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







107th CONGRESS
  1st Session
                                H. R. 2873

  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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 10, 2001

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

_______________________________________________________________________

                                 A BILL


 
  To extend and amend the program entitled Promoting Safe and Stable 
Families under title IV-B, subpart 2 of the Social Security Act, and to 
  provide new authority to support programs for mentoring children of 
   incarcerated parents; to amend the Foster Care Independent Living 
  program under title IV-E of that Act to provide for educational and 
 training vouchers for youths aging out of foster care, and for other 
                               purposes.

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

SECTION. 1. SHORT TITLE; REFERENCES IN ACT.

    (a) Short Title.--This Act may be cited as the ``Promoting Safe and 
Stable Families Amendments of 2001''.
    (b) References in Act.--Except as otherwise specified, amendments 
made by this Act to a section or other provision are amendments to such 
sections or other provisions of the Social Security Act.

              TITLE I--PROMOTING SAFE AND STABLE FAMILIES

    PART A--GRANTS TO STATES FOR PROMOTING SAFE AND STABLE FAMILIES

 SEC. 101. FINDINGS AND PURPOSE.

    Section 430 is amended to read as follows:

``SEC. 430. FINDINGS AND PURPOSE.

    ``(a) Findings.--The Congress finds that there is a continuing 
urgent need to protect children and to strengthen families as 
demonstrated by the following:
            ``(1) Family support programs directed at 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. DEFINITION OF FAMILY SUPPORT SERVICES.

    Section 431(a)(2) is amended by inserting ``to strengthen parental 
relationships and promote healthy marriages,'' after ``environment,''.

SEC. 103. REALLOTMENTS.

    Section 433 is amended by adding at the end the following new 
subsection:
    ``(d) Reallotments.--The amount of any allotment to a State under 
this section for any fiscal year that the State certifies to the 
Secretary will not be required for carrying out the State plan under 
section 432 shall be available for reallotment using the allotment 
methodology specified in this section.''.

SEC. 104. PAYMENTS TO STATES.

    (a) In General.--Section 434(a) is amended--
            (1) by striking paragraph (2);
            (2) by striking all that precedes subparagraph (A) and 
        inserting the following:
    ``Sec. 434. (a) Entitlement.--Each State that has a plan approved 
under section 432 shall be entitled to payment of the lesser of--''; 
and
            (3) by redesignating subparagraphs (A) and (B) as 
        paragraphs (1) and (2), respectively, and by adjusting the left 
        margins accordingly.
    (b) Conforming Amendments.--Section 434(b) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``paragraph (1) or (2)(B) of''; and
                    (B) by striking ``described in this subpart'' and 
                inserting ``under the State plan under 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 is amended--
            (1) by striking all that precedes paragraph (1) of 
        subsection (a), including the caption, and inserting the 
        following:

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

    ``(a) Evaluations.--''; and
            (2) by adding at the end the following new subsections:
    ``(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.--The Secretary shall provide technical 
assistance that helps States to--
            ``(1) identify families with specific risk characteristics 
        for intervention;
            ``(2) develop treatment models that address the needs of 
        families at risk, particularly families with substance abuse 
        issues;
            ``(3) implement programs with well-articulated theories of 
        how the intervention will result in desired changes among 
        families at risk;
            ``(4) establish mechanisms to ensure that 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) In General.--Title IV is amended by adding after section 435 
the following new section:

