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[House Report 113-441]
[From the U.S. Government Publishing Office]

113th Congress  }                                            {   Report
  2d Session    }       HOUSE OF REPRESENTATIVES             {  113-441

=======================================================================
 
  PREVENTING SEX TRAFFICKING AND IMPROVING OPPORTUNITIES FOR YOUTH IN 
                            FOSTER CARE ACT 

                                _______
                                

  May 7, 2014.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

            Mr. Camp, from the Committee on Ways and Means, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 4058]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 4058) to prevent and address sex trafficking of 
youth in foster care, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Preventing Sex Trafficking and 
Improving Opportunities for Youth in Foster Care Act''.

SEC. 2. TABLE OF CONTENTS.

  The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings.

  TITLE I--IDENTIFYING AND PROTECTING YOUTH AT RISK OF SEX TRAFFICKING

Sec. 101. Identifying and screening youth at risk of sex trafficking.
Sec. 102. Documenting and reporting instances of sex trafficking.
Sec. 103. State plan requirement to locate and respond to children who 
run away from foster care.
Sec. 104. Increasing information on youth in foster care to prevent sex 
trafficking.

    TITLE II--IMPROVING OPPORTUNITIES FOR YOUTH IN FOSTER CARE AND 
                         SUPPORTING PERMANENCY

Sec. 201. Supporting normalcy for children in foster care.
Sec. 202. Improvements to another planned permanent living arrangement 
as a permanency option.
Sec. 203. Empowering foster youth age 14 and older in the development 
of their own case plan and transition planning for a successful 
adulthood.

    TITLE III--IMPROVING DATA COLLECTION AND REPORTING ON CHILD SEX 
                              TRAFFICKING

Sec. 301. Including sex trafficking data in the Adoption and Foster 
Care Analysis and Reporting System.
Sec. 302. Information on children in foster care in annual reports 
using AFCARS data; consultation.

SEC. 3. FINDINGS.

  The Congress makes the following findings:
          (1) Recent reports on sex trafficking estimate that thousands 
        of children are at risk for domestic sex trafficking.
          (2) The risk is compounded every year for the up to 30,000 
        young people who are ``emancipated'' from foster care.
          (3) The current child welfare system does not effectively 
        identify, prevent, or intervene when a child presents as 
        trafficked or at risk for trafficking.
          (4) Within the foster care system, many young adults are 
        housed in congregate care facilities or group homes, which 
        often are targeted by traffickers.
          (5) Within the foster care system, children are routinely 
        denied the opportunity to participate in normal, age or 
        developmentally-appropriate activities such as joining 4-H and 
        other clubs, participating in school plays, playing sports, 
        going to camp, and visiting a friend.
          (6) A lack of normalcy and barriers to participation in age 
        or developmentally-appropriate activities contribute to 
        increased vulnerability to trafficking, homelessness, and other 
        negative outcomes for children in foster care.
          (7) The latest research in adolescent brain development 
        indicates that young people learn through experience and 
        through trial and error, and that as part of healthy brain 
        development young people need to take on increasing levels of 
        decisionmaking through their teenage years.
          (8) In order to combat domestic sex trafficking and to 
        improve outcomes for children in foster care, systemic changes 
        need to be made to the child welfare system that focus on--
                  (A) the reduction of children in long-term foster 
                care;
                  (B) greater child engagement in case planning while 
                in foster care;
                  (C) improved efforts to locate and respond to 
                children who have run away from foster care and to 
                reduce the number of foster children who are on the 
                run;
                  (D) improved policies and procedures that encourage 
                age or developmentally-appropriate activities for 
                children in foster care and that permit more 
                opportunities for such children to make meaningful and 
                permanent connections with caring adults; and
                  (E) with regard to domestic sex trafficking, improved 
                identification, prevention, and intervention by the 
                child welfare agency in collaboration with the courts, 
                State and local law enforcement agencies, schools, 
                juvenile justice agencies, and other social service 
                providers.

  TITLE I--IDENTIFYING AND PROTECTING YOUTH AT RISK OF SEX TRAFFICKING

SEC. 101. IDENTIFYING AND SCREENING YOUTH AT RISK OF SEX TRAFFICKING.

  Section 471(a)(9) of the Social Security Act (42 U.S.C. 671(a)(9)) is 
amended--
          (1) in subparagraph (A), by striking ``and'';
          (2) in subparagraph (B), by inserting ``and'' after the 
        semicolon; and
          (3) by adding at the end the following:
                  ``(C) not later than--
                          ``(i) 1 year after the date of the enactment 
                        of this subparagraph, demonstrate to the 
                        Secretary that the State agency has developed, 
                        in consultation with organizations with 
                        experience in dealing with at-risk youth, 
                        policies and procedures for identifying and 
                        screening (including relevant training for 
                        caseworkers), and for determining appropriate 
                        State action and services with respect to--
                                  ``(I) any child over whom the State 
                                agency has responsibility for 
                                placement, care, or supervision 
                                (including children for whom a State 
                                child welfare agency has an open case 
                                file but who have not been removed from 
                                the home and youth who are not in 
                                foster care but are receiving services 
                                under section 477 of this Act) who the 
                                State has reasonable cause to believe--
                                          ``(aa) is a victim of sex 
                                        trafficking (as defined in 
                                        section 103(10) of the 
                                        Trafficking Victims Protection 
                                        Act of 2000 (22 U.S.C. 
                                        7102(10))) or a severe form of 
                                        trafficking in persons 
                                        described in section 103(9)(A) 
                                        of such Act (22 U.S.C. 
                                        7102(9)(A)); or
                                          ``(bb) is at risk of being a 
                                        victim of either kind of 
                                        trafficking; and
                                  ``(II) at the option of the State, 
                                any individual, without regard to 
                                whether the individual is or was in 
                                foster care under the responsibility of 
                                the State, who has not attained 26 
                                years of age; and
                          ``(ii) 2 years after such date of enactment, 
                        demonstrate to the Secretary that the State 
                        agency is implementing, in consultation with 
                        the child protective services agency or unit 
                        for the State, the policies and procedures 
                        referred to in clause (i).''.

SEC. 102. DOCUMENTING AND REPORTING INSTANCES OF SEX TRAFFICKING.

  (a) State Plan Requirements.--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 (32);
          (2) by striking the period at the end of paragraph (33) and 
        inserting a semicolon; and
          (3) by adding at the end the following:
          ``(34) provides that, for each child over whom the State 
        agency has responsibility for placement, care, or supervision 
        (including any child for whom a State child welfare agency has 
        an open case file but who has not been removed from the home, 
        and any youth who is not in foster care but is receiving 
        services under section 477), the State agency shall--
                  ``(A) not later than 2 years after the date of the 
                enactment of this paragraph, identify and document 
                appropriately in agency records each child who is 
                identified as being a victim of sex trafficking (as 
                defined in section 103(10) of the Trafficking Victims 
                Protection Act of 2000) or as being a victim of severe 
                forms of trafficking in persons described in section 
                103(9)(A) of such Act, as such a victim; and
                  ``(B) report immediately, and in no case later than 
                24 hours after receiving--
                          ``(i) information on children who have been 
                        identified as being victims of sex trafficking 
                        (as defined in subparagraph (A) of this 
                        paragraph) to the law enforcement authorities; 
                        and
                          ``(ii) information on missing or abducted 
                        children to the law enforcement authorities for 
                        entry into the National Crime Information 
                        Center (NCIC) database of the Federal Bureau of 
                        Investigation, established pursuant to section 
                        534 of title 28, United States Code, and to the 
                        National Center for Missing and Exploited 
                        Children; and
          ``(35) not later than 2 years after the date of the enactment 
        of this paragraph, contains a regularly updated description, 
        made available to the public on the Internet website of the 
        State agency, of the specific measures taken by the State 
        agency to protect and provide services to children who are 
        victims of sex trafficking (as defined in section 103(10) of 
        the Trafficking Victims Protection Act of 2000), or victims of 
        severe forms of trafficking in persons described in section 
        103(9)(A) of such Act, including efforts to coordinate with 
        State and local law enforcement, schools, juvenile justice 
        agencies, and social service agencies such as runaway and 
        homeless youth shelters and transitional and other supportive 
        housing providers to serve that population.''.
  (b) Regulations.--The Secretary of Health and Human Services shall 
promulgate regulations implementing the amendments made by subsection 
(a) of this section and shall provide uniform definitions for States to 
use for the reports required under section 471(a)(34)(B) of the Social 
Security Act, as added by such subsection (a).

SEC. 103. STATE PLAN REQUIREMENT TO LOCATE AND RESPOND TO CHILDREN WHO 
                    RUN AWAY FROM FOSTER CARE.

  Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as 
amended by section 102 of this Act, is amended--
          (1) by striking ``and'' at the end of paragraph (34);
          (2) by striking the period at the end of paragraph (35) and 
        inserting ``; and''; and
          (3) by adding at the end the following:
          ``(36) provides that, not later than 1 year after the date of 
        the enactment of this paragraph, the State shall develop and 
        implement specific protocols for--
                  ``(A) expeditiously locating any child missing from 
                foster care;
                  ``(B) determining the primary factors that 
                contributed to the child's running away or otherwise 
                being absent from care, and to the extent possible and 
                appropriate, responding to those factors in current and 
                subsequent placements;
                  ``(C) determining the child's experiences while 
                absent from care, including screening the child to 
                determine if he or she is a possible victim of sex 
                trafficking (as defined in paragraph (9)(C)); and
                  ``(D) reporting such related information as required 
                by the Secretary.''.

SEC. 104. INCREASING INFORMATION ON YOUTH IN FOSTER CARE TO PREVENT SEX 
                    TRAFFICKING.

  Not later than 2 years after the date of the enactment of this Act, 
the Secretary of Health and Human Services shall submit to the Congress 
a written report which summarizes the following:
          (1) Information on children who run away from foster care and 
        their risk of becoming victims of sex trafficking, using data 
        reported by States under section 479 of the Social Security Act 
        and information collected by States related to section 
        471(a)(36) of such Act, including--
                  (A) characteristics of children who run away from 
                foster care;
                  (B) potential factors associated with children 
                running away from foster care (such as reason for entry 
                into care, length of stay in care, type of placement, 
                and other factors that contributed to the child's 
                running away);
                  (C) information on children's experiences while 
                absent from care; and
                  (D) trends in the number of children reported as 
                runaways in each fiscal year (including factors that 
                may have contributed to changes in such trends).
          (2) Information on State efforts to provide specialized 
        services, foster family homes, or child care institutions for 
        children who are victims of sex trafficking.
          (3) Information on State efforts to ensure children in foster 
        care form and maintain long-lasting connections to caring 
        adults, even when a child in foster care must move to another 
        foster family home or when the child is placed under the 
        supervision of a new caseworker.

    TITLE II--IMPROVING OPPORTUNITIES FOR YOUTH IN FOSTER CARE AND 
                         SUPPORTING PERMANENCY

SEC. 201. SUPPORTING NORMALCY FOR CHILDREN IN FOSTER CARE.

  (a) Reasonable and Prudent Parent Standard.--
          (1) Definitions relating to the standard.--Section 475 of the 
        Social Security Act (42 U.S.C. 675) is amended by adding at the 
        end the following:
          ``(9)(A) The term `reasonable and prudent parent standard' 
        means the standard characterized by careful and sensible 
        parental decisions that maintain the health, safety, and best 
        interests of a child while at the same time encouraging the 
        emotional and developmental growth of the child, that a 
        caregiver shall use when determining whether to allow a child 
        in foster care under the responsibility of the State to 
        participate in extracurricular, enrichment, cultural, and 
        social activities.
          ``(B) For purposes of subparagraph (A), the term `caregiver' 
        means a foster parent with whom a child in foster care has been 
        placed or a designated official for a child care institution in 
        which a child in foster care has been placed.
          ``(10) The term `age or developmentally-appropriate' means--
                  ``(A) activities or items that are generally accepted 
                as suitable for children of the same chronological age 
                or level of maturity or that are determined to be 
                developmentally-appropriate for a child, based on the 
                development of cognitive, emotional, physical, and 
                behavioral capacities that are typical for an age or 
                age group; and
                  ``(B) in the case of a specific child, activities or 
                items that are suitable for the child based on the 
                developmental stages attained by the child with respect 
                to the cognitive, emotional, physical, and behavioral 
                capacities of the child.''.
          (2) State plan requirement.--Section 471(a)(24) of such Act 
        (42 U.S.C. 671(a)(24)) is amended--
                  (A) by striking ``include'' and inserting 
                ``includes'';
                  (B) by striking ``and that such preparation'' and 
                inserting ``that the preparation''; and
                  (C) by inserting ``, and that the preparation shall 
                include knowledge and skills relating to the reasonable 
                and prudent parent standard for the participation of 
                the child in age or developmentally-appropriate 
                activities, including knowledge and skills relating to 
                the developmental stages of the cognitive, emotional, 
                physical, and behavioral capacities of a child, and 
                knowledge and skills relating to applying the standard 
                to decisions such as whether to allow the child to 
                engage in social, extracurricular, enrichment, 
                cultural, and social activities, including sports, 
                field trips, and overnight activities lasting 1 or more 
                days, and to decisions involving the signing of 
                permission slips and arranging of transportation for 
                the child to and from extracurricular, enrichment, and 
                social activities'' before the semicolon.
          (3) Technical assistance.--The Secretary of Health and Human 
        Services shall provide assistance to the States on best 
        practices for devising strategies to assist foster parents in 
        applying a reasonable and prudent parent standard in a manner 
        that protects child safety, while also allowing children to 
        experience normal and beneficial activities, including methods 
        for appropriately considering the concerns of the biological 
        parents of a child in decisions related to participation of the 
        child in activities (with the understanding that those concerns 
        should not necessarily determine the participation of the child 
        in any activity).
  (b) Normalcy for Children in Child Care Institutions.--Section 
471(a)(10) of such Act (42 U.S.C. 671(a)(10)) is amended to read as 
follows:
          ``(10) provides--
                  ``(A) for the establishment or designation of a State 
                authority or authorities that shall be responsible for 
                establishing and maintaining standards for foster 
                family homes and child care institutions which are 
                reasonably in accord with recommended standards of 
                national organizations concerned with standards for the 
                institutions or homes, including standards related to 
                admission policies, safety, sanitation, and protection 
                of civil rights, and which shall permit use of the 
                reasonable and prudent parenting standard;
                  ``(B) that the standards established pursuant to 
                subparagraph (A) shall be applied by the State to any 
                foster family home or child care institution receiving 
                funds under this part or part B and shall require, as a 
                condition of any contract entered into by the State 
                agency and a child care institution, the presence on-
                site of at least 1 official who, with respect to any 
                child placed at the child care institution, is 
                designated to be the caregiver who is authorized to 
                apply the reasonable and prudent parent standard to 
                decisions involving the participation of the child in 
                age or developmentally-appropriate activities, and who 
                is provided with training in how to use and apply the 
                reasonable and prudent parent standard in the same 
                manner as prospective foster parents are provided the 
                training pursuant to paragraph (24);
                  ``(C) that the standards established pursuant to 
                subparagraph (A) shall include policies related to the 
                liability of foster parents and private entities under 
                contract by the State involving the application of the 
                reasonable and prudent parent standard, to ensure 
                appropriate liability for caregivers when a child 
                participates in an approved activity and the caregiver 
                approving the activity acts in accordance with the 
                reasonable and prudent parent standard; and
                  ``(D) that a waiver of any standards established 
                pursuant to subparagraph (A) may be made only on a 
                case-by-case basis for nonsafety standards (as 
                determined by the State) in relative foster family 
                homes for specific children in care;''.
  (c) Effective Date.--
          (1) In general.--The amendments made by this section shall 
        take effect on the date that is 1 year after the date of the 
        enactment of this Act, without regard to whether regulations to 
        implement the amendments have been promulgated by that date.
          (2) Delay permitted if state legislation required.--If the 
        Secretary of Health and Human Services determines that State 
        legislation (other than legislation appropriating funds) is 
        required in order for a State plan developed pursuant to part E 
        of title IV of the Social Security Act to meet the additional 
        requirements imposed by the amendments made by this section, 
        the plan shall not be regarded as failing to meet any of the 
        additional requirements before the 1st day of the 1st calendar 
        quarter beginning after the 1st regular session of the State 
        legislature that begins after the date of the enactment of this 
        Act. If the State has a 2-year legislative session, each year 
        of the session is deemed to be a separate regular session of 
        the State legislature.

