[Code of Federal Regulations]

[Title 45, Volume 4]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR1355.38]



[Page 278-281]

 

                        TITLE 45--PUBLIC WELFARE

 

CHAPTER XIII--OFFICE OF HUMAN DEVELOPMENT SERVICES, DEPARTMENT OF HEALTH 

                           AND HUMAN SERVICES

 

PART 1355_GENERAL--Table of Contents

 

Sec. 1355.38  Enforcement of section 471(a)(18) of the Act regarding 

the removal of barriers to interethnic adoption.



    (a) Determination that a violation has occurred in the absence of a 

court finding.

    (1) If ACF becomes aware of a possible section 471(a)(18) violation, 

whether in the course of a child and family services review, the filing 

of a complaint, or through some other mechanism, it will refer such a 

case to the Department's Office for Civil Rights (OCR) for 

investigation.

    (2) Based on the findings of the OCR investigation, ACF will 

determine if a violation of section 471(a)(18) has occurred. A section 

471(a)(18) violation occurs if a State or an entity in the State:

    (i) Has denied to any person the opportunity to become an adoptive 

or foster parent on the basis of the race, color, or national origin of 

the person, or of the child, involved;

    (ii) Has delayed or denied the placement of a child for adoption or 

into foster care on the basis of the race, color, or national origin of 

the adoptive or foster parent, or the child involved; or,

    (iii) With respect to a State, maintains any statute, regulation, 

policy, procedure, or practice that on its face, is a violation as 

defined in paragraphs (a)(2)(i) and (2)(ii) of this section.

    (3) ACF will provide the State or entity with written notification 

of its determination.

    (4) If there has been no violation, there will be no further action. 

If ACF determines that there has been a violation of section 471(a)(18), 

it will take enforcement action as described in this section.

    (5) Compliance with the Indian Child Welfare Act of 1978 (Pub. L. 

95-608) does



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not constitute a violation of section 471(a)(18).

    (b) Corrective action and penalties for violations with respect to a 

person or based on a court finding.

    (1) A State or entity found to be in violation of section 471(a)(18) 

of the Act with respect to a person, as described in paragraphs 

(a)(2)(i) and (a)(2)(ii) of this section, will be penalized in 

accordance with paragraph (g)(2) of this section. A State or entity 

determined to be in violation of section 471(a)(18) of the Act as a 

result of a court finding will be penalized in accordance with paragraph 

(g)(4) of this section. The State may develop, obtain approval of, and 

implement a plan of corrective action any time after it receives written 

notification from ACF that it is in violation of section 471(a)(18) of 

the Act.

    (2) Corrective action plans are subject to ACF approval.

    (3) If the corrective action plan does not meet the provisions of 

paragraph (d) of this section, the State must revise and resubmit the 

plan for approval until it has an approved plan.

    (4) A State or entity found to be in violation of section 471(a)(18) 

of the Act by a court must notify ACF within 30 days from the date of 

entry of the final judgement once all appeals have been exhausted, 

declined, or the appeal period has expired.

    (c) Corrective action for violations resulting from a State's 

statute, regulation, policy, procedure, or practice.

    (1) A State found to have committed a violation of the type 

described in paragraph (a)(2)(iii) of this section must develop and 

submit a corrective action plan within 30 days of receiving written 

notification from ACF that it is in violation of section 471(a)(18). 

Once the plan is approved the State will have to complete the corrective 

action and come into compliance. If the State fails to complete the 

corrective action plan within six months and come into compliance, a 

penalty will be imposed in accordance with paragraph (g)(3) of this 

section.

    (2) Corrective action plans are subject to ACF approval.

    (3) If the corrective action plan does not meet the provisions of 

paragraph (d) of this section, the State must revise and resubmit the 

plan within 30 days from the date it receives a written notice from ACF 

that the plan has not been approved. If the State does not submit a 

revised corrective action plan according to the provisions of paragraph 

(d) of this section, withholding of funds pursuant to the provisions of 

paragraph (g) of this section will apply.

    (d) Contents of a corrective action plan. A corrective action plan 

must:

    (1) Identify the issues to be addressed;

    (2) Set forth the steps for taking corrective action;

    (3) Identify any technical assistance needs and Federal and non-

Federal sources of technical assistance which will be used to complete 

the action steps; and,

    (4) Specify the completion date. This date will be no later than 6 

months from the date ACF approves the corrective action plan.

    (e) Evaluation of corrective action plans. ACF will evaluate 

corrective action plans and notify the State (in writing) of its success 

or failure to complete the plan within 30 calendar days. If the State 

has failed to complete the corrective action plan, ACF will calculate 

the amount of reduction in the State's title IV-E payment and include 

this information in the written notification of failure to complete the 

plan.

