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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3038 Reported in Senate (RS)]

                                                       Calendar No. 972
110th CONGRESS
  2d Session
                                S. 3038

                          [Report No. 110-467]

 To amend part E of title IV of the Social Security Act to extend the 
    adoption incentives program, to authorize States to establish a 
relative guardianship program, to promote the adoption of children with 
                 special needs, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 20, 2008

 Mr. Grassley (for himself, Mr. Cochran, Mr. Rockefeller, Ms. Collins, 
 Mrs. Lincoln, Mr. Sununu, Mr. Dorgan, Mrs. Hutchison, Mr. Hatch, Mr. 
Coleman, Mr. Brown, Ms. Landrieu, Mr. Bayh, Mr. Johnson, Mr. Voinovich, 
   Mr. Pryor, Mr. Levin, and Mr. Nelson of Nebraska) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

                           September 16, 2008

               Reported by Mr. Baucus, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
 To amend part E of title IV of the Social Security Act to extend the 
    adoption incentives program, to authorize States to establish a 
relative guardianship program, to promote the adoption of children with 
                 special needs, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Improved 
Adoption Incentives and Relative Guardianship Support Act of 
2008''.</DELETED>
<DELETED>    (b) Table of Contents.--Table of contents for this Act is 
as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
   <DELETED>TITLE I--EXTENSION AND IMPROVEMENT OF ADOPTION INCENTIVES

<DELETED>Sec. 101. Extension of adoption incentives program.
<DELETED>Sec. 102. Promotion of adoption of children with special 
                            needs.
         <DELETED>TITLE II--SUPPORT FOR RELATIVE GUARDIANSHIPS

<DELETED>Sec. 201. Relative guardianship assistance payments for 
                            children.
                   <DELETED>TITLE III--MISCELLANEOUS

<DELETED>Sec. 301. Authority for comparisons and disclosures of 
                            information in the Federal Parent Locator 
                            Service for child welfare, foster care, and 
                            adoption assistance program purposes.

        <DELETED>TITLE I--EXTENSION AND IMPROVEMENT OF ADOPTION 
                          INCENTIVES</DELETED>

<DELETED>SEC. 101. EXTENSION OF ADOPTION INCENTIVES PROGRAM.</DELETED>

<DELETED>    (a) 5-Year Extension.--Section 473A of the Social Security 
Act (42 U.S.C. 673b) is amended--</DELETED>
        <DELETED>    (1) in subsection (b)(4), by striking ``in the 
        case of fiscal years 2001 through 2007,'';</DELETED>
        <DELETED>    (2) in subsection (b)(5), by striking ``1998 
        through 2007'' and inserting ``2008 through 2012'';</DELETED>
        <DELETED>    (3) in subsection (c)(2), by striking ``each of 
        fiscal years 2002 through 2007'' and inserting ``a fiscal 
        year''; and</DELETED>
        <DELETED>    (4) in each of subsections (h)(1)(D) and (h)(2), 
        by striking ``2008'' and inserting ``2013''.</DELETED>
<DELETED>    (b) Additional Incentive Payment for Exceeding the Highest 
Ever Foster Child Adoption Rate.--</DELETED>
        <DELETED>    (1) In general.--Section 473A(d) of such Act (42 
        U.S.C. 673b(b)(1)) is amended--</DELETED>
                <DELETED>    (A) in paragraph (1), in the matter 
                preceding subparagraph (A), by striking ``paragraph 
                (2)'' and inserting ``paragraphs (2) and 
                (3)'';</DELETED>
                <DELETED>    (B) in paragraph (2), by striking ``this 
                section'' each place it appears and inserting 
                ``paragraph (1)''; and</DELETED>
                <DELETED>    (C) by adding at the end the following new 
                paragraph:</DELETED>
        <DELETED>    ``(3) Increased incentive payment for exceeding 
        the highest ever foster child adoption rate.--</DELETED>
                <DELETED>    ``(A) In general.--If--</DELETED>
                        <DELETED>    ``(i) for fiscal year 2009 or any 
                        fiscal year thereafter the total amount of 
                        adoption incentive payments payable under 
                        paragraph (1) are less than the amount 
                        appropriated under subsection (h) for the 
                        fiscal year; and</DELETED>
                        <DELETED>    ``(ii) a State's foster child 
                        adoption rate for that fiscal year exceeds the 
                        highest ever foster child adoption rate 
                        determined for the State,</DELETED>
                <DELETED>then the adoption incentive payment otherwise 
                determined under paragraph (1) for the State shall be 
                increased, subject to subparagraph (C), by the amount 
                determined for the State under subparagraph 
                (B).</DELETED>
                <DELETED>    ``(B) Amount of increase.--For purposes of 
                subparagraph (A), the amount determined under this 
                subparagraph with respect to a State and a fiscal year 
                is the amount equal to the product of--</DELETED>
                        <DELETED>    ``(i) $1,000; and</DELETED>
                        <DELETED>    ``(ii) the excess of--</DELETED>
                                <DELETED>    ``(I) the number of foster 
                                child adoptions in the State in the 
                                fiscal year; over</DELETED>
                                <DELETED>    ``(II) the product 
                                (rounded to the nearest whole number) 
                                of--</DELETED>
                                        <DELETED>    ``(aa) the highest 
                                        ever foster child adoption rate 
                                        determined for the State; 
                                        and</DELETED>
                                        <DELETED>    ``(bb) the number 
                                        of children in foster care 
                                        under the supervision of the 
                                        State on the last day of the 
                                        preceding fiscal 
                                        year.</DELETED>
                <DELETED>    ``(C) Pro rata adjustment if insufficient 
                funds available.--For any fiscal year, if the total 
                amount of increases in adoption incentive payments 
                otherwise payable under this paragraph for a fiscal 
                year exceeds the amount available for such increases 
                for the fiscal year, the amount of the increase payable 
                to each State under this paragraph for the fiscal year 
                shall be--</DELETED>
                        <DELETED>    ``(i) the amount of the increase 
                        that would otherwise be payable to the State 
                        under this paragraph for the fiscal year; 
                        multiplied by</DELETED>
                        <DELETED>    ``(ii) the percentage represented 
                        by the amount so available for the fiscal year, 
                        divided by the total amount of increases 
                        otherwise payable under this paragraph for the 
                        fiscal year.''.</DELETED>
        <DELETED>    (2) Definitions.--Subsection (g) of section 473A 
        of such Act (42 U.S.C. 673b) is amended by adding at the end 
        the following:</DELETED>
        <DELETED>    ``(7) Highest ever foster child adoption rate.--
        The term `highest ever foster child adoption rate' means, with 
        respect to any fiscal year, the highest foster child adoption 
        rate determined for any fiscal year in the period that begins 
        with fiscal year 1998 and ends with the preceding fiscal 
        year.</DELETED>
        <DELETED>    ``(8) Foster child adoption rate.--The term 
        `foster child adoption rate' means, with respect to a State and 
        a fiscal year, the percentage determined by dividing--
        </DELETED>
                <DELETED>    ``(A) the number of foster child adoptions 
                finalized in the State during the fiscal year; 
                by</DELETED>
                <DELETED>    ``(B) the number of children in foster 
                care under the supervision of the State on the last day 
                of the preceding fiscal year.''.</DELETED>
        <DELETED>    (3) Conforming amendments.--</DELETED>
                <DELETED>    (A) State eligibility.--Section 473A(b)(2) 
                of such Act (42 U.S.C. 673b(b)(2)) is amended--
                </DELETED>
                        <DELETED>    (i) in subparagraph (A), by 
                        striking ``or'' at the end;</DELETED>
                        <DELETED>    (ii) in subparagraph (B), by 
                        striking the period at the end and inserting 
                        ``; or''; and</DELETED>
                        <DELETED>    (iii) by adding at the end the 
                        following:</DELETED>
        <DELETED>    ``(C) the State's foster child adoption rate for 
        the fiscal year exceeds the highest ever foster child adoption 
        rate determined for the State;''.</DELETED>
                <DELETED>    (B) Data.--Section 473A(c)(2) of such Act 
                (42 U.S.C. 673b(c)(2)), as amended by subsection 
                (a)(3), is amended by inserting ``, and the foster 
                child adoption rate for the State for the fiscal 
                year,'' after ``during a fiscal year,''.</DELETED>
<DELETED>    (c) Increase in Incentive Payments for Special Needs 
Adoptions and Older Child Adoptions.--Section 473A(d)(1) of such Act 
(42 U.S.C. 673b(d)(1)) is further amended--</DELETED>
        <DELETED>    (1) in subparagraph (C), as redesignated by 
        subsection (b), by striking ``$2,000'' and inserting 
        ``$3,000''; and</DELETED>
        <DELETED>    (2) in subparagraph (D), as so redesignated, by 
        striking ``$4,000'' and inserting ``$8,000''.</DELETED>
<DELETED>    (d) Updating of Fiscal Year Used in Determining Base 
Numbers of Adoptions.--Section 473A(g) of such Act (42 U.S.C. 673b(g)) 
is amended--</DELETED>
        <DELETED>    (1) in paragraph (3), by striking ``means'' and 
        all that follows and inserting ``means, with respect to any 
        fiscal year, the number of foster child adoptions in the State 
        in fiscal year 2007.'';</DELETED>
        <DELETED>    (2) in paragraph (4)--</DELETED>
                <DELETED>    (A) by inserting ``that are not older 
                child adoptions'' before ``for a State''; and</DELETED>
                <DELETED>    (B) by striking ``means'' and all that 
                follows and inserting ``means, with respect to any 
                fiscal year, the number of special needs adoptions that 
                are not older child adoptions in the State in fiscal 
                year 2007.''; and</DELETED>
        <DELETED>    (3) in paragraph (5), by striking ``means'' and 
        all that follows and inserting ``means, with respect to any 
        fiscal year, the number of older child adoptions in the State 
        in fiscal year 2007.''.</DELETED>
<DELETED>    (e) 24-Month Availability of Payments to States.--Section 
473A(e) of such Act (42 U.S.C. 673b(e)) is amended--</DELETED>
        <DELETED>    (1) in the subsection heading, by striking ``2-
        Year'' and inserting ``24-Month''; and</DELETED>
        <DELETED>    (2) by striking ``through the end of the 
        succeeding fiscal year'' and inserting ``for a period of 24 
        months beginning with the month in which the payments are 
        made''.</DELETED>

<DELETED>SEC. 102. PROMOTION OF ADOPTION OF CHILDREN WITH SPECIAL 
              NEEDS.</DELETED>

<DELETED>    (a) Elimination of Eligibility Based on AFDC and SSI 
Income Standards.--Section 473(a)(2) of the Social Security Act (42 
U.S.C. 673(a)(2)) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (A), by striking clauses (i) 
        and (ii) and inserting the following:</DELETED>
        <DELETED>    ``(i)(I) at the time of termination of parental 
        rights was in the care of a public or licensed private child 
        placement agency or Indian tribal organization pursuant to a 
        voluntary placement agreement, relinquishment, or involuntary 
        removal of the child from the home, and the State has 
        determined, pursuant to criteria established by the State 
        (which may, but need not, include a judicial determination), 
        that continuation in the home would be contrary to the safety 
        or welfare of such child;</DELETED>
        <DELETED>    ``(II) meets all medical or disability 
        requirements of title XVI with respect to eligibility for 
        supplemental security income benefits; or</DELETED>
        <DELETED>    ``(III) was residing in a foster family home or 
        child care institution with the child's minor parent, provided 
        that the child's minor parent was in such foster family home or 
        child care institution pursuant to a voluntary placement 
        agreement, relinquishment, or involuntary removal of the child 
        from the home, and the State has determined, pursuant to 
        criteria established by the State (which may, but need not, 
        include judicial determination), that continuation in the home 
        would be contrary to the safety or welfare of such child; 
        and</DELETED>
        <DELETED>    ``(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.''; 
        and</DELETED>
        <DELETED>    (2) by striking subparagraph (C) and inserting the 
        following:</DELETED>
<DELETED>    ``(C) A child who meets the requirements of subparagraph 
(A), who was determined eligible for adoption assistance payments under 
this part with respect to a prior adoption (or who would have been 
determined eligible for such payments had the Adoption and Safe 
Families Act of 1997 been in effect at the time that such determination 
would have been made), and who is available for adoption because the 
prior adoption has been dissolved and the parental rights of the 
adoptive parents have been terminated or because the child's adoptive 
parents have died, shall be treated as meeting the requirements of this 
paragraph for purposes of paragraph (1)(B)(ii).''.</DELETED>
<DELETED>    (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:</DELETED>
<DELETED>    ``(7)(A) Notwithstanding any other provision of this 
subsection, no payment may be made to parents with respect to any child 
that--</DELETED>
        <DELETED>    ``(i) would be considered a child with special 
        needs under subsection (c);</DELETED>
        <DELETED>    ``(ii) is not a citizen or resident of the United 
        States; and</DELETED>
        <DELETED>    ``(iii) was adopted outside of the United States 
        or was brought into the United States for the purpose of being 
        adopted.</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (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:</DELETED>
<DELETED>    ``(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 
amendments to such paragraph made by section 102(a) of the Improved 
Adoption Incentives and Relative Guardianship Support Act of 2008 to 
provide to children or families any service (including post-adoption 
services) that may be provided under this part or part B.''.</DELETED>
<DELETED>    (d) Determination of a Child With Special Needs.--Section 
473(c) of the Social Security Act (42 U.S.C. 673(c)) is amended to read 
as follows:</DELETED>
<DELETED>    ``(c) For purposes of this section, a child shall not be 
considered a child with special needs unless--</DELETED>
        <DELETED>    ``(1) the State has determined, pursuant to a 
        criteria established by the State (which may or may not include 
        a judicial determination), that the child cannot or should not 
        be returned to the home of his parents; and</DELETED>
        <DELETED>    ``(2) the State has determined--</DELETED>
                <DELETED>    ``(A) that there exists with respect to 
                the child a specific factor or condition (such as 
                ethnic background, age, or membership in a minority or 
                sibling group, or the presence of factors such as 
                medical conditions or physical, mental, or emotional 
                handicaps) because of which it is reasonable to 
                conclude that the child cannot be placed with adoptive 
                parents without providing adoption assistance under 
                this section and medical assistance under title XIX; 
                and</DELETED>
                <DELETED>    ``(B) that except where it would be 
                against the best interests of the child because of such 
                factors as the existence of significant emotional ties 
                with prospective adoptive parents while in the care of 
                such parents as a foster child, a reasonable, but 
                unsuccessful, effort has been made to place the child 
                with appropriate adoptive parents without providing 
                adoption assistance under this section or medical 
                assistance under title XIX.</DELETED>
        <DELETED>A child who meets all medical or disability 
        requirements of title XVI with respect to eligibility for 
        supplemental security income benefits shall be deemed to be a 
        child for whom the determination required by subparagraph (A) 
        of paragraph (2) has been made.''.</DELETED>
<DELETED>    (e) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2008, and shall apply to adoption 
assistance agreements executed on or after that date.</DELETED>

    <DELETED>TITLE II--SUPPORT FOR RELATIVE GUARDIANSHIPS</DELETED>

SEC. 201. RELATIVE GUARDIANSHIP ASSISTANCE PAYMENTS FOR CHILDREN.