SEC. 202. IMPROVEMENTS TO ANOTHER PLANNED PERMANENT LIVING ARRANGEMENT 
                    AS A PERMANENCY OPTION.

  (a) Elimination of the Option for Children Under Age 16.--
          (1) In general.--Section 475(5)(C)(i) of the Social Security 
        Act (42 U.S.C. 675(5)(C)(i)) is amended by inserting ``only in 
        the case of a child who has attained 16 years of age'' before 
        ``(in cases where''.
          (2) Conforming amendment.--Section 422(b)(8)(A)(iii)(II) of 
        such Act (42 U.S.C. 622(b)(8)(A)(iii)(II)) is amended by 
        inserting ``, subject to the requirements of sections 475(5)(C) 
        and 475A(a)'' after ``arrangement''.
  (b) Additional Requirements.--
          (1) In general.--Part E of title IV of such Act (42 U.S.C. 
        670 et seq.) is amended by inserting after section 475 the 
        following:

``SEC. 475A. ADDITIONAL CASE PLAN AND CASE REVIEW SYSTEM REQUIREMENTS.

  ``(a) Requirements for Another Planned Permanent Living 
Arrangement.--In the case of any child for whom another planned 
permanent living arrangement is the permanency plan for the child, the 
following requirements shall apply for purposes of approving the case 
plan for the child and the case system review procedure for the child:
          ``(1) Documentation of intensive, ongoing, unsuccessful 
        efforts for family placement.--At each permanency hearing held 
        with respect to the child, the State agency documents the 
        intensive, ongoing, and, as of the date of the hearing, 
        unsuccessful efforts made by the State agency to return the 
        child home or secure a placement for the child with a fit and 
        willing relative (including adult siblings), a legal guardian, 
        or an adoptive parent, including through efforts that utilize 
        search technology (including social media) to find biological 
        family members for children in the child welfare system.
          ``(2) Redetermination of appropriateness of placement at each 
        permanency hearing.--The State agency shall implement 
        procedures to ensure that, at each permanency hearing held with 
        respect to the child, the court or administrative body 
        appointed or approved by the court conducting the hearing on 
        the permanency plan for the child does the following:
                  ``(A) Ask the child about the desired permanency 
                outcome for the child.
                  ``(B) Make a judicial determination explaining why, 
                as of the date of the hearing, another planned 
                permanent living arrangement is the best permanency 
                plan for the child and provide compelling reasons why 
                it continues to not be in the best interests of the 
                child to--
                          ``(i) return home;
                          ``(ii) be placed for adoption;
                          ``(iii) be placed with a legal guardian; or
                          ``(iv) be placed with a fit and willing 
                        relative.
          ``(3) Demonstration of support for engaging in age or 
        developmentally-appropriate activities and social events.--At 
        each permanency hearing held with respect to the child, the 
        State agency shall document the steps the State agency is 
        taking to ensure the child's foster family home or child care 
        institution is following the reasonable and prudent parent 
        standard.''.
          (2) Conforming amendments.--
                  (A) State plan requirements.--
                          (i) Part b.--Section 422(b)(8)(A)(ii) of such 
                        Act (42 U.S.C. 622(b)(8)(A)(ii)) is amended by 
                        inserting ``and in accordance with the 
                        requirements of section 475A'' after ``section 
                        475(5)''.
                          (ii) Part e.--Section 471(a)(16) of such Act 
                        (42 U.S.C. 671(a)(16)) is amended--
                                  (I) by inserting ``and in accordance 
                                with the requirements of section 475A'' 
                                after ``section 475(1)''; and
                                  (II) by striking ``section 
                                475(5)(B)'' and inserting ``sections 
                                475(5) and 475A''.
                  (B) Definitions.--Section 475 of such Act (42 U.S.C. 
                675) is amended--
                          (i) in paragraph (1), in the matter preceding 
                        subparagraph (A), by inserting ``meets the 
                        requirements of section 475A and'' after 
                        ``written document which''; and
                          (ii) in paragraph (5)(C)--
                                  (I) by inserting ``, as of the date 
                                of the hearing,'' after ``compelling 
                                reason for determining''; and
                                  (II) by inserting ``subject to 
                                section 475A(a),'' after ``another 
                                planned permanent living 
                                arrangement,''.
  (c) Effective Date.--
          (1) In general.--The amendments made by this section shall 
        take effect on the date that is 1 year after the date of the 
        enactment of this Act.
          (2) Delay permitted if state legislation required.--If the 
        Secretary of Health and Human Services determines that State 
        legislation (other than legislation appropriating funds) is 
        required in order for a State plan developed pursuant to part E 
        of title IV of the Social Security Act to meet the additional 
        requirements imposed by the amendments made by this section, 
        the plan shall not be regarded as failing to meet any of the 
        additional requirements before the 1st day of the 1st calendar 
        quarter beginning after the 1st regular session of the State 
        legislature that begins after the date of the enactment of this 
        Act. If the State has a 2-year legislative session, each year 
        of the session is deemed to be a separate regular session of 
        the State legislature.

SEC. 203. EMPOWERING FOSTER YOUTH AGE 14 AND OLDER IN THE DEVELOPMENT 
                    OF THEIR OWN CASE PLAN AND TRANSITION PLANNING FOR 
                    A SUCCESSFUL ADULTHOOD.

  (a) In General.--Section 475(1)(B) of the Social Security Act (42 
U.S.C. 675(1)(B)) is amended by adding at the end the following: ``With 
respect to a child who has attained 14 years of age, the plan developed 
for the child in accordance with this paragraph, and any revision or 
addition to the plan, shall be developed in consultation with the child 
and, at the option of the child, with up to 2 members of the case 
planning team who are chosen by the child and who are not a foster 
parent of, or caseworker for, the child. A State may reject an 
individual selected by a child to be a member of the case planning team 
at any time if the State has good cause to believe that the individual 
would not act in the best interests of the child. One individual 
selected by a child to be a member of the child's case planning team 
may be designated to be the child's advisor and, as necessary, 
advocate, with respect to the application of the reasonable and prudent 
parent standard to the child.''.
  (b) Conforming Amendments to Include Children 14 and Older in 
Transition Planning.--Section 475 of such Act (42 U.S.C. 675) is 
amended--
          (1) in paragraph (1)(D), by striking ``Where appropriate, for 
        a child age 16'' and inserting ``For a child who has attained 
        14 years of age''; and
          (2) in paragraph (5)--
                  (A) in subparagraph (C)--
                          (i) by striking ``and'' at the end of clause 
                        (ii); and
                          (ii) by adding at the end the following: 
                        ``and (iv) if a child has attained 14 years of 
                        age, the permanency plan developed for the 
                        child, and any revision or addition to the 
                        plan, shall be developed in consultation with 
                        the child and, at the option of the child, with 
                        not more than 2 members of the permanency 
                        planning team who are selected by the child and 
                        who are not a foster parent of, or caseworker 
                        for, the child, except that the State may 
                        reject an individual so selected by the child 
                        if the State has good cause to believe that the 
                        individual would not act in the best interests 
                        of the child, and 1 individual so selected by 
                        the child may be designated to be the child's 
                        advisor and, as necessary, advocate, with 
                        respect to the application of the reasonable 
                        and prudent standard to the child;''; and
                  (B) in subparagraph (I), by striking ``16'' and 
                inserting ``14''.
  (c) Transition Planning for a Successful Adulthood.--Paragraphs 
(1)(D), (5)(C)(i), and (5)(C)(iii) of section 475 of such Act (42 
U.S.C. 675) are each amended by striking ``independent living'' and 
inserting ``a successful adulthood''.
  (d) List of Rights.--Section 475A of such Act, as added by section 
202(b)(1) of this Act, is amended by adding at the end the following:
  ``(b) List of Rights.--The case plan for any child in foster care 
under the responsibility of the State who has attained 14 years of age 
shall include a document that describes the rights of the child with 
respect to education, health, visitation, and court participation, and 
to staying safe and avoiding exploitation, and a signed acknowledgment 
by the child that the child has been provided with a copy of the 
document and that the rights contained in the document have been 
explained to the child in an age-appropriate way.''.
  (e) Report.--Not later than 2 years after the date of the enactment 
of this Act, the Secretary of Health and Human Services shall submit a 
report to Congress regarding the implementation of the amendments made 
by this section. The report shall include--
          (1) an analysis of how States are administering the 
        requirements of paragraphs (1)(B) and (5)(C) of section 475 of 
        the Social Security Act, as amended by subsections (a) and (b) 
        of this section, that a child in foster care who has attained 
        14 years of age be permitted to select up to 2 members of the 
        case planning team or permanency planning team for the child 
        from individuals who are not a foster parent of, or caseworker 
        for, the child; and
          (2) a description of best practices of States with respect to 
        the administration of the requirements.
  (f) Effective Date.--
          (1) In general.--The amendments made by this section shall 
        take effect on the date that is 1 year after the date of the 
        enactment of this Act.
          (2) Delay permitted if state legislation required.--If the 
        Secretary of Health and Human Services determines that State 
        legislation (other than legislation appropriating funds) is 
        required in order for a State plan developed pursuant to part E 
        of title IV of the Social Security Act to meet the additional 
        requirements imposed by the amendments made by this section, 
        the plan shall not be regarded as failing to meet any of the 
        additional requirements before the 1st day of the 1st calendar 
        quarter beginning after the 1st regular session of the State 
        legislature that begins after the date of the enactment of this 
        Act. If the State has a 2-year legislative session, each year 
        of the session is deemed to be a separate regular session of 
        the State legislature.

    TITLE III--IMPROVING DATA COLLECTION AND REPORTING ON CHILD SEX 
                              TRAFFICKING

SEC. 301. INCLUDING SEX TRAFFICKING DATA IN THE ADOPTION AND FOSTER 
                    CARE ANALYSIS AND REPORTING SYSTEM.

  (a) In General.--Section 479(c)(3) of the Social Security Act (42 
U.S.C. 679(c)(3)) is amended--
          (1) in subparagraph (C)(iii), by striking ``and'' after the 
        comma; and
          (2) by adding at the end the following:
                  ``(E) the annual number of children in foster care 
                who are identified as victims of sex trafficking (as 
                defined in section 103(10) of the Trafficking Victims 
                Protection Act of 2000 (22 U.S.C. 7102(10))) or a 
                severe form of trafficking in persons described in 
                section 103(9)(A) of such Act--
                          ``(i) who were such victims before entering 
                        foster care; and
                          ``(ii) who were such victims while in foster 
                        care; and''.
  (b) Report to Congress.--Beginning in fiscal year 2016, the Secretary 
of Health and Human Services shall submit an annual report to Congress 
that contains the annual aggregate number of children in foster care 
who are identified as victims of sex trafficking (as defined in section 
103(10) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 
7102(10))) or a severe form of trafficking in persons described in 
section 103(9)(A) of such Act, together with such other information as 
the Secretary determines appropriate relating to the identification of, 
and provision of services for, that population of children.

SEC. 302. INFORMATION ON CHILDREN IN FOSTER CARE IN ANNUAL REPORTS 
                    USING AFCARS DATA; CONSULTATION.

  Section 479A of the Social Security Act (42 U.S.C. 679b) is amended--
          (1) by striking ``The Secretary'' and inserting the 
        following:
  ``(a) In General.--The Secretary'';
          (2) in paragraph (5), by striking ``and'' after the 
        semicolon;
          (3) in paragraph (6)(C), by striking the period at the end 
        and inserting a semicolon;
          (4) by adding at the end the following:
          ``(7) include in the report submitted pursuant to paragraph 
        (5) for fiscal year 2016 or any succeeding fiscal year, State-
        by-State data on children in foster care who have been placed 
        in a child care institution or other setting that is not a 
        foster family home, including--
                  ``(A) the number of children in the placements and 
                their ages, including separately, the number and ages 
                of children who have a permanency plan of another 
                planned permanent living arrangement;
                  ``(B) the duration of the placement in the settings 
                (including for children who have a permanency plan of 
                another planned permanent living arrangement);
                  ``(C) the types of child care institutions used 
                (including group homes, residential treatment, 
                shelters, or other congregate care settings);
                  ``(D) with respect to each child care institution or 
                other setting that is not a foster family home, the 
                number of children in foster care residing in each such 
                institution or non-foster family home;
                  ``(E) any clinically diagnosed special need of such 
                children; and
                  ``(F) the extent of any specialized education, 
                treatment, counseling, or other services provided in 
                the settings; and
          ``(8) include in the report submitted pursuant to paragraph 
        (5) for fiscal year 2016 or any succeeding fiscal year, State-
        by-State data on children in foster care who are pregnant or 
        parenting.''; and
          (5) by adding at the end the following:
  ``(b) Consultation on Other Issues.--The Secretary shall consult with 
States and organizations with an interest in child welfare, including 
organizations that provide adoption and foster care services, and shall 
take into account requests from Members of Congress, in selecting other 
issues to be analyzed and reported on under this section using data 
available to the Secretary, including data reported by States through 
the Adoption and Foster Care Analysis and Reporting System and to the 
National Youth in Transition Database.''.

