[Federal Register: July 14, 2006 (Volume 71, Number 135)]
[Proposed Rules]               
[Page 40345-40382]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14jy06-23]                         


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Part VII





Department of Health and Human Services





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Administration for Children and Families



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45 CFR Part 1356



Chafee National Youth in Transition Database; Proposed Rule


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Part 1356

RIN 0970-AC21

 
Chafee National Youth in Transition Database

AGENCY: Administration on Children, Youth and Families (ACYF), 
Administration for Children and Families (ACF), Department of Health 
and Human Services (DHHS).

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Administration for Children and Families (ACF) is 
proposing to add regulations at 45 CFR part 1356 to require States to 
collect and report data to ACF on youth who are receiving independent 
living services and the outcomes of certain youth who are in foster 
care or who age out of foster care. This proposed rule implements the 
data collection requirements of the Foster Care Independence Act of 
1999 (Public Law 106-169) as incorporated into the Social Security Act 
at section 477.

DATES: In order to be considered, we must receive written comments on 
this notice of proposed rulemaking on or before September 12, 2006.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to Kathleen McHugh, Director, Division of Policy, 
Children's Bureau, Administration on Children, Youth and Families, 
Administration for Children and Families, 1250 Maryland Avenue, SW., 
8th Floor, Washington, DC 20024. You may also transmit comments via e-
mail to CBcomments@acf.hhs.gov or electronically via the Internet at 
http://www.regulations.acf.hhs.gov. We urge you to submit comments 

electronically to ensure that we receive them in a timely manner. To 
download an electronic version of the rule, you should access http://www.regulations.gov/.
 Comments will be available for public inspection 

Monday through Friday 8:30 a.m. to 5:00 p.m. at the above address by 
contacting Miranda Lynch at (202) 205-8138.
    Comments that concern information collection requirements must be 
sent to the Office of Management and Budget at the address listed in 
the Paperwork Reduction Act section of this preamble. A copy of these 
comments also may be sent to the Department representative listed 
above.

FOR FURTHER INFORMATION CONTACT: Kathleen McHugh, Director of Policy, 
Children's Bureau, Administration on Children, Youth and Families, 202/
401-5789 or by e-mail at kmchugh@acf.hhs.gov. Do not e-mail comments on 
the Notice of Proposed Rulemaking to this address.

SUPPLEMENTARY INFORMATION: The preamble to this notice of proposed 
rulemaking is organized as follows:

I. Background

    A. Chafee Foster Care Independence Program Legislative History
    B. Statutory Requirement for a Data Collection System
II. Consultation Process
    A. Development of Outcomes
    B. Identification of Youth Characteristics and Services
    C. Data Reporting Methods and Procedures
    D. Comments on Alternative or Future Approaches
III. Overview of Proposed National Youth in Transition Database 
(NYTD)
    A. Summary of the NYTD
    B. The NYTD as a Separate Collection and Reporting Activity
IV. Section-by-Section Discussion of NPRM
V. Charts and Tables
    A. Chart 1: Outcomes and Relevant Data Elements
    B. Table 1: Example of State Sample Sizes
    C. Chart 2: Overview of Proposed NYTD
VI. Impact Analysis

I. Background

A. Chafee Foster Care Independence Program Legislative History

    Each year thousands of young people are discharged from State 
foster care systems because they reach the age at which they are no 
longer eligible for out-of-home placement services. During the early 
1980s, research and anecdotal evidence indicated that many young people 
who emancipated from foster care experienced numerous difficulties in 
their attempts to achieve self-sufficiency. Rather than making a 
successful transition to living on their own, a significant percentage 
of these youth experienced homelessness, unemployment, victimization, 
and dependence on various types of public assistance.
    In response to this problem, President Reagan signed into law the 
Title IV-E Independent Living Initiative (Public Law 99-272) in 1986. 
The law provided States with funding to make available independent 
living services to youth in foster care between the ages of 16 and 21. 
Although Public Law 99-272 increased the availability of independent 
living services for some youth in foster care, many child welfare 
researchers, practitioners, youth advocates, and policy makers at the 
Federal and State levels believed that more was necessary for youth to 
make a successful transition from foster care to self-sufficiency. To 
address these concerns, President Clinton signed the Foster Care 
Independence Act of 1999 (Pub. L. 106-169) into law on December 14, 
1999, which established the John H. Chafee Foster Care Independence 
Program (CFCIP) at section 477 of the Social Security Act (the Act). 
Compared to Public Law 99-272, the Foster Care Independence Act 
provides States with greater funding and flexibility to carry out 
programs to assist youth in making the transition from foster care to 
self-sufficiency. The legislation provides States with funding to 
identify and provide independent living services to youth who are 
likely to remain in foster care until at least age 18--thus removing 
the minimum age requirements for the receipt of independent living 
services. Public Law 106-169 also requires States to provide assistance 
and services to youth who age out of foster care, until age 21, and 
allows States to use part of their funding to provide room and board 
assistance to these youth.
    President Bush later signed the Promoting Safe and Stable Families 
Amendments of 2001 (Pub. L. 107-133) into law on January 17, 2002, 
which provides States with funding specifically for education and 
training vouchers for youth who are eligible for CFCIP services. 
Although the budget for the education and training vouchers is 
authorized and appropriated separately from the general CFCIP grants 
for independent living services, the education and training vouchers 
are integrated into the overall CFCIP program under section 477 of the 
Act.

B. Statutory Requirement for a Data Collection System

    The Foster Care Independence Act of 1999 requires ACF to develop a 
data collection system, in consultation with various stakeholders, to 
perform two functions: (1) track the independent living services States 
provide to youth; and, (2) develop outcome measures that may be used to 
assess State performance in operating their independent living 
programs. With regard to services, the Act requires us to identify data 
elements to track the number and characteristics of children receiving 
services under section 477 of the Act and the type and quantity of 
services States provide. With regard to outcomes, section 477(f)(1) of 
the Act requires that we develop outcome measures, including measures 
of educational attainment, receipt of a high school diploma, 
employment, avoidance of dependency, homelessness, non-marital 
childbirth,

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incarceration, and high-risk behaviors, and the data elements to track 
States' performance on the outcome measures.
    The law also requires that ACF impose a penalty of between one and 
five percent of the State's annual allotment on any State that fails to 
comply with the reporting requirements. ACF must base a State's penalty 
amount on the degree of noncompliance (section 477(e)(2) and (3) of the 
Act).

II. Consultation Process

    To meet the statutory mandate, we consulted with a variety of 
stakeholders over several years and gathered useful information, helped 
frame this proposed rule for a data system which we are calling the 
National Youth in Transition Database (NYTD). ACF's consultation on the 
proposed NYTD had the following objectives: (1) To identify a range or 
variety of outcomes that demonstrate that youth are making a successful 
transition from foster care to living on their own; (2) to identify 
youth characteristics and the independent living services provided to 
youth; and (3) to identify data reporting methods and procedures. In 
addition, we invited several States to conduct a pilot test of draft 
data definitions and collection procedures suggested by the 
consultation groups.

A. Development of Outcomes

    The outcomes consultation process included national discussion 
groups on generally expected outcomes for youth leaving foster care and 
involved such participants as child welfare agency administrators and 
independent living coordinators at the State, Tribal, and local levels; 
public and private agency youth service providers; technical assistance 
providers; child welfare advocates; group home staff and 
administrators; and current and former foster youth and foster parents. 
The discussion groups took place in a variety of venues, mostly led by 
ACF, our contractors and resource centers, as well as the National 
Association of Public Child Welfare Administrators. We also sought 
information from a variety of stakeholders on specific outcomes and 
measures that could become a part of the NYTD.

B. Identification of Youth Characteristics and Services

    Independent of our outcomes consultation, we consulted widely to 
identify the characteristics of youth necessary to provide a clear 
picture of who is receiving independent living services from States, 
and the type and quantity of services they receive. We held conference 
calls with independent living coordinators and information technology 
managers from several States to determine the types of data related to 
independent living services and characteristics of youth that States 
currently collect. We also requested information on what data State 
staff considered necessary to describe accurately the youth served and 
the services received, and the data that could most easily be obtained 
or reported by States.
    In addition, we formed a data work group to analyze the results of 
a pilot test of the draft proposed data elements. The data work group 
consisted of child welfare directors, independent living coordinators, 
and information systems managers from seven States and one Tribe. 
Representatives of the American Public Human Services Association 
(APHSA) and three of the Children's Bureau's National Resource Centers 
for child welfare also participated in this data work group.
    The pilot test, which was conducted in August 2001, served as a 
field test of the draft data elements, definitions, and procedures and 
provided valuable information for assessment of the data collection 
burden on the States. In each of the seven pilot States, caseworkers 
collected data about several older youth, identified any unclear 
definitions, and described any difficulties encountered while 
collecting data. Each pilot State also was asked to report the amount 
of effort required to collect the information. We used these responses 
to assess the burden for workers, and to learn if the capacity to 
report data varied significantly across agencies or States.

C. Data Reporting Methods and Procedures

    As a final step we consulted with various stakeholders on how to 
develop reporting methods and procedures for the proposed NYTD. We 
interviewed more than 25 system developers, managers, and users of the 
Adoption and Foster Care Analysis and Reporting System (AFCARS), the 
National Child Abuse and Neglect Data System (NCANDS), and the Runaway 
and Homeless Youth Management Information System (RHYMIS). This 
consultation focused on the reporting population, and how and when data 
should be collected at the State level and reported to ACF. These 
comments were important considerations in our proposals for reporting 
population, reporting frequency, and data content.

D. Comments on Alternative or Future Approaches

    As with all proposed rules, we are seeking to extend our 
consultation by requesting specific comments on what is proposed 
herein. However, throughout the preamble we have indicated some areas 
where we are interested in receiving comments on approaches that we 
have not proposed officially. We want to highlight those areas here to 
ensure that we receive sufficient comment on these issues:
     Conducting outcome data collection activities on young 
people ages 17, 19 and 21 years old (sections 1356.82 and 1356.83)
     Exploring how States can use Extensible Mark-Up Language 
(XML) to transmit data files to the NYTD (section 1356.83(h));
     Providing States with incentives to meet file submission 
and data standards in the form of a prospective penalty reduction for 
meeting certain data standards;
     Increasing the data standards for the State to obtain 
outcome information on youth over time (section 1356.85(b)(3)); and,
     Using `cross-file checks' as a factor of compliance in the 
NYTD (section 1356.85(c)).

