Appendix A_Child Welfare Act P

94 STAT. 500

PUBLIC LAW 96-272-JUNE

Public Law 96-272
96th Congress
June 17, 1980
[H.R. 34341

Adoption
Assistance and
Child Welfare
Act of 1980.
42 USC 1305
note.

17, 1980

An Act

To establish a pro am of adoption assistance, to strengthen the program of foster
care assistance g r needy and dependent children, to improve the child welfare,
social services, and aid to families with dependent children programs, and for
other purposes.

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

SECTION
1. This Act, with the following table of contents, may be
cited as the "Adoption Assistance and Child Welfare Act of 1980".
TABLE OF CONTENTS
See. 1.Short title.
TITLE I-FOSTER CARE AND ADOPTION ASSISTANCE
Sec. 101. Federal payments for foster care and adoption assistance.

Sec. 102. Federal payments for dependent children voluntarily placed in foster care.
Sec. 103.Child-welfareservices.

TITLE II-SOCIAL SERVICES
Sec. 201.Determination of amount allocated to States.

Sec. 202. Extension of 100-percentum Federal matching for child day care expenditures.
Sec. 203. Limitation on funds for training.
Sec. 204. Use of restricted private funds for training programs.
Sec. 205. Emergency shelter.
Sec. 206.Multiyear plan; choice of fiscal year.
Sec. 207. Social services funding for temtories.
Sec. 208. Permanent extension of provisions relating to child day care services and
WIN tax credit.
Sec. 209. Permanent extension of provisions relating to services for alcoholics and
drug addicts.

TITLE rn-omm SOC~ALSECURITYACT PROVISIONS
Sec. 301. Permanent extension of provisions relating to child support enforcement.
Sec. 302. Incentives to report earnings under AFDC programs.
Sec. 303.Prorating of shelter allowance.
Sec. 304.Services for disabled children.
Sec. 305. Public assistance payments to territorial jurisdictions.
Sec. 306. Period within which certain claims must be filed.
Sec. 307. Incentives for States to collect child support obligations.
Sec. 308. Exchange of information on terminated or suspended providers.
Sec. 309. Postponement of impition of certain penalties relating to child support
requirements.
Sec. 310. Contineg mecaid eligibility for certain recipients of Veterans' Administrahon penmons.

PUBLIC LAW 96-272-JUNE

17,1980

94 STAT. 501

TITLE I-FOSTER CARE AND ADOPTION ASSISTANCE
FEDERAL PAYMENTS FOR FOSTER CARE AND ADOPTION ASSISTANCE

SEC.101. (ax11 Title IV of the Social Security Act is amended by
adding at the end thereof the following new part:

"SEC. 470. For the purpose of enabling each State to provide, in
appropriate cases, foster care and adoption assistance for children
who otherwise would be eligible for assistance under the State's plan
approved under part A (or, in the case of adoption assistance, would
be eligible for benefits under title XVI), there are authorized to be
appropriated for each fiscal year (commencing with the fiscal year
which begins October 1,1980)such sums as may be necessary to carry
out the provisions of this part. The sums made available under this
section shall be used for making payments to States which have
submitted, and had approved by the Secretary, State plans under this
part.

42 USC 670.

42 USC 601.
42 USC 1381.

"SEC.471. (a)In order for a State to be eligible for payments under 42 USC 671.
this part, it shall have a plan approved by the Secretary which"(1) provides for foster care maintenance payments in accordance with section 472 and for adoption assistance payments in
accordance with section 473;
"(2) provides that the State agency responsible for administering the program authorized by part B of this title shall adminis- Post, p. 516.
ter, or supervise the administration of, the program authorized
by this part;
"(3) provides that the plan shall be in effect in all political
subdivisions of the State, and, if administered by them, be
mandatory upon them;
"(4) provides that the State shall assure that the programs a t
the local level assisted under this part w i l l be coordinated with
the programs at the State or local level assisted under parts A
42 USC 601, ost,
and B of this title, under title XX of this Act, and under any other p.
516,42U&
appropriate provision of Federal law;
1397.
"(5) provides that the State will, in the administration of its
programs under this part, use such methods relating to the
establishment and maintenance of personnel standards on a
merit basis as are found by the Secretary to be necessary for the
proper and efficient operation of the programs, except that the
Secretary shall exercise no authority with respect to the
selection, tenure of office, or compensation of any individual
e m ~ l o ~in
e daccordance with such methods:
'76)provides that the State agency refeked to in paragraph (2) State agency.
(hereinafter in this part referred to as the 'State agency') will
make such reports, in such form and containing such information as the Secretaw mav from time to time reauire. and com~lv
with such provisionlj as the Secretary may fromtime to time-iGd

94 STAT.502

Information
disclosure
restriction.
42 USC 601, ost,
p. 516,42 U ~ C
630, 651.
42 USC 301, 701,
1201, 1351, 1381,
1396, 1397.
42 USC 1381.

Post, p. 516.

42 USC 1397b.

Standards,
review.

Hearing.

Audit.

Goals.

PUBLIC LAW 96-272-JUNE

17, 1980

necessary to assure the correctness and verification of such
reports;
"(7) provides that the State agency will monitor and conduct
periodic evaluations of activities carried out under this part,
"(8) provides safeguards which.restrict the use of or disclosure
of information concerning indmduals assisted under the State
plan to purposes directly connected with (A) the administration
of the plan of the State approved under this part, the plan or
program of the State under part A, B, C, or D of this title or under
title I, V, X, XIV,XVI (as in effect in Puerto Rico, Guam, and the
Virgin Islands), XIX, or XX,or the supplemental security income
program established by title XVI, (B) any investigation, prosecution, or criminal or civil proceeding, conducted in connection
with the administration of any such plan or program, (C) the
administration of any other Federal or federally assisted program which provides assistance, in cash or in kind, or services,
directly to individuals on the basis of need, and (Dlany audit or
similar activity conducted in connection with the administration
of any such plan or program by any governmental agency which
is authorized by law to conduct such audit or activity; and the
safeguards so provided shall prohibit disclosure, to any committee or legislative body (other than an agency referred to in clause
(Dlwith respect to an activity referred to in such clause), of any
information which identifies by name or address any such
applicant or recipient; except that nothing contained herein
shall preclude a State from providing standards which restrict
disclosures to purposes more limited than those specified herein,
or which, in the case of adoptions, prevent disclosure entirely;
"(9) provides that where any agency of the State has reason to
believe that the home or institution in which a child resides
whose care is being paid for in whole or in part with funds
provided under this part or part B of this title is unsuitable for
the child because of the neglect, abuse, or exploitation of such
child, it shall bring such condition to the attention of the
appropriate court or law enforcement agency;
"(10) provides that the standards referred to in section
2003(d)(l)(F)shall be applied by the State to any foster family
home or child care institution receiving funds under this part or
part B of this title;
"(11)provides for periodic review of the standards referred to
in the preceding paragraph and amounts paid as foster care
maintenance payments and adoption assistance payments to
assure their continuing appropriateness;
"(12) provides for granting a n opportunity for a fair hearing
before the State agency to any individual whose claim for
benefits available pursuant to this part is denied or is not acted
upon with reasonable promptness;
"(13) provides that the State shall arrange for a periodic and
independently conducted audit of the programs assisted under
this part and part B of this title, which shall be conducted no less
frequently than once every three years;
"(14) provides (A) specific goals (which shall be established by
State law on or before October 1, 1982) for each fiscal year
(commencing with the fscal year which begins on October 1,
1983) as to the maximum number of children (in absolute
numbers or as a percentage of all children in foster care with
respect to whom assistance under the plan is provided during

PUBLIC LAW 96-272-JUNE 17, 1980

94 STAT. 503

such year) who, at any time during such year, will remain in
foster care after having been in such care for a period in excess of
twenty-four months, and (B) a description of the steps which will
be taken by the State to achieve such goals;
"(15) effective October 1, 1983, provides that, in each case,
reasonable efforts will be made (A) prior to the placement of a
child in foster care, to prevent or eliminate the need for removal
of the child from his home, and (B) to make it possible for the
child to return to his home; and
"(16) provides for the development of a case plan (as defined in
section 475(1)) for each child receiving foster care maintenance
payments under the State plan and provides for a case review
system which meets the requirements described in section
475(5)(B)with respect to each such child.
"(b) The Secretary shall approve any plan which complies with the
provisions of subsection (a)of this section. However, in any case in
which the Secretary finds, after reasonable notice and opportunity
for a hearing, that a State plan which has been approved by the
Secretary no longer complies with the provisions of subsection (a), or
that in the administration of the plan there is a substantial failure to
comply with the provisions of the plan, the Secretary shall notify the
State that further payments will not be made to the State under this
part, or that such payments will be made to the State but reduced by
a n amount which the Secretary determines appropriate, until the
Secretary is satisfied that there is no longer any such failure to
comply, and until he is so satisfied he shall make no further
payments to the State, or shall reduce such payments by the amount
specified in his notification to the State.

Case ~ 1 %and
~

~

Plan approval.

"FOSTER CARE MAINTENANCE PAYMENTS PROGRAM

"SEC. 472. (a)Each State with a plan approved under this part shall
make foster care maintenance payments (as defined in section 475(4))
under this part with respect to a child who would meet the requirements of section 406(a) or of section 407 but for his removal from the
home of a relative (specifiedin section 406(a)), if"(1)the removal from the home was the result of a judicial
determination to the effect that continuation therein would be
contrary to the welfare of such child and (effective October 1,
1983) that reasonable efforts of the type described in section
471(a)(15)have been made;
"(2) such child's placement and care are the responsibility of
(A) the State agency administering the State plan approved
under section 471, or (B) any other public agency with whom the
State agency administering or supervising the administration of
the State plan approved under section 471 has made an agreement which is still in effect;
"(3) such child has been placed in a foster family home or childcare institution as a result of a determination referred to in
paragraph (1);and
"(4) such child"(A) received aid under the State plan approved under
section 402 in or for the month in which court proceedings
leading to the removal of such child from the home were
initiated, or
"(B)(i)would have received such aid in or for such month if
application had been made therefor, or (ii) had been living

42 USC 672, postJ
p. 513.
42 USC

606,607.

42 USC 602.

~

e

94 STAT. 504
42 USC 606.

"Foster family
home."

"Childcare,,
institution.

42 USC 1396,
1397.
42 USC 606.
42 USC 601.

42 USC 673.
Post, p. 514.

42 USC 606, 607

42 USC 1381.

42 USC 602.

PUBLIC LAW 96-272-JUNE

17, 1980

with a relative specified in section 406(a) within six months
prior to the month in which such proceedings were initiated,
and would have received such aid in or for such month if in
such month he had been living with such a relative and
application therefor had been made.
"(b) Foster care maintenance payments may be made under this
part only on behalf of a child described in subsection (a) of this section
who is"(1) in the foster family home of an individual, whether the
payments therefor are made to such individual or to a public or
nonprofit private child-placement or child-care agency, or
"(2) in a child-care institution, whether the payments therefor
are made to such institution or to a public or nonprofit private
child-placement or child-care agency, which payments shall be
limited so as to include in such payments only those items which
are included in the term 'foster care maintenance payments' (as
defined in section 475(4)).
"(c) For the purposes of this part, (1) the term 'foster family home'
means a foster family home for children which is licensed by the
State in which it is situated or has been approved, by the agency of
such State having responsibility for licensing homes of this type, as
meeting the standards established for such licensing; and (2) the term
'child-care institution' means a nonprofit private childcare institution, or a public childcare institution which accommodates no more
than twenty-five children, which is licensed by the State in which it is
situated or has been approved, by the agency of such State responsible for licensing or approval of institutions of this type, as meeting
the standards established for such licensing, but the term shall not
include detention facilities, forestry camps, training schools, or any
other facility operated primarily for the detention of children who
are determined to be delinquent.
"(dl For purposes of titles XIX and XX,any child with respect to
whom foster care maintenance payments are made under this section
shall be deemed to be a dependent child as defined in section 406 and
shall be deemed to be a recipient of aid to families with dependent
children under part A of this title.