                       I. SUMMARY AND BACKGROUND

                         A. PURPOSE AND SUMMARY

    The bill, H.R. 4058 as amended, the ``Preventing Sex 
Trafficking and Improving Opportunities for Youth in Foster 
Care Act,'' as ordered reported by the Committee on Ways and 
Means on April 29, 2014, requires States to take steps to 
prevent, identify, and address sex trafficking of youth in 
foster care. Specifically, the legislation requires States to 
determine whether youth in foster care and other youth being 
served by State child welfare agencies have been victims of sex 
trafficking and determine appropriate services for youth 
victims. States are also required to document instances of sex 
trafficking, report these cases to law enforcement and the 
National Center for Missing and Exploited Children (NCMEC), and 
report data to the U.S. Department of Health and Human Services 
(HHS) so this information can be used to better prevent sex 
trafficking in the future.
    This legislation requires States to provide foster parents 
with more authority to make day-to-day decisions regarding 
their foster child's participation in age-appropriate 
activities, allowing youth in foster care to have more everyday 
childhood experiences such as spending time with friends, 
playing sports, getting a driver's license, or working a summer 
job. States also are required to implement a plan to more 
quickly locate youth who run away from foster care, determine 
why these youth ran from care, and take steps to address the 
factors that led them to run from care to better prevent these 
youth from becoming victims of sex trafficking.
    This legislation ensures States do more to quickly move 
kids out of foster care and into permanent, loving families. 
For children under age 16, States can no longer designate long-
term foster care as a goal for a child (a status called 
``Another Planned Permanent Living Arrangement'' or APPLA, 
which indicates the State does not plan to return the child 
home or place the child in an adoptive home, with a relative, 
or with a legal guardian). For children age 16 and older who 
have APPLA as a goal, States are required to document ongoing 
efforts to place the child in a permanent home and explain why 
other options are not in the best interest of the child.
    This legislation also requires States to ensure youth in 
foster care are better prepared for a successful adulthood. 
Under this bill, youth in foster care who are age 14 or older 
are allowed to assist in the development of their own case 
plans, including by selecting individuals to be part of the 
team preparing their plans.

               B. BACKGROUND AND THE NEED FOR LEGISLATION

    On February 14, 2014, Representative David Reichert (R-WA), 
Chairman of the Committee on Ways and Means Subcommittee on 
Human Resources, and Representative Lloyd Doggett (D-TX), 
Ranking Member of the Subcommittee, introduced H.R. 4058, which 
requires States to better prevent and identify sex trafficking, 
help ensure youth in foster care do not become victims of this 
crime, and confirm youth in foster care have the tools they 
need to become successful adults.
    Through Committee hearings, discussions with child welfare 
administrators and other experts, and conversations with youth 
who have experienced foster care first hand, it has become 
clear that today's foster care system is not adequately 
identifying and addressing instances of sex trafficking of 
youth in foster care. A number of child welfare experts, foster 
parents, and former foster youth have also pointed out how some 
child welfare policies hinder children's chances to participate 
in normal childhood activities, further disconnecting these 
youth from the friends, family, and community supports they 
need to thrive.

Evidence suggests many children involved in sex trafficking have had 
        contact with the foster care system

    There are a number of different estimates of how many 
children become victims of sex trafficking. While little 
comprehensive information is available to indicate the exact 
size of the problem, a 2009 report by Shared Hope International 
offers some insight into the magnitude of the issue. Shared 
Hope International began working with 10 Department of Justice-
funded human trafficking task forces to assess the problem, 
focusing on identifying instances of domestic sex trafficking 
across the 10 jurisdictions. The total number of suspected 
victims of sex trafficking in these jurisdictions amounted to 
almost 6,000 child victims from across the country, which 
included areas in Texas, Nevada, Missouri, Louisiana, New York, 
Utah, and Florida.\1\
---------------------------------------------------------------------------
    \1\Shared Hope International, The International Report on Domestic 
Minor Sex Trafficking: Americas Prostituted Children. May 2009. Found 
online at: http://sharedhope.org/wp-content/uploads/2012/09/
SHI_National_Report_on_DMST_2009.pdf
---------------------------------------------------------------------------
    Additional information on the scope of the problem is 
available from the Human Trafficking Reporting System funded by 
the Department of Justice, which reveals that Federally-funded 
human trafficking task forces opened 2,515 investigations of 
human trafficking between January 1, 2008 and June 30, 2010. Of 
these cases, 82 percent involved sex trafficking, with 40 
percent involving prostitution or sexual exploitation of a 
child.\2\
---------------------------------------------------------------------------
    \2\Bureau of Justice Statistics, U.S. Department of Justice, 
Characteristics of Suspected Human Trafficking Incidents, 2008-2010. 
April 2011. Found online at: http://www.bjs.gov/content/pub/pdf/
cshti0810.pdf
---------------------------------------------------------------------------
    Recent reports also have highlighted the disturbing 
connection between sex trafficking and the nation's foster care 
system. In 2010, 59 percent of the 174 juveniles arrested on 
prostitution charges in Los Angeles County were in the foster 
care system.\3\ Additionally, a report conducted by the 
California Child Welfare Council summarizing data from a number 
of cities in the State found that between 50 and 80 percent of 
victims of sex trafficking are or were involved with the child 
welfare system.\4\ Further, of children reported missing to the 
National Center for Missing and Exploited Children (NCMEC) who 
are also likely sex trafficking victims, 60 percent were in 
foster care or group homes when they ran away.\5\ Others have 
reported that trafficking perpetrators often target youth in 
foster care or youth living in group homes.
---------------------------------------------------------------------------
    \3\Sewell, Abby, Most L.A. County Youths Held for Prostitution Come 
from Foster Care, Los Angeles Times. November 27, 2012. Found online 
at: http://articles.latimes.com/2012/nov/27/local/la-me-1128-sex-
trafficking-20121128
    \4\Walker, Kate, California Child Welfare Council, Ending the 
Commercial Sexual Exploitation of Children: A Call for Multi-System 
Collaboration is in California. 2013. Found online at: http://
www.youthlaw.org/fileadmin/ncyl/youthlaw/publications/Ending-CSEC-A-
Call-for-Multi-System_Collaboration-in-CA.pdf
    \5\National Center for Missing and Exploited Children. August 2013. 
Found online at: http://blog.missingkids.com/post/56795201973/the-
national-center-for-missing-exploited
---------------------------------------------------------------------------
    Even with the evidence showing the linkage between sex 
trafficking and the foster care system, the current child 
welfare system in most States has not been effective at 
identifying and helping those who are at risk of being 
trafficked. The establishment of processes identified in this 
legislation will aid in the effort to better combat sex 
trafficking and ensure youth involved with the foster care 
system do not become victims.

Some child welfare policies may increase the risk of harm to children 
        placed in foster care

    As reviewed by the Subcommittee on Human Resources in a May 
9, 2013 hearing, some foster care policies have made it 
difficult for foster youth to participate in everyday 
activities such as playing sports, spending time with friends, 
or getting a driver's license. While well intentioned, these 
policies can increase the youth's isolation and separation from 
family and friends, exposing them to far greater dangers--
including susceptibility to becoming a victim of sex 
trafficking.\6\
---------------------------------------------------------------------------
    \6\Committee on Ways and Means. Letting Kids Be Kids: Balancing 
Safety with Opportunity for Foster Youth. May, 9 2013. Found online at: 
http://waysandmeans.house.gov/calendar/eventsingle.aspx?EventID=332391
---------------------------------------------------------------------------
    While foster care can protect children from further abuse 
and neglect, children who stay in foster care for extended 
periods can experience troubling outcomes, especially those who 
leave foster care at age 18 without being placed in a permanent 
home. Research shows that children who spend substantial time 
in foster care are less likely to graduate from high school, 
attend college, be employed, or have enough income to support a 
family, when compared to their peers not in the foster care 
system. Additionally, youth who spend extended periods in 
foster care are also more likely to become teen parents, 
collect welfare, become homeless, be arrested, or use drugs.\7\ 
As long-term foster care can lead to such poor outcomes, it is 
important that the Federal government enact changes to current 
policies to ensure youth have improved opportunities to 
succeed.
---------------------------------------------------------------------------
    \7\Hansen, Mary E. The Value of Adoption. American University 
Department of Economics Working Paper Series. December 2006. Found 
online at: http://w.american.edu/cas/economics/repec/amu/workingpapers/
1506.pdf
---------------------------------------------------------------------------

                         C. LEGISLATIVE HISTORY

Background

    On December 20, 2013, the Subcommittee released a draft 
bill addressing child sex trafficking building on bipartisan 
legislative proposals developed by Representative Erik Paulsen 
(R-MN) and other Members of Congress and incorporating 
recommendations suggested by witnesses at three Ways and Means 
hearings. The public submitted over 150 pages of comments on 
the draft, and those comments informed a number of changes that 
were incorporated into H.R. 4058, which was introduced on 
February 14, 2014, and referred to the Committee on Ways and 
Means.

Committee Action

    The Committee on Ways and Means marked up the bill on April 
29, 2014, and ordered the bill, as amended, favorably reported. 
The amendments incorporated into H.R. 4058 as introduced were 
reflected in a Chairman's Amendment in the Nature of a 
Substitute, which included a series of technical edits 
suggested by the Congressional Research Service as well as the 
removal of Section 204 of the legislation as introduced.

Committee Hearings

    On May 9, 2013, the Subcommittee on Human Resources 
convened a hearing titled ``Letting Kids be Kids: Balancing 
Safety with Opportunity for Foster Youth.'' This hearing 
brought together witnesses who spoke about some of the 
difficulties faced by foster parents and youth in foster care 
that make it difficult for youth to participate in activities 
with their peers, including examples of how youth were unable 
to play on a school sports team, vacation with their foster 
family, attend a summer camp, or get a part-time job.
    On October 23, 2013, the Subcommittee on Human Resources 
held a hearing on preventing and addressing sex trafficking of 
youth in foster care. During this hearing, the Subcommittee 
heard testimony from a number of experts, including a survivor 
of sex trafficking, as well as from individuals working to 
assist survivors and protect youth in foster care. Together 
these witnesses reiterated how serious the issue of sex 
trafficking is and how the child welfare system can be improved 
to prevent children in foster care from becoming victims of 
this crime.
    On February 19, 2014, the Subcommittee on Human Resources 
conducted a field hearing in Auburn, Washington, focused on 
efforts to prevent and address sex trafficking in Washington 
State. The witnesses at this hearing discussed the current 
initiatives of law enforcement, local and State government, and 
victim advocacy groups. The witnesses identified local efforts 
that help combat sex trafficking and assist those who have been 
victimized, and witnesses also provided input on legislative 
proposals to better identify and assist victims of sex 
trafficking in the foster care system.

                      II. EXPLANATION OF THE BILL

       SECTIONS 1-3. SHORT TITLE, TABLE OF CONTENTS, AND FINDINGS

Present Law

    Not applicable.

Explanation of Provision

    The Act's short title is the ``Preventing Sex Trafficking 
and Improving Opportunities for Youth in Foster Care Act.''
    The legislation includes a table of contents as well as a 
series of Congressional findings noting the estimated scope of 
children at risk of sex trafficking and the particular 
vulnerability of children who age out of foster care. It finds 
that the current child welfare system does not respond to the 
needs of children who are victims of, or at risk of, sex 
trafficking and, further, that it may increase the 
vulnerability of youth in care to sex trafficking, homelessness 
and other negative outcomes. To combat sex trafficking and to 
improve outcomes for children in foster care, the bill seeks 
``systemic'' changes to the child welfare system that focus on: 
(1) reducing the number of children in long-term foster care; 
(2) increasing the engagement of children in foster care in 
their own case planning; (3) improving efforts to locate and 
respond to children who have run away from foster care and 
reducing the number of children who run from care; (4) enabling 
youth to participate in age-appropriate activities and to 
connect with caring adults; and (5) improving child welfare 
agency efforts--in collaboration with the courts, local law 
enforcement agencies, juvenile justice agencies, schools, and 
social service providers--to prevent, identify and intervene in 
cases of domestic child sex trafficking.

Reason for Change

    Recent reports have highlighted a disturbingly strong 
connection between the foster care system and victims of sex 
trafficking. In light of this, the Committee believes State 
child welfare agencies must do more to both identify instances 
of sex trafficking among foster youth and prevent it from 
happening in the first place. The Committee also understands 
that some foster care polices make it difficult for youth in 
foster care to participate in activities that help them connect 
with families, friends, and others in their communities, and 
believes States should take steps to empower youth to 
participate in age-appropriate activities which will reduce 
their vulnerability to sex trafficking and other negative 
outcomes.

  TITLE I: IDENTIFYING AND PROTECTING YOUTH AT RISK OF SEX TRAFFICKING

SECTION 101. IDENTIFYING AND SCREENING YOUTH AT RISK OF SEX TRAFFICKING

Present Law

    The Trafficking Victims Protection Act (TVPA) defines sex 
trafficking as the ``recruitment, harboring, transportation, 
provision, or obtaining of a person for the purposes of a 
commercial sex act'' and any severe form of trafficking in 
persons in which a commercial sex act is induced by force, 
fraud, or coercion, or in which the person induced to perform 
the act is under 18 years of age (Sec. 103(9)(A) and (10) of 
the TVPA [22 U.S.C. 7102 (9)(A) and (10)]).
    For purposes of Title IV-E (and Title IV-B) of the Social 
Security Act, the term ``child'' refers to an individual under 
the age of 18, or at State option, an individual up to age 19, 
20, or 21 who remains in foster care and who meets certain 
additional criteria (Sec. 475(8)). Youth who ``age out'' of 
foster care may receive services under the Chafee Foster Care 
Independence Program up to age 21 (or up to age 23 for certain 
youth receiving Education and Training Vouchers) (Sec. 477(a)).
    A State child welfare agency is required, under the Title 
IV-E plan requirements, to report to an appropriate agency or 
official known or suspected instances of physical or mental 
injury, sexual abuse or exploitation, or negligent treatment or 
maltreatment of a child receiving aid under any Federal child 
welfare program authorized in Title IV-E or Title IV-B (Sec. 
471(a)(9)).

