Text: H.R.867 — 105th Congress (1997-1998)All Bill Information (Except Text)

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Public Law No: 105-89 (11/19/1997)

 
[105th Congress Public Law 89]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ89.105]


[[Page 111 STAT. 2115]]

Public Law 105-89
105th Congress

                                 An Act


 
  To promote the adoption of children in foster care. <<NOTE: Nov. 19, 
                          1997 -  [H.R. 867]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Adoption and 
Safe Families Act of 1997.>> 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 42 USC 1305 note.>>  Short Title.--This Act may be cited 
as the ``Adoption and Safe Families Act of 1997''.

    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.

TITLE I--REASONABLE EFFORTS AND SAFETY REQUIREMENTS FOR FOSTER CARE AND 
                           ADOPTION PLACEMENTS

Sec. 101. Clarification of the reasonable efforts requirement.
Sec. 102. Including safety in case plan and case review system 
           requirements.
Sec. 103. States required to initiate or join proceedings to terminate 
           parental rights for certain children in foster care.
Sec. 104. Notice of reviews and hearings; opportunity to be heard.
Sec. 105. Use of the Federal Parent Locator Service for child welfare 
           services.
Sec. 106. Criminal records checks for prospective foster and adoptive 
           parents.
Sec. 107. Documentation of efforts for adoption or location of a 
           permanent home.

   TITLE II--INCENTIVES FOR PROVIDING PERMANENT FAMILIES FOR CHILDREN

Sec. 201. Adoption incentive payments.
Sec. 202. Adoptions across State and county jurisdictions.
Sec. 203. Performance of States in protecting children.

             TITLE III--ADDITIONAL IMPROVEMENTS AND REFORMS

Sec. 301. Authority to approve more child protection demonstration 
           projects.
Sec. 302. Permanency hearings.
Sec. 303. Kinship care.
Sec. 304. Clarification of eligible population for independent living 
           services.
Sec. 305. Reauthorization and expansion of family preservation and 
           support 
           services.
Sec. 306. Health insurance coverage for children with special needs.
Sec. 307. Continuation of eligibility for adoption assistance payments 
           on behalf of children with special needs whose initial 
           adoption has been dissolved.
Sec. 308. State standards to ensure quality services for children in 
           foster care.

                         TITLE IV--MISCELLANEOUS

Sec. 401. Preservation of reasonable parenting.
Sec. 402. Reporting requirements.
Sec. 403. Sense of Congress regarding standby guardianship.
Sec. 404. Temporary adjustment of Contingency Fund for State Welfare 
           Programs.
Sec. 405. Coordination of substance abuse and child protection services.
Sec. 406. Purchase of American-made equipment and products.

                         TITLE V--EFFECTIVE DATE

Sec. 501. Effective date.

[[Page 111 STAT. 2116]]

TITLE I--REASONABLE EFFORTS AND SAFETY REQUIREMENTS FOR FOSTER CARE AND 
                           ADOPTION PLACEMENTS

SEC. 101. CLARIFICATION OF THE REASONABLE EFFORTS REQUIREMENT.

    (a) In General.--Section 471(a)(15) of the Social Security Act (42 
U.S.C. 671(a)(15)) is amended to read as follows:
            ``(15) provides that--
                    ``(A) in determining reasonable efforts to be made 
                with respect to a child, as described in this paragraph, 
                and in making such reasonable efforts, the child's 
                health and safety shall be the paramount concern;
                    ``(B) except as provided in subparagraph (D), 
                reasonable efforts shall be made to preserve and reunify 

                families--
                          ``(i) prior to the placement of a child in 
                      foster care, to prevent or eliminate the need for 
                      removing the child from the child's home; and
                          ``(ii) to make it possible for a child to 
                      safely return to the child's home;
                    ``(C) if continuation of reasonable efforts of the 
                type described in subparagraph (B) is determined to be 
                inconsistent with the permanency plan for the child, 
                reasonable efforts shall be made to place the child in a 
                timely manner in accordance with the permanency plan, 
                and to complete whatever steps are necessary to finalize 
                the permanent placement of the child;
                    ``(D) reasonable efforts of the type described in 
                subparagraph (B) shall not be required to be made with 
                respect to a parent of a child if a court of competent 
                jurisdiction has determined that--
                          ``(i) the parent has subjected the child to 
                      aggravated circumstances (as defined in State law, 
                      which definition may include but need not be 
                      limited to abandonment, torture, chronic abuse, 
                      and sexual abuse);
                          ``(ii) the parent has--
                                    ``(I) committed murder (which would 
                                have been an offense under section 
                                1111(a) of title 18, United States Code, 
                                if the offense had occurred in the 
                                special maritime or territorial 
                                jurisdiction of the United States) of 
                                another child of the parent;
                                    ``(II) committed voluntary 
                                manslaughter (which would have been an 
                                offense under section 1112(a) of title 
                                18, United States Code, if the offense 
                                had occurred in the special maritime or 
                                territorial jurisdiction of the United 
                                States) of another child of the parent;
                                    ``(III) aided or abetted, attempted, 
                                conspired, or solicited to commit such a 
                                murder or such a voluntary manslaughter; 
                                or
                                    ``(IV) committed a felony assault 
                                that results in serious bodily injury to 
                                the child or another child of the 
                                parent; or

[[Page 111 STAT. 2117]]

                          ``(iii) the parental rights of the parent to a 
                      sibling have been terminated involuntarily;
                    ``(E) if reasonable efforts of the type described in 
                subparagraph (B) are not made with respect to a child as 
                a result of a determination made by a court of competent 
                jurisdiction in accordance with subparagraph (D)--
                          ``(i) a permanency hearing (as described in 
                      section 475(5)(C)) shall be held for the child 
                      within 30 days after the determination; and
                          ``(ii) reasonable efforts shall be made to 
                      place the child in a timely manner in accordance 
                      with the permanency plan, and to complete whatever 
                      steps are necessary to finalize the permanent 
                      placement of the child; and
                    ``(F) reasonable efforts to place a child for 
                adoption or with a legal guardian may be made 
                concurrently with reasonable efforts of the type 
                described in subparagraph (B);''.

    (b) Definition of Legal Guardianship.--Section 475 of such Act (42 
U.S.C. 675) is amended by adding at the end the following:
            ``(7) The term `legal guardianship' means a judicially 
        created relationship between child and caretaker which is 
        intended to be permanent and self-sustaining as evidenced by the 
        transfer to the caretaker of the following parental rights with 
        respect to the child: protection, education, care and control of 
        the person, custody of the person, and decisionmaking. The term 
        `legal guardian' means the caretaker in such a relationship.''.

    (c) Conforming Amendment.--Section 472(a)(1) of such Act (42 U.S.C. 
672(a)(1)) is amended by inserting ``for a child'' before ``have been 
made''.
    (d) Rule of Construction.--Part E of title IV of such Act (42 U.S.C. 
670-679) is amended by inserting after section 477 the following:

``SEC. 478. <<NOTE: 42 USC 678.>>  RULE OF CONSTRUCTION.