III. Overview of the Proposed NYTD

A. Summary of the NYTD

    Please refer to the end of the preamble for a Chart 2 on the 
proposed NYTD that accompanies this section.
    As discussed in the section-by-section analysis later in the 
preamble, we are proposing that States report to NYTD four types of 
information about youth: their services, characteristics, outcomes, and 
basic demographics. In terms of services, we are proposing that States 
identify the type of independent living services or financial 
assistance that the State provides to youth. The State also will 
identify the characteristics of each youth receiving independent living 
services, such as their education level and tribal membership.
    In terms of outcomes, we are proposing that States gather and 
report information on youth who are or were in foster care that we can 
use to measure the collective outcomes of these youth and potentially 
assess the State's performance in this area. In particular, we are 
proposing that States survey young people for outcomes information who 
are or were previously in foster care, regardless of the independent 
living services they are receiving or received. States will collect 
information on these youth at three specific intervals: on or about the 
youth's 17th

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birthday while the youth is in foster care; two years later on or about 
the youth's 19th birthday; and again on or about the youth's 21st 
birthday. States must report on 19- and 21-year-olds who participated 
in data collection at age 17 while in foster care, even if they are no 
longer in the State's foster care system or receiving independent 
living services at ages 19 and 21. States will collect outcome 
information on a new cohort of youth (17-year-olds in foster care) 
every three years.
    We are proposing that the State survey youth regarding six outcomes 
that came out of our consultation and are consistent with the law's 
mandate. Those six outcomes focus on the youth's financial self-
sufficiency, experience with homelessness, educational attainment, 
positive connections with adults, high-risk behavior, and access to 
health insurance. States will gather information on young people such 
as: whether the youth is employed; whether the youth is receiving 
public and/or other types of assistance; a youth's educational 
achievement levels; whether a youth has been incarcerated; and a 
youth's marital and parenting status. We will not use the data to 
assess the progress of individual youth; rather, we propose to use the 
information to assess the collective outcomes of youth and potentially 
evaluate State performance with regard to those outcomes.
    Finally, we also are proposing that States identify basic 
demographic information, such as sex and race of each youth in the 
reporting population.
    States will report all four types of information (services, 
characteristics, outcomes, and basic demographics) to the NYTD semi-
annually, on a Federal fiscal year basis. ACF will evaluate a State's 
data file against file submission and data compliance standards 
designed to ensure that we have quality data on our target reporting 
populations. States that fail to achieve any of the compliance 
standards for a reporting period will be given an opportunity to submit 
corrected data to us. If a State's corrected data does not comply with 
the data standards, the State will be subject to a penalty of between 
one and five percent of the State's annual CFCIP funding, depending on 
the level of noncompliance.
    Implementation of NYTD will be dependent on the issuance of a final 
rule. We anticipate giving States approximately one year from the 
publication of the final rule before we will require them to collect 
and report data. States may use their CFCIP funds to develop and 
support any changes to their information systems to collect and report 
information to NYTD. States with a Statewide Automated Child Welfare 
Information System (SACWIS) may claim appropriate costs under title IV-
E, if the changes to their SACWIS to meet NYTD requirements are 
consistent with an approved advanced planning document (APD) and cost 
allocation plan.
    Finally, we would like to note that we are not proposing 
performance standards for States in this NPRM. Rather we are proposing 
outcome measures and the data elements that will track those outcomes. 
While we have not decided definitively to develop standards, we believe 
that we can only develop standards once States begin to report data to 
the NYTD, thus giving us a basis for establishing standards.

B. The NYTD as a Separate Data Collection and Reporting Activity

    With this NPRM we are proposing a new Federal database of 
information on youth who are receiving independent living services and 
the outcomes of older youth who are in foster care and those that leave 
foster care. Although we considered the requests of some consultation 
participants to fold the data requirements for the CFCIP into one of 
ACF's existing child welfare national databases, we decided against 
doing so because: (1) The proposed NYTD reporting population is 
significantly different than the reporting populations of other 
databases; (2) we can link a youth's foster care experience with their 
independent living information between data systems without combining 
databases; (3) combining databases does not reduce the cost or burden 
on States or the Federal government; and (4) the different authorizing 
statutes and penalty structures do not lend themselves to combining the 
databases.
    States currently send data to two central, child welfare databases 
that are maintained by the Children's Bureau: the National Child Abuse 
and Neglect Data System (NCANDS) and the Adoption and Foster Care 
Analysis and Reporting System (AFCARS). States report information 
voluntarily to NCANDS about reports of child abuse and neglect and the 
child protective services agency response to these allegations (see 
sections 103(c) and 106(d) of the Child Abuse Prevention and Treatment 
Act, as amended). A vast majority of children whom States report to 
NCANDS never enter foster care, or return home from foster care long 
before they are likely to age out of the foster care system. Because of 
the voluntary nature of NCANDS and the broader scope of the reporting 
population, we do not believe it is an appropriate mechanism to capture 
information on youth receiving independent living services or their 
outcomes.
    States are required by law and regulation to submit data to AFCARS 
on all children in foster care or adopted with the involvement of the 
State child welfare agency (see section 479 of the Act and 45 CFR 
1355.40). Nearly all youth who will receive independent living services 
are or once were in a State's foster care system (with the exception of 
some youth who may be served through an Indian tribe or privately 
operated foster care program), so the AFCARS population more closely 
tracks that of the proposed NYTD than does the NCANDS population. 
However, the population of older youth ages 19 and 21 on whom we are 
seeking independent living outcome information are not often reported 
in AFCARS, because States are required to report on only children in 
foster care who are typically youth under 18. Further, while States do 
provide ACF with information about these youths' foster care 
experiences and demographic information as part of their AFCARS 
submissions, AFCARS currently does not collect any information on 
independent living services or outcomes specific to these youth.
    Despite the disparate reporting populations, we considered whether 
adding an independent living component to AFCARS would prove beneficial 
to States and ACF. One purported benefit of a combined submission is 
that States would combine information on a youth's foster care 
experience, services and outcomes into a single report. However, we can 
achieve this goal with the separate database we propose here. This is 
because we are proposing that States identify youth reported to NYTD in 
the same way they do for AFCARS, so that we can associate information 
between the two databases. We expect, therefore, to lay the groundwork 
for analysis of a broader picture of the experiences that youth have in 
and after leaving foster care.
    Another potential benefit of a combined submission pointed out 
during consultation is that States would not have to repeat some of the 
basic demographic information for youth who are or were previously in 
their foster care system. Some believed that avoiding this kind of 
duplication would reduce the cost for States of this new data 
collection effort. However, although some of the proposed NYTD elements 
at first glance may appear to be identical to AFCARS elements, they are

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in fact defined differently so that we can achieve the law's purpose of 
understanding a youth's services and independent living outcomes versus 
their foster care experience. Therefore, only three demographic 
elements (race, sex and date of birth) are duplicates. Since we 
understand that States store this demographic information in their 
information systems, the only duplicated effort is in the State 
compiling it into another report to ACF.
    Moreover, combining the reporting files does not substantially 
lower the amount of effort a State will expend to change its practices 
to gather the information we are proposing they collect. For example, 
requiring the State to send an additional file with information 
specific to independent living to AFCARS will not decrease the State's 
burden in changing its information systems to collect services 
information, training and requiring caseworkers or service providers to 
record information on youth services, and implementing a strategy to 
collect outcome information from older youth. Similarly, we do not 
believe that combining the databases saves the Federal government any 
costs to store or analyze the data, or conduct technical assistance and 
oversight activities.
    Finally, the authorizing statutes for AFCARS and the proposed NYTD 
are very different, requiring different approaches to compliance and 
penalties. Section 474(f) of the Act mandates that we penalize States a 
portion of their title IV-E administrative funds spent on foster care 
for not complying with AFCARS requirements, and requires us to continue 
to penalize a State for the period of the noncompliance. Section 477 of 
the Act requires us to penalize States that do not comply with the data 
collection effort in the amount of one and five percent of their annual 
Chafee funds, depending on the extent of noncompliance. Therefore, to 
meet these separate requirements and penalty schemes, AFCARS 
information would have to remain distinguishable from the independent 
living information to an extent that renders combining the two 
databases meaningless.
    We believe that keeping the information collected separate from 
AFCARS will help us highlight the experiences of youth transitioning 
into independent living and will not disrupt State and Federal efforts 
to improve the quality of AFCARS data. Furthermore, many State managers 
of the Statewide Automated Child Welfare Information System, those 
individuals who would be tasked with developing a system that adheres 
to NYTD and AFCARS requirements in the State, preferred to send a 
separate data submission to ACF.

IV. Section-by-Section Discussion of NPRM

    We propose to add new sections 1356.80 to 1356.86 as follows:

Section 1356.80 Scope of the National Youth in Transition Database

    Under proposed section 1356.80, any State, the District of 
Columbia, or Territory that administers a Chafee Foster Care 
Independence Program (CFCIP) under section 477 of the Social Security 
Act must comply with the requirements for data collection and reporting 
as described in this proposed rule. Currently, all States, the District 
of Columbia and Puerto Rico operate CFCIP programs.

Section 1356.81 Reporting Population

    The NYTD reporting population is comprised of three groups of 
youth: the served, baseline and follow-up populations. They are defined 
further below.
    In paragraph (a), we identify the served population as those youth 
who have received any independent living services paid for or provided 
by the CFCIP agency during the reporting period. The CFCIP agency is 
the same agency as the title IV-B/IV-E agency in the State.
    We have chosen to include in the served population youth who 
receive services that the CFCIP agency makes available, rather than 
just those that are paid for with CFCIP funds specifically. Also 
included in this definition are youth who may obtain an independent 
living service from a source other than the CFCIP agency directly, if 
that service was paid for by the CFCIP agency. For example, the served 
population includes tribal youth who receive services through a tribal 
child welfare agency under a contract or agreement with the State CFCIP 
agency to provide independent living services. We realize that this 
definition is more expansive than that suggested by the statute (see 
section 477(f)(1)(B) of the Act). However, we believe that capturing 
information about all independent living services offered by the 
State's CFCIP agency gives a more complete picture of how each State 
supports youth transitioning into independent living. Moreover, we 
learned through consultations that while States may keep track of 
independent living services that are provided by the agency, many do 
not have systems in place to track a service back to a particular 
Federal funding source.
    We considered proposing that the served population include only 
those youth who are in the State's foster care system, or who have 
previously been in foster care, and are currently receiving independent 
living services from that same State. While most youth who receive 
independent living services from a State have been in foster care in 
that State, some have not. We originally believed that the advantage of 
including only youth who had been in the State's foster care system is 
that the State already would have a case record on these youth that 
included demographic and perhaps, service information. Upon further 
review, however, we grew concerned that we would exclude information 
about the independent living services of youth who were not in this 
limited population. In particular, this definition would not include an 
Indian tribal youth who was never in a State's foster care system, but 
who was receiving independent living services provided by the State's 
CFCIP agency through a contract or agreement with his or her Tribe. 
Since section 477(b)(3)(G) of the Act requires States to serve Indian 
children on the same basis as other youth in the State, we believe it 
is important to include them in the served population. Additionally, a 
limited definition of the served population would exclude youth who may 
move to another State after their tenure in foster care. Therefore, we 
kept the definition broad to better reflect the characteristics and 
number of youth receiving independent living services.
    We also considered requiring States to collect and report services 
information on any youth who is currently in a State's foster care 
system, regardless of whether he or she receives independent living 
services. In other words, States would report information that told us 
which youth are receiving services and what those services are as well 
as which youth are not receiving any services. We considered this 
option originally because it would give us information about the 
characteristics of those youth who were in foster care but were not 
receiving independent living services. Ultimately, we rejected this 
approach because the statute's mandates regarding service information 
are that States provide the number and characteristics of children 
receiving services only (section 477(f)(1)(B)(i) of the Act). As we 
refined the definition of the served population, we came to believe 
that requiring States to report services information on each youth in 
foster care went well beyond the statutory requirements and would pose 
an unnecessary burden on States.