<DELETED>    (a) Option for States To Enhance and Subsidize a Relative 
Guardianship Program.--</DELETED>
        <DELETED>    (1) State plan amendment.--Section 471(a)(1) of 
        the Social Security Act (42 U.S.C. 671(a)(1)) is amended--
        </DELETED>
                <DELETED>    (A) by inserting ``(A)'' after 
                ``provides'';</DELETED>
                <DELETED>    (B) by adding ``and'' after the semicolon; 
                and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(B) at the option of the State, provides for 
        relative guardianship assistance payments in accordance with 
        subsection (d) of section 473;''.</DELETED>
<DELETED>    (b) Requirements.--Section 473 of such Act (42 U.S.C. 673) 
is amended by adding at the end the following:</DELETED>
<DELETED>    ``(d) Relative Guardianship Assistance Payments for 
Children.--</DELETED>
        <DELETED>    ``(1) Relative guardianship assistance 
        agreement.--</DELETED>
                <DELETED>    ``(A) In general.--In order to receive 
                payments under section 474(a)(5), a State shall--
                </DELETED>
                        <DELETED>    ``(i) negotiate and enter into a 
                        written, binding relative guardianship 
                        assistance agreement with the relative guardian 
                        of a child who meets the requirements of 
                        paragraph (3)(B);</DELETED>
                        <DELETED>    ``(ii) provide the relative 
                        guardian with a copy of the agreement; 
                        and</DELETED>
                        <DELETED>    ``(iii) certify that any child on 
                        whose behalf relative guardianship assistance 
                        payments are made under the agreement shall be 
                        provided medical assistance under title XIX in 
                        accordance with section 
                        1902(a)(10)(A)(i)(I).</DELETED>
                <DELETED>    ``(B) Minimum requirements.--The agreement 
                shall specify, at a minimum--</DELETED>
                        <DELETED>    ``(i) the amount of, and manner in 
                        which, each relative guardianship assistance 
                        payment will be provided under the 
                        agreement;</DELETED>
                        <DELETED>    ``(ii) the additional services and 
                        assistance that the child and relative guardian 
                        will be eligible for under the 
                        agreement;</DELETED>
                        <DELETED>    ``(iii) the procedure by which the 
                        relative guardian may apply for additional 
                        services as needed, provided the agency and 
                        relative guardian agree on the additional 
                        services as specified in the agreement; 
                        and</DELETED>
                        <DELETED>    ``(iv) that the State will pay up 
                        to $2,000 of nonrecurring expenses associated 
                        with obtaining legal guardianship of the 
                        child.</DELETED>
                <DELETED>    ``(C) Interstate application.--The 
                agreement shall provide that the agreement shall remain 
                in effect without regard to the State residency of the 
                relative guardian.</DELETED>
                <DELETED>    ``(D) Federal reimbursement of 
                nonrecurring expenses.--A State's payment of 
                nonrecurring guardianship expenses under a relative 
                guardianship assistance agreement in accordance with 
                subparagraph (B)(iv) shall be treated as a direct 
                expenditure made for the proper and efficient 
                administration of the State plan for purposes of 
                section 474(a)(3)(E).</DELETED>
        <DELETED>    ``(2) Relative guardianship assistance payment.--
        </DELETED>
                <DELETED>    ``(A) In general.--Subject to 
                subparagraphs (B) and (C), the relative guardianship 
                assistance payment shall be based on consideration of 
                the circumstances of the relative guardian and the 
                needs of the child.</DELETED>
                <DELETED>    ``(B) Minimum and maximum payment.--A 
                relative guardianship assistance payment shall not be 
                less than the adoption assistance payment the State 
                would have made on behalf of the child under an 
                adoption assistance agreement entered into under 
                subsection (a) and shall not exceed the foster care 
                maintenance payment which would have been paid if the 
                child had remained in a foster family home.</DELETED>
                <DELETED>    ``(C) Periodic adjustments.--A relative 
                guardianship assistance payment may be readjusted 
                periodically, with the concurrence of the relative 
                guardian (which may be specified in the relative 
                guardianship assistance agreement), depending upon 
                changes in the circumstances of the relative guardian 
                and the needs of the child.</DELETED>
                <DELETED>    ``(D) Limitation.--No relative 
                guardianship assistance payment may be made to a 
                relative guardian for any child who has attained 18 
                years of age.</DELETED>
        <DELETED>    ``(3) Child's eligibility for a relative 
        guardianship assistance payment.--</DELETED>
                <DELETED>    ``(A) In general.--A child is eligible for 
                a relative guardianship assistance payment under this 
                subsection if the State agency determines the 
                following:</DELETED>
                        <DELETED>    ``(i) The child--</DELETED>
                                <DELETED>    ``(I) has been removed 
                                from his or her home pursuant to a 
                                voluntary placement agreement or as a 
                                result of a judicial determination to 
                                the effect that continuation in the 
                                home would be contrary to the welfare 
                                of the child; and</DELETED>
                                <DELETED>    ``(II) in the month prior 
                                to the establishment of the legal 
                                guardianship, is eligible for foster 
                                care maintenance payments under section 
                                472.</DELETED>
                        <DELETED>    ``(ii) Being returned home or 
                        adopted are not appropriate permanency options 
                        for the child.</DELETED>
                        <DELETED>    ``(iii) The child demonstrates a 
                        strong attachment to the relative guardian and 
                        the relative guardian has a strong commitment 
                        to caring permanently for the child.</DELETED>
                        <DELETED>    ``(iv) The relative guardian 
                        satisfies the requirements of subparagraph 
                        (B).</DELETED>
                        <DELETED>    ``(v) With respect to a child who 
                        has attained 14 years of age, the child has 
                        been consulted regarding the relative 
                        guardianship arrangement.</DELETED>
                <DELETED>    ``(B) Requirements for relative 
                guardians.--A relative guardian satisfies the 
                requirements of this subparagraph if the relative--
                </DELETED>
                        <DELETED>    ``(i) is the grandparent or other 
                        relative of a child on whose behalf relative 
                        guardianship assistance payments are to be 
                        made;</DELETED>
                        <DELETED>    ``(ii) has satisfied the 
                        background checks required under section 
                        471(a)(20);</DELETED>
                        <DELETED>    ``(iii) has met the State's 
                        requirements established under section 
                        471(a)(10) to be a foster family home; 
                        and</DELETED>
                        <DELETED>    ``(iv) assumes legal guardianship 
                        of such child and commits to caring for the 
                        child on a permanent basis.</DELETED>
                <DELETED>    ``(C) Treatment of siblings.--With respect 
                to a child described in subparagraph (A) whose sibling 
                or siblings are not so described--</DELETED>
                        <DELETED>    ``(i) the child and any sibling of 
                        the child shall be placed in the same relative 
                        guardianship arrangement unless it can be 
                        demonstrated that it is inappropriate to do so; 
                        and</DELETED>
                        <DELETED>    ``(ii) relative guardianship 
                        assistance payments may be paid for the child 
                        and each sibling so placed.''.</DELETED>
<DELETED>    (c) Payments to States.--</DELETED>
        <DELETED>    (1) In general.--Section 474(a) of such Act (42 
        U.S.C. 674(a)) is amended--</DELETED>
                <DELETED>    (A) in paragraph (3)(B), by striking 
                ``foster or adoptive parents and the members of the 
                staff of State-licensed or State-approved child care 
                institutions providing care to foster and adopted 
                children receiving assistance under this part, in ways 
                that increase the ability of such current or 
                prospective parents, staff members, and institutions to 
                provide support and assistance to foster and adopted 
                children,'' and inserting ``foster parents, adoptive 
                parents, or relative guardians and the members of the 
                staff of State-licensed or State-approved child care 
                institutions providing care to foster children, 
                adoptive children, or children living with a relative 
                guardian, who are receiving assistance under this part, 
                in ways that increase the ability of such current or 
                prospective parents, relative guardians, staff members, 
                and institutions to provide support and assistance to 
                foster children, adoptive children, or children living 
                with a relative guardian,'';</DELETED>
                <DELETED>    (B) in paragraph (4)(B), by striking the 
                period at the end and inserting ``; plus''; 
                and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(5) an amount equal to the Federal medical 
        assistance percentage (as defined in section 1905(b)) of the 
        total amount expended during such quarter as relative 
        guardianship assistance payments under section 473(d) pursuant 
        to relative guardianship assistance agreements.''.</DELETED>
        <DELETED>    (2) Incentive payments for relative guardianship 
        placement.--</DELETED>
                <DELETED>    (A) In general.--Section 473A of the 
                Social Security Act (42 U.S.C. 673b) is amended by 
                adding at the end the following:</DELETED>
<DELETED>    ``(j) Incentive Payments for Relative Guardianship 
Placements.--</DELETED>
        <DELETED>    ``(1) Use of unawarded adoption incentive funds to 
        make relative guardianship incentive payments.--If in any 
        fiscal year the total amount of adoption incentive payments 
        payable under subsection (d) are less than the amount 
        appropriated under subsection (h) for the fiscal year, States 
        that have established a relative guardianship assistance 
        program under section 471(a)(1)(B) shall be awarded, in 
        addition to any adoption incentive payments made to such States 
        under subsection (d), relative guardianship incentive payments 
        from the portion of such amount that is in excess of the total 
        amount of adoption incentive payments to be made under such 
        subsection for such fiscal year.</DELETED>
        <DELETED>    ``(2) Payment amount.--Subject to paragraph (3), 
        the relative guardianship incentive payment payable to a State 
        for a fiscal year under this subsection shall be equal to--
        </DELETED>
                <DELETED>    ``(A) in the case of the first fiscal year 
                in which the State establishes a relative guardianship 
                assistance program under section 471(a)(1)(B), the 
                product of $1,000 and the number of relative 
                guardianship assistance agreements entered into under 
                section 473(d) in the State during that fiscal year; 
                and</DELETED>
                <DELETED>    ``(B) in the case of any succeeding fiscal 
                year, the product of $1,000 and the amount (if any) by 
                which the number of relative guardianship assistance 
                agreements entered into under section 473(d) in the 
                State for the fiscal year exceed the base number of 
                relative guardianship assistance agreements in the 
                State for the fiscal year.</DELETED>
        <DELETED>    ``(3) Pro rata adjustment if insufficient funds 
        available.--For any fiscal year, if the total amount of 
        relative guardianship incentive payments otherwise payable 
        under this subsection for a fiscal year exceeds the amount 
        available for such payments for the fiscal year, the amount of 
        the relative guardianship incentive payment payable to each 
        State under this subsection for the fiscal year shall be--
        </DELETED>
                <DELETED>    ``(A) the amount of the relative 
                guardianship incentive payment that would otherwise be 
                payable to the State under this subsection for the 
                fiscal year; multiplied by</DELETED>
                <DELETED>    ``(B) the percentage represented by the 
                amount so available for the fiscal year, divided by the 
                total amount of relative guardianship incentive 
                payments otherwise payable under this section for the 
                fiscal year.''.</DELETED>
                <DELETED>    (B) Definition of base number of relative 
                guardianship assistance agreements.--Subsection (g) of 
                section 473A of such Act (42 U.S.C. 673b), as amended 
                by section 101(b)(2), is amended by adding at the end 
                the following:</DELETED>
        <DELETED>    ``(9) Base number of relative guardianship 
        assistance agreements.--The term `base number of relative 
        guardianship assistance agreements' means, with respect to a 
        fiscal year, the number of relative guardianship assistance 
        agreements entered into under section 473(d) in the State in 
        the fiscal year for which the number is the greatest in the 
        period that begins with the first fiscal year in which the 
        State establishes a relative guardianship assistance program 
        under section 471(a)(1)(B) and ends with the preceding fiscal 
        year.''.</DELETED>
                <DELETED>    (C) Conforming amendment.--Subsection (f) 
                of section 473A of such Act (42 U.S.C. 673b) is amended 
                by inserting ``and relative navigator and support 
                services'' after ``post-adoption services''.</DELETED>
<DELETED>    (d) Maintaining Eligibility for Adoption Assistance 
Program.--Section 473(a) of the Social Security Act (42 U.S.C. 673(a)), 
as amended by subsections (b) and (c) of section 102, is amended by 
adding at the end the following:</DELETED>
<DELETED>    ``(9) A child on whose behalf relative guardianship 
assistance payments have been made under section 473(d) and who 
pursuant to subsection (c) has been determined to be a child with 
special needs, shall be eligible for adoption assistance as if no 
relative guardianship agreement or payments had been made. The State 
shall make payments of nonrecurring adoption expenses under this 
section to the adoptive parents of such a child.''.</DELETED>
<DELETED>    (e) Eligibility for Independent Living Services and 
Education and Training Vouchers for Children Who Exit Foster Care for 
Relative Guardianship or Adoption After Age 16.--</DELETED>
        <DELETED>    (1) Independent living services.--Section 477(a) 
        of such Act (42 U.S.C. 677(a)) is amended--</DELETED>
                <DELETED>    (A) by striking ``and'' at the end of 
                paragraph (5);</DELETED>
                <DELETED>    (B) by striking the period at the end of 
                paragraph (6) and inserting ``; and''; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(7) to provide the services referred to in this 
        subsection to children who, after attaining 16 years of age, 
        have left foster care for relative guardianship or 
        adoption.''.</DELETED>
        <DELETED>    (2) Education and training vouchers.--Section 
        477(i)(2) of such Act (42 U.S.C. 677(i)(2)) is amended by 
        striking ``from foster care after attaining age 16'' and 
        inserting ``or entering relative guardianship from foster care 
        after attaining 16 years of age''.</DELETED>
<DELETED>    (f) Notice Requirements.--</DELETED>
        <DELETED>    (1) IV-E state plan requirements.--</DELETED>
                <DELETED>    (A) Notice to relatives.--Section 
                471(a)(19) of such Act (42 U.S.C. 671(a)(19)) is 
                amended--</DELETED>
                        <DELETED>    (i) by striking ``that the State'' 
                        and inserting ``that--</DELETED>
                <DELETED>    ``(A) the State''; and</DELETED>
                        <DELETED>    (ii) by adding at the end the 
                        following:</DELETED>
                <DELETED>    ``(B) within 60 days of the removal of the 
                child from the custody of the child's parent or 
                parents, the State shall exercise due diligence to 
                identify and provide notice to all adult grandparents 
                and other adult relatives of the child (including any 
                other adult relatives suggested by the parents), 
                subject to exceptions due to family or domestic 
                violence, that--</DELETED>
                        <DELETED>    ``(i) specifies that the child has 
                        been or is being removed from the custody of 
                        the child's parent or parents;</DELETED>
                        <DELETED>    ``(ii) explains the options the 
                        relative has under Federal, State, and local 
                        law to participate in the child's care and 
                        placement, including any options that may be 
                        lost by failing to respond to the 
                        notice;</DELETED>
                        <DELETED>    ``(iii) describes the requirements 
                        under section 471(a)(10) to become a foster 
                        family home and the additional services and 
                        supports that are available for children placed 
                        in such a home; and</DELETED>
                        <DELETED>    ``(iv) if the State has elected 
                        the option to make relative guardianship 
                        assistance payments under paragraph (1)(B), 
                        describes how the relative may enter into an 
                        agreement with the State under section 473(d) 
                        to receive such payments; and</DELETED>
                <DELETED>    ``(C) with respect to any minor child 
                (excluding minor heads of households and their spouses) 
                receiving assistance under the State program funded 
                under part A (or under a State program funded with 
                qualified State expenditures (as defined in section 
                409(a)(7)(B)(i))) who is in the care of a nonparent 
                caretaker relative as a result of interaction with the 
                State agency responsible for administering the program 
                authorized under this part, and who does not have a 
                parent in the home, the State shall provide the 
                nonparent caretaker relative with notice that--
                </DELETED>
                        <DELETED>    ``(i) explains the options the 
                        relative has under Federal, State, and local 
                        law to participate in the child's care and 
                        placement, including any options that may be 
                        lost by failing to respond to the 
                        notice;</DELETED>
                        <DELETED>    ``(ii) describes the requirements 
                        under section 471(a)(10) to become a foster 
                        family home and the additional services and 
                        supports that are available for children placed 
                        in such a home; and</DELETED>
                        <DELETED>    ``(iii) if the State has elected 
                        the option to make relative guardianship 
                        assistance payments under paragraph (1)(B), 
                        describes how the relative may enter into an 
                        agreement under section 473(d) with the State 
                        to receive such payments;''.</DELETED>
                <DELETED>    (B) Information on adoption tax credit.--
                Section 471(a) of such Act (42 U.S.C. 671(a)) is 
                amended--</DELETED>
                        <DELETED>    (i) by striking ``and'' at the end 
                        of paragraph (26);</DELETED>
                        <DELETED>    (ii) by striking the period at the 
                        end of paragraph (27) and inserting ``; and''; 
                        and</DELETED>
                        <DELETED>    (iii) by adding at the end the 
                        following:</DELETED>
        <DELETED>    ``(28) 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) without the need to document any 
        adoption-related expenses.''.</DELETED>
        <DELETED>    (2) TANF penalty for failure to provide notice.--
        Section 409(a) of such Act (42 U.S.C. 609(a)) is amended by 
        adding at the end the following:</DELETED>
        <DELETED>    ``(16) Penalty for noncompliance with notice 
        requirements for relatives under part e.--</DELETED>
                <DELETED>    ``(A) In general.--If the Secretary 
                determines that a State to which a grant is made under 
                section 403 in a fiscal year has not exercised the due 
                diligence required under section 471(a)(19)(C) during 
                the fiscal year, the Secretary shall reduce the grant 
                payable to the State under section 403(a)(1) for the 
                immediately succeeding fiscal year by an amount equal 
                to not less than 1 percent and not more than 5 percent 
                of the State family assistance grant.</DELETED>
                <DELETED>    ``(B) Penalty based on severity of 
                failure.--The Secretary shall impose reductions under 
                subparagraph (A) with respect to a fiscal year based on 
                the degree of noncompliance.''.</DELETED>
<DELETED>    (g) Case Plan Requirements.--Section 475(1) of such Act 
(42 U.S.C. 675(1)) is amended by adding at the end the 
following:</DELETED>
                <DELETED>    ``(F) In the case of a child with respect 
                to whom the permanency plan is placement with a 
                relative and receipt of relative guardianship 
                assistance payments under section 473(d), a description 
                of--</DELETED>
                        <DELETED>    ``(i) the steps that the agency 
                        has taken to determine that it is not 
                        appropriate for the child to be returned home 
                        or adopted;</DELETED>
                        <DELETED>    ``(ii) the reasons why a permanent 
                        placement with a fit and willing relative 
                        through a relative guardianship assistance 
                        arrangement is in the child's best 
                        interests;</DELETED>
                        <DELETED>    ``(iii) the ways in which the 
                        child meets the eligibility requirements for a 
                        relative guardianship assistance 
                        payment;</DELETED>
                        <DELETED>    ``(iv) the efforts the agency has 
                        made to discuss adoption by the child's 
                        relative guardian who is to receive such 
                        payments as a more permanent alternative to 
                        legal guardianship and, in the case of such a 
                        relative guardian who has chosen not to pursue 
                        adoption, documentation of the reasons 
                        therefor; and</DELETED>
                        <DELETED>    ``(v) the efforts made by the 
                        State agency to secure the consent of the 
                        child's parent or parents to the relative 
                        guardianship assistance arrangement, or the 
                        reasons why the efforts were not 
                        made.''.</DELETED>
<DELETED>    (h) Requirement To Conduct Criminal Records and Child 
Abuse and Neglect Registry Checks.--Section 471(a)(20) of such Act (42 
U.S.C. 671(a)(20)) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (A), in the matter preceding 
        clause (i) by striking ``foster or adoptive parent before the 
        foster or adoptive parent may be finally approved for placement 
        of a child on whose behalf foster care maintenance payments or 
        adoption assistance payments'' and inserting ``foster parent, 
        adoptive parent, or relative guardian before the foster parent, 
        adoptive parent, or relative guardian may be finally approved 
        for placement of a child on whose behalf foster care 
        maintenance payments, adoption assistance payments, or relative 
        guardianship assistance payments''; and</DELETED>
        <DELETED>    (2) in subparagraph (B)(i) (as redesignated by 
        section 152(b)(2) of Public Law 109-248), by striking 
        ``prospective foster or adoptive parent and on any other adult 
        living in the home'' and all that follows through ``adoption 
        assistance payments'' and inserting ``prospective foster 
        parent, adoptive parent, or relative guardian and on any other 
        adult living in the home of such a prospective parent or 
        relative guardian, and request any other State in which any 
        such prospective parent, relative guardian, or other adult has 
        resided in the preceding 5 years, to enable the State to check 
        any child abuse and neglect registry maintained by such other 
        State for such information, before the prospective foster 
        parent, adoptive parent, or relative may be finally approved 
        for placement of a child, regardless of whether foster care 
        maintenance payments, adoption assistance payments, or relative 
        guardianship assistance payments''.</DELETED>
<DELETED>    (i) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2008, and shall apply to relative 
guardianship agreements executed on or after that date.</DELETED>

