
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 107-133 Section 201(a)-(e)]
[Document affected by Public Law 107-133 Section 201(a)-(e)]
[Document affected by Public Law 107-133 Section 202(a)]
[Document affected by Public Law 107-133 Section 202(b)]
[CITE: 42USC677]

 
                 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. 677. John H. Chafee Foster Care Independence Program


(a) Purpose

    The purpose of this section is to provide States with flexible 
funding that will enable programs to be designed and conducted--
        (1) to identify children who are likely to remain in foster care 
    until 18 years of age and to help these children make the transition 
    to self-sufficiency by providing services such as assistance in 
    obtaining a high school diploma, career exploration, vocational 
    training, job placement and retention, training in daily living 
    skills, training in budgeting and financial management skills, 
    substance abuse prevention, and preventive health activities 
    (including smoking avoidance, nutrition education, and pregnancy 
    prevention);
        (2) to help children who are likely to remain in foster care 
    until 18 years of age receive the education, training, and services 
    necessary to obtain employment;
        (3) to help children who are likely to remain in foster care 
    until 18 years of age prepare for and enter postsecondary training 
    and education institutions;
        (4) to provide personal and emotional support to children aging 
    out of foster care, through mentors and the promotion of 
    interactions with dedicated adults; and
        (5) to provide financial, housing, counseling, employment, 
    education, and other appropriate support and services to former 
    foster care recipients between 18 and 21 years of age to complement 
    their own efforts to achieve self-sufficiency and to assure that 
    program participants recognize and accept their personal 
    responsibility for preparing for and then making the transition from 
    adolescence to adulthood.

(b) Applications

                           (1) In general

        A State may apply for funds from its allotment under subsection 
    (c) of this section for a period of five consecutive fiscal years by 
    submitting to the Secretary, in writing, a plan that meets the 
    requirements of paragraph (2) and the certifications required by 
    paragraph (3) with respect to the plan.

                           (2) State plan

        A plan meets the requirements of this paragraph if the plan 
    specifies which State agency or agencies will administer, supervise, 
    or oversee the programs carried out under the plan, and describes 
    how the State intends to do the following:
            (A) Design and deliver programs to achieve the purposes of 
        this section.
            (B) Ensure that all political subdivisions in the State are 
        served by the program, though not necessarily in a uniform 
        manner.
            (C) Ensure that the programs serve children of various ages 
        and at various stages of achieving independence.
            (D) Involve the public and private sectors in helping 
        adolescents in foster care achieve independence.
            (E) Use objective criteria for determining eligibility for 
        benefits and services under the programs, and for ensuring fair 
        and equitable treatment of benefit recipients.
            (F) Cooperate in national evaluations of the effects of the 
        programs in achieving the purposes of this section.

                         (3) Certifications

        The certifications required by this paragraph with respect to a 
    plan are the following:
            (A) A certification by the chief executive officer of the 
        State that the State will provide assistance and services to 
        children who have left foster care because they have attained 18 
        years of age, and who have not attained 21 years of age.
            (B) A certification by the chief executive officer of the 
        State that not more than 30 percent of the amounts paid to the 
        State from its allotment under subsection (c) of this section 
        for a fiscal year will be expended for room or board for 
        children who have left foster care because they have attained 18 
        years of age, and who have not attained 21 years of age.
            (C) A certification by the chief executive officer of the 
        State that none of the amounts paid to the State from its 
        allotment under subsection (c) of this section will be expended 
        for room or board for any child who has not attained 18 years of 
        age.
            (D) A certification by the chief executive officer of the 
        State that the State will use training funds provided under the 
        program of Federal payments for foster care and adoption 
        assistance to provide training to help foster parents, adoptive 
        parents, workers in group homes, and case managers understand 
        and address the issues confronting adolescents preparing for 
        independent living, and will, to the extent possible, coordinate 
        such training with the independent living program conducted for 
        adolescents.
            (E) A certification by the chief executive officer of the 
        State that the State has consulted widely with public and 
        private organizations in developing the plan and that the State 
        has given all interested members of the public at least 30 days 
        to submit comments on the plan.
            (F) A certification by the chief executive officer of the 
        State that the State will make every effort to coordinate the 
        State programs receiving funds provided from an allotment made 
        to the State under subsection (c) of this section with other 
        Federal and State programs for youth (especially transitional 
        living youth projects funded under part B of title III of the 
        Juvenile Justice and Delinquency Prevention Act of 1974 [42 
        U.S.C. 5714-1 et seq.]), abstinence education programs, local 
        housing programs, programs for disabled youth (especially 
        sheltered workshops), and school-to-work programs offered by 
        high schools or local workforce agencies.
            (G) A certification by the chief executive officer of the 
        State that each Indian tribe in the State has been consulted 
        about the programs to be carried out under the plan; that there 
        have been efforts to coordinate the programs with such tribes; 
        and that benefits and services under the programs will be made 
        available to Indian children in the State on the same basis as 
        to other children in the State.
            (H) A certification by the chief executive officer of the 
        State that the State will ensure that adolescents participating 
        in the program under this section participate directly in 
        designing their own program activities that prepare them for 
        independent living and that the adolescents accept personal 
        responsibility for living up to their part of the program.
            (I) A certification by the chief executive officer of the 
        State that the State has established and will enforce standards 
        and procedures to prevent fraud and abuse in the programs 
        carried out under the plan.

