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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1195 Introduced in Senate (IS)]

105th CONGRESS
  1st Session
                                S. 1195

   To promote the adoption of children in foster care, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 18, 1997

Mr. Chafee (for himself, Mr. Craig, Mr. Rockefeller, Mr. Jeffords, Mr. 
 DeWine, Mr. Coats, Mr. Bond, Ms. Landrieu, and Mr. Levin) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL

 
   To promote the adoption of children in foster care, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Promotion of 
Adoption, Safety, and Support for Abused and Neglected Children (PASS) 
Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:
Sec. 1. Short title; table of contents.
TITLE I--REASONABLE EFFORTS AND SAFETY REQUIREMENTS FOR FOSTER CARE AND 
                          ADOPTION PLACEMENTS

Sec. 101. Clarification of the reasonable efforts requirement.
Sec. 102. Including safety in case plan and case review system 
                            requirements.
Sec. 103. Multidisciplinary/multiagency child death review teams.
Sec. 104. States required to initiate or join proceedings to terminate 
                            parental rights for certain children in 
                            foster care.
Sec. 105. Notice of reviews and hearings; opportunity to be heard.
Sec. 106. Use of the Federal Parent Locator Service for child welfare 
                            services.
Sec. 107. Criminal records checks for prospective foster and adoptive 
                            parents and group care staff.
Sec. 108. Development of State guidelines to ensure safe, quality care 
                            to children in out-of-home placements.
Sec. 109. Documentation of efforts for adoption or location of a 
                            permanent home.
   TITLE II--INCENTIVES FOR PROVIDING PERMANENT FAMILIES FOR CHILDREN

Sec. 201. Adoption incentive payments.
Sec. 202. Promotion of adoption of children with special needs.
Sec. 203. Technical assistance.
Sec. 204. Adoptions across State and county jurisdictions.
Sec. 205. Facilitation of voluntary mutual reunions between adopted 
                            adults and birth parents and siblings.
Sec. 206. Annual report on State performance in protecting children.
             TITLE III--ADDITIONAL IMPROVEMENTS AND REFORMS

Sec. 301. Expansion of child welfare demonstration projects.
Sec. 302. Permanency planning hearings.
Sec. 303. Kinship care.
Sec. 304. Standby guardianship.
Sec. 305. Clarification of eligible population for independent living 
                            services.
Sec. 306. Coordination and collaboration of substance abuse treatment 
                            and child protection services.
Sec. 307. Reauthorization and expansion of family preservation and 
                            support services.
Sec. 308. Innovation grants to reduce backlogs of children awaiting 
                            adoption and for other purposes.
                        TITLE IV--MISCELLANEOUS

Sec. 401. Preservation of reasonable parenting.
Sec. 402. Reporting requirements.
Sec. 403. Report on fiduciary obligations of State agencies receiving 
                            SSI payments.
Sec. 404. Allocation of administrative costs of determining eligibility 
                            for medicaid and TANF.
                        TITLE V--EFFECTIVE DATE

Sec. 501. Effective date.

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

SEC. 101. CLARIFICATION OF THE REASONABLE EFFORTS REQUIREMENT.

    Section 471(a)(15) of the Social Security Act (42 U.S.C. 
671(a)(15)) is amended to read as follows:
            ``(15) provides that--
                    ``(A) in determining reasonable efforts, as 
                described in this section, the child's health and 
                safety shall be the paramount concern;
                    ``(B) reasonable efforts shall be made to preserve 
                and reunify families when possible--
                            ``(i) prior to the placement of a child in 
                        foster care, to prevent or eliminate the need 
                        for removing the child from the child's home 
                        when the child can be cared for at home without 
                        endangering the child's health or safety; or
                            ``(ii) to make it possible for the child to 
                        safely return to the child's home;
                    ``(C) reasonable efforts shall not be required on 
                behalf of any parent--
                            ``(i) if a court of competent jurisdiction 
                        has made a determination that the parent has--
                                    ``(I) committed murder of another 
                                child of the parent;
                                    ``(II) committed voluntary 
                                manslaughter of another child of the 
                                parent;
                                    ``(III) aided or abetted, 
                                attempted, conspired, or solicited to 
                                commit such murder or voluntary 
                                manslaughter; or
                                    ``(IV) committed a felony assault 
                                that results in serious bodily injury 
                                to the child or another child of the 
                                parent;
                            ``(ii) if a court of competent jurisdiction 
                        determines that returning the child to the home 
                        of the parent would pose a serious risk to the 
                        child's health or safety (including but not 
                        limited to cases of abandonment, torture, 
                        chronic physical abuse, sexual abuse, or a 
                        previous involuntary termination of parental 
                        rights with respect to a sibling of the child); 
                        or
                            ``(iii) if the State, through legislation, 
                        has specified cases in which the State is not 
                        required to make reasonable efforts because of 
                        serious circumstances that endanger a child's 
                        health or safety;
                    ``(D) if reasonable efforts to preserve or reunify 
                a family are not made in accordance with subparagraph 
                (C), and placement with either parent would pose a 
                serious risk to the child's health or safety, or in any 
                case in which a State's goal for the child is adoption 
                or placement in another permanent home, reasonable 
                efforts shall be made to place the child in a timely 
                manner with an adoptive family, with a qualified 
                relative or legal guardian, or in another planned 
                permanent living arrangement, and to complete whatever 
                steps are necessary to finalize the adoption or legal 
                guardianship; and
                    ``(E) reasonable efforts of the type described in 
                subparagraph (D) may be made concurrently with 
                reasonable efforts of the type described in 
                subparagraph (B);''.

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

    Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is 
amended--
            (1) in section 422(b)(10)(B) (as redesignated by section 
        5592(a)(1)(A)(iii) of the Balanced Budget Act of 1997 (Public 
        Law 105-33; 111 Stat. 644))--
                    (A) in clause (iii)(I), by inserting ``safe and'' 
                after ``where''; and
                    (B) in clause (iv), by inserting ``safely'' after 
                ``remain''; and
            (2) in section 475--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by inserting 
                        ``safety and'' after ``discussion of the''; and
                            (ii) in subparagraph (B)--
                                    (I) by inserting ``safe and'' after 
                                ``child receives''; and
                                    (II) by inserting ``safe'' after 
                                ``return of the child to his own''; and
                    (B) in paragraph (5)--
                            (i) in subparagraph (A), in the matter 
                        preceding clause (i), by inserting ``a safe 
                        setting that is'' after ``placement in''; and
                            (ii) in subparagraph (B)--
                                    (I) by inserting ``the safety of 
                                the child,'' after ``determine''; and
                                    (II) by inserting ``and safely 
                                maintained in'' after ``returned to''.

SEC. 103. MULTIDISCIPLINARY/MULTIAGENCY CHILD DEATH REVIEW TEAMS.