    ``Nothing in this part shall be construed as precluding State courts 
from exercising their discretion to protect the health and safety of 
children in individual cases, including cases other than those described 
in section 471(a)(15)(D).''.

SEC. 102. INCLUDING SAFETY IN CASE PLAN AND CASE REVIEW 
            SYSTEM REQUIREMENTS.

    Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is 
amended--
            (1) in section 422(b)(10)(B) <<NOTE: 42 USC 622.>> --
                    (A) in clause (iii)(I), by inserting ``safe and'' 
                after ``where''; and
                    (B) in clause (iv), by inserting ``safely'' after 
                ``remain''; and
            (2) in section 475 <<NOTE: 42 USC 675.>> --
                    (A) in paragraph (1)--
                          (i) in subparagraph (A), by inserting ``safety 
                      and'' after ``discussion of the''; and
                          (ii) in subparagraph (B)--
                                    (I) by inserting ``safe and'' after 
                                ``child receives''; and
                                    (II) by inserting ``safe'' after 
                                ``return of the child to his own''; and

[[Page 111 STAT. 2118]]

                    (B) in paragraph (5)--
                          (i) in subparagraph (A), in the matter 
                      preceding clause (i), by inserting ``a safe 
                      setting that is'' after ``placement in''; and
                          (ii) in subparagraph (B)--
                                    (I) by inserting ``the safety of the 
                                child,'' after ``determine''; and
                                    (II) by inserting ``and safely 
                                maintained in'' after ``returned to''.

SEC. 103. STATES REQUIRED TO INITIATE OR JOIN PROCEEDINGS TO TERMINATE 
            PARENTAL RIGHTS FOR CERTAIN CHILDREN IN FOSTER CARE.

    (a) Requirement for Proceedings.--Section 475(5) of the Social 
Security Act (42 U.S.C. 675(5)) is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) in the case of a child who has been in foster 
                care under the responsibility of the State for 15 of the 
                most recent 22 months, or, if a court of competent 
                jurisdiction has determined a child to be an abandoned 
                infant (as defined under State law) or has made a 
                determination that the parent has committed murder of 
                another child of the parent, committed voluntary 
                manslaughter of another child of the parent, aided or 
                abetted, attempted, conspired, or solicited to commit 
                such a murder or such a voluntary manslaughter, or 
                committed a felony assault that has resulted in serious 
                bodily injury to the child or to another child of the 
                parent, the State shall file a petition to terminate the 
                parental rights of the child's parents (or, if such a 
                petition has been filed by another party, seek to be 
                joined as a party to the petition), and, concurrently, 
                to identify, recruit, process, and approve a qualified 
                family for an adoption, unless--
                          ``(i) at the option of the State, the child is 
                      being cared for by a relative;
                          ``(ii) a State agency has documented in the 
                      case plan (which shall be available for court 
                      review) a compelling reason for determining that 
                      filing such a petition would not be in the best 
                      interests of the child; or
                          ``(iii) the State has not provided to the 
                      family of the child, consistent with the time 
                      period in the State case plan, such services as 
                      the State deems necessary for the safe return of 
                      the child to the child's home, if reasonable 
                      efforts of the type described in section 
                      471(a)(15)(B)(ii) are required to be made with 
                      respect to the child.''.

    (b) Determination of Beginning of Foster Care.--Section 475(5) of 
the Social Security Act (42 U.S.C. 675(5)), as amended by subsection 
(a), is amended--
            (1) by striking ``and'' at the end of subparagraph (D);
            (2) by striking the period at the end of subparagraph (E) 
        and inserting ``; and''; and
            (3) by adding at the end the following:

[[Page 111 STAT. 2119]]

                    ``(F) a child shall be considered to have entered 
                foster care on the earlier of--
                          ``(i) the date of the first judicial finding 
                      that the child has been subjected to child abuse 
                      or neglect; or
                          ``(ii) the date that is 60 days after the date 
                      on which the child is removed from the home.''.

    (c) <<NOTE: 42 USC 675 note.>>  Transition Rules.--
            (1) New foster children.--In the case of a child who enters 
        foster care (within the meaning of section 475(5)(F) of the 
        Social Security Act) under the responsibility of a State after 
        the date of the enactment of this Act--
                    (A) if the State comes into compliance with the 
                amendments made by subsection (a) of this section before 
                the child has been in such foster care for 15 of the 
                most recent 22 months, the State shall comply with 
                section 475(5)(E) of the Social Security Act with 
                respect to the child when the child has been in such 
                foster care for 15 of the most recent 22 months; and
                    (B) if the State comes into such compliance after 
                the child has been in such foster care for 15 of the 
                most recent 22 months, the State shall comply with such 
                section 475(5)(E) with respect to the child not later 
                than 3 months after the end of the first regular session 
                of the State legislature that begins after such date of 
                enactment.
            (2) Current foster children.--In the case of children in 
        foster care under the responsibility of the State on the date of 
        the enactment of this Act, the State shall--
                    (A) not later than 6 months after the end of the 
                first regular session of the State legislature that 
                begins after such date of enactment, comply with section 
                475(5)(E) of the Social Security Act with respect to not 
                less than \1/3\ of such children as the State shall 
                select, giving priority to children for whom the 
                permanency plan (within the meaning of part E of title 
                IV of the Social Security Act) is adoption and children 
                who have been in foster care for the greatest length of 
                time;
                    (B) not later than 12 months after the end of such 
                first regular session, comply with such section 
                475(5)(E) with respect to not less than \2/3\ of such 
                children as the State shall select; and
                    (C) not later than 18 months after the end of such 
                first regular session, comply with such section 
                475(5)(E) with respect to all of such children.
            (3) Treatment of 2-year legislative sessions.--For purposes 
        of this subsection, in the case of a State that has a 2-year 
        legislative session, each year of the session is deemed to be a 
        separate regular session of the State legislature.
            (4) Requirements treated as state plan requirements.--For 
        purposes of part E of title IV of the Social Security Act, the 
        requirements of this subsection shall be treated as State plan 
        requirements imposed by section 471(a) of such Act.

    (d) <<NOTE: 42 USC 675 note.>>  Rule of Construction.--Nothing in 
this section or in part E of title IV of the Social Security Act (42 
U.S.C. 670 et seq.), as amended by this Act, shall be construed as 
precluding State courts or State agencies from initiating the 
termination of

[[Page 111 STAT. 2120]]

parental rights for reasons other than, or for timelines earlier than, 
those specified in part E of title IV of such Act, when such actions are 
determined to be in the best interests of the child, including cases 
where the child has experienced multiple foster care placements of 
varying durations.

SEC. 104. NOTICE OF REVIEWS AND HEARINGS; OPPORTUNITY TO BE HEARD.

    Section 475(5) of the Social Security Act (42 U.S.C. 675(5)), as 
amended by section 103, is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by striking the period at the end of subparagraph (F) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(G) the foster parents (if any) of a child and any 
                preadoptive parent or relative providing care for the 
                child are provided with notice of, and an opportunity to 
                be heard in, any review or hearing to be held with 
                respect to the child, except that this subparagraph 
                shall not be construed to require that any foster 
                parent, preadoptive parent, or relative providing care 
                for the child be made a party to such a review or 
                hearing solely on the basis of such notice and 
                opportunity to be heard.''.