[[Page 40350]]

    We also considered establishing a minimum age of 14 for the served 
population. This option was particularly applicable when we considered 
having a served population that included all youth currently in the 
State's foster care system, regardless of whether the youth received 
independent living services. Without a minimum age, this broad 
definition would have encompassed all youth who were in foster care, 
including very young children. Therefore, establishing this minimum 
would help keep State's data collection burden down. Once we revised 
the definition of the served population to include only those youth who 
receive independent living services, a minimum age was not necessary. 
We also did not see a justification to regulate beyond the requirements 
of the statute, which does not include a minimum age for receipt of 
CFCIP services.
    In paragraph (b), we identify the baseline population as all 17-
year-old youth in foster care during a Federal fiscal year for the 
purpose of collecting outcome information. We are referring to these 
youth as the baseline population because we intend to look at cohorts 
of older youth over time, beginning at the point that a cohort turns 
age 17 while in foster care. As such, the 17-year-olds represent the 
starting point or ``baseline'' of our information on youth's 
independent living outcomes and experiences. When we collect additional 
information on these youth as they age (at 19 and 21), we refer to them 
as the follow-up population, which we will describe further below. We 
are requiring that States collect outcome information on the baseline 
population, along with the follow-up population in response to the 
statutory requirement that we develop data elements that are needed to 
track State performance on youth outcomes. The statute's provisions on 
outcomes are quite broad, leaving the decisions on how and on which 
youth we collect outcomes information up to ACF in consultation with 
stakeholders. After our consultation, we believed that surveying the 
same youth over time would best meet our needs of understanding trends 
in youth outcomes and potentially assessing the effect that a State's 
independent living services have on those youth outcomes.
    We settled on proposing 17-year-olds in foster care for whom we 
would initially collect outcome information as the baseline population 
after considering a number of other proposals. We considered defining 
the initial outcome collection or baseline population as all youth who 
were discharged from foster care at age 16 or older. The primary reason 
for considering 16-year-olds or older youth at the point of discharge 
as the baseline population was so we could have information on how 
prepared youth are for independent living at the time they leave foster 
care. However, participants in the consultation process noted several 
difficulties with using the point of discharge. First, States 
emancipate youth at varying ages, ranging from 18 to 23 depending on 
State policy and the circumstances of the youth. Consequently, using 
the point of discharge for youth age 16 and older as a basis for 
defining our baseline population would result in a group of youth who 
ranged in age from 16 to 23 across the States. We determined that 
because some of the outcomes, such as educational attainment, are 
strongly influenced by age and developmental status, it was important 
to establish consistency by defining a baseline population that 
included youth of the same age. An additional difficulty with defining 
the baseline population in terms of the point of discharge is that 
``discharge'' is defined differently across States and it would be 
difficult to develop a single definition that would accommodate this 
variation. Also, some youth leave their placements before formal 
discharge, sometimes because they run away or are detained on 
delinquency charges, and thus are not available for discharge 
interviews. For these reasons, we decided to define the baseline 
population, in part, on a fixed age rather than a fluid measure such as 
the youth's exit from foster care.
    We also considered a baseline population that would be fixed at the 
youth's 17th birthday but required that the youth have been in foster 
care for a specific length of time, such as six months or 12 months. We 
thought that establishing a minimum time in foster care would ensure 
that youth were in foster care long enough to receive independent 
living services. However, we decided not to require a minimum length of 
time in foster care because that approach overly complicated the data 
collection without a measurable benefit or clear basis of the 
appropriate minimum length of time.
    Ultimately, we chose to look at the outcomes of all 17-year-old 
youth in foster care. We chose 17 as the age for our baseline 
population because it was close to the age when most youth leave foster 
care for independent living (between ages 17 and 19). We also chose to 
look at all 17-year-olds in foster care, as opposed to youth who 
actually had received independent living services. We are able to look 
at all 17-year-olds because the statute's provisions regarding outcome 
information do not limit us to those youth who are receiving 
independent living services. Moreover, we believe it is important to 
capture information on both youth who receive services and those who do 
not in determining youth outcomes and assessing State performance.
    In paragraph (c), we identify the follow-up population as young 
people who turn age 19 or 21 in a fiscal year and who participated in 
the State's data collection as part of the baseline population (i.e., 
at age 17). A youth is considered to have participated as part of the 
baseline population if the State collected and reported a valid 
response (i.e., a response other than ``declined'' and ``not 
applicable'') to any of the outcome-related elements (described later 
in 45 CFR 1356.83(g)(38) through (g)(60)). The follow-up population is 
not limited to youth who are still in foster care, or who are receiving 
independent living services in the State at those later ages.
    In establishing a follow-up population in order to look at 
outcomes, we first wanted to ensure that the follow-up population would 
include at least some young people who are no longer in foster care. 
Including young people who have been discharged from foster care is 
important because we must look at some outcomes required by the law, 
such as homelessness, that cannot be assessed until after youth have 
been discharged. We learned through the consultation process that 
stakeholders are interested in whether youth who remain in foster care 
fare better than their counterparts who have left foster care. We 
considered restricting the follow-up population for outcome information 
to youth who had been discharged from foster care and who were 
continuing to receive independent living services. Based on information 
from participants in the consultation process, however, we determined 
that this restriction was not appropriate because it was too limited to 
assess adequately the performance of the States in operating 
independent living programs.
    We then considered what would be reasonable points at which to 
evaluate how youth were progressing on the outcome measures that were 
most critical to a youth's successful transition to independent living, 
and also feasible for States to follow.
    We chose age 21 as the upper boundary for outcomes collection 
primarily because the Chafee law requires that States provide 
independent living services up to that age. Even though we also are 
capturing information on youth who may not necessarily benefit from 
Federal Chafee

[[Page 40351]]

funds, we expect that the Chafee funding will guide many of the 
services that States provide. Also, although age 18 is considered the 
age of majority in most States, many stakeholders pointed out that 
mainstream society often does not expect youth to be fully self-
sufficient until age 21 or later. We thought, therefore, that looking 
at youth at age 21 was a reasonable point to focus on final outcomes 
for our purposes, although we acknowledge that reaching adulthood is a 
process rather than an event that we expect to occur by a specific age. 
We considered an even later age such as age 23, since the education and 
training vouchers authorized under section 477 of the Act allow a State 
to continue to provide vouchers to that age in certain circumstances. 
However, we believe that for those young people who are not receiving 
vouchers, it is even more likely that at age 23, they will decline to 
participate in data collection than youth at age 19 or 21 who are not 
receiving services. Furthermore, with the passage of time the State 
agency will have lost contact with the youth after the youth's 
emancipation or last receipt of independent living services.
    After determining this upper boundary, we considered whether we 
needed another point in time to assess youth for outcomes. We believe 
that having an interim age for follow-up would allow States to preserve 
the sample by keeping in contact with youth who have aged out of foster 
care. More importantly, looking at outcomes at an interim age can give 
us further insight into youth's developmental pathways. In looking at 
youth outcomes at a variety of ages, we can better observe how youth 
are making the transition to adulthood and self-sufficiency. We chose 
age 19 in particular because it was halfway between the initial 
outcomes collection and the upper boundary, but also because it is an 
age when there are still some youth who are in foster care (there are 
over 10,000 youth age 19 and older according to AFCARS) or receiving 
independent living services from the State.

Section 1356.82 Data Collection Requirements

    In this section, we detail the proposed data collection 
requirements. As used here, data collection refers to the State's 
process for obtaining information that meets the data requirements for 
each youth in the reporting population.
    In paragraph (a)(1), we propose that a State collect information 
for the applicable data elements on each youth for each reporting 
period in which the youth receives independent living services. In 
other words, we are requiring that States collect detailed, client-
level data for as long as the youth receives independent living 
services.
    We chose to propose that States collect client-level data on 
services, rather than aggregate data because of the utility of client-
level data. Client-level data supports more sophisticated analysis of 
the services provided to youth and the characteristics of the youth who 
receive them. For example, with the client-level data proposed here we 
can analyze youth receiving employment services by age, gender and 
location. Aggregate- or program-level data provides only general totals 
of services and characteristics and descriptions of the States overall 
independent living program. While aggregate data often is less 
burdensome for States to collect, we do not believe that aggregate data 
will adequately assist us in meeting the law's objectives to develop 
outcome measures.
    Unlike data collection for a youth in the State's baseline or 
follow-up population, which is conducted at specific times according to 
a youth's age, we propose that the State's data collection for a youth 
in the served population will continue for as long as the youth 
receives services. We are mindful that each State must coordinate with 
service providers in order to track and collect information about youth 
receiving independent living services accurately. During consultation 
we heard from State participants that they had anticipated tracking 
independent living services on an ongoing basis in response to the law 
and their own State needs, and that this approach would not pose a 
significant additional burden.
    In paragraph (a)(2), we propose that the State collect outcomes 
information on the baseline population (17-year-olds in foster care) by 
surveying the youth. Again, we chose case-level data rather than 
aggregate data because case-level data better lends itself to analysis. 
We will require States to collect information on a new baseline 
population every three years. We chose this schedule, rather than 
annually in order to avoid imposing an unnecessary burden on States. 
Participants in the consultation process pointed out that youth 
outcomes generally do not change substantially from year to year, and 
collecting outcome data every three years should be sufficient to 
document trends and address the legislative requirements. We propose 
that States begin to collect outcomes data on the baseline population 
in the first fiscal year of implementation of the NYTD system in 
paragraph (a)(2)(i). As stated in paragraph (a)(2)(ii), States will 
then collect outcomes on a new baseline population every three years 
thereafter.
    We also are proposing that the State collect outcome information 
within 45 days following the youth's 17th birthday, but not before that 
birthday. We allow 45 days to collect the data, rather than requiring 
data collection on each youth's birthday, to reflect real-life tracking 
and scheduling constraints. We also want to impose this time frame to 
ensure that the youth are as close as possible to the same age--i.e., 
all have recently attained their 17th birthdays--to make them 
comparable on that characteristic. This is particularly important in 
understanding certain outcomes, such as the youth's highest educational 
certification level received which is age-sensitive. Finally, we want 
to make sure that States obtain outcome information on the greatest 
number of 17-year-olds in foster care possible, rather than leaving it 
until later in the year when the youth may leave foster care 
voluntarily or otherwise be engaged in a number of activities in 
preparation for discharge.
    We want to note that by giving States 45 days to collect 
information on 17-year-olds, we realize that States may not collect 
information on youth whose birthdays fall at the end of any given 
fiscal year (i.e., in September) at the same rates as youth with other 
birth dates. We acknowledge that this is not an ideal situation, but we 
believe that giving States a sufficient window of opportunity to 
collect information on youth is preferable to ensure that all 17-year-
old youth are captured.
    In paragraph (a)(2)(iii), we direct States to the survey in 
Appendix B of the proposed regulation that States are to administer to 
youth in the baseline population. We chose to regulate this survey to 
ensure that each youth is provided with standard questions and response 
options, which will improve the consistency of the information 
collected nationwide. We are not, however, regulating the manner in 
which States administer the survey. Therefore, States are free to 
administer the survey questions to youth in person or over the phone, 
through the mail or email, using automated-surveys over the internet, 
or via any other suitable method.
    In paragraph (a)(3), we propose that States collect information on 
each youth in the follow-up population during the reporting period that 
the youth turns ages 19 and 21. We chose the six-month reporting period 
time frame because we are interested in getting timely information on 
the older youth. We originally considered a 45-day time

[[Page 40352]]

frame for States to collect outcomes information on these older youth 
as well, but do not believe that education information collected on 
older youth is as time-sensitive as it is for 17-year-olds. Moreover, 
we believe that for those 19- and 21-year-olds who are no longer in 
foster care, we are likely to get more complete outcome information if 
we allow States adequate time to locate these youth. States will need 
to institute appropriate procedures to contact youth who may turn 19 
and 21 near the end of a reporting period early enough to ensure that 
the State is able to collect the outcomes information in the required 
time frame.
    Since the State collects information on a new baseline population 
every three years rather than every year, data collection on follow-up 
populations will occur only in years with no data collection on 
baseline populations. That is, in any given year, data collection for 
outcomes will occur on only one group of youth, as shown in the table 
below.

