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Administration for Children and Families
U.S. DEPARTMENT OF HEALTH AND HUMAN
|1. Log No.: ACYF-IM-CB-95-11||2. Issuance Date: 3/9/95|
|3. Originating Office: Children's Bureau|
|4. Key Word: Nonrecurring Expenses; Adoption OBRA 1989; OBRA 1993; P.L. 103-432|
TO: State Agencies Administering or Supervising the Administration of Title IV-E of the Social Security Act
SUBJECT: Technical Corrections Amending Section 473 of the Social Security Act
LEGAL AND RELATED REFERENCES: Sections 473 and 474 of Title IV-E of the Social Security Act; P.L. 103-66; P.L. 103-432
BACKGROUND: The Omnibus Budget Reconciliation Act (OBRA) of 1989 amended title IV-E, inserting a new subparagraph into section 474(a)(3), to reimburse States at 75 percent for training of State agency staff and foster and adoptive parents. This amendment expired September 30, 1992 and was reestablished by OBRA 1993, effective October 1, 1994. The OBRA of 1993 also amended title IV-E, inserting two more new subparagraphs into section 474(a)(3), to reimburse States at 75 percent for the development of automated data systems. Both OBRA amendments changed section 474 of the Social Security Act, but corresponding technical changes were not made to other sections of the Act. As a result of this, there was an incorrect citation concerning Federal reimbursement of nonrecurring adoption expenses in section 473. Public Law 103-432, signed on October 31, 1994, made the necessary technical corrections to section 473 and elsewhere, retroactive to 1989 and 1993.
PURPOSE: The purpose of this Information Memorandum (IM) is to provide information regarding technical corrections related to payments to States for nonrecurring adoption expenses.
CONTENT: Section 265 of Public Law 103-432 amended the OBRA 1989 by deleting the reference to section "474(a)(3)(B)" in section 473(a)(6)(B) and replacing it with "474(a)(3)(C)," effective as of the effective date of OBRA 1989.
Section 266 of Public Law 103-432 amended the OBRA 1993 by deleting the reference to section "474(a)(3)(C)" in section 473(a)(6)(B) and replacing it with "474(a)(3)(E)," effective as of the effective date of OBRA 1993.
Accordingly, section 473(a)(6)(B) of the Social Security Act now reads, "A State's payment of nonrecurring adoption expenses under an adoption assistance agreement shall be treated as an expenditure made for the proper and efficient administration of the State plan for purposes of section 474(a)(3)(E)."
The change means that States are entitled to Federal reimbursement of 50 percent of nonrecurring adoption expenses under an adoption assistance agreement and that no higher matching rate has ever been in effect.
NOTE: Section 13713 of OBRA 1993 amended section 474(a)(3) by changing subparagraph (C) to (E) and inserting subparagraphs (C) and (D) to reimburse States at 75 percent for the development of automated data systems.
INQUIRIES: Regional Administrators, ACF Regions I - X
Olivia A. Golden
Administration on Children, Youth and Families