                            (4) Approval

        The Secretary shall approve an application submitted by a State 
    pursuant to paragraph (1) for a period if--
            (A) the application is submitted on or before June 30 of the 
        calendar year in which such period begins; and
            (B) the Secretary finds that the application contains the 
        material required by paragraph (1).

     (5) Authority to implement certain amendments; notification

        A State with an application approved under paragraph (4) may 
    implement any amendment to the plan contained in the application if 
    the application, incorporating the amendment, would be approvable 
    under paragraph (4). Within 30 days after a State implements any 
    such amendment, the State shall notify the Secretary of the 
    amendment.

                          (6) Availability

        The State shall make available to the public any application 
    submitted by the State pursuant to paragraph (1), and a brief 
    summary of the plan contained in the application.

(c) Allotments to States

                           (1) In general

        From the amount specified in subsection (h) of this section that 
    remains after applying subsection (g)(2) of this section for a 
    fiscal year, the Secretary shall allot to each State with an 
    application approved under subsection (b) of this section for the 
    fiscal year the amount which bears the same ratio to such remaining 
    amount as the number of children in foster care under a program of 
    the State in the most recent fiscal year for which such information 
    is available bears to the total number of children in foster care in 
    all States for such most recent fiscal year, as adjusted in 
    accordance with paragraph (2).

                     (2) Hold harmless provision

        (A) In general

            The Secretary shall allot to each State whose allotment for 
        a fiscal year under paragraph (1) is less than the greater of 
        $500,000 or the amount payable to the State under this section 
        for fiscal year 1998, an additional amount equal to the 
        difference between such allotment and such greater amount.

        (B) Ratable reduction of certain allotments

            In the case of a State not described in subparagraph (A) of 
        this paragraph for a fiscal year, the Secretary shall reduce the 
        amount allotted to the State for the fiscal year under paragraph 
        (1) by the amount that bears the same ratio to the sum of the 
        differences determined under subparagraph (A) of this paragraph 
        for the fiscal year as the excess of the amount so allotted over 
        the greater of $500,000 or the amount payable to the State under 
        this section for fiscal year 1998 bears to the sum of such 
        excess amounts determined for all such States.

(d) Use of funds

                           (1) In general

        A State to which an amount is paid from its allotment under 
    subsection (c) of this section may use the amount in any manner that 
    is reasonably calculated to accomplish the purposes of this section.

       (2) No supplantation of other funds available for same 
                              general purposes

        The amounts paid to a State from its allotment under subsection 
    (c) of this section shall be used to supplement and not supplant any 
    other funds which are available for the same general purposes in the 
    State.

                 (3) Two-year availability of funds

        Payments made to a State under this section for a fiscal year 
    shall be expended by the State in the fiscal year or in the 
    succeeding fiscal year.

(e) Penalties

             (1) Use of grant in violation of this part

        If the Secretary is made aware, by an audit conducted under 
    chapter 75 of title 31 or by any other means, that a program 
    receiving funds from an allotment made to a State under subsection 
    (c) of this section has been operated in a manner that is 
    inconsistent with, or not disclosed in the State application 
    approved under subsection (b) of this section, the Secretary shall 
    assess a penalty against the State in an amount equal to not less 
    than 1 percent and not more than 5 percent of the amount of the 
    allotment.

        (2) Failure to comply with data reporting requirement

        The Secretary shall assess a penalty against a State that fails 
    during a fiscal year to comply with an information collection plan 
    implemented under subsection (f) of this section in an amount equal 
    to not less than 1 percent and not more than 5 percent of the amount 
    allotted to the State for the fiscal year.