    (a) State Child Death Review Teams.--Section 471 of the Social 
Security Act (42 U.S.C. 671) is amended by adding at the end the 
following:
    ``(c)(1) In order to investigate and prevent child death from fatal 
abuse and neglect, not later than 2 years after the date of the 
enactment of this subsection, a State, in order to be eligible for 
payments under this part, shall submit to the Secretary a certification 
that the State has established and is maintaining, in accordance with 
applicable confidentiality laws, a State child death review team, and 
if necessary in order to cover all counties in the State, child death 
review teams on the regional or local level, that shall review child 
deaths, including deaths in which--
            ``(A) there is a record of a prior report of child abuse or 
        neglect or there is reason to suspect that the child death was 
        caused by, or related to, child abuse or neglect; or
            ``(B) the child who died was a ward of the State or was 
        otherwise known to the State or local child welfare service 
        agency.
    ``(2) A child death review team established in accordance with this 
subsection should have a membership that will present a range of 
viewpoints that are independent from any specific agency, and shall 
include representatives from, at a minimum, specific fields of 
expertise, such as law enforcement, health, mental health, and 
substance abuse, and from the community.
    ``(3) A State child death review team shall--
            ``(A) provide support to a regional or local child death 
        review team;
            ``(B) make public an annual summary of case findings;
            ``(C) provide recommendations for systemwide improvements 
        in services to investigate and prevent future fatal abuse and 
        neglect; and
            ``(D) if the State child death review team covers all 
        counties in the State on its own, carry out the duties of a 
        regional or local child death review team described in 
        paragraph (4).
    ``(4) A regional or local child death review team shall--
            ``(A) conduct individual case reviews;
            ``(B) recommend followup procedures for child death cases; 
        and
            ``(C) suggest and assist with system improvements in 
        services to investigate and prevent future fatal abuse and 
        neglect.''.
    (b) Federal Child Death Review Team.--Section 471 of the Social 
Security Act (42 U.S.C. 671), as amended by subsection (a), is amended 
by adding at the end the following:
    ``(d)(1) The Secretary shall establish a Federal child death review 
team that shall consist of at least the following:
            ``(A) Representatives of the following Federal agencies who 
        have expertise in the prevention or treatment of child abuse 
        and neglect:
                    ``(i) Department of Health and Human Services.
                    ``(ii) Department of Justice.
                    ``(iii) Bureau of Indian Affairs.
                    ``(iv) Department of Defense.
                    ``(v) Bureau of the Census.
            ``(B) Representatives of national child-serving 
        organizations who have expertise in the prevention or treatment 
        of child abuse and neglect and that, at a minimum, represent 
        the health, child welfare, social services, and law enforcement 
        fields.
    ``(2) The Federal child death review team established under this 
subsection shall--
            ``(A) review reports of child deaths on military 
        installations and other Federal lands, and coordinate with 
        Indian tribal organizations in the review of child deaths on 
        Indian reservations;
            ``(B) upon request, provide guidance and technical 
        assistance to States and localities seeking to initiate or 
        improve child death review teams and to prevent child 
        fatalities; and
            ``(C) develop recommendations on related policy and 
        procedural issues for Congress, relevant Federal agencies, and 
        States and localities for the purpose of preventing child 
        fatalities.''.

SEC. 104. STATES REQUIRED TO INITIATE OR JOIN PROCEEDINGS TO TERMINATE 
              PARENTAL RIGHTS FOR CERTAIN CHILDREN IN FOSTER CARE.

    (a) Requirement for Proceedings.--Section 475(5) of the Social 
Security Act (42 U.S.C. 675(5)) is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) in the case of a child who has been in foster 
                care under the responsibility of the State for 12 of 
                the most recent 18 months, or for a lifetime total of 
                24 months, or, if a court of competent jurisdiction has 
                determined an infant to have been abandoned (as defined 
                under State law), or made a determination that the 
                parent has committed murder of another child of such 
                parent, committed voluntary manslaughter of another 
                child of such parent, aided or abetted, attempted, 
                conspired, or solicited to commit such murder or 
                voluntary manslaughter, or committed a felony assault 
                that results in serious bodily injury to the surviving 
                child or to another child of such parent, the State 
                shall file a petition to terminate the parental rights 
                of the child's parents (or, if such a petition has been 
                filed by another party, seek to be joined as a party to 
                the petition), and, concurrently, to identify, recruit, 
                process, and approve a qualified family for an 
                adoption, unless--
                            ``(i) at the option of the State, the child 
                        is being cared for by a relative; or
                            ``(ii) a State court or State agency has 
                        documented a compelling reason for determining 
                        that filing such a petition would not be in the 
                        best interests of the child.''.
    (b) Determination of Beginning of Foster Care.--Section 475(5) of 
the Social Security Act (42 U.S.C. 675(5)), as amended by subsection 
(a), is amended--
            (1) by striking ``and'' at the end of subparagraph (D);
            (2) by striking the period at the end of subparagraph (E) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(F) a child shall be considered to have entered 
                foster care on the latter of--
                            ``(i) the first time the child is removed 
                        from the home; or
                            ``(ii) the date of the first judicial 
                        hearing on removal of the child from the 
                        home.''.
    (c) Elimination of Unnecessary Court Delays.--
            (1) One-year statute of limitations for appeals of orders 
        terminating parental rights.--Section 471(a) of the Social 
        Security Act (42 U.S.C. 671(a)), as amended by section 5591(b) 
        of the Balanced Budget Act of 1997, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (18);
                    (B) by striking the period at the end of paragraph 
                (19) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(20) provides that an order terminating parental rights 
        shall only be appealable during the 1-year period that begins 
        on the date the order is issued.''.
            (2) One-year statute of limitations for appeals of orders 
        of removal.--Section 471(a) of the Social Security Act (42 
        U.S.C. 671(a)), as amended by subsection (a), is amended--
                    (A) in paragraph (19), by striking ``and'' at the 
                end;
                    (B) in paragraph (20), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(21) provides that a court-ordered removal of a child 
        shall only be appealable during the 1-year period that begins 
        on the date the order is issued.''.
    (d) Rule of Construction.--Nothing in part E of title IV of the 
Social Security Act (42 U.S.C. 670 et seq.), as amended by this Act, 
shall be construed as precluding State courts or State agencies from 
initiating or finalizing the termination of parental rights for reasons 
other than, or for timelines earlier than, those specified in part E of 
title IV of such Act, when such actions are determined to be in the 
best interests of the child.
    (e) Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall apply to 
        children entering foster care under the responsibility of the 
        State after the date of enactment of this Act.
            (2) Transition rule for current foster care children.--
        Subject to paragraph (3), with respect to any child in foster 
        care under the responsibility of the State on or before the 
        date of enactment of this Act, the amendments made by this 
        section shall not apply to such child until the date that is 1 
        year after the date of enactment of this Act.
            (3) Delay Permitted if State Legislation Required.--The 
        provisions of section 501(b) shall apply to the effective date 
        of the amendments made by this section.

SEC. 105. NOTICE OF REVIEWS AND HEARINGS; OPPORTUNITY TO BE HEARD.

    Section 475(5) of the Social Security Act (42 U.S.C. 675(5)), as 
amended by section 104(b), is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by striking the period at the end of subparagraph (F) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(G) the foster parents (if any) of a child and 
                any relative providing care for the child are provided 
                with notice of, and an opportunity to be heard in, any 
                review or hearing to be held with respect to the child, 
                except that this subparagraph shall not be construed to 
                make any foster parent or relative a party to such a 
                review or hearing solely on the basis of such notice 
                and opportunity to be heard.''.