----------------------------------------------------------------------------------------------------------------
                                                                            Reporting population
                                                           -----------------------------------------------------
                    Implementation year                         Baseline                   Follow-up
                                                           -----------------------------------------------------
                                                              17-year-olds      19-year-olds      21-year-olds
----------------------------------------------------------------------------------------------------------------
1.........................................................         [bcheck]   ................  ................
2.........................................................  ................  ................  ................
3.........................................................  ................         [bcheck]   ................
4.........................................................         [bcheck]   ................  ................
5.........................................................  ................  ................         [bcheck]
6.........................................................  ................         [bcheck]   ................
7.........................................................         [bcheck]   ................  ................
8.........................................................  ................  ................         [bcheck]
----------------------------------------------------------------------------------------------------------------

    As stated earlier, we considered a number of different options for 
collecting information on outcomes for older youth before proposing 
here that States gather outcome information on a wide range of youth, 
some of whom may no longer be in foster care or even receiving 
independent living services. We understand that this approach requires 
States to keep contact information on a youth before leaving foster 
care and develop various systems to track a youth's whereabouts once 
the youth no longer has regular contact with the child welfare/CFCIP 
agency. We expect that for many States this type of follow-up with 
youth who have left the system will be new and challenging. We are, 
therefore, publishing a draft technical assistance document on the 
Children's Bureau's Web site (http://www.acf.hhs.gov/programs/cb). We 

hope that this document will provide commenters with an understanding 
of the various methods that States can use to track youth and a sense 
of the effort that doing so entails. Further, we anticipate providing 
States with technical assistance to help them develop their tracking 
methods during implementation of the proposed NYTD.
    In paragraph (b), we propose to allow the State to select a sample 
of youth from the baseline population of 17-year-olds who participated 
in outcome data collection to track over time. The youth selected for 
the sample will then comprise the follow-up population of 19- and 21-
year-olds. The sampling procedures are discussed in section 1356.84. 
This proposal is in direct response to feedback during the consultation 
process that requested that any survey of outcomes for youth who had 
left foster care utilize sampling to mitigate the burden of tracking 
youth for most States.
    We welcome comments on the feasibility of collecting data on 17-, 
19- and 21-year old young people as outlined in this section.

Section 1356.83 Reporting Requirements and Data Elements

    Reporting periods and deadlines. In paragraph (a), we propose that 
each State must submit a data file containing a record for each youth 
in the reporting population on a semi-annual basis. The term ``data 
file'' refers to the entire package of information that a State reports 
to ACF each reporting period.
    We had considered a 12-month reporting period, but felt that a 
longer period may increase the risk of inaccurate or missing data. 
Further, since we want to preserve our ability to analyze NYTD data 
along with AFCARS data, we wanted comparable reporting periods. 
Finally, during consultation, States informed us that semi-annual 
reporting does not impose an undue burden on their resources, since the 
majority of the burden is in collecting services and outcomes 
information which remains an ongoing activity regardless of the length 
of the reporting period.
    In paragraph (a) we also propose that the NYTD reporting periods 
extend from October 1 to March 31 and from April 1 to September 30 of 
each Federal fiscal year. These periods are the same as the AFCARS 
reporting periods. We propose that a State must submit its NYTD file 
within 45 days of the end of the reporting period. We believe that 45 
days will give a State sufficient time to compile NYTD data for 
submission based on our experience with AFCARS which also has a 45-day 
submission period.
    Data elements for all youth. In paragraph (b), we propose that a 
State report 13 data elements (see paragraphs (g)(1) through (13)) for 
each youth in the reporting population, regardless of their status in 
the served, baseline, or follow-up subpopulations. These elements 
require States to gather information that identify the State, the 
youth, and provide basic youth demographics. Most of these data 
elements need only be collected once from a youth or extracted from the 
State's case management information system (e.g., date of birth, sex, 
race), but we propose that a State report these data to us in every 
reporting period during which the youth appears in the reporting 
population to ensure accurate records.
    Data elements for served youth. In paragraph (c), we propose that a 
State report 19 elements (see paragraphs (g)(14) through (g)(33)) for 
each youth in the served population. These elements are in addition to 
the basic demographic elements required in paragraph (b). The majority 
of these data elements relate to the actual services and assistance 
that the State provides to the youth. Some of these data elements, 
however, require a State to record additional characteristics of the 
youth who are receiving services, including the youth's special 
education status and educational level, and whether or not the youth 
has been adjudicated delinquent or belongs to an Indian tribe. We 
believe these additional characteristics will allow us to analyze any 
service or outcome differences for particular groups of youth.

[[Page 40353]]

    Data elements for baseline and follow-up youth. In paragraph (d), 
we propose to require the State to report the outcome-related data 
elements (see paragraphs (g)(34) through (g)(60)) on each youth in the 
baseline population. These elements are in addition to the basic 
demographic elements required in paragraph (b). These data elements 
pertain to the six outcomes that we have made the focus of this data 
collection activity. Similarly in paragraph (e), we propose these same 
outcome-related elements for each youth in the follow-up population.
    Single youth record. In paragraph (f), we propose that a State 
report to us all applicable data elements for a youth in a single 
record per reporting period. The term ``record'' is used to represent 
all the data associated with a single youth that is submitted in the 
State's data file. The file will contain one record for each youth who 
is in at least one of the three NYTD subpopulations: served, baseline, 
or follow-up population. For example, if a youth is in the served 
population in a reporting period, then the State's data file would 
contain a record for this youth that reports the basic demographic, 
characteristics and service data elements (i.e., the record would 
contain valid responses for the elements described in paragraphs (g)(1) 
through (g)(33) and contain no responses for the elements described in 
paragraphs (g)(34) through (60)). In the next reporting period, if the 
same youth is still in the served population, but now is also in the 
baseline population, the State's file would contain one record for this 
youth that reports all data elements (paragraphs (g)(1) through 
(g)(60)).
    Data element descriptions. Paragraph (g) describes all of the data 
elements. The definitions of each element include the acceptable values 
or valid response options.
    State. In paragraph (g)(1), we request information on the State 
that is reporting the youth to the NYTD. The State must use the numeric 
Federal Information Processing Standards (FIPS) code to identify 
itself. We use the FIPS code because it is a standard issued by the 
National Institute of Standards and Technology (NIST) to ensure uniform 
identification of geographic entities through all Federal government 
agencies. The State is also required to use this standard for AFCARS 
reporting purposes.
    Report Date. In paragraph (g)(2), we propose that a State indicate 
the reporting period date. Specifically, States are to report to us the 
last day of the month that corresponds with the end of the reporting 
period, which will always be either March 31 or September 30 of any 
given year. This information allows us to identify all youth records 
for the same reporting period.
    Record Number. In paragraph (g)(3), we propose that a State report 
the youth's record number, which is a unique, encrypted person 
identification number. The State must apply and retain the same 
encryption routine or method for the person identification number 
across all reporting periods. The State's encryption methodology will 
need to meet any ACF specifications we prescribe through policy.
    Encryption will ensure that the youth's identity is kept 
confidential. Although encryption is one of a number of methodologies 
that a State can use to code confidential information, we are requiring 
encryption as opposed to other methods of ensuring the confidentiality 
of the identity of the children, such as sequential numbering, because 
it is secure and easier than other methods for States to cross-
reference records for identification at a later date. For example, 
encryption protects a child's sensitive information by masking the 
State or local agency's person identification number from Federal 
staff, researchers or other persons who may come into contact with the 
data the State submits to ACF. In practice, a State encrypts a record 
number by applying a mathematical formula known as an algorithm to code 
the numbers. The State reveals the original person identification 
number by applying the reverse mathematical formula, a process known as 
decryption. The State ensures confidentiality by keeping the 
mathematical formula secure and limiting access to the formula to 
authorized persons only.
    Encryption also is more efficient than some other methods because 
the State need only safeguard the decryption key, not a whole list of 
numbers which cross walk between the masked identification number and 
the real record number. In addition, the vast majority of States use 
encryption methods already in reporting information to AFCARS. The few 
States that do not use encryption currently have indicated to ACF that 
they intend to use encryption in the near future. We believe, 
therefore, that requiring an encryption method will involve a minimal 
burden to States.
    In subparagraph (g)(3)(i), we require States to use the same person 
identification number for NYTD that they use for AFCARS when a youth 
has been in the State's foster care system. As discussed earlier, we 
believe that by requiring States to use the same person identification 
number for youth in foster care and those receiving independent living 
services, we will lay the groundwork for associating information 
between AFCARS and NYTD. We believe that States share our interest in 
having the capacity to analyze a youth's additional demographic 
information and placement history in AFCARS, where it exists, for the 
purposes of further understanding independent living services and 
outcomes.
    For these associations to be made, however, States must also use 
the same person identification number for youth regardless of whether 
or where the child is in foster care or receiving independent living 
services in the State and use the same number for every episode of 
foster care or service receipt. The consistency in assigning person 
identification numbers and the encryption method will allow States and 
ACF to make associations between a youth's experiences over time and 
will allow us to develop annual files from the two six-month reporting 
periods and perform case-level longitudinal cohort analyses.
    Although we are not requiring so here, we strongly encourage States 
to also use the same person identification number in the NYTD (and 
AFCARS) that they may use for NCANDS reporting purposes. Again, we 
believe that States will find that making associations across the 
various child welfare databases will increase their ability to analyze 
the data for program and policy purposes.
    In subparagraph (g)(3)(ii), we specify that for youth who were 
never in the State's foster care system, the State must assign a person 
identification number for the youth and use it consistently for as long 
as the youth receives independent living services. This would be the 
case for a youth who is in the served population currently, but who is 
(or was previously) in tribal or private foster care, or for a youth 
who moves across State lines after leaving foster care. We are not 
requiring States to seek out the original record number of a youth who 
was in foster care or received independent living services in another 
State or who was in the placement and care responsibility of a private 
or tribal foster care system. We believe that the burden and cost to 
States of finding this information and working through the 
inconsistencies between States' number assignment, confidentiality 
policies and encryption methods is prohibitive and outweighs the 
usefulness of the data. As a result, States and the Department will be 
unable to associate information on youth's entire foster care and 
independent living experience when the child is served by more than one 
State or tribal child welfare agency.

[[Page 40354]]

    Date of birth. In paragraph (g)(4), we ask the State to report the 
youth's date of birth. This information will allow us to capture the 
youth's age and also determine whether the State collects outcome 
information for a youth within the required time frame (see section 
1356.85 on compliance for more information).
    Sex. In paragraph (g)(5), we ask States to report the gender of the 
youth. This information will help us analyze the services and outcomes 
for youth by gender.
    Race. Paragraphs (g)(6) through (g)(12) request information on the 
youth's race. The racial categories of American Indian or Alaska 
Native, Asian, Black or African American, Native Hawaiian or Other 
Pacific Islander, and White listed in paragraphs (g)(6) through (g)(10) 
are consistent with the Office of Management and Budget's (OMB) 
standards for collecting information on race (see OMB's Provisional 
Guidance on the Implementation of the 1997 Standards for Federal Data 
on Race and Ethnicity, at http://www.whitehouse.gov/omb/inforeg/re_guidance2000update.pdf
 for more information). Each racial category is a 