Explanation of Provision

    The legislation requires the State child welfare agency, in 
consultation with organizations dealing with at-risk youth, to 
develop policies and procedures for identifying, screening, and 
determining appropriate State actions and services for children 
whom the State has reasonable cause to believe are victims of 
sex trafficking or at risk of being victims of sex trafficking. 
For purposes of this provision, the legislation defines sex 
trafficking as it is currently defined in the TVPA (Sec. 
103(9)(A) and (10) [22 U.S.C. 7102 (9)(A) and (10)]).
    The policies and procedures developed under the State's 
Title IV-E plan must address relevant training for caseworkers 
and apply to any child over whom the State child welfare agency 
has responsibility for placement, care or supervision, 
including children in foster care, children living in their own 
homes but for whom the child welfare agency has an open case 
file, and youth who are receiving services under the Chafee 
Foster Care Independence Program. Additionally, States are 
permitted to apply these policies and procedures to any 
individual up to the age of 26 (regardless of his or her 
current or former foster care status).
    Each State must demonstrate to the U.S. Department of 
Health and Human Services (HHS) that it has developed these 
policies and procedures no later than one year after the date 
of enactment of this bill, and demonstrate that it was 
implementing them--in consultation with the child protective 
services agency or unit for the State--no later than two years 
after the date of enactment.

Reason for Change

    State child welfare agencies currently work with youth 
victims of sexual abuse and provide services to victims. Recent 
news articles, police reports, reports from the National Center 
for Missing and Exploited Children (NCMEC), and other sources 
highlight how a large share of youth found to be victims of sex 
trafficking have had previous contact with the child welfare 
system. The Committee believes that State child welfare 
agencies can and should develop effective procedures for 
preventing the sex trafficking of youth in foster care as well 
as better serve youth victims of this crime.

  SECTION 102. DOCUMENTING AND REPORTING INSTANCES OF SEX TRAFFICKING

Present Law

    No specific related provision. To receive Title IV-E funds, 
a State must have a plan consistent with the Federal Title IV-E 
plan requirements that is approved by HHS (Sec. 471).
    The National Crime Information Center (NCIC) is a 
computerized index of information on crimes and criminals that 
is maintained by the Federal Bureau of Investigation (FBI) (28 
U.S.C. 534). The National Center for Missing and Exploited 
Children (NCMEC) is a non-profit organization that receives 
Federal funding to carry out activities authorized in Federal 
law, including supporting law enforcement agencies and families 
in missing children and child sexual exploitation cases (Title 
IV of the Juvenile Justice and Delinquency Prevention Act of 
1974 [42 U.S.C. 5771 et. seq]).

Explanation of Provision

    No later than two years after the date of enactment, the 
legislation requires the State child welfare agency (under its 
Title IV-E plan) to:
           Identify and document appropriately in 
        agency records each child identified as a victim of sex 
        trafficking for whom the State child welfare agency has 
        responsibility for placement, care or supervision, 
        including children in foster care, children living in 
        their own homes but for whom the child welfare agency 
        has an open case file, and youth who are receiving 
        services under the Chafee Foster Care Independence 
        Program; and
           ``Immediately'' report information on 
        children identified as victims of sex trafficking to 
        law enforcement authorities, and in no case more than 
        24 hours after it was received.
    For purposes of these Title IV-E requirements, the 
legislation defines sex trafficking as it is currently defined 
in Sec. 103(9)(A) and (10) of the TVPA [22 U.S.C. 7102 (9)(A) 
and (10)].
    No later than two years after enactment of this provision, 
the legislation requires the State child welfare agency (as 
part of its Title IV-E plan) to make available to the public 
via the agency's website a regularly updated description of the 
specific measures it takes to protect and serve child victims 
of sex trafficking, including efforts to coordinate with State 
law enforcement, schools, juvenile justice agencies, as well as 
social service agencies (such as runaway and homeless youth 
shelters and transitional and other supportive housing 
providers).
    No later than two years after the enactment of this 
provision, the legislation requires the State child welfare 
agency (under its Title IV-E plan) to provide information on 
missing or abducted children to law enforcement authorities for 
entry into the NCIC and to the NCMEC. The information is to be 
relayed ``immediately'' and in no case more than 24 hours after 
the information was received.
    The legislation requires HHS to issue regulations to 
implement these new reporting requirements and to provide 
uniform definitions for the reports State child welfare 
agencies are required to make to law enforcement agencies 
(concerning sex trafficking victims and missing or abducted 
children) and to the NCMEC (concerning missing or abducted 
children).

Reason for Change

    While some information is available regarding the number of 
victims of child sex trafficking, little comprehensive data 
exists to illustrate the magnitude of the problem. This bill 
would ensure State child welfare agencies document instances of 
sex trafficking so States and the Federal government have 
better information on matters such as how many instances of 
child sex trafficking are identified in the child welfare 
system and where these instances are occurring. Once a State 
identifies an incident of sex trafficking, it must immediately 
report this information to law enforcement so the case can be 
investigated. This bill requires States to report information 
on instances of child sex trafficking to law enforcement, as 
well as report missing or abducted children to the NCMEC as 
these children are potential victims of sex trafficking. 
Together, these changes will ensure more victims are identified 
and that better information is available on the problem of sex 
trafficking nationally.
    In many States, little information is available on efforts 
to combat sex trafficking across agencies. To ensure States 
work collaboratively with various groups such as schools, 
juvenile justice agencies, and transitional and supportive 
housing providers to address sex trafficking, this bill also 
requires States to describe the collaborative efforts they are 
taking to address the problem and ensure this information is 
available to the public.
    State child welfare agency officials should notify law 
enforcement as soon as a child is identified as a victim of sex 
trafficking. This bill will ensure States report this 
information to law enforcement quickly so the proper steps can 
be taken to both address the issue, as well as work to prevent 
any other children from becoming victims. This bill also 
requires States to provide information on children missing or 
abducted from foster care to the NCIC, ensuring that this data 
is immediately available to all law enforcement officials 
nationwide. This same information would be reported to the 
NCMEC, which provides a range of services to organizations 
working to locate and serve missing children as well as prevent 
and address child sex trafficking. Together, these provisions 
will ensure State child welfare agencies improve coordination 
with law enforcement and that additional experts are more 
quickly involved in locating children missing from foster care.

 SECTION 103. STATE PLAN REQUIREMENT TO LOCATE AND RESPOND TO CHILDREN 
                     WHO RUN AWAY FROM FOSTER CARE

Present Law

    No specific related provision. To receive Title IV-E funds, 
a State must have a plan consistent with the Federal Title IV-E 
plan requirements approved by HHS (Sec. 471).

Explanation of Provision

    As part of the Title IV-E plan, the legislation requires 
the State child welfare agency to develop and implement 
protocols related to children who run away from foster care. 
The protocols would need to address:
           Expeditiously locating any child missing 
        from foster care;
           Determining the primary factors that 
        contributed to the child's running away or otherwise 
        being absent from care, and responding to those factors 
        in current and subsequent placements (to the extent 
        appropriate and possible);
           Determining what happened to the child while 
        he or she was absent from care, including a 
        determination of whether the child may be a victim of 
        sex trafficking; and
           Reporting such related information as 
        required by HHS.

Reason for Change

    Children who run away from foster care are at high risk of 
becoming victims of sex trafficking and other crimes. This 
provision will improve our understanding of factors that may 
lead children to run away from foster care, as well as ensure 
each State implements a plan to reduce the number of children 
who run away from care. This provision will also require States 
to screen runaways to determine if they were victims of sex 
trafficking while absent, ensuring more children are quickly 
identified as victims so they can receive the appropriate 
services.

SECTION 104. INCREASING INFORMATION ON YOUTH IN FOSTER CARE TO PREVENT 
                            SEX TRAFFICKING

Present Law

    Under the Adoption and Foster Care Analysis and Reporting 
System (AFCARS), developed pursuant to Section 479, States 
provide regular data to HHS concerning each child in foster 
care. This includes the child's demographic characteristics and 
certain information related to his or her foster care 
experiences (such as the reason for entry to care, length of 
stay, placement setting, and other factors).

Explanation of Provision

    No later than one year after the enactment of this 
provision, the legislation requires HHS to submit a written 
report to Congress summarizing information on: (1) the 
characteristics of children who run away from foster care, 
including potential factors associated with children running 
from care, their experiences while absent from care, and trends 
in their numbers; (2) State efforts to provide specialized 
services, foster family homes, or child care institutions for 
child victims of sex trafficking; and (3) State efforts to 
ensure children in foster care form and maintain long-lasting 
connections to caring adults (even when a child must move to a 
new foster family home or be placed under the supervision of a 
new caseworker).
    The information on children who run away is to be based on 
data reported by States, via AFCARS, as well as data gathered 
by States under their protocols for responding to children who 
run away from foster care.

Reason for Change

    Although children who run away from foster care are at high 
risk of becoming victims of crimes such as sex trafficking, 
little information is now available regarding children who run 
away, why they run away, and where they spend time while away 
from care. This provision will improve our understanding of 
factors that may lead children to run away from foster care, 
providing data to inform future policy changes at the Federal, 
State, and local level that can reduce these incidents. In 
addition, requiring HHS to report information on State efforts 
to serve victims of trafficking will help create a national 
picture of what services are provided currently and what 
additional services may be needed.
    Youth formerly in foster care often describe the importance 
of having long-term relationships with foster parents, 
guardians, teachers, mentors, and others. Under the bill, HHS 
will collect and report information on States' efforts to 
promote long-lasting relationships between youth in foster care 
and adult role models. Requiring HHS to report this information 
to Congress will also ensure State practices are shared more 
widely, providing useful information to other States that may 
be interested in developing policies in this area.

    TITLE II: IMPROVING OPPORTUNITIES FOR YOUTH IN FOSTER CARE AND 
                         SUPPORTING PERMANENCY

      SECTION 201. SUPPORTING NORMALCY FOR CHILDREN IN FOSTER CARE

Present Law

    Current law defines terms that apply to the Federal foster 
care program under Title IV-E, as well as other child welfare 
programs in that part and in Title IV-B (Sec. 475).
    As part of its Title IV-E plan, each State child welfare 
agency must certify that before it places a child in foster 
care with prospective foster parents, the prospective foster 
parents are prepared with adequate skills and knowledge to meet 
the needs of the child and that this preparation will continue, 
as needed, once the child is placed with those foster parents 
(Sec. 471(a)(24)).
    Under its Title IV-E plan, a State child welfare agency 
must establish, or designate another State authority to 
establish, licensing standards that apply to each foster family 
home or child care institution that provides foster care (for 
any child under the responsibility of the State). These 
standards must be reasonably in accord with recommended 
standards of appropriate national organizations and must 
address admission policies, safety, sanitation, and protection 
of civil rights. The same standards must be applied to each 
foster family home, except that, on a case-by-case basis (and 
for a specific child in care), a State may waive a non-safety 
standard for a relative foster family home.

Explanation of Provision

    For purposes of the Federal foster care program in Title 
IV-E and other child welfare programs in that part and in Title 
IV-B, the legislation defines ``reasonable and prudent parent 
standard'' as ``the standard characterized by careful and 
sensible parental decisions that maintain the health, safety, 
and best interests of a child while at the same time 
encouraging the emotional and developmental growth of the 
child,'' and as the standard that a caregiver--the child's 
foster parent or a designated official at the child care 
institution where a child is placed--must use ``when 
determining whether to allow a child in foster care to 
participate in extracurricular, enrichment, cultural, and 
social activities.''
    The legislation goes on to define ``age or developmentally 
appropriate'' as ``activities or items that are generally 
accepted as suitable for children of the same chronological age 
or level of maturity or that are determined to be 
developmentally appropriate for the child, based on the 
development of cognitive, emotional, physical, and behavioral 
capacities that are typical for an age or age group.'' Further, 
with respect to a specific child, ``age and developmentally 
appropriate'' is defined to mean ``activities or items that are 
suitable for that child based on the developmental stages 
attained by the child with respect to the cognitive, emotional, 
physical and behavioral capacities of the child.''
    The legislation amends the requirement to prepare foster 
parents with adequate skills to meet the needs of the child 
they will care for by requiring the State to certify that this 
preparation will include knowledge and skills related to use of 
the ``reasonable and prudent parent standard'' for the child's 
participation in ``age and developmentally appropriate'' 
activities, including applying the standard to decisions 
concerning the child's participation in activities and in 
arranging transportation for the child to and from those 
activities.
    HHS must provide technical assistance to States on best 
practices to assist foster parents in applying the reasonable 
and prudent parent standard in a manner that protects child 
safety, allows children to experience normal and beneficial 
activities, and considers (but does not necessarily make 
determinative) the concerns of the child's biological parents.
    The legislation maintains current law licensing 
requirements, while adding a new requirement that the State's 
licensing standards for foster family homes, and for child care 
institutions providing foster care, must permit the use of the 
reasonable and prudent parent standard.
    The licensing standards must require that any contract 
entered into by the State child welfare agency with a child 
care institution (i.e., a congregate care provider of foster 
care) stipulate that the institution has on-site at least one 
designated official who, with respect to any child placed in 
the institution, is authorized to apply the ``reasonable and 
prudent parent standard'' to decisions about the child's access 
to, or participation in, ``age or developmentally appropriate'' 
activities. Further, the designated official must be provided 
with training on the use and application of the ``reasonable 
and prudent parent standard'' (in the same manner as training 
is provided to foster parents on the standard).
    The State's standards for foster family homes and child 
care institutions must include policies related to the 
``appropriate'' liability of foster parents and private 
entities under contract with the State involving the 
application of the ``reasonable and prudent parent standard.''
    The changes (including the definition of the ``reasonable 
and prudent parent standard'' and its application in training 
foster parents and in licensing standards) are generally 
effective one year after the date of enactment, without regard 
to whether regulations to implement the provisions have been 
promulgated. However, if HHS determines that a State must enact 
legislation (other than appropriations) in order to meet these 
additional Title IV-E plan requirements, then the State may 
have limited additional time to come into compliance with these 
requirements.