SEC. 106. USE OF THE FEDERAL PARENT LOCATOR SERVICE FOR CHILD WELFARE 
              SERVICES.

    Section 453 of the Social Security Act (42 U.S.C. 653), as amended 
by section 5534 of the Balanced Budget Act of 1997, is amended--
            (1) in subsection (a)(2)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``or making or enforcing child custody or 
                visitation orders'' after ``obligations,''; and
                    (B) in subparagraph (A)--
                            (i) by striking ``or'' at the end of clause 
                        (ii);
                            (ii) by striking the comma at the end of 
                        clause (iii) and inserting ``; or''; and
                            (iii) by inserting after clause (iii) the 
                        following:
                            ``(iv) who has or may have parental rights 
                        with respect to a child,''; and
            (2) in subsection (c)--
                    (A) by striking the period at the end of paragraph 
                (3) and inserting ``; and''; and
                    (B) by adding at the end the following:
            ``(4) a State agency that is administering a program 
        operated under a State plan under subpart 1 of part B, or a 
        State plan approved under subpart 2 of part B or under part 
        E.''.

SEC. 107. CRIMINAL RECORDS CHECKS FOR PROSPECTIVE FOSTER AND ADOPTIVE 
              PARENTS AND GROUP CARE STAFF.

    Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as 
amended by section 104(c)(2), is amended--
            (1) by striking ``and'' at the end of paragraph (20);
            (2) by striking the period at the end of paragraph (21) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(22) provides procedures for criminal records checks and 
        checks of a State's child abuse registry for any prospective 
        foster parent or adoptive parent, and any employee of a 
        residential child-care institution before the foster parent or 
        adoptive parent, or the residential child-care institution may 
        be finally approved for placement of a child on whose behalf 
        foster care maintenance payments or adoption assistance 
        payments are to be made under the State plan under this part, 
        including procedures requiring that--
                    ``(A) in any case in which a criminal record check 
                reveals a criminal conviction for child abuse or 
                neglect, or spousal abuse, a criminal conviction for 
                crimes against children, or a criminal conviction for a 
                crime involving violence, including violent drug-
                related offenses, rape, sexual or other physical 
                assault, battery, or homicide, approval shall not be 
                granted, unless the individual provides substantial 
                evidence to local law enforcement officials and the 
                State child protection agency proving that there are 
                extraordinary circumstances which demonstrate that 
                approval should be granted; and
                    ``(B) in any case in which a criminal record check 
                reveals a criminal conviction for a felony or 
                misdemeanor not involving violence, or a check of any 
                State child abuse registry indicates that a 
                substantiated report of abuse or neglect exists, final 
                approval may be granted only after consideration of the 
                nature of the offense or incident, the length of time 
                that has elapsed since the commission of the offense or 
                the occurrence of the incident, the individual's life 
                experiences during the period since the commission of 
                the offense or the occurrence of the incident, and any 
                risk to the child.''.

SEC. 108. DEVELOPMENT OF STATE GUIDELINES TO ENSURE SAFE, QUALITY CARE 
              TO CHILDREN IN OUT-OF-HOME PLACEMENTS.

    Section 471(a)(10) of the Social Security Act (42 U.S.C. 
671(a)(10)) is amended--
            (1) by inserting ``and guidelines'' after ``standards'' 
        each place it appears; and
            (2) by inserting ``ensuring quality services that protect 
        the safety and health of children in foster care placements 
        with nonprofit and for-profit agencies,'' after ``related to''.

SEC. 109. DOCUMENTATION OF EFFORTS FOR ADOPTION OR LOCATION OF A 
              PERMANENT HOME.

    Section 475 of the Social Security Act (42 U.S.C. 675) is amended--
            (1) in paragraph (1)--
                    (A) in the last sentence--
                            (i) by striking ``the case plan must also 
                        include''; and
                            (ii) by redesignating such sentence as 
                        subparagraph (D) and indenting appropriately; 
                        and
                    (B) by adding at the end, the following:
                    ``(E) In the case of a child with respect to whom 
                the State's goal is adoption or placement in another 
                permanent home, documentation of the steps taken by the 
                agency to find an adoptive family or other permanent 
                living arrangement for the child, to place the child 
                with an adoptive family, legal guardian, or in another 
                planned permanent living arrangement, and to finalize 
                the adoption or legal guardianship. At a minimum, such 
                documentation shall include child specific recruitment 
                efforts such as the use of State, regional, and 
                national adoption exchanges including electronic 
                exchange systems.''; and
            (2) in paragraph (5)(B), by inserting ``(including the 
        requirement specified in paragraph (1)(E))'' after ``case 
        plan''.

   TITLE II--INCENTIVES FOR PROVIDING PERMANENT FAMILIES FOR CHILDREN

SEC. 201. ADOPTION INCENTIVE PAYMENTS.

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

``SEC. 473A. ADOPTION INCENTIVE PAYMENTS.