           (3) Penalties based on degree of noncompliance

        The Secretary shall assess penalties under this subsection based 
    on the degree of noncompliance.

(f) Data collection and performance measurement

                           (1) In general

        The Secretary, in consultation with State and local public 
    officials responsible for administering independent living and other 
    child welfare programs, child welfare advocates, Members of 
    Congress, youth service providers, and researchers, shall--
            (A) develop outcome measures (including measures of 
        educational attainment, high school diploma, employment, 
        avoidance of dependency, homelessness, nonmarital childbirth, 
        incarceration, and high-risk behaviors) that can be used to 
        assess the performance of States in operating independent living 
        programs;
            (B) identify data elements needed to track--
                (i) the number and characteristics of children receiving 
            services under this section;
                (ii) the type and quantity of services being provided; 
            and
                (iii) State performance on the outcome measures; and

            (C) develop and implement a plan to collect the needed 
        information beginning with the second fiscal year beginning 
        after December 14, 1999.

                     (2) Report to the Congress

        Within 12 months after December 14, 1999, the Secretary shall 
    submit to the Committee on Ways and Means of the House of 
    Representatives and the Committee on Finance of the Senate a report 
    detailing the plans and timetable for collecting from the States the 
    information described in paragraph (1) and a proposal to impose 
    penalties consistent with paragraph (e)(2) on States that do not 
    report data.

(g) Evaluations

                           (1) In general

        The Secretary shall conduct evaluations of such State programs 
    funded under this section as the Secretary deems to be innovative or 
    of potential national significance. The evaluation of any such 
    program shall include information on the effects of the program on 
    education, employment, and personal development. To the maximum 
    extent practicable, the evaluations shall be based on rigorous 
    scientific standards including random assignment to treatment and 
    control groups. The Secretary is encouraged to work directly with 
    State and local governments to design methods for conducting the 
    evaluations, directly or by grant, contract, or cooperative 
    agreement.

                     (2) Funding of evaluations

        The Secretary shall reserve 1.5 percent of the amount specified 
    in subsection (h) of this section for a fiscal year to carry out, 
    during the fiscal year, evaluation, technical assistance, 
    performance measurement, and data collection activities related to 
    this section, directly or through grants, contracts, or cooperative 
    agreements with appropriate entities.

(h) Limitations on authorization of appropriations

    To carry out this section and for payments to States under section 
674(a)(4) of this title, there are authorized to be appropriated to the 
Secretary $140,000,000 for each fiscal year.

(Aug. 14, 1935, ch. 531, title IV, Sec. 477, as added Pub. L. 99-272, 
title XII, Sec. 12307(a), Apr. 7, 1986, 100 Stat. 294; amended Pub. L. 
100-647, title VIII, Sec. 8104(a)-(d), (f), Nov. 10, 1988, 102 Stat. 
3796, 3797; Pub. L. 101-239, title VIII, Sec. 8002(a), (b), Dec. 19, 
1989, 103 Stat. 2452; Pub. L. 101-508, title V, Sec. 5073(a), Nov. 5, 
1990, 104 Stat. 1388-233; Pub. L. 103-66, title XIII, Sec. 13714(a), 
Aug. 10, 1993, 107 Stat. 657; Pub. L. 105-89, title III, Sec. 304, Nov. 
19, 1997, 111 Stat. 2130; Pub. L. 106-169, title I, Sec. 101(b), Dec. 
14, 1999, 113 Stat. 1824.)

                       References in Text

    The Juvenile Justice and Delinquency Prevention Act of 1974, 
referred to in subsec. (b)(3)(F), is Pub. L. 93-415, Sept. 7, 1974, 88 
Stat. 1109, as amended. Part B of title III of the Act is classified 
generally to Part B (Sec. 5714-1 et seq.) of subchapter III of chapter 
72 of this title. For complete classification of this Act to the Code, 
see Short Title note under section 5601 of this title and Tables.

                          Codification

    December 14, 1999, referred to in subsec. (f), was in the original 
``the date of the enactment of this section'' which was translated as 
meaning the date of enactment of Pub. L. 106-119, which amended this 
section generally, to reflect the probable intent of Congress.