SEC. 105. USE OF THE FEDERAL PARENT LOCATOR SERVICE FOR CHILD WELFARE 
            SERVICES.

    Section 453 of the Social Security Act (42 U.S.C. 653) is 
amended--
            (1) in subsection (a)(2)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``or making or enforcing child custody or 
                visitation orders,'' after ``obligations,''; and
                    (B) in subparagraph (A)--
                          (i) by striking ``or'' at the end of clause 
                      (ii);
                          (ii) by striking the comma at the end of 
                      clause (iii) and inserting ``; or''; and
                          (iii) by inserting after clause (iii) the 
                      following:
                          ``(iv) who has or may have parental rights 
                      with respect to a child,''; and
            (2) in subsection (c)--
                    (A) by striking the period at the end of paragraph 
                (3) and inserting ``; and''; and
                    (B) by adding at the end the following:
            ``(4) a State agency that is administering a program 
        operated under a State plan under subpart 1 of part B, or a 
        State plan approved under subpart 2 of part B or under part 
        E.''.

SEC. 106. CRIMINAL RECORDS CHECKS FOR PROSPECTIVE FOSTER AND ADOPTIVE 
            PARENTS.

    Section 471(a) of the Social Security Act (42 U.S.C. 671(a)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (18);
            (2) by striking the period at the end of paragraph (19) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(20)(A) unless an election provided for in subparagraph 
        (B) is made with respect to the State, provides procedures

[[Page 111 STAT. 2121]]

        for criminal records checks for any prospective foster or 
        adoptive parent before the foster or adoptive parent may be 
        finally approved for placement of a child on whose behalf foster 
        care maintenance payments or adoption assistance payments are to 
        be made under the State plan under this part, including 
        procedures requiring that--
                    ``(i) in any case in which a record check reveals a 
                felony conviction for child abuse or neglect, for 
                spousal abuse, for a crime against children (including 
                child pornography), or for a crime involving violence, 
                including rape, sexual assault, or homicide, but not 
                including other physical assault or battery, if a State 
                finds that a court of competent jurisdiction has 
                determined that the felony was committed at any time, 
                such final approval shall not be granted; and
                    ``(ii) in any case in which a record check reveals a 
                felony conviction for physical assault, battery, or a 
                drug-related offense, if a State finds that a court of 
                competent jurisdiction has determined that the felony 
                was committed within the past 5 years, such final 
                approval shall not be granted; and
            ``(B) subparagraph (A) shall not apply to a State plan if 
        the Governor of the State has notified the Secretary in writing 
        that the State has elected to make subparagraph (A) inapplicable 
        to the State, or if the State legislature, by law, has elected 
        to make subparagraph (A) inapplicable to the State.''.

SEC. 107. DOCUMENTATION OF EFFORTS FOR ADOPTION OR LOCATION OF A 
            PERMANENT HOME.

    Section 475(1) of the Social Security Act (42 U.S.C. 675(1)) is 
amended--
            (1) in the last sentence--
                    (A) by striking ``the case plan must also include''; 
                and
                    (B) by redesignating such sentence as subparagraph 
                (D) and indenting appropriately; and
            (2) by adding at the end the following:
                    ``(E) In the case of a child with respect to whom 
                the permanency plan is adoption or placement in another 
                permanent home, documentation of the steps the agency is 
                taking to find an adoptive family or other permanent 
                living arrangement for the child, to place the child 
                with an adoptive family, a fit and willing relative, a 
                legal guardian, or in another planned permanent living 
                arrangement, and to finalize the adoption or legal 
                guardianship. At a minimum, such documentation shall 
                include child specific recruitment efforts such as the 
                use of State, regional, and national adoption exchanges 
                including electronic exchange systems.''.

[[Page 111 STAT. 2122]]

   TITLE II--INCENTIVES FOR PROVIDING PERMANENT FAMILIES FOR CHILDREN

SEC. 201. ADOPTION INCENTIVE PAYMENTS.

    (a) In General.--Part E of title IV of the Social Security Act (42 
U.S.C. 670-679) is amended by inserting after section 473 the following:

``SEC. 473A. <<NOTE: 42 USC 673b.>>  ADOPTION INCENTIVE PAYMENTS.

    ``(a) Grant Authority.--Subject to the availability of such amounts 
as may be provided in advance in appropriations Acts for this purpose, 
the Secretary shall make a grant to each State that is an incentive-
eligible State for a fiscal year in an amount equal to the adoption 
incentive payment payable to the State under this section for the fiscal 
year, which shall be payable in the immediately succeeding fiscal year.
    ``(b) Incentive-Eligible State.--A State is an incentive-eligible 
State for a fiscal year if--
            ``(1) the State has a plan approved under this part for the 
        fiscal year;
            ``(2) the number of foster child adoptions in the State 
        during the fiscal year exceeds the base number of foster child 
        adoptions for the State for the fiscal year;
            ``(3) the State is in compliance with subsection (c) for the 
        fiscal year;
            ``(4) in the case of fiscal years 2001 and 2002, the State 
        provides health insurance coverage to any child with special 
        needs (as determined under section 473(c)) for whom there is in 
        effect an adoption assistance agreement between a State and an 
        adoptive parent or parents; and
            ``(5) the fiscal year is any of fiscal years 1998 through 
        2002.

    ``(c) Data Requirements.--
            ``(1) In general.--A State is in compliance with this 
        subsection for a fiscal year if the State has provided to the 
        Secretary the data described in paragraph (2)--
                    ``(A) for fiscal years 1995 through 1997 (or, if the 
                first fiscal year for which the State seeks a grant 
                under this section is after fiscal year 1998, the fiscal 
                year that 
                precedes such first fiscal year); and
                    ``(B) for each succeeding fiscal year that precedes 
                the fiscal year.
            ``(2) Determination of numbers of adoptions.--
                    ``(A) Determinations based on afcars data.--Except 
                as provided in subparagraph (B), the Secretary shall 
                determine the numbers of foster child adoptions and of 
                special needs adoptions in a State during each of fiscal 
                years 1995 through 2002, for purposes of this section, 
                on the basis of data meeting the requirements of the 
                system established pursuant to section 479, as reported 
                by the State and approved by the Secretary by August 1 
                of the succeeding fiscal year.
                    ``(B) Alternative data sources permitted for fiscal 
                years 1995 through 1997.--For purposes of the 
                determination described in subparagraph (A) for fiscal 
                years 1995 through 1997, the Secretary may use data from 
                a source

[[Page 111 STAT. 2123]]

                or sources other than that specified in subparagraph (A) 
                that the Secretary finds to be of equivalent 
                completeness and reliability, as reported by a State by 
                November 30, 1997, and approved by the Secretary by 
                March 1, 1998.
            ``(3) No waiver of afcars requirements.--This section shall 
        not be construed to alter or affect any requirement of section 
        479 or of any regulation prescribed under such section with 
        respect to reporting of data by States, or to waive any penalty 
        for failure to comply with such a requirement.