"SEC. 473. (a)(l) Each State with a plan approved under this part
shall, directly through the State agency or through another public or
nonprofit private agency, make adoption assistance payments pursuant to an adoption assistance agreement in amounts determined
under paragraph (2) of this subsection to parents who, after the
effective date of this section, adopt a child who'YAW a t the time adoption proceedings were initiated, met the
requirements of section 406(a) or section 407 or would have met
such requirements except for his removal from the home of a
relative (specified in section 406(a)) as a result of a judicial
determination to the effect that continuation therein would be
contrary to the welfare of such child, or
"(ii) meets all of the requirements of title XVI with respect to
eligibility for supplemental security income benefits,
''(BNi) received aid under the State plan approved under
section 402 in or for the month in which court proceedings
leading to the removal of ouch child from the home were
initiated, or

PUBLIC LAW 96-272-JUNE

17, 1980

94 STAT. 505

"(ii)(I) would have received such aid in or for such month if
application had been made therefor, or (11) had been living with a
relative specified in section 406(a) within six months prior to the 42 USC 606.
month in which such proceedings were initiated, and would have
received such aid in or for such month if in such month he had
been living with such a relative and application therefor had
been made, or
"(iii) is a child described in subparagraph (A)(ii),and
"(C) has been determined by the State, pursuant to subsection
(c) of this section, to be a child with special needs.
"(2) The amount of the adoption assistance payments shall be Amount of
determined through agreement between the adoptive parents and the payment.
State or local agency administering the program under this section,
which shall take into consideration the circumstances of the adopting
parents and the needs of the child being adopted, and may be
readjusted periodically, with the concurrence of the adopting parents
(which may be specified in the adoption assistance agreement),
depending upon changes in such circumstances. However, in no case
may the amount of the adoption assistance payment exceed the foster
care maintenance payment which would have been paid during the
period if the child with respect to whom the adoption assistance
payment is made had been in a foster family home.
"(3) Notwithstanding the preceding paragraph, (A) no payment Restrictions.
may be made to parents with respect to any child who has attained
the age of eighteen (or, where the State determines that the child has
a mental or physical handicap which warrants the continuation of
assistance, the age of twenty-one), and (B)no payment may be made
to parents with respect to any child if the State determines that the
parents are no longer legally responsible for the support of the child
or if the State determines that the child is no longer receiving any
support from such parents. Parents who have been receiving adoption assistance payments under this section shall keep the State or
local agency administering the program under this section informed
of circumstances which would, pursuant to this subsection, make
them ineligible for such assistance payments, or eligible for assistance payments in a different amount.
"(4) For purposes of this part, individuals with whom a child (who
has been determined by the State, pursuant to subsection (c), to be a
child with special needs) is placed for adoption, pursuant to a n
interlocutory decree, shall be eligible for adoption assistance payments under this subsection, during the period of the placement, on
the same terms and subject to the same conditions as if such
individuals had adopted such child.
"(b) For purposes of titles XIX and XX,any child with respect to 42 USC 1396,
whom adoption assistance payments are made under this section 1397.
shall be deemed to be a dependent child as defined in section 406 and 42 USC 606.
shall be deemed to be a recipient of aid to families with dependent
42 USC 601.
children under part A of this title.
"(c) For purposes of this section, a child shall not be considered a Child with
special needs.
child with special needs unless"(1) the State has determined that the child cannot or should
not be returned to the home of his parents; and
"(2) the State had first determined (A) that there exists with
respect to the child a specific factor or condition (such as his
ethnic background, age, or membership in a minority or sibling
group, or the presence of factors such as medical conditions or
physical, mental, or emotional handicaps) because of which it is

PUBLIC LAW 96-272-JUNE 17,1980

94 STAT. 506

reasonable to conclude that such child cannot be placed with
adoptive parents without providing adoption assistance, and (B)
that, except where it would be against the best interests of the
child because of such f a c t o ~as the existence of significant
emotional ties with prospective adoptive parents while in the
care of such parents as a foster child, a reasonable, but unsuccessful, effort has been made to place the cMd with appropriate
adoptive parents without providing adoption assistance under
this section.
42 USC 674.

42 USC 1396d.

42 USG 1308.
Post, pp. 526,529,
530.

42 USC 620.

"SEC.474. (a) For each quarter beginning & e ~September 30,1980,
each State which has a plan approved under t b part (subject to the
limitations imposed by subsection (b)) shall be entitled to a payment
equal to the sum of"(1)an amount equal to the Federal medical assistance percentage (as defined in section 1905(b) of this Act) of the total
amount expended during such quarter as foster care maintenance payments under section 472 for children in foster family
homes or childcare institutions; plus
"(2) an amount equal to the Federal medical assistance percentage (as defined in section 1905(b) of this Act) of the total
amount expended during such quarter as adoption assistance
pa-nnents under section 473 pursuant to adoption assistance
agreements; plus
"(3) an amount equal to the sum of the following proportions
of the total amounts expended during such quarter as found
necessary by the Secretary for the proper and efficient administration of the State plan"(A) 75 per centum of so much of such expenditures as are
for the training (including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled
in such institutions) of personnel employed or preparing for
employment by the State agency or by the local agency
administering the plan in the political subdwision, and
"(B) one-half of the remainder of such expenditures.
"(b)(l) Notwithstanding the provisions of subsections (a)(l) and
(a)(3), the aggregate of the sums payable thereunder to any State
(other than a State subject to limitation under section 1108(a))with
respect to expenditures relating to foster care, for the calendar
quarters in any of the fmcal years 1981 through 1984 in which the
conditions set forth in paragraph (2) are met, shall not exceed the
State's allotment for such year.
"(2)(A~The.limitationin paragraph (1)shall apply'(11 w t h respect to fmcal year 1981, only if the amount
appropriated under section 420 for such fmal year is equal to or
greater than $163,550,000;
''(ii) with respect to f ~ c a year
l
1982, only if the amount
appropriated under section 420 for such fscal year is equal to or
greater than $220,000,000;
"(iil) pith respect to fisca.l year 1983, only if the amount
a ropnated under section 420 for such fiscal year is equal to
$!~6.000.000:
- ,- - - ,- - - ,and
--

-

"(iv) with respect to fscal year 1984 nl if the amount
a ropriated under section 420 for such ~ c d y e a is
r equal to
$#6,000,000.

PUBLIC LAW 96-272-JUNE

17, 1980

94 STAT. 507

"(B)The limitations set forth in paragraph (1) with respect to the
fiscal years 1982 through 1984 shall apply only if the required
appropriation is made in advance in an appropriation Act (asauthorized under section 420(b))for the fiscal year preceding the fiscal year 42 USC 620.
to which the limitation would apply.
"(3) For purposes of this subsection, a State's allotment for any
fiscal year shall be the greater of"(A)the amount determined under paragraph (4);
"(33) an amount which bears the same ratio to $100,000,000 as
the under age eighteen population of such State bears to the
under age eighteen population of the fifty States and the District
of Columbia; or
"(0at the option of the State, an amount determined under
paragraph (51, but only in the case of a State which meets the
requirements of such paragraph (5).
"(4) For purposes of paragraph (3XA), a State's allotment shall be State allotment
determined as follows:
determination
"(A) The allotment for any State for fiscal year 1980shall be an
amount equal to such State's base amount (as determined under
subparagraph (c))increased by 21.2 percent.
"(B) The allotment for any State for each of the fiscal years
1981 through 1984 shall be an amount equal to such State's
allotment for the preceding fiscal year, increased or decreased by
a percentage equal to twice the percentage increase or decrease
(asthe case may be) (but not to exceed an increase or decrease of
10 percent) in the Consumer Price Index prepared by the Department of Labor, and used in determining costsf-living adjustments under section 215(i) of this Act, for the second quarter of 42 USC 415.
the preceding fiscal year as compared to such index for the
second quarter of the second preceding fiscal year. For purposes
of this subparagraph the Consumer Price Index for any quarter
shall be the arithmetical mean of such index for the three
months in such quarter.
"(C)The base amount shall be equal to the amount of the
Federal funds payable to such State for fiscal year 1978 under
section 403 on account of expenditures for aid with respect to 42 USC 603.
which Federal financial participation is authorized in payments
pursuant to section 408 (including administrative expenditures postj P. 512.
attributable to the provision of such aid as determined by the
Secretary) and for those States which in fiscal year 1978 did not
make foster care maintenance payments under section 408 on
behalf of children otherwise eligible for such payment, solely
because their foster care was provided by related persons, shall
be equal to the total amount of Federal funds the State would
have been entitled to be paid under section 403 on account of
expenditures pursuant to section 408 for that fiscal year if such
payments had been made. In the event that there is a dispute
between any State and the Secretary as to the amount of such
expenditures for such fiscal ear, then, until the beginning of the
fiscal year immediately fodwing the fiscal year in which the
dispute is finally resolved, the base amount shall be deemed to be
the amount of Federal funds which would have been payable
under section 403 if the amount of such expenditures were equal
to the amount thereof claimed by the State.
"(5XA) For purposes of aragraph (3x0, a State's allotment for any
fiscal year ending after Lptember 30, 1980, and before October 1,
1984, may, at the option of the State (and if the State meets the

94 STAT. 508

post, p. 512.

PUBLIC LAW 96-272-JUNE

17, 1980

requirements of subparagraphs (S) and (C)), be determined by application of the provisions of paragraph (4) with the following modifications:
"(i)The base amount for purposes of determining an allotment
for any such fiscal year shall be equal to the base amount
determined under paragraph (4)(C) increased by a percentage
equal to the percentage by which the average monthly number of
children in such State receiving aid with respect to which
Federal fmancial participation is authorized in payments pursuant to section 408, or receiving foster care maintenance payments with respect to which Federal financial participation is
authorized under this part, for such fiscal year exceeds the
average monthly number of such children for fiscal year 1978.
"(ii) For purposes of clause 61, the percentage determined
under such clause shall not exceed 33.1 percent in the case of
fiscal year 1981,46.4 percent in the case of fwcal year 1982,61.1
percent in the case of fucal year 1983, or 77.2 percent in the case
of fwcal year 1984.
"(B) No State may exercise the option to have its allotment amount
determined under the provisions of this paragraph unless, for fiscal
year 1978, the average monthly number of children in such State
receiving aid for which Federal financial participation is authorized
in payments pursuant to section 408 as a percentage of the under age
eighteen population of such State, was less than the average such
percentage for the fify States and the District of Columbia.
"(C) No State may exercise the option to have its allotment
determined under this paragraph for any fscal year other than fiscal
year 1981 after the first fiscal year (after fscal year 1978) with
respect to which the average monthly number of children in such
State receiving aid for which Federal financial participation is
authorized in payments pursuant to section 408, or receiving foster
care maintenance payments for which Federal financial participation is authorized under this part, as a percentage of the under age
eighteen population of such State, was equal to or greater than the
average such percentage for the fifty States and the District of
Columbia for the fscal year 1978. Any allotment determined under
this paragraph for a State which opted to have its allotment so
determined under this paragraph for the fscal year prior to the first
fiscal year for which its option may not be exercised by reason of the
preceding sentence shall be considered to be such State's allotment
for such prior fiscal year for purposes of determining allotments for
subsequent fmcal years under paragraph (4).
"@) In determining the number of children receiving aid for which
Federal financial participation is authorized in payments under
section 408 or under this part, for any fmcal year, with respect to any
State and with respect to the national average for purposes of
subparagraphs (B)and (C),there shall be included those children with
respect to whom foster care maintenance payments were not made
under section 408 or this part (though they were otherwise eligible for
such payments) solely because their foster care was provided by
related persons. In the event that there is a dispute between any
State and the Secretary as to the number of such children (with
respect to whom foster care maintenance payments were not made)
for any fiscal year, then until the beginning of the fiscal year
immediately following the fiscal year in which the dispute is finally
resolved, determinations under subparagraphs (B) and (C) shall be