    ``(a) Grant Authority.--Subject to the availability of such amounts 
as may be provided in advance in appropriations Acts for this purpose, 
the Secretary may make a grant to each State that is an incentive-
eligible State for a fiscal year in an amount equal to the adoption 
incentive payment payable to the State for the fiscal year under this 
section, which shall be payable in the immediately succeeding fiscal 
year.
    ``(b) Incentive-Eligible State.--A State is an incentive-eligible 
State for a fiscal year if--
            ``(1) the State has a plan approved under this part for the 
        fiscal year;
            ``(2) the number of foster child adoptions in the State 
        during the fiscal year exceeds the base number of foster child 
        adoptions for the State for the fiscal year;
            ``(3) the State is in compliance with subsection (c) for 
        the fiscal year; and
            ``(4) the fiscal year is any of fiscal years 1998 through 
        2002.
    ``(c) Data Requirements.--
            ``(1) In general.--A State is in compliance with this 
        subsection for a fiscal year if the State has provided to the 
        Secretary the data described in paragraph (2) for fiscal year 
        1997 (or, if later, the fiscal year that precedes the first 
        fiscal year for which the State seeks a grant under this 
        section) and for each succeeding fiscal year.
            ``(2) Determination of numbers of adoptions.--
                    ``(A) Determinations based on afcars data.--Except 
                as provided in subparagraph (B), the Secretary shall 
                determine the numbers of foster child adoptions and of 
                special needs adoptions in a State during each of 
                fiscal years 1997 through 2002, for purposes of this 
                section, on the basis of data meeting the requirements 
                of the system established pursuant to section 479, as 
                reported by the State in May of the fiscal year and in 
                November of the succeeding fiscal year, and approved by 
                the Secretary by April 1 of the succeeding fiscal year.
                    ``(B) Alternative data sources permitted for fiscal 
                year 1997.--For purposes of the determination described 
                in subparagraph (A) for fiscal year 1997, the Secretary 
                may use data from a source or sources other than that 
                specified in subparagraph (A) that the Secretary finds 
                to be of equivalent completeness and reliability, as 
                reported by a State by November 30, 1997, and approved 
                by the Secretary by March 1, 1998.
            ``(3) No waiver of afcars requirements.--This section shall 
        not be construed to alter or affect any requirement of section 
        479 or any regulation prescribed under such section with 
        respect to reporting of data by States, or to waive any penalty 
        for failure to comply with the requirements.
    ``(d) Adoption Incentive Payment.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        adoption incentive payment payable to a State for a fiscal year 
        under this section shall be equal to the sum of--
                    ``(A) $2,000, multiplied by amount (if any) by 
                which the number of foster child adoptions in the State 
                during the fiscal year exceeds the base number of 
                foster child adoptions for the State for the fiscal 
                year; and
                    ``(B) $2,000, multiplied by the amount (if any) by 
                which the number of special needs adoptions in the 
                State during the fiscal year exceeds the base number of 
                special needs adoptions for the State for the fiscal 
                year.
            ``(2) Pro rata adjustment if insufficient funds 
        available.--For any fiscal year, if the total amount of 
        adoption incentive payments otherwise payable under this 
        section for a fiscal year exceeds the amount appropriated for 
        that fiscal year, the amount of the adoption incentive payment 
        payable to each State under this section for the fiscal year 
        shall be--
                    ``(A) the amount of the adoption incentive payment 
                that would otherwise be payable to the State under this 
                section for the fiscal year; multiplied by
                    ``(B) the percentage represented by the amount 
                appropriated for that year, divided by the total amount 
                of adoption incentive payments otherwise payable under 
                this section for the fiscal year.
    ``(e) 2-Year Availability of Incentive Payments.--Payments to a 
State under this section in a fiscal year shall remain available for 
use by the State through the end of the succeeding fiscal year.
    ``(f) Limitations on Use of Incentive Payments.--A State shall not 
expend an amount paid to the State under this section except to provide 
to children or families any service (including post adoption services) 
that may be provided under part B or E. Amounts expended by a State in 
accordance with the preceding sentence shall be disregarded in 
determining State expenditures for purposes of Federal matching 
payments under section 474.
    ``(g) Definitions.--As used in this section:
            ``(1) Foster child adoption.--The term `foster child 
        adoption' means the final adoption of a child who, at the time 
        of adoptive placement, was in foster care under the supervision 
        of the State.
            ``(2) Special needs adoption.--The term `special needs 
        adoption' means the final adoption of a child for whom an 
        adoption assistance agreement is in effect under section 473.
            ``(3) Base number of foster child adoptions.--The term 
        `base number of foster child adoptions for a State' means, with 
        respect to a fiscal year, the largest number of foster child 
        adoptions in the State in fiscal year 1997 (or, if later, the 
        first fiscal year for which the State has furnished to the 
        Secretary the data described in subsection (c)(2)) or in any 
        succeeding fiscal year preceding the fiscal year.
            ``(4) Base number of special needs adoptions.--The term 
        `base number of special needs adoptions for a State' means, 
        with respect to a fiscal year, the largest number of special 
        needs adoptions in the State in fiscal year 1997 (or, if later, 
        the first fiscal year for which the State has furnished to the 
        Secretary the data described in subsection (c)(2)) or in any 
        succeeding fiscal year preceding the fiscal year.
    ``(h) Limitations on Authorization of Appropriations.--
            ``(1) In general.--For grants under this section, there are 
        authorized to be appropriated to the Secretary $15,000,000 for 
        each of fiscal years 1999 through 2003.
            ``(2) Availability.--Amounts appropriated under paragraph 
        (1) are authorized to remain available until expended, but not 
        after fiscal year 2003.''.

SEC. 202. PROMOTION OF ADOPTION OF CHILDREN WITH SPECIAL NEEDS.

    (a) In General.--Section 473(a) of the Social Security Act (42 
U.S.C. 673(a)) is amended by striking paragraph (2) and inserting the 
following:
    ``(2)(A) For purposes of paragraph (1)(B)(ii), a child meets the 
requirements of this paragraph if such child--
            ``(i) prior to termination of parental rights and the 
        initiation of adoption proceedings was in the care of a public 
        or licensed private child care agency or Indian tribal 
        organization either pursuant to a voluntary placement agreement 
        (provided the child was in care for not more than 180 days) or 
        as a result of a judicial determination to the effect that 
        continuation in the home would be contrary to the safety and 
        welfare of such child, or was residing in a foster family home 
        or child care institution with the child's minor parent (either 
        pursuant to such a voluntary placement agreement or as a result 
        of such a judicial determination); and
            ``(ii) has been determined by the State pursuant to 
        subsection (c) to be a child with special needs, which needs 
        shall be considered by the State, together with the 
        circumstances of the adopting parents, in determining the 
        amount of any payments to be made to the adopting parents.
    ``(B) Notwithstanding any other provision of law, and except as 
provided in paragraph (7), a child who is not a citizen or resident of 
the United States and who meets the requirements of subparagraph (A) 
and is otherwise determined to be eligible for the receipt of adoption 
assistance payments, shall be eligible for adoption assistance payments 
under this part.
    ``(C) A child who meets the requirements of subparagraph (A) and 
who is otherwise determined to be eligible for the receipt of adoption 
assistance payments shall continue to be eligible for such payments in 
the event that the child's adoptive parent dies or the child's adoption 
is dissolved, and the child is placed with another family for 
adoption.''.
    (b) Exception.--Section 473(a) of the Social Security Act (42 
U.S.C. 673(a)) is amended by adding at the end the following:
    ``(7)(A) Notwithstanding any other provision of this subsection, no 
payment may be made to parents with respect to any child that--
            ``(i) would be considered a child with special needs under 
        subsection (c);
            ``(ii) is not a citizen or resident of the United States; 
        and
            ``(iii) was adopted outside of the United States or was 
        brought into the United States for the purpose of being 
        adopted.
    ``(B) Subparagraph (A) shall not be construed as prohibiting 
payments under this part for a child described in subparagraph (A) that 
is placed in foster care subsequent to the failure, as determined by 
the State, of the initial adoption of such child by the parents 
described in such subparagraph.''.
    (c) Requirement for Use of State Savings.--Section 473(a) of the 
Social Security Act (42 U.S.C. 673(a)), as amended by subsection (b), 
is amended by adding at the end the following:
    ``(8) A State shall spend an amount equal to the amount of savings 
(if any) in State expenditures under this part resulting from the 
application of paragraph (2) on and after the effective date of the 
amendment to such paragraph made by section 202(a) of the Promotion of 
Adoption, Safety, and Support for Abused and Neglected Children (PASS) 
Act to provide to children or families any service (including post-
adoption services) that may be provided under this part or part B.''.

SEC. 203. TECHNICAL ASSISTANCE.

    (a) In General.--The Secretary of Health and Human Services may, 
directly or through grants or contracts, provide technical assistance 
to assist States and local communities to reach their targets for 
increased numbers of adoptions and, to the extent that adoption is not 
possible, alternative permanent placements, for children in foster 
care.
    (b) Limitations.--The technical assistance provided under 
subsection (a) shall support the goal of encouraging more adoptions out 
of the foster care system, when adoptions promote the best interests of 
children, and shall include the following:
            (1) The development of best practice guidelines for 
        expediting termination of parental rights.
            (2) Models to encourage the use of concurrent planning.
            (3) The development of specialized units and expertise in 
        moving children toward adoption as a permanency goal.
            (4) The development of risk assessment tools to facilitate 
        early identification of the children who will be at risk of 
        harm if returned home.
            (5) Models to encourage the fast tracking of children who 
        have not attained 1 year of age into adoptive and pre-adoptive 
        placements.
            (6) Development of programs that place children in pre-
        adoptive families without waiting for termination of parental 
        rights.
            (7) Development of programs to recruit adoptive parents.