``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 (other than section 438) 
$505,000,000 for each of fiscal years 2002 through 2006.
    ``(b) Reservation of Certain Amounts.--From the amount specified 
for each fiscal year under subsection (a), the Secretary shall reserve 
amounts for use as follows:
            ``(1) Evaluation, research, training, and technical 
        assistance.--The Secretary shall reserve $15,000,000 for fiscal 
        year 2002, and $20,000,000 for each of fiscal years 2003 
        through 2006, for expenditure by the Secretary--
                    ``(A) for research, training, and technical 
                assistance costs related to the program under this 
                subpart (other than section 438), including 
                expenditures for research of not less than $9,000,000 
                for fiscal year 2002, and not less than $14,000,000 for 
                each of fiscal years 2003 through 2006; and
                    ``(B) for evaluation of State programs based on the 
                plans approved under section 432 and funded under this 
                subpart, and any other Federal, State, or local 
                program, regardless of whether federally assisted, that 
                is designed to achieve the same purposes as such State 
                programs.
            ``(2) State court improvements.--The Secretary shall 
        reserve $20,000,000 for grants under section 437.
            ``(3) Indian tribes.--The Secretary shall reserve 2 percent 
        of the amount described in subsection (a) for allotment to 
        Indian tribes in accordance with section 433(a).''.
    (b) Conforming Amendments.--Section 433 is amended--
            (1) in subsection (a), by striking ``section 430(d)(3)'' 
        and inserting ``section 436(b)(3)'';
            (2) in subsection (b)--
                    (A) by striking ``section 430(b)'' and inserting 
                ``section 436(a)''; and
                    (B) by striking ``section 430(d)'' and inserting 
                ``section 436(b)''; and
            (3) in subsection (c)--
                    (A) by striking ``section 430(b)'' and inserting 
                ``section 436(a); and
                    (B) by striking ``section 430(d) and inserting 
                ``section 436(b)''.

SEC. 107. STATE COURT IMPROVEMENTS.

    (a) Relocation and Redesignation.--
            (1) In general.--Section 13712 of the Omnibus Budget 
        Reconciliation Act of 1993 is relocated and redesignated as 
        section 437 of the Social Security Act.
            (2) Conforming amendments.--Section 437, as relocated and 
        redesignated, is amended--
                    (A) in subsection (a)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``of title IV of the Social 
                        Security Act''; and
                            (ii) in paragraph (1)(A), by striking ``of 
                        title IV of such Act''; and
                    (B) in subsection (c)(2), by striking ``section 
                430(d)(2) of the Social Security Act'' and inserting 
                ``section 436(b)(2)''.
    (b) Scope of Activities.--
            (1) Section 437(a)(2) is amended--
                    (A) by striking ``changes'' and inserting 
                ``improvements''; and
                    (B) by inserting before the period ``in order to 
                promote more timely court actions that provide for the 
                safety of children in foster care and expedite their 
                placement in appropriate permanent settings''.
            (2) Section 437(c)(1) is amended in the matter preceding 
        subparagraph (A) by inserting ``and improvement'' after 
        ``assessment''.
    (c) Allotments.--Section 437(c)(1) is amended by striking all that 
follows ``shall be entitled to payment,'' and inserting ``for each of 
fiscal years 2002 through 2006, from amounts reserved pursuant to 
section 436(b)(2), of an amount equal to the sum of $85,000 plus the 
amount described in paragraph (2) for such fiscal year.''
    (d) Federal Share.--Section 437(d) is amended--
            (1) in the heading, by striking ``Use of Grant Funds'' and 
        inserting ``Federal Share''; and
            (2) by striking ``to pay--'' and all that follows and 
        inserting ``to pay not more than 75 percent of the cost of 
        activities under this section in each of fiscal years 2002 
        through 2006.''.

                PART B--MENTORING CHILDREN OF PRISONERS

SEC. 121. PROGRAM AUTHORIZED.

    Title IV is amended by adding after section 437 the following new 
section:

``SEC. 438. GRANTS FOR PROGRAMS FOR MENTORING 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. Only 10 percent 
                of incarcerated mothers and 2 percent of incarcerated 
                fathers in State prisons report that their child or 
                children are in foster care.
                    ``(D) Parental arrest and confinement lead to 
                stress, trauma, stigmatization, and 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 local governments 
        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.--For purposes of this section:
            ``(1) Children of prisoners.--The term `children of 
        prisoners' means children one or both of whose parents are 
        incarcerated in a Federal or State correctional facility. Such 
        term shall be deemed to include children who are in an ongoing 
        mentoring relationship in a program under this section at the 
        time of their parents' release from prison, for 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 (g) for a fiscal year that remains after applying subsection 
(g)(2), the Secretary shall make grants under this section for each of 
fiscal years 2002 through 2006 to local governments in areas that have 
significant numbers of children of prisoners and that submit 
applications meeting the requirements of this section, including--
            ``(1) two-thirds of such amount in grants in amounts of up 
        to $5,000,000 each; and
            ``(2) one-third of such amount in grants in amounts of up 
        to $10,000,000 each.
    ``(d) Application Requirements.--In order to be eligible for a 
grant under this section, the mayor or other chief executive officer of 
a city, council of governments, or other unit of government must submit 
to the Secretary an application containing the following:
            ``(1) Program design.--A description of the proposed local 
        program, including--
                    ``(A) a list of local public and private 
                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 such 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 local government 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) Supplementation assurance.--An assurance that Federal 
        funds provided to the local government under this section will 
        not be used to supplant Federal or non-Federal funds for 
        existing services and activities that promote the purpose of 
        this section.
            ``(5) Biennial program report.--An agreement that the local 
        government will submit to the Secretary, after the second year 
        of funding of a program under this section and every second 
        year thereafter, a report containing the following:
                    ``(A) A description of the grant requirements used 
                by the local government to award grant funds.
                    ``(B) The measurable goals and outcomes expected by 
                the programs receiving assistance under the local 
                government program (and in later reports, the extent to 
                which such goals and outcomes were achieved).
                    ``(C) A description of the services provided by 
                programs receiving assistance under the local 
                government program.
                    ``(D) The number of children and families served.
                    ``(E) Such other such information as the Secretary 
                may require.
            ``(6) Records, reports, and audits.--An agreement that the 
        local government will maintain such records, make such reports, 
        and cooperate with such reviews or audits as the Secretary may 
        find necessary for purposes of oversight of project activities 
        and expenditures.
            ``(7) Evaluation.--An agreement that the local government 
        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.
            ``(8) Extent of local-state cooperation.--A statement as to 
        whether, and the extent to which, the State government has 
        undertaken to provide support to and to cooperate with the 
        local program.
    ``(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) 80 percent for the first fiscal year for 
                which the grant is awarded;
                    ``(B) 60 percent for the second such fiscal year;
                    ``(C) 40 percent for the third such fiscal year; 
                and
                    ``(D) 20 percent for each succeeding fiscal year.
            ``(2) Non-federal share.--The non-Federal share of the cost 
        of projects under this section may be in cash or in kind. In 
        determining the amount of the non-Federal share, the Secretary 
        may attribute fair market value to goods, services, and 
        facilities contributed from non-Federal sources.
    ``(f) Considerations in Awarding Grants.--In awarding grants under 
this section, the Secretary shall take into consideration--
            ``(1) the experience, qualifications, and capacity of local 
        governments and networks of organizations to effectively carry 
        out a mentoring program under this section;
            ``(2) the comparative severity of need for mentoring 
        services in given 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 such 
        areas;
            ``(3) whether, and the extent to which, the State 
        government has undertaken to support and cooperate with the 
        local mentoring program;
            ``(4) evidence of consultation with existing youth and 
        family service programs, as appropriate; and
            ``(5) any other factors the Secretary may deem significant 
        with respect to the need for or the potential success of 
        carrying out a mentoring program under this section.
    ``(g) Authorization of Appropriations; Reservation of Certain 
Amounts.--
            ``(1) Authorization.--There are authorized to be 
        appropriated to carry out this section $67,000,000 for fiscal 
        year 2002, and such sums as may be necessary for each of fiscal 
        years 2003 through 2006.
            ``(2) Reservation.--The Secretary shall 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. ELIMINATION OF OPT-OUT PROVISION FOR STATE REQUIREMENT TO 
              CONDUCT CRIMINAL BACKGROUND CHECK ON PROSPECTIVE FOSTER 
              OR ADOPTIVE PARENTS.

    Section 471(a)(20) is amended--
            (1) by striking ``(A) unless an election provided for in 
        subparagraph (B) is made with respect to the State;'';
            (2) in subparagraph (A), by striking ``and'' at the end;
            (3) by striking subparagraph (B);
            (4) by striking ``(i)'' and inserting ``(A)''; and
            (5) by striking ``(ii)'' and inserting ``(B)''.

