SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Adoption Promotion Act of 2003''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) In 1997, the Congress passed the Adoption and Safe 
        Families Act of 1997 to promote comprehensive child welfare 
        reform to ensure that consideration of children's safety is 
        paramount in child welfare decisions, and to provide a greater 
        sense of urgency to find every child a safe, permanent home.
            (2) The Adoption and Safe Families Act of 1997 also created 
        the Adoption Incentives program, which authorizes incentive 
        payments to States to promote adoptions, with additional 
        incentives provided for the adoption of foster children with 
        special needs.
            (3) Since 1997, all States, the District of Columbia, and 
        Puerto Rico have qualified for incentive payments for their 
        work in promoting adoption of foster children.
            (4) Between 1997 and 2002, adoptions increased by 64 
        percent, and adoptions of children with special needs increased 
        by 63 percent; however, 542,000 children remain in foster care, 
        and 126,000 are eligible for adoption.
            (5) Although substantial progress has been made to promote 
        adoptions, attention should be focused on promoting adoption of 
        older children. Recent data suggest that half of the children 
        waiting to be adopted are age 9 or older.

SEC. 3. REAUTHORIZATION OF ADOPTION INCENTIVE PAYMENTS PROGRAM.

    (a) In General.--Section 473A of the Social Security Act (42 U.S.C. 
673b) is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2)(A) 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; or
            ``(B) the number of older child adoptions in the State 
        during the fiscal year exceeds the base number of older child 
        adoptions for the State for the fiscal year;'';
                    (B) in paragraph (4), by striking ``and 2002'' and 
                inserting ``through 2007''; and
                    (C) in paragraph (5), by striking ``2002'' and 
                inserting ``2007'';
            (2) in subsection (c), by striking paragraph (2) and 
        inserting the following:
            ``(2) Determination of numbers of adoptions based on afcars 
        data.--The Secretary shall determine the numbers of foster 
        child adoptions, of special needs adoptions that are not older 
        child adoptions, and of older child adoptions in a State during 
        each of fiscal years 2002 through 2007, 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.'';
            (3) in subsection (d)(1)--
                    (A) in subparagraph (A), by striking ``and'';
                    (B) in subparagraph (B)--
                            (i) by inserting ``that are not older child 
                        adoptions'' after ``adoptions'' each place it 
                        appears; and
                            (ii) by striking the period and inserting 
                        ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) $4,000, multiplied by the amount (if any) by 
                which the number of older child adoptions in the State 
                during the fiscal year exceeds the base number of older 
                child adoptions for the State for the fiscal year.'';
            (4) in subsection (g)--
                    (A) in paragraph (3), by striking subparagraphs (A) 
                and (B) and inserting the following:
                    ``(A) with respect to fiscal year 2003, the number 
                of foster child adoptions in the State in fiscal year 
                2002; 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 2002 and ends 
                with the fiscal year preceding that subsequent fiscal 
                year.'';
                    (B) in paragraph (4)--
                            (i) in the paragraph heading, by inserting 
                        ``that are not older child adoptions'' after 
                        ``adoptions''; and
                            (ii) by striking subparagraphs (A) and (B) 
                        and inserting the following:
                    ``(A) with respect to fiscal year 2003, the number 
                of special needs adoptions that are not older child 
                adoptions in the State in fiscal year 2002; and
                    ``(B) with respect to any subsequent fiscal year, 
                the number of special needs adoptions that are not 
                older child adoptions in the State in the fiscal year 
                for which the number is the greatest in the period that 
                begins with fiscal year 2002 and ends with the fiscal 
                year preceding that subsequent fiscal year.''; and
                    (C) by adding at the end the following:
            ``(5) Base number of older child adoptions.--The term `base 
        number of older child adoptions for a State' means--
                    ``(A) with respect to fiscal year 2003, the number 
                of older child adoptions in the State in fiscal year 
                2002; and
                    ``(B) with respect to any subsequent fiscal year, 
                the number of older child adoptions in the State in the 
                fiscal year for which the number is the greatest in the 
                period that begins with fiscal year 2002 and ends with 
                the fiscal year preceding that subsequent fiscal year.
            ``(6) Older child adoptions.--The term `older child 
        adoptions' means the final adoption of a child who has attained 
        9 years of age if--
                    ``(A) at the time of the adoptive placement, the 
                child was in foster care under the supervision of the 
                State; or
                    ``(B) an adoption assistance agreement was in 
                effect under section 473 with respect to the child.'';
            (5) in subsection (h)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by striking 
                        ``and'';
                            (ii) in subparagraph (C), by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(D) $43,000,000 for each of fiscal years 2004 
                through 2008.''; and
                    (B) in paragraph (2)--
                            (i) by inserting ``, or under any other law 
                        for grants under subsection (a),'' after 
                        ``(1)''; and
                            (ii) by striking ``2003'' and inserting 
                        ``2008'';
            (6) in subsection (i)(4), by striking ``1998 through 2000'' 
        and inserting ``2004 through 2006''; and
            (7) by striking subsection (j).
    (b) Report on Adoption and Other Permanency Options for Children in 
Foster Care.--Not later than October 1, 2004, the Secretary of Health 
and Human Services shall submit to the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance of the Senate 
a report on State efforts to promote adoption and other permanency 
options for children in foster care, with special emphasis on older 
children in foster care. In preparing this report, the Secretary shall 
review State waiver programs and consult with representatives from 
State governments, public and private child welfare agencies, and child 
advocacy organizations to identify promising approaches.