Reason for Change

    As reviewed in a May 2013 Subcommittee hearing, entering 
foster care is a life-changing experience for children. Not 
only have these children been abused or neglected, but they 
also have been separated from parents and face other 
significant changes in their lives. Often they begin attending 
a new school, where they have to start over making friends, 
fitting in, and participating in sports and activities. All of 
this makes it even harder for children in foster care to 
succeed.
    Adding to these difficulties, some foster care policies and 
practices have the unintended effect of making life even harder 
for foster youth. For example, some State foster care rules 
have made it difficult for foster youth to participate in 
sports, sleep over at a friend's house, obtain a driver's 
license, or get a part-time job. Often such practices are done 
in the name of protecting youth; but State testimony to the 
Subcommittee on Human Resources suggests that such practices 
have unintentionally isolated youth in foster care (especially 
teens) from their peers, increasing their exposure to sex 
trafficking and other dangers.
    The testimony of former foster youth on the lack of 
normalcy in their lives is compelling: ``Growing up in the 
foster care system, I felt like I was in captivity. Many times 
I was separated from the things that meant so much to me and 
the only reasoning that was given to me was, `It's the County 
rules' or `We have to get the County to approve.' This 
reference was towards the same County officials who skipped out 
on mandated monthly visits, placed me into foster homes that 
were unfit for any child to live in and overlooked my plea to 
play sports because it was more important for me to see a 
therapist. I remember the many different experiences that I had 
as a foster child where I would pray to God to take me off this 
earth because I wanted so badly not to be a foster child.''\8\
---------------------------------------------------------------------------
    \8\Committee on Ways and Means. Letting Kids Be Kids: Balancing 
Safety with Opportunity for Foster Youth. Testimony of Talitha James. 
May, 9 2013. Found online at: http://waysandmeans.house.gov/
uploadedfiles/talitha_james_testimony_hr050913.pdf
---------------------------------------------------------------------------
    To overcome such barriers and better promote the healthy 
development of young people in foster care, the legislation 
encourages all States to replicate recent efforts in some 
States to eliminate rules that have kept foster youth from 
being treated like other children. For example, California and 
Florida have examined State foster care policies and made 
reforms designed to allow foster youth to be treated more like 
other kids--including participating in age-appropriate 
activities like sports, sleepovers with friends, getting a 
part-time job, and getting a driver's license.\9\
---------------------------------------------------------------------------
    \9\Children's Law Center of Los Angeles, ``Living a Normal Life.'' 
Found online at: http://www.clcla.org/Images/pdfs/
pdfs_whatsnew_columns/Living_Normal_Life.pdf and Governor Rick Scott: 
``Let Kids Be Kids.'' Found online at: http://www.flgov.com/2013/04/11/
gov-scott-let-kids-be-kids/
---------------------------------------------------------------------------
    To address this issue, the legislation defines key terms 
that govern the actions of foster parents (whose actions should 
abide by a ``reasonable and prudent parent standard'') and 
foster youth (who should be permitted to participate in ``age 
or developmentally appropriate'' activities). In doing so, the 
Committee's intent is to allow all youth in foster care to 
achieve greater normalcy in their lives and thereby strengthen 
their bonds to friends, family, and their community and improve 
their chances of growing up to be successful adults.
    The Committee also regards the achievement of greater 
normalcy for youth to be an essential ingredient to preventing 
negative outcomes such as sex trafficking--both by occupying 
children's free time with constructive activities such as 
sports or a part-time job, and by giving them increased 
connections to responsible adults with their best interests at 
heart.
    Training is an essential component of any change in the 
foster care system, especially one designed to affect how 
foster parents care for youth placed in their trust. Thus, the 
legislation requires States to incorporate training on what is 
meant by the ``reasonable and prudent parent standard'' and 
``age and developmentally appropriate'' activities in future 
training for foster parents. Ultimately, the intent of the 
legislation is that this training translates into greater 
normalcy for foster youth, who would experience both better 
outcomes in general and, in extreme cases, reduced exposure to 
sex traffickers who prey on disconnected youth in foster care.
    The Committee expects HHS to provide technical assistance 
to all States on best practices developed by States that have 
already taken steps to improve the normalcy of youth in foster 
care. It is the Committee's intent that the changes related to 
the definitions of the ``reasonable and prudent parent 
standard'' and ``age or developmentally appropriate 
activities'' be applied in all settings, including in 
congregate care settings. The Committee notes that, as 
disclosed in its hearing series on sex trafficking of youth in 
foster care, youth in congregate care settings--including girls 
as young as 13--are targeted by sex traffickers.\10\ As 
described by one witness, a key reason for their vulnerability 
is precisely the lack of normalcy in their lives and absence of 
responsible adults to whom they can turn: ``Youth within the 
system are more vulnerable to becoming sexually exploited 
because youth accept and normalize the experience of being used 
as an object of financial gain by people who are supposed to 
care for us, we experience various people who control our 
lives, and we lack the opportunity to gain meaningful 
relationships and attachments.''\11\ It is to combat such 
effects that the legislation expects States to incorporate 
these changes in all foster care settings, including congregate 
care where young people have been shown to be especially 
vulnerable to sex trafficking.
---------------------------------------------------------------------------
    \10\As noted in an October 2008 article submitted by Rep. Paulsen 
for the record of the Subcommittee's October 23, 2013 hearing: ``The 
foster child who brought down a suburban prostitution ring this summer 
has pale skin, pink cheeks, laughs often while visiting her biological 
family and wears a gold butterfly charm on black string around her 
neck. Her life, however, has been anything but carefree. On July 8, the 
13-year-old girl and two other teens ran away from a suburban Chicago 
group home for foster children and made their way to a Lombard hotel to 
meet up with a 25-year-old pimp . . . This case is one of the recent 
handful that show how some group facilities designed to protect the 
state's most vulnerable and troubled foster children can become 
breeding grounds for the recruitment of child prostitutes, child 
welfare experts say.'' Chicago Tribune, ``Foster Runaways Risk 
Prostitution.'' October 29, 2008. Found online at: http://
articles.chicagotribune.com/2008-10-29/news/0810280420_1_prostitution-
child-welfare-foster
    \11\Committee on Ways and Means. Preventing Sex Trafficking of 
Youth in Foster Care. Testimony of Withelma ``T'' Ortiz Walker 
Pettigrew. October 23, 2013. Found online at: http://
waysandmeans.house.gov/uploadedfiles/
t_ortiz_walker_pettigrew_testimony_hr102313.pdf
---------------------------------------------------------------------------

     SECTION 202. IMPROVEMENTS TO ANOTHER PLANNED PERMANENT LIVING 
                   ARRANGEMENT AS A PERMANENCY OPTION

Present Law

    States must ensure court determination of a permanency plan 
for each child who has been in foster care for at least 12 
months. This permanency plan must be to reunite the child with 
his or her parent(s) or to place the child in an adoptive 
family, with a legal guardian, or with a fit and willing 
relative. However, if the State child welfare agency documents 
for the court a compelling reason that none of those options is 
in the child's best interest, then the court may establish the 
child's permanency plan as ``another planned permanent living 
arrangement'' (APPLA) (Sec. 475(5)(C)(i)).
    Further, a State must have a service program designed to 
help children in foster care achieve permanency through 
returning to their parents (when safe and appropriate), 
adoption, guardianship, placement with a fit and willing 
relative, or, if none of those options are appropriate, 
placement in some other planned permanent living arrangement 
(including residential education programs) (Sec. 
422(b)(8)(A)(iii)).
    The terms ``case plan'' and ``case review system'' are 
defined in Title IV-E (Section 475). Under the Stephanie Tubbs 
Jones Child Welfare Services program (Title IV-B, Subpart 1) a 
State child welfare agency must meet all the case review system 
requirements, including those related to case planning, spelled 
out in these definitions for each child in foster care (Sec. 
422(b)(8)(A)(ii)). Under the Title IV-E foster care program, 
the State child welfare agency is required to meet some of 
those case review requirements, including all those related to 
case planning, for each child in foster care who is eligible 
for Title IV-E assistance (Sec. 471(a)(16)).

Explanation of Provision

    The legislation stipulates that no child under age 16 may 
have a permanency plan of APPLA. The legislation also requires 
that, at any annual permanency hearing involving a youth for 
whom the permanency plan is APPLA, the State child welfare 
agency must:
           Document the ongoing, but, to date, 
        unsuccessful, efforts made to return the youth to his 
        or her parents or to secure a placement for the youth 
        with an adoptive parent, legal guardian, or a fit and 
        willing relative (including adult siblings); these 
        efforts must involve the use of ``search technology,'' 
        including social media, to locate biological family 
        members;
           Document the steps it is taking to ensure 
        the child's foster family home or child care 
        institution is applying the reasonable and prudent 
        parent standard; and
           Have procedures in place to ensure that the 
        court conducting the hearing: (1) ask the child about 
        his or her desired permanency outcome; (2) determine 
        why (as of the date of the hearing) APPLA continues to 
        be the best permanency plan for the child; and (3) 
        provide compelling reasons why it continues to not be 
        in the child's best interest to be returned home, or be 
        placed for adoption, with a legal guardian, or with a 
        fit and willing relative.
    The legislation makes conforming amendments to ensure the 
``case plan'' and ``case review system'' definitions 
incorporate the new APPLA and related requirements. The 
legislation makes conforming amendments to ensure State child 
welfare agencies, as a condition of receiving Federal Title IV-
E funding or funding under the Stephanie Tubbs Jones Child 
Welfare Services program, meet (for each child in foster care 
receiving Title IV-E assistance) the new case review 
requirements related to APPLA and additional case plan 
requirements (related to providing a list of rights for certain 
children in foster care added by Section 203).
    The changes made by this section of the legislation--
including restricting use of APPLA as a permanency plan by age 
and making additional requirements related to use of APPLA as a 
permanency option--would generally be effective one year after 
the date of enactment. However, if HHS determines that a State 
must enact legislation (other than appropriations) in order to 
meet these additional Title IV-E plan requirements, then the 
State may have limited additional time to come into compliance 
with the requirements.

Reason for Change

    Because Congress was concerned about children languishing 
in foster care, the Adoption and Safe Families Act of 1997 
eliminated the permanency goal of ``foster care on a permanent 
or long term basis'' for children in foster care. Instead, 
States were required to ensure children in foster care returned 
home, were adopted, or were placed with a relative. If none of 
these placements was possible, the State could indicate that 
the child was being placed in ``Another Planned Permanent 
Living Arrangement'' or ``APPLA,'' which is a catchall category 
meant for youth for whom another arrangement was justified. 
However, in recent years there has been increasing concern that 
APPLA has simply become the new name for long-term foster care, 
undermining the 1997 reforms as well as rejecting a growing 
body of research indicating that long-term foster care is 
detrimental to the health and wellbeing of children.
    As a result, the legislation makes several changes 
involving APPLA. For children under age 16, States can no 
longer designate the child as having a case goal of APPLA; this 
means that the case goal for all children in foster care under 
age 16 must be returning home or being placed with an adoptive 
parent, guardian, or relative. For children age 16 and older 
(who may continue to have APPLA as a goal), States must 
document their ongoing efforts to place such children in a 
permanent home and explain why other options are not in the 
best interests of the child. In each case, the goal is to 
support the use of foster care as only a temporary placement 
until a more permanent placement for the child can be arranged.

     SECTION 203. EMPOWERING FOSTER YOUTH AGE 14 AND OLDER IN THE 
   DEVELOPMENT OF THEIR OWN CASE PLAN AND TRANSITION PLANNING FOR A 
                          SUCCESSFUL ADULTHOOD

Present Law

    States are required to develop a ``case plan'' for each 
child in foster care (Sec. 422(b)(8) and Sec. 471(a)(16)). This 
is defined as a written document, that--among other things--
includes a plan to assure that the child receives safe and 
proper care, and that services are provided to the child along 
with his or her parents and foster parents in order to improve 
the conditions in the parents' home (so that the child may 
return home) or to permit the child to exit care to another 
permanent family. The plan must also describe the safety and 
appropriateness of the child's foster family home or other 
foster care living situation and discuss the appropriateness of 
services provided to the child in foster care. Further, and 
among other things, it must document efforts to ensure the 
child's educational stability and include the child's current 
education and health records (Sec. 475(1)).
    ``As appropriate,'' the case plan for a child in foster 
care at age 16 or older must include a written description of 
the programs and services that will help the youth prepare for 
``independent living'' (Sec. 475(1)(D)).
    A State must have in place procedures to ensure that each 
child in foster care has a permanency hearing within 12 months 
of entering foster care, and every 12 months thereafter while 
he or she remains in foster care. The permanency hearing must 
be held in a court (or by a court-appointed administrative 
body) and it must determine, or re-determine, the child's 
permanency plan (i.e., reunification, adoption, legal 
guardianship, placement with a fit or willing relative or 
APPLA) (Sec. 471(a)(16); Sec. 475(5)(C)).
    The State child welfare agency must ensure any child in 
foster care at age 16 or older receives a copy of any credit 
report pertaining to the child (each year while the child 
remains in care). The agency must provide the report free of 
charge and assist the youth in resolving any inaccuracies in 
the report (Sec. 475(5)(I)).
    The permanency hearing for any child in foster care at age 
16 or older must determine the services necessary to help the 
child transition from foster care to independent living (Sec. 
475(5)(C)(i)).
    At any permanency hearing for a child in foster care, or 
any hearing involving the transition of a child from foster 
care to ``independent living,'' the State must have procedures 
to ensure that the court (or court-appointed administrative 
body) consults with the child in an age-appropriate manner 
(Sec. 475(5)(C)(iii)).
    The State child welfare agency must meet to develop a case 
plan for each child in foster care (Sec. 422(b)(8) and Sec. 
471(a)(16)).

Explanation of Provision

    For any child in foster care at age 14 or older, the 
legislation requires consultation with the child in the 
development of, or any revision to, his or her case plan. At 
the option of the youth, this consultation may include up to 
two members of the case planning team who are chosen by the 
youth and who are not the youth's foster parent or caseworker. 
A State is permitted to reject an individual selected by the 
child to be a part of the case planning team, if the State has 
good cause to believe that the individual would not act in the 
best interests of the child. The legislation also adds that one 
individual selected by the child to be a member of the case 
planning team may be designated as the youth's advisor, and, as 
necessary, may advocate for the child regarding application of 
the reasonable and prudent parent standard.
    The legislation requires that the case plan for each child 
in care at age 14 or older must include a written description 
of the programs and services to help him or her prepare for 
``successful adulthood.'' It also amends Title IV-E generally 
to refer to the transition of a child from foster care to 
``successful adulthood'' instead of ``independent living.''
    For any child in foster care at age 14 or older, this case 
plan must include a document describing the child's rights with 
respect to education, health, visitation, court participation, 
and to staying safe and avoiding exploitation. The case plan 
would further need to include a signed acknowledgement by the 
child that he or she had been given a copy of the document 
listing these rights and that they were explained to him or her 
in an age-appropriate manner.
    The legislation modifies the current requirement that the 
State child welfare agency provide a credit report, along with 
assistance in resolving any inaccuracies in the report, to any 
child in foster care at age 16 or older to make it applicable 
to children age 14 or older.
    The legislation requires HHS to submit a report to 
Congress, within two years of the enactment of this Act, that 
includes an analysis of how States are administering the 
requirements to provide a list of rights to children in foster 
care at age 14 or older and to permit them to select up to two 
members of their case planning and permanency planning teams, 
along with a description of best practices of States with 
respect to the administration of these requirements.
    The requirements added by this section of the legislation--
related to consulting with children in care age 14 or older 
with regard to case planning and permanency planning, working 
to ensure a successful transition to adulthood for such 
children, and providing them with a list of rights--are 
generally effective one year after the date of enactment. 
However, if HHS determines that a State must enact legislation 
(other than appropriations) in order to meet these additional 
Title IV-E plan requirements, then the State may have limited 
additional time to come into compliance with the requirements.

