Laws: Cases and Codes : U.S. Code : Title 42 : Section 674


   
U.S. Code as of: 01/19/04
Section 674. Payments to States

    (a) Amounts
      For each quarter beginning after September 30, 1980, each State
    which has a plan approved under this part 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 1396d(b) of this title) of the
      total amount expended during such quarter as foster care
      maintenance payments under section 672 of this title for children
      in foster family homes or child-care institutions; plus
        (2) an amount equal to the Federal medical assistance
      percentage (as defined in section 1396d(b) of this title) of the
      total amount expended during such quarter as adoption assistance
      payments under section 673 of this title 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 provision of child placement services
      and 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 subdivision,
          (B) 75 percent of so much of such expenditures (including
        travel and per diem expenses) as are for the short-term
        training of current or prospective foster or adoptive parents
        and the members of the staff of State-licensed or
        State-approved child care institutions providing care to foster
        and adopted children receiving assistance under this part, in
        ways that increase the ability of such current or prospective
        parents, staff members, and institutions to provide support and
        assistance to foster and adopted children, whether incurred
        directly by the State or by contract,
          (C) 50 percent of so much of such expenditures as are for the
        planning, design, development, or installation of statewide
        mechanized data collection and information retrieval systems
        (including 50 percent of the full amount of expenditures for
        hardware components for such systems) but only to the extent
        that such systems - 
            (i) meet the requirements imposed by regulations
          promulgated pursuant to section 679(b)(2) of this title;
            (ii) to the extent practicable, are capable of interfacing
          with the State data collection system that collects
          information relating to child abuse and neglect;
            (iii) to the extent practicable, have the capability of
          interfacing with, and retrieving information from, the State
          data collection system that collects information relating to
          the eligibility of individuals under part A of this
          subchapter (for the purposes of facilitating verification of
          eligibility of foster children); and
            (iv) are determined by the Secretary to be likely to
          provide more efficient, economical, and effective
          administration of the programs carried out under a State plan
          approved under part B of this subchapter or this part; and

          (D) 50 percent of so much of such expenditures as are for the
        operation of the statewide mechanized data collection and
        information retrieval systems referred to in subparagraph (C);
        and
          (E) one-half of the remainder of such expenditures; plus

        (4) an amount equal to the amount (if any) by which - 
          (A) the lesser of - 
            (i) 80 percent of the amounts expended by the State during
          the fiscal year in which the quarter occurs to carry out
          programs in accordance with the State application approved
          under section 677(b) of this title for the period in which
          the quarter occurs (including any amendment that meets the
          requirements of section 677(b)(5) of this title); or
            (ii) the amount allotted to the State under section
          677(c)(1) of this title for the fiscal year in which the
          quarter occurs, reduced by the total of the amounts payable
          to the State under this paragraph for all prior quarters in
          the fiscal year; exceeds