SEC. 4. AUTHORITY TO IMPOSE PENALTIES FOR FAILURE TO SUBMIT AFCARS 
              REPORT.

    Section 474 of the Social Security Act (42 U.S.C. 674) is amended 
by adding at the end the following:
    ``(f)(1) If the Secretary finds that a State has failed to submit 
to the Secretary data, as required by regulation, for the data 
collection system implemented under section 479, the Secretary shall, 
within 30 days after the date by which the data was due to be so 
submitted, notify the State of the failure and that payments to the 
State under this part will be reduced if the State fails to submit the 
data, as so required, within 6 months after the date the data was 
originally due to be so submitted.
    ``(2) If the Secretary finds that the State has failed to submit 
the data, as so required, by the end of the 6-month period referred to 
in paragraph (1) of this subsection, then, notwithstanding subsection 
(a) of this section and any regulations promulgated under section 
1123A(b)(3), the Secretary shall reduce the amounts otherwise payable 
to the State under this part, for each quarter ending in the 6-month 
period (and each quarter ending in each subsequent consecutively 
occurring 6-month period until the Secretary finds that the State has 
submitted the data, as so required), by--
            ``(A) \1/6\ of 1 percent of the total amount expended by 
        the State for administration of foster care activities under 
        the State plan approved under this part in the quarter so 
        ending, in the case of the 1st 6-month period during which the 
        failure continues; or
            ``(B) \1/4\ of 1 percent of the total amount so expended, 
        in the case of the 2nd or any subsequent such 6-month 
        period.''.

SEC. 5. EFFECTIVE DATE.

     The amendments made by this Act shall take effect on October 1, 
2003.
Adoption Promotion Act of 2003 - Amends part E (Foster Care and Adoption Assistance) of title IV of the Social Security Act to revise requirements with respect to States eligible to receive adoption incentives payments. Reauthorizes the adoption incentive payments program. Provides additional incentives for adoptions of older children (nine years of age and up). Modifies requirements with respect to determination of numbers of special needs adoptions that are not older children as well as adoptions of older children.

Revises the formula for adoption incentive payments to States to provide a payment for: (1) special needs adoptions that are not older child adoptions; and (2) older child adoptions.

Repeals the requirement that the Secretary of Health and Human Services provide supplemental grants to incentive-eligible States.

Authorizes the Secretary to impose specified penalties against a State for failure to provide necessary data to the Secretary for the Adoption and Foster Care Analysis and Reporting System.
A bill to reauthorize the adoption incentive payments program under part E of title IV of the Social Security Act, and for other purposes