              <DELETED>TITLE III--MISCELLANEOUS</DELETED>

<DELETED>SEC. 301. AUTHORITY FOR COMPARISONS AND DISCLOSURES OF 
              INFORMATION IN THE FEDERAL PARENT LOCATOR SERVICE FOR 
              CHILD WELFARE, FOSTER CARE, AND ADOPTION ASSISTANCE 
              PROGRAM PURPOSES.</DELETED>

<DELETED>    Section 453(j)(3) of such Act (42 U.S.C. 653(j)(3)) is 
amended, in the matter preceding subparagraph (A), by inserting ``, 
part B, part E,'' after ``this part''.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Improved Adoption 
Incentives and Relative Guardianship Support Act of 2008''.
    (b) Table of Contents.--Table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

       TITLE I--EXTENSION AND IMPROVEMENT OF ADOPTION INCENTIVES

Sec. 101. Extension of adoption incentives program.
Sec. 102. Promotion of adoption of children with special needs.

              TITLE II--SUPPORT FOR RELATIVE GUARDIANSHIPS

Sec. 201. Relative guardianship assistance payments for children.
Sec. 202. Demonstration projects regarding licensing of immediate 
                            relative foster parents.
Sec. 203. Grants to carry out kinship navigator programs.
Sec. 204. Authority for comparisons and disclosures of information in 
                            the Federal Parent Locator Service for 
                            child welfare, foster care, and adoption 
                            assistance program purposes.

           TITLE III--TRIBAL FOSTER CARE AND ADOPTION ACCESS

Sec. 301. Equitable access for foster care and adoption services for 
                            Indian children in tribal areas.
Sec. 302. Grants to States that successfully collaborate with and 
                            support Tribes to improve permanency 
                            outcomes for Indian children.
Sec. 303. Establishment of National Child Welfare Resource Center for 
                            Tribes.

     TITLE IV--SUPPORT FOR OLDER CHILDREN IN FOSTER CARE AND OTHER 
                               PROVISIONS

Sec. 401. State option for children in foster care, and certain 
                            children in an adoptive or guardianship 
                            placement, after attaining age 18.
Sec. 402. Transition plan for children aging out of foster care.
Sec. 403. Educational stability.

                      TITLE V--REVENUE PROVISIONS

Sec. 501. Clarification of uniform definition of child.
Sec. 502. Collection of unemployment compensation debts resulting from 
                            fraud.
Sec. 503. Investment of operating cash.

       TITLE I--EXTENSION AND IMPROVEMENT OF ADOPTION INCENTIVES

SEC. 101. EXTENSION OF ADOPTION INCENTIVES PROGRAM.

    (a) 5-Year Extension.--Section 473A of the Social Security Act (42 
U.S.C. 673b) is amended--
            (1) in subsection (b)(4), by striking ``in the case of 
        fiscal years 2001 through 2007,'';
            (2) in subsection (b)(5), by striking ``1998 through 2007'' 
        and inserting ``2008 through 2012'';
            (3) in subsection (c)(2), by striking ``each of fiscal 
        years 2002 through 2007'' and inserting ``a fiscal year''; and
            (4) in each of subsections (h)(1)(D) and (h)(2), by 
        striking ``2008'' and inserting ``2013''.
    (b) Additional Incentive Payment for Exceeding the Highest Ever 
Foster Child Adoption Rate.--
            (1) In general.--Section 473A(d) of such Act (42 U.S.C. 
        673b(b)(1)) is amended--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``paragraph (2)'' and 
                inserting ``paragraphs (2) and (3)'';
                    (B) in paragraph (2), by striking ``this section'' 
                each place it appears and inserting ``paragraph (1)''; 
                and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) Increased incentive payment for exceeding the highest 
        ever foster child adoption rate.--
                    ``(A) In general.--If--
                            ``(i) for fiscal year 2009 or any fiscal 
                        year thereafter the total amount of adoption 
                        incentive payments payable under paragraph (1) 
                        are less than the amount appropriated under 
                        subsection (h) for the fiscal year; and
                            ``(ii) a State's foster child adoption rate 
                        for that fiscal year exceeds the highest ever 
                        foster child adoption rate determined for the 
                        State,
                then the adoption incentive payment otherwise 
                determined under paragraph (1) for the State shall be 
                increased, subject to subparagraph (C), by the amount 
                determined for the State under subparagraph (B).
                    ``(B) Amount of increase.--For purposes of 
                subparagraph (A), the amount determined under this 
                subparagraph with respect to a State and a fiscal year 
                is the amount equal to the product of--
                            ``(i) $1,000; and
                            ``(ii) the excess of--
                                    ``(I) the number of foster child 
                                adoptions in the State in the fiscal 
                                year; over
                                    ``(II) the product (rounded to the 
                                nearest whole number) of--
                                            ``(aa) the highest ever 
                                        foster child adoption rate 
                                        determined for the State; and
                                            ``(bb) the number of 
                                        children in foster care under 
                                        the supervision of the State on 
                                        the last day of the preceding 
                                        fiscal year.
                    ``(C) Pro rata adjustment if insufficient funds 
                available.--For any fiscal year, if the total amount of 
                increases in adoption incentive payments otherwise 
                payable under this paragraph for a fiscal year exceeds 
                the amount available for such increases for the fiscal 
                year, the amount of the increase payable to each State 
                under this paragraph for the fiscal year shall be--
                            ``(i) the amount of the increase that would 
                        otherwise be payable to the State under this 
                        paragraph for the fiscal year; multiplied by
                            ``(ii) the percentage represented by the 
                        amount so available for the fiscal year, 
                        divided by the total amount of increases 
                        otherwise payable under this paragraph for the 
                        fiscal year.''.
            (2) Definitions.--Subsection (g) of section 473A of such 
        Act (42 U.S.C. 673b) is amended by adding at the end the 
        following:
            ``(7) Highest ever foster child adoption rate.--The term 
        `highest ever foster child adoption rate' means, with respect 
        to any fiscal year, the highest foster child adoption rate 
        determined for any fiscal year in the period that begins with 
        fiscal year 1998 and ends with the preceding fiscal year.
            ``(8) Foster child adoption rate.--The term `foster child 
        adoption rate' means, with respect to a State and a fiscal 
        year, the percentage determined by dividing--
                    ``(A) the number of foster child adoptions 
                finalized in the State during the fiscal year; by
                    ``(B) the number of children in foster care under 
                the supervision of the State on the last day of the 
                preceding fiscal year.''.
            (3) Conforming amendments.--
                    (A) State eligibility.--Section 473A(b)(2) of such 
                Act (42 U.S.C. 673b(b)(2)) is amended--
                            (i) in subparagraph (A), by striking ``or'' 
                        at the end;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
            ``(C) the State's foster child adoption rate for the fiscal 
        year exceeds the highest ever foster child adoption rate 
        determined for the State;''.
                    (B) Data.--Section 473A(c)(2) of such Act (42 
                U.S.C. 673b(c)(2)), as amended by subsection (a)(3), is 
                amended by inserting ``, and the foster child adoption 
                rate for the State for the fiscal year,'' after 
                ``during a fiscal year,''.
    (c) Increase in Incentive Payments for Special Needs Adoptions and 
Older Child Adoptions.--Section 473A(d)(1) of such Act (42 U.S.C. 
673b(d)(1)) is further amended--
            (1) in subparagraph (B), by striking ``$2,000'' and 
        inserting ``$3,000''; and
            (2) in subparagraph (C), by striking ``$4,000'' and 
        inserting ``$8,000''.
    (d) Updating of Fiscal Year Used in Determining Base Numbers of 
Adoptions.--Section 473A(g) of such Act (42 U.S.C. 673b(g)) is 
amended--
            (1) in paragraph (3), by striking ``means'' and all that 
        follows and inserting ``means, with respect to any fiscal year, 
        the number of foster child adoptions in the State in fiscal 
        year 2007.'';
            (2) in paragraph (4)--
                    (A) by inserting ``that are not older child 
                adoptions'' before ``for a State''; and
                    (B) by striking ``means'' and all that follows and 
                inserting ``means, with respect to any fiscal year, the 
                number of special needs adoptions that are not older 
                child adoptions in the State in fiscal year 2007.''; 
                and
            (3) in paragraph (5), by striking ``means'' and all that 
        follows and inserting ``means, with respect to any fiscal year, 
        the number of older child adoptions in the State in fiscal year 
        2007.''.
    (e) 24-Month Availability of Payments to States.--Section 473A(e) 
of such Act (42 U.S.C. 673b(e)) is amended--
            (1) in the subsection heading, by striking ``2-Year'' and 
        inserting ``24-Month''; and
            (2) by striking ``through the end of the succeeding fiscal 
        year'' and inserting ``for a period of 24 months beginning with 
        the month in which the payments are made''.

SEC. 102. PROMOTION OF ADOPTION OF CHILDREN WITH SPECIAL NEEDS.

    (a) Elimination of Eligibility Based on AFDC and SSI Income 
Standards.--Section 473(a)(2) of the Social Security Act (42 U.S.C. 
673(a)(2)) is amended--
            (1) in subparagraph (A), by striking clauses (i) and (ii) 
        and inserting the following:
            ``(i)(I) at the time of termination of parental rights was 
        in the care of a public or licensed private child placement 
        agency or Indian tribal organization pursuant to a voluntary 
        placement agreement, relinquishment, or involuntary removal of 
        the child from the home, and the State has determined, pursuant 
        to criterion or criteria established by the State (which may, 
        but need not, include a judicial determination), that 
        continuation in the home would be contrary to the safety or 
        welfare of such child;
            ``(II) meets all medical or disability requirements of 
        title XVI with respect to eligibility for supplemental security 
        income benefits; or
            ``(III) was residing in a foster family home or child care 
        institution with the child's minor parent, provided that the 
        child's minor parent was in such foster family home or child 
        care institution pursuant to a voluntary placement agreement, 
        relinquishment, or involuntary removal of the child from the 
        home, and the State has determined, pursuant to criterion or 
        criteria established by the State (which may, but need not, 
        include judicial determination), that continuation in the home 
        would be contrary to the safety or welfare of such child; and
            ``(ii) has been determined by the State, pursuant to 
        subsection (c), to be a child with special needs.''; and
            (2) by striking subparagraph (C) and inserting the 
        following:
    ``(C) A child who meets the requirements of subparagraph (A)(ii), 
who was determined eligible for adoption assistance payments under this 
part with respect to a prior adoption (or who would have been 
determined eligible for such payments had the Adoption and Safe 
Families Act of 1997 been in effect at the time that such determination 
would have been made), and who is available for adoption because the 
prior adoption has been dissolved and the parental rights of the 
adoptive parents have been terminated or because the child's adoptive 
parents have died, shall be treated as meeting the requirements of this 
paragraph for purposes of paragraph (1)(B)(ii).''.
    (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 
amendments to such paragraph made by section 102(a) of the Improved 
Adoption Incentives and Relative Guardianship Support Act of 2008 to 
provide to children or families any service (including post-adoption 
services) that may be provided under this part or part B.''.
    (d) Determination of a Child With Special Needs.--Section 473(c) of 
the Social Security Act (42 U.S.C. 673(c)) is amended to read as 
follows:
    ``(c) For purposes of this section, a child shall not be considered 
a child with special needs unless--
            ``(1) the State has determined, pursuant to a criterion or 
        criteria established by the State (which may, but need not, 
        include a judicial determination), that the child cannot or 
        should not be returned to the home of his parents; and
            ``(2) the State has determined--
                    ``(A) that there exists with respect to the child a 
                specific factor or condition (such as ethnic 
                background, age, or membership in a minority or sibling 
                group, or the presence of factors such as medical 
                conditions or physical, mental, or emotional handicaps) 
                because of which it is reasonable to conclude that the 
                child cannot be placed with adoptive parents without 
                providing adoption assistance under this section and 
                medical assistance under title XIX; and
                    ``(B) that except where it would be against the 
                best interests of the child because of such factors as 
                the existence of significant emotional ties with 
                prospective adoptive parents while in the care of such 
                parents as a foster child, a reasonable, but 
                unsuccessful, effort has been made to place the child 
                with appropriate adoptive parents without providing 
                adoption assistance under this section or medical 
                assistance under title XIX.
        A child who meets all medical or disability requirements of 
        title XVI with respect to eligibility for supplemental security 
        income benefits shall be deemed to be a child for whom the 
        determination required by subparagraph (A) of paragraph (2) has 
        been made.''.
    (e) Effective Date.--
            (1) In general.--Subject to paragraph (2), the amendments 
        made by this section shall apply to adoption assistance 
        agreements entered into on or after October 1, 2012.
            (2) Earlier phased-in application on the basis of age.--In 
        the case of any adoption assistance agreement entered into on 
        or after--
                    (A) October 1, 2010, the amendments made by this 
                section shall apply to the agreement if the child on 
                whose behalf the agreement is entered into has attained 
                age 12 on or before the date on which the agreement is 
                executed; and
                    (B) October 1, 2011, the amendments made by this 
                section shall apply to the agreement if the child on 
                whose behalf the agreement is entered into has attained 
                age 6 on or before the date on which the agreement is 
                executed.

              TITLE II--SUPPORT FOR RELATIVE GUARDIANSHIPS

SEC. 201. RELATIVE GUARDIANSHIP ASSISTANCE PAYMENTS FOR CHILDREN.