          (B) the total amount of any penalties assessed against the
        State under section 677(e) of this title during the fiscal year
        in which the quarter occurs.
    (b) Quarterly estimates of State's entitlement for next quarter;
      payments; United States' pro rata share of amounts recovered as
      overpayment; allowance, disallowance, or deferral of claim
      (1) The Secretary shall, prior to the beginning of each quarter,
    estimate the amount to which a State will be entitled under
    subsection (a) of this section for such quarter, such estimates to
    be based on (A) a report filed by the State containing its estimate
    of the total sum to be expended in such quarter in accordance with
    subsection (a) of this section, and stating the amount appropriated
    or made available by the State and its political subdivisions for
    such expenditures in such quarter, and if such amount is less than
    the State's proportionate share of the total sum of such estimated
    expenditures, the source or sources from which the difference is
    expected to be derived, (B) records showing the number of children
    in the State receiving assistance under this part, and (C) such
    other investigation as the Secretary may find necessary.
      (2) The Secretary shall then pay to the State, in such
    installments as he may determine, the amounts so estimated, reduced
    or increased to the extent of any overpayment or underpayment which
    the Secretary determines was made under this section to such State
    for any prior quarter and with respect to which adjustment has not
    already been made under this subsection.
      (3) The pro rata share to which the United States is equitably
    entitled, as determined by the Secretary, of the net amount
    recovered during any quarter by the State or any political
    subdivision thereof with respect to foster care and adoption
    assistance furnished under the State plan shall be considered an
    overpayment to be adjusted under this subsection.
      (4)(A) Within 60 days after receipt of a State claim for
    expenditures pursuant to subsection (a) of this section, the
    Secretary shall allow, disallow, or defer such claim.
      (B) Within 15 days after a decision to defer such a State claim,
    the Secretary shall notify the State of the reasons for the
    deferral and of the additional information necessary to determine
    the allowability of the claim.
      (C) Within 90 days after receiving such necessary information (in
    readily reviewable form), the Secretary shall - 
        (i) disallow the claim, if able to complete the review and
      determine that the claim is not allowable, or
        (ii) in any other case, allow the claim, subject to
      disallowance (as necessary) - 
          (I) upon completion of the review, if it is determined that
        the claim is not allowable; or
          (II) on the basis of findings of an audit or financial
        management review.
    (c) Automated data collection expenditures
      The Secretary shall treat as necessary for the proper and
    efficient administration of the State plan all expenditures of a
    State necessary in order for the State to plan, design, develop,
    install, and operate data collection and information retrieval
    systems described in subsection (a)(3)(C) of this section, without
    regard to whether the systems may be used with respect to foster or
    adoptive children other than those on behalf of whom foster care
    maintenance payments or adoption assistance payments may be made
    under this part.
    (d) Reduction for violation of plan requirement
      (1) If, during any quarter of a fiscal year, a State's program
    operated under this part is found, as a result of a review
    conducted under section 1320a-2a of this title, or otherwise, to
    have violated paragraph (18) or (23) of section 671(a) of this
    title with respect to a person or to have failed to implement a
    corrective action plan within a period of time not to exceed 6
    months with respect to such violation, then, notwithstanding
    subsection (a) of this section and any regulations promulgated
    under section 1320a-2a(b)(3) of this title, the Secretary shall
    reduce the amount otherwise payable to the State under this part,
    for that fiscal year quarter and for any subsequent quarter of such
    fiscal year, until the State program is found, as a result of a
    subsequent review under section 1320a-2a of this title, to have
    implemented a corrective action plan with respect to such
    violation, by - 
        (A) 2 percent of such otherwise payable amount, in the case of
      the 1st such finding for the fiscal year with respect to the
      State;
        (B) 3 percent of such otherwise payable amount, in the case of
      the 2nd such finding for the fiscal year with respect to the
      State; or
        (C) 5 percent of such otherwise payable amount, in the case of
      the 3rd or subsequent such finding for the fiscal year with
      respect to the State.

    In imposing the penalties described in this paragraph, the
    Secretary shall not reduce any fiscal year payment to a State by
    more than 5 percent.
      (2) Any other entity which is in a State that receives funds
    under this part and which violates paragraph (18) or (23) of
    section 671(a) of this title during a fiscal year quarter with
    respect to any person shall remit to the Secretary all funds that
    were paid by the State to the entity during the quarter from such
    funds.
      (3)(A) Any individual who is aggrieved by a violation of section
    671(a)(18) of this title by a State or other entity may bring an
    action seeking relief from the State or other entity in any United
    States district court.
      (B) An action under this paragraph may not be brought more than 2
    years after the date the alleged violation occurred.
      (4) This subsection shall not be construed to affect the
    application of the Indian Child Welfare Act of 1978 [25 U.S.C. 1901
    et seq.].
    (e) Discretionary grants for educational and training vouchers for
      youths aging out of foster care
      From amounts appropriated pursuant to section 677(h)(2) of this
    title, the Secretary may make a grant to a State with a plan
    approved under this part, for a calendar quarter, in an amount
    equal to the lesser of - 
        (1) 80 percent of the amounts expended by the State during the
      quarter to carry out programs for the purposes described in
      section 677(a)(6) of this title; or
        (2) the amount, if any, allotted to the State under section
      677(c)(3) of this title for the fiscal year in which the quarter
      occurs, reduced by the total of the amounts payable to the State
      under this subsection for such purposes for all prior quarters in
      the fiscal year.
    (f) Reduction for failure to submit required data
      (1) If the Secretary finds that a State has failed to submit to
    the Secretary data, as required by regulation, for the data
    collection system implemented under section 679 of this title, the
    Secretary shall, within 30 days after the date by which the data
    was due to be so submitted, notify the State of the failure and
    that payments to the State under this part will be reduced if the
    State fails to submit the data, as so required, within 6 months
    after the date the data was originally due to be so submitted.
      (2) If the Secretary finds that the State has failed to submit
    the data, as so required, by the end of the 6-month period referred
    to in paragraph (1) of this subsection, then, notwithstanding
    subsection (a) of this section and any regulations promulgated
    under section 1320a-2a(b)(3) of this title, the Secretary shall
    reduce the amounts otherwise payable to the State under this part,
    for each quarter ending in the 6-month period (and each quarter
    ending in each subsequent consecutively occurring 6-month period
    until the Secretary finds that the State has submitted the data, as
    so required), by - 
        (A)  1/6  of 1 percent of the total amount expended by the
      State for administration of foster care activities under the
      State plan approved under this part in the quarter so ending, in
      the case of the 1st 6-month period during which the failure
      continues; or
        (B)  1/4  of 1 percent of the total amount so expended, in the
      case of the 2nd or any subsequent such 6-month period.



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