SEC. 204. ADOPTIONS ACROSS STATE AND COUNTY JURISDICTIONS.

    (a) Elimination of Geographic Barriers to Interstate Adoption.--
Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as 
amended by section 106, is amended--
            (1) by striking ``and'' at the end of paragraph (21);
            (2) by striking the period at the end of paragraph (22) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(23) provides that neither the State nor any other entity 
        in the State that receives funds from the Federal Government 
        and is involved in adoption or foster care placements may--
                    ``(A) deny to any person the opportunity to become 
                an applicant for custody of a child, licensure as a 
                foster or adoptive parent, or for foster care 
                maintenance payments or adoption assistance payments 
                under this part on the basis of the geographic 
                residence of the person or of the child involved; or
                    ``(B) delay or deny the placement of a child for 
                adoption, into foster care, or in the child's original 
                home on the basis of the geographic residence of an 
                adoptive or foster parent or of the child involved.''.
    (b) Study of Interjurisdictional Adoption Issues.--
            (1) In general.--The Secretary of Health and Human Services 
        (in this subsection referred to as the ``Secretary'') shall 
        appoint an advisory panel that shall--
                    (A) study and consider how to improve procedures 
                and policies to facilitate the timely and permanent 
                adoptions of children across State and county 
                jurisdictions;
                    (B) examine, at a minimum, interjurisdictional 
                adoption issues--
                            (i) concerning the recruitment of 
                        prospective adoptive families from other States 
                        and counties;
                            (ii) concerning the procedures to grant 
                        reciprocity to prospective adoptive family home 
                        studies from other States and counties;
                            (iii) arising from a review of the comity 
                        and full faith and credit provided to adoption 
                        decrees and termination of parental rights 
                        orders from other States; and
                            (iv) concerning the procedures related to 
                        the administration and implementation of the 
                        Interstate Compact on the Placement of 
                        Children; and
                    (C) not later than 12 months after the final 
                appointment to the advisory panel, submit to the 
                Secretary the report described in paragraph (3).
            (2) Composition of advisory panel.--In establishing the 
        advisory panel required under paragraph (1), the Secretary 
        shall appoint members from the general public who are 
        individuals knowledgeable on adoption and foster care issues, 
        and with due consideration to representation of ethnic or 
        racial minorities and diverse geographic areas, and who, at a 
        minimum, include the following:
                    (A) Adoptive and foster parents.
                    (B) Public and private child welfare agencies that 
                place children in and out of home care.
                    (C) Family court judges.
                    (D) Adoption attorneys.
                    (E) An Administrator of the Interstate Compact on 
                the Placement of Children and an Administrator of the 
                Interstate Compact on Adoption and Medical Assistance.
                    (F) A representative cross-section of individuals 
                from other organizations and individuals with expertise 
                or advocacy experience in adoption and foster care 
                issues.
            (3) Contents of report.--The report required under 
        paragraph (1)(C) shall include the results of the study 
        conducted under subparagraphs (A) and (B) of paragraph (1) and 
        recommendations on how to improve procedures to facilitate the 
        interjurisdictional adoption of children, including interstate 
        and intercounty adoptions, so that children will be assured 
        timely and permanent placements.
            (4) Congress.--The Secretary shall submit a copy of the 
        report required under paragraph (1)(C) to the appropriate 
        committees of Congress, and, if relevant, make recommendations 
        for proposed legislation.

SEC. 205. FACILITATION OF VOLUNTARY MUTUAL REUNIONS BETWEEN ADOPTED 
              ADULTS AND BIRTH PARENTS AND SIBLINGS.

    The Secretary of Health and Human Services, at no net expense to 
the Federal Government, may use the facilities of the Department of 
Health and Human Services to facilitate the voluntary, mutually 
requested reunion of an adult adopted child who is 21 years of age or 
older with--
            (1) any birth parent of the adult child; or
            (2) any adult adopted sibling who is 21 years of age or 
        older, of the adult child,
if all such persons involved in any such reunion have, on their own 
initiative, expressed a desire for a reunion and agree to keep 
confidential the name and location of the other birth parent of the 
adult adopted child and any other adult adopted sibling of the adult 
adopted child.

SEC. 206. ANNUAL REPORT ON STATE PERFORMANCE IN PROTECTING CHILDREN.

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

``SEC. 479A. ANNUAL REPORT.

    ``(a) In General.--The Secretary shall issue an annual report 
containing ratings of the performance of each State in protecting 
children who are placed in foster care, for adoption, or with a 
relative or guardian. The report shall include ratings on outcome 
measures for categories related to safety and permanence for children.
    ``(b) Outcome Measures.--
            ``(1) In general.--The Secretary shall develop a set of 
        outcome measures to be used in preparing the report.
            ``(2) Categories.--In developing the outcome measures, the 
        Secretary shall develop measures that can track performance 
        over time for the following categories:
                    ``(A) The number of children placed annually for 
                adoption, the number of placements of children with 
                special needs, and the number of children placed 
                permanently in a foster family home, with a relative, 
                or with a guardian who is not a relative.
                    ``(B) The number of children, including those with 
                parental rights terminated, that annually leave foster 
                care at the age of majority without having been adopted 
                or placed with a guardian.
                    ``(C) The median and mean length of stay of 
                children in foster care, for children with parental 
                rights terminated, and children for whom parental 
                rights are retained by the biological or adoptive 
                parent.
                    ``(D) The median and mean length of time between a 
                child having a plan of adoption and termination of 
                parental rights, between the availability of a child 
                for adoption and the placement of the child in an 
                adoptive family, and between the placement of the child 
                in such a family and the finalization of the adoption.
                    ``(E) The number of deaths of children in foster 
                care and other out-of-home care, including kinship 
                care, resulting from substantiated child abuse and 
                neglect.
                    ``(F) The specific steps taken by the State to 
                facilitate permanence for children.
            ``(3) Measures.--In developing the outcome measures, the 
        Secretary shall use data from the Adoption and Foster Care 
        Analysis and Reporting System established under section 479 to 
        the maximum extent possible.
    ``(c) Rating System.--The Secretary shall develop a system 
(including using State census data and poverty rates) to rate the 
performance of each State based on the outcome measures.
    ``(d) Information.--In order to receive funds under this part, a 
State shall annually provide to the Secretary such adoption, foster 
care, and guardianship information as the Secretary may determine to be 
necessary to issue the report for the State.
    ``(e) Preparation and Issuance.--On October 1, 1998, and annually 
thereafter, the Secretary shall prepare, submit to Congress, and issue 
to the States the report described in subsection (a). Each report shall 
rate the performance of a State on each outcome measure developed under 
subsection (b), include an explanation of the rating system developed 
under subsection (c) and the way in which scores are determined under 
the rating system, analyze high and low performances for the State, and 
make recommendations to the State for improvement.''.
    (b) Conforming Amendments.--Section 471(a) of the Social Security 
Act (42 U.S.C. 671(a)), as amended by section 204(a), is amended--
            (1) in paragraph (22), by striking ``and'' at the end;
            (2) in paragraph (23), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(24) provides that the State shall annually provide to 
        the Secretary the information required under section 479A.''.