Reason for Change

    The legislation is designed to increase the control of 
youth in foster care over their own lives.
    One witness before the Subcommittee ably described the lack 
of consultation with youth in her own case planning: ``Too 
often young people in foster care have been entirely 
disconnected from their previous lives, and are never even 
asked, `What interests you?' or `What were you involved in 
before foster care?' or `What would you like to do?' We must 
give young people a voice and a say in their own lives if we 
want them to flourish and explore their interests. Engaging 
young people in their case planning--where decisions about 
their life are made--is no different than a family sitting 
around the kitchen table talking with their teenager about the 
upcoming school year and planning what activities they want to 
be involved in, what kind of part-time job they might get over 
the summer, and other key decisions in the teenager's life. 
States such as Iowa have implemented a youth decision-making 
model that emphasizes relationships and places the youth at the 
center of their planning, asking the young person about their 
dreams and goals . . . Federally, policies, incentives, and 
accountability measures could be further strengthened to ensure 
that youth-led case planning is utilized from the early 
teens.''\12\
---------------------------------------------------------------------------
    \12\Committee on Ways and Means. Efforts to Prevent and Address 
Child Sex Trafficking in Washington State. Testimony of Mandy Urwiler. 
February 19, 2014. Found online at: http://waysandmeans.house.gov/
uploadedfiles/mandy_urwiler_testimony_hr021914.pdf
---------------------------------------------------------------------------
    The goal of the Committee's legislation is to ensure that 
young people--as well as adults they trust--are consulted in 
their case planning. The intent is to both enhance the young 
person's control over his or her case planning as a foster 
youth, as well as over his or her life in general. It is hard 
to underestimate the importance of that, and the consequences 
when a sense of such control is lacking. As a former foster 
youth who had been trafficked testified: ``It is also important 
to point out here the ways in which the foster care system, 
inadvertently, objectifies the presence of youth for monetary 
purposes, and it also normalizes the idea to youth that other 
people are supposed to control their lives and circumstances. 
The foster care system, in its entirety, serves in the role of 
the parent so it is never clear to the youth who exactly is in 
control, or supposed to be in control . . . Due to the multiple 
roles and persons in the foster care system, children and youth 
become accustomed to others (most of whom are strangers to 
them) dictating what will happen in their lives at home, in 
school and socially . . . This is conducive to the parallel 
process of traffickers/pimps/exploiters who seek to keep 
control of a youth's life.''\13\
---------------------------------------------------------------------------
    \13\Committee on Ways and Means. Preventing Sex Trafficking of 
Youth in Foster Care. Testimony of Withelma ``T'' Ortiz Walker 
Pettigrew, October 23, 2013. Found online at: http://
waysandmeans.house.gov/uploadedfiles/
t_ortiz_walker_pettigrew_testimony_hr102313.pdf
---------------------------------------------------------------------------
    The Committee believes it is important both for youth to be 
consulted in the development of their case plans, and that the 
programs and services that may benefit them are spelled out 
clearly.
    As with the development of a case plan for the period while 
a child is in foster care, permanency planning is a critical 
concern, and one in which the Committee believes youth should 
be more involved. Thus, the Committee legislation requires 
State agencies to consult with older youth in the development 
of, and any revisions to, their permanency plan. Older youth 
should also know their rights while in foster care (and be able 
to understand those rights) so that they can make informed 
decisions regarding their futures.

    TITLE III: IMPROVING DATA COLLECTION AND REPORTING ON CHILD SEX 
                              TRAFFICKING

SECTION 301. INCLUDING SEX TRAFFICKING DATA IN THE ADOPTION AND FOSTER 
                   CARE ANALYSIS AND REPORTING SYSTEM

Present Law

    HHS was required to establish, by regulation, a data 
collection system to provide for comprehensive national 
information with respect to children in foster care and those 
who are adopted, including their demographic status, 
characteristics of their foster care stay, and assistance 
received, among other things (Sec. 479(c)).
    Pursuant to these requirements, HHS developed the Adoption 
and Foster Care Analysis and Reporting System (AFCARS), which, 
effective with FY1995, required States to submit individual 
case-level data on children in foster care and children adopted 
with child welfare agency involvement. Data must be reported 
for each child using a set of uniform data elements that are 
provided in regulations. The individual case level data are 
aggregated by HHS to determine, among other things, demographic 
characteristics of these children, their status in foster care 
(e.g., length of stay in care, type of placement setting), and 
the type of assistance they receive (45 C.F.R. 1355.40).

Explanation of Provision

    The legislation requires HHS to revise the AFCARS 
regulation to require States to report the annual number of 
children in foster care who are identified as victims of sex 
trafficking (as defined in the TVPA) and who were victimized 
(1) before entering foster care, or (2) while in foster care.
    The legislation also requires HHS, beginning in FY2016, to 
submit an annual report to Congress that contains the aggregate 
number of children in foster care who are identified as victims 
of sex trafficking (as defined in the TVPA), along with other 
information related to the identification of, and provision of 
services to, children who are identified as victims of sex 
trafficking before entering foster care or while in foster 
care.

Reason for Change

    One of the most difficult issues in addressing sex 
trafficking of youth in foster care is determining the 
magnitude of the problem, where it is occurring, and which 
children are victims of this crime. The AFCARS system has been 
key to increasing our understanding of children in foster care, 
and data provided through this system has been used to inform 
child welfare policy and practice changes at the Federal, 
State, and local levels. By collecting data on victims of child 
sex trafficking through the AFCARS system, the Committee will 
be able to better understand the dynamics of this issue and 
develop policies in the future to better protect children in 
foster care.

 SECTION 302. INFORMATION ON CHILDREN IN FOSTER CARE IN ANNUAL REPORTS 
                    USING AFCARS DATA; CONSULTATION

Present Law

    HHS must annually submit to Congress a report on the 
performance of each State with regard to achieving specific 
child welfare outcomes (e.g. ensuring placement stability for 
children in foster care, finding children adoptive homes as 
appropriate). Additionally, HHS must examine in this report the 
reasons for variation in State performance and, when possible, 
suggest how States could improve their performance. HHS must 
also include in this annual report, State-by-State data on the 
number of children in foster care who are visited by their 
caseworkers on a monthly basis (Sec. 479A). This report is 
known as Child Welfare Outcomes report.
    HHS was required to develop the child welfare outcome 
measures, which are now used for reporting data via the Child 
Welfare Outcomes report, in consultation with State governors, 
State legislatures, State and local public officials 
administering child welfare programs, and child welfare 
advocates (Section 479A). This consultation occurred in 1998.
    States are required to regularly report certain data on 
children in foster care to HHS via the Adoption and Foster Care 
Analysis and Reporting System (AFCARS). Separately, via the 
National Youth in Transition Database (NYTD) they must report 
information on independent living services provided to youth in 
foster care or those who aged out of foster care, as well as 
certain outcomes for youth who age out of foster care (based on 
data systems developed by HHS in response to Sec. 479(c) and 
Section 477(f)).

Explanation of Provision

    The legislation requires HHS to include in its annual Child 
Welfare Outcomes report (beginning with data for FY2016) State-
by-State data on certain children in foster care who are placed 
in a child care institution or any other setting that is not a 
foster family home. This information about children in non-
foster family home settings must include:
           The number of those children and their ages 
        (with separate accounting for the number and ages of 
        children with a permanency plan of another planned 
        permanent living arrangement);
           The length of placement in that setting 
        (with separate accounting for children with a 
        permanency plan of another planned permanent living 
        arrangement);
           The type of child care institutions where 
        children were placed (including, but not limited to, 
        group homes, residential treatment, shelters, or other 
        congregate care settings);
           The number of children in foster care 
        residing in each such institution or non-foster family 
        home;
           The number of clinically diagnosed special 
        needs (if any) of these children; and
           The extent of any specialized education, 
        treatment, counseling, or other services provided in 
        the settings.
    The legislation also requires HHS to include in this annual 
report (beginning with data for FY2016) State-by-State data on 
children in foster care who are pregnant or parenting.
    In selecting other issues to be analyzed and included in 
this report, HHS must: (1) consult with States and with 
organizations interested in child welfare and take into account 
requests from Members of Congress; and (2) use data available 
to HHS, including data reported by States via AFCARS and NYTD.

Reason for Change

    Evidence suggests that placing children in group homes may 
be detrimental to their wellbeing in some cases.\14\ As the 
Committee heard in a number of hearings, foster care group 
homes may also be targeted by individuals looking for 
vulnerable youth to exploit through sex trafficking. In 
addition, group home settings deny children in foster care the 
opportunity to experience a more normal childhood living in a 
traditional family setting. This legislation requires HHS to 
report information to Congress to better understand the type of 
group homes used by States, the number of children in such 
homes, and the length of time children spend in these homes. 
This information will help inform future policy regarding the 
appropriate role of such homes, and it will help the Committee 
better understand what parameters might be appropriate for 
limiting the use of group care other than in exceptional 
circumstances.
---------------------------------------------------------------------------
    \14\Harden, Brenda Jones. Safety and Stability for Foster Children: 
A Developmental Perspective. Children, Families, and Foster Care. 
Volume 14 Number 1, Winter 2004. Page 38. Found online at: http://
futureofchildren.org/publications/journals/article/index.xml?journalid= 
40&articleid=133§ionid=874 and Ryan, Joseph P. et al. Juvenile 
delinquency in child welfare: Investigating group home effects. 
Children and Youth Services Review. Volume 30, Issue 9. September 2008. 
Found online at: https://www.cwla.org/programs/juvenilejustice/
grouphomeeffects.pdf
---------------------------------------------------------------------------

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statements are made 
concerning the votes of the Committee on Ways and Means in its 
consideration of the bill, H.R. 4058.
    The bill, H.R. 4058, the ``Preventing Sex Trafficking and 
Improving Opportunities for Youth in Foster Care Act,'' was 
ordered favorably reported, as amended, to the House of 
Representatives by a roll call vote of 33 yeas to 0 nays (with 
a quorum being present). The vote was as follows:

                         VOTES OF THE COMMITTEE

    In compliance with the Rules of the House of 
Representatives, the following statement is made concerning the 
vote of the Committee on Ways and Means during the markup 
consideration of H.R. 4058 ``Preventing Sex Trafficking and 
Improving Opportunities for Youth in Foster Care Act.''
    The bill, H.R. 4058, was ordered favorably reported as 
amended by a roll call vote of 33 yeas to 0 nays (with a quorum 
being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Camp.......................        X   ........  .........  Mr. Levin........  ........        X   .........
Mr. Johnson....................        X   ........  .........  Mr. Rangel.......  ........        X   .........
Mr. Brady......................        X   ........  .........  Mr. McDermott....  ........        X   .........
Mr. Ryan.......................        X   ........  .........  Mr. Lewis........  ........        X   .........
Mr. Nunes......................        X   ........  .........  Mr. Neal.........  ........        X   .........
Mr. Tiberi.....................        X   ........  .........  Mr. Becerra......  ........        X   .........
Mr. Reichert...................        X   ........  .........  Mr. Doggett......  ........        X   .........
Mr. Boustany...................        X   ........  .........  Mr. Thompson.....  ........        X   .........
Mr. Roskam.....................        X   ........  .........  Mr. Larson.......  ........        X   .........
Mr. Gerlach....................  ........  ........  .........  Mr. Blumenauer...  ........        X   .........
Mr. Price......................        X   ........  .........  Mr. Kind.........  ........  ........  .........
Mr. Buchanan...................        X   ........  .........  Mr. Pascrell.....  ........  ........  .........
Mr. Smith......................        X   ........  .........  Mr. Crowley......  ........        X   .........
Mr. Schock.....................        X   ........  .........  Ms. Schwartz.....  ........  ........  .........
Ms. Jenkins....................        X   ........  .........  Mr. Davis........  ........        X   .........
Mr. Paulsen....................        X   ........  .........  Ms. Sanchez......  ........        X   .........
Mr. Marchant...................        X   ........  .........
Ms. Black......................        X   ........  .........
Mr. Reed.......................        X   ........  .........
Mr. Young......................        X   ........  .........
Mr. Kelly......................        X   ........  .........
Mr. Griffin....................  ........  ........  .........
Mr. Renacci....................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

                          VOTES ON AMENDMENTS

    Representative Lloyd Doggett (D-TX) offered an amendment 
that would restore a provision from the bill as introduced that 
would ensure children who are discharged from foster care are 
provided certain documents, including a birth certificate. The 
amendment was later withdrawn, and no vote was taken.

                     IV. BUDGET EFFECTS OF THE BILL

               A. COMMITTEE ESTIMATE OF BUDGETARY EFFECTS

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the revenue provisions 
of the bill, H.R. 4058 as reported: The Committee agrees with 
the estimates prepared by the Congressional Budget Office 
(CBO), which are included below.

 STATEMENT REGARDING NEW BUDGET AUTHORITY AND TAX EXPENDITURES BUDGET 
                               AUTHORITY

    The bill as reported is in compliance with clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives. 
Further, the bill involves no new or increased tax 
expenditures.

      B. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.
                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 2, 2014.
Hon. Dave Camp,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4058, the 
Preventing Sex Trafficking and Improving Opportunities for 
Youth in Foster Care.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is David 
Rafferty.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 4058--Preventing Sex Trafficking and Improving Opportunities for 
        Youth in Foster Care Act

    Summary: H.R. 4058 would make several changes to the Title 
IV-E foster care program within the Department of Health and 
Human Services (HHS), including imposing new placement and 
reporting rules.
    CBO estimates that enacting the bill would increase direct 
spending by $3 million over the 2014-2024 period; therefore, 
pay-as-you-go procedures apply to the bill. Enacting H.R. 4058 
would not affect revenues. Implementing the bill would not 
affect spending subject to appropriation.
    H.R. 4058 would impose intergovernmental mandates, as 
defined in the Unfunded Mandates Reform Act (UMRA), on state 
governments by increasing the stringency of conditions in their 
implementation of the foster care program. CBO estimates, 
however, that the cost of the mandates would not exceed the 
threshold established in UMRA for intergovernmental mandates 
($76 million in 2014, adjusted annually for inflation).
    The bill contains no private-sector mandates as defined in 
UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4058 is shown in the following table. 
The costs of this legislation fall within budget function 600 
(income security).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2014    2015    2016    2017    2018    2019    2020    2021    2022    2023    2024   2014-2019  2014-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING

Estimated Budget Authority................       0       1       1       1       0       0       0       0       0       0       0         3          3
Estimated Outlays.........................       0       1       1       1       0       0       0       0       0       0       0         3          3
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted in 2014.