    ``(d) Adoption Incentive Payment.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        adoption incentive payment payable to a State for a fiscal year 
        under this section shall be equal to the sum of--
                    ``(A) $4,000, multiplied by the amount (if any) by 
                which the number of foster child adoptions in the State 
                during the fiscal year exceeds the base number of foster 
                child adoptions for the State for the fiscal year; and
                    ``(B) $2,000, multiplied by the amount (if any) by 
                which the number of special needs adoptions in the State 
                during the fiscal year exceeds the base number of 
                special needs adoptions for the State for the fiscal 
                year.
            ``(2) Pro rata adjustment if insufficient funds available.--
        For any fiscal year, if the total amount of adoption incentive 
        payments otherwise payable under this section for a fiscal year 
        exceeds the amount appropriated pursuant to subsection (h) for 
        the fiscal year, the amount of the adoption incentive payment 
        payable to each State under this section for the fiscal year 
        shall be--
                    ``(A) the amount of the adoption incentive payment 
                that would otherwise be payable to the State under this 
                section for the fiscal year; multiplied by
                    ``(B) the percentage represented by the amount so 
                appropriated for the fiscal year, divided by the total 
                amount of adoption incentive payments otherwise payable 
                under this section for the fiscal year.

    ``(e) 2-Year Availability of Incentive Payments.--Payments to a 
State under this section in a fiscal year shall remain available for use 
by the State through the end of the succeeding fiscal year.
    ``(f ) Limitations on Use of Incentive Payments.--A State shall not 
expend an amount paid to the State under this section except to provide 
to children or families any service (including post-adoption services) 
that may be provided under part B or E. Amounts expended by a State in 
accordance with the preceding sentence shall be disregarded in 
determining State expenditures for purposes of Federal matching payments 
under sections 423, 434, and 474.
    ``(g) Definitions.--As used in this section:
            ``(1) Foster child adoption.--The term `foster child 
        adoption' means the final adoption of a child who, at the time 
        of adoptive placement, was in foster care under the supervision 
        of the State.
            ``(2) Special needs adoption.--The term `special needs 
        adoption' means the final adoption of a child for whom an 
        adoption assistance agreement is in effect under section 473.
            ``(3) Base number of foster child adoptions.--The term ` 
        base number of foster child adoptions for a State' means--

[[Page 111 STAT. 2124]]

                    ``(A) with respect to fiscal year 1998, the average 
                number of foster child adoptions in the State in fiscal 
                years 1995, 1996, and 1997; and
                    ``(B) with respect to any subsequent fiscal year, 
                the number of foster child adoptions in the State in the 
                fiscal year for which the number is the greatest in the 
                period that begins with fiscal year 1997 and ends with 
                the fiscal year preceding such subsequent fiscal year.
            ``(4) Base number of special needs adoptions.--The term ` 
        base number of special needs adoptions for a State' means--
                    ``(A) with respect to fiscal year 1998, the average 
                number of special needs adoptions in the State in fiscal 
                years 1995, 1996, and 1997; and
                    ``(B) with respect to any subsequent fiscal year, 
                the number of special needs adoptions in the State in 
                the fiscal year for which the number is the greatest in 
                the period that begins with fiscal year 1997 and ends 
                with the fiscal year preceding such subsequent fiscal 
                year.

    ``(h) Limitations on Authorization of Appropriations.--
            ``(1) In general.--For grants under subsection (a), there 
        are authorized to be appropriated to the Secretary $20,000,000 
        for each of fiscal years 1999 through 2003.
            ``(2) Availability.--Amounts appropriated under paragraph 
        (1) are authorized to remain available until expended, but not 
        after fiscal year 2003.

    ``(i) Technical Assistance.--
            ``(1) In general.--The Secretary may, directly or through 
        grants or contracts, provide technical assistance to assist 
        States and local communities to reach their targets for 
        increased numbers of adoptions and, to the extent that adoption 
        is not possible, alternative permanent placements, for children 
        in foster care.
            ``(2) Description of the character of the technical 
        assistance.--The technical assistance provided under paragraph 
        (1) may support the goal of encouraging more adoptions out of 
        the foster care system, when adoptions promote the best 
        interests of children, and may include the following:
                    ``(A) The development of best practice guidelines 
                for expediting termination of parental rights.
                    ``(B) Models to encourage the use of concurrent 
                planning.
                    ``(C) The development of specialized units and 
                expertise in moving children toward adoption as a 
                permanency goal.
                    ``(D) The development of risk assessment tools to 
                facilitate early identification of the children who will 
                be at risk of harm if returned home.
                    ``(E) Models to encourage the fast tracking of 
                children who have not attained 1 year of age into pre-
                adoptive placements.
                    ``(F) Development of programs that place children 
                into pre-adoptive families without waiting for 
                termination of parental rights.
            ``(3) Targeting of technical assistance to the courts.--Not 
        less than 50 percent of any amount appropriated pursuant to 
        paragraph (4) shall be used to provide technical assistance to 
        the courts.

[[Page 111 STAT. 2125]]

            ``(4) Limitations on authorization of appropriations.--To 
        carry out this subsection, there are authorized to be 
        appropriated to the Secretary of Health and Human Services not 
        to exceed $10,000,000 for each of fiscal years 1998 through 
        2000.''.

    (b) Discretionary Cap Adjustment for Adoption Incentive Payments.--
            (1) Section 251 amendment.--Section 251(b)(2) of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 (2 
        U.S.C. 901(b)(2)), as amended by section 10203(a)(4) of the 
        Balanced Budget Act of 1997, <<NOTE: Ante, p. 698.>>  is amended 
        by adding at the end the following new subparagraph:
                    ``(G) Adoption incentive payments.--Whenever a bill 
                or joint resolution making appropriations for fiscal 
                year 1999, 2000, 2001, 2002, or 2003 is enacted that 
                specifies an amount for adoption incentive payments 
                pursuant to this part for the Department of Health and 
                Human 
                Services--
                          ``(i) the adjustments for new budget authority 
                      shall be the amounts of new budget authority 
                      provided in that measure for adoption incentive 
                      payments, but not to exceed $20,000,000; and
                          ``(ii) the adjustment for outlays shall be the 

                      additional outlays flowing from such amount.''.
            (2) Section 314 amendment.--Section 314(b) of the 
        Congressional Budget Act of 1974, as amended by section 
        10114(a) <<NOTE: Ante, p. 688.>>  of the Balanced Budget Act of 
        1997, is amended--
                    (A) by striking ``or'' at the end of paragraph (4);
                    (B) by striking the period at the end of paragraph 
                (5) and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(6) in the case of an amount for adoption incentive 
        payments (as defined in section 251(b)(2)(G) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985) for fiscal 
        year 1999, 2000, 2001, 2002, or 2003 for the Department of 
        Health and Human Services, an amount not to exceed 
        $20,000,000.''.

SEC. 202. ADOPTIONS ACROSS STATE AND COUNTY JURISDICTIONS.

    (a) State Plan for Child Welfare Services Requirement.--Section 
422(b) of the Social Security Act (42 U.S.C. 622(b)) is amended--
            (1) in paragraph (10), by striking ``and'' at the end;
            (2) in paragraph (11), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(12) contain assurances that the State shall develop plans 
        for the effective use of cross-jurisdictional resources to 
        facilitate timely adoptive or permanent placements for waiting 
        children.''.