             TITLE III--ADDITIONAL IMPROVEMENTS AND REFORMS

SEC. 301. EXPANSION OF CHILD WELFARE DEMONSTRATION PROJECTS.

    Section 1130(a) of the Social Security Act (42 U.S.C. 1320a-9(a)) 
is amended by striking ``10'' and inserting ``15''.

SEC. 302. PERMANENCY PLANNING HEARINGS.

    Section 475(5)(C) of the Social Security Act (42 U.S.C. 675(5)(C)) 
is amended--
            (1) by striking ``dispositional'' and inserting 
        ``permanency planning'';
            (2) by striking ``no later than'' and all that follows 
        through ``12 months'' and inserting ``not later than 12 months 
        after the original placement (and not less frequently than 
        every 6 months''; and
            (3) by striking ``future status of'' and all that follows 
        through ``long term basis)'' and inserting ``permanency plans 
        for the child (including whether and, if applicable, when, the 
        child will be returned to the parent, referred for termination 
        of parental rights, placed for adoption, or referred for legal 
        guardianship, or other planned permanent living arrangement)''.

SEC. 303. KINSHIP CARE.

    (a) Report.--
            (1) In general.--The Secretary of Health and Human Services 
        shall--
                    (A) not later than March 1, 1998, convene the 
                advisory panel provided for in subsection (b)(1) and 
                prepare and submit to the advisory panel an initial 
                report on the extent to which children in foster care 
                are placed in the care of a relative (in this section 
                referred to as ``kinship care''); and
                    (B) not later than November 1, 1998, submit to the 
                Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of the 
                Senate a final report on the matter described in 
                subparagraph (A), which shall--
                            (i) be based on the comments submitted by 
                        the advisory panel pursuant to subsection 
                        (b)(2) and other information and 
                        considerations; and
                            (ii) include the policy recommendations of 
                        the Secretary with respect to the matter.
            (2) Required contents.--Each report required by paragraph 
        (1) shall--
                    (A) include, to the extent available for each 
                State, information on--
                            (i) the policy of the State regarding 
                        kinship care;
                            (ii) the characteristics of the kinship 
                        care providers (including age, income, 
                        ethnicity, and race);
                            (iii) the characteristics of the household 
                        of such providers (such as number of other 
                        persons in the household and family 
                        composition);
                            (iv) how much access to the child is 
                        afforded to the parent from whom the child has 
                        been removed;
                            (v) the cost of, and source of funds for, 
                        kinship care (including any subsidies such as 
                        medicaid and cash assistance);
                            (vi) the goal for a permanent living 
                        arrangement for the child and the actions being 
                        taken by the State to achieve the goal;
                            (vii) the services being provided to the 
                        parent from whom the child has been removed; 
                        and
                            (viii) the services being provided to the 
                        kinship care provider; and
                    (B) specifically note the circumstances or 
                conditions under which children enter kinship care.
    (b) Advisory Panel Review.--
            (1) In general.--The advisory board on child abuse and 
        neglect established under section 102 of the Child Abuse 
        Prevention and Treatment Act (42 U.S.C. 5102), or, if on the 
        date of enactment of this Act such advisory board does not 
        exist, the advisory panel authorized under paragraph (2), shall 
        review the report prepared pursuant to subsection (a) and 
        submit to the Secretary comments on the report not later than 
        July 1, 1998.
            (2) Authorization for appointments.--Subject to paragraph 
        (1), the Secretary of Health and Human Services, in 
        consultation with the Chairman of the Committee on Ways and 
        Means of the House of Representatives and the Chairman of the 
        Committee on Finance of the Senate, may appoint an advisory 
        board for the purpose of reviewing and commenting on the report 
        prepared pursuant to subsection (a). Such advisory board shall 
        include parents, foster parents, former foster children, State 
        and local public officials responsible for administering child 
        welfare programs, private persons involved in the delivery of 
        child welfare services, representatives of tribal governments 
        and tribal courts, judges, and academic experts.

SEC. 304. STANDBY GUARDIANSHIP.

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

SEC. 305. CLARIFICATION OF ELIGIBLE POPULATION FOR INDEPENDENT LIVING 
              SERVICES.

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

SEC. 306. COORDINATION AND COLLABORATION OF SUBSTANCE ABUSE TREATMENT 
              AND CHILD PROTECTION SERVICES.

    (a) Study and Report on Sources of Support for Substance Abuse 
Prevention and Treatment for Parents and Children and Collaboration 
Among State Agencies.--
            (1) Study.--Not later than 12 months after the date of the 
        enactment of this Act, the Comptroller General of the United 
        States shall--
                    (A) prepare an inventory of all Federal and State 
                programs that may provide funds for substance abuse 
                prevention and treatment services for families 
                receiving services directly or through grants or 
                contracts from public child welfare agencies; and
                    (B) examine--
                            (i) the availability and results of joint 
                        prevention and treatment activities conducted 
                        by State substance abuse prevention and 
                        treatment agencies and State child welfare 
                        agencies; and
                            (ii) how such agencies (jointly or 
                        separately) are responding to and addressing 
                        the needs of infants who are exposed to 
                        substance abuse.
            (2) Report to congress.--Not later than 18 months after the 
        date of enactment of this Act, the Comptroller General of the 
        United States shall submit to the appropriate committees of 
        Congress a report on the study conducted under paragraph (1). 
        Such report shall include--
                    (A) a description of the extent to which clients of 
                child welfare agencies have substance abuse treatment 
                needs, the nature of those needs, and the extent to 
                which those needs are being met;
                    (B) a description of the barriers that prevent the 
                substance abuse treatment needs of clients of child 
                welfare agencies from being treated appropriately;
                    (C) a description of the collaborative activities 
                of State child welfare and substance abuse prevention 
                and treatment agencies to jointly assess clients' 
                needs, fund substance abuse prevention and treatment, 
                train and consult with staff, and evaluate the 
                effectiveness of programs serving clients in both 
                agencies' caseloads;
                    (D) a summary of the available data on the 
                treatment and cost-effectiveness of substance abuse 
                treatment services for clients of child welfare 
                agencies; and
                    (E) recommendations, including recommendations for 
                Federal legislation, for addressing the needs and 
                barriers, as described in subparagraphs (A) and (B), 
                and for promoting further collaboration of the State 
                child welfare and substance abuse prevention and 
                treatment agencies in meeting the substance abuse 
                treatment needs of families.
    (b) Priority in Providing Substance Abuse Treatment.--Section 1927 
of the Public Health Service Act (42 U.S.C. 300x-27) is amended--
            (1) in the heading, by inserting ``and caretaker parents'' 
        after ``women''; and
            (2) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by inserting ``all caretaker parents 
                        who are referred for treatment by the State or 
                        local child welfare agency and who'' after 
                        ``referred for and''; and
                            (ii) by striking ``is given'' and inserting 
                        ``are given''; and
                    (B) in paragraph (2)--
                            (i) by striking ``such women'' and 
                        inserting ``such pregnant women and caretaker 
                        parents''; and
                            (ii) by striking ``the women'' and 
                        inserting ``the pregnant women and caretaker 
                        parents''.
    (c) Foster Care Payments for Children With Parents in Residential 
Facilities.--Section 472(b) of the Social Security Act (42 U.S.C. 
672(b)) is amended--
            (1) in paragraph (1), by striking ``or'' at the end;
            (2) in paragraph (2), by striking the period and inserting 
        ``, or''; and
            (3) by adding at the end the following:
            ``(3) placed with the child's parent in a residential 
        program that provides treatment and other necessary services 
        for parents and children, including parenting services, when--
                    ``(A) the parent is attempting to overcome--
                            ``(i) a substance abuse problem and is 
                        complying with an approved treatment plan;
                            ``(ii) being a victim of domestic violence;
                            ``(iii) homelessness;
                            ``(iv) special needs resulting from being a 
                        teenage parent; or
                            ``(v) post-partum depression;
                    ``(B) the safety of the child can be assured;
                    ``(C) the range of services provided by the program 
                is designed to appropriately address the needs of the 
                parent and child;
                    ``(D) the goal of the case plan for the child is to 
                try to reunify the child with the family within a 
                specified period of time;
                    ``(E) the parent described in subparagraph (A)(i) 
                has not previously been treated in a residential 
                program serving parents and their children together; 
                and
                    ``(F) the amount of foster care maintenance 
                payments made to the residential program on behalf of 
                such child do not exceed the amount of such payments 
                that would otherwise be made on behalf of the child.''.