                               Amendments

    1999--Pub. L. 106-169 amended section generally, substituting 
present provisions for provisions which had authorized payments to 
States and localities for establishment of programs designed to assist 
children who have attained age 16 in making transition from foster care 
to independent living, and set forth provisions relating to 
administration of programs, assurances, types of programs, amounts of 
entitlement, and provisions requiring annual report and promulgation of 
regulations.
    1997--Subsec. (a)(2)(A). Pub. L. 105-89 inserted before comma at end 
``(including children with respect to whom such payments are no longer 
being made because the child has accumulated assets, not to exceed 
$5,000, which are otherwise regarded as resources for purposes of 
determining eligibility for benefits under this part)''.
    1993--Subsec. (a)(1). Pub. L. 103-66, Sec. 13714(a)(1), struck out 
at end ``Such payments shall be made only for the fiscal years 1987 
through 1992.''
    Subsec. (c). Pub. L. 103-66, Sec. 13714(a)(2), substituted ``any 
succeeding fiscal year'' for ``any of the fiscal years 1988 through 
1992''.
    Subsec. (e)(1)(A). Pub. L. 103-66, Sec. 13714(a)(3), substituted 
``fiscal year 1987 and any succeeding fiscal year'' for ``each of the 
fiscal years 1987 through 1992''.
    Subsec. (e)(1)(B). Pub. L. 103-66, Sec. 13714(a)(4), substituted 
``fiscal year 1991 and any succeeding fiscal year'' for ``fiscal years 
1991 and 1992''.
    Subsec. (e)(1)(C)(ii)(II). Pub. L. 103-66, Sec. 13714(a)(5), 
substituted ``any succeeding fiscal year'' for ``fiscal year 1992''.
    1990--Subsec. (a)(2)(C). Pub. L. 101-508 inserted ``who has not 
attained age 21'' after ``also include any child'' and struck out before 
semicolon ``, but such child may not be so included after the end of the 
6-month period beginning on the date of discontinuance of such payments 
or care''.
    1989--Subsec. (a)(1). Pub. L. 101-239, Sec. 8002(a)(1), substituted 
``through 1992'' for ``, 1988, and 1989''.
    Subsec. (c). Pub. L. 101-239, Sec. 8002(a)(2), substituted ``any of 
the fiscal years 1988 through 1992'' for ``the fiscal year 1988 or 
1989''.
    Subsec. (e)(1). Pub. L. 101-239, Sec. 8002(b)(1), (2), (4), (5), 
designated existing provisions as subpar. (A), substituted ``The basic 
amount'' for ``The amount'' and ``the basic ceiling for such fiscal 
year'' for ``$45,000,000'', and added subpars. (B) and (C).
    Pub. L. 101-239, Sec. 8002(b)(3), which directed amendment of 
subpar. (A) by substituting ``1989, 1990, 1991, and 1992'' for ``and 
1989'' could not be executed because the words ``and 1989'' did not 
appear after execution of amendment by Pub. L. 101-239, Sec. 8002(a)(1), 
see below.
    Pub. L. 101-239, Sec. 8002(a)(1), substituted ``through 1992'' for 
``, 1988, and 1989''.
    1988--Subsec. (a). Pub. L. 100-647, Sec. 8104(a)(1), substituted 
``1987, 1988, and 1989'' for ``1987 and 1988''.
    Subsec. (a)(1). Pub. L. 100-647, Sec. 8104(c), designated existing 
provisions as par. (1), substituted ``children described in paragraph 
(2) who have attained age 16'' for ``children, with respect to whom 
foster care maintenance payments are being made by the State under this 
part and who have attained age 16,'' and added par. (2).
    Subsec. (a)(2)(C). Pub. L. 100-647, Sec. 8104(d), added subpar. (C).
    Subsec. (c). Pub. L. 100-647, Sec. 8104(a)(2), substituted ``for the 
fiscal year 1988 or 1989, such description and assurances must be 
submitted prior to February 1 of such fiscal year'' for ``for fiscal 
year 1988, such description and assurances must be submitted prior to 
January 1, 1988''.
    Subsec. (e)(1). Pub. L. 100-647, Sec. 8104(a)(1), substituted 
``1987, 1988, and 1989'' for ``1987 and 1988''.
    Subsec. (e)(3). Pub. L. 100-647, Sec. 8104(f), inserted at end 
``Amounts payable under this section may not be used for the provision 
of room or board.''
    Subsec. (f). Pub. L. 100-647, Sec. 8104(b), inserted at end 
``Notwithstanding paragraph (3), payments made to a State under this 
section for the fiscal year 1987 and unobligated may be expended by such 
State in the fiscal year 1989.''
    Subsec. (g)(1). Pub. L. 100-647, Sec. 8104(a)(3), (4), substituted 
``Not later than the first January 1 following the end of each fiscal 
year, each State shall submit to the Secretary a report on the programs 
carried out during such fiscal year'' for ``Not later than March 1, 
1988, each State shall submit to the Secretary a report on the programs 
carried out''.
    Subsec. (g)(2). Pub. L. 100-647, Sec. 8104(a)(5), (6), substituted:
    ``(A) Not later than July 1, 1988, the Secretary shall submit an 
interim report on the activities carried out under this section.
    ``(B) Not later than March 1, 1989,''
for ``Not later than July 1, 1988,'' and substituted ``fiscal years 1987 
and 1988'' for ``fiscal year 1987'' in subpar. (B).


