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‘‘(A) at the time of the adoptive placement, 
the child was in foster care under the super-
vision of the State; or 
‘‘(B) an adoption assistance agreement 
was in effect under section 473 with respect to 
the child.’’; 
(5) in subsection (h)—
(A) in paragraph (1)—
(i) in subparagraph (B), by striking 
‘‘and’’; 