    (b) Condition of Assistance.--Section 474 of such Act (42 U.S.C. 
674) is amended by adding at the end the following:
    ``(e) Notwithstanding subsection (a), a State shall not be eligible 
for any payment under this section if the Secretary finds that, after 
the date of the enactment of this subsection, the State has--
            ``(1) denied or delayed the placement of a child for 
        adoption when an approved family is available outside of the 
        jurisdiction with responsibility for handling the case of the 
        child; or

[[Page 111 STAT. 2126]]

            ``(2) failed to grant an opportunity for a fair hearing, as 
        described in section 471(a)(12), to an individual whose 
        allegation of a violation of paragraph (1) of this subsection is 
        denied by the State or not acted upon by the State with 
        reasonable promptness.''.

    (c) <<NOTE: 42 USC 5111 note.>>  Study of Interjurisdictional 
Adoption Issues.--
            (1) In general.--The Comptroller General of the United 
        States shall--
                    (A) study and consider how to improve procedures and 
                policies to facilitate the timely and permanent 
                adoptions of children across State and county 
                jurisdictions; and
                    (B) examine, at a minimum, interjurisdictional 
                adoption issues--
                          (i) concerning the recruitment of prospective 
                      adoptive families from other States and counties;
                          (ii) concerning the procedures to grant 
                      reciprocity to prospective adoptive family home 
                      studies from other States and counties;
                          (iii) arising from a review of the comity and 
                      full faith and credit provided to adoption decrees 
                      and 
                      termination of parental rights orders from other 
                      States; and
                          (iv) concerning the procedures related to the 
                      administration and implementation of the 
                      Interstate Compact on the Placement of Children.
            (2) Report to the congress.--Not later than 1 year after the 
        date of the enactment of this Act, the Comptroller General shall 
        submit to the appropriate committees of the Congress a report 
        that includes--
                    (A) the results of the study conducted under 
                paragraph (1); and
                    (B) recommendations on how to improve procedures to 
                facilitate the interjurisdictional adoption of children, 
                including interstate and intercounty adoptions, so that 
                children will be assured timely and permanent 
                placements.

SEC. 203. PERFORMANCE OF STATES IN PROTECTING CHILDREN.

    (a) Annual Report on State Performance.--Part E of title IV of the 
Social Security Act (42 U.S.C. 670 et seq.) is amended by adding at the 
end the following:

``SEC. 479A. <<NOTE: 42 USC 679b.>>  ANNUAL REPORT.

    ``The Secretary, in consultation with Governors, State legislatures, 
State and local public officials responsible for administering child 
welfare programs, and child welfare advocates, shall--
            ``(1) develop a set of outcome measures (including length of 
        stay in foster care, number of foster care placements, and 
        number of adoptions) that can be used to assess the performance 
        of States in operating child protection and child welfare 
        programs pursuant to parts B and E to ensure the safety of 
        children;
            ``(2) to the maximum extent possible, the outcome measures 
        should be developed from data available from the Adoption and 
        Foster Care Analysis and Reporting System;
            ``(3) develop a system for rating the performance of States 
        with respect to the outcome measures, and provide to the States 
        an explanation of the rating system and how scores are 
        determined under the rating system;

[[Page 111 STAT. 2127]]

            ``(4) prescribe such regulations as may be necessary to 
        ensure that States provide to the Secretary the data necessary 
        to determine State performance with respect to each outcome 
        measure, as a condition of the State receiving funds under this 
        part; and
            ``(5) on May 1, 1999, and annually thereafter, prepare and 
        submit to the Congress a report on the performance of each State 
        on each outcome measure, which shall examine the reasons for 
        high performance and low performance and, where possible, make 
        recommendations as to how State performance could be 
        improved.''.

    (b) <<NOTE: 42 USC 679b note.>>  Development of Performance-Based 
Incentive System.--The Secretary of Health and Human Services, in 
consultation with State and local public officials responsible for 
administering child welfare programs and child welfare advocates, shall 
study, develop, and recommend to Congress an incentive system to provide 
payments under parts B and E of title IV of the Social Security Act (42 
U.S.C. 620 et seq., 670 et seq.) to any State based on the State's 
performance under such a system. Such a system shall, to the extent the 
Secretary determines feasible and appropriate, be based on the annual 
report required by section 479A of the Social Security Act (as added by 
subsection (a) of this section) or on any proposed modifications of the 
annual report. Not later than 6 months after the date of the enactment 
of this Act, the Secretary shall submit to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate a progress report on the feasibility, timetable, and 
consultation process for conducting such a study. Not later than 15 
months after such date of enactment, the Secretary shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate the final report on a performance-
based incentive system. The report may include other recommendations for 
restructuring the program and payments under parts B and E of title IV 
of the Social Security Act.

             TITLE III--ADDITIONAL IMPROVEMENTS AND REFORMS

SEC. 301. EXPANSION OF CHILD WELFARE DEMONSTRATION PROJECTS.

    (a) In General.--Section 1130(a) of the Social Security Act (42 
U.S.C. 1320a-9) is amended to read as follows:
    ``(a) Authority To Approve Demonstration Projects.--
            ``(1) In general.--The Secretary may authorize States to 
        conduct demonstration projects pursuant to this section which 
        the Secretary finds are likely to promote the objectives of part 
        B or E of title IV.
            ``(2) Limitation.--The Secretary may authorize not more than 
        10 demonstration projects under paragraph (1) in each of fiscal 
        years 1998 through 2002.
            ``(3) Certain types of proposals required to be 
        considered.--
                    ``(A) If an appropriate application therefor is 
                submitted, the Secretary shall consider authorizing a 
                demonstration project which is designed to identify and 
                address barriers

[[Page 111 STAT. 2128]]

                that result in delays to adoptive placements for 
                children in foster care.
                    ``(B) If an appropriate application therefor is 
                submitted, the Secretary shall consider authorizing a 
                demonstration project which is designed to identify and 
                address parental substance abuse problems that endanger 
                children and result in the placement of children in 
                foster care, including through the placement of children 
                with their parents in residential treatment facilities 
                (including residential treatment facilities for post-
                partum depression) that are specifically designed to 
                serve parents and children together in order to promote 
                family reunification and that can ensure the health and 
                safety of the children in such placements.
                    ``(C) If an appropriate application therefor is 
                submitted, the Secretary shall consider authorizing a 
                demonstration project which is designed to address 
                kinship care.
            ``(4) Limitation on eligibility.--The Secretary may not 
        authorize a State to conduct a demonstration project under this 
        section if the State fails to provide health insurance coverage 
        to any child with special needs (as determined under section 
        473(c)) for whom there is in effect an adoption assistance 
        agreement between a State and an adoptive parent or parents.
            ``(5) Requirement to consider effect of project on terms and 
        conditions of certain court orders.--In considering an 
        application to conduct a demonstration project under this 
        section that has been submitted by a State in which there is in 
        effect a court order determining that the State's child welfare 
        program has failed to comply with the provisions of part B or E 
        of title IV, or with the Constitution of the United States, the 
        Secretary shall take into consideration the effect of approving 
        the proposed project on the terms and conditions of the court 
        order related to the failure to comply.''.