    (a) Option for States To Enhance and Subsidize a Relative 
Guardianship Program.--
            (1) State plan amendment.--Section 471(a)(1) of the Social 
        Security Act (42 U.S.C. 671(a)(1)) is amended--
                    (A) by inserting ``(A)'' after ``provides'';
                    (B) by adding ``and'' after the semicolon; and
                    (C) by adding at the end the following:
            ``(B) at the option of the State, provides for relative 
        guardianship assistance payments in accordance with subsection 
        (d) of section 473;''.
    (b) Requirements.--Section 473 of such Act (42 U.S.C. 673) is 
amended by adding at the end the following:
    ``(d) Relative Guardianship Assistance Payments for Children.--
            ``(1) Relative guardianship assistance agreement.--
                    ``(A) In general.--In order to receive payments 
                under section 474(a)(5), a State shall--
                            ``(i) negotiate and enter into a written, 
                        binding relative guardianship assistance 
                        agreement with the relative guardian of a child 
                        who meets the requirements of paragraph (3)(B); 
                        and
                            ``(ii) provide the relative guardian with a 
                        copy of the agreement.
                    ``(B) Minimum requirements.--The agreement shall 
                specify, at a minimum--
                            ``(i) the amount of, and manner in which, 
                        each relative guardianship assistance payment 
                        will be provided under the agreement;
                            ``(ii) the additional services and 
                        assistance that the child and relative guardian 
                        will be eligible for under the agreement;
                            ``(iii) the procedure by which the relative 
                        guardian may apply for additional services as 
                        needed, provided the agency and relative 
                        guardian agree on the additional services as 
                        specified in the agreement; and
                            ``(iv) that the State will pay up to $2,000 
                        of nonrecurring expenses associated with 
                        obtaining legal guardianship of the child.
                    ``(C) Interstate application.--The agreement shall 
                provide that the agreement shall remain in effect 
                without regard to the State residency of the relative 
                guardian.
                    ``(D) Federal reimbursement of nonrecurring 
                expenses.--A State's payment of nonrecurring 
                guardianship expenses under a relative guardianship 
                assistance agreement in accordance with subparagraph 
                (B)(iv) shall be treated as a direct expenditure made 
                for the proper and efficient administration of the 
                State plan for purposes of section 474(a)(3)(E).
            ``(2) Relative guardianship assistance payment.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), the relative guardianship assistance payment shall 
                be based on consideration of the circumstances of the 
                relative guardian and the needs of the child.
                    ``(B) Minimum and maximum payment.--A relative 
                guardianship assistance payment shall not be less than 
                the adoption assistance payment the State would have 
                made on behalf of the child under an adoption 
                assistance agreement entered into under subsection (a) 
                and shall not exceed the foster care maintenance 
                payment which would have been paid if the child had 
                remained in a foster family home.
                    ``(C) Periodic adjustments.--A relative 
                guardianship assistance payment may be readjusted 
                periodically, with the concurrence of the relative 
                guardian (which may be specified in the relative 
                guardianship assistance agreement), depending upon 
                changes in the circumstances of the relative guardian 
                and the needs of the child.
            ``(3) Child's eligibility for a relative guardianship 
        assistance payment.--
                    ``(A) In general.--A child is eligible for a 
                relative guardianship assistance payment under this 
                subsection if the State agency determines the 
                following:
                            ``(i) The child--
                                    ``(I) has been removed from his or 
                                her home pursuant to a voluntary 
                                placement agreement or as a result of a 
                                judicial determination to the effect 
                                that continuation in the home would be 
                                contrary to the welfare of the child; 
                                and
                                    ``(II) in the month prior to the 
                                establishment of the legal 
                                guardianship, is eligible for foster 
                                care maintenance payments under section 
                                472.
                            ``(ii)(I) Being returned home or adopted 
                        are not appropriate permanency options for the 
                        child.
                            ``(II) In the case of a child who has been 
                        removed from the home for reasons primarily 
                        associated with parental substance abuse and 
                        addiction, attempts to engage the family in 
                        residential, comprehensive family treatment 
                        programs are inappropriate or have been 
                        unsuccessful or such programs are unavailable.
                            ``(iii) The child demonstrates a strong 
                        attachment to the relative guardian and the 
                        relative guardian has a strong commitment to 
                        caring permanently for the child.
                            ``(iv) The relative guardian satisfies the 
                        requirements of subparagraph (B).
                            ``(v) With respect to a child who has 
                        attained 14 years of age, the child has been 
                        consulted regarding the relative guardianship 
                        arrangement.
                    ``(B) Requirements for relative guardians.--A 
                relative guardian satisfies the requirements of this 
                subparagraph if the relative--
                            ``(i) is the grandparent or other relative 
                        of a child on whose behalf relative 
                        guardianship assistance payments are to be 
                        made;
                            ``(ii) has satisfied the background checks 
                        required under section 471(a)(20);
                            ``(iii) has met the State's requirements 
                        established under section 471(a)(10) to be a 
                        foster family home; and
                            ``(iv) assumes legal guardianship of such 
                        child and commits to caring for the child on a 
                        permanent basis.
                    ``(C) Treatment of siblings.--With respect to a 
                child described in subparagraph (A) whose sibling or 
                siblings are not so described--
                            ``(i) the child and any sibling of the 
                        child shall be placed in the same relative 
                        guardianship arrangement unless it can be 
                        demonstrated that it is inappropriate to do so; 
                        and
                            ``(ii) relative guardianship assistance 
                        payments may be paid for the child and each 
                        sibling so placed.''.
    (c) Payments to States.--
            (1) In general.--Section 474(a) of such Act (42 U.S.C. 
        674(a)) is amended--
                    (A) in paragraph (3)(B), by striking ``foster or 
                adoptive parents and the members of the staff of State-
                licensed or State-approved child care institutions 
                providing care to foster and adopted children receiving 
                assistance under this part, in ways that increase the 
                ability of such current or prospective parents, staff 
                members, and institutions to provide support and 
                assistance to foster and adopted children,'' and 
                inserting ``foster parents, adoptive parents, or 
                relative guardians and the members of the staff of 
                State-licensed or State-approved child care 
                institutions providing care to foster children, 
                adoptive children, or children living with a relative 
                guardian, who are receiving assistance under this part, 
                in ways that increase the ability of such current or 
                prospective parents, relative guardians, staff members, 
                and institutions to provide support and assistance to 
                foster children, adoptive children, or children living 
                with a relative guardian,'';
                    (B) in paragraph (4)(B), by striking the period at 
                the end and inserting ``; plus''; and
                    (C) by adding at the end the following:
            ``(5) an amount equal to the Federal medical assistance 
        percentage (as defined in section 1905(b)) of the total amount 
        expended during such quarter as relative guardianship 
        assistance payments under section 473(d) pursuant to relative 
        guardianship assistance agreements.''.
            (2) Incentive payments for relative guardianship 
        placement.--
                    (A) In general.--Section 473A of the Social 
                Security Act (42 U.S.C. 673b) is amended by adding at 
                the end the following:
    ``(j) Incentive Payments for Relative Guardianship Placements.--
            ``(1) Use of unawarded adoption incentive funds to make 
        relative guardianship incentive payments.--If in any fiscal 
        year the total amount of adoption incentive payments payable 
        under subsection (d) are less than the amount appropriated 
        under subsection (h) for the fiscal year, States that have 
        established a relative guardianship assistance program under 
        section 471(a)(1)(B) shall be awarded, in addition to any 
        adoption incentive payments made to such States under 
        subsection (d), relative guardianship incentive payments from 
        the portion of such amount that is in excess of the total 
        amount of adoption incentive payments to be made under such 
        subsection for such fiscal year.
            ``(2) Payment amount.--Subject to paragraph (3), the 
        relative guardianship incentive payment payable to a State for 
        a fiscal year under this subsection shall be equal to--
                    ``(A) in the case of the first fiscal year in which 
                the State establishes a relative guardianship 
                assistance program under section 471(a)(1)(B), the 
                product of $1,000 and the number of relative 
                guardianship assistance agreements entered into under 
                section 473(d) in the State during that fiscal year; 
                and
                    ``(B) in the case of any succeeding fiscal year, 
                the product of $1,000 and the amount (if any) by which 
                the number of relative guardianship assistance 
                agreements entered into under section 473(d) in the 
                State for the fiscal year exceed the base number of 
                relative guardianship assistance agreements in the 
                State for the fiscal year.
            ``(3) Pro rata adjustment if insufficient funds 
        available.--For any fiscal year, if the total amount of 
        relative guardianship incentive payments otherwise payable 
        under this subsection for a fiscal year exceeds the amount 
        available for such payments for the fiscal year, the amount of 
        the relative guardianship incentive payment payable to each 
        State under this subsection for the fiscal year shall be--
                    ``(A) the amount of the relative guardianship 
                incentive payment that would otherwise be payable to 
                the State under this subsection for the fiscal year; 
                multiplied by
                    ``(B) the percentage represented by the amount so 
                available for the fiscal year, divided by the total 
                amount of relative guardianship incentive payments 
                otherwise payable under this section for the fiscal 
                year.''.
                    (B) Definition of base number of relative 
                guardianship assistance agreements.--Subsection (g) of 
                section 473A of such Act (42 U.S.C. 673b), as amended 
                by section 101(b)(2), is amended by adding at the end 
                the following:
            ``(9) Base number of relative guardianship assistance 
        agreements.--The term `base number of relative guardianship 
        assistance agreements' means, with respect to a fiscal year, 
        the number of relative guardianship assistance agreements 
        entered into under section 473(d) in the State in the fiscal 
        year for which the number is the greatest in the period that 
        begins with the first fiscal year in which the State 
        establishes a relative guardianship assistance program under 
        section 471(a)(1)(B) and ends with the preceding fiscal 
        year.''.
                    (C) Conforming amendment.--Subsection (f) of 
                section 473A of such Act (42 U.S.C. 673b) is amended by 
                inserting ``and relative navigator and support 
                services'' after ``post-adoption services''.
    (d) Maintaining Eligibility for Adoption Assistance Program and 
Title XIX.--Section 473 of the Social Security Act (42 U.S.C. 673) is 
amended--
            (1) in subsection (a), as amended by subsections (b) and 
        (c) of section 102, by adding at the end the following:
    ``(9) A child on whose behalf relative guardianship assistance 
payments have been made under section 473(d) and who pursuant to 
subsection (c) has been determined to be a child with special needs, 
shall be eligible for adoption assistance as if no relative 
guardianship assistance agreement or payments had been made. The State 
shall make payments of nonrecurring adoption expenses under this 
section to the adoptive parents of such a child.''; and
            (2) in subsection (b)(3)--
                    (A) in subparagraph (A)(ii), by striking ``or'' at 
                the end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``, or''; and
                    (C) by adding at the end the following:
            ``(C) with respect to whom relative guardianship assistance 
        payments are being made under subsection (d).''.
    (e) Eligibility for Independent Living Services and Education and 
Training Vouchers for Children Who Exit Foster Care for Relative 
Guardianship or Adoption After Age 16.--
            (1) Independent living services.--Section 477(a) of such 
        Act (42 U.S.C. 677(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (5);
                    (B) by striking the period at the end of paragraph 
                (6) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(7) to provide the services referred to in this 
        subsection to children who, after attaining 16 years of age, 
        have left foster care for relative guardianship or adoption.''.
            (2) Education and training vouchers.--Section 477(i)(2) of 
        such Act (42 U.S.C. 677(i)(2)) is amended by striking ``from 
        foster care after attaining age 16'' and inserting ``or 
        entering relative guardianship from foster care after attaining 
        16 years of age''.
    (f) Notice Requirements.--
            (1) IV-E state plan requirements.--
                    (A) Notice to relatives.--Section 471(a)(19) of 
                such Act (42 U.S.C. 671(a)(19)) is amended--
                            (i) by striking ``that the State'' and 
                        inserting ``that--
                    ``(A) the State''; and
                            (ii) by adding at the end the following:
                    ``(B) within 60 days of the removal of the child 
                from the custody of the child's parent or parents, the 
                State shall exercise due diligence to identify and 
                provide notice to all adult grandparents and other 
                adult relatives of the child (including any other adult 
                relatives suggested by the parents), subject to 
                exceptions due to family or domestic violence, that--
                            ``(i) specifies that the child has been or 
                        is being removed from the custody of the 
                        child's parent or parents;
                            ``(ii) explains the options the relative 
                        has under Federal, State, and local law to 
                        participate in the child's care and placement, 
                        including any options that may be lost by 
                        failing to respond to the notice;
                            ``(iii) describes the requirements under 
                        paragraph (10) to become a foster family home 
                        and the additional services and supports that 
                        are available for children placed in such a 
                        home; and
                            ``(iv) if the State has elected the option 
                        to make relative guardianship assistance 
                        payments under paragraph (1)(B), describes how 
                        the relative may enter into an agreement with 
                        the State under section 473(d) to receive such 
                        payments; and
                    ``(C) with respect to any minor child (excluding 
                minor heads of households and their spouses) receiving 
                assistance under the State program funded under part A 
                (or under a State program funded with qualified State 
                expenditures (as defined in section 409(a)(7)(B)(i))) 
                who is in the care of a nonparent caretaker relative as 
                a result of interaction with the State agency 
                responsible for administering the program authorized 
                under this part, and who does not have a parent in the 
                home, the State shall provide the nonparent caretaker 
                relative with notice that--
                            ``(i) explains the options the relative has 
                        under Federal, State, and local law to 
                        participate in the child's care and placement, 
                        including any options that may be lost by 
                        failing to respond to the notice;
                            ``(ii) describes the requirements under 
                        section 471(a)(10) to become a foster family 
                        home and the additional services and supports 
                        that are available for children placed in such 
                        a home; and
                            ``(iii) if the State has elected the option 
                        to make relative guardianship assistance 
                        payments under paragraph (1)(B), describes how 
                        the relative may enter into an agreement under 
                        section 473(d) with the State to receive such 
                        payments;''.
                    (B) Information on adoption tax credit.--Section 
                471(a) of such Act (42 U.S.C. 671(a)) is amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (26);
                            (ii) by striking the period at the end of 
                        paragraph (27) and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(28) 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 (without the need to document any 
        adoption-related expenses, in the case of the adoption of a 
        child with special needs (as defined in section 23(d)(3) of 
        such Code)).''.
            (2) TANF penalty for failure to provide notice.--Section 
        409(a) of such Act (42 U.S.C. 609(a)) is amended by adding at 
        the end the following:
            ``(16) Penalty for noncompliance with notice requirements 
        for relatives under part e.--
                    ``(A) In general.--If the Secretary determines that 
                a State to which a grant is made under section 403 in a 
                fiscal year has not exercised the due diligence 
                required under section 471(a)(19)(C) during the fiscal 
                year, the Secretary shall reduce the grant payable to 
                the State under section 403(a)(1) for the immediately 
                succeeding fiscal year by an amount equal to not less 
                than 1 percent and not more than 3.5 percent of the 
                State family assistance grant.
                    ``(B) Penalty based on severity of failure.--The 
                Secretary shall impose reductions under subparagraph 
                (A) with respect to a fiscal year based on the degree 
                of noncompliance.''.
    (g) Case Plan Requirements.--Section 475(1) of such Act (42 U.S.C. 
675(1)) is amended by adding at the end the following:
                    ``(F) In the case of a child with respect to whom 
                the permanency plan is placement with a relative and 
                receipt of relative guardianship assistance payments 
                under section 473(d), a description of--
                            ``(i) the steps that the agency has taken 
                        to determine that it is not appropriate for the 
                        child to be returned home or adopted;
                            ``(ii) the reasons why a permanent 
                        placement with a fit and willing relative 
                        through a relative guardianship assistance 
                        arrangement is in the child's best interests;
                            ``(iii) the ways in which the child meets 
                        the eligibility requirements for a relative 
                        guardianship assistance payment;
                            ``(iv) the efforts the agency has made to 
                        discuss adoption by the child's relative 
                        guardian who is to receive such payments as a 
                        more permanent alternative to legal 
                        guardianship and, in the case of such a 
                        relative guardian who has chosen not to pursue 
                        adoption, documentation of the reasons 
                        therefor; and
                            ``(v) the efforts made by the State agency 
                        to secure the consent of the child's parent or 
                        parents to the relative guardianship assistance 
                        arrangement, or the reasons why the efforts 
                        were not made.''.
    (h) Requirement To Conduct Criminal Records and Child Abuse and 
Neglect Registry Checks.--Section 471(a)(20) of such Act (42 U.S.C. 
671(a)(20)) is amended--
            (1) in subparagraph (A), in the matter preceding clause (i) 
        by striking ``foster or adoptive parent before the foster or 
        adoptive parent may be finally approved for placement of a 
        child regardless of whether foster care maintenance payments or 
        adoption assistance payments'' and inserting ``foster parent, 
        adoptive parent, or relative guardian before the foster parent, 
        adoptive parent, or relative guardian may be finally approved 
        for placement of a child regardless of whether foster care 
        maintenance payments, adoption assistance payments, or relative 
        guardianship assistance payments''; and
            (2) in subparagraph (B)(i) (as redesignated by section 
        152(b)(2) of Public Law 109-248), by striking ``prospective 
        foster or adoptive parent and on any other adult living in the 
        home'' and all that follows through ``adoption assistance 
        payments'' and inserting ``prospective foster parent, adoptive 
        parent, or relative guardian and on any other adult living in 
        the home of such a prospective parent or relative guardian, and 
        request any other State in which any such prospective parent, 
        relative guardian, or other adult has resided in the preceding 
        5 years, to enable the State to check any child abuse and 
        neglect registry maintained by such other State for such 
        information, before the prospective foster parent, adoptive 
        parent, or relative may be finally approved for placement of a 
        child, regardless of whether foster care maintenance payments, 
        adoption assistance payments, or relative guardianship 
        assistance payments''.
    (i) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2008, and shall apply to relative guardianship 
assistance agreements executed on or after that date.

SEC. 202. DEMONSTRATION PROJECTS REGARDING LICENSING OF IMMEDIATE 
              RELATIVE FOSTER PARENTS.

    Title XI of the Social Security Act (42 U.S.C. 1301 et seq.) is 
amended by inserting after section 1130A the following:

``SEC. 1130B. DEMONSTRATION PROJECTS REGARDING LICENSING OF IMMEDIATE 
              RELATIVE FOSTER PARENTS.