separate data element to represent the fact that the State is required 
to allow the youth to identify with more than one race. Consistent with 
the OMB standards, self-reporting or self-identification is the 
preferred method for collecting data on race and ethnicity. This means 
that States are to allow a youth or his/her parent(s) to determine the 
youth's race.
    If the youth's race is unknown, the State is to indicate so as 
outlined in paragraph (g)(11). It is acceptable for the youth or parent 
to indicate that the youth identifies with more than one race, but does 
not know one of those races. In such cases, the State must indicate the 
racial categories that apply and also indicate that a race is unknown. 
Finally, if the youth or parent declines to identify the youth's race, 
the State must indicate that this information was declined as outlined 
in paragraph (g)(12).
    Ethnicity. In paragraph (g)(13), we propose that a State report the 
Hispanic or Latino ethnicity of the youth. Similar to race, these 
definitions are consistent with the OMB race and ethnicity standards. 
Also, the State may report whether the youth's ethnicity is unknown or 
whether the youth has declined to provide this information.
    In the group of data elements in paragraphs (g)(14) through 
(g)(33), we propose that a State report information on the 
characteristics of youth and services provided by the State for the 
served subpopulation (as defined in section 1356.81).
    Foster care status--services. In paragraph (g)(14) we propose that 
a State indicate whether a youth receiving services was in foster care 
at any point during the reporting period, consistent with our 
programmatic definition of foster care in the regulations at 45 CFR 
1355.20. For the purposes of this element, a youth is in foster care if 
the State title IV-B/IV-E agency had placement and care responsibility 
for the youth and the youth was in 24-hour substitute care away from 
his or her parents or guardians at any point during the reporting 
period. This element will aid our analysis of how States provide youth 
in foster care with services versus those that have left foster care.
    Local agency. In paragraph (g)(15), we propose that a State report 
the data element local agency. For youth in foster care, States must 
report the county or equivalent jurisdictional unit that has primary 
responsibility for the youth's placement and care. If the youth is not 
in foster care, a State must report the county with primary 
responsibility for providing services to the youth. A State may report 
multiple local agencies if more than one agency meets this element 
description. If a centralized unit is responsible for the youth's 
services rather than a local agency, then the State must report this 
information. This element does not apply to youth who are being 
surveyed for outcome information only.
    This element is only relevant for youth who are in the served 
population because our primary goal is to determine which local 
jurisdiction has responsibility for providing the youth with 
independent living services. We hope to be able to use this information 
to analyze whether there are any particular geographical strengths or 
barriers to a youth receiving independent living services in the State. 
We struggled with how to describe this data element given the variety 
of venues in which youth receive services. The youth's county of 
residence may not correspond with the jurisdiction that is providing 
services. For example, a youth may have emancipated from State A and 
have an education and training voucher from State A which the youth is 
using to attend college in State B. Or, a youth may have moved from one 
county to another within the State during a reporting period and have 
received independent living services from both counties. We determined 
that for the purposes of this data collection effort, where the youth 
is receiving services is secondary to the jurisdiction that is 
providing the services.
    Tribal membership. In paragraph (g)(16), we propose that a State 
report whether a youth receiving independent living services is 
enrolled in or eligible for membership in a federally recognized Tribe. 
The State already may have this information if the youth was in foster 
care in the State, or the State can ask the youth whether or not he/she 
belongs to a federally recognized Tribe.
    We consider a youth's tribal membership important because section 
477(b)(3)(G) of the Act specifically requires each State to certify 
that ``benefits and services under the programs will be made available 
to Indian children in the State on the same basis as to other children 
in the State.'' The statute's explicit inclusion of tribal youth 
extends services not only to those Indian youth who are in a State's 
foster care system, but to all youth who may be in tribal custody or 
are otherwise eligible for services under this program.
    The definition of this element uses the same definition of Indian 
tribe in the Indian Self-Determination Act and regulations published by 
the Bureau of Indian Affairs (BIA) within the Department of Interior. 
States may consult the BIA's list of federally recognized tribes 
published in the Federal Register most recently on November 25, 2005 
(70 FR 71193) or contact the BIA to determine whether a Tribe is 
federally recognized.
    During the consultation process, child welfare experts and 
advocates for Indian children emphasized that identifying Indian youth 
will help us learn about characteristics and services specific to this 
subpopulation. Experts and advocates also pointed out that requiring 
States to report tribal membership would help raise State agencies' 
awareness about the importance of identifying tribal youth.
    We considered various ways of reporting this information, including 
asking States to report the name of the Indian Tribe of which the youth 
is a member. During the work group discussions and pilot test, it 
became clear that such detail was impractical and yielded results of 
little value. We found it was difficult for respondents in our pilot 
test to identify the appropriate Tribe out of the more than 560 
federally recognized Tribes. Identifying the specific Indian Tribe was 
further complicated because in many instances the youth must self-
identify his or her tribal affiliation. Even in the small pilot test we 
conducted, some youth affirmed they were in a Tribe but were unable to 
provide the name of the Tribe. Ultimately, we decided that reporting 
whether a youth is enrolled in or eligible for membership in a Tribe

[[Page 40355]]

would give us critical information without introducing the 
complications associated with specifying which Tribe.
    Adjudicated delinquent. In paragraph (g)(17), we propose that a 
State report whether a youth receiving services was ever adjudicated 
delinquent, which means that a Federal or State court has adjudicated 
the youth as a juvenile delinquent. During consultation, several 
participants noted that identifying this population is important 
because youth who have been adjudicated delinquent may receive 
different services than other youth.
    Although this data element is primarily intended to identify those 
youth who have been involved in the juvenile justice system, during the 
pilot test we asked participating States to answer a broader question 
that identified the youth's point of entry into foster care. That 
original data element included response options to differentiate youth 
who entered foster care through (1) child protective services (CPS); 
(2) State programs for children or persons in need of supervision 
(typically called CHINS or PINS); (3) juvenile justice; (4) mental 
health; (5) tribal agency; or (6) other arrangements. We included this 
broader element in the pilot test because we believed that this 
information would help us to better understand and analyze the 
characteristics of youth who are served. However, we recognized later 
that this broader element had several problems:
     Not all youth who receive independent living services are 
in foster care currently or were in foster care in the State, and so 
collecting information about how a youth entered foster care would not 
be relevant or readily obtainable for all youth in the NYTD reporting 
population.
     It is difficult to create response options that can be 
applied consistently across all States because States differ in their 
organizational structures and definitions of CHINS/PINS, mental health, 
CPS, and juvenile justice.
     The difficulty of defining precise response options is 
further compounded by the fact that many of the youth may be, or have 
been, involved in multiple systems. States may not be able to clearly 
identify the appropriate response option for a youth with a complicated 
history.
    In the end, we were not sure that specific information was 
essential for the NYTD. We therefore decided to simplify the proposed 
data element to capture the most essential information. We consider 
youth adjudicated delinquent as the most important data element to 
propose for our purposes. The organization of a State's child welfare 
and juvenile justice systems contributes to the proportion of that 
State's juvenile justice population who are also receiving independent 
living services. This data element may help to inform how we interpret 
data on independent living services.
    With the proposed simplified definition and response options, we 
realize we may lose some precision about the extent to which the 
reporting population may be involved in juvenile justice systems. We 
also recognize that youth who are adjudicated delinquent are not a 
homogenous group. The courts have a range of sanctions available to 
them once a youth is adjudicated delinquent, which could include 
ordering confinement in a wide-range of institutions or out-of-home 
placements, probation, fines, or treatment. Therefore, we understand 
that youth who are adjudicated delinquent may be a part of States' 
foster care systems in a number of different ways, for different 
reasons, and have varying outcomes. We believe, however, that 
``adjudicated delinquent'' is the most specific and consistently 
applied term relating to a youth's involvement in the juvenile justice 
system. We further believe that any differences in services for youth 
who have been involved in juvenile justice systems will be adequately 
identifiable by categorizing those youth who have been adjudicated 
delinquent.
    Education data elements. In paragraphs (g)(18) and (g)(19), we 
propose that a State report information on the youth's highest 
education level and whether the youth receives or received special 
education instruction during the reporting period. We propose to 
collect this information to help us interpret the information on 
services. We believe that gathering information on how a youth 
progresses in school over time is a key piece of information in 
understanding the types of services the youth receives.
    In the course of developing the educational level element described 
in paragraph (g)(18), we analyzed several ways of capturing information 
about a youth's education. In the pilot test, we asked States to report 
three data elements related to education: current school enrollment 
status, educational level (last grade completed), and highest education 
certificate received. As we refined the instrument, we wanted to limit 
the number of data elements that would have to be updated frequently by 
caseworkers. We believe the proposed element captures the fundamental 
information intended by the three data elements pilot tested.
    We included a special education element as an additional 
educational characteristic in paragraph (g)(19), in response to 
consultation participants' concern that a significant number of youth 
in foster care also have special education needs. Unfortunately, youth 
with special education needs may encounter more obstacles in reaching 
self-sufficiency than other youth. We believe that it is important to 
identify these youth in the reporting population because they may 
require a different service array or intensity of services than youth 
who are not receiving special education. Our definition of special 
education for the purposes of this element is consistent with the 
definition in 20 U.S.C. 1401(25).
    Discussion on all data elements related to services. In paragraphs 
(g)(19) through (g)(33), we propose to capture the range of services 
and financial assistance States provide to youth through their 
independent living programs.
    First, we will discuss general issues relevant to all services and 
assistance provided, followed by a discussion of issues germane to the 
individual data elements. Four major issues dominated our consideration 
of how States should report the type and quantity of services, as is 
required by the law: what types of services to include; how to measure 
the quantity of services; whether to reflect the manner in which States 
deliver services; and, whether States should report why a youth did not 
receive services. Each issue is discussed below.
    The Act provides States with the flexibility to fund services for a 
broad range of independent living needs. During conference calls with 
State staff, we learned that in general, States are tracking the 
services that they pay for in their information systems. However, 
States often do not keep detailed data on the types of services 
provided to youth. Many States believed that a requirement to collect 
such detailed data would overburden caseworkers unnecessarily. 
Therefore, we believe that for States to report the information 
accurately to us, we must attempt to define the categories of services 
broadly and keep them relatively few in number compared to the variety 
of services States provide. We are, therefore, proposing 11 
comprehensive data elements related to services and supports: 
independent living needs assessment; academic support; post-secondary 
educational support; career preparation; employment programs or 
vocational training; budget and financial management; housing education 
and home management training; health education and risk prevention; 
family

[[Page 40356]]

support and healthy marriage education; mentoring; and supervised 
independent living.
    Because these definitions are broad, we acknowledge that a 
particular service may not fit neatly into one of the 11 categories. 
For example, if a youth attends a class that spends an equal time on 
home management and health education then the State should report that 
the youth received services under both service categories. If a youth 
attends a class that primarily covers budgeting and financial 
management but also briefly discusses housing education, then we expect 
that the State will report this service only in the home management 
category. We do not intend to regulate how much time spent on a 
particular topic qualifies as a service, but expect that States will 
choose the appropriate service category keeping in mind the relative 
benefit to the youth.
    Section 477(f)(1)(B)(ii) of the Act requires ACF to identify data 
elements to track both the type and quantity of services provided by 
States. We propose to measure quantity of services in its broadest 
sense by keeping track of the different categories of services that 
youth receive during a reporting period. For example, we will know from 
the NYTD that a youth received three different independent living 
services in a given reporting period, such as educational financial 
aid, post-secondary educational support and mentoring. However, under 
this proposal we will not know the exact quantities of each service. 
For example, we are not asking States to report to us whether a youth 
met with his mentor once a week or just once during the reporting 
period, whether he attended one or five two-hour long SAT preparation 
classes, or whether the State provided $500 or $5000 in educational 
financial aid.
    In developing our proposal, we considered how States could report 
the quantity of services consistently, accurately and meaningfully, 
given the variation in how States provide independent living services. 
One of the options we considered for measuring the quantity of services 
was the hours of service. In the pilot test, we asked respondents to 
record the number of hours of formal services a youth received. The 
caseworkers and supervisors who participated in the pilot test reported 
spending enormous amounts of time trying to locate information about 
hours of service, and many respondents reported estimating or guessing 
the hours of service. Services provided informally were not easily 
quantifiable, and even services provided formally were difficult for 
pilot respondents to measure by the hour. Caseworkers reported not 
being able to verify whether a youth actually received all components 
of a scheduled service (e.g., whether the youth actually attended all 
sessions of a budgeting class). Although we encourage workers to follow 
youth closely to ensure that young people are receiving the services 
necessary to prepare them for independent living, the substantial 
burden on workers and questionable accuracy and validity of the 
reported data on service hours defeated the purpose of trying to 
achieve such a high level of precision in this data collection.
    After determining how States will quantify services, we considered 
whether requiring States to inform us how the services were delivered 
would inform our understanding of service types or quantity. As 
discussed earlier, some independent living services are delivered in 
formal units or are planned and structured services, while others are 
delivered on a more spontaneous basis. Both work group members and 
pilot test respondents emphasized that effective services may be 
delivered informally and noted that some States train and rely on 
foster parents to deliver services in that manner. Also, caseworkers 
who responded in the pilot test reported that they often rely on 
``teachable moments'' to deliver important support and skill-building 
services to youth. These respondents expressed concern that it could 
appear as if they were not providing adequate services if only planned, 
formal services were reported.
    Based on this feedback we initially considered developing response 
options of ``planned,'' ``spontaneous'' or ``both'' to indicate the 
manner in which the State provides a service to the youth. However, we 
chose not to propose these response options in this NPRM because we did 
not believe that this information was central to the statutory 
requirement to collect information on type and quantity of service. We 
would like to note however, that the elements are defined broadly so 
that States must send us information on services regardless of whether 
they are delivered to youth formally or informally.
    We also considered adding response options to the services elements 
that would include reasons why a youth had not received a particular 
service. This option was most relevant when we were contemplating a 
reporting population that included all youth in foster care, regardless 
of whether the youth were receiving services. This consideration was 
based on comments we received from the pilot respondents who reported 
that simply responding that a youth did not receive the service does 
not tell us why it was not received. For example, we would not know 
whether a youth did not receive a service because it is unavailable in 
the State or locality, unallowable according to State policy or 
eligibility criteria, or unsuitable given the youth's age and/or needs. 
Feasibly, a State may offer a youth an appropriate service and the 
youth may decline the service. We then considered expanding the 
response options so that States could indicate that services were not 
needed, services were not available or not offered, and services were 
offered but declined.
    Ultimately, we decided not to propose any expanded response options 
because the statute requires data elements to track services provided 
to youth, and does not require the reasons that services are not 
provided. We also determined that gathering services information on 
youth who were not currently receiving services went beyond the law's 
mandate as discussed earlier. Moreover, this proposal required 
caseworkers to make decisions about why a youth did not receive a 
particular service, when the response options may not be mutually 
exclusive. We concluded, therefore, that even if this information was 
desirable it was likely to be inaccurate.
    Independent living needs assessment. In paragraph (g)(20), we 
propose that a State report information on whether a youth received an 
independent living needs assessment during the reporting period. The 
Act does not require that States provide independent living needs 
assessments; however, we understand that most do and believe that 
States can only provide youth with adequate services once they have 
thoroughly assessed the youth's strengths and needs in transitioning 
into self-sufficiency. During the consultation process some States and 
national organizations indicated that this item was one of the most 
essential services a State could provide.
    Academic support. In paragraph (g)(21), we propose that a State 
indicate whether the youth is receiving services that can help him/her 
complete high school or obtain a general equivalency degree (GED). 
Support for post-secondary schooling and employment are included in 
other data elements. We included this element because we believe that 
academic support, beginning several years before high school, can help 
a youth obtain a high school diploma, or GED, which can lead to other 
positive outcomes such as entry into post-secondary education, 
vocational training, and employment. We also understand that most 
States provide this type of educational