PUBLIC LAW 96-272-JUNE

17,1980

94 STAT.509

made on the basis of the number of such children claimed by the
State.
"(El The Secretary shall promulgate a n interim allotment amount Interim and
for purposes of this paragraph for each fiscal year for each State final allotment
exercising its option to have its allotment determined under this amounts.
paragraph, based on the most recent satisfactory data available, not
later than six months after the beginning of such fiscal year. The
amount of such allotment shall be adjusted, and the final allotment
amount shall be promulgated, based on the most recent satisfactory
data available, not later than nine months after the end of such fiscal
year.
"(6) Except in the case of a State which loses the option of having its
allotment determined under paragraph (5)by reason of the provisions
of paragraph (5)(C),and subject to the provisions of such paragraph
(5)(C),the amount of any allotment as determined in accordance with
subparagraph (A), (B), or (C) of paragraph (3) for any fiscal year for
any State shall be determined in accordance with the provisions of
such subparagraph, without regard to the amount of such State's
allotment for any prior fiscal year as determined in accordance with
another such subparagraph.
"(c)(l) Except as provided in paragraphs (3) and (4), for any of the state
fiscal years 1981 through 1984 during which the limitation under reimbursements.
subsection (b)(l)is in effect, sums available to a State from its
allotment under subsection (b)for carrying out this part, which the
State does not claim as reimbursement for expenditures in such year
pursuant to subsection (a) of this section, may be claimed by the State
as reimbursement for expenditures in such year pursuant to part B of
this title, in addition to sums available pursuant to section 420 for Posh P. 516.
carrying out part B.
"(2) Except as provided in paragraphs (3) and (41, for any of the
fiscal years 1981 through 1984 during which the limitation under
subsection (b)(l)is not in effect, a State may claim as reimbursement
for expenditures for such year pursuant to part B of this title, in
addition to amounts claimed under section 420, a n amount equal to
the amount by which the State's allotment amount for such fmcal
year (as determined under subsection (bI(3)) exceeds the amount
claimed by such State for such f i c a l year as reimbursement for
expenses relating to foster care under subsection (a); except that the
total amount claimed by such State for such fiscal year under this
paragraph, when added to the amount that such State receives for
such fiscal year under section 420, may not exceed the amount that
would have been payable to such State under section 420 for such
fiscal year if the relvant amount described in subsection (b)(2)(A)had
been appropriated for such fiscal year.
"(3) The provisions of paragraphs (1)and (2) shall not apply for any
fiscal year with respect to any State which, with respect to such fiscal
year, exercised its option to have its allotment amount determined
under subsection (b)(5).
"(4)(A)No State may claim a n amount under the provisions of this
subsection as reimbursement for expenditures for any fiscal year
pursuant to part B of this title to the extent that such amount, plus
the amount claimed by such State for such fiscal year under section
420, exceeds the amount which would be allotted to such State under
part B if the amount appropriated under section 420 were
$141,000,000, unless such State has met the requirements set forth in
section 42Xa).
Post, p. 519.

94 STAT.510
42 USC 620.

Post, p. 516.
Post, p. 519.

PUBLIC LAW 96-272-JUNE

17, 1980

"(B) If, for each of any two consecutive fiscal years, there is
appropriated under section 420 a sum equal to $266,000,000, no State
may claim any amount under the provisions of this subsection as
reimbursement for expenditures for any succeeding fiscal year pursuant to part B of this title unless such State has met the requirements
set forth in section 427W
"(C)If, for each of any two fiscal years during which the limitation
under subsection (b)(l)is not in effect, the total amount claimed by a
State as reimbursement for expenditures pursuant to part B under
this subsection and under section 420 equals the amount which would
be allotted to such State for such fiscal year under part B if the
amount appropriated under section 420 were $266,000,000,such State
may not claim any amount under the provisions of paragraph (2) as
reimbursement for expenditures for any succeeding fiscal year pursuant to part B of this title unless such State has met the requirements
set forth in section 427(bX
"DEFINITIONS

42 USC 675.
Ante, p. 501, post,
p. 516.

"SEC.475. AS used in this part or part B of this title:
"(1) The term 'case plan' means a written document which
includes a t least the following: A description of the type of home
or, institution in which a child is to be placed, including a
discussion of the appropriateness of the placement and how the
agency which is responsible for the child plans to carry out the
judicial determination made with respect to the child in accordance with section 472(a)(l);and a plan for assuring that the child
receives proper care and that services are provided to the
parents, child, and foster parents in order to improve the conditions in the parents' home, facilitate return of the child to his
own home or the ermanent placement of the child, and address
the needs of the c ild while in foster care, including a discussion
of the appropriateness of the services that have been provided to
the child under the plan.
"(2) The term 'parents' means biological or adoptive parents or
legal guardians, as determined by applicable State law.
"(3)The term 'adoption assistance agreement' means a written
agreement, binding on the parties to the agreement, between the
State agency, other relevant agencies, and the prospective adop
tive parents of a minor child which a t a minimum (A) specifies
the amounts of the adoption assistance payments and any
additional services and assistance which are to be provided as
part of such agreement, and (B) stipulates that the agreement
shall remain in effect regardless of the State of which the
adoptive parents are residents at any given time. The agreement
shall contain provisions for the protection (under an interstate
compact approved by the Secretary or otherwise) of the interests
of the child in cases where the adoptive parents and child move to
another State while the agreement is effective.
"(4) The term 'foster care maintenance payments' means
payments to cover the cost of (and the cost of providing) food,
clothing, shelter, daily supervision, school supplies, a child's
personal incidentals, liability insurance with respect to a child,
and reasonable travel to the child's home for visitation. In the
case of institutional care, such term shall include the reasonable
costs of administration and operation of such institution as are
necessarily required to provide the items described in the preceding sentence.

1

PUBLIC LAW 96-272-JUNE

17, 1980

94 STAT. 511

"(5) The term 'case review system' means a procedure for
assuring that"(A) each child has a case plan designed to achieve
placement in the least restrictive (most family like) setting
available and in close proximity to the parents' home,
consistent with the best interest and special needs of the
child,
"(B)the status of each child is reviewed periodically but no
less frequently than once every six months by either a court
or by administrative review (as defined in paragraph (6)) in
order to determine the continuing necessity for and appropriateness of the placement, the extent of compliance with
the case plan, and the extent of progress which has been
made toward alleviating or mitigating the causes necessitating placement in foster care, and to project a likely date by
which the child may be returned to the home or placed for
adoption or legal guardianship, and
"(C)with respect to each such child, procedural safeguards
will be applied, among other things, to assure each child in
foster care under the supervision of the State of a dispositional hearing to be held, in a family or juvenile court or
another court (including a tribal court) of competent jurisdiction, or by a n administrative body appointed or approved
by the court, no later than eighteen months after the
original placement (and periodically thereafter during the
continuation of foster care), which hearing shall determine
the future status of the child (including, but not limited to,
whether the child should be returned to the parent, should
be continued in foster care for a specified period, should be
placed for adoption, or should Cbecause of the child's special
needs or circumstances) be continued in foster care on a
permanent or long-term basis); and procedural safeguards
shall also be applied with respect to parental rights pertaining to the removal of the child from the home of his parents,
to a change in the child's placement, and to any determination affecting visitation privileges of parents.
"(6) The term 'administrative review' means a review open to
the participation of the parents of the child, conducted by a panel
of appropriate persons a t least one of whom is not responsible for
the case management of, or the delivery of services to, either the
child or the parents who are the subject of the review.
"SEC.476. (a)The Secretary may provide technical assistance to the 42 USC 676.
States to assist them to develop the programs authorized under this
part and shall periodically (1) evaluate the programs authorized
under this part and part B of this title and (2)collect and publish data Ante, p. 50l,post,
pertaining to the incidence and characteristics of foster care and p. 516.
adoptions in this country.
"Cb) Each State shall submit statistical reports as the Secretary Statistical
may require with respect to children for whom payments are made EEz;!,
under this part containing information with respect to such children
including legal status, demographic characteristics, location, and
length of any stay in foster care.".

94 STAT. 512
Repeal.
42 USC 608.
42 USC 608 note.

Ante, p. 501.

Ante, p. 506.
42 USC 601.

Supra.

Post, p. 516.

42 USC 602.

Ante, p. 501.
Effective date.
42 USC 602 note.
Supra.
Effective date.
42 USC 675 note.
Ante, p. 510.
Interstate
compacts.
42 USC 673a.

Ante, p. 504.

PUBLIC LAW 96-272-JUNE

17,1980

(2)(A)Effective with respect to expenditures made after September
30,1980, section 408 of the Social Security Act is, subject to subparagraph (B),repealed.
(B)The repeal made by subparagraph (A) shall not be applicable in
the case of any State for any quarter prior to the first quarter, which
begins after September 30, 1980, in which such State has in effect a
State plan approved under part E of the Social Security Act, or (if
earlier) such repeal shall be effective with respect to expenditures
made after September 30, 1982. During any period with respect to
which the repeal made by subparagraph (Allis not applicable in the
case of a State and during which a limitation is in effect under section
474(b)(1)of the Social Security Act, the aggregate of the sums payable
to the State, under the State's plan approved under part A of title IV
of such Act, with respect to expenditures (including administrative
expenditures as determined by the Secretary of Health, Education,
and Welfare) authorized or incurred by reason of the provisions of
section 408 of such Act shall not exceed the amount of the allotment
which such State would have had for such period under section 47401)
if such State had had a n approved plan under part E of such title IV.
Any amount which would have been available to such State from its
allotment for any period with respect which such repeal is not
applicable in the case of a State (whether or not a limitation is in
effect under section 474(b)(1)of such Act) under section 474(b) of the
Social Security Act (if such State had had a n approved plan under
part E of title IV of such Act) which the State does not claim as
reimbursement with respect to expenditures (including administrative expenditures as determined by the Secretary) authorized or
incurred by reason of the provisions of section 408 of such Act, may be
claimed by the State as reimbursement for expenditures in such
period pursuant to part B of title IV of such Act in the same manner
as amounts available to States from allotments under section 474b)
of such Act, and not claimed as reimbursement under part E of title
IV of such Act, are authorized to be claimed under section 474(c) of
such Act.
(3)(A)Section 402(a)(20)of such Act is amended to read as follows:
"(20) provide that the State has in effect a State plan for foster
care and adoption assistance approved under part E of this
title;".
(B) The amendment made by subparagraph (A) shall become
effective with respect to any State a t the same time as the repeal of
section 408 becomes effective with respect to such State under the
provisions of paragraph (2)of this subsection.
(4)(A)Clause (B) of the first sentence of section 475(3) of the Social
Security Act (as added by subsection (a) of this section) shall be
effective with respect to adoption assistance agreements entered into
on or after October 1,1983.
(B) The Secretary of Health, Education, and Welfare shall take all
possible steps to encourage and assist the various States to enter into
interstate compacts (which are hereby approved by the Congress)
under which the interests of any adopted child with respect to whom
a n adoption assistance agreement has been entered into by a State
under section 473 of the Social Security Act will be adequately
protected, on a reasonable and equitable basis which is approved by
the Secretary, if and when the child and his or her adoptive parent (or
parents) move to another State.

PUBLIC LAW 96-272-JUNE

17,1980

(5)(A)Subject to the repeal provided under paragraph (21, the last
paragraph of section 408 of the Social Security Act is amended to read
as follows:
"For the purposes of this section, the term 'foster family home'
means a foster family home for children which is licensed by the
State in which it is situated or has been approved, by the agency of
such State having responsibility for licensing homes of this type, as
meeting the standards established for such licensing; and the term
'child-care institution' means a nonprofit private childcare institution, or a public childcare institution which accommodates no more
than twenty-five children, which is licensed by the State in which it is
situated or has been approved, by the agency of such State responsible for licensbg or approval of institutions of this type, as meeting
the standards established for such licensing; but the term shall not
include detention facilities, forestry camps, training schools, or any
other facility operated primarily for the detention of children who
are determined to be delinquent. '.
(B) The amendment made by subparagraph (A) shall be effective
with respect to expenditures made on or &r the date of the
enactment of this Act.
(b)(l) The Secretary of Health, Education, and Welfare shall conduct a study of programs of foster care and adoption assistance
established under part IV-E of the Social Security Act (as added by
subsection (a)of this section), and shall submit to the Congress, not
later than October 1, 1983, a full and complete report thereon,
together with his recommendations as to (A)whether such part IV-E
should be continued, and if so, (B) the changes (if any) which should be
made in such part IV-E.
(2) Such report shall include, but not be limited to, the following:
(A) a determination as to (i) the extent of reduction that has
occurred in the duration of foster care under such programs, (ii)
the extent to which such programs of adoption assistance have
resulted in an increase in the adoption of children who otherwise
would have remained in foster care under State plans approved
under title IV-A or IV-E of the Social Security Act, and (iii) the
extent to which the availability of Federal funding for adoption
assistance under title IV-E of such Act has resulted in States'
initiating or expanding programs for adoption assistance, and
(B) specific legislative recommendations for ways to bring
about further reduction in the duration of foster care for
children.