    ``(a) Definitions.--In this section:
            ``(1) Children in foster care.--The term `children in 
        foster care' means children who are placed in foster family 
        homes receiving funds under part B or E of title IV.
            ``(2) Demonstration projects.--The term `demonstration 
        projects' means the projects conducted under this section.
            ``(3) Directly funded tribal iv-e program.--The term 
        `directly funded tribal IV-E program' means a program 
        established under section 479B by an Indian tribe, tribal 
        organization, or tribal consortium (as defined in subsection 
        (a) of such section).
            ``(4) Immediate relative foster parent.--The term 
        `immediate relative foster parent' means, with respect to a 
        child in foster care, a foster parent of the child who is an 
        adult sibling, grandparent, aunt, or uncle of the child.
            ``(5) State.--The term `State' means any of the 50 States 
        or the District of Columbia with a State plan approved under 
        section 471(a).
    ``(b) Establishment.--The Secretary shall establish not more than 
10 demonstration projects to determine the extent to which flexibility 
in the application of certain licensing standards to foster family 
homes of immediate relative foster parents results in improved well-
being and permanency outcomes for children in foster care.
    ``(c) Requirements.--
            ``(1) Number of projects.--Of the demonstration projects 
        conducted under this section, at least--
                    ``(A) 2 projects shall be conducted in States with 
                a large number of rural areas, as determined by the 
                Secretary;
                    ``(B) 1 project shall be conducted in a State in 
                which the State plan under this part is administered by 
                a political subdivision of the State; and
                    ``(C) 1 project shall be conducted by a directly 
                funded tribal IV-E program.
            ``(2) Application to certain licensing standards.--For 
        purposes of placing a child in foster care in the home of an 
        immediate relative foster parent of the child, and determining 
        whether the home satisfies standards established by a State or 
        directly funded tribal IV-E program for purposes of complying 
        with section 471(a)(10), a State or directly funded tribal IV-E 
        program selected to conduct a demonstration project under this 
        section may modify the extent to which the home is required to 
        comply with any or all of the following standards in order to 
        be a licensed foster family home for the child:
                    ``(A) Standards relating to the number or size of 
                bedrooms in the home, but only if the State or tribal 
                program applies appropriate safeguards for age and 
                gender.
                    ``(B) Standards relating to the number of bathrooms 
                in the home, but only if the State or tribal program 
                applies appropriate safeguards for age and gender.
                    ``(C) Standards relating to overall square footage 
                of the home.
            ``(3) Implementation; duration.--The demonstration projects 
        shall--
                    ``(A) begin not later than 1 year after the date of 
                enactment of this section; and
                    ``(B) be conducted for a 2-year period.
    ``(d) Report.--Not later than 1 year after the date on which the 
projects are completed, the Secretary shall submit to the Committee on 
Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate a report that--
            ``(1) evaluates, with respect to each State or directly 
        funded tribal IV-E program conducting a project, the impact of 
        the projects on the well-being of children in foster care and 
        the extent to which the projects result in improved permanency 
        outcomes for children in foster care, based on the past 
        performance of the State (or, in the case of a directly funded 
        tribal IV-E program, based on the past performance of each 
        State in which the program is conducted); and
            ``(2) includes such recommendations for administrative or 
        legislative action as the Secretary determines appropriate.''.

SEC. 203. GRANTS TO CARRY OUT KINSHIP NAVIGATOR PROGRAMS.

    (a) In General.--Part B of title IV of the Social Security Act (42 
U.S.C. 620-629i) is amended by inserting after section 426 the 
following:

``SEC. 427. GRANTS TO CARRY OUT KINSHIP NAVIGATOR PROGRAMS.

    ``(a) Purpose.--The purposes of this section are--
            ``(1) to establish kinship navigator programs in States, 
        large metropolitan areas, and tribal areas to assist kinship 
        caregivers in navigating their way through programs and 
        services, to help the caregivers learn about and obtain 
        assistance to meet the needs of the children they are raising 
        and their own needs; and
            ``(2) to promote effective partnerships among public and 
        private agencies, including community-based and faith-based 
        agencies, to help the agencies described in this paragraph more 
        effectively and efficiently serve kinship care families and 
        address the fragmentation that creates barriers to meeting the 
        needs of those families.
    ``(b) Definitions.--In this section:
            ``(1) Assistant secretary.--The term `Assistant Secretary' 
        means the Assistant Secretary for Children and Families of the 
        Department of Health and Human Services.
            ``(2) Large metropolitan area.--The term `large 
        metropolitan area' means a metropolitan statistical area, as 
        defined by the Bureau of the Census, with a population of not 
        less than 1,000,000.
            ``(3) Metropolitan agency.--The term `metropolitan agency' 
        means an agency serving a large metropolitan area, or a county 
        or political subdivision of a large metropolitan area.
            ``(4) Tribal area.--The term `tribal area' means the area 
        served by a tribal organization.
            ``(5) Tribal organization.--The term `tribal 
        organization'--
                    ``(A) has the meaning given that term in section 
                479B(a); and
                    ``(B) includes a consortium of tribal organizations 
                described in subparagraph (A).
    ``(c) Grants.--
            ``(1) In general.--The Assistant Secretary may make grants 
        to eligible entities to pay for the Federal share (as 
        determined by the Assistant Secretary) of the cost of carrying 
        out kinship navigator programs.
            ``(2) Eligible entities.--To be eligible to receive a grant 
        under this section, an entity shall be a State agency, 
        metropolitan agency, or tribal organization, with experience 
        in--
                    ``(A) addressing the needs of kinship caregivers or 
                children; and
                    ``(B) connecting the children or caregivers with 
                appropriate services and assistance, such as services 
                and assistance provided by--
                            ``(i) an area agency on aging under the 
                        Older Americans Act of 1965 (42 U.S.C. 3001 et 
                        seq.); or
                            ``(ii) an agency with jurisdiction over 
                        child welfare, income-based financial 
                        assistance, human services, or health matters, 
                        or a public entity that links family resource 
                        and support programs, for the State, large 
                        metropolitan area, or Indian tribe involved.
            ``(3) Allocation of grants.--Of the funds made available 
        for grants under this section for each fiscal year, the 
        Assistant Secretary shall use not less than 50 percent to make 
        grants to State agencies.
    ``(d) Non-Federal Share.--The non-Federal share of the cost may be 
provided in cash. Not more than 50 percent of the non-Federal share of 
the cost may be provided in kind, fairly evaluated, including plant, 
equipment, or services.
    ``(e) Applications.--
            ``(1) In general.--To be eligible to receive a grant under 
        this section, an entity shall submit an application to the 
        Assistant Secretary at such time, in such manner, and 
        containing such information as the Assistant Secretary may 
        require, including, at a minimum, the information described in 
        paragraph (2).
            ``(2) Contents.--The application shall include the 
        following:
                    ``(A) A description of the steps the entity will 
                take during the first 6 months of the grant period to--
                            ``(i) identify gaps in services for kinship 
                        care families in the State, large metropolitan 
                        area, or tribal area to be served and the 
                        specific activities that are needed to bridge 
                        the gaps;
                            ``(ii) convene a group of partners to 
                        assist in the operation of the kinship 
                        navigator program funded through the grant;
                            ``(iii) utilize or develop relevant 
                        technology;
                            ``(iv) conduct outreach to kinship 
                        caregivers about the kinship navigator program; 
                        and
                            ``(v) develop a plan for reaching kinship 
                        caregivers, ensuring that the caregivers can 
                        access the kinship navigator program, and 
                        following up to ensure that the caregivers 
                        actually receive necessary services and 
                        supports.
                    ``(B) An assurance that the entity will provide at 
                least the core activities specified in subparagraphs 
                (A) and (B) of subsection (f)(2) for kinship care 
                families through the kinship navigator program.
                    ``(C) A description of the activities the entity 
                expects to offer over the grant period and the entity's 
                initial projection of the number of children and 
                kinship caregivers likely to be served.
                    ``(D) A description of how the entity will involve 
                in the planning and operation of the kinship navigator 
                program, on an ongoing basis--
                            ``(i) kinship caregivers;
                            ``(ii) youth raised or being raised by 
                        kinship caregivers;
                            ``(iii) representatives of kinship care 
                        support organizations;
                            ``(iv) relevant government agencies 
                        (including agencies with jurisdiction over 
                        matters relating to aging, mental health, 
                        mental retardation or developmental 
                        disabilities, substance abuse treatment, 
                        criminal justice, health, youth services, human 
                        services, education, income-based financial 
                        assistance, child welfare, child custody, 
                        guardianship, adoption, or child support 
                        enforcement);
                            ``(v)(I) not-for-profit service providers, 
                        including community-based and faith-based 
                        agencies; and
                            ``(II) educational institutions; and
                            ``(vi) other State or local agencies or 
                        systems that promote service coordination or 
                        provide information and referral services, 
                        including the entities that provide the 2-1-1 
                        or 3-1-1 information systems where applicable.
                    ``(E) A description of--
                            ``(i) how the entity will coordinate its 
                        activities with other State or local agencies 
                        or systems that promote service coordination or 
                        provide information and referral services for 
                        children, families, or older individuals, 
                        including the entities that provide the 2-1-1 
                        or 3-1-1 information systems where applicable, 
                        so as to avoid duplication of services and the 
                        fragmentation of services that prevents kinship 
                        care families from getting the help the 
                        families need; and
                            ``(ii) how the entity will encourage 
                        regional cooperation among agencies, 
                        particularly agencies serving border 
                        communities that may cross jurisdictional 
                        lines, to ensure that kinship care families 
                        will get help.
                    ``(F) An assurance that the entity will report at 
                least annually to the Assistant Secretary, in a manner 
                prescribed by the Assistant Secretary, to ensure 
                comparability of data across States, on--
                            ``(i) activities established with the funds 
                        made available through grants made under this 
                        section;
                            ``(ii) the numbers and ages of the children 
                        and caregivers assisted through the grants;
                            ``(iii) the types of the assistance 
                        provided;
                            ``(iv) the outcomes achieved with the 
                        assistance; and
                            ``(v) the barriers identified to meeting 
                        the needs of kinship care families and plans 
                        for addressing the barriers.
                    ``(G) An assurance that the entity, not later than 
                3 months after the end of the final year of the grant 
                period, will submit a final report to the 
                Administration for Children and Families that 
                describes--
                            ``(i) the numbers and ages of the children 
                        and caregivers assisted through the grants;
                            ``(ii) the types of assistance provided;
                            ``(iii) the outcomes achieved with the 
                        assistance;
                            ``(iv) the barriers to meeting the needs of 
                        kinship care families that were addressed 
                        through the grants;
                            ``(v) the plans of the entity to continue 
                        the kinship navigator program after the grant 
                        period has ended;
                            ``(vi) lessons learned during the grant 
                        period; and
                            ``(vii) recommendations about the 
                        considerations that should be taken into 
                        account as the program carried out under this 
                        section is expanded throughout the United 
                        States.
            ``(3) Preference.--In awarding grants under this section, 
        the Assistant Secretary shall give preference to agencies or 
        organizations that can demonstrate that the agencies and 
        organizations will offer the full array of activities described 
        in subsection (f)(2).
    ``(f) Use of Grant Funds.--
            ``(1) In general.--An entity that receives a grant under 
        this title may use the funds made available through the grant 
        directly, or through grants or contracts with other public or 
        private agencies, including community-based or faith-based 
        agencies, that have experience in connecting kinship caregivers 
        with appropriate services and assistance.
            ``(2) Use of funds.--An entity that receives a grant under 
        this title may use the funds made available through the grant 
        for activities that help to connect kinship caregivers with the 
        services and assistance required to meet the needs of the 
        children the caregivers are raising and their own needs, such 
        as--
                    ``(A) establishing and maintaining information and 
                referral systems that--
                            ``(i) assist, through toll free access that 
                        includes access to a live operator, kinship 
                        caregivers, kinship care service providers, 
                        kinship care support group facilitators, and 
                        others to learn about and link to--
                                    ``(I) local kinship care service 
                                providers, support groups, respite care 
                                programs, and special services for 
                                incarcerated parents;
                                    ``(II) eligibility and enrollment 
                                information for Federal, State, and 
                                local benefits, such as--
                                            ``(aa) education (including 
                                        preschool, elementary, 
                                        secondary, postsecondary, and 
                                        special education);
                                            ``(bb) family support 
                                        services, early intervention 
                                        services, mental health 
                                        services, substance abuse 
                                        prevention and treatment 
                                        services, services to address 
                                        domestic violence problems, 
                                        services to address HIV or 
                                        AIDS, legal services, child 
                                        support, housing assistance, 
                                        and child care;
                                            ``(cc) the disability 
                                        insurance benefits program 
                                        established under title II;
                                            ``(dd) the program of block 
                                        grants to States for temporary 
                                        assistance for needy families 
                                        established under part A;
                                            ``(ee) the supplemental 
                                        security income program 
                                        established under title XVI;
                                            ``(ff) the medicaid program 
                                        established under title XIX;
                                            ``(gg) the State children's 
                                        health insurance program 
                                        established under title XXI;
                                            ``(hh) the program of 
                                        Federal payments for foster 
                                        care and adoption assistance 
                                        established under part E, 
                                        including the program of 
                                        relative guardianship 
                                        assistance payments for 
                                        children established under 
                                        section 473(d); and
                                            ``(ii) the supplemental 
                                        nutrition assistance program 
                                        established under the Food and 
                                        Nutrition Act of 2008 (7 U.S.C. 
                                        2011 et seq.);
                                    ``(III) relevant training to assist 
                                kinship caregivers in obtaining 
                                benefits and services and performing 
                                their caregiving activities; and
                                    ``(IV) relevant legal assistance 
                                and help in obtaining access to legal 
                                services, including access to legal aid 
                                service providers and statewide elder 
                                law hotlines;
                            ``(ii) provide outreach to kinship care 
                        families, in collaboration with schools, 
                        pediatric care clinics, kinship care 
                        organizations, senior citizen centers, agencies 
                        with jurisdiction over child welfare or human 
                        services, and others to link the families to 
                        the kinship navigator program and to services 
                        and assistance; and
                            ``(iii) establish, distribute, and 
                        regularly update kinship care resource guides, 
                        websites, or other relevant outreach materials;
                    ``(B) promoting partnerships between public and 
                private agencies, including community-based and faith-
                based agencies--
                            ``(i) to help the agencies described in 
                        this paragraph more effectively and efficiently 
                        meet the needs of kinship care families; and
                            ``(ii) to familiarize the agencies about 
                        the special needs of kinship care families, 
                        policies that affect their eligibility for a 
                        range of education, health, mental health, 
                        social, child care, and child welfare services, 
                        income-based financial assistance, legal 
                        assistance, and other services and benefits, 
                        and the means for making policies more 
                        supportive of kinship care families;
                    ``(C) establishing and supporting a kinship care 
                ombudsman who has the authority to actively intervene 
                with State agency staff or service providers with which 
                the State agency contracts to help ensure, through 
                various appropriate means including working with 
                individual families in an ongoing manner, that kinship 
                caregivers get the services they need and for which 
                they are eligible; and
                    ``(D) supporting other activities that are designed 
                to assist kinship caregivers in obtaining benefits, 
                services, and activities designed to improve their 
                caregiving.
            ``(3) Limitation.--Except as provided in paragraph (2)(D), 
        the entity may not use any of the funds made available through 
        the grant for direct services to children in kinship care 
        families or to kinship caregivers.
    ``(g) Administration of the Program.--In administering the program 
carried out under this section, the Assistant Secretary for Children 
and Families shall periodically consult with the Assistant Secretary 
for Aging of the Department of Health and Human Services.
    ``(h) Reservation.--The Assistant Secretary may reserve not more 
than 1 percent of the funds made available under this section for a 
fiscal year to provide technical assistance to the recipients of grants 
under this section related to the purposes of the grants.
    ``(i) Appropriation.--Out of any money in the Treasury of the 
United States not otherwise appropriated, there are appropriated to the 
Secretary for purposes of making grants under this section, $5,000,000 
for each of fiscal years 2009 through 2013.''.
    (b) Conforming Amendment.--Section 425 of such Act (42 U.S.C. 625) 
is amended by inserting ``(other than sections 426, 427, and 429)'' 
after ``this subpart''.

SEC. 204. AUTHORITY FOR COMPARISONS AND DISCLOSURES OF INFORMATION IN 
              THE FEDERAL PARENT LOCATOR SERVICE FOR CHILD WELFARE, 
              FOSTER CARE, AND ADOPTION ASSISTANCE PROGRAM PURPOSES.

    Section 453(j)(3) of such Act (42 U.S.C. 653(j)(3)) is amended, in 
the matter preceding subparagraph (A), by inserting ``, part B, part 
E,'' after ``this part''.

           TITLE III--TRIBAL FOSTER CARE AND ADOPTION ACCESS

SEC. 301. EQUITABLE ACCESS FOR FOSTER CARE AND ADOPTION SERVICES FOR 
              INDIAN CHILDREN IN TRIBAL AREAS.

    (a) Authority for Direct Payment of Federal Title IV-E Funds for 
Programs Operated by Indian Tribal Organizations.--
            (1) 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. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL ORGANIZATIONS.