    (f) Funds to be withheld. The term ``title IV-E funds'' refers to 

the amount of Federal funds advanced or paid to the State for allowable 

costs incurred by a State for: foster care maintenance payments, 

adoption assistance payments, administrative costs, and training costs 

under title IV-E and includes the State's allotment for the Chafee 

Foster Care Independence Program under section 477 of the Act.

    (g) Reduction of title IV-E funds.

    (1) Title IV-E funds shall be reduced in specified amounts in 

accordance with paragraph (h) of this section under the following 

circumstances:

    (i) A determination that a State or entity is in violation of 

section 471(a)(18) of the Act with respect to a person as described in 

paragraphs (a)(2)(i) and (a)(2)(ii) of this section, or:

    (ii) After a State's failure to implement and complete a corrective 

action



[[Page 280]]



plan and come into compliance as described in paragraph (c) of this 

section.

    (2) Once ACF notifies a State (in writing) that it has committed a 

section 471(a)(18) violation with respect to a person, the State's title 

IV-E funds will be reduced for the fiscal quarter in which the State 

received written notification and for each succeeding quarter within 

that fiscal year or until the State completes a corrective action plan 

and comes into compliance, whichever is earlier. Once ACF notifies an 

entity (in writing) that it has committed a section 471(a)(18) violation 

with respect to a person, the entity must remit to the Secretary all 

title IV-E funds paid to it by the State during the quarter in which the 

entity is notified of the violation.

    (3) For States that fail to complete a corrective action plan within 

6 months, title IV-E funds will be reduced by ACF for the fiscal quarter 

in which the State received notification of its violation. The reduction 

will continue for each succeeding quarter within that fiscal year or 

until the State completes the corrective action plan and comes into 

compliance, whichever is earlier.

    (4) If, as a result of a court finding, a State or entity is 

determined to be in violation of section 471(a)(18) of the Act, ACF will 

assess a penalty without further investigation. Once the State is 

notified (in writing) of the violation, its title IV-E funds will be 

reduced for the fiscal quarter in which the court finding was made and 

for each succeeding quarter within that fiscal year or until the State 

completes a corrective action plan and comes into compliance, whichever 

is sooner. Once an entity is notified (in writing) of the violation, the 

entity must remit to the Secretary all title IV-E funds paid to it by 

the State during the quarter in which the court finding was made.

    (5) The maximum number of quarters that a State will have its title 

IV-E funds reduced due to a finding of a State's failure to conform to 

section 471(a)(18) of the Act is limited to the number of quarters 

within the fiscal year in which a determination of nonconformity was 

made. However, an uncorrected violation may result in a subsequent 

review, another finding, and additional penalties.

    (6) No penalty will be imposed for a court finding of a violation of 

section 471(a)(18) until the judgement is final and all appeals have 

been exhausted, declined, or the appeal period has expired.

    (h) Determination of the amount of reduction of Federal funds. ACF 

will determine the reduction in title IV-E funds due to a section 

471(a)(18) violation in accordance with section 474(d)(1) and (2) of the 

Act.

    (1) State agencies that violate section 471(a)(18) with respect to a 

person or fail to implement or complete a corrective action plan as 

described in paragraph (c) of this section will be subject to a penalty. 

The penalty structure will follow section 474(d)(1) of the Act. 

Penalties will be levied for the quarter of the fiscal year in which the 

State is notified of its section 471(a)(18) violation, and for each 

succeeding quarter within that fiscal year until the State comes into 

compliance with section 471(a)(18). The reduction in title IV-E funds 

will be computed as follows:

    (i) 2 percent of the State's title IV-E funds for the fiscal year 

quarter, as defined in paragraph (f) of this section, for the first 

finding of noncompliance in that fiscal year;

    (ii) 3 percent of the State's title IV-E funds for the fiscal year 

quarter, as defined in paragraph (f) of this section, for the second 

finding of noncompliance in that fiscal year;

    (iii) 5 percent of the State's title IV-E funds for the fiscal year 

quarter, as defined in paragraph (f) of this section, for the third or 

subsequent finding of noncompliance in that fiscal year.

    (2) Any entity (other than the State agency) which violates section 

471(a)(18) of the Act during a fiscal quarter must remit to the 

Secretary all title IV-E funds paid to it by the State in accordance 

with the procedures in paragraphs (g)(2) or (g)(4) of this section.

    (3) No fiscal year payment to a State will be reduced by more than 5 

percent of its title IV-E funds, as defined in paragraph (f) of this 

section, where the State has been determined to be out of compliance 

with section 471(a)(18) of the Act.

    (4) The State agency or entity, as applicable, will be liable for 

interest on



[[Page 281]]



the amount of funds reduced by the Department, in accordance with the 

provisions of 45 CFR 30.13.



[65 FR 4082, Jan. 25, 2000, as amended at 66 FR 58676, Nov. 23, 2001]