94 STAT. 513
Ante, p. 512.

"Foster family
home."

"Child-care
institution."

Effective date.
42 USC 608 note.
Report to
Congress.
42 USC 670 note.
Ante, p. 501.

42 USC 601, ante,
p. 501.

FEDERAL PAYMENTS FOR DEPENDENT CHILDREN VOLUNTARILY PLACED
IN FOSTER CARE

SEC.102. (a)(l) Effective with respect to expenditures made after
September 30, 1980, and before October 1,1983, section 472(a) of the
Social Security Act (as added by section 101 of this Act) is amended(A) by inserting "occurred pursuant to a voluntary placement
agreement entered into by the child's parent or Iegal guardian,
or" after "removal from the home" in paragraph (1);
(B)by s t r e g out "a determination" in paragraph (3) and
inserting in lieu thereof "the voluntary placement agreement or
judicial determination";
(C) by inserting "such agreement was entered into or" after
"the month in which" in paragraph (4)(A);and

Ante, p. 503.

94 STAT. 514
Ante, p. 503.

Post, P. 519.

Ante, p. 5 0 1 ,3osC
~
p. 516.
"Voluntary
placement."

"Voluntary
placement
agreement."

Ante, p. 504.
Ante, p. 506, 42
USC 603.

Ante, p. 510.

PUBLIC LAW 96-272-JUNE

17,1980

(D) by inserting "such agreement was entered into or" after
"the month in which" in paragraph (4)(B)(ii).
(2) Section 472 of such Act (as so added) is further amended by
redesignating subsection (d) as subsection (h), and by inserting after
subsection (c) the following new subsections:
"(dl Notwithstanding any other provision of this title, Federal
payments may be made under this part with respect to amounts
expended by any State as foster care maintenance payments under
this section, in the case of children removed from their homes
pursuant to voluntary placement agreements as described in subsection (a), only if (at the time such amounts were expended) the State
has fulfilled all of the requirements of section 427(b).
'Ye) No Federal payment may be made under this part with respect
to amounts expended by any State as foster care maintenance
payments under this section, in the case of any child who was
removed from his or her home pursuant to a voluntary placement
agreement as described in subsection (a)and has remained in voluntary placement for a period in excess of 180 days, unless there has
been a judicial determination by a court of competent jurisdiction
(within t h e first 180 days of such placement) to the effect that such
placement is in the best interests of the child.
''(0For the purposes of this part and part B of this title, (1)the term
'voluntary placement' means an out-of-home placement of a minor,
by or with participation of a State agency, after the parents or
guardians of the minor have requested the assistance of the agency
and signed a voluntary placement agreement; and (2) the term
'voluntary placement agreement' means a written agreement, binding on the parties to the agreement, between the State agency, any
other agency acting on its behalf, and the parents or guardians of a
minor child which specifies, a t a minimum, the legal status of the
child and the rights and obligations of the parents or guardians, the
child, and the agency while the child is in placement.
"(g)In any case where"(1)the placement of a minor child in foster care occurred
pursuant to a voluntary placement agreement entered into by
the parents or guardians of such child as provided in subsection
(a), and
"(2) such parents or guardians request (in such manner and
form as the Secretary may prescribe) that the child be returned
to their home or to the home of a relative,
the voluntary placement agreement shall be deemed to be revoked
unless the State agency opposes such request and obtains a judicial
determination, by a court of competent jurisdiction, that the return of
the child to such home would be contrary to the child's best
interests.".
(3) Section 473(a)(1)of such Act (as so added) is amended(A) by inserting ", either pursuant to a voluntary placement
agreement with respect to which Federal payments are provided
under section 474 (or 403) or" immediately before "as a result of a
judicial determination" in subparagraph (A)(i);
(B) by inserting "such agreement was entered into or" after
"the month in which" in subparagraph (B)(i);and
(C) by inserting "such agreement was entered into or" after
"the month in which" in subparagraph (B)(ii).
(4) Section 475W of such Act (as so added) is amended by inserting
"voluntary placement agreement entered into or" before "judicial
determination made".

PUBLIC LAW 96-272-JUNE

17,1980

(bX1)Effective with respect to expenditures made after September
30,1979 (but subject to the repeal provided under section 101(a)(2)(A)
and (B)), section 408(a) of the Social Security Act is amended(A) by inserting "pursuant to a voluntary placement agreement entered into by the child's parent or legal guardian, or"
after "(specified in such section 406(a))" in clause (1);
(B) by striking out "such determination" in clause (3) and
inserting in lieu thereof "such voluntary placement agreement
or judicial determination";
(C) by inserting "such agreement was entered into or" after
"the month in which" in clause (4XA); and
(Dl by inserting "such agreement was entered into or" after
"the month in which" in clause (4)0(ii).
(2)Section 408 of such Act is further amended by adding at the end
thereof the following new paragraph:
"For the purposes of this section, the provisions of subsections (dl,
(e),(0,and (g)of section 472 shall apply.".
(c) The amendments made by subsections (a) and (b) shall be
effective only with respect to expenditures made after September 30,
1979, and before October 1,1983; and from and after October 1,1983,
the provisions of law amended by such subsections shall read as they
would if this section had not been enaded.
(d)(l)For purposes of section 472 of the Social Security Act, a child
who was voluntarily removed Erom the home of a relative and who
had a judicial determination prior to October 1, 1978, to the effect
that continuation therein would be contrary to the welfare of such
child, shall be deemed to have been so removed as a result of such
judicial determination if, and from the date that, a case plan and a
review meeting the requirements of section 471(aM16) of such Act
have been made with respect to such child and such child is determined to be in need of foster care as a result of such review. In the
case of any child described in the preceding sentence, for purposes of
section 472(aX4) of such Act, the date of the voluntary removal shall
be deemed to be the date on which court proceedings are initiated
which led to such removal.
(2) For purposes of section 408 of the Social Security Act (but
subject to the repeal provided under section lOl(aX2) (A) and (B)),in
any case where a child was voluntarily removed from the home of a
relative prior to October 1, 1979, and a judicial determination was
made (prior to October 1,1978)to the effect that continuation in such
home would have been contrary to the child's welfare(A) such child shall be deemed to have been so removed as a
result of a judicial determination to the effect that continuation
in such home would be contrary to the welfare of such child, and
(B) Federal financial participation under the applicable State
plan approved under section 402 of the Social Security Act for
quarters beginning prior to October 1,1979, shall not be denied
with respect to aid hmished under such plan to or on behalf of
such child.
For purposes of subsection (ax41 of such section 408, the date of such
child's voluntary removal shall be deemed to be the date on which
court proceedings were initiated which led to such removal.
(el The Secretary of Health, Education, and Welfare, within three
months after the close of each fiscal year with respect to which the
amendments made by this section are in effect, shall submit to the
Congress a full and complete repart on the number of children placed
in foster care pursuant to voluntary placement agreements under

94 STAT. 515

Ante, p. 512.

42 USC 606.

Ante, p. 503.

42 USC 672 note.

Ante, p. 501.

42 USC 608 note.
Ante, p. 512.

42 USC 602.

Ante, p. 512.

Report to
Congress.
42 USC 672 note.

94 STAT. 516
Ante, PP. 512,

513.

PUBLIC LAW 96-272-JUNE

17, 1980

sections 408 and 472 of the Social Security Act and on the reasons for
such placements together with a description of the extent t o which
such placements have contributed to the achievement of the objectives of this title, including such recommendations as he may deem
appropriate with respect to the continuation (in such section 472) of
authority to make Federal payments for dependent children voluntarily placed in foster care.
CHILD WELFARE SERVICES

SEC.103. (a) Part B of title IV of the Social Security Act is amended
(subject to subsection (c) of this section) by striking out all that
precedes section 426 and inserting in lieu thereof the following:

42 USC 620.

"SEC. 420. (a) For the purpose of enabling the United States,
through the Secretary, to cooperate with State public welfare agencies in establishing, extending, and strengthening child welfare
services, there is authorized to be appropriated for each fiscal year
the sum of $266,000,000.
"(b)Funds appropriated for any fiscal year pursuant to the authorization contained in subsection (a) shall be included in the appropriation Act (or supplemental appropriation Act) for the fiscal year
preceding the fiscal year for which such funds a r e available for
obligation. In order to effect a transition to this method of timing
appropriation action, the preceding sentence, shall apply notwithstanding the fact that its initial application will result in the
enactment in the same year (whether in the same appropriation Act
or otherwise) of two separate appropriations, one for the then current
fiscal year and one for the succeeding fiscal year.

42 uSC 621.

"SEC. 421. (a) The sum appropriated pursuant to section 420 for
each fiscal year shall be allotted by the Secretary for use by cooperating State public welfare agencies which have plans developed jointly
by the State agency and the Secretary as follows: He shall first allot
$70,000 to each State, and shall then allot to each State an amount
which bears the same ratio to the remainder of such sum a s the
product of (1) the population of the State under the age of twenty-one
and (2) the allotment percentage of the State (as determined under
this section) bears to the sum of the corresponding products of all the
States.
"(b) The 'allotment percentage' for any State shall be 100 per
centum less the State percentage; and the State percentage shall be
the percentage which bears the same ratio to 50 per centum as the
per capita income of such State bears to the per capita income of the
United States; except that (1) the allotment percentage shall in no
case be less than 30 per centum or more than 70 per centum, and (2)
the allotment percentage shall be 70 per centum in the case of Puerto
Rico, the Virgin Islands, and Guam.
"(c) The allotment percentage for each State shall be promulgated
by the Secretary between October 1 and November 30 of each evennumbered year, on the basis of the average per capita income of each
State and of the United States for the three most recent calendar

"Allotment
percentage."

Promulgation by
Secretary.

PUBLIC LAW 96-272-JUNE

17, 1980

94 STAT. 517

years for which satisfactory data are available from the Department

of Commerce. Such promulgation shall be conclusive for each of the
two fiscal years in the period beginning October 1 next succeeding
such promulgation.
"(dl For purposes of this section, the term 'United States' means
the fAy States and the District of Columbia.

"United States."

"STATE PLANS FOB CHILD WELFARE SERVICES

"SEC.422. (a) In order to be eligible for payment under this part, a

State must have a plan for child welfare services which has been

developed jointly by the Secretary and the State agency designated
pursuant to subsection Wl), and which meets the requirements of
subsection (b).
"(b) Each plan for child welfare services under this part shall"(1) provide that (A) the individual or agency designated
pursuant to section 2003(dXlXC) to administer or supervise the
administration of the State's services program will administer or
supervise the administration of the plan (except as otherwise
provided in section 103(d) of the Adoption Assistance and Child
Welfare Act of 19801, and (B)to the extent that child welfare
services are furnished by the staff of the State agency or local
agency administering the plan, a single organizational unit in
such State or local agency, as the case may be, will be responsible
for furnishing such child welfare services;
"(2) provide for coordination between the services provided for
children under the plan and the services and assistance provided
under title XX,under the State plan approved under part A of
this title, under the State plan approved under part E of this
title, and under other State programs having a relationship to
the program under this part, with a view to provision of welfare
and related services which will best promote the welfare of such
children and their families;
"(3) provide that the standards and requirements imposed with
respect to child day care under title XX shall apply with respect
to day care services under this part, except insofar as eligibility
for such services is involved,
"(4) provide for the training and effective use of paid paraprofessional staff, with particular em hasis on the full-time or parttime employment of persons o?low income, as community
service aides, in the administration of the plan, and for the use of
nonpaid or partially paid volunteers in providing services and in
assisting any advisory committees established by the State
agpy;
(5) contain a description of the services to be provided and
speclfy the geographic areas where such services will be available;
"(6)contain a description of the steps which the State will take
to provide child welfare services and to make progress in"(A) covering additional political subdivisions,
"(B) reaching additional children in need of services, and
"(C)expanding and strengthening the range of existing
services and developingnew types of services,
along with a description of the State's child welfare services staff
development and training plans;
"(7) provide, in the development of services for children, for
utilization of the facilities and experience of voluntary agencies

42 USC 622.
Post, p. 521.

42 USC 1397b

Ante, p. 516.

42 USC 1397.
42 USC 601.
Ante, p. 501.

Paraprofessionals
and volunteers.

Voluntary
agencies,
utilization.