    ``(a) Definitions of Indian Tribe; Tribal Organizations.--In this 
section, the terms `Indian tribe' and `tribal organization' have the 
meanings given those terms in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
    ``(b) Authority.--Except as otherwise provided in this section, 
this part shall apply in the same manner as this part applies to a 
State to an Indian tribe, tribal organization, or tribal consortium 
that elects to operate a program under this part and has a plan 
approved by the Secretary under section 471 in accordance with this 
section.
    ``(c) Plan Requirements.--
            ``(1) In general.--An Indian tribe, tribal organization, or 
        tribal consortium that elects to operate a program under this 
        part shall include with its plan submitted under section 471 
        the following:
                    ``(A) Financial management.--Evidence demonstrating 
                that the tribe, organization, or consortium has not had 
                any uncorrected significant or material audit 
                exceptions under Federal grants or contracts that 
                directly relate to the administration of social 
                services for the 3-year period prior to the date on 
                which the plan is submitted.
                    ``(B) Service areas and populations.--For purposes 
                of complying with section 471(a)(3), a description of 
                the service area or areas and populations to be served 
                under the plan and an assurance that the plan shall be 
                in effect in all service area or areas and for all 
                populations served by the tribe, organization, or 
                consortium.
                    ``(C) Eligibility.--
                            ``(i) In general.--Subject to clause (ii), 
                        an assurance that the plan will provide--
                                    ``(I) foster care maintenance 
                                payments under section 472 only on 
                                behalf of children who satisfy the 
                                eligibility requirements of subsection 
                                (a) of that section;
                                    ``(II) adoption assistance payments 
                                under section 473 pursuant to adoption 
                                assistance agreements only on behalf of 
                                children who satisfy the eligibility 
                                requirements for such payments under 
                                that section; and
                                    ``(III) at the option of the tribe, 
                                organization, or consortium, relative 
                                guardianship assistance payments in 
                                accordance with section 473(d) only on 
                                behalf of children who meet the 
                                requirements of paragraph (3)(B) of 
                                that section.
                            ``(ii) Satisfaction of foster care 
                        eligibility requirements.--For purposes of 
                        determining whether a child whose placement and 
                        care are the responsibility of an Indian tribe, 
                        tribal organization, or tribal consortium with 
                        a plan approved under section 471 in accordance 
                        with this section satisfies the requirements of 
                        section 472(a), the following shall apply:
                                    ``(I) Use of affidavits, etc.--Only 
                                with respect to the first 12 months for 
                                which such plan is in effect, the 
                                requirement in paragraph (1) of section 
                                472(a) shall not be interpreted so as 
                                to prohibit the use of affidavits or 
                                nunc pro tunc orders as verification 
                                documents in support of the reasonable 
                                efforts and contrary to the welfare of 
                                the child judicial determinations 
                                required under that paragraph.
                                    ``(II) AFDC eligibility 
                                requirement.--The State plan approved 
                                under section 402 (as in effect on July 
                                16, 1996) of the State in which the 
                                child resides at the time of removal 
                                from the home shall apply to the 
                                determination of whether the child 
                                satisfies paragraph (3) of section 
                                472(a).
                    ``(D) Option to claim in-kind expenditures from 
                third-party sources for non-federal share of 
                administrative and training costs during initial 
                implementation period.--Only for fiscal year quarters 
                beginning after September 30, 2009, and before October 
                1, 2014, a list of the in-kind expenditures (which 
                shall be fairly evaluated, and may include plants, 
                equipment, administration, or services) and the third-
                party sources of such expenditures that the tribe, 
                organization, or consortium may claim as part of the 
                non-Federal share of administrative or training 
                expenditures attributable to such quarters for purposes 
                of receiving payments under section 474(a)(3). The 
                Secretary shall permit a tribe, organization, or 
                consortium to claim in-kind expenditures from third 
                party sources for such purposes during such quarters 
                subject to the following:
                            ``(i) No effect on authority for tribes, 
                        organizations, or consortia to claim in-kind 
                        expenditures to the same extent states may 
                        claim in-kind expenditures.--Nothing in this 
                        subparagraph shall be construed as preventing a 
                        tribe, organization, or consortium from 
                        claiming any in-kind expenditures for purposes 
                        of receiving payments under section 474(a) that 
                        a State with a plan approved under section 
                        471(a) could claim for such purposes.
                            ``(ii) Fiscal year 2010 or 2011.--
                                    ``(I) Expenditures other than for 
                                training.--With respect to amounts 
                                expended during a fiscal year quarter 
                                beginning after September 30, 2009, and 
                                before October 1, 2011, for which the 
                                tribe, organization, or consortium is 
                                eligible for payments under 
                                subparagraph (C), (D), or (E) of 
                                section 474(a)(3), not more than 25 
                                percent of such amounts may consist of 
                                in-kind expenditures from third-party 
                                sources specified in the list required 
                                under this subparagraph to be submitted 
                                with the plan.
                                    ``(II) Training expenditures.--With 
                                respect to amounts expended during a 
                                fiscal year quarter beginning after 
                                September 30, 2009, and before October 
                                1, 2011, for which the tribe, 
                                organization, or consortium is eligible 
                                for payments under subparagraph (A) or 
                                (B) of section 474(a)(3), not more than 
                                12 percent of such amounts may consist 
                                of in-kind expenditures from third-
                                party sources that are specified in 
                                such list and described in subclause 
                                (III).
                                    ``(III) Sources described.--For 
                                purposes of subclause (II), the sources 
                                described in this subclause are the 
                                following:
                                            ``(aa) A State or local 
                                        government.
                                            ``(bb) An Indian tribe, 
                                        tribal organization, or tribal 
                                        consortium other than the 
                                        tribe, organization, or 
                                        consortium submitting the plan.
                                            ``(cc) A public institution 
                                        of higher education.
                                            ``(dd) A Tribal College or 
                                        University (as defined in 
                                        section 316 of the Higher 
                                        Education Act of 1965 (20 
                                        U.S.C. 1059c)).
                                            ``(ee) A private charitable 
                                        organization.
                            ``(iii) Fiscal year 2012, 2013, or 2014.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II) and clause 
                                (v), with respect to amounts expended 
                                during any fiscal year quarter 
                                beginning after September 30, 2011, and 
                                before October 1, 2014, for which the 
                                tribe, organization, or consortium is 
                                eligible for payments under any 
                                subparagraph of section 474(a)(3), the 
                                only in-kind expenditures from third-
                                party sources that may be claimed by 
                                the tribe, organization, or consortium 
                                for purposes of determining the non-
                                Federal share of such expenditures 
                                (without regard to whether the 
                                expenditures are specified on the list 
                                required under this subparagraph to be 
                                submitted with the plan) are in-kind 
                                expenditures that are specified in 
                                regulations promulgated by the 
                                Secretary under section 301(e)(2) of 
                                the Improved Adoption Incentives and 
                                Relative Guardianship Support Act of 
                                2008 and are from an applicable third-
                                party source specified in such 
                                regulations, and do not exceed the 
                                applicable percentage for claiming such 
                                in-kind expenditures specified in the 
                                regulations.
                                    ``(II) Transition period for early 
                                approved tribes, organizations, or 
                                consortia.--Subject to clause (v), if 
                                the tribe, organization, or consortium 
                                is an early approved tribe, 
                                organization, or consortium (as defined 
                                in subclause (III)), the Secretary 
                                shall not require the tribe, 
                                organization, or consortium to comply 
                                with such regulations before October 1, 
                                2013. Until the earlier of the date 
                                such tribe, organization, or consortium 
                                comes into compliance with such 
                                regulations or October 1, 2013, the 
                                limitations on the claiming of in-kind 
                                expenditures from third-party sources 
                                under clause (ii) shall continue to 
                                apply to such tribe, organization, or 
                                consortium (without regard to fiscal 
                                limitation) for purposes of determining 
                                the non-Federal share of amounts 
                                expended by the tribe, organization, or 
                                consortium during any fiscal year 
                                quarter that begins after September 30, 
                                2011, and before such date of 
                                compliance or October 1, 2013, 
                                whichever is earlier.
                                    ``(III) Definition of early 
                                approved tribe, organization, or 
                                consortium.--For purposes of subclause 
                                (II), the term `early approved tribe, 
                                organization, or consortium' means an 
                                Indian tribe, tribal organization, or 
                                tribal consortium that had a plan 
                                approved under section 471 in 
                                accordance with this section for any 
                                quarter of fiscal year 2010 or 2011.
                            ``(iv) Fiscal year 2015 and thereafter.--
                        Subject to clause (v), with respect to amounts 
                        expended during any fiscal year quarter 
                        beginning after September 30, 2014, for which 
                        the tribe, organization, or consortium is 
                        eligible for payments under any subparagraph of 
                        section 474(a)(3), in-kind expenditures from 
                        third-party sources may be claimed for purposes 
                        of determining the non-Federal share of 
                        expenditures under any subparagraph of section 
                        474(a)(3) only in accordance with the 
                        regulations promulgated by the Secretary under 
                        section 301(e)(2) of the Improved Adoption 
                        Incentives and Relative Guardianship Support 
                        Act of 2008.
                            ``(v) Contingency rule.--If, at the time 
                        expenditures are made for a fiscal year quarter 
                        beginning after September 30, 2011, and before 
                        October 1, 2014, for which a tribe, 
                        organization, or consortium may receive 
                        payments for under section 474(a)(3), no 
                        regulations required to be promulgated under 
                        section 301(e)(2) of the Improved Adoption 
                        Incentives and Relative Guardianship Support 
                        Act of 2008 are in effect, and no legislation 
                        has been enacted specifying otherwise--
                                    ``(I) in the case of any quarter of 
                                fiscal year 2012, 2013, or 2014, the 
                                limitations on claiming in-kind 
                                expenditures from third-party sources 
                                under clause (ii) shall apply (without 
                                regard to fiscal limitation) for 
                                purposes of determining the non-Federal 
                                share of such expenditures; and
                                    ``(II) in the case of any quarter 
                                of fiscal year 2015 or any fiscal year 
                                thereafter, no tribe, organization, or 
                                consortium may claim in-kind 
                                expenditures from third-party sources 
                                for purposes of determining the non-
                                Federal share of such expenditures if a 
                                State with a plan approved under 
                                section 471(a) could not claim in-kind 
                                expenditures from third-party sources 
                                for such purposes.
            ``(2) Clarification of tribal authority to establish 
        standards for tribal foster family homes and tribal child care 
        institutions.--For purposes of complying with section 
        471(a)(10), an Indian tribe, tribal organization, or tribal 
        consortium shall establish and maintain a tribal authority or 
        authorities which shall be responsible for establishing and 
        maintaining tribal standards for tribal foster family homes and 
        tribal child care institutions.
            ``(3) Consortium.--The participating Indian tribes or 
        tribal organizations of a tribal consortium may develop and 
        submit a single plan under section 471 that meets the 
        requirements of this section.
    ``(d) Determination of Federal Medical Assistance Percentage for 
Foster Care Maintenance and Adoption Assistance Payments.--
            ``(1) Per capita income.--For purposes of determining the 
        Federal medical assistance percentage applicable to an Indian 
        tribe, a tribal organization, or a tribal consortium under 
        paragraphs (1), (2), and (5) of section 474(a), the calculation 
        of the per capita income of the Indian tribe, tribal 
        organization, or tribal consortium shall be based upon the 
        service population of the Indian tribe, tribal organization, or 
        tribal consortium, except that in no case shall an Indian 
        tribe, a tribal organization, or a tribal consortium receive 
        less than the Federal medical assistance percentage for any 
        State in which the tribe, organization, or consortium is 
        located.
            ``(2) Consideration of other information.--Before making a 
        calculation under paragraph (1), the Secretary shall consider 
        any information submitted by an Indian tribe, a tribal 
        organization, or a tribal consortium that the Indian tribe, 
        tribal organization, or tribal consortium considers relevant to 
        making the calculation of the per capita income of the Indian 
        tribe, tribal organization, or tribal consortium.
    ``(e) Nonapplication to Cooperative Agreements and Contracts.--Any 
cooperative agreement or contract entered into between an Indian tribe, 
a tribal organization, or a tribal consortium and a State for the 
administration or payment of funds under this part that is in effect as 
of the date of enactment of this section shall remain in full force and 
effect, subject to the right of either party to the agreement or 
contract to revoke or modify the agreement or contract pursuant to the 
terms of the agreement or contract. Nothing in this section shall be 
construed as affecting the authority for an Indian tribe, a tribal 
organization, or a tribal consortium and a State to enter into a 
cooperative agreement or contract for the administration or payment of 
funds under this part.
    ``(f) John H. Chafee Foster Care Independence Program.--Except as 
provided in section 477(j), subsection (b) of this section shall not 
apply with respect to the John H. Chafee Foster Care Independence 
Program established under section 477 (or with respect to payments made 
under section 474(a)(4) or grants made under section 474(e)).
    ``(g) Rule of Construction.--Nothing in this section shall be 
construed as affecting the application of subsection (h) of section 472 
to a child on whose behalf payments are paid under such section, or the 
application of subsection (b) of section 473 to a child on whose behalf 
payments are made under that section pursuant to an adoption assistance 
agreement or a relative guardianship assistance agreement, by an Indian 
tribe, tribal organization, or tribal consortium that elects to operate 
a foster care and adoption assistance program in accordance with this 
section.''.
            (2) Conforming amendments.--Section 472(a)(2)(B) of such 
        Act (42 U.S.C. 672(a)(2)(B)) is amended--
                    (A) in clause (i), by striking ``or'' at the end;
                    (B) in clause (ii), by striking ``and'' at the end 
                and inserting ``or''; and
                    (C) by adding at the end the following:
                            ``(iii) an Indian tribe or a tribal 
                        organization (as defined in section 479B(a)) or 
                        a tribal consortium that has a plan approved 
                        under section 471 in accordance with section 
                        479B; and''.
    (b) Authority To Receive Portion of State Allotment as Part of an 
Agreement To Operate the John H. Chafee Foster Care Independence 
Program.--Section 477 of such Act (42 U.S.C. 677) is amended by adding 
at the end the following new subsection:
    ``(j) Authority for an Indian Tribe, Tribal Organization, or Tribal 
Consortium To Receive an Allotment.--
            ``(1) In general.--An Indian tribe, tribal organization, or 
        tribal consortium with a plan approved under section 479B, or 
        which is receiving funding to provide foster care under this 
        part pursuant to a cooperative agreement or contract with a 
        State, may apply for an allotment out of any funds authorized 
        by paragraph (1) or (2) (or both) of subsection (h).
            ``(2) Application.--A tribe, organization, or consortium 
        desiring an allotment under paragraph (1) shall submit an 
        application to the Secretary to directly receive such allotment 
        that includes a plan which--
                    ``(A) satisfies such requirements of paragraphs (2) 
                and (3) of subsection (b) as the Secretary determines 
                are appropriate;
                    ``(B) contains a description of the tribe's, 
                organization's, or consortium's consultation process 
                regarding the programs to be carried out under the plan 
                with each State for which a portion of an allotment 
                under subsection (c) would be redirected to the tribe, 
                organization, or consortium; and
                    ``(C) contains an explanation of the results of 
                such consultation, particularly with respect to--
                            ``(i) determining the eligibility for 
                        benefits and services of Indian children to be 
                        served under the programs to be carried out 
                        under the plan; and
                            ``(ii) the process for consulting with the 
                        State in order to ensure the continuity of 
                        benefits and services for such children who 
                        will transition from receiving benefits and 
                        services under programs carried out under a 
                        State plan under subsection (b)(2) to receiving 
                        benefits and services under programs carried 
                        out under a plan under this subsection.
            ``(3) Payments.--The Secretary shall pay an Indian tribe, 
        tribal organization, or tribal consortium with an application 
        and plan approved under this subsection from the allotment 
        determined for the tribe, organization, or consortium under 
        paragraph (4) in the same manner as is provided in section 
        474(a)(4) (and, where requested, and if funds are appropriated, 
        section 474(e)) with respect to a State, or in such other 
        manner as is determined appropriate by the Secretary, except 
        that in no case shall an Indian tribe, a tribal organization, 
        or a tribal consortium receive a lesser proportion of such 
        funds than a State is authorized to receive under those 
        sections.
            ``(4) Allotment.--From the amounts allotted to a State 
        under subsection (c) for a fiscal year, the Secretary shall 
        allot to each Indian tribe, tribal organization, or tribal 
        consortium with an application and plan approved under this 
        subsection for that fiscal year an amount equal to the tribal 
        foster care ratio determined under paragraph (5) for the tribe, 
        organization, or consortium multiplied by the allotment amount 
        of the State within which the tribe, organization, or 
        consortium is located. The allotment determined under this 
        paragraph is deemed to be a part of the allotment determined 
        under section 477(c) for the State in which the Indian tribal 
        organization, or tribal consortium is located.
            ``(5) Tribal foster care ratio.--For purposes of paragraph 
        (4), the tribal foster care ratio means, with respect to an 
        Indian tribe, tribal organization, or tribal consortium, the 
        ratio of--
                    ``(A) the number of children in foster care under 
                the responsibility of the Indian tribe, tribal 
                organization, or tribal consortium (either directly or 
                under supervision of the State), in the most recent 
                fiscal year for which the information is available; to
                    ``(B) the sum of--
                            ``(i) the total number of children in 
                        foster care under the responsibility of the 
                        State within which the Indian tribe, tribal 
                        organization, or tribal consortium is located; 
                        and
                            ``(ii) the total number of children in 
                        foster care under the responsibility of all 
                        Indian tribes, tribal organizations, or tribal 
                        consortia in the State (either directly or 
                        under supervision of the State) that have a 
                        plan approved under this subsection.''.
    (c) State and Tribal Cooperation.--
            (1) In general.--Section 471(a) of the Social Security Act 
        (42 U.S.C. 671(a)), as amended by section 201(f)(1)(B), is 
        amended--
                    (A) by striking ``and'' at the end of paragraph 
                (27);
                    (B) by striking the period at the end of paragraph 
                (28) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(29) 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 provide for payments 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 place in tribally 
        licensed foster family homes, adoption assistance payments, 
        and, if the State has elected to provide such payments, 
        relative guardianship assistance payments, and tribal access to 
        resources for administration, training, and data collection 
        under this part.''.
            (2) Chafee program conforming amendment.--Section 
        477(b)(3)(G) of such Act (42 U.S.C. 677(b)(3)(G)) is amended--
                    (A) by striking ``and that'' and inserting 
                ``that''; and
                    (B) by striking the period at the end and inserting 
                ``; and that the State will negotiate in good faith 
                with any Indian tribe, tribal organization, or tribal 
                consortium in the State that does not receive an 
                allotment under subsection (j)(4) for a fiscal year and 
                that requests to develop an agreement with the State to 
                administer, supervise, or oversee the programs to be 
                carried out under the plan with respect to the Indian 
                children who are eligible for such programs and who are 
                under the authority of the tribe, organization, or 
                consortium and to receive from the State an appropriate 
                portion of the State allotment under subsection (c) for 
                the cost of such administration, supervision, or 
                oversight.''.
    (d) Rules of Construction.--Nothing in the amendments made by this 
section shall be construed as--
            (1) authorization to terminate funding to any Indian or 
        Indian family receiving foster care maintenance payments or 
        adoption assistance payments on the date of enactment of this 
        Act on behalf of a child and for which the State receives 
        Federal matching payments under paragraph (1) or (2) of section 
        474(a) of the Social Security Act (42 U.S.C. 674(a)), 
        regardless of whether a cooperative agreement or contract 
        between the State and an Indian tribe, tribal organization, or 
        tribal consortium is in effect on such date or an Indian tribe, 
        tribal organization, or tribal consortium elects subsequent to 
        such date to operate a program under section 479B of the Social 
        Security Act (as added by subsection (a)); or
            (2) affecting the responsibility of a State--
                    (A) as part of the plan approved under section 471 
                of the Social Security Act (42 U.S.C. 671), to provide 
                foster care maintenance payments, adoption assistance 
                payments, and if the State elects, relative 
                guardianship assistance payments, for Indian children 
                who are eligible for such payments and who are not 
                otherwise being served by an Indian tribe, tribal 
                organization, or tribal consortium pursuant to a 
                program under such section 479B or a cooperative 
                agreement or contract entered into between an Indian 
                tribe, a tribal organization, or a tribal consortium 
                and a State for the administration or payment of funds 
                under part E of title IV of such Act; or
                    (B) as part of the plan approved under section 477 
                of such Act (42 U.S.C. 677) to administer, supervise, 
                or oversee programs carried out under that plan on 
                behalf of Indian children who are eligible for such 
                programs if such children are not otherwise being 
                served by an Indian tribe, tribal organization, or 
                tribal consortium pursuant to an approved plan under 
                section 477(j) or a cooperative agreement or contract 
                entered into under section 477(b)(3)(G) of such Act.
    (e) Regulations.--
            (1) In general.--Except as provided in paragraph (2), not 
        later than 1 year after the date of enactment of this section, 
        the Secretary of Health and Human Services, in consultation 
        with Indian tribes, tribal organizations, tribal consortia, and 
        affected States, shall promulgate interim final regulations to 
        carry out this section and the amendments made by this section. 
        Such regulations shall include procedures to ensure that a 
        transfer of responsibility for the placement and care of a 
        child under a State plan approved under section 471 of the 
        Social Security Act to a tribal plan approved under section 471 
        of such Act in accordance with section 479B of such Act (as 
        added by subsection (a)(1)) or to an Indian tribe, a tribal 
        organization, or a tribal consortium that has entered into a 
        cooperative agreement or contract with a State for the 
        administration or payment of funds under part E of title IV of 
        such Act does not affect the eligibility of, provision of 
        services for, or the making of payments on behalf of, such 
        children under part E of title IV of such Act, or the 
        eligibility of such children for medical assistance under title 
        XIX of such Act.
            (2) In-kind expenditures from third-party sources for 
        purposes of determining non-federal share of administrative and 
        training expenditures.--
                    (A) In general.--Subject to subparagraph (B), not 
                later than September 30, 2011, the Secretary of Health 
                and Human Services, in consultation with Indian tribes, 
                tribal organizations, and tribal consortia, shall 
                promulgate interim final regulations specifying the 
                types of in-kind expenditures, including plants, 
                equipment, administration, and services, and the third-
                party sources for such in-kind expenditures which may 
                be claimed by tribes, organizations, and consortia with 
                plans approved under section 471 of the Social Security 
                Act in accordance with section 479B of such Act, up to 
                such percentages as the Secretary, in such consultation 
                shall specify in such regulations, for purposes of 
                determining the non-Federal share of administrative and 
                training expenditures for which the tribes, 
                organizations, and consortia may receive payments for 
                under any subparagraph of section 474(a)(3) of such 
                Act.
                    (B) Effective date.--In no event shall the 
                regulations required to be promulgated under 
                subparagraph (A) take effect prior to October 1, 2011.
                    (C) Sense of the senate.--It is the sense of the 
                Senate that if the Secretary of Health and Human 
                Services fails to publish in the Federal Register the 
                regulations required under subparagraph (A), Congress 
                should enact legislation specifying the types of in-
                kind expenditures and the third-party sources for such 
                in-kind expenditures which may be claimed by tribes, 
                organizations, and consortia with plans approved under 
                section 471 of the Social Security Act in accordance 
                with section 479B of such Act, up to specific 
                percentages, for purposes of determining the non-
                Federal share of administrative and training 
                expenditures for which the tribes, organizations, and 
                consortia may receive payments for under any 
                subparagraph of section 474(a)(3) of such Act.
    (f) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2009, without regard to whether the regulations 
required under subsection (e)(1) have been promulgated by such date.

