their 
        relative need for additional payments under this section, as 
        determined by the Secretary.''.
    (b) Temporary Extension of Availability of Independent Living 
Funds.--Notwithstanding section 477(d)(3) of the Social Security Act, 
payments made to a State under section 477 of such Act for fiscal year 
2000 shall remain available for expenditure by the State through fiscal 
year 2002.

                       TITLE III--EFFECTIVE DATE

SEC. 301. EFFECTIVE DATE.

    (a) In General.--Subject to subsection (b), the amendments made by 
this Act shall take effect on the date of the enactment of this Act.
    (b) Delay Permitted if State Legislation Required.--In the case of 
a State plan under subpart 2 of part B or part 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) of this section, the State plan 
shall not be regarded as failing to comply with the requirements of 
such part solely on the basis of the failure of the plan to meet the 
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 the enactment of this 
Act. For purposes of the preceding sentence, in the case of a State 
that has a 2-year legislative session, each year of the session shall 
be deemed to be a separate regular session of the State legislature.

            Passed the House of Representatives November 13, 2001.

            Attest:

                                                                 Clerk.