SEC. 307. REAUTHORIZATION AND EXPANSION OF FAMILY PRESERVATION AND 
              SUPPORT SERVICES.

    (a) Reauthorization of Family Preservation and Support Services.--
            (1) In general.--Section 430(b) of the Social Security Act 
        (42 U.S.C. 629(b)) is amended--
                    (A) in paragraph (4), by striking ``or'' at the 
                end;
                    (B) in paragraph (5), by striking the period and 
                inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(6) for fiscal year 1999, $275,000,000;
            ``(7) for fiscal year 2000, $295,000,000;
            ``(8) for fiscal year 2001, $315,000,000;
            ``(9) for fiscal year 2002, $335,000,000; and
            ``(10) for fiscal year 2003, $355,000,000.''.
            (2) Conforming amendment.--Section 430(d)(1) of the Social 
        Security Act (42 U.S.C. 630(d)(1)) is amended by striking ``and 
        1998'' and inserting ``1998, 1999, 2000, 2001, 2002, and 
        2003''.
    (b) Expansion for Time-Limited Family Reunification Services.--
            (1) Addition to state plan; minimum spending requirement.--
        Section 432 of the Social Security Act (42 U.S.C. 629b) is 
        amended--
                    (A) in subsection (a)--
                            (i) in paragraph (4), by striking ``and 
                        community-based family support services with 
                        significant portions'' and inserting ``, 
                        community-based family support services, and 
                        time-limited family reunification services, 
                        with not less than 25 percent''; and
                            (ii) in paragraph (5)(A), by striking ``and 
                        community-based family support services'' and 
                        inserting ``, community-based family support 
                        services, and time-limited family reunification 
                        services''; and
                    (B) in subsection (b)(1), by striking ``and family 
                support'' and inserting ``, family support, and family 
                reunification services''.
            (2) Definition of time-limited family reunification 
        services.--Section 431(a) of the Social Security Act (42 U.S.C. 
        631(a)) is amended--
                    (A) by redesignating paragraphs (5) and (6) as 
                paragraphs (6) and (7), respectively; and
                    (B) by inserting after paragraph (4) the following:
            ``(5) Time-limited family reunification services.--
                    ``(A) In general.--The term `time-limited family 
                reunification services' means the services and 
                activities described in subparagraph (B) that are 
                provided to a child that is removed from the child's 
                home and placed in a foster family home or a child care 
                institution and to the parents or primary caregiver of 
                such a child, in order to facilitate the reunification 
                of the child safely and appropriately within a timely 
                fashion, but only during the 1-year period that begins 
                on the date that the child is removed from the child's 
                home.
                    ``(B) Services and activities described.--The 
                services and activities described in this subparagraph 
                are the following:
                            ``(i) Individual, group, and family 
                        counseling.
                            ``(ii) Inpatient, residential, or 
                        outpatient substance abuse treatment services.
                            ``(iii) Mental health services.
                            ``(iv) Assistance to address domestic 
                        violence.
                            ``(v) Transportation to or from any of the 
                        services and activities described in this 
                        subparagraph.''.
            (3) Additional conforming amendments.--
                    (A) Purposes.--Section 430(a) of the Social 
                Security Act (42 U.S.C. 629(a)) is amended by striking 
                ``and community-based family support services'' and 
                inserting ``, community-based family support services, 
                and time-limited family reunification services''.
                    (B) Evaluations.--Subparagraphs (B) and (C) of 
                section 435(a)(2) of the Social Security Act (42 U.S.C. 
                629d(a)(2)) are each amended by striking ``and family 
                support'' each place it appears and inserting ``, 
                family support, and family reunification''.

SEC. 308. INNOVATION GRANTS TO REDUCE BACKLOGS OF CHILDREN AWAITING 
              ADOPTION AND FOR OTHER PURPOSES.

    Part E of title IV of the Social Security Act (42 U.S.C. 670 et 
seq.) is amended by inserting after section 477, the following:

``SEC. 478. INNOVATION GRANTS.