Data collection and reporting requirements

    Sections 102 and 301 would require states to collect and 
include in their child-welfare information systems certain data 
about trafficking victims. Based on information from state 
child-welfare and information-technology agencies and from HHS 
about likely up-front programming and implementation costs and 
federal reimbursement rates, CBO estimates that enacting those 
two provisions would increase direct spending by $3 million 
over the 2015-2017 period.

Planned permanent living arrangements for youth in foster care

    Several provisions in section 202 would make changes to 
Title IV-E of the Social Security Act to encourage or require 
states to seek reunification with parents, adoption, or 
placement with a legal guardian as the planned permanent living 
arrangement for youth in foster care age 14 or older. 
Consequently, some youth could be placed in a living 
arrangement with a higher cost to the federal government (such 
as remaining in federally reimbursed foster care instead of 
being emancipated from foster care), while others could be 
placed in a lower-cost setting (such as a kinship guardianship 
instead of foster care). Based on information from several 
states and HHS, CBO estimates that the effects of those 
provisions in section 202 would roughly offset each other and 
thus would not have a significant net effect on direct 
spending.
    Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

           CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4058 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON WAYS AND MEANS ON APRIL 29, 2014
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2014    2015    2016    2017    2018    2019    2020    2021    2022    2023    2024   2014-2019  2014-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT

Statutory Pay-As-You-Go Impact............       0       1       1       1       0       0       0       0       0       0       0         3          3
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and Private-Sector Impact: For large 
entitlement grant programs like foster care, UMRA defines an 
increase in the stringency of conditions as an 
intergovernmental mandate if the affected governments lack 
authority to offset those costs while continuing to provide 
required services. The bill would require states to ensure that 
foster care providers comply with new standards that establish 
reasonable and prudent parenting practices, and it would 
require states to collect and report additional information to 
federal authorities.
    Since these requirements would be additional conditions for 
receiving federal assistance from a large entitlement program 
and since states have limited flexibility to amend their 
responsibilities under the foster care program to offset the 
additional costs, the requirements would be intergovernmental 
mandates. Information gathered by CBO indicates either that 
states already comply with similar requirements or that the 
costs of additional requirements would be small. Consequently, 
CBO estimates the costs of the mandates would not exceed the 
intergovernmental threshold established in UMRA ($76 million in 
2014, adjusted annually for inflation).
    H.R. 4058 contains no private-sector mandates as defined in 
UMRA.
    Previous CBO Estimate: On January 27, 2013, CBO transmitted 
a cost estimate for S. 1870, the Supporting At-Risk Children 
Act, as reported by the Senate Committee on Finance on December 
19, 2013. That bill included a second provision, not contained 
in H.R. 4058, regarding data collection and reporting 
requirements. CBO estimated the cost of the data collection and 
reporting requirements in S. 1870 would be $5 million over the 
2014-2024 period. S. 1870 also included several other 
provisions that are not included in H.R. 4058 that would affect 
direct spending.
    Estimate Prepared by: Federal costs: David Rafferty; Impact 
on state, local, and tribal governments: J'nell L. Blanco; 
Impact on the private sector: Chung Kim.
    Estimate Approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis.

   V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE OF 
                            REPRESENTATIVES

          A. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee concluded that it was appropriate and timely to 
enact the sections included in the bill, as reported.
    As noted above, recent reports indicate that victims of 
child sex trafficking often have connections to the foster care 
system. As such, the Committee believes State child welfare 
agencies can do more to identify instances of sex trafficking 
and that they can also take steps to prevent it from happening. 
Two hearings held by the Ways and Means Human Resources 
Subcommittee have provided the Committee with information on 
how sex trafficking might be prevented and addressed in the 
child welfare system, and the Committee believes this 
legislation can both help States better track incidents of sex 
trafficking as well as develop plans to keep additional 
children from becoming victims.
    In addition, as members of the Human Resources Subcommittee 
learned in a hearing on May 9, 2013, some foster care policies 
make it difficult for youth in foster care to participate in 
activities that help them connect with their families, friends, 
and others in their communities. Both California and Florida 
have taken steps to empower youth in foster care so they can 
participate in age-appropriate activities and experience a more 
normal childhood. The Committee believes requiring States to 
develop a policy entrusting foster parents with more day-to-day 
decision-making authority will help youth in foster care better 
prepare for adulthood and reduce their vulnerability to sex 
trafficking and other negative outcomes.

        B. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains no measure that authorizes new funding compared 
with current law. However, according to the Congressional 
Budget Office, H.R. 4058 increases foster care baseline 
spending by $3 million over 10 years. This increase in spending 
is estimated to occur as States implement new information 
technology and other procedures for collecting and reporting 
data on victims of sex trafficking. The purpose of this 
spending is to gain a better understanding of the number and 
nature of youth victimized by sex trafficking, specifically by 
implementing sections 102 and 301 of the bill, which require 
States to collect and report certain information about victims 
of sex trafficking.

                   C. DUPLICATION OF FEDERAL PROGRAMS

    No provision of the legislation establishes or reauthorizes 
a program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                 D. DISCLOSURE OF DIRECTED RULE MAKINGS

    H.R. 4058 directs to be completed one rule within the 
meaning of 5 U.S.C. 551. Specifically, the legislation directs 
HHS to promulgate regulations to implement the amendments made 
by section 102 of the bill requiring States to take certain 
actions regarding youth who are victims of sex trafficking.

              E. INFORMATION RELATING TO UNFUNDED MANDATES

    This information is provided in accordance with section 423 
of the Unfunded Mandates Act of 1995 (Pub. L. No. 104-4).
    The bill does not impose a Federal mandate on the private 
sector. The bill would impose intergovernmental mandates on 
State governments by increasing the stringency of conditions in 
their implementation of the foster care program. CBO estimates, 
however, that the cost of the mandates would not exceed the 
threshold established in UMRA for intergovernmental mandates 
($76 million in 2014, adjusted annually for inflation).

                F. APPLICABILITY OF HOUSE RULE XXI 5(B)

    Clause 5(b) of rule XXI of the Rules of the House of 
Representatives provides, in part, that ``A bill or joint 
resolution, amendment, or conference report carrying a Federal 
income tax rate increase may not be considered as passed or 
agreed to unless so determined by a vote of not less than 
three-fifths of the Members voting, a quorum being present.'' 
The Committee has carefully reviewed the sections of the bill, 
and states that the bill does not involve any Federal income 
tax rate increases within the meaning of the rule.

  G. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF 
                                BENEFITS

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

SOCIAL SECURITY ACT

           *       *       *       *       *       *       *

TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH 
CHILDREN AND FOR CHILD-WELFARE SERVICES

           *       *       *       *       *       *       *

                   PART B--CHILD AND FAMILY SERVICES

Subpart 1--Stephanie Tubbs Jones Child Welfare Services Program

           *       *       *       *       *       *       *

                 STATE PLANS FOR CHILD WELFARE SERVICES

  Sec. 422. (a) * * *
  (b) Each plan for child welfare services under this subpart 
shall--
          (1) * * *

           *       *       *       *       *       *       *

          (8) provide assurances that the State--
                  (A) is operating, to the satisfaction of the 
                Secretary--
                          (i) * * *
                          (ii) a case review system (as defined 
                        in section 475(5) and in accordance 
                        with the requirements of section 475A) 
                        for each child receiving foster care 
                        under the supervision of the State;
                          (iii) a service program designed to 
                        help children--
                                  (I) * * *
                                  (II) be placed for adoption, 
                                with a legal guardian, or if 
                                adoption or legal guardianship 
                                is determined not to be 
                                appropriate for a child, in 
                                some other planned, permanent 
                                living arrangement, subject to 
                                the requirements of sections 
                                475(5)(C) and 475A(a), which 
                                may include a residential 
                                educational program; and

           *       *       *       *       *       *       *

Part E--Federal Payments for Foster Care and Adoption Assistance

           *       *       *       *       *       *       *

           STATE PLAN FOR FOSTER CARE AND ADOPTION ASSISTANCE

  Sec. 471. (a) In order for a State to be eligible for 
payments under this part, it shall have a plan approved by the 
Secretary which--
          (1) * * *

           *       *       *       *       *       *       *

          (9) provides that the State agency will--
                  (A) report to an appropriate agency or 
                official, known or suspected instances of 
                physical or mental injury, sexual abuse or 
                exploitation, or negligent treatment or 
                maltreatment of a child receiving aid under 
                part B or this part under circumstances which 
                indicate that the child's health or welfare is 
                threatened thereby; [and]
                  (B) provide such information with respect to 
                a situation described in subparagraph (A) as 
                the State agency may have; and
                  (C) not later than--
                          (i) 1 year after the date of the 
                        enactment of this subparagraph, 
                        demonstrate to the Secretary that the 
                        State agency has developed, in 
                        consultation with organizations with 
                        experience in dealing with at-risk 
                        youth, policies and procedures for 
                        identifying and screening (including 
                        relevant training for caseworkers), and 
                        for determining appropriate State 
                        action and services with respect to--
                                  (I) any child over whom the 
                                State agency has responsibility 
                                for placement, care, or 
                                supervision (including children 
                                for whom a State child welfare 
                                agency has an open case file 
                                but who have not been removed 
                                from the home and youth who are 
                                not in foster care but are 
                                receiving services under 
                                section 477 of this Act) who 
                                the State has reasonable cause 
                                to believe--
                                          (aa) is a victim of 
                                        sex trafficking (as 
                                        defined in section 
                                        103(10) of the 
                                        Trafficking Victims 
                                        Protection Act of 2000 
                                        (22 U.S.C. 7102(10))) 
                                        or a severe form of 
                                        trafficking in persons 
                                        described in section 
                                        103(9)(A) of such Act 
                                        (22 U.S.C. 7102(9)(A)); 
                                        or
                                          (bb) is at risk of 
                                        being a victim of 
                                        either kind of 
                                        trafficking; and
                                  (II) at the option of the 
                                State, any individual, without 
                                regard to whether the 
                                individual is or was in foster 
                                care under the responsibility 
                                of the State, who has not 
                                attained 26 years of age; and
                          (ii) 2 years after such date of 
                        enactment, demonstrate to the Secretary 
                        that the State agency is implementing, 
                        in consultation with the child 
                        protective services agency or unit for 
                        the State, the policies and procedures 
                        referred to in clause (i).
          [(10) provides for the establishment or designation 
        of a State authority or authorities which shall be 
        responsible for establishing and maintaining standards 
        for foster family homes and child care institutions 
        which are reasonably in accord with recommended 
        standards of national organizations concerned with 
        standards for such institutions or homes, including 
        standards related to admission policies, safety, 
        sanitation, and protection of civil rights, provides 
        that the standards so established shall be applied by 
        the State to any foster family home or child care 
        institution receiving funds under this part or part B 
        of this title, and provides that a waiver of any such 
        standard may be made only on a case-by-case basis for 
        non-safety standards (as determined by the State) in 
        relative foster family homes for specific children in 
        care;]
          (10) provides--
                  (A) for the establishment or designation of a 
                State authority or authorities that shall be 
                responsible for establishing and maintaining 
                standards for foster family homes and child 
                care institutions which are reasonably in 
                accord with recommended standards of national 
                organizations concerned with standards for the 
                institutions or homes, including standards 
                related to admission policies, safety, 
                sanitation, and protection of civil rights, and 
                which shall permit use of the reasonable and 
                prudent parenting standard;
                  (B) that the standards established pursuant 
                to subparagraph (A) shall be applied by the 
                State to any foster family home or child care 
                institution receiving funds under this part or 
                part B and shall require, as a condition of any 
                contract entered into by the State agency and a 
                child care institution, the presence on-site of 
                at least 1 official who, with respect to any 
                child placed at the child care institution, is 
                designated to be the caregiver who is 
                authorized to apply the reasonable and prudent 
                parent standard to decisions involving the 
                participation of the child in age or 
                developmentally-appropriate activities, and who 
                is provided with training in how to use and 
                apply the reasonable and prudent parent 
                standard in the same manner as prospective 
                foster parents are provided the training 
                pursuant to paragraph (24);
                  (C) that the standards established pursuant 
                to subparagraph (A) shall include policies 
                related to the liability of foster parents and 
                private entities under contract by the State 
                involving the application of the reasonable and 
                prudent parent standard, to ensure appropriate 
                liability for caregivers when a child 
                participates in an approved activity and the 
                caregiver approving the activity acts in 
                accordance with the reasonable and prudent 
                parent standard; and
                  (D) that a waiver of any standards 
                established pursuant to subparagraph (A) may be 
                made only on a case-by-case basis for nonsafety 
                standards (as determined by the State) in 
                relative foster family homes for specific 
                children in care;

           *       *       *       *       *       *       *

          (16) provides for the development of a case plan (as 
        defined in section 475(1) and in accordance with the 
        requirements of section 475A) for each child receiving 
        foster care maintenance payments under the State plan 
        and provides for a case review system which meets the 
        requirements described in [section 475(5)(B)] sections 
        475(5) and 475A with respect to each such child;

           *       *       *       *       *       *       *

          (24) [include] includes a certification that, before 
        a child in foster care under the responsibility of the 
        State is placed with prospective foster parents, the 
        prospective foster parents will be prepared adequately 
        with the appropriate knowledge and skills to provide 
        for the needs of the child, [and that such preparation] 
        that the preparation will be continued, as necessary, 
        after the placement of the child, and that the 
        preparation shall include knowledge and skills relating 
        to the reasonable and prudent parent standard for the 
        participation of the child in age or developmentally-
        appropriate activities, including knowledge and skills 
        relating to the developmental stages of the cognitive, 
        emotional, physical, and behavioral capacities of a 
        child, and knowledge and skills relating to applying 
        the standard to decisions such as whether to allow the 
        child to engage in social, extracurricular, enrichment, 
        cultural, and social activities, including sports, 
        field trips, and overnight activities lasting 1 or more 
        days, and to decisions involving the signing of 
        permission slips and arranging of transportation for 
        the child to and from extracurricular, enrichment, and 
        social activities;