94 STAT. 518

PUBLIC LAW 96-272--JUNE 17, 1980
in accordance with State and local programs and arrangements,

as authorized by the State; and

"(8) provide that the agency administering or supervising the
administration of the plan will furnish such reports, containing
such information, and participate in such evaluations, a s the
Secretary may require.

42 USC 623.

Computation
method.

"SEC.423. (a) From the sums appropriated therefor and the allotment under this part, subject to the conditions set forth in this section
and in section 427, the Secretary shall from time to time pay to each
State that has a plan developed in accordance with section 422 a n
amount equal to 75 per centum of the total sum expended under the
plan (including the cost of administration of the plan) in meeting the
costs of State, district, county, or other local child welfare services.
"(b) The method of computing and making payments under this
section shall be as follows:
"(1) The Secretary shall, prior to the beginning of each period
for which a payment is to be made, estimate the amount to be
paid to the State for such period under the provisions of this
section.
"(2) From the allotment available therefor, the Secretary shall
pay the amount so estimated, reduced or increased, as the case
may be, by any sum (not previously adjusted under this section)
by which he finds that his estimate of the amount to be paid the
State for any prior period under this section was greater or less
than the amount which should have been paid to the State for
such prior period under this section.
"(c)(l) No payment may be made to a State under this part, for any
fiscal year beginning after September 30, 1979, with respect to State
expenditures made for (A) child day care necessary solely because of
the employment, or training to prepare for employment, of a parent
or other relative with whom the child involved is living, (B) foster
care maintenance payments, and (C) adoption assistance payments,
to the extent that the Federal payment with respect to those
expenditures would exceed the total amount of the Federal payment
under this part for fiscal year 1979.
"(2) Expenditures made by a State for any fiscal year which begins
after September 30,1979, for foster care maintenance payments shall
be treated for purposes of making Federal payments under this part
with respect to expenditures for child welfare services, as if such
foster care maintenance payments constituted child welfare services
of a type to which the limitation imposed by paragraph (1) does not
apply; except that the amount payable to the State with respect to
expenditures made for other child welfare services and for foster care
maintenance payments during any such year shall not exceed 100 per
centum of the amount of the expenditures made for child welfare
services for which payment may be made under the limitation
imposed by paragraph (1) as in effect without regard to this
paragraph.
"(d) No payment may be made to a State under this part in excess of
the payment made under this part for fiscal year 1979, for any fiscal
year beginning after September 30, 1979, if for the latter fiscal year
the total of the State's expenditures for child welfare services under
this part (excluding expenditures for activities specified in subsection

PUBLIC LAW 96-272-JUNE

17, 1980

94 STAT. 519

(c)(l))is less than the total of the State's expenditures under this part
(excluding expenditures for such activities) for fiscal year 1979.

"SEC.424. The amount of any allotment to a State under section 42 USC 624.
421 for any fiscal year which the State certifies to the Secretary will
not be required for carrying out the State plan developed as provided
in section 422 shall be available for reallotment from time to time, on
such dates a s the Secretary may fix, to other States which the
Secretary determines (1)have need in carrying out their State plans
so developed for sums in excess of those previously allotted to them
under section 421 and (2) will be able to use such excess amounts
during such fiscal year. Such reallotments shall be made on the basis
of the State plans so developed, after taking into consideration the
population under the age of twenty-one, and the per capita income of
each such State as compared with the population under the age of
twenty-one, and the per capita income of all such States with respect
to which such a determination by the Secretary has been made. Any
amount so reallotted to a State shall be deemed part of its allotment
under section 421.
"DEFINITIONS

"SEC. 425. (a)(l)For purposes of this title, the term 'child welfare 42 USC 625.
services' means public social services which a r e directed toward the
accomplishment of the following purposes: (A)protecting and promoting the welfare of all children, including handicapped, homeless,
dependent, or neglected children; (B) preventing or remedying, or
assisting in the solution of problems which may result in, the neglect,
abuse, exploitation, or delinquency of children; (C) preventing the
unnecessary separation of children from their families by identifying
family problems, assisting families in resolving their problems, and
preventing breakup of the family where the prevention of child
removal is desirable and possible; (Dl restoring to their families
children who have been removed, by the provision of services to the
child and the families; (El placing children in suitable adoptive
homes, in cases where restoration to the biological family is not
possible or appropriate; and (F) assuring adequate care of children
away from their homes, in cases where the child cannot be returned
home or cannot be placed for adoption.
"(2)Funds expended by a State for any calendar quarter to comply
with the statistical report required by section 476(b), and funds
expended with respect to nonrecurring costs of adoption proceedings
in the case of children placed for adoption with respect to whom
assistance is provided under a State plan for adoption assistance
approved under part E of this title, shall be deemed to have been Ante, P. 501.
expended for child welfare services.
"(b) For other definitions relating to this part and to part E of this
Ante, p. 510.
title, see section 475 of this Act.".
(b)Part B of title IV of such Act is amended by adding a t the end
thereof the following new sections:
'(FOSTER CARE PROTECTION REQUIRED FOR ADDITIONAL FEDERAL
PAYMENTS

"SEC. 427. (a) If, for any fiscal year after fiscal year 1979, there is
appropriated ucder section 420 a sum in excess of $141,000,000, a
State shall not be eligible for payment from its allotment in a n

42 USC

627.

94 STAT. 520

PUBLIC LAW 96-272-JUNE 17, 1980
amount greater than the amount for which it would be eligible if such
appropriation were equal to $141,000,000, unless such State"(1)has conducted an inventory of all children who have been
in foster care under the responsibility of the State for a period of
six months preceding the inventory, and determined the appropriateness of, and necessity for, the current foster placement,
whether the child can be or should be returned to his parents or
should be freed for adoption, and the services necessary to
facilitate either the return of the child or the placement of the
child for adoption or legal guardianship; and
"(2) has implemented and is operating to the satisfaction of the
Secretary"(A) a statewide information system from which the
status, demographic characteristics, location, and goals for
the placement of every child in foster care or who has been in
such care within the preceding twelve months can readily be
determined;
"(B) a case review system (as defined in section 475(5))for
each child receiving foster care under the supervision of the
State; and
"(C) a service program designed to help children, where
appropriate, return to families from which they have been
removed or be placed for adoption or legal guardianship.
"(b) If, for each of any two consecutive fiscal years after the fiscal
year 1979, there is appropriated under section 420 a sum equal to
$266,000,000, each State's allotment amount for any fiscal year after
such two consecutive fiscal years shall be reduced to an amount equal
to its allotment amount for the fiscal year 1979, unless such State"(1) has completed a n inventory of the type specified in
subsection (a)(l);
"(2) has implemented and is operating the program and systems specified in subsection (aI(2);and
"(3) has implemented a preplacement preventive service program designed to help children remain with their families.
"(c) Any amounts expended by a State for the purpose of complying
with the requirements of subsection (a) or (b)shall be conclusively
presumed to have been expended for child welfare services.

42 USC 628.

"Tribal
organization."

"Indian tribe."

"SEC. 428. (a) The Secretary may, in appropriate cases (as determined by the Secretary) make payments under this part directly to
an Indian tribal organization within any State which has a plan for
child welfare services approved under this part. Such payments shall
be made in such manner and in such amounts as the Secretary
determines to be appropriate.
"(b)Amounts paid under subsection (a) shall be deemed to be a part
of the allotment (as determined under section 421) for the State in
which such Indian tribal organization is located.
"(c) For purposes of this section"(1) the term 'tribal organization' means the recognized governing body of any Indian tribe, or any legally established
organization of Indians which is controlled, sanctioned, or chartered by such governing body; and
"(2)the term 'Indian tribe' means any tribe, band, nation, or
other organized group or community of Indians (including any
Alaska Native village or regional or village corporation a s

PUBLIC LAW 96-272-JUNE

17,1980

defined in or established pursuant to the Alaska Native Claims
Settlement Act (Public Law 92-203; 85 Stat. 688)) which (A) is
recognized as eligible for the special programs and services
provided by the United States to Indians because of their status
as Indians,or (B)is located on, or in proximity to, a Federal or
State reservation or rancheria.".
(c) In the case of Guam,Puerto Rico, and the Virgin Islands, and
the Commonwealth of the Northern Mariana Islands, section
422(b)(1)of such Act (as otherwise amended by subsection (a) of this
section) shall be deemed to read as follows:
"(1)provide that (A) the State agency designated pursuant to
section 402(aX3) to administer or supervise the administration of
the plan of the State approved under part A of this title will
administer or supervise the administration of such plan for child
welfare services, and (B) to the extent that child welfare services
are furnished by the staff of the State agency or local agency
administering such plan for child welfare services, the organizational unit in such State or local agency established pursuant to
section 402(aX15) will be responsible for fhrnishing such child
welfare services;".
(dl Notwithstanding section 422(bX1) of the Social Security Act (as
amended by subsection (a)of this section) if on December 1,1974, the
agency of a State administering its plan for child welfare services
under part B of title IV of that Act was not the agency designated
pursuant to section 402(aX3) of that Act, such section 422(bX1) shall
not apply with respect to such agency, but only so long as such agency
is not the agency designated under section 2003(dXlXC) of that Act;
and if on December 1,1974,the local agency administeringthe plan of
a State under part B of title IV of that Act in a subdivision of the
State was not the local agency in such subdivision administering the
plan of such State under part A of that title, such section 422(bX1)
shall not apply with respect to such local agency, but only so long as
such local agency is not the local agency administering the program
of the State for the provision of services under title XX of that Act.
(el Section 2002(aX8) of such Act is amended by striking out "or
422" and inserting in lieu thereof "or 423".
(fX1)Notwithstanding any other provision of law, funds which are
appropriated for fiscal year 1980 pursuant to section 420 of the Social
Security Act, and for which States are eligible for payment under
part B of title IV of that Act, shall remain available, to the extent so
provided in an appropriation Act hereafter enacted, for payment
with res~ectto ex~endituresfor child welfare services under art B of
title IV i f that A& until September 30,1981.
(2) Section 420(b) of the Social Security Act (as added by subsection
(a) of this section)shall apply only with respect to appropriation Acts,
which appropriate funds for fiscal years after fiscal year 1981
pursuant to the authorization contained in section 420 of the Social
Security Act, enacted after the date of enactment of this Act.

94 STAT. 521
43 USC 1601
note.

42 USC 622 note.
Ante, p. 517.

42 USC 602.
42 USC 601.

42 USC 622 note.
Ante, p. 517.
Ante, p. 516.
42 USC 602.

42 USC 1397b.

42 USC 1397.
42 USC 1397a.
42 USC 620 note.
Ante, p. 516.

TITLE II-SOCIAL SERVICES
DETERMINATION OF AMOUNT ALLOCATED TO STATES

SEC. 201. (a) Section 2002(aX2XA) of the Social Security Act is
amended by striking out clause (ii)and inserting in lieu thereof the
following:

42 USC 1397a.

94 STAT. 522

42

usc 1397a.

42 USC 415.

42 usc 1397a.