    ``(a) Authority To Make Grants.--The Secretary may make grants, in 
amounts determined by the Secretary, to States with approved 
applications described in subsection (c), for the purpose of carrying 
out the innovation projects described in subsection (b).
    ``(b) Innovation Projects Described.--The innovation projects 
described in this subsection are projects that are designed to achieve 
1 or more of the following goals:
            ``(1) Reducing a backlog of children in long-term foster 
        care or awaiting adoption placement.
            ``(2) Ensuring, not later than 1 year after a child enters 
        foster care, a permanent placement for the child.
            ``(3) Identifying and addressing barriers that result in 
        delays to permanent placements for children in foster care, 
        including inadequate representation of child welfare agencies 
        in termination of parental rights and adoption proceedings, and 
        other barriers to termination of parental rights.
            ``(4) Implementing or expanding community-based permanency 
        initiatives, particularly in communities where families reflect 
        the ethnic and racial diversity of children in the State for 
        whom foster and adoptive homes are needed.
            ``(5) Developing and implementing community-based child 
        protection activities that involve partnerships among State and 
        local governments, multiple child-serving agencies, the 
        schools, and community leaders in an attempt to keep children 
        free from abuse and neglect.
            ``(6) Establishing new partnerships with businesses and 
        religious organizations to promote safety and permanence for 
        children.
            ``(7) Assisting in the development and implementation of 
        the State guidelines described in section 471(a)(10).
            ``(8) Developing new staffing approaches to allow the 
        resources of several States to be used to conduct recruitment, 
        placement, adoption, and post-adoption services on a regional 
        basis.
            ``(9) Any other goal that the Secretary specifies by 
        regulation.
    ``(c) Application.--An application for a grant under this section 
may be submitted for fiscal year 1998 or 1999 and shall contain--
            ``(1) a plan, in such form and manner as the Secretary may 
        prescribe, for an innovation project described in subsection 
        (b) that will be implemented by the State for a period of not 
        more than 5 consecutive fiscal years, beginning with fiscal 
        year 1998 or 1999, as applicable;
            ``(2) an assurance that no waivers from provisions in law, 
        as in effect at the time of the submission of the application, 
        are required to implement the innovation project; and
            ``(3) such other information as the Secretary may require 
        by regulation.
    ``(d) Duration.--An innovation project approved under this section 
shall be conducted for not more than 5 consecutive fiscal years, except 
that the Secretary may terminate a project before the end of the period 
originally approved if the Secretary determines that the State 
conducting the project is not in compliance with the terms of the plan 
and application approved by the Secretary under this section.
    ``(e) Matching Requirement.--A State shall not receive a grant 
under this section unless, for each year for which a grant is awarded, 
the State agrees to match the grant with $1 for every $3 received.
    ``(f) Nonsupplanting.--Any funds received by a State under a grant 
made under this section shall supplement but not replace any other 
funds that may be available for the same purpose in the localities 
involved.
    ``(g) Evaluations and Reports.--
            ``(1) State evaluations.--Each State administering an 
        innovation project under this section shall--
                    ``(A) provide for ongoing and retrospective 
                evaluation of the project, meeting such conditions and 
                standards as the Secretary may require; and
                    ``(B) submit to the Secretary such reports, at such 
                times, in such format, and containing such information 
                as the Secretary may require.
            ``(2) Reports to congress.--The Secretary shall, on the 
        basis of reports received from States administering projects 
        under this section, submit interim reports, and, not later than 
        6 months after the conclusion of all projects administered 
        under this section, a final report to Congress. A report 
        submitted under this subparagraph shall contain an assessment 
        of the effectiveness of the State projects administered under 
        this section and any recommendations for legislative action 
        that the Secretary considers appropriate.
    ``(h) Regulations.--Not later than 60 days after the date of 
enactment of this section, the Secretary shall promulgate final 
regulations for implementing this section.
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated to make grants under this section not more than 
$50,000,000 for each of fiscal years 1998 through 2003.''.

                        TITLE IV--MISCELLANEOUS

SEC. 401. PRESERVATION OF REASONABLE PARENTING.

    Nothing in this Act is intended to disrupt the family unnecessarily 
or to intrude inappropriately into family life, to prohibit the use of 
reasonable methods of parental discipline, or to prescribe a particular 
method of parenting.

SEC. 402. REPORTING REQUIREMENTS.

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

SEC. 403. REPORT ON FIDUCIARY OBLIGATIONS OF STATE AGENCIES RECEIVING 
              SSI PAYMENTS.

    Not later than 12 months after the date of enactment of this Act, 
the Commissioner of Social Security shall submit a report to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate concerning State or local child 
welfare service agencies that act as representative payees on behalf of 
children under the care of such agencies for purposes of receiving 
supplemental security income payments under title XVI of the Social 
Security Act (42 U.S.C. 1381 et seq.) (including supplementary payments 
pursuant to an agreement for Federal administration under section 
1616(a) of the Social Security Act and payments pursuant to an 
agreement entered into under section 212(b) of Public Law 93-66) for 
the benefit of such children. Such report shall include an examination 
of the extent to which such agencies--
            (1) have complied with the fiduciary responsibilities 
        attendant to acting as a representative payee under title XVI 
        of such Act; and
            (2) have received supplemental security income payments on 
        behalf of children that the agencies cannot identify or locate, 
        and if so, the disposition of such payments.

SEC. 404. ALLOCATION OF ADMINISTRATIVE COSTS OF DETERMINING ELIGIBILITY 
              FOR MEDICAID AND TANF.

    (a) Medicaid.--Section 1903 of the Social Security Act (42 U.S.C. 
1396b) is amended--
            (1) in subsection (a)(7), by striking ``section 
        1919(g)(3)(B)'' and inserting ``subsection (x) and section 
        1919(g)(3)(C)''; and
            (2) by adding at the end the following:
    ``(x)(1) Notwithstanding any other provision of law, for purposes 
of determining the amount to be paid to a State under subsection (a)(7) 
for quarters in any fiscal year, beginning with fiscal year 1997, 
amounts expended for the proper and efficient administration of the 
State plan under this title (including under any waiver of such plan) 
shall not include common costs related to determining the eligibility 
under such State plan (or waiver) of individuals in a household 
applying for or receiving benefits under the State program under part A 
of title IV unless the State elects the option described in paragraph 
(2).
    ``(2) A State that meets the requirements of paragraph (3) may 
elect to allocate equally between the State program under part A of 
title IV and the State plan under this title (including any waiver of 
such plan) the administrative costs associated with such programs that 
are incurred in serving households and individuals eligible or applying 
for benefits under the State program under part A of title IV and under 
the State plan (or under a waiver of such plan) under this title.
    ``(3) A State meets the requirements of this paragraph if the 
Secretary determines that--
            ``(A) the State conforms the eligibility rules and 
        procedures of, and integrates the administration of the 
        eligibility procedures of, the State program funded under part 
        A of title IV and the State plan under this title (including 
        any waiver of such plan); and
            ``(B) the State uses the same application form for 
        assistance described in section 1931(e).''.
    (b) TANF.--
            (1) In general.--Section 408(a) of the Social Security Act 
        (42 U.S.C. 608(a)) is amended by adding at the end the 
        following:
            ``(12) Designation of grants under this part in allocating 
        administrative costs.--Subject to section 1903(x), a State to 
        which a grant is made under section 403 shall designate the 
        program funded under this part as the primary program for the 
        purpose of allocating common administrative costs incurred in 
        serving households eligible or applying for benefits under such 
        program and any other Federal means-tested public benefit 
        program administered by the State.''.
            (2) Effective date.--The amendment made by paragraph (1) to 
        section 408 of the Social Security Act (42 U.S.C. 608) shall 
        take effect as if included in the enactment of section 103(a) 
        of the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
        2112).

                        TITLE V--EFFECTIVE DATE

SEC. 501. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, the 
amendments made by this Act shall take effect on October 1, 1997.
    (b) Delay Permitted if State Legislation Required.--In the case of 
a State plan under part B or E of title IV of the Social Security Act 
which the Secretary of Health and Human Services determines requires 
State legislation (other than legislation appropriating funds) in order 
for the plan to meet the additional requirements imposed by the 
amendments made by this Act, the State plan shall not be regarded as 
failing to comply with the requirements of such part solely on the 
basis of the failure of the plan to meet such additional requirements 
before the first day of the first calendar quarter beginning after the 
close of the first regular session of the State legislature that begins 
after the date of the enactment of this Act. For purposes of the 
previous sentence, in the case of a State that has a 2-year legislative 
session, each year of such session shall be deemed to be a separate 
regular session of the State legislature.
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