 SEC. 202. EDUCATIONAL AND TRAINING VOUCHERS FOR YOUTHS AGING OUT OF 
              FOSTER CARE.

    (a) Purpose.--Section 477(a) is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of 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 is amended by 
adding the following new subsection:
    ``(i) Educational and Training Vouchers.--The following conditions 
shall apply to a State educational and training voucher program under 
this section:
            ``(1) Vouchers under the program shall be 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 shall be considered to 
        be youths otherwise eligible for services under the State 
        program under this section.
            ``(3) Youths participating in the voucher program on the 
        date they attain age 21 shall remain eligible until they attain 
        23 years of age, as long as they are enrolled in a full-time 
        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) shall 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 shall 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) is amended by adding at the 
end the following new subparagraph:
                    ``(J) A certification by the chief executive 
                officer of the State that the State educational and 
                training voucher program under this 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) 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 shall be available 
        for payments to States for education and training vouchers for 
        youths who age out of foster care, to assist such youths to 
        develop skills necessary to lead independent and productive 
        lives.''.
    (e) Allotments to States.--Section 477(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 specified 
        in subsection (h)(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 that bears the 
        ratio to such amount equal to the State foster care ratio.
            ``(4) State foster care ratio.--For purposes of this 
        subsection, the term `State foster care ratio' means the ratio 
        of the number of children in foster care under a program of the 
        State in the most recent fiscal year for which such information 
        is available to the total number of children in foster care in 
        all States for such most recent fiscal year.''.
    (f) Payments to States.--Section 474(a)(4) is amended to read as 
follows:
            ``(4) an amount equal to--
                    ``(A) the sum of the following amounts for 
                expenditures in accordance with the State application 
                approved under section 477(b) (including any amounts 
                expended in accordance with an amendment that meets the 
                requirements of section 477(b)(5)):
                            ``(i) the lesser of--
                                    ``(I) 80 percent of the amounts 
                                expended by the State during the 
                                quarter to carry out programs for the 
                                purposes described in subsection 
                                (h)(1); or
                                    ``(II) the amount allotted to the 
                                State under section 477(c)(1) for the 
                                fiscal year in which the quarter 
                                occurs, reduced by the total of the 
                                amounts payable to the State under this 
                                paragraph for such purposes for all 
                                prior quarters in the fiscal year; plus
                            ``(ii) the lesser of--
                                    ``(I) 80 percent of the amounts 
                                expended by the State during the 
                                quarter to carry out programs for the 
                                purposes described in subsection 
                                (h)(2); or
                                    ``(II) the amount allotted to the 
                                State under section 477(c)(3) for the 
                                fiscal year in which the quarter 
                                occurs, reduced by the total of the 
                                amounts payable to the State under this 
                                paragraph for such purposes for all 
                                prior quarters in the fiscal year;
                reduced by
                    ``(B) the total amount of any penalties assessed 
                against the State under section 477(e) for such fiscal 
                year.''.

                       TITLE III--EFFECTIVE DATES

SEC. 301. EFFECTIVE DATES.

    (a) In General.--Subject to subsection (b)--
            (1) except as provided in paragraph (2), the amendments 
        made by this Act take effect October 1, 2001; and
            (2) the amendments made by section 201 take effect on the 
        date of enactment of this Act.
    (b) Delay Permitted if State Legislation Required.--In the case of 
a State plan under part B or E of the Social Security Act that the 
Secretary of Health and Human Services determines requires State 
legislation (other than legislation appropriating funds) in order for 
the plan to meet the additional requirements imposed by the amendments 
specified in subsection (a), the State plan shall not be regarded as 
failing to comply with the requirements of such part solely on the 
basis of the failure of the plan to meet such additional requirements 
before the first day of the first calendar quarter beginning after the 
close of the first regular session of the State legislature that begins 
after the date of enactment of this Act. For purposes of the previous 
sentence, in the case of a State that has a 2-year legislative session, 
each year of such session shall be deemed to be a separate regular 
session of the State legislature.
                                 <all>