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-89 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 a note under 
section 622 of this title.


                    Effective Date of 1993 Amendment

    Section 13714(b) of Pub. L. 103-66 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply to activities 
engaged in, on, or after October 1, 1992.''


                    Effective Date of 1990 Amendment

    Section 5073(b) of Pub. L. 101-508 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply to payments 
made under part E of title IV of the Social Security Act [part E of this 
subchapter] for fiscal years beginning in or after fiscal year 1991.''


                    Effective Date of 1989 Amendment

    Amendment by Pub. L. 101-239 effective Oct. 1, 1989, see section 
8002(e) of Pub. L. 101-239, set out as a note under section 674 of this 
title.


                    Effective Date of 1988 Amendment

    Section 8104(g) of Pub. L. 100-647 provided that:
    ``(1) The amendments made by subsections (a), (b), and (e) [amending 
this section and section 675 of this title] shall take effect on October 
1, 1988.
    ``(2) The amendments made by subsections (c), (d), and (f) [amending 
this section] shall take effect on the date of the enactment of this Act 
[Nov. 10, 1988].''


                               Regulations

    Pub. L. 106-169, title I, Sec. 101(d), Dec. 14, 1999, 113 Stat. 
1828, provided that: ``Not later than 12 months after the date of the 
enactment of this Act [Dec. 14, 1999], the Secretary of Health and Human 
Services shall issue such regulations as may be necessary to carry out 
the amendments made by this section [amending this section and section 
674 of this title].''


                                Findings

    Pub. L. 106-169, title I, Sec. 101(a), Dec. 14, 1999, 113 Stat. 
1823, provided that: ``The Congress finds the following:
        ``(1) States are required to make reasonable efforts to find 
    adoptive families for all children, including older children, for 
    whom reunification with their biological family is not in the best 
    interests of the child. However, some older children will continue 
    to live in foster care. These children should be enrolled in an 
    Independent Living program designed and conducted by State and local 
    government to help prepare them for employment, postsecondary 
    education, and successful management of adult responsibilities.
        ``(2) Older children who continue to be in foster care as 
    adolescents may become eligible for Independent Living programs. 
    These Independent Living programs are not an alternative to adoption 
    for these children. Enrollment in Independent Living programs can 
    occur concurrent with continued efforts to locate and achieve 
    placement in adoptive families for older children in foster care.
        ``(3) About 20,000 adolescents leave the Nation's foster care 
    system each year because they have reached 18 years of age and are 
    expected to support themselves.
        ``(4) Congress has received extensive information that 
    adolescents leaving foster care have significant difficulty making a 
    successful transition to adulthood; this information shows that 
    children aging out of foster care show high rates of homelessness, 
    non-marital childbearing, poverty, and delinquent or criminal 
    behavior; they are also frequently the target of crime and physical 
    assaults.
        ``(5) The Nation's State and local governments, with financial 
    support from the Federal Government, should offer an extensive 
    program of education, training, employment, and financial support 
    for young adults leaving foster care, with participation in such 
    program beginning several years before high school graduation and 
    continuing, as needed, until the young adults emancipated from 
    foster care establish independence or reach 21 years of age.''


          Study and Report Evaluating Effectiveness of Programs

    Section 8002(d) of Pub. L. 101-239 provided that:
    ``(1) Study.--The Secretary of Health and Human Services shall study 
the programs authorized under section 477 of the Social Security Act 
[this section] for the purposes of evaluating the effectiveness of the 
programs. The study shall include a comparison of outcomes of children 
who participated in the programs and a comparable group of children who 
did not participate in the programs.
    ``(2) Report.--Upon completion of the study, the Secretary shall 
issue a report to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives.''

                  Section Referred to in Other Sections

    This section is referred to in section 674 of this title.