SEC. 302. GRANTS TO STATES THAT SUCCESSFULLY COLLABORATE WITH AND 
              SUPPORT TRIBES TO IMPROVE PERMANENCY OUTCOMES FOR INDIAN 
              CHILDREN.

    Part E of title IV of the Social Security Act (42 U.S.C. 670 et 
seq.), as amended by section 301(a)(1), is amended by adding at the end 
the following:

``SEC. 479C. GRANTS TO STATES THAT SUCCESSFULLY COLLABORATE WITH AND 
              SUPPORT TRIBES TO IMPROVE PERMANENCY OUTCOMES FOR INDIAN 
              CHILDREN.

    ``(a) Definitions.--In this section:
            ``(1) Grant year.--The term `grant year' means each of 
        fiscal years 2010, 2011, 2012, 2013, and 2014.
            ``(2) Indian children.--The term `Indian children' means 
        children who are members of, enrolled in, or affiliated with, 
        or eligible for membership, enrollment, or affiliation with, an 
        Indian tribe.
            ``(3) Indian tribe, tribal organization, tribal 
        consortium.--The terms `Indian tribe, tribal organization, and 
        tribal consortium' have the meaning given those terms in 
        section 479B(a).
            ``(4) State.--The term `State' means any of the 50 States 
        or the District of Columbia with State plans approved under 
        part B and this part that elect to apply for a grant under this 
        section.
            ``(5) Successful collaboration and tribal support state.--
        The term `Successful Collaboration and Tribal Support State' 
        means, with respect to any grant year, a State that the 
        Secretary determines has demonstrated significant evidence of 
        successful collaboration and Tribal support (as determined 
        under subsection (c)) for the fiscal year preceding the grant 
        year.
    ``(b) Grants.--The Secretary shall make a grant pursuant to this 
paragraph to each State for each grant year for which the Secretary 
determines that the State is a Successful Collaboration and Tribal 
Support State.
    ``(c) Significant Evidence of Successful Collaboration and Tribal 
Support.--
            ``(1) In general.--For purposes of subsection (a)(5), 
        significant evidence of successful collaboration and Tribal 
        support shall be demonstrated through submission by a State of 
        the following evidence to the Secretary:
                    ``(A) Evidence of collaboration by the State with 
                an Indian tribe, tribal organization, or tribal 
                consortium to plan for and ensure access to services 
                and supports for Indian children and their families 
                which includes, at a minimum, evidence of the measures 
                and activities required under sections 422(b)(9), 
                471(a)(29), and 477(b)(3)(G).
                    ``(B) Evidence that the State has obtained from the 
                Secretary, or is engaged in accessing (including 
                through the National Child Welfare Resource Center for 
                Tribes established under section 479D), technical 
                assistance to improve services and permanency outcomes 
                for Indian children and their families, such as through 
                improved identification of Indian children, increased 
                recruitment of Indian foster family homes, and, 
                consistent with the requirements of the Indian Child 
                Welfare Act of 1978 (25 U.S.C. 1901 et seq.), improved 
                rates of family reunification, legal or relative 
                guardianships, or adoptive homes.
                    ``(C) Evidence of improved outcomes for Indian 
                children and their families and such other data as the 
                Secretary may require to verify that an improvement in 
                outcomes appropriate for Indian children and their 
                families has been achieved.
            ``(2) Form and manner.--The Secretary shall establish the 
        form and manner in which a State that elects to apply for a 
        grant under this section shall submit the evidence described in 
        each subparagraph of paragraph (1). To the extent practicable, 
        the requirements for such evidence shall be consistent with 
        data requirements under the Indian Child Welfare Act of 1978 
        (25 U.S.C. 1901 et seq.).
    ``(d) Amount of Grant.--The amount of the grant payable under this 
section to a Successful Collaboration and Tribal Support State for a 
grant year is equal to the product of--
            ``(1) the amount appropriated under subsection (e) for that 
        year; and
            ``(2) the ratio of--
                    ``(A) the number of Indian children in the State 
                (as determined for purposes of making payments under 
                section 428; to
                    ``(B) the sum of the number of such children 
                determined for all Successful Collaboration and Tribal 
                Support States for the grant year.
    ``(e) Appropriation.--Out of any money in the Treasury of the 
United States not otherwise appropriated, there are appropriated to the 
Secretary for purposes of making payments under this section, 
$5,000,000 for each of fiscal years 2010 through 2014.''.

SEC. 303. ESTABLISHMENT OF NATIONAL CHILD WELFARE RESOURCE CENTER FOR 
              TRIBES.

    Part E of title IV of the Social Security Act (42 U.S.C. 670 et 
seq.), as amended by section 302, is amended by adding at the end the 
following:

``SEC. 479D. NATIONAL CHILD WELFARE RESOURCE CENTER FOR TRIBES.

    ``(a) Establishment.--The Secretary shall establish a National 
Child Welfare Resource Center for Tribes that is--
            ``(1) specifically and exclusively dedicated to meeting the 
        needs of Indian tribes, tribal organizations, (as defined in 
        section 479B(a)), tribal consortia, and States in improving 
        services and permanency outcomes for Indian children and their 
        families through the provision of assistance described in 
        subsection (b); and
            ``(2) not part of any existing national child welfare 
        resource center.
    ``(b) Assistance Provided.--
            ``(1) In general.--The National Child Welfare Resource 
        Center for Tribes shall--
                    ``(A) provide information, advice, educational 
                materials, and technical assistance to Indian tribes 
                and tribal organizations with respect to the types of 
                services, administrative functions, data collection, 
                program management, and reporting that are provided for 
                under State plans under part B and this part; and
                    ``(B) assist and provide technical assistance to--
                            ``(i) Indian tribes, tribal organizations, 
                        and tribal consortia seeking to operate a 
                        program under part B or this part through 
                        direct application to the Secretary under 
                        section 479B; and
                            ``(ii) Indian tribes, tribal organizations, 
                        tribal consortia, and States seeking to develop 
                        cooperative agreements to provide for payments 
                        under this part or satisfy the requirements of 
                        section 422(b)(9), 471(a)(29), or 477(b)(3)(G).
            ``(2) Implementation authority.--The Secretary may provide 
        the assistance described in paragraph (1) either directly or 
        through a grant or contract with public or private 
        organizations knowledgeable and experienced in the field of 
        Indian tribal affairs and child welfare.
    ``(c) Appropriations.--There is appropriated to the Secretary, out 
of any money in the Treasury of the United States not otherwise 
appropriated, $1,000,000 for each of fiscal years 2009 through 2013 to 
carry out this section.''.

     TITLE IV--SUPPORT FOR OLDER CHILDREN IN FOSTER CARE AND OTHER 
                               PROVISIONS

SEC. 401. STATE OPTION FOR CHILDREN IN FOSTER CARE, AND CERTAIN 
              CHILDREN IN AN ADOPTIVE OR GUARDIANSHIP PLACEMENT, AFTER 
              ATTAINING AGE 18.

    (a) Definition of Child.--
            (1) In general.--Section 475 of the Social Security Act (42 
        U.S.C. 675) is amended by adding at the end the following:
            ``(8)(A) Subject to subparagraph (B), the term `child' 
        means an individual who has not attained 18 years of age.
            ``(B) At the option of a State, the term shall include an 
        individual--
                    ``(i)(I) who is in foster care under the 
                responsibility of the State;
                    ``(II) with respect to whom an adoption assistance 
                agreement is in effect under section 473 if the child 
                had attained 16 years of age before the agreement 
                became effective; or
                    ``(III) with respect to whom a relative 
                guardianship assistance agreement is in effect under 
                section 473(d) if the child had attained 16 years of 
                age before the agreement became effective;
                    ``(ii) who has attained 18 years of age;
                    ``(iii) who has not attained 19, 20, or 21 years of 
                age, as the State may elect; and
                    ``(iv) who--
                            ``(I) is completing secondary education or 
                        a program leading to an equivalent credential;
                            ``(II) is enrolled in an institution which 
                        provides post-secondary or vocational 
                        education;
                            ``(III) is participating in a program or 
                        activity designed to promote, or remove 
                        barriers to, employment;
                            ``(IV) is employed for at least 80 hours 
                        per month; or
                            ``(V) the State determines is particularly 
                        vulnerable or a high-risk individual.''.
    (b) Conforming Amendment to Definition of Child-Care Institution.--
Section 472(c)(2) of such Act (42 U.S.C. 672(c)(2)) is amended by 
inserting ``, except, in the case of a child who has attained 18 years 
of age, the term shall include a supervised setting in which the 
individual is living independently, in accordance with such conditions 
as the Secretary shall establish in regulations'' before the period.
    (c) Conforming Amendments to Age Limits Applicable to Children 
Eligible for Adoption Assistance or Relative Guardianship Assistance.--
Section 473(a)(4) of such Act (42 U.S.C. 673(a)(4)) is amended to read 
as follows:
    ``(4)(A) Notwithstanding any other provision of this section, a 
payment may not be made pursuant to this section to parents or relative 
guardians with respect to a child--
            ``(i) who has attained--
                    ``(I) 18 years of age, or such greater age as the 
                State may elect under section 475(8)(B)(iii); or
                    ``(II) 21 years of age, if the State determines 
                that the child has a mental or physical handicap which 
                warrants the continuation of assistance;
            ``(ii) who has not attained 18 years of age, if the State 
        determines that the parents or relative guardians, as the case 
        may be, are no longer legally responsible for the support of 
        the child; or
            ``(iii) if the State determines that the child is no longer 
        receiving any support from the parents or relative guardians, 
        as the case may be.
    ``(B) Parents or relative guardians who have been receiving 
adoption assistance payments or relative guardianship assistance 
payments under this section shall keep the State or local agency 
administering the program under this section informed of circumstances 
which would, pursuant to this subsection, make them ineligible for the 
payments, or eligible for the payments in a different amount.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2010.

SEC. 402. TRANSITION PLAN FOR CHILDREN AGING OUT OF FOSTER CARE.

    (a) Transition Plan for Children Aging Out of Foster Care.--Section 
475(5) of such Act (42 U.S.C. 675) is amended--
            (1) in subparagraph (F)(ii), by striking ``and'' at the 
        end;
            (2) in subparagraph (G), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(H) during the 90-day period immediately prior to 
                the date of the legal emancipation of a child, whether 
                during that period foster care maintenance payments are 
                being made on the child's behalf or the child is 
                receiving benefits or services under section 477, a 
                caseworker on the staff of the State agency, and, as 
                appropriate, other representatives of the child provide 
                the child with assistance and support in developing a 
                transition plan that is personalized at the direction 
                of the child, includes specific options on housing, 
                health insurance, education, local opportunities for 
                mentors and continuing support services, and work force 
                supports and employment services, and is as detailed as 
                the child may elect.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on October 1, 
        2008.
            (2) Delay permitted if state legislation required.--In the 
        case of a State plan approved 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 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 1st 
        day of the 1st calendar quarter beginning after the close of 
        the 1st regular session of the State legislature that ends 
        after the 1-year period beginning with the date of the 
        enactment of this Act. For purposes of the preceding sentence, 
        in the case of a State that has a 2-year legislative session, 
        each year of the session is deemed to be a separate regular 
        session of the State legislature.

