
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC673b]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
 SUBCHAPTER IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES 
              WITH CHILDREN AND FOR CHILD-WELFARE SERVICES
 
    Part E--Federal Payments for Foster Care and Adoption Assistance
 
Sec. 673b. Adoption incentive payments


(a) Grant authority

    Subject to the availability of such amounts as may be provided in 
advance in appropriations Acts for this purpose, the Secretary shall 
make a grant to each State that is an incentive-eligible State for a 
fiscal year in an amount equal to the adoption incentive payment payable 
to the State under this section for the fiscal year, which shall be 
payable in the immediately succeeding fiscal year.

(b) Incentive-eligible State

    A State is an incentive-eligible State for a fiscal year if--
        (1) the State has a plan approved under this part for the fiscal 
    year;
        (2) the number of foster child adoptions in the State during the 
    fiscal year exceeds the base number of foster child adoptions for 
    the State for the fiscal year;
        (3) the State is in compliance with subsection (c) of this 
    section for the fiscal year;
        (4) in the case of fiscal years 2001 and 2002, the State 
    provides health insurance coverage to any child with special needs 
    (as determined under section 673(c) of this title) for whom there is 
    in effect an adoption assistance agreement between a State and an 
    adoptive parent or parents; and
        (5) the fiscal year is any of fiscal years 1998 through 2002.

(c) Data requirements

                           (1) In general

        A State is in compliance with this subsection for a fiscal year 
    if the State has provided to the Secretary the data described in 
    paragraph (2)--
            (A) for fiscal years 1995 through 1997 (or, if the first 
        fiscal year for which the State seeks a grant under this section 
        is after fiscal year 1998, the fiscal year that precedes such 
        first fiscal year); and
            (B) for each succeeding fiscal year that precedes the fiscal 
        year.

              (2) Determination of numbers of adoptions

        (A) Determinations based on AFCARS data

            Except as provided in subparagraph (B), the Secretary shall 
        determine the numbers of foster child adoptions and of special 
        needs adoptions in a State during each of fiscal years 1995 
        through 2002, for purposes of this section, on the basis of data 
        meeting the requirements of the system established pursuant to 
        section 679 of this title, as reported by the State and approved 
        by the Secretary by August 1 of the succeeding fiscal year.

        (B) Alternative data sources permitted for fiscal years 1995 
                through 1997

            For purposes of the determination described in subparagraph 
        (A) for fiscal years 1995 through 1997, the Secretary may use 
        data from a source or sources other than that specified in 
        subparagraph (A) that the Secretary finds to be of equivalent 
        completeness and reliability, as reported by a State by April 
        30, 1998, and approved by the Secretary by July 1, 1998.

                (3) No waiver of AFCARS requirements

        This section shall not be construed to alter or affect any 
    requirement of section 679 of this title or of any regulation 
    prescribed under such section with respect to reporting of data by 
    States, or to waive any penalty for failure to comply with such a 
    requirement.

(d) Adoption incentive payment

                           (1) In general

        Except as provided in paragraph (2), the adoption incentive 
    payment payable to a State for a fiscal year under this section 
    shall be equal to the sum of--
            (A) $4,000, multiplied by the amount (if any) by which the 
        number of foster child adoptions in the State during the fiscal 
        year exceeds the base number of foster child adoptions for the 
        State for the fiscal year; and
            (B) $2,000, multiplied by the amount (if any) by which the 
        number of special needs adoptions in the State during the fiscal 
        year exceeds the base number of special needs adoptions for the 
        State for the fiscal year.

       (2) Pro rata adjustment if insufficient funds available

        For any fiscal year, if the total amount of adoption incentive 
    payments otherwise payable under this section for a fiscal year 
    exceeds the amount appropriated pursuant to subsection (h) of this 
    section for the fiscal year, the amount of the adoption incentive 
    payment payable to each State under this section for the fiscal year 
    shall be--
            (A) the amount of the adoption incentive payment that would 
        otherwise be payable to the State under this section for the 
        fiscal year; multiplied by
            (B) the percentage represented by the amount so appropriated 
        for the fiscal year, divided by the total amount of adoption 
        incentive payments otherwise payable under this section for the 
        fiscal year.

(e) 2-year availability of incentive payments

    Payments to a State under this section in a fiscal year shall remain 
available for use by the State through the end of the succeeding fiscal 
year.

(f) Limitations on use of incentive payments

    A State shall not expend an amount paid to the State under this 
section except to provide to children or families any service (including 
post-adoption services) that may be provided under part B of this 
subchapter or this part. Amounts expended by a State in accordance with 
the preceding sentence shall be disregarded in determining State 
expenditures for purposes of Federal matching payments under sections 
623, 629d, and 674 of this title.

(g) Definitions

    As used in this section:

                      (1) Foster child adoption

        The term ``foster child adoption'' means the final adoption of a 
    child who, at the time of adoptive placement, was in foster care 
    under the supervision of the State.

                     (2) Special needs adoption

        The term ``special needs adoption'' means the final adoption of 
    a child for whom an adoption assistance agreement is in effect under 
    section 673 of this title.

