SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Omnibus Foster Care Improvement Act 
of 1995''.

SEC. 2. REQUIREMENT THAT STATES ADMINISTER QUALIFYING EXAMINATIONS TO 
              ALL STATE EMPLOYEES WITH NEW AUTHORITY TO MAKE DECISIONS 
              REGARDING CHILD WELFARE SERVICES.

    Section 474 of the Social Security Act (42 U.S.C. 674) is amended 
by adding at the end the following:
    ``(d) The Secretary may not make a payment to a State under 
subsection (a) for any calendar quarter beginning after the 18-month 
period that begins with the date of the enactment of this subsection, 
unless the State has in effect procedures to ensure that, before the 
State provides to a prospective child welfare decisionmaker the 
authority to make decisions regarding child welfare services, the 
individual must take and pass an examination, administered by the 
State, that tests knowledge of such subjects as child development, 
family dynamics, dysfunctional behavior, substance abuse, child abuse, 
and community advocacy. As used in the preceding sentence, the term 
`prospective child welfare decisionmaker' means an individual who, on 
the date of the enactment of this subsection, does not have any 
authority to make a decision regarding child welfare services.''.

SEC. 3. PROCEDURES TO EXPEDITE THE PERMANENT PLACEMENT OF FOSTER 
              CHILDREN.

    (a) In General.--Section 474 of the Social Security Act (42 U.S.C. 
674), as amended by section 2 of this Act, is amended by adding at the 
end the following:
    ``(e) The Secretary may not make a payment to a State for a 
calendar quarter under subsection (a) unless the State has in effect 
procedures requiring the State agency, at the time a child is removed 
from a home and placed in foster care under the supervision of the 
State, to locate any parent of the child who is not living at the home, 
and evaluate the ability of the parent to provide a suitable home for 
the child.''.
    (b) Applicability.--The amendment made by subsection (a) of this 
section shall not apply with respect to any child who, on the date of 
the enactment of this Act, is in foster care under the supervision of a 
State (as defined in section 1101(a)(1) of the Social Security Act for 
purposes of title IV of such Act).

SEC. 4. PLACEMENT OF FOSTER CHILDREN IN PERMANENT KINSHIP CARE 
              ARRANGEMENTS.

    (a) State Option to Deem Kinship Placement as Adoption.--Section 
473(a) of the Social Security Act (42 U.S.C. 673(a)) is amended by 
adding at the end the following:
    ``(7) If a State places a child (who has been in foster care under 
the supervision of the State) with a blood relative of the child or of 
a half-sibling of the child, and transfers legal custody of the child 
to the relative, pursuant to a written agreement, entered into between 
the State and the relative, that contains provisions of the type 
described in section 475(3), then, at the option of the State, for 
purposes of this part--
            ``(A) the placement is deemed an adoption;
            ``(B) the initiation of the proceeding to so place the 
        child is deemed an adoption proceeding;
            ``(C) the relative is deemed the adoptive parent of the 
        child;
            ``(D) the agreement is deemed an adoption assistance 
        agreement;
            ``(E) the payments made under the agreement are deemed to 
        be adoption assistance payments; and
            ``(F) any reasonable and necessary court costs, attorneys 
        fees, and other expenses which are directly related to the 
        placement or the transfer of legal custody and are not in 
        violation of State or Federal law are deemed nonrecurring 
        adoption expenses.''.
    (b) Consideration of Kinship Placement Option at Dispositional 
Hearing.--Section 475(5)(C) of such Act (42 U.S.C. 675(5)(C)) is 
amended by inserting ``should be placed with a relative of the child as 
provided in section 473(a)(7),'' before ``should be placed for 
adoption''.

SEC. 5. FEDERAL FUNDS FOR FOSTER CARE AND ADOPTION ASSISTANCE AVAILABLE 
              ONLY TO STATES THAT REQUIRE STATE AGENCIES, IN 
              CONSIDERING APPLICATIONS TO ADOPT CERTAIN FOSTER 
              CHILDREN, TO GIVE PREFERENCE TO APPLICATIONS OF A FOSTER 
              PARENT OR CARETAKER RELATIVE OF THE CHILD.

    Section 474 of the Social Security Act (42 U.S.C. 674), as amended 
by sections 2 and 3 of this Act, is amended by adding at the end the 
following:
    ``(f) Notwithstanding any other provision of this section, the 
Secretary may not make any payment to a State under this section, for 
any calendar quarter ending after the 5-year period that begins with 
the date of the enactment of this subsection, unless the State has in 
effect laws and procedures requiring a State agency to complete the 
processing of an application to adopt a child who is in foster care 
under the responsibility of the State that has been submitted by a 
foster parent or caretaker relative of the child, before completing the 
processing of any other application to adopt the child if--
            ``(1) a court has approved a permanent plan for adoption of 
        the child, or the child has been freed for adoption; and
            ``(2) the agency with authority to place the child for 
        adoption determines that--
                    ``(A) the child has substantial emotional ties to 
                the foster parent or caretaker relative, as the case 
                may be; and
                    ``(B) removal of the child from the foster parent 
                or caretaker relative, as the case may be, would be 
                seriously detrimental to the well-being of the 
                child.''.

SEC. 6. EFFECTIVE DATE.

    The amendments made by this Act shall apply to payments under part 
E of title IV of the Social Security Act for quarters beginning after 
the date of the enactment of this Act.
Omnibus Foster Care Improvement Act of 1995 - Amends part E (Foster Care and Adoption Assistance) of title IV of the Social Security Act to require States to administer qualifying examinations to all State employees with new authority to make decisions regarding child welfare services. 
(Sec. 3) Prohibits the Secretary of Health and Human Services from making a payment of such assistance to a State unless the State has in effect procedures requiring the State agency, at the time a child is removed from a home and placed in foster care under State supervision, to locate any parent of the child who is not living at the home and evaluate that parent's ability to provide a suitable home for the child. 
(Sec. 4) Gives States the option of deeming as adoption the placement of a child who was under State-supervised foster care with a blood relative given legal custody of the child. 
(Sec. 5) Prohibits the Secretary, after a five-year interim period, from making a payment of such assistance to a State unless the State requires a State agency to give preference to applications of a foster parent or caretaker relative of the child in considering applications to adopt certain foster children.
Omnibus Foster Care Improvement Act of 1995