    (b) <<NOTE: 42 USC 1320a-9 note.>>  Rule of Construction.--Nothing 
in the amendment made by subsection (a) shall be construed as affecting 
the terms and conditions of any demonstration project approved under 
section 1130 of the Social Security Act (42 U.S.C. 1320a-9) before the 
date of the enactment of this Act.

    (c) Authority To Extend Duration of Demonstrations.--Section 1130(d) 
of such Act (42 U.S.C. 1320a-9(d)) is amended by inserting ``, unless in 
the judgment of the Secretary, the demonstration project should be 
allowed to continue'' before the period.

SEC. 302. PERMANENCY HEARINGS.

    Section 475(5)(C) of the Social Security Act (42 U.S.C. 675(5)(C)) 
is amended--
            (1) by striking ``dispositional'' and inserting 
        ``permanency'';
            (2) by striking ``eighteen'' and inserting ``12'';
            (3) by striking ``original placement'' and inserting ``date 
        the child is considered to have entered foster care (as 
        determined under subparagraph (F))''; and
            (4) by striking ``future status of '' and all that follows 
        through ``long term basis)'' and inserting ``permanency plan for 
        the child that includes whether, and if applicable when, the 
        child will be returned to the parent, placed for adoption and 
        the State will file a petition for termination of parental 
        rights, or referred for legal guardianship, or (in cases where

[[Page 111 STAT. 2129]]

        the State agency has documented to the State court a compelling 
        reason for determining that it would not be in the best 
        interests of the child to return home, be referred for 
        termination of parental rights, or be placed for adoption, with 
        a fit and willing relative, or with a legal guardian) placed in 
        another planned permanent living arrangement''.

SEC. 303. <<NOTE: 42 USC 5113 note.>>  KINSHIP CARE.

    (a) Report.--
            (1) In general.--The Secretary of Health and Human Services 
        shall--
                    (A) not later than June 1, 1998, convene the 
                advisory panel provided for in subsection (b)(1) and 
                prepare and submit to the advisory panel an initial 
                report on the extent to which children in foster care 
                are placed in the care of a relative (in this section 
                referred to as ``kinship care''); and
                    (B) not later than June 1, 1999, submit to the 
                Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of the 
                Senate a final report on the matter described in 
                subparagraph (A), which shall--
                          (i) be based on the comments submitted by the 
                      advisory panel pursuant to subsection (b)(2) and 
                      other information and considerations; and
                          (ii) include the policy recommendations of the 

                      Secretary with respect to the matter.
            (2) Required contents.--Each report required by 
        paragraph (1) shall--
                    (A) include, to the extent available for each State, 
                information on--
                          (i) the policy of the State regarding kinship 
                      care;
                          (ii) the characteristics of the kinship care 
                      providers (including age, income, ethnicity, and 
                      race, and the relationship of the kinship care 
                      providers to the children);
                          (iii) the characteristics of the household of 
                      such providers (such as number of other persons in 
                      the household and family composition);
                          (iv) how much access to the child is afforded 
                      to the parent from whom the child has been 
                      removed;
                          (v) the cost of, and source of funds for, 
                      kinship care (including any subsidies such as 
                      medicaid and cash assistance);
                          (vi) the permanency plan for the child and the 
                      actions being taken by the State to achieve the 
                      plan;
                          (vii) the services being provided to the 
                      parent from whom the child has been removed; and
                          (viii) the services being provided to the 
                      kinship care provider; and
                    (B) specifically note the circumstances or 
                conditions under which children enter kinship care.

    (b) Advisory Panel.--
            (1) Establishment.--The Secretary of Health and Human 
        Services, in consultation with the Chairman of the Committee on 
        Ways and Means of the House of Representatives and the Chairman 
        of the Committee on Finance of the Senate, shall convene an 
        advisory panel which shall include parents, foster

[[Page 111 STAT. 2130]]

        parents, relative caregivers, former foster children, State and 
        local public officials responsible for administering child 
        welfare programs, private persons involved in the delivery of 
        child welfare services, representatives of tribal governments 
        and tribal courts, judges, and academic experts.
            (2) Duties.--The advisory panel convened pursuant to 
        paragraph (1) shall review the report prepared pursuant to 
        subsection (a), and, not later than October 1, 1998, submit to 
        the Secretary comments on the report.

SEC. 304. CLARIFICATION OF ELIGIBLE POPULATION FOR INDEPENDENT LIVING 
            SERVICES.

    Section 477(a)(2)(A) of the Social Security Act (42 U.S.C. 
677(a)(2)(A)) is amended by inserting ``(including children with respect 
to whom such payments are no longer being made because the child has 
accumulated assets, not to exceed $5,000, which are otherwise regarded 
as resources for purposes of determining eligibility for benefits under 
this part)'' before the comma.

SEC. 305. REAUTHORIZATION AND EXPANSION OF FAMILY PRESERVATION AND 
            SUPPORT SERVICES.

    (a) Reauthorization of Family Preservation and Support Services.--
            (1) In general.--Section 430(b) of the Social Security Act 
        (42 U.S.C. 629(b)) is amended--
                    (A) in paragraph (4), by striking ``or'' at the end;
                    (B) in paragraph (5), by striking the period and 
                inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(6) for fiscal year 1999, $275,000,000;
            ``(7) for fiscal year 2000, $295,000,000; and
            ``(8) for fiscal year 2001, $305,000,000.''.
            (2) Continuation of reservation of certain amounts.--
        Paragraphs (1) and (2) of section 430(d) of the Social Security 
        Act (42 U.S.C. 629(d)(1) and (2)) are each amended by striking 
        ``and 1998'' and inserting ``1998, 1999, 2000, and 2001''.
            (3) Conforming amendments.--Section 13712 of the Omnibus 
        Budget Reconciliation Act of 1993 (42 U.S.C. 670 note) is 
        amended--
                    (A) in subsection (c), by striking ``1998'' each 
                place it appears and inserting ``2001''; and
                    (B) in subsection (d)(2), by striking ``and 1998'' 
                and inserting ``1998, 1999, 2000, and 2001''.