SEC. 403. EDUCATIONAL STABILITY.

    (a) In General.--Section 475 of the Social Security Act (42 U.S.C. 
675), as amended by section 201(g) of this Act, is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (C), by striking clause (iv) 
                and redesignating clauses (v) through (viii) as clauses 
                (iv) through (vii), respectively; and
                    (B) by adding at the end the following:
                    ``(G) A plan for ensuring the educational stability 
                of the child while in foster care, including--
                            ``(i) assurances that the placement of the 
                        child in foster care takes into account the 
                        appropriateness of the current educational 
                        setting and the proximity to the school in 
                        which the child is enrolled at the time of 
                        placement; and
                            ``(ii)(I) an assurance that the State 
                        agency has coordinated with appropriate local 
                        educational agencies (as defined under section 
                        9101 of the Elementary and Secondary Education 
                        Act of 1965) to ensure that the child remains 
                        in the school in which the child is enrolled at 
                        the time of placement; or
                            ``(II) if remaining in such school is not 
                        in the best interests of the child, assurances 
                        by the State agency and the local educational 
                        agencies to provide immediate and appropriate 
                        enrollment in a new school, with all of the 
                        educational records of the child provided to 
                        the school.''; and
            (2) in the 1st sentence of paragraph (4)(A)--
                    (A) by striking ``and reasonable'' and inserting 
                ``reasonable''; and
                    (B) by inserting ``, and reasonable travel for the 
                child to remain in the school in which the child is 
                enrolled at the time of placement'' before the period.
    (b) Educational Attendance Requirement.--Section 471(a) of the 
Social Security Act (42 U.S.C. 671(a)), as amended by sections 
201(f)(1)(B) and 301(c)(1) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (28);
            (2) by striking the period at the end of paragraph (29) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(30) provides assurances that each child who has attained 
        the minimum age for compulsory school attendance under State 
        law and with respect to whom there is eligibility for a payment 
        under the State plan is a full-time elementary or secondary 
        school student or has completed secondary school, and for 
        purposes of this paragraph, the term `elementary or secondary 
        school student' means, with respect to a child, that the child 
        is--
                    ``(A) enrolled (or in the process of enrolling) in 
                an institution which provides elementary or secondary 
                education, as determined under the law of the State or 
                other jurisdiction in which the institution is located;
                    ``(B) instructed in elementary or secondary 
                education at home in accordance with a home school law 
                of the State or other jurisdiction in which the home is 
                located;
                    ``(C) in an independent study elementary or 
                secondary education program in accordance with the law 
                of the State or other jurisdiction in which the program 
                is located, which is administered by the local school 
                or school district; or
                    ``(D) incapable of attending school on a full-time 
                basis due to the medical condition of the child, which 
                incapability is supported by regularly updated 
                information included in the case plan of the child.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on October 1, 
        2008.
            (2) Delay permitted if state legislation required.--In the 
        case of a State plan approved 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 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 1st 
        day of the 1st calendar quarter beginning after the close of 
        the 1st regular session of the State legislature that ends 
        after the 1-year period beginning with the date of the 
        enactment of this Act. For purposes of the preceding sentence, 
        in the case of a State that has a 2-year legislative session, 
        each year of the session is deemed to be a separate regular 
        session of the State legislature.

                      TITLE V--REVENUE PROVISIONS

SEC. 501. CLARIFICATION OF UNIFORM DEFINITION OF CHILD.

    (a) Child Must Be Younger Than Claimant.--Section 152(c)(3)(A) of 
the Internal Revenue Code of 1986 is amended by inserting ``is younger 
than the taxpayer claiming such individual as a qualifying child and'' 
after ``such individual''.
    (b) Child Must Be Unmarried.--Section 152(c)(1) of such Code is 
amended by striking ``and'' at the end of subparagraph (C), by striking 
the period at the end of subparagraph (D) and inserting ``, and'', and 
by adding at the end the following new subparagraph:
                    ``(E) who has not filed a joint return (other than 
                only for a claim of refund) with the individual's 
                spouse under section 6013 for the taxable year 
                beginning in the calendar year in which the taxable 
                year of the taxpayer begins.''.
    (c) Restrict Qualifying Child Tax Benefits to Child's Parent.--
            (1) Child tax credit.--Subsection (a) of section 24 of such 
        Code is amended by inserting ``for which the taxpayer is 
        allowed a deduction under section 151'' after ``of the 
        taxpayer''.
            (2) Persons other than parents claiming qualifying child.--
                    (A) In general.--Paragraph (4) of section 152(c) of 
                such Code is amended by adding at the end the following 
                new subparagraph:
                    ``(C) No parent claiming qualifying child.--If the 
                parents of an individual may claim such individual as a 
                qualifying child but no parent so claims the 
                individual, such individual may be claimed as the 
                qualifying child of another taxpayer but only if the 
                adjusted gross income of such taxpayer is higher than 
                the highest adjusted gross income of any parent of the 
                individual.''.
                    (B) Conforming amendments.--
                            (i) Subparagraph (A) of section 152(c)(4) 
                        of such Code is amended by striking ``Except'' 
                        through ``2 or more taxpayers'' and inserting 
                        ``Except as provided in subparagraphs (B) and 
                        (C), if (but for this paragraph) an individual 
                        may be claimed as a qualifying child by 2 or 
                        more taxpayers''.
                            (ii) The heading for paragraph (4) of 
                        section 152(c) of such Code is amended by 
                        striking ``claiming'' and inserting ``who can 
                        claim the same''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 502. COLLECTION OF UNEMPLOYMENT COMPENSATION DEBTS RESULTING FROM 
              FRAUD.

    (a) In General.--Section 6402 of the Internal Revenue Code of 1986 
(relating to authority to make credits or refunds) is amended by 
redesignating subsections (f) through (k) as subsections (g) through 
(l), respectively, and by inserting after subsection (e) the following 
new subsection:
    ``(f) Collection of Unemployment Compensation Debts Resulting From 
Fraud.--
            ``(1) In general.--Upon receiving notice from any State 
        that a named person owes a covered unemployment compensation 
        debt to such State, the Secretary shall, under such conditions 
        as may be prescribed by the Secretary--
                    ``(A) reduce the amount of any overpayment payable 
                to such person by the amount of such covered 
                unemployment compensation debt;
                    ``(B) pay the amount by which such overpayment is 
                reduced under subparagraph (A) to such State and notify 
                such State of such person's name, taxpayer 
                identification number, address, and the amount 
                collected; and
                    ``(C) notify the person making such overpayment 
                that the overpayment has been reduced by an amount 
                necessary to satisfy a covered unemployment 
                compensation debt.
        If an offset is made pursuant to a joint return, the notice 
        under subparagraph (C) shall include information related to the 
        rights of a spouse of a person subject to such an offset.
            ``(2) Priorities for offset.--Any overpayment by a person 
        shall be reduced pursuant to this subsection--
                    ``(A) after such overpayment is reduced pursuant 
                to--
                            ``(i) subsection (a) with respect to any 
                        liability for any internal revenue tax on the 
                        part of the person who made the overpayment;
                            ``(ii) subsection (c) with respect to past-
                        due support; and
                            ``(iii) subsection (d) with respect to any 
                        past-due, legally enforceable debt owed to a 
                        Federal agency; and
                    ``(B) before such overpayment is credited to the 
                future liability for any Federal internal revenue tax 
                of such person pursuant to subsection (b).
        If the Secretary receives notice from a State or States of more 
        than one debt subject to paragraph (1) or subsection (e) that 
        is owed by a person to such State or States, any overpayment by 
        such person shall be applied against such debts in the order in 
        which such debts accrued.
            ``(3) Offset permitted only against residents of state 
        seeking offset.--Paragraph (1) shall apply to an overpayment by 
        any person for a taxable year only if the address shown on the 
        Federal return for such taxable year of the overpayment is an 
        address within the State seeking the offset.
            ``(4) Notice; consideration of evidence.--No State may take 
        action under this subsection until such State--
                    ``(A) notifies by certified mail with return 
                receipt the person owing the covered unemployment 
                compensation debt that the State proposes to take 
                action pursuant to this section;
                    ``(B) provides such person at least 60 days to 
                present evidence that all or part of such liability is 
                not legally enforceable or due to fraud;
                    ``(C) considers any evidence presented by such 
                person and determines that an amount of such debt is 
                legally enforceable and due to fraud; and
                    ``(D) satisfies such other conditions as the 
                Secretary may prescribe to ensure that the 
                determination made under subparagraph (C) is valid and 
                that the State has made reasonable efforts to obtain 
                payment of such covered unemployment compensation debt.
            ``(5) Covered unemployment compensation debt.--For purposes 
        of this subsection, the term `covered unemployment compensation 
        debt' means a debt which resulted from a judgment rendered by a 
        court of competent jurisdiction and which is no longer subject 
        to judicial review in an amount equal to--
                    ``(A) a past-due debt for erroneous payment of 
                unemployment compensation due to fraud which has become 
                final under the law of a State certified by the 
                Secretary of Labor pursuant to section 3304 and which 
                remains uncollected;
                    ``(B) contributions due to the unemployment fund of 
                a State for which the State has determined the person 
                to be liable due to fraud; and
                    ``(C) any penalties and interest assessed on such 
                debt.
            ``(6) Regulations.--
                    ``(A) In general.--The Secretary may issue 
                regulations prescribing the time and manner in which 
                States must submit notices of covered unemployment 
                compensation debt and the necessary information that 
                must be contained in or accompany such notices. The 
                regulations may specify the minimum amount of debt to 
                which the reduction procedure established by paragraph 
                (1) may be applied.
                    ``(B) Fee payable to secretary.--The regulations 
                may require States to pay a fee to the Secretary, which 
                may be deducted from amounts collected, to reimburse 
                the Secretary for the cost of applying such procedure. 
                Any fee paid to the Secretary pursuant to the preceding 
                sentence shall be used to reimburse appropriations 
                which bore all or part of the cost of applying such 
                procedure.
                    ``(C) Submission of notices through secretary of 
                labor.--The regulations may include a requirement that 
                States submit notices of covered unemployment 
                compensation debt to the Secretary via the Secretary of 
                Labor in accordance with procedures established by the 
                Secretary of Labor. Such procedures may require States 
                to pay a fee to the Secretary of Labor to reimburse the 
                Secretary of Labor for the costs of applying this 
                subsection. Any such fee shall be established in 
                consultation with the Secretary of the Treasury. Any 
                fee paid to the Secretary of Labor may be deducted from 
                amounts collected and shall be used to reimburse the 
                appropriation account which bore all or part of the 
                cost of applying this subsection.
            ``(7) Erroneous payment to state.--Any State receiving 
        notice from the Secretary that an erroneous payment has been 
        made to such State under paragraph (1) shall pay promptly to 
        the Secretary, in accordance with such regulations as the 
        Secretary may prescribe, an amount equal to the amount of such 
        erroneous payment (without regard to whether any other amounts 
        payable to such State under such paragraph have been paid to 
        such State).''.
    (b) Disclosure of Certain Information to States Requesting Refund 
Offsets for Legally Enforceable State Unemployment Compensation Debt 
Resulting From Fraud.--
            (1) General rule.--Paragraph (3) of section 6103(a) of such 
        Code is amended by inserting ``(10),'' after ``(6),''.
            (2) Disclosure to department of labor and its agent.--
        Paragraph (10) of section 6103(l) of such Code is amended--
                    (A) by striking ``(c), (d), or (e)'' each place it 
                appears in the heading and text and inserting ``(c), 
                (d), (e), or (f)'',
                    (B) in subparagraph (A) by inserting ``, to 
                officers and employees of the Department of Labor for 
                purposes of facilitating the exchange of data in 
                connection with a request made under subsection (f)(5) 
                of section 6402,'' after ``section 6402'', and
                    (C) in subparagraph (B)--
                            (i) by inserting ``(i)'' after ``(B)''; and
                            (ii) by adding at the end the following:
                    ``(ii) Notwithstanding clause (i), return 
                information disclosed to officers and employees of the 
                Department of Labor may be accessed by agents who 
                maintain and provide technological support to the 
                Department of Labor's Interstate Connection Network 
                (ICON) solely for the purpose of providing such 
                maintenance and support.''.
            (3) Safeguards.--Paragraph (4) of section 6103(p) of such 
        Code is amended--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``(l)(16),'' and inserting ``(l)(10), (16),'';
                    (B) in subparagraph (F)(i), by striking 
                ``(l)(16),'' and inserting ``(l)(10), (16),''; and
                    (C) in the matter following subparagraph (F)(iii)--
                            (i) in each of the first two places it 
                        appears, by striking ``(l)(16),'' and inserting 
                        ``(l)(10), (16),'';
                            (ii) by inserting ``(10),'' after 
                        ``paragraph (6)(A),''; and
                            (iii) in each of the last two places it 
                        appears, by striking ``(l)(16)'' and inserting 
                        ``(l)(10) or (16)''.
    (c) Expenditures From State Fund.--Section 3304(a)(4) of such Code 
is amended--
            (1) in subparagraph (E), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (F), by inserting ``and'' after the 
        semicolon; and
            (3) by adding at the end the following new subparagraph:
                    ``(G) with respect to amounts of covered 
                unemployment compensation debt (as defined in section 
                6402(f)(4)) collected under section 6402(f)--
                            ``(i) amounts may be deducted to pay any 
                        fees authorized under such section; and
                            ``(ii) the penalties and interest described 
                        in section 6402(f)(4)(B) may be transferred to 
                        the appropriate State fund into which the State 
                        would have deposited such amounts had the 
                        person owing the debt paid such amounts 
                        directly to the State;''.
    (d) Conforming Amendments.--
            (1) Subsection (a) of section 6402 of such Code is amended 
        by striking ``(c), (d), and (e),'' and inserting ``(c), (d), 
        (e), and (f)''.
            (2) Paragraph (2) of section 6402(d) of such Code is 
        amended by striking ``and before such overpayment is reduced 
        pursuant to subsection (e)'' and inserting ``and before such 
        overpayment is reduced pursuant to subsections (e) and (f)''.
            (3) Paragraph (3) of section 6402(e) of such Code is 
        amended in the last sentence by inserting ``or subsection (f)'' 
        after ``paragraph (1)''.
            (4) Subsection (g) of section 6402 of such Code, as 
        redesignated by subsection (a), is amended by striking ``(c), 
        (d), or (e)'' and inserting ``(c), (d), (e), or (f)''.
            (5) Subsection (i) of section 6402 of such Code, as 
        redesignated by subsection (a), is amended by striking 
        ``subsection (c) or (e)'' and inserting ``subsection (c), (e), 
        or (f)''.
    (e) Effective Date.--The amendments made by this section shall 
apply to refunds payable under section 6402 of the Internal Revenue 
Code of 1986 on or after the date of enactment of this Act.

SEC. 503. INVESTMENT OF OPERATING CASH.

    (a) In General.--Section 323 of title 31, United States Code, is 
amended to read as follows:
``Sec. 323. Investment of operating cash
    ``(a) To manage United States cash, the Secretary of the Treasury 
may invest any part of the operating cash of the Treasury for not more 
than 90 days. The Secretary may invest the operating cash of the 
Treasury in--
            ``(1) obligations of depositories maintaining Treasury tax 
        and loan accounts secured by pledged collateral acceptable to 
        the Secretary;
            ``(2) obligations of the United States Government; and
            ``(3) repurchase agreements with parties acceptable to the 
        Secretary.
    ``(b) Subsection (a) of this section does not require the Secretary 
to invest a cash balance held in a particular account.
    ``(c) The Secretary shall consider the prevailing market in 
prescribing rates of interest for investments under subsection (a)(1) 
of this section.
    ``(d)(1) The Secretary of the Treasury shall submit each fiscal 
year to the appropriate committees a report detailing the investment of 
operating cash under subsection (a) for the preceding fiscal year. The 
report shall describe the Secretary's consideration of risks associated 
with investments and the actions taken to manage such risks.
    ``(2) For purposes of paragraph (1), the term `appropriate 
committees' means the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate.''.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on October 1, 2008.
                                                       Calendar No. 972

110th CONGRESS

  2d Session

                                S. 3038

                          [Report No. 110-467]

_______________________________________________________________________

                                 A BILL

 To amend part E of title IV of the Social Security Act to extend the 
    adoption incentives program, to authorize States to establish a 
relative guardianship program, to promote the adoption of children with 
                 special needs, and for other purposes.

_______________________________________________________________________

                           September 16, 2008

                       Reported with an amendment
```