           *       *       *       *       *       *       *

          (32) provides that the State will negotiate in good 
        faith with any Indian tribe, tribal organization or 
        tribal consortium in the State that requests to develop 
        an agreement with the State to administer all or part 
        of the program under this part on behalf of Indian 
        children who are under the authority of the tribe, 
        organization, or consortium, including foster care 
        maintenance payments on behalf of children who are 
        placed in State or tribally licensed foster family 
        homes, adoption assistance payments, and, if the State 
        has elected to provide such payments, kinship 
        guardianship assistance payments under section 473(d), 
        and tribal access to resources for administration, 
        training, and data collection under this part; [and]
          (33) provides that the State will inform any 
        individual who is adopting, or whom the State is made 
        aware is considering adopting, a child who is in foster 
        care under the responsibility of the State of the 
        potential eligibility of the individual for a Federal 
        tax credit under section 23 of the Internal Revenue 
        Code of 1986[.];
          (34) provides that, for each child over whom the 
        State agency has responsibility for placement, care, or 
        supervision (including any child for whom a State child 
        welfare agency has an open case file but who has not 
        been removed from the home, and any youth who is not in 
        foster care but is receiving services under section 
        477), the State agency shall--
                  (A) not later than 2 years after the date of 
                the enactment of this paragraph, identify and 
                document appropriately in agency records each 
                child who is identified as being a victim of 
                sex trafficking (as defined in section 103(10) 
                of the Trafficking Victims Protection Act of 
                2000) or as being a victim of severe forms of 
                trafficking in persons described in section 
                103(9)(A) of such Act, as such a victim; and
                  (B) report immediately, and in no case later 
                than 24 hours after receiving--
                          (i) information on children who have 
                        been identified as being victims of sex 
                        trafficking (as defined in subparagraph 
                        (A) of this paragraph) to the law 
                        enforcement authorities; and
                          (ii) information on missing or 
                        abducted children to the law 
                        enforcement authorities for entry into 
                        the National Crime Information Center 
                        (NCIC) database of the Federal Bureau 
                        of Investigation, established pursuant 
                        to section 534 of title 28, United 
                        States Code, and to the National Center 
                        for Missing and Exploited Children;
          (35) not later than 2 years after the date of the 
        enactment of this paragraph, contains a regularly 
        updated description, made available to the public on 
        the Internet website of the State agency, of the 
        specific measures taken by the State agency to protect 
        and provide services to children who are victims of sex 
        trafficking (as defined in section 103(10) of the 
        Trafficking Victims Protection Act of 2000), or victims 
        of severe forms of trafficking in persons described in 
        section 103(9)(A) of such Act, including efforts to 
        coordinate with State and local law enforcement, 
        schools, juvenile justice agencies, and social service 
        agencies such as runaway and homeless youth shelters 
        and transitional and other supportive housing providers 
        to serve that population; and
          (36) provides that, not later than 1 year after the 
        date of the enactment of this paragraph, the State 
        shall develop and implement specific protocols for--
                  (A) expeditiously locating any child missing 
                from foster care;
                  (B) determining the primary factors that 
                contributed to the child's running away or 
                otherwise being absent from care, and to the 
                extent possible and appropriate, responding to 
                those factors in current and subsequent 
                placements;
                  (C) determining the child's experiences while 
                absent from care, including screening the child 
                to determine if he or she is a possible victim 
                of sex trafficking (as defined in paragraph 
                (9)(C)); and
                  (D) reporting such related information as 
                required by the Secretary.

           *       *       *       *       *       *       *

                              DEFINITIONS

  Sec. 475. As used in this part or part B of this title:
          (1) The term ``case plan'' means a written document 
        which meets the requirements of section 475A and 
        includes at least the following:
                  (A) * * *
                  (B) A plan for assuring that the child 
                receives safe and proper care and that services 
                are provided to the parents, child, and foster 
                parents in order to improve the conditions in 
                the parents' home, facilitate return of the 
                child to his own safe home or the permanent 
                placement of the child, and address the needs 
                of the child while in foster care, including a 
                discussion of the appropriateness of the 
                services that have been provided to the child 
                under the plan. With respect to a child who has 
                attained 14 years of age, the plan developed 
                for the child in accordance with this 
                paragraph, and any revision or addition to the 
                plan, shall be developed in consultation with 
                the child and, at the option of the child, with 
                up to 2 members of the case planning team who 
                are chosen by the child and who are not a 
                foster parent of, or caseworker for, the child. 
                A State may reject an individual selected by a 
                child to be a member of the case planning team 
                at any time if the State has good cause to 
                believe that the individual would not act in 
                the best interests of the child. One individual 
                selected by a child to be a member of the 
                child's case planning team may be designated to 
                be the child's advisor and, as necessary, 
                advocate, with respect to the application of 
                the reasonable and prudent parent standard to 
                the child.

           *       *       *       *       *       *       *

                  (D) [Where appropriate, for a child age 16] 
                For a child who has attained 14 years of age or 
                over, a written description of the programs and 
                services which will help such child prepare for 
                the transition from foster care to [independent 
                living] a successful adulthood.

           *       *       *       *       *       *       *

          (5) The term ``case review system'' means a procedure 
        for assuring that--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) with respect to each such child, (i) 
                procedural safeguards will be applied, among 
                other things, to assure each child in foster 
                care under the supervision of the State of a 
                permanency hearing to be held, in a family or 
                juvenile court or another court (including a 
                tribal court) of competent jurisdiction, or by 
                an administrative body appointed or approved by 
                the court, no later than 12 months after the 
                date the child is considered to have entered 
                foster care (as determined under subparagraph 
                (F)) (and not less frequently than every 12 
                months thereafter during the continuation of 
                foster care), which hearing shall determine the 
                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 only in the case of a 
                child who has attained 16 years of age (in 
                cases where the State agency has documented to 
                the State court a compelling reason for 
                determining, as of the date of the hearing, 
                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, subject 
                to section 475A(a), in the case of a child who 
                will not be returned to the parent, the hearing 
                shall consider in-State and out-of-State 
                placement options, and, in the case of a child 
                described in subparagraph (A)(ii), the hearing 
                shall determine whether the out-of-State 
                placement continues to be appropriate and in 
                the best interests of the child, and, in the 
                case of a child who has attained age 16, the 
                services needed to assist the child to make the 
                transition from foster care to [independent 
                living] a successful adulthood; (ii) procedural 
                safeguards shall be applied with respect to 
                parental rights pertaining to the removal of 
                the child from the home of his parents, to a 
                change in the child's placement, and to any 
                determination affecting visitation privileges 
                of parents; [and] (iii) procedural safeguards 
                shall be applied to assure that in any 
                permanency hearing held with respect to the 
                child, including any hearing regarding the 
                transition of the child from foster care to 
                [independent living] a successful adulthood, 
                the court or administrative body conducting the 
                hearing consults, in an age-appropriate manner, 
                with the child regarding the proposed 
                permanency or transition plan for the child; 
                and (iv) if a child has attained 14 years of 
                age, the permanency plan developed for the 
                child, and any revision or addition to the 
                plan, shall be developed in consultation with 
                the child and, at the option of the child, with 
                not more than 2 members of the permanency 
                planning team who are selected by the child and 
                who are not a foster parent of, or caseworker 
                for, the child, except that the State may 
                reject an individual so selected by the child 
                if the State has good cause to believe that the 
                individual would not act in the best interests 
                of the child, and 1 individual so selected by 
                the child may be designated to be the child's 
                advisor and, as necessary, advocate, with 
                respect to the application of the reasonable 
                and prudent standard to the child;

           *       *       *       *       *       *       *

                  (I) each child in foster care under the 
                responsibility of the State who has attained 
                [16] 14 years of age receives without cost a 
                copy of any consumer report (as defined in 
                section 603(d) of the Fair Credit Reporting 
                Act) pertaining to the child each year until 
                the child is discharged from care, and receives 
                assistance (including, when feasible, from any 
                court-appointed advocate for the child) in 
                interpreting and resolving any inaccuracies in 
                the report.

           *       *       *       *       *       *       *

          (9)(A) The term ``reasonable and prudent parent 
        standard'' means the standard characterized by careful 
        and sensible parental decisions that maintain the 
        health, safety, and best interests of a child while at 
        the same time encouraging the emotional and 
        developmental growth of the child, that a caregiver 
        shall use when determining whether to allow a child in 
        foster care under the responsibility of the State to 
        participate in extracurricular, enrichment, cultural, 
        and social activities.
          (B) For purposes of subparagraph (A), the term 
        ``caregiver'' means a foster parent with whom a child 
        in foster care has been placed or a designated official 
        for a child care institution in which a child in foster 
        care has been placed.
          (10) The term ``age or developmentally-appropriate'' 
        means--
                  (A) activities or items that are generally 
                accepted as suitable for children of the same 
                chronological age or level of maturity or that 
                are determined to be developmentally-
                appropriate for a child, based on the 
                development of cognitive, emotional, physical, 
                and behavioral capacities that are typical for 
                an age or age group; and
                  (B) in the case of a specific child, 
                activities or items that are suitable for the 
                child based on the developmental stages 
                attained by the child with respect to the 
                cognitive, emotional, physical, and behavioral 
                capacities of the child.

SEC. 475A. ADDITIONAL CASE PLAN AND CASE REVIEW SYSTEM REQUIREMENTS.

  (a) Requirements for Another Planned Permanent Living 
Arrangement.--In the case of any child for whom another planned 
permanent living arrangement is the permanency plan for the 
child, the following requirements shall apply for purposes of 
approving the case plan for the child and the case system 
review procedure for the child:
          (1) Documentation of intensive, ongoing, unsuccessful 
        efforts for family placement.--At each permanency 
        hearing held with respect to the child, the State 
        agency documents the intensive, ongoing, and, as of the 
        date of the hearing, unsuccessful efforts made by the 
        State agency to return the child home or secure a 
        placement for the child with a fit and willing relative 
        (including adult siblings), a legal guardian, or an 
        adoptive parent, including through efforts that utilize 
        search technology (including social media) to find 
        biological family members for children in the child 
        welfare system.
          (2) Redetermination of appropriateness of placement 
        at each permanency hearing.--The State agency shall 
        implement procedures to ensure that, at each permanency 
        hearing held with respect to the child, the court or 
        administrative body appointed or approved by the court 
        conducting the hearing on the permanency plan for the 
        child does the following:
                  (A) Ask the child about the desired 
                permanency outcome for the child.
                  (B) Make a judicial determination explaining 
                why, as of the date of the hearing, another 
                planned permanent living arrangement is the 
                best permanency plan for the child and provide 
                compelling reasons why it continues to not be 
                in the best interests of the child to--
                          (i) return home;
                          (ii) be placed for adoption;
                          (iii) be placed with a legal 
                        guardian; or
                          (iv) be placed with a fit and willing 
                        relative.
          (3) Demonstration of support for engaging in age or 
        developmentally-appropriate activities and social 
        events.--At each permanency hearing held with respect 
        to the child, the State agency shall document the steps 
        the State agency is taking to ensure the child's foster 
        family home or child care institution is following the 
        reasonable and prudent parent standard.
  (b) List of Rights.--The case plan for any child in foster 
care under the responsibility of the State who has attained 14 
years of age shall include a document that describes the rights 
of the child with respect to education, health, visitation, and 
court participation, and to staying safe and avoiding 
exploitation, and a signed acknowledgment by the child that the 
child has been provided with a copy of the document and that 
the rights contained in the document have been explained to the 
child in an age-appropriate way.

           *       *       *       *       *       *       *

        COLLECTION OF DATA RELATING TO ADOPTION AND FOSTER CARE

  Sec. 479. (a) * * *

           *       *       *       *       *       *       *

  (c) Any data collection system developed and implemented 
under this section shall--
          (1) * * *

           *       *       *       *       *       *       *

          (3) provide comprehensive national information with 
        respect to--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) the number and characteristics of--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) children placed in foster care 
                        outside the State which has placement 
                        and care responsibility, [and]

           *       *       *       *       *       *       *

                  (E) the annual number of children in foster 
                care who are identified as victims of sex 
                trafficking (as defined in section 103(10) of 
                the Trafficking Victims Protection Act of 2000 
                (22 U.S.C. 7102(10))) or a severe form of 
                trafficking in persons described in section 
                103(9)(A) of such Act--
                          (i) who were such victims before 
                        entering foster care; and
                          (ii) who were such victims while in 
                        foster care; and

           *       *       *       *       *       *       *

SEC. 479A. ANNUAL REPORT.

  [The Secretary] (a) In General.--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) * * *

           *       *       *       *       *       *       *

          (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; [and]
          (6) include in the report submitted pursuant to 
        paragraph (5) for fiscal year 2007 or any succeeding 
        fiscal year, State-by-State data on--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) the percentage of the visits that 
                occurred in the residence of the child[.];
          (7) include in the report submitted pursuant to 
        paragraph (5) for fiscal year 2016 or any succeeding 
        fiscal year, State-by-State data on children in foster 
        care who have been placed in a child care institution 
        or other setting that is not a foster family home, 
        including--
                  (A) the number of children in the placements 
                and their ages, including separately, the 
                number and ages of children who have a 
                permanency plan of another planned permanent 
                living arrangement;
                  (B) the duration of the placement in the 
                settings (including for children who have a 
                permanency plan of another planned permanent 
                living arrangement);
                  (C) the types of child care institutions used 
                (including group homes, residential treatment, 
                shelters, or other congregate care settings);
                  (D) with respect to each child care 
                institution or other setting that is not a 
                foster family home, the number of children in 
                foster care residing in each such institution 
                or non-foster family home;
                  (E) any clinically diagnosed special need of 
                such children; and
                  (F) the extent of any specialized education, 
                treatment, counseling, or other services 
                provided in the settings; and
          (8) include in the report submitted pursuant to 
        paragraph (5) for fiscal year 2016 or any succeeding 
        fiscal year, State-by-State data on children in foster 
        care who are pregnant or parenting.
  (b) Consultation on Other Issues.--The Secretary shall 
consult with States and organizations with an interest in child 
welfare, including organizations that provide adoption and 
foster care services, and shall take into account requests from 
Members of Congress, in selecting other issues to be analyzed 
and reported on under this section using data available to the 
Secretary, including data reported by States through the 
Adoption and Foster Care Analysis and Reporting System and to 
the National Youth in Transition Database.

           *       *       *       *       *       *       *

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