PUBLIC LAW 96-272-JUNE

17,1980

"(ii) The amount specified for purposes of clause (i) for fmcal year
1980 and each succeeding fiscal year shall be an amount (not
exceeding $3,300,000,000) equal to the indexed ceiling amount for
that fiscal year as determined under subparagraph (B).".
(b) Section 2002(aH2) of such Act is amended (subject to subsection
(c) of this section) by striking out subparagraphs (B), (C),and (Dl, and
by inserting after subparagraph (A)the following new subparagraph:
"(B)(i)O Except as otherwise provided in clauses (ii), (iii), and (iv),
the indexed ceiling amount for any fmcal year shall be an amount
equal to the indexed ceiling amount for the preceding fiscal year
increased or decreased (as the case may be) by an amount determined
under division (ID.
"0For purposes of division (I) the amount of the increase or
decrease (as the case may be) shall be an amount equal to
$2,500,000,000, multiplied by a percentage equal to the positive or
negative percentage change in the Consumer Price Index prepared by
the Department of Labor, and used in determining cost-of-living
adjustments under section 215(i) of this Act, for the second quarter of
the preceding fscal year as compared to such index for the second
quarter of the second preceding fiscal year (rounded to the nearest
one-tenth of 1per centurn). For purposes of this clause the Consumer
Price Index for any quarter shall be the arithmetical mean of such
index for the three months in such quarter.
"(ii) If the percentage increase in the Consumer Price Index as
determined under clause (iXII) for any fscal year exceeds the inflation rate for that fmcal year as shown for that year (or, if no rate is
shown for that year, for the most recent preceding year for which a
rate is shown)in the table which appears on page 25 of Senate Budget
Committee Report Numbered 96-311, then for such fiscal year such
inflation rate shall be used in making the determination under clause
WCII) instead of the percentage increase in the Consumer Price Index.
"(iii)The indexed ceiling amount determined under clause (i)shall,
if not a multiple of $100,000,000, be rounded to the next lesser amount
that is a multiple of $100,000,000.
"(id The indexed ceiling amount for fscal year 1979 shall be
$2,500,000,000."
(c) With respect to fmcal year 1980only(1)subparagraphs (B) and (C)of section 2002(aX2) of such Act
(as in effect immediately prior to the enactment of this Act) shall
continue in effect, redesignated as subparagraphs (Dland (El,
respectively;
(2)the subparagraph of such section 2002(aX2)which is redesignated as subparagraph (E) and continued in effect by paragraph
(1)of this subsection is amended by striking out "subparagraph
(B)" and "subparagraph (D)" and inserting in lieu thereof "subparagraph (D) ' and "subparagraph Q",respectively; and
(3) subparagraph (D)of such section 2002(aX2) (as in effect
immehately pnor to the enactment of this Act) shall continue in
effect, redesignated as subparagraph (Fland amended to read as
follows:
"0The amounts made available pursuant to subparagraph
(El for allotment in fiscal year 1980 shall be allotted by the
Secretary to the States which have certified under subparagraph
(Dl that the amounts of their limitations for such fiscal year are
less than their need for such year. The amount of such allotment
to any State (which shall be in addition to any payments made to
the State under subparagraph (A)) shall bear the same ratio to

PUBLIC LAW 96-272-JUNE

17,1980

94 STAT. 523

the total amount available for allotment in such year under this
subparagraph as the population of such State bears to the
population of the fifty States and the District of Columbia, but
shall in no case exceed the amount by which such State certified
that its limitation is less than its need for such fscal year.".
EXTENSION OF

100-PER CENTUM FEDERAL MATCHING FOR CHILD DAY
CARE EXPENDITURES

SEC.202. (a) Section 2002(a) of the Social Security Act is amended
by adding at the end thereof the following new paragraph:
"(17)(A) The total payment to a State under this section with
respect to expenditures during any fiscal year for the provision of
child day care services under this title (including expenditures for
grants to qualified providers under section 2007) shall be equal to 100
per centum of such expenditures to the extent that such expenditures
(during that fiscal year) do not exceed"(i) an amount which bears the same ratio to $200,000,000 as
the amount of the State's limitation under paragraph (2XA)bears
to the indexed ceiling amount for such fscal year, in the case of
fiscal year 1980and fiscal year 1981;or
"(ii) 8 per centum of the State's limitation under paragraph
(2)(A)for such fiscal year, in the case of fiscal year 1982 and any
subsequent fiscal year.
"(B)Federal funds payable to a State under this title (with respect
to expenditures for child day care services) a t the rate specified in
subparagraph (A) shall, to the maximum extent that the State
determines to be feasible, be employed in such a way as to increase
the employment of welfare recipients and other low-income persons
in jobs related to the provision of child day care services.".
(b)Section 2002(aX1)of such Act is amended by striking out "100
per centum" and all that follows down through "2007" and inserting
in lieu thereof "100 per centum of the expenditures during that
quarter for child day care services (including expenditures for grants
to qualified providers under sectlon 2007) to the extent permitted by
paragraph (17)".

42 USC 1397a.

42 USC 1397f.

LIMITATION ON FUNDS FOR TRAINING

SEC.203. (a) The first sentence of section 2002(aX2XAXi) of the
Social Security Act is amended by striking out "in excess of an
amount" and all that precedes it, and inserting in lieu thereof
"Except as provided in clause (3,
no payment may be made under
this section to any State for any fiscal year in excess of an amount".
(b)Section 2002(aX2XA) of such Act is further amended by adding
after clause (ii)the following new clause:
"(iii)Payment with respect to expenditures for personnel training
or retraining directly related to the provision of services under this
title shall be made to a State in excess of the limitation for such State
promulgated under clause (i) for any fiscal year and without regard to
such limitation; except that"(I) notwithstanding any other provision of law, payment to a
State with respect to such expenditures for fiscal years 1980 and
1981 may not exceed an amount equal to 4 per centum of such
State's limitation (for the fiscal year involved) under clause (i),
or, if greater, an amount equal to the amount of the payment
made under this title to such State with respect to such expendi-

42

USC 1397a.

94 STAT. 524

Training plan,
submittal to

Secretary.

42 usc 1397a.
Ante, P. 523.

42 USC 1397.

PUBLIC LAW 96-272-JUNE

17,1980

tures for fscal year 1979, or equal to (a)the amount which would
be payable without regard to this subclause with respect to
expenditures pursuant to an appropriation made prior to O c b
ber 1,1979, by such State for fiscal year 1980, or, if less, (b)the
amount determined under division (a) of this subclause reduced
to the extent necessary and on a proportional basis so as to assure
that the aggregate of the additional amounts payable to all
States as a result of such division (a) does not exceed $6,000,000;
and
"(11)payment to a State with respect to such expenditures for
fscal year 1982or any succeeding fiscal year may be made only if
the State has submitted to the Secretary in accordance with
paragraph (18) (prior to the beginning of the fiscal year involved)
a training plan specifying how its funds expended for such
training or retraining in that fiscal year will be used,and only
with respect to expenditures included in such plan which are
approved by the Secretary in accordance with criteria prescribed
byhim.". (c) Section 2002(a) of such Act is amended by adding after paragraph (177 (as added by section 202(a) of this Act) the following new
par-agraph:
"(18) Effective October 1,1981, no payment may be made under this
section for training or retraining expenditures except in accordance
with a training plan approved by the Secretary which, at a
minimum"(A) describes how training needs were assessed and how the
assessment was used to structure the training programs, the
individuals to be trained, and the training resources to be used,
"(B)demonstrates that the training activities have a direct
relationship to the title XX services program and to the State's
staffing needs to carry out the title XX services program; and
"(6describes the State agency's plan to monitor training
programs and to evaluate the agency's overall staff training and
development program.".
USE OF RESTMCFED PRIVATE FUNDS FOR TRAINING PROGRAMS

42

usc 1397a.

SEC.204. (a) Section 2002(a#7XDXii) of the Social Security Act is
amended by striking out "and" at the end thereof and inserting in
lieu thereof the following. "except that during fiscal years 1980 and
1981the provisions of this clause shall not apply with respect to funds
that are donated for the purpose of training or retraining as provided
in subsection (aXl), if such training or retraining is carried out by a
public or nonprofit entity, and".
EMERGENCY SHELTER

SEC.205. (a) Section 2002(aXll) of the Social Security Act is
amended(1) by striking out "and" at the end of subparagraph (C);
(2) by striking out the period at the end of subparagraph (D)
and inserting in lieu thereof ";and"; and
(3) by adding a t the end thereof the following new
subparagraph:
"(El any expenditure for the provision of emergency shelter, for
not in excess of thirty days in any six-month period, provided as a

PUBLIC LAW 96-272-JUNE

17, 1980

94 STAT. 525

protective service to a n adult in danger of physical or mental
injury, neglect, maltreatment, or exploitation.".
@) The amendments made by this section shall be effective on and
after October 1,1979.
MULTIYEAR

fgf;:~~:;$
note.

PLAN; CHOICE OF FISCAL YEAR

SEC.206. (a)Section 2004(1)of the Social Security Act is amended to
read a s follows:
"(1) for each services program period, the beginning of the
fiscal year of the Federal Government, the State government, or
the political subdivisions of such State is established as the
beginning of the State's services program period, and the end of
such fiscal year, the succeeding fiscal year, or the second succeeding fiscal year is established as the end of the State's services
program period; and".
(b)Section 2004 of such Act is further amended(1) by striking out "services program year" each place it
appears and inserting in lieu thereof in each instance "services
program period";
( 2 ) by striking out "annual" in paragraph (2) (in the matter
preceding subparagraph (A))and in paragraph (4);
(3) by striking out "during that year" in paragraph (2) (in the
matter preceding subparagraph (A))and inserting in lieu thereof
"during that period";
(4) by striking out the period a t the end of paragraph (5) and
inserting in lieu thereof ";a n d ; and
(5) by adding a t the end thereof the following new paragraph:
"(6) in the case of a State that adopts a services program
planning period of longer than one year, the State agency
publishes and makes generally available such information concerning the comprehensive services program at such times as the
Secretary may by regulation require.".
(c)Section 2003(b)of such Act is amended(1)by striking out "each services program year" and inserting
in lieu thereof "each fiscal year (asselected by the State under
section 2004(1))within each services program period"; and
(2) by striking out "any services program year" and inserting
in lieu thereof "any services program period".
(dl Sections 2003(d)(l)and 2005 of such Act are each amended by
striking out "services program year" and inserting in lieu thereof
"services program period".
(el Section 2002(a)(3)(B)of such Act is amended by striking out
"annual".
(f)The amendments made by this section shall be effective with
respect to services program periods beginning after the date of the
enactment of this Act.

42 USC 1 3 9 7 ~ .

42 usc 1397b.

42 USC 1397b,
1397d.
42 USC 1397a.

Effective date.
1397a

tz:SC

SOCIAL SERVICES FUNDING FOR TERRITORIES

SEC.207. (a)Section 2002(a)(2)of the Social Security Act is amended
by adding after subparagraph (B) (as added by section 201(b)of this
Act) the following new subparagraph:
"(C)From the amounts made available under section 2001 for any
fiscal year beginning with fucal year 1980 (in addition to any sums
appropriated for purposes of payments under the preceding provisions of this subsection), the Secretary shall allocate-

42 USC 1397a.

Ante, p. 521.

94 STAT. 526

42 USC 303, 603,
1203,1353, 1383
note.
42 USC 603.

42 USC 1397.

42 USC 1308,
post, pp. 529,530.

PUBLIC LAW 96-272-JUNE

"(i) to the jurisdictions of Puerto Rico, Guam, and the Virgin
Islands, for purposes of payments under sections 3(a) (4) and (51,
403(a)(3),1003(a)(3) and (4), 1403(a)(3) and (41, and 1603(a)(4) and
(51, with respect to services, the sums of $15,000,000, $500,000 and
$500,000, respectively, and
''(3to the jurisdiction of the Northern Mariana Islands, for
purposes of payments under section 403(aK3), with respect to
services and for services programs for other individuals as
defined by the Secretary, the sum of $100,000,
in addition to any amounts otherwise available to such jurisdictions
under this Act.".
(b) The last sentence of section 2001 of such Act is amended by
inserting before the period a t the end thereof the following: "( and to
territorial jurisdictions as described in subsection (aX2XC) thereof)".
(c) Section 1108(a)of such Act is amended by striking out "section
2002(a)(2)0" and inserting in lieu thereof 'section 2002(a)(2W.
P

42 USC 1397e-1
note.

93 Stat. 1295.
26 USC 50B.

17, 1980

m EXTENSION OF PROVISIONS RELATING TO CHILD DAY CARE
SEBVICES AND WIN TAX c m m

SEC.208. (a) Section 4(d) of Public Law 96-178 is amended by
striking out "during the period beginning October 1,1979,and ending
March 31,1980" and inserting in lieu thereof "on or after October 1,
1979".
(bX1) Section 50B(i) of the Internal Revenue Code of 1954 (relating
to special rules with respect to employment of day care workers) is
amended to read as follows:
"(i) SPECIAL
RULESWITHRESPECTTO EMPLOYMENT
OF DAYCARE

WORKERS."(1) ELIGIBLE
EMPLOYEE.-An
individual who would be an

'eligible employee' (as that term is defined for purposes of this
section) except for the fact that such individual's employment is
not on a substantially full-time basis, shall be deemed to be ap
eligible employee as so defmed, if such employee's e m p l o ~ e nISt
related to the provision of child day care services
and IS per'
formed on either a full-time or partrtime basis.
"(2) ALTERNATIVE
COMPUTATION WITH RESPECT TO CHILD DAY

42 USC 1397.
26 USC 40.
26 USC 50A.

42 USC 1397f.

CARE SERVICES ELIGIBLE EMPLOYEES PAID FROM FUNDS MADE A V A I t
ABLE UNDER TITLE XX OF THE SOCIAL SECURITY ACT.-The a m 0 ~ n t

of the credit allowed a taxpayer under section 40, as determined
under section 50A and the preceding provisions of this section,
with respect to work incentive program expenses paid or incurred by him with respect to an eligible employee whose
services are performed in connection with a child day care
services program conducted by the taxpayer, and with respect to
whom the taxpayer is reimbursed (in whole or in part) from
funds made available pursuant to section 2007 of the Social
Security Act, a t the option of the taxpayer shall be equal to 100
percent of the unreimbursed wages paid or incurred by the
taxpayer with respect to such employee, but not more than the
amount of the limitation in paragraph (4).
"(3) UNREIMBURSED
WAGES.-For PUrpoSeS of this SUbSe~ti~n,
the term 'unreimbursed wages' means work incentive program
expenses for which the taxpayer was not reimbursed under
section 2007 of the Social Security Act or under any other grant
or program.