    (b) Expansion for Time-Limited Family Reunification 
Services and Adoption Promotion and Support Services.--
            (1) Additions to state plan.--Section 432 of the Social 
        Security Act (42 U.S.C. 629b) is amended--
                    (A) in subsection (a)--
                          (i) in paragraph (4), by striking ``and 
                      community-based family support services'' and 
                      inserting ``, community-based family support 
                      services, time-limited family reunification 
                      services, and adoption promotion and support 
                      services,''; and
                          (ii) in paragraph (5)(A), by striking ``and 
                      community-based family support services'' and 
                      inserting ``, community-based family support 
                      services, time-limited family reunification 
                      services, and adoption promotion and support 
                      services''; and

[[Page 111 STAT. 2131]]

                    (B) in subsection (b)(1), by striking ``and family 
                support'' and inserting ``, family support, time-limited 
                family reunification, and adoption promotion and 
                support''.
            (2) Definitions of time-limited family reunification 
        services and adoption promotion and support services.--Section 
        431(a) of the Social Security Act (42 U.S.C. 629a(a)) is amended 
        by adding at the end the following:
            ``(7) Time-limited family reunification services.--
                    ``(A) In general.--The term `time-limited family 
                reunification services' means the services and 
                activities described in subparagraph (B) that are 
                provided to a child that is removed from the child's 
                home and placed in a foster family home or a child care 
                institution and to the parents or primary caregiver of 
                such a child, in order to facilitate the reunification 
                of the child safely and 
                appropriately within a timely fashion, but only during 
                the 15-month period that begins on the date that the 
                child, pursuant to section 475(5)(F), is considered to 
                have entered foster care.
                    ``(B) Services and activities described.--The 
                services and activities described in this subparagraph 
                are the following:
                          ``(i) Individual, group, and family 
                      counseling.
                          ``(ii) Inpatient, residential, or outpatient 
                      substance abuse treatment services.
                          ``(iii) Mental health services.
                          ``(iv) Assistance to address domestic 
                      violence.
                          ``(v) Services designed to provide temporary 
                      child care and therapeutic services for families, 
                      including crisis nurseries.
                          ``(vi) Transportation to or from any of the 
                      services and activities described in this 
                      subparagraph.
            ``(8) Adoption promotion and support services.--The term 
        `adoption promotion and support services' means services and 
        activities designed to encourage more adoptions out of the 
        foster care system, when adoptions promote the best interests of 
        children, including such activities as pre- and post-adoptive 
        services and activities designed to expedite the adoption 
        process and support adoptive families.''.
            (3) Additional conforming amendments.--
                    (A) Purposes.--Section 430(a) of the Social Security 
                Act (42 U.S.C. 629(a)) is amended by striking ``and 
                community-based family support services'' and inserting 
                ``, community-based family support services, time-
                limited family reunification services, and adoption 
                promotion and support services''.
                    (B) Program title.--The heading of subpart 2 of part 
                B of title IV of the Social Security Act (42 U.S.C. 629 
                et seq.) is amended to read as follows:

           ``Subpart 2--Promoting Safe and Stable Families''.

    (c) Emphasizing the Safety of the Child.--
            (1) Requiring assurances that the safety of children shall 
        be of paramount concern.--Section 432(a) of the Social Security 
        Act (42 U.S.C. 629b(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph (7);

[[Page 111 STAT. 2132]]

                    (B) by striking the period at the end of paragraph 
                (8); and
                    (C) by adding at the end the following:
            ``(9) contains assurances that in administering and 
        conducting service programs under the plan, the safety of the 
        children to be served shall be of paramount concern.''.
            (2) Definitions of family preservation and family 
        support services.--Section 431(a) of the Social Security Act (42 
        U.S.C. 629a(a)) is amended--
                    (A) in paragraph (1)--
                          (i) in subparagraph (A), by inserting ``safe 
                      and'' before ``appropriate'' each place it 
                      appears; and
                          (ii) in subparagraph (B), by inserting 
                      ``safely'' after ``remain''; and
                    (B) in paragraph (2)--
                          (i) by inserting ``safety and'' before ``well-
                      being ''; and
                          (ii) by striking ``stable'' and inserting 
                      ``safe, stable,''.

    (d) Clarification of Maintenance of Effort Requirement.--
            (1) Definition of non-federal funds.--Section 431(a) of the 
        Social Security Act (42 U.S.C. 629a(a)), as amended by 
        subsection (b)(2), is amended by adding at the end the 
        following:
            ``(9) Non-federal funds.--The term `non-Federal funds' means 
        State funds, or at the option of a State, State and local 
        funds.''.
            (2) <<NOTE: 42 USC 629a note.>>  Effective date.--The 
        amendment made by paragraph (1) takes effect as if included in 
        the enactment of section 13711 of the Omnibus Budget 
        Reconciliation Act of 1993 (Public Law 103-33; 107 Stat. 649).

SEC. 306. HEALTH INSURANCE COVERAGE FOR CHILDREN WITH 
            SPECIAL NEEDS.

    Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as 
amended by section 106, is amended--
            (1) in paragraph (19), by striking ``and'' at the end;
            (2) in paragraph (20), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(21) provides for health insurance coverage (including, at 
        State option, through the program under the State plan approved 
        under title XIX) for any child who has been determined to be a 
        child with special needs, for whom there is in effect an 
        adoption assistance agreement (other than an agreement under 
        this part) between the State and an adoptive parent or parents, 
        and who the State has determined cannot be placed with an 
        adoptive parent or parents without medical assistance because 
        such child has special needs for medical, mental health, or 
        rehabilitative care, and that with respect to the provision of 
        such health insurance coverage--
                    ``(A) such coverage may be provided through 1 or 
                more State medical assistance programs;
                    ``(B) the State, in providing such coverage, shall 
                ensure that the medical benefits, including mental 
                health benefits, provided are of the same type and kind 
                as those that would be provided for children by the 
                State under title XIX;

[[Page 111 STAT. 2133]]

                    ``(C) in the event that the State provides such 
                coverage through a State medical assistance program 
                other than the program under title XIX, and the State 
                exceeds its funding for services under such other 
                program, any such child shall be deemed to be receiving 
                aid or assistance under the State plan under this part 
                for purposes of section 1902(a)(10)(A)(i)(I); and
                    ``(D) in determining cost-sharing requirements, the 
                State shall take into consideration the circumstances of 
                the adopting parent or parents and the needs of the 
                child being adopted consistent, to the extent coverage 
                is provided through a State medical assistance program, 
                with the rules under such program.''.

SEC. 307. CONTINUATION OF ELIGIBILITY FOR ADOPTION ASSISTANCE PAYMENTS 
            ON BEHALF OF CHILDREN WITH SPECIAL NEEDS WHOSE INITIAL 
            ADOPTION HAS BEEN DISSOLVED.

    (a) Continuation of Eligibility.--Section 473(a)(2) of the Social 
Security Act (42 U.S.C. 673(a)(2)) is amended by adding at the end the 
following: ``Any child who meets the requirements of subparagraph (C), 
who was determined eligible for adoption assistance payments under this 
part with respect to a prior adoption, who is available for adoption 
because the prior adoption has been dissolved and the parental rights of 
the adoptive parents have been terminated or because the child's 
adoptive parents have died, and who fails to meet the requirements of 
subparagraphs (A) and (B) but would meet such requirements if the child 
were treated as if the child were in the same financial and other 
circumstances the child was in the last time the child was determined 
eligible for adoption assistance payments under this part and the prior 
adoption were treated as never having occurred, shall be treated as 
meeting the requirements of this paragraph for purposes of paragraph 
(1)(B)(ii).''.
    (b) <<NOTE: 42 USC 673 note.>>  Applicability.--The amendment made 
by subsection (a) shall only apply to children who are adopted on or 
after October 1, 1997.

SEC. 308. STATE STANDARDS TO ENSURE QUALITY SERVICES FOR CHILDREN IN 
            FOSTER CARE.

    Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as 
amended by sections 106 and 306, is amended--
            (1) in paragraph (20), by striking ``and'' at the end;
            (2) in paragraph (21), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(22) provides that, not later than January 1, 1999, the 
        State shall develop and implement standards to ensure that 
        children in foster care placements in public or private agencies 
        are provided quality services that protect the safety and health 
        of the children.''.

                         TITLE IV--MISCELLANEOUS

SEC. 401. <<NOTE: 42 USC 671 note.>>  PRESERVATION OF REASONABLE 
            PARENTING.

    Nothing in this Act is intended to disrupt the family unnecessarily 
or to intrude inappropriately into family life, to prohibit

[[Page 111 STAT. 2134]]

the use of reasonable methods of parental discipline, or to prescribe a 
particular method of parenting.

SEC. 402. <<NOTE: 42 USC 671 note.>>  REPORTING REQUIREMENTS.

    Any information required to be reported under this Act shall be 
supplied to the Secretary of Health and Human Services through data 
meeting the requirements of the Adoption and Foster Care Analysis and 
Reporting System established pursuant to section 479 of the Social 
Security Act (42 U.S.C. 679), to the extent such data is available under 
that system. The Secretary shall make such modifications to regulations 
issued under section 479 of such Act with respect to the Adoption and 
Foster Care Analysis and Reporting System as may be necessary to allow 
States to obtain data that meets the requirements of such system in 
order to satisfy the reporting requirements of this Act.

SEC. 403. SENSE OF CONGRESS REGARDING STANDBY GUARDIANSHIP.

    It is the sense of Congress that the States should have in effect 
laws and procedures that permit any parent who is chronically ill or 
near death, without surrendering parental rights, to designate a standby 
guardian for the parent's minor children, whose authority would take 
effect upon--
            (1) the death of the parent;
            (2) the mental incapacity of the parent; or
            (3) the physical debilitation and consent of the parent.

SEC. 404. TEMPORARY ADJUSTMENT OF CONTINGENCY FUND FOR STATE WELFARE 
            PROGRAMS.

    (a) Reduction of Appropriation.--Section 403(b)(2) of the Social 
Security Act (42 U.S.C. 603(b)(2)) is amended by inserting ``, reduced 
by the sum of the dollar amounts specified in paragraph (6)(C)(ii)'' 
before the period.
    (b) Increase in State Remittances.--Section 403(b)(6) of such Act 
(42 U.S.C. 603(b)(6)) is amended by adding at the end the following:
                    ``(C) Adjustment of state remittances.--
                          ``(i) In general.--The amount otherwise 
                      required by subparagraph (A) to be remitted by a 
                      State for a fiscal year shall be increased by the 
                      lesser of--
                                    ``(I) the total adjustment for the 
                                fiscal year, multiplied by the 
                                adjustment percentage for the State for 
                                the fiscal year; or
                                    ``(II) the unadjusted net payment to 
                                the State for the fiscal year.
                          ``(ii) Total adjustment.--As used in clause 
                      (i), the term `total adjustment' means--
                                    ``(I) in the case of fiscal year 
                                1998, $2,000,000;
                                    ``(II) in the case of fiscal year 
                                1999, $9,000,000;
                                    ``(III) in the case of fiscal year 
                                2000, $16,000,000; and
                                    ``(IV) in the case of fiscal year 
                                2001, $13,000,000.
                          ``(iii) Adjustment percentage.--As used in 
                      clause (i), the term `adjustment percentage' 
                      means, with respect to a State and a fiscal year--
                                    ``(I) the unadjusted net payment to 
                                the State for the fiscal year; divided 
                                by

[[Page 111 STAT. 2135]]

                                    ``(II) the sum of the unadjusted net 
                                payments to all States for the fiscal 
                                year.
                          ``(iv) Unadjusted net payment.--As used in 
                      this subparagraph, the term, `unadjusted net 
                      payment' means with respect to a State and a 
                      fiscal year--
                                    ``(I) the total amount paid to the 
                                State under paragraph (3) in the fiscal 
                                year; minus
                                    ``(II) the amount that, in the 
                                absence of this subparagraph, would be 
                                required by subparagraph (A) or by 
                                section 409(a)(10) to be remitted by the 
                                State in respect of the payment.''.

    (c) Recommendations for Improving the Operation of the Contingency 
Fund.--Not later than March 1, 1998, the Secretary of Health and Human 
Services shall make recommendations to the Congress for improving the 
operation of the Contingency Fund for State Welfare Programs.

SEC. 405. <<NOTE: Reports. 42 USC 613 note.>>  COORDINATION OF SUBSTANCE 
            ABUSE AND CHILD 
            PROTECTION SERVICES.

    Within 1 year after the date of the enactment of this Act, the 
Secretary of Health and Human Services, based on information from the 
Substance Abuse and Mental Health Services Administration and the 
Administration for Children and Families in the Department of Health of 
Human Services, shall prepare and submit to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate a report which describes the extent and scope of the problem 
of substance abuse in the child welfare population, the types of 
services provided to such population, and the outcomes resulting from 
the provision of such services to such population. The report shall 
include recommendations for any legislation that may be needed to 
improve coordination in providing such services to such population.

SEC. 406. <<NOTE: 42 USC 671 note.>>  PURCHASE OF AMERICAN-MADE 
            EQUIPMENT AND 
            PRODUCTS.

    (a) In General.--It is the sense of the Congress that, to the 
greatest extent practicable, all equipment and products purchased with 
funds made available under this Act should be American-made.
    (b) Notice Requirement.--In providing financial assistance to, or 
entering into any contract with, any entity using funds made available 
under this Act, the head of each Federal agency, to the greatest extent 
practicable, shall provide to such entity a notice describing the 
statement made in subsection (a) by the Congress.

[[Page 111 STAT. 2136]]

                         TITLE V--EFFECTIVE DATE

SEC. 501. <<NOTE: 42 USC 622 note.>>  EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, the 
amendments made by this Act take effect on the date of enactment of this 
Act.
    (b) Delay Permitted if State Legislation Required.--In the case of a 
State plan under part B or E of title IV of the Social Security Act 
which the Secretary of Health and Human Services determines requires 
State legislation (other than legislation appropriating funds) in order 
for the plan to meet the additional requirements imposed by the 
amendments made by this Act, the State plan shall not be regarded as 
failing to comply with the requirements of such part solely on the basis 
of the failure of the plan to meet such additional requirements before 
the first day of the first calendar quarter beginning after the close of 
the first regular session of the State legislature that begins after the 
date of enactment of this Act. For purposes of the previous sentence, in 
the case of a State that has a 2-year legislative session, each year of 
such session shall be deemed to be a separate regular session of the 
State legislature.

    Approved November 19, 1997.

LEGISLATIVE HISTORY--H.R. 867:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 105-77 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 143 (1997):
            Apr. 30, considered and passed House.
            Nov. 8, considered and passed Senate, amended.
            Nov. 13, House concurred in Senate amendment with an 
                amendment. Senate concurred in House amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):
            Nov. 19, Presidential remarks.

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