              (3) Base number of foster child adoptions

        The term ``base number of foster child adoptions for a State'' 
    means--
            (A) with respect to fiscal year 1998, the average number of 
        foster child adoptions in the State in fiscal years 1995, 1996, 
        and 1997; and
            (B) with respect to any subsequent fiscal year, the number 
        of foster child adoptions in the State in the fiscal year for 
        which the number is the greatest in the period that begins with 
        fiscal year 1997 and ends with the fiscal year preceding such 
        subsequent fiscal year.

             (4) Base number of special needs adoptions

        The term ``base number of special needs adoptions for a State'' 
    means--
            (A) with respect to fiscal year 1998, the average number of 
        special needs adoptions in the State in fiscal years 1995, 1996, 
        and 1997; and
            (B) with respect to any subsequent fiscal year, the number 
        of special needs adoptions in the State in the fiscal year for 
        which the number is the greatest in the period that begins with 
        fiscal year 1997 and ends with the fiscal year preceding such 
        subsequent fiscal year.

(h) Limitations on authorization of appropriations

                           (1) In general

        For grants under subsection (a) of this section, there are 
    authorized to be appropriated to the Secretary--
            (A) $20,000,000 for fiscal year 1999;
            (B) $43,000,000 for fiscal year 2000; and
            (C) $20,000,000 for each of fiscal years 2001 through 2003.

                          (2) Availability

        Amounts appropriated under paragraph (1) are authorized to 
    remain available until expended, but not after fiscal year 2003.

(i) Technical assistance

                           (1) In general

        The Secretary may, directly or through grants or contracts, 
    provide technical assistance to assist States and local communities 
    to reach their targets for increased numbers of adoptions and, to 
    the extent that adoption is not possible, alternative permanent 
    placements, for children in foster care.

    (2) Description of the character of the technical assistance

        The technical assistance provided under paragraph (1) may 
    support the goal of encouraging more adoptions out of the foster 
    care system, when adoptions promote the best interests of children, 
    and may include the following:
            (A) The development of best practice guidelines for 
        expediting termination of parental rights.
            (B) Models to encourage the use of concurrent planning.
            (C) The development of specialized units and expertise in 
        moving children toward adoption as a permanency goal.
            (D) The development of risk assessment tools to facilitate 
        early identification of the children who will be at risk of harm 
        if returned home.
            (E) Models to encourage the fast tracking of children who 
        have not attained 1 year of age into pre-adoptive placements.
            (F) Development of programs that place children into pre-
        adoptive families without waiting for termination of parental 
        rights.

         (3) Targeting of technical assistance to the courts

        Not less than 50 percent of any amount appropriated pursuant to 
    paragraph (4) shall be used to provide technical assistance to the 
    courts.

         (4) Limitations on authorization of appropriations

        To carry out this subsection, there are authorized to be 
    appropriated to the Secretary of Health and Human Services not to 
    exceed $10,000,000 for each of fiscal years 1998 through 2000.

(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--
            (A) the amount by which--
                (i) the amount that would have been payable to the State 
            under this section during fiscal year 1999 (on the basis of 
            adoptions in fiscal year 1998) in the absence of subsection 
            (d)(2) of this section if sufficient funds had been 
            available for the payment; exceeds
                (ii) the amount that, before December 14, 1999, was 
            payable to the State under this section during fiscal year 
            1999 (on such basis); or

            (B) the amount that bears the same ratio to the dollar 
        amount specified in paragraph (2) as the amount described by 
        subparagraph (A) for the State bears to the aggregate of the 
        amounts described by subparagraph (A) for all States that are 
        incentive-eligible States for fiscal year 1998.

                             (2) Funding

        $23,000,000 of the amounts appropriated under subsection (h)(1) 
    of this section for fiscal year 2000 may be used for grants under 
    paragraph (1) of this subsection.

(Aug. 14, 1935, ch. 531, title IV, Sec. 473A, as added Pub. L. 105-89, 
title II, Sec. 201(a), Nov. 19, 1997, 111 Stat. 2122; Pub. L. 105-200, 
title IV, Sec. 410(f), July 16, 1998, 112 Stat. 673; Pub. L. 106-169, 
title I, Sec. 131, Dec. 14, 1999, 113 Stat. 1830.)

                       References in Text

    Part B of this subchapter, referred to in subsec. (f), is classified 
to section 620 et seq. of this title.


                               Amendments

    1999--Subsec. (h)(1). Pub. L. 106-169, Sec. 131(b), amended heading 
and text of par. (1) generally. Prior to amendment, text read as 
follows: ``For grants under subsection (a) of this section, there are 
authorized to be appropriated to the Secretary $20,000,000 for each of 
fiscal years 1999 through 2003.''
    Subsec. (j). Pub. L. 106-169, Sec. 131(a), added subsec. (j).
    1998--Subsec. (c)(2)(B). Pub. L. 105-200 substituted ``April 30, 
1998'' for ``November 30, 1997'' and ``July 1, 1998'' for ``March 1, 
1998''.


                             Effective Date

    Section effective Nov. 19, 1997, except as otherwise provided, with 
delay permitted if State legislation is required, see section 501 of 
Pub. L. 105-89, set out as an Effective Date of 1997 Amendment note 
under section 622 of this title.