PUBLIC LAW 96-272-JUNE

17, 1980

"(4) L ~ ~ A T I o N . - T
amount
~ ~ of the credit* as determined
under paragraph (21, with respect to any employee shall not
exceed the lesser of"(A) an amount equal to $6,000 Qlinus the amount of the
funds reimbursed to the taxpayer with respect to such
employee from funds made available pursuant to section
2007 of the Social Security Act; or
"(B) with respect to work incentive program expenses
attributable to service rendered"(i) during the one-year period which begins on the
day such employee begins work for the taxpayer, an
amount equal to the lesser of''0
$3,000, or
"(11'50 percent of the sum of the amount of the
unreimbursed wages of such employee and the
amount reimbursed to the taxpayer with respect to
such employee from funds made available pursuant
to section 2007 of the Social Security Act; or
''(3
during the one-year period which begins on the
day after the last day of the one-year period described in
clause (9, an amount equal to the lesser of"0$1,500, or
''025 percent of the sum of the amount of the
unreimbursed wages of such employee and the
amount reimbursed to the taxpayer with respect to
such employee from funds made available pursuant
to section 2007 of the Social Security Act.".
(2) Section 50BQ(l)(B) of such Code is amended by inserting
"(except as provided in subsection (i)Yafter "full-time basis".
(3)(A) The amendments made by paragraphs (1) and (2) shall be
effective with respect to taxable years beginning after December 31,
1979.
(B) The redesignation of subsection (i)of section 50B of the Internal
Revenue Code of 1954 as subsection 6)by section 3(aX1)of Public Law
96-178, shall remain in effect with respect to taxable years beginning
after December 31,1979.

94 STAT. 527

42 USC 1397f.

26 USC 50B.
Effective date.
26 USC 50B note.
26 USC 50B note.
93 Stat. 1295.

PERMANENT EXTENSION OF PROVISIONS RELATING TO SERVICES FOR
ALCOHOLICS AND DRUG ADDICTS

SEC.209. Section 5(b) of Public Law 96-178 is amended by striking
out "during the period beginning October 1,1978, and ending March
31,1980" and inserting in lieu thereof "on or after October 1,1978".

93 Stat. 1297.
42 USC 1397a
note.

TITLE III-OTHER SOCIAL SECURITY ACT PROVISIONS
P

m EXTENSION OF PROVISIONS RELATING TO CHILD SUPPORT
ENFORCEMENT

SEC.301. (a) Section 2(b) of Public Law 96-178 is amended by
striking out "during tke period beginning October 1,1978, and ending
March 31,1980" and h serting in lieu thereof "on or after October 1,
1978".
(b) Section 452(a)(10) of the Social Security Act is amended by
a d h g at the end thereof (after and below subparagraph (El)) the
followingnew sentence:

93 Stat. 1295.
42 USC 655 note.

42 USC 652.

94 STAT. 528

PUBLIC LAW 96-272-JUNE

17, 1980

"The information contained in any such report under subparagraph (A) shall specifically include (i)the total amount of child
support payments collected as a result of services furnished
during the fiscal year involved to individuals under section
454(6), (ii)the cost to the States and to the Federal Government of
furnishing such services to those individuals, and (iii)the extent
to which the furnishing of such services was successful in
providing sufficient support to those individuals to assure that
they did not iequire assistance under the State plan approved
underpart A. .

42 usc 654.

42 USC 601.

INCENTIVES TO REPORT EARNINGS UNDER AFDC PROGRAMS
42 USC 602

Effective date.
42 USC 602 note.

SEC. 302. (a) Section 402(a)(8) of the Social Security Act is
amended(1) by inserting "or" at the end of subparagraph @) thereof;
and
(2) by adding after subparagraph 0)
the following new
subparagraph:
"0any of the persons specified in dause (ii) of subparagraph (A) with respect to which there is a failure without
good cause to make a timely report (as prescribed by the
State plan) to the State agency;".
(b)The amendments made by subsection (a) shall take effect on the
date of the enactment of this Act.
PRORATING OF SHELTER ALLOWANCE

SEC.303. Part A of title IV of the Social Security Act is amended by
adding at the end thereof the following new section:
6s

42 usc 612.

42 USC 606.

PRORATING OF SHELTER ALLOWANCE IN CERTAIN CASES WHERE CHILD
LIVES WITH RELATIVE NOT LEGALLY RESPONSIBLE FOR HIS SUPPORT

"SEC.412. (a) Notwithstanding any other provision of this part, a
State plan for aid and services to needy families with children shall
not be regarded as failing to comply with the requirements imposed
under this part solely because, under such plan, in any case in which
one or more children live in any household"(l)(A) in which the total income of such child or children and
the closiely related family members (as defined in subsection (b))
livlng in the same household equals or exceeds the standard of
need under such plan for a family equal in number to the total
number of such children and closely related family members in
the same household, or (B) where the income of children and
family members cannot be determined due to failure to cooperate, and
"(2) which (A) does not include a relative (specified in section
406(a)(l))who is legally responsible for the support of the child or
children, or (B)includes one or more such relatives who is legally
responsible for the support of the child or children but none of
whom is eligible for aid under the State plan because such
relative is being supported by another person or under another
program,
the amount of the aid furnished with respect to such child or children
for shelter, utilities, and similar expenses, bears the same ratio to the
total amount which would be furnished for such expenses, if all the
closely related family members with whom such child or children are

PUBLIC LAW 96-272-JUNE

17, 1980

94 STAT. 529

living were eligible for such aid, as the number of such children bears
to the total number of such children and closely related family

members.
"(b) For purposes of subsection (a), the term 'closely related family
members' of a child means those relatives of his who are specified in
section 406(aX1) and any other individual for whose support such a
relative is legally responsible, but does not include any such relative
or other individual (1) with respect to whom benefits are provided
under another public program eligibility for which is based on need,
or (2) whose presence in the home would not increase the total
amount which would be allowed for shelter, utilities, and similar
expenses if he was eligible for aid.
"(c) The amount of aid to families with dependent children for
shelter, utilities, and similar expenses shall be identified, for purposes of this section, in the following manner:
"(1) If the State plan approved under this part provides for
paying 100 per centum of the standard of need specified in the
plan, and designates a portion of that standard, for families of
specified sizes, to meet shelter, utilities, and similar expenses,
then an amount equal to that portion shall be considered the
total amount for such expenses for a family of the specified size.
"(2) If such plan provides for meeting less than 100 per centum
of such standard, and designates a portion of that standard, for
families of specitied sizes, to meet such expenses, then an amount
equal to that portion, multiplied by the proportion of the standard of need which such State pays as aid to families with
dependent children, shall be considered the total amount for
such expenses for a family of the specifiedsize.
"(3) If such plan does not designate any portion of the standard
of need for meeting such expenses, then such portion shall be
prescribed by the Secretary, but in no event shall such portion
exceed 30 per centurn of the standard of need for a family of a
specified size, multiplied by the proportion of such standard
which the State pays as aid to families with dependent children.
"(d) For purposes of subsection (a), the total income of the child or
children and the closely related family members (as defined in
subsection (b))shall be determined as it would be if all such individuals were applicants for aid under the State plan and shall not
include any income which any such individual is obligated to apply to
the support of any other individual not living in the household.".

"Closely related
:Aters.,
42 usC606.

SERVICES FOR DISABLED CHILDREN

SEC.304. Section 1615 of the Social Security Act is amended by
redesignating the second subsection (c) as subsection (el, and by
s t r e g out 'Oc+r
1,1979" in paragraph (1) of such subsection (el
and msertmg m heu thereof "October 1,1982".

42 USC 1382~1.

PUBLIC ASSISTANCE PAYMENTS TO TERRITORIAL JURISDICTIONS

SEC.305. (a) Section 1108(a)of the Social Security Act is amended(1)by striking out "with respect to the fiscal year 1972 and
each fiscal year thereafter other than the fiscal year 1979" in
paragraphs WE),(2#E), and (3XE) and inserting in lieu thereof in
each instance "with respect to each of the fiscal years 1972
through 1978"; and

Ante, p. 526.
P. 530.

94 STAT. 530

Ante, pp. 526,

529.
42 USC 601,
ante, p. 501.
42 USC 1318.

PUBLIC LAW 96-272-JUNE

17, 1980

(2) by striking out "with respect to the fiscal year 1979" in
paragraphs (1MF)': (2XF), and (3XF) and inserting in lieu thereof in
each instance "wth respect to the fucal year 1979and each fucal
year thereafter".
(b) Section 1108(a)of such Act is further amended by striking out
"under part A" in the matter preceding paragraph (1)and inserting
in lieu thereof "under parts A and E".
(c) The last sentence of section 1118 of such Act is amended by
striking out "when applied to quarters in the fiscal year ending
September 30,1979".
PERIOD WITHIN WHICH CERTAIN CLAIMS MUST BE FILED

SEC.306. (a)Part A of title XI of the Social Security Act is amended
by adding after section 1131the following new section:
"PERIOD WITHIN WHICH CERTAIN CLAIMS MUST BE FILED
42 USC 1320b-2.

42 USC 301,601,

701, 1201, 1351,
1381, 1396, 1397.

Effective date.
42 USC 132Ob-2
note.

"SEC.1132. (a)Notwithstanding any other provision of this Act (but
subject to subsection (b)), any claim by a State for payment with
respect to an expenditure made during m y calendar quarter by the
State"(1) in carrying out a State plan approved under title I, IV,V,

X,XIV,XVI,XIX,or XX of this Act, or

"(2) under any other provision of this Act which provides (on
an entitlement basis) for Federal financial participation in
expenditures made under State plans or programs,
shall be filed (in such form and manner as the Secretary shall by
regulations prescribe) within the two-year period which begins on the
first day of the calendar quarter immediately following such calendar
quarter; and payment shall not be made under this Act on account of
any such expenditure if claim therefor is not made within such twoyear period; except that this subsection shall not be applied so as to
deny payment with respect to any expenditure involving courtordered retroactive payments or audit exceptions, or adjustments to
prior year costs.
"(b) The Secretary shall waive the requirement imposed under
subsection (a)with respect to the filing of any claim if he determines
(in accordance with regulations) that there was good cause for the
failure by the State to file such claim within the period prescribed
under subsection (a). Any such waiver shall be only for such
additional period of time as m a y be necessary to provide the State
with a reasonable opportunity to file such claim. A failure to file a
claim within such time period which is attributable to neglect or
administrative inadequacies shall be deemed not to be for good
cause!'.
(bX1)The amendment made by subsection (a)shall be effective only
in the case of claims filed on account of expenditures made in
calendar quarters commencingon or after October 1,1979.
(2) In the case of claims filed prior to the date of enactment of this
Act on account of expenhtures described in section 1132of the Social
Security Act made in calendar quarters commencingprior to October
1,1979, there shall be no time h i t for the payment of such claims.
(3) In the case of such expenditures made in calendar quarters
commencing prior to October 1, 1979, for which no clam has been
filed on or before the date of enactment of this Act, payment shall not
be made under this Act on account of any such expenditure unless

PUBLIC LAW 96-272-JUNE

17,1980

claim therefor is filed (in such form and manner as the Secretary
shall by regulation prescribe) prior to January 1,1981.
(4) The provisions of this subsection shall not be applied so as to
deny payment with respect to any expenditure involving adjustments
to prior year costs or court-ordered retroactive payments or audit
exceptions. The Secretary may waive the requirements of paragraph
(3) in the same manner as under section 1132(b) of the Social Security
Act.
(c) Notwithstanding any other provision of law, there shall be no
time limit for the filing or payment of such claims except as provided
in this section, unless such other provision of law, in imposing such a
time limitation, specifically exempts such filing or payment from the
provisions of this section.