[[Page 40357]]

support. The law also requires that we track a youth's receipt of a 
high school diploma as an outcome measure, so we felt it important to 
capture to what extent States are providing youth with services that 
support this outcome.
    Post-secondary educational support. In paragraph (g)(22), we 
propose that a State report the data element post-secondary educational 
support, which includes those services that help a youth enter or 
complete college. Section 477(a)(3) of the Act identifies a purpose of 
the CFCIP as helping ``children who are likely to remain in foster care 
until 18 years of age prepare for and enter postsecondary training and 
educational institutions.'' Section 477(a)(5) of the Act also specifies 
that funding is available to provide education services to former 
foster care recipients between 18 and 21 years of age. Also, since the 
law directs us to measure a youth's educational attainment as an 
outcome measure, we wanted to collect information on the services that 
States provide to assist youth in furthering their education.
    Career preparation and employment data elements. In paragraph 
(g)(23), we propose that a State report whether the youth receives 
career preparation services which focus on developing a youth's 
readiness to find or hold a job. In paragraph (g)(24), we propose that 
a State report another data element about employment, employment 
programs and vocational training, which includes those services 
intended to build skills for a specific trade, vocation, or career. We 
included these services because the law encourages States to use their 
CFCIP funds to assist youth in obtaining employment. In particular, 
section 477(a)(2) of the Act states that one purpose of the Act is ``to 
help children who are likely to remain in foster care until 18 years of 
age receive the education, training, and services necessary to obtain 
employment.'' Section 477(a)(1) of the Act also specifies that States 
may use the funding to provide services such as assistance in ``career 
exploration, vocational training and job placement and retention.'' 
Both of these elements also help us identify the services that States 
provide to youth in support of their attaining employment, which is an 
outcome measure specified in the law.
    The basic distinction between the two employment-related data 
elements described above is that career preparation refers to general 
skills that help a youth obtain and retain employment, while employment 
programs or vocational training refers to programs that help a youth 
gain expertise and skill in a specific field or profession. During our 
consultation process, we learned that employment programs or vocational 
training are usually administered as planned activities which require 
that a youth enroll in a class or schedule an activity while career 
preparation may be offered on a more ad-hoc basis.
    Budget and financial management. In paragraph (g)(25), we propose 
that a State indicate whether the youth is receiving training in budget 
and financial management. We consider budget and financial management 
to include education and practice in areas such as budgeting, banking, 
consumer awareness, information about credit, loans, and taxes. We 
included this element because budgeting is a common feature in States' 
independent living services and is an essential life skill. Section 
477(a)(1) of the Act highlights training in budgeting and financial 
management skills as an example of assistance that helps youth make the 
transition to self-sufficiency.
    Housing education and home management training. In paragraph 
(g)(26), we propose that States report whether the youth is receiving 
housing education and home management training, which refers to 
instruction and support services to locate and maintain housing, 
understand tenant and landlord responsibilities, and acquire home 
management skills. We believe this information is important to capture 
as one of the purposes of the law is for States to provide housing and 
other appropriate support to former foster care recipients between the 
ages of 18 and 21 (section 477(a)(5) of the Act). Moreover, these 
support services may affect a youth's experiences with homelessness, 
which is an outcome measure specified in section 477(f)(1)(A) of the 
Act.
    Health education and risk prevention. In paragraph (g)(27) we 
propose that a State report information on the health education and 
risk prevention information the youth receives. This information 
includes health-related educational topics such as the benefits of 
preventive care, fitness, and nutrition, but does not include receipt 
of direct medical and mental health services, dental services, or 
substance abuse treatment services. We also have included risk 
prevention topics in this element, including information on topics such 
as sexually transmitted diseases, abstinence, smoking avoidance and 
substance abuse prevention. This element reflects our interest in 
gathering information on the services the State CFCIP agency provides 
to youth to help them live healthy lives and avoid risky behaviors, 
particularly since the law directs us to develop outcome measures on 
youth engagement in high-risk behaviors.
    Family Support and Healthy Marriage Education. In paragraph 
(g)(28), we ask states to report the family support and healthy 
marriage education that a youth receives, if it is paid for or provided 
by the CFCIP agency. This element includes education on maintaining 
healthy families such as parenting and childcare skills, spousal 
communication, family violence prevention, and responsible fatherhood. 
We have included this element because we believe that educating youth 
about maintaining strong families and healthy marriages is an essential 
element of responsible adulthood.
    Mentoring. In paragraph (g)(29), we propose that a State report 
whether the youth is being mentored. By mentoring, we mean programs or 
services in which a youth regularly meets with a screened trained adult 
on a one-on-one basis. Section 477(a)(4) of the Act specifies that one 
purpose of CFCIP funding is ``to provide personal and emotional support 
to children aging out of foster care, through mentors and the promotion 
of interactions with dedicated adults.'' Some participants during our 
consultation believed that mentoring was an essential service for youth 
as they transition into independent living. We also understand from 
reviewing States' CFCIP plans that many States support mentoring for 
older youth, so we want to be sure to capture this service.
    Because we desire to collect information on true mentoring 
programs, rather than interactions with adults on an informal basis or 
for non-mentoring reasons, we have limited this element to capturing 
established mentoring programs which involves matching youth with 
screened and trained adults. For the purposes of this data collection, 
we are interested only in mentoring relationships that are established 
as a result of the CFCIP agency's work with the youth, and not 
relationships that may be facilitated or funded solely by other 
parties.
    Supervised Independent Living. In paragraph (g)(30), we propose 
that a State report whether the youth is in a supervised independent 
living setting. These settings are formal living arrangements under the 
supervision of an agency, but where youth are not supervised 24-hours a 
day. During consultation, some participants considered this one of the 
more essential pieces of information to capture because it can give the 
agency insight into a youth's self-sufficiency while there is still an 
opportunity to provide supportive services.

[[Page 40358]]

Furthermore, the law specifically authorizes States to spend up to 30 
percent of their Chafee allocation on room and board for youth between 
the ages of 18 and 21. Congress authorized funds for this purpose based 
on States' feedback that housing support is one of the greatest needs 
of young adults (see H. Report 106-182, June 10, 1999).
    Discussion related to all financial assistance elements. In the 
group of data elements in paragraphs (g)(31) through (g)(33) we propose 
that a State report information that addresses different types of 
financial assistance provided to youth to support their transition to 
independent living. We decided to include information about financial 
assistance in addition to data elements about specific services to give 
a more complete picture of how States are supporting youth. All three 
of these data elements were included in the original pilot test in some 
form. Participants of the pilot test found financial information 
relatively easy to locate because those States require close tracking 
and accountability of funds.
    Room and Board Financial Assistance. In paragraph (g)(31), we 
propose that a State report whether the CFCIP agency is providing the 
youth with financial assistance for room and board. The proposed 
definition for this element gives a State some flexibility in 
establishing its own definition of room and board assistance with some 
examples such as rent deposits and utilities, as the CFCIP legislation 
provides States with this latitude. We expect that many youth will 
receive this type of financial assistance, since section 477(b)(3)(B) 
of the Act allows a State to spend up to 30 percent of its allotment 
for room and board for youth between the ages of 18 and 21. 
Furthermore, we understand from reviewing States' CFCIP plans that many 
States support room and board for older youth.
    Education financial assistance. In paragraph (g)(32), we propose 
that a State report whether the youth received financial assistance for 
education during the reporting period. This type of aid includes 
financial assistance for school books and materials, tuition 
assistance, examination and application fees, and educational vouchers 
for college tuition or vocational education. The inclusion of vouchers 
results from the Promoting Safe and Stable Families Amendments of 2001, 
which provides education vouchers to pay for college or vocational 
education. The vouchers are designed to increase the prospects of older 
youth in foster care of becoming self-sufficient and living 
independently.
    Other financial assistance. In paragraph (g)(33), we propose that a 
State report any other type of financial assistance that the CFCIP 
agency provides to a youth in order to help the transition from foster 
care to self sufficiency. The definition in the regulation is minimal 
because we do not believe we could provide an exhaustive list of 
financial assistance. Nonetheless, such assistance may include payments 
for household expenses, subsidized transportation or payments for 
business attire for job or college interviews.
    Discussion on all elements related to youth outcomes. In the group 
of data elements in paragraphs (g)(34) through (g)(60), we propose the 
outcome information that States must report to us for each youth in the 
baseline and follow-up populations. Some of the outcomes we are 
interested in capturing are relevant for youth only once they have left 
foster care (e.g., dependence on public assistance), so they will not 
apply to youth in the baseline population or those in the follow-up 
population still in foster care.
    In general, we refined these elements after gathering information 
from stakeholders about which outcomes they considered most important 
to measure for youth aging out of foster care, the outcomes for which 
the State CFCIP agency should be held accountable and outcomes which 
could be easily measured in a data collection system. Stakeholders 
suggested a number of outcomes that we rejected in the end because we 
did not agree that they could meet this test. Some of the proposed 
outcomes that we rejected included a youth's: access to essential 
documents; ethnic, cultural, and personal identity; social isolation; 
health care utilization (including mental health); leadership 
qualities; and general well-being, such as hopefulness, optimism, and 
resiliency. While the foregoing outcomes are important, we believe they 
are best measured through program evaluation. To that end ACF has 
funded a project to conduct an initial assessment and a five-year 
evaluation of selected programs funded through the John Chafee Foster 
Care Independence Program. The goal of the assessment is to identify 
programs that can be rigorously evaluated and to develop evaluation 
designs that will meet the requirements of the law. For more 
information see ACF's Office of Planning, Research and Evaluation Web 
site at: http://www.acf.hhs.gov/programs/opre/
    We believe instead, that the following six outcomes are widely 

accepted as the responsibility of the State's CFCIP agency and 
straightforward for States to measure:
     Outcome 1: Increase young people's financial self-
sufficiency.
     Outcome 2: Improve young people's educational (academic or 
vocational) attainment.
     Outcome 3: Increase young people's positive connections 
with adults.
     Outcome 4: Reduce homelessness among young people.
     Outcome 5: Reduce high-risk behavior among young people.
     Outcome 6: Improve young people's access to health 
insurance.
    The data elements below all relate to these six outcomes and how 
the State collects the outcome information. The data elements are 
listed by outcome in Chart 1 at the end of the preamble.
    Outcomes Reporting Status. In paragraph (g)(34), we propose that 
the State indicate whether the State is reporting any outcome 
information for the youth, and if not, the reason why the State was 
unable to obtain outcome information. This element is essential to our 
ability to understand why the State was unable to obtain outcome 
information from a youth, either initially at age 17 or later on at 
ages 19 or 21. We also expect that this information will increase our 
ability to target technical assistance activities to the States that 
are designed to improve either their procedures to track youth over 
time or their efforts to encourage youth participation.
    In addition to declined participation, we have allowed States to 
indicate that the State is unable to report outcome information on the 
youth because he or she was incapacitated, on runaway status, 
incarcerated, died or the State is otherwise unable to invite the 
youth's participation. States may use these response options when a 
youth's participation clearly is not possible; for example, using the 
response option of ``incapacitated'' when a youth has a significant 
cognitive disability. However, we expect that States will attempt to 
invite the participation of all youth's when appropriate. For instance, 
a youth may be incarcerated but his incarceration alone may not prevent 
him from participating in the survey. Similarly, just because a youth 
may be temporarily incapacitated due to a hospitalization on the 
State's desired date of outcome collection, the State could attempt to 
collect outcomes information at a later time. We expect that a State's 
use of the incapacitated response option to be judicious and 
appropriate to the specific circumstances of the youth, particularly 
since a State must still meet the youth

[[Page 40359]]

participation rates discussed in section 1356.85(b).
    In defining the response options, we were careful to try and 
distinguish between the various reasons why a State is unable to obtain 
outcome information. Nonetheless, we realize that it may be difficult 
for a State to pinpoint the exact reason for the youth's 
nonparticipation. For example, we have defined ``youth declined'' as 
the State inviting the youth's participation but the youth declining 
and ``unable to locate/invite'' as the State being unable to contact 
the youth successfully. If the State attempts to contact the youth 
several times at his last known address and does not receive any reply 
from the youth, it may not be clear whether the youth has chosen to 
ignore the solicitation or the State had the wrong address for the 
youth.
    Finally, this element is meant to capture only the reason why the 
State was unsuccessful in getting any outcome information from the 
youth. Although we expect that a State will use all appropriate methods 
to encourage a youth to complete the outcome survey, a youth may 
decline to answer one or several of the individual survey questions for 
whatever reason. States will be required to capture and report these 
partial responses to us. We believe that even partial information will 
provide us and the States with information on youth outcomes and/or 
help us determine which outcomes questions are problematic for youth.
    Date of outcome data collection. In paragraph (g)(35), we propose 
that the State report the last date that the outcome information is 
collected from the youth. If the information is collected on more than 
one date, the final date must be reported here. The purpose of 
requiring the State to report the date of outcome data collection is to 
allow ACF to assess whether the State collected the outcomes data 
within 45 days of the youth's 17th birthday and within the reporting 
period of the youth's 19th and 21st birthday, as required in section 
1356.82. States must report the date of data collection and not when 
the information was entered into the State's information system.
    Foster care status--outcomes. In paragraph (g)(36), we propose to 
capture the youth's foster care status at the time of the outcomes data 
collection. This element will enable us to identify whether outcome 
survey questions are applicable to the youth's situation (e.g., youth 
in foster care do not need food assistance because the child welfare 
agency is taking care of these needs, so this question is not 
applicable) and determine how a State is complying with the outcomes 
participation standards discussed in further detail in section 1356.85. 
We also want to note that this foster care status element uses a 
different time frame than that described in paragraph (g)(14). The 
foster care status-outcomes element focuses on whether the youth is in 
foster care at the time of data collection versus at any point during 
the six-month reporting period. This is because knowing whether a youth 
was in foster care at any point in the reporting period does not help 
us determine whether the outcome survey questions are applicable or 
whether the State is in compliance with the participation standards.
    Sampling status. In paragraph (g)(37), we propose that the State 
indicate whether or not the 17-year-old youth in the baseline 
population will be a part of the follow-up population at ages 19 and 
21. This is especially germane for States that choose to sample. We 
have included this element so that we can track whether States are 
reporting information on youth in the later years (see discussion of 
section 1356.85(b)(3)). We do not necessarily need the State to report 
all outcome information on each youth in the follow-up population, but 
we need to know whether the State is reporting the information or why 
the State was unable to report the information. This element will be 
applicable only every three years when the State has selected a new 
baseline population of 17-year-olds for outcomes data collection. 
During the years when the State is collecting information on the 
follow-up populations only, the State must indicate that this element 
is not applicable.
    Current full-time employment. In paragraph (g)(38), we propose that 
a State report whether a youth is employed full-time, using a common 
definition of at least 35 hours per week. This data element is one 
measure for Outcome 1, pertaining to young people's financial self-
sufficiency, which addresses the statutory requirement that ACF develop 
outcome measures related to employment. Youth with full-time jobs are 
more likely to be able to avoid dependency and achieve self-
sufficiency.
    Full-time employment and some of the following data elements 
require information on the youth's current status, which means the 
youth's experience as of the date the information is collected on the 
youth. Since our primary goal is to gather information that will help 
us understand the experience of youth as a whole and the State's 
performance, rather than assessing the outcomes for individual youth, 
we believe that the current status of the youth in most cases is 
sufficient.
    Current part-time employment. In paragraph (g)(39), we propose that 
a State report whether a youth is employed part-time. This data element 
also addresses Outcome 1 pertaining to young people's financial self-
sufficiency. Youth with part-time jobs may still be in school or 
training, in transition to full-time employment, or able to reduce or 
avoid dependency on public assistance better than those youth who are 
not employed. We also note that the elements for full-time employment 
and part-time employment are not mutually exclusive. A youth may have a 
full-time and part-time job concurrently.
    Employment related skills. In paragraph (g)(40), we propose that a 
State report whether a youth completed an apprenticeship, internship, 
or other type of on-the-job training in the past year. This data 
element addresses an important aspect of employability and is a measure 
for Outcome 1 pertaining to financial self-sufficiency, which is 
whether a youth has acquired skills necessary to enter the labor 
market. Even if a youth currently is unemployed, the completion of an 
apprenticeship, internship, or other type of on-the-job training is an 
important achievement and an indication that the youth has some labor 
market skills. This data element measures past-year completion, rather 
than current participation, in order to ensure that the data collection 
captures completion of these training experiences.
    Social Security. In paragraph (g)(41), we propose that a State 
report whether a youth is receiving Social Security Income (SSI) or 
Social Security Disability Insurance (SSDI), either directly or as a 
dependent beneficiary. Both SSI and SSDI provide financial assistance 
to eligible persons who are unable to work due to a disability (see 
sections 223 and 1611 of the Social Security Act). This data element 
measures youth access to one type of financial resource to help meet 
their living expenses and is a measure for Outcome 1 pertaining to 
financial self-sufficiency.
    Educational Aid. In paragraph (g)(42), we propose that a State 
report whether a youth is receiving a scholarship, education or 
training voucher, grant, stipend, student loan, or other type of 
educational financial aid. Educational aid includes a Chafee education 
and training voucher provided under section 477(i) of the Social 
Security Act. The definition of a student loan is consistent with that 
under the Federal Family Education Loan Program (20 U.S.C.

[[Page 40360]]

1071). Many young people who are in school receive this type of 
assistance to help them gain an education. Such assistance can be an 
important financial resource, and is a measure for Outcome 1 pertaining 
to financial self-sufficiency.
    Public Financial Assistance. In paragraph (g)(43), we propose that 
a State report whether a youth is receiving cash payments as part of 
the State's Temporary Assistance for Needy Families (TANF) program 
(title IV-A of the Social Security Act). This data element addresses 
the statutory requirement to develop outcome measures pertaining to 
avoidance of dependency (Outcome 1 on financial self-sufficiency). This 
element does not include other types of TANF assistance, such as child 
care subsidies or job training, because they do not involve cash 
payments or direct financial support to the youth.
    Food Assistance. In paragraph (g)(44), we propose that a State 
report whether a youth is receiving food assistance. We consider food 
assistance to include assistance through the federally supported Food 
Stamp program that provides assistance to low-income people to buy 
groceries (authorized at 7 U.S.C. 2014) and the Women, Infants and 
Children (WIC) program, which is nutrition assistance specifically for 
pregnant women and women with young children.
    Housing Assistance. In paragraph (g)(45), we propose that a State 
report whether a youth is receiving government-funded housing 
assistance, excluding CFCIP room and board payments.
    Other Support. In paragraph (g)(46), we propose that a State report 
whether a youth is receiving any other ongoing financial resources or 
support not measured in the previous financial elements. For example, a 
youth may include financial support through a spouse, child support 
that the youth receives or funds from a legal settlement in this 
element. However, this element does not include child care subsidies, 
child support for a youth's child, or other financial help that does 
not benefit the youth directly in supporting himself or herself.
    Highest Educational Certification Received. In paragraph (g)(47), 
we propose that a State report a youth's highest educational 
certification. This data element addresses the statutory requirement to 
develop measures related to educational attainment and is a measure of 
Outcome 2, improving young people's educational attainment. Receiving a 
high school diploma or GED is particularly important since the lack of 
that diploma makes it extremely difficult to transition successfully 
from foster care to self-sufficiency.
    Current Enrollment and Attendance. In paragraph (g)(48), we propose 
that a State report whether a youth is enrolled in and attending 
school. A youth is still considered to be attending school if the youth 
remains enrolled while the school is currently on a break, such as 
Spring break, or out of session. Youth who are currently attending 
school or training may not yet have an educational degree, and may not 
have the time available to hold a full-time job. Some participants in 
the consultation process believed that this data element would be 
critical in assessing the employment and educational outcomes of youth.
    Connection to Adult. In paragraph (g)(49), we propose that a State 
report whether a youth has a positive connection to an adult who can 
serve in a mentor or substitute parent capacity. The adult can be a 
relative, former foster parent, birth parent, or other older member of 
the community, but cannot be a peer such as a boyfriend, girlfriend, 
best friend, partner, or spouse. This definition also excludes current 
caseworkers. This data element, which relates to Outcome 3, increasing 
young people's positive connection with adults is not a statutory 
requirement. However, the measure is consistent with the statute's 
emphasis on mentoring as an important service for older youth in foster 
care. We developed this element in response to comments from many 
participants in the consultation process who believed that having a 
positive relationship with at least one adult was a critical component 
in youths'' success in living on their own.
    Homelessness. In paragraph (g)(50), we propose that a State report 
whether a youth was homeless. This data element is relevant to Outcome 
4 which pertains to reducing homelessness and is included in the 
statutory requirements. Many participants in the consultation process 
noted that it is important to measure how long youth were homeless, 
since there is a significant difference between not having a home for a 
few nights and being homeless for a good part of a year. However, we 
decided not to include a data element about the length of a young 
person's experience with homelessness in order to mitigate the data 
collection burden.
    The homelessness data element and several following data elements 
(i.e., substance abuse referral, incarceration, and children) refer to 
experiences over a long period of time rather than only the youth's 
current experience. This is because these elements pertain to events 
that may happen sporadically or briefly over any given period as 
opposed to other experiences, such as employment or education which 
often require a more long-term commitment. Also, a youth's brief 
experience with substance abuse, incarceration or homelessness often 
has a significant impact on his/her life and ability to be self-
sufficient in a way that other experiences do not. We want to be sure 
to capture these events.
    Specifically, we are proposing two different time frames for these 
elements, depending on whether the youth is in the baseline or follow-
up population. For 17-year-olds in the baseline population we are 
interested in the youth's lifetime experience up to that point. For 19- 
and 21-year-olds in the follow-up population we are interested in the 
youth's experience in the past two years. We chose this approach so 
that we can capture the youths' entire experiences up to age 21, should 
they choose to answer these questions. This information will aid us in 
analyzing the outcomes data.
    Substance Abuse Referral. In paragraph (g)(51), we propose that a 
State report whether a youth was referred or self-referred for alcohol 
or drug abuse assessment or counseling. This data element addresses the 
statutory requirement to develop outcome measures pertaining to high-
risk behaviors, which is Outcome 5. To offset the potential limitations 
of self-reported data and privacy concerns, this data element requests 
information on referrals and not for the youth's actual alcohol and 
drug use.
    Incarceration. In paragraph (g)(52), we propose that a State report 
whether a youth was arrested or incarcerated. This data element 
addresses the statutory requirement to develop outcome measures 
pertaining to incarceration and high-risk behaviors. The definition is 
broad to capture any type of incarceration or detention episode that 
the youth may experience in relation to an alleged crime.
    Children. In paragraph (g)(53), we propose that a State report 
whether a youth gave birth to, or fathered, any children. This data 
element in combination with the subsequent element addresses the 
statutory requirement to develop outcome measures pertaining to 
nonmarital childbearing. We are looking at this element in relation to 
Outcome 5, reducing high-risk behaviors among young people.
    Marriage at Child's Birth. In paragraph (g)(54), we propose that a 
State report whether a youth was married to the child's other 
biological parent at the time of the birth of any children reported in 
paragraph (g)(53).

[[Page 40361]]

Although ``nonmarital childbearing'' is identified in the statute, 
participants in the consultation process recommended that we measure 
whether a youth has any children separately from the youth's marital 
status. Participants objected to the child-bearing and marriage 
elements because they believed it was too intrusive to ask youth 
whether they were married at the time of their children's births. 
However, we decided to use the direct measure because we believe it 
more clearly addresses the statutory requirement.
    Medicaid. In paragraph (g)(55) we propose that a State report 
whether a youth is participating in the State's Medicaid program. 
Although this data element is not a statutory requirement, it is 
consistent with the authority granted in the Foster Care Independence 
Act for States to offer Medicaid coverage to 18-, 19-, and 20-year old 
youth who age out of foster care. The element was developed in response 
to comments from participants in the consultation process that ACF 
should measure how many youth are able to benefit from Medicaid 
coverage. We are considering this element relevant to Outcome 6, 
improving young people's access to health insurance, although we 
acknowledge that some may view reliance on Medicaid as a measure of a 
youth's dependence on public assistance.
    Other Health Insurance Coverage. In paragraph (g)(56), we propose 
that a State report whether a youth has health insurance other than 
Medicaid. This data element was recommended by many participants in the 
consultation process and also is relevant to Outcome 6, a youth's 
access to health insurance. Participants in the consultation process 
believed that health insurance is a critical factor in ensuring a 
youth's well-being and self-sufficiency.
    Health Insurance Type. In paragraphs (g)(57) through (g)(60), we 
are proposing that the State capture the type of health insurance 
coverage that a youth has indicated in the previous element. Paragraph 
(g)(57) will capture whether the youth has insurance coverage for 
medical health only and paragraph (g)(58) will capture whether the 
youth has insurance coverage for both medical health and mental health. 
Paragraph (g)(59) will capture whether the youth has insurance coverage 
for both medical health and prescription drugs, and paragraph (g)(60) 
will capture whether the youth has insurance coverage for all three.
    We are interested in determining to what extent a youth's major 
health insurance coverage needs are being met in evaluating their 
access to health care so we are asking that the youth distinguish 
between medical, mental health and prescription drug coverage. During 
the authorization of the Chafee program, Congress reviewed research and 
testimony that indicated that adolescents leaving foster care have 
significantly more health needs than other adolescents and that former 
foster youth were in particular need of mental health services (see 
House Rpt. 106-182, June 10, 1999). Given this information, we believe 
it important to capture the extent of a youth's access to health 
insurance. Participants in the consultation process were particularly 
interested in capturing whether youth had access to ongoing medication 
for maintenance of their physical or mental health, so we were mindful 
to ask separately about a youth's insurance for prescription drug 
coverage. We opted not to require States to report information on a 
youth's coverage for dental or vision benefits because these benefits 
are not typically covered in health insurance plans. We also are 
limiting this element to capture true health insurance and not plans 
that offer discounts on medical care or prescription drugs only, which 
cannot be classified as insurance.
    Electronic Reporting. Finally, in paragraph (h), we propose that a 
State must submit NYTD data electronically to us in accordance with 
Appendix A of the proposed regulation and any other ACF specifications. 
We are not proposing to regulate the technical requirements for 
formatting or transmitting the NYTD data file. Instead, we will issue 
technical requirements and specifications through official ACF policy. 
We have learned through our experience with AFCARS that it is more 
prudent not to regulate the technical specifications for formatting and 
receiving data. As technology changes, we must be able to keep pace 
with the most current, practical and efficient transmission methods 
that will suit State and Federal needs.
    We are particularly interested in exploring new technologies due to 
the enactment of the E-Government Act of 2002 (Public Law 107-347). 
This law focuses the Federal government on using improved internet-
based technology to make it easier for State or local governments and 
citizens to interact with the Federal government. One internet-based 
technology that we are exploring for the NYTD is the use of Extensible 
Mark-Up Language (XML). XML is a text-based format that allows entities 
to describe, deliver and exchange data among a range of applications 
provided that the sender and receiver have agreed in advance on the 
data definitions. We believe that XML has several benefits to States 
and ACF, including:
     Enabling the integration and collation of any data and 
information irrespective of storage environment or document type;
     Facilitating data interchange independent of the operating 
system and hardware; and,
     Allowing new data elements to be added readily with 
minimal changes to the data file format.
    We recognize that some States have already implemented the use of 
XML to transfer data, while others may have encountered some barriers 
to doing so. Therefore, we welcome comments from States on the 
potential use of XML for NYTD.

Section 1356.84 Sampling

    This section describes the requirements and procedures for a State 
that opts to select a random sample of youth from the baseline 
population to follow over time.
    In paragraph (a), we propose to allow States the option of taking a 
sample of 17-year-old youth who participated in the outcome data 
collection and following and collecting subsequent outcome information 
on that sample of youth at ages 19 and 21. As stated earlier, 
consultation participants requested this option to mitigate the burden 
of collecting information on older youth in the follow-up population, 
many of whom have left foster care.
    In paragraph (b), we are proposing that States use simple random 
sampling procedures that are computer-generated, unless we approve 
another sampling procedure. A sample selected in a random manner, 
following standard sampling procedures, will be representative of all 
19- and 21-year-olds in the follow-up population and will allow us to 
make inferences about that population based on the outcomes experienced 
by the youth in the sample. We are proposing that States use a random 
number generator to ensure that the sample is truly random and thus 
representative of the follow-up population. We believe that this 
provision will also help achieve uniformity in sampling procedures 
across the States.
    We are proposing that the sampling universe consist of the total 
number of youth in the baseline population that participated in data 
collection at age 17. In practice, States may need to wait until the 
end of each reporting period in the fiscal year in which the State 
collects the outcomes data on the baseline population before 
determining the sampling universe and actually

[[Page 40362]]

selecting a sample. Once the State has chosen the youth who will 
comprise the sample at age 19, the State must keep track of these youth 
so that they can collect information from them at ages 19 and 21.
    In paragraph (c) we outline the procedures for selecting the sample 
size. The statistical formula that is referred to in paragraph (c) and 
detailed in the proposed regulatory text at Appendix C of the proposed 
regulation is a standard formula used for making inferences about a 
population (i.e., for drawing conclusions about the State's outcomes).
    In paragraph (c)(1), we require States with a sampling frame of 
5,000 youth or less to use the Finite Population Correction (FPC), 
because the sample size will constitute a large proportion of the 
population. The FPC is used when sampling from a small population 
(i.e., where the sample is five percent or more of the population), and 
will reduce the sampling error at the given level of confidence from 
the value calculated with the standard sampling error formula. In 
paragraph (c)(2), we require States with a sampling frame of more than 
5,000 youth to use the standard sample size formula without the FPC 
shown, because the adjustment is unnecessary.
    Regardless of the size of the State's sampling universe, the State 
must increase the resulting number by 30 percent to allow for 
attrition. Allowing for 30 percent attrition reflects the experience of 
many studies involving hard-to-track populations. However, the sample 
size must not exceed the total number of youth in the baseline 
population who participated in data collection at age 17. ACF 
acknowledges that, depending on the number of 17-year-olds in foster 
care in the State, the resulting sample may not be lower than the 
entire baseline population. Based on our example in Table 1 that 
appears at the end of the preamble, the vast majority of States can 
benefit from using sampling. We estimate that the sample sizes for all 
States will range from approximately 79 to 341 youth.
    We believe that this approach will yield a statistically valid 
sample of 19 and 21 year olds that receive or have received Independent 
Living Services. We would expect that at least 25 percent of the sample 
either currently receives Independent Living Services or received these 
services in the past. We are interested in public comments on whether 
we have achieved this outcome.

Section 1356.85 Compliance

    In this section we define the standards ACF will use to determine a 
State's compliance with NYTD standards and our process for determining 
whether the State is in compliance with the standards.
    File Submission Standards. In paragraph (a) we propose a set of 
file submission standards. These standards are minimal standards for 
timeliness, formatting and quality information that the State must 
achieve in order for us to process the State's data appropriately.
    In paragraph (a)(1), we propose that the State must submit a data 
file according to the reporting periods and timeline (i.e., within 45 
days of the end of each six-month reporting period) as described in 45 
CFR 1356.83(a) to be in compliance with the NYTD.
    In paragraph (a)(2), we propose that a State send us its data file 
in a format that meets our specifications. At this time we cannot 
outline the exact transmission method and/or formatting requirements 
for the NYTD data as explained in the discussion on 45 CFR 1356.83(h). 
However, we anticipate that we will design the Federal NYTD system so 
that we will be able to process files that are submitted according to 
our specifications only. This is to eliminate any inefficiencies and 
additional costs associated with building and maintaining a Federal 
system that can read and/or process multiple file formats.
    In paragraph (a)(3), we propose that the State submit 100 percent 
error-free data for the basic demographic elements described in 45 CFR 
1356.83(g)(1) through (g)(5), (g)(14) and (g)(36) for every youth in 
the reporting population. These elements describe the State, reporting 
period, youth's record number, youth's date of birth, youth's gender, 
and whether the youth is in foster care. Errors are defined in 
paragraph (c) of this section and in general refer to elements that 
have missing or blank data, data that are outside the acceptable 
response options, or illogical or inconsistent responses.
    We are requiring that States have no errors at all for these seven 
elements because they contain information that is readily available to 
the State and are essential to our capacity to analyze the data and 
determine whether the State is in compliance with the remaining data 
standards. For example, the youth's date of birth and foster care 
status is information that all States collect on