94 STAT. 531

42 USC 1320b-2
note.

INCENTIVES FOR STATES TO COLLECT CHILD SUPPORT OBLIGATIONS

SEC.307. (a)The heading of section 458 of the Social Security Act is
amended by inserting "STATES
AND" after "TO".
(b) Section 458(a)of such Act is amended(1)by inserting "or a State on its own behalf makes," after
"another State,", and
(2) by striffing out "or such other State" and inserting in
lieu thereof ,such other State, or such State (in the case of a
State which on its own behalf makes such enforcement and
collection)".
(c) Section 458 of such Act is further amended by adding at the end
thereof the following new subsection:
"(c) No payment under the preceding provisions of this section
shall be made to any State or political subdivision thereof with
respect to any amount collected and distributed by it unless such
amount was collected and distributed in accordance with the State
plan of the State approved by the Secretary as meeting the conditions
required by section 454.".

42 USC 658.

42 USC 654.

EXCHANGE OF INFORMATION ON TERMINATED OR SUSPENDED PROVIDERS

SEC.308. (a) Section 1862(d)of the Social Security Act is amended
by adding at the end thereof the following new paragraph:
"(4) The Secretary shall promptly notify each State agency which
administers or supervises the administration of a State plan
approved under title XM of any determination made under the
provisions of this subsection.".
(b)Section 1866(c)of such Act is amended by adding at the end
thereof the following new paragraph:
"(3) Where an agreement filed under this title by a provider of
services has been terminated by the Secretary, the Secretary shall
promptly notify each State agency which administers or supervises
the administration of a State plan approved under title XM of such
termination.".
(c) Section 1902(a)of such Act is amended(1)by striking out "and" at the end of paragraph (39);
(2) by striking out the period at the end of paragraph (40) and
inserting in lieu thereof ";and"; and
(3) by inserting after paragraph (40) the following new
paragraph:

42 USC 1395y.

42 USC 1396.
42 USC 1395cc.

42 USC 1396a.

94 STAT. 532

PUBLIC LAW 96-272-JUNE

17, 1980

"(41)provide that whenever a provider of services or any other
person is terminated, suspended, or otherwise sanctioned or
prohibited from participating under the State plan, the State
agency shall promptly notify the Secretary of such action.".
POSTPONEMENT O F IMPOSITION OF CERTAIN PENALTIES RELATING TO
CHILD SUPPORT REQUIREMENTS
42 USC 603 note.
42 USC 601.
42 USC 603.

SEC.309. No reduction in the amount payable to any State under
title IV of the Social Security Act with respect to fiscal year 1977 or
fiscal year 1978 shall be made prior to October 1,1980, on account of
the provisions of section 403(h) of such Act.
CONTINUING MEDICAID ELIGIBILITY FOR CERTAIN RECIPIENTS OF
VETERANS' ADMINISTRATION PENSIONS

Ante, p. 530.

SEC. 310. ( a l l ) Part A of title XI of the Social Security Act is
amended by adding after section 1132 (as added by section 305 of this
Act) the following new section:
"APPT.ICANTS OR RECIPIENTS UNDER PUBLIC ASSISTANCE PROGRAMS NOT
TO BE REQUIRED TO MAKE ELECTION RESPECTING CERTAIN VETERANS'
BENEFITS

42 USC 1320b-3.
42 USC 301,1201,

1351,1381, 601.

38 USC 521 note.

42 USC 1381.
42 USC 1396.

Effective date.
42 USC 1320 b-3
note.

"SEC.1133. (a) Notwithstanding any other provision of law (but
subject to subsection (b)), no individual who is an applicant for or
recipient of aid or assistance undera State plan approved under title
I, X, XIV, or XVI, or part A of t ~ t l eIV, or of benefits under the
Supplemental Security Income program established by title XVI
shall"(1) be required, as a condition of eligibility for (or of continuing to receive) such aid, assistance, or benefits, to make an
election under section 306 of the Veterans' and Survivors'
Pension Improvement Act of 1978 with respect to pension paid by
the Veterans' Administration, or
" ( 2 ) by reason of failure or refusal to make such a n election, be
denied (or suffer a reduction in the amount ofl such aid, assistance, or benefits.
"(b) The provisions of subsection (a) shall be applicable only with
respect to a n individual, who is a n applicant for or recipient of aid,
assistance, or benefits described in subsection (a), during a period
with r e s ~ e cto
t which there is in effect"(1) in case such individual is a n applicant for or recipient of
aid or assistance under a State plan referred to in subsection (a),
in the State having such plan, or
"(2) in case such individual is a n applicant for or recipient of
benefits under the Supplemental Security Income program
established by title XVI, in the State in which the individual
applies for or receives such benefits,
a State plan for medical assistance, approved under title XIX, under
which medical assistance is available to such individual only for
periods for which such individual is a recipient of aid, assistance, or
benefits described in subsection (a).".
(2) The amendment made by paragraph (1)shall be effective on and
after January 1, 1979; except that nothing contained in such amendment shall be construed to authorize or require any payment (or
increase in payment) of any aid or assistance or benefits referred to in
section 1133(a)of the Social Security Act (as added by paragraph (1))

PUBLIC LAW 96-272-JUNE

17,1980

94 STAT. 533

For any benefit period which begins prior to the date of enactment of
this Act.
(b)fl)(A)For purposes of section 1902(a)(lO)(A)
of the Social Security
Act, any individual who, prior to the date of enactment of this Act
and for the month of December 1978, was eligible for and received aid
or assistance under a State plan approved under title I, X, XIV, or
XVI, or part A of title IV of such Act, or was eligible for and received
supplemental security income benefits under title XVI of such Act (or
a supplementary payment described in section 13(c) of Public Law
93-233), and was also in receipt of (or was a dependent, for purposes of
chapter 15 of title 38, United States Code, as in effect on December 31,
1978, of a n individual in receipt of) pension from the Veterans'
Administration for the month of December 1978 shall (subject to
subparagraph (B)) be deemed to have been receiving such aid,
assistance, supplemental security income, or supplementary payment, for each calendar month thereafter (prior to the month in
which the provisions of this subparagraph cease to be effective with
respect to him as determined under subparagraph (B)), if such
individual would have been eligible therefor in December 1978 and in
the month in which the provisions of this subparagraph cease to be
effective with respect to him as determined under subparagraph (B)
had the increase in income of such individual (or of the family of
which such individual is a member), attributable to an election (made
by such individual or another member of such individual's family)
under section 306 of the Veterans' and Survivors' Pension Improvement Act of 1978, not occurred.
(BNi) The provisions of subparagraph (A) shall take effect on
January 1, 1979, and shall cease to be effective, in the case of any
individual, for and after the first calendar month beginning more
than 10 days after an "informed election" (as defined in subdivision
(ii)of this subparagraph)has been made by such individual (or, if such
individual is not eligible to make such an election, by a member of
such individual's family who is eligible to make such an election
which affects such individual's eligibility for aid, assistance, or
benefits under a plan or program referred to in subparagraph (A)).
(ii) The term "informed election" means a n election made under
section 306 of the Veterans' and Survivors' Pension Improvement Act
of 1978 (or a reaffirmation of such a n election which previously was
made under such section 306) after the date of compliance by the
Administrator of Veterans' Affairs (hereinafter in this section
referred to as the "Administrator") with the provisions of paragraph
(2NA) with respect to the individual concerned. An individua! who
fails, within the time limits prescribed in paragraph (2KB), to disaffirm an election previously made by such individual under such
section 306 shall be deemed, for purposes of this section and such
section 306, to have reaffirmed such election.
(2)(A)The Administrator shall provide to each individual to whom
section 1133 of the Social Security Act (asadded by subsection (a)(l)of
this section) applies and who is eligible to make or has made a n
election under section 306 of the Veterans' and Survivors' Pension
Improvement Act of 1978, a written notice, in clear and understandable language, which (i) describes the consequences to such individual
(and possibly to such individual's family), in terms of a determination
or possible determination of ineligibility for medical assistance under
a State plan approved under title XIX of the Social Security Act, of
making an election with respect to pension under such section 306, (ii)
describes the provisions of subparagraph (B) of this paragraph and

42

USC 1391%

i$jSC1396a,
USC 301,
iiyl*
42

13517

13819

tz:,sC
1396a
38 USC 501 et
seq.

38 uSC 521 note.
Effectivedate.

"Informed
38 USC 521 note.

42 USC 132013-3

Ante, P. 532.
38 USC 521 note.

42 USC

1396.

94 STAT. 534

Ante, p. 532.

38 USC 521 note.

PUBLIC LAW 96-272-JUNE

17,1980

subsection (a)of this section, (iii)sets forth other relevant information
that would be helpful to such individual in making an informed
decision concerning such an election or the disaffirmation thereof,
and (iv) in the case of any individual who has made such an election,
is accompanied by a form prepared for the purpose of enabling such
individual to file with the Administrator a written disaffirmation of
such an election.
tB) Notwithstanding any other provision of law(i) any individual to whom section 1133 of the Socid Security
Act (as added by subsection (a)(l)of this section) applies may,
within the 90-day period beginning with the day that there is
mailed to such individual (at such individual's last known mailing address) a notice referred to in subparagraph (A), disaffirm
a n election previously made by such individual under section 306
of the Veterans' and Survivors' Pension Improvement Act of
1978 by completing and mailing to the Administrator the form
furnished such individual for such purpose by the Administrator
pursuant to subparagraph (A),
(ii) whenever any such individual files such a disaffirmation
with the Administrator, the amount of pension payable to such
individual shall be adjusted, beginning with the first calendar
month which commences after the receipt by the Administrator
of such disaffirmation, to the amount that such pension would
have been if such an election by such individual had not been
made,
(iii)any individual who has filed a disaffirmation, pursuant to
this subparagraph, of an election made by such individual under
such section 306 may again make an election thereunder, but
such subsequent election may not be disaffirmed under this
subsection, and
(iv) no indebtedness to the United States, as a result of the
disaffirmation by an individual, pursuant to this subparagraph,
of an election made by such individual under such section 306
shall be considered to arise from the payment of pension pursuant to such an election.

PUBLIC LAW 96-272-JUNE

17, 1980

94 STAT. 535

(0 The Admhkbtor &dl promptly advise the Serretarg of
Bxdth, Education, and Welfare, and provide identification of the
individualsinvolved and other pertinent infomation with respect to
(i) dhffhmtions of elections made by individuals pmuant to
subparagraph (B),(ii) individualswho, by fhilhg to disaffirm within
the 9&y period presmibed in subparagraph (B), are deemed to have
r&fimed elections previously made, and (iii)individualswho, after
having disafhned an election under subparagraph (B), subsequently
again make an election under section 306 of the Veterans' and
Survivors' Pension Improvement Act of 1978. The Secretztry, upon
receipt of any such information with respect to an individual, shall
promptly notify the appropriate agencies administering State plans
approved under title I, X, XIV, XIX, and part A of title IV of the
Social Security Ad, and State agencies making supplemental payments pursuant to section 1616 of such Act or an agreement entered
intopursuant to section 212@ of Public Law 93-66.
Approved June 17,1980.

LEGISLATIVE HISTORY:
HOUSE-REPORTS: No. 96-136 (Comm. on Wars and Means), No. 96-136. Pt. 2 (Comm.
on Appropriations), and No. 96-900 (Comm. of Conference).
SENATE REPORT No. 96-336 (Comm. on Finance).
CONGRESSIONAL RECORD:
Vol. 125 (1979): Aua. 2. considered and ~ a s s e dHouse.
O C 25;
~ 29, considered Ad p&ed Senate, amended.
Vol. 126 (1980): June 13, House and Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS:
Vol. 16, No. 25 (1980): June 17, Presidential statement.

38 USC 521 note.

~ ~ $ ~ ~ 3 ~ ~ , l k ~ ~ ,
42 USC 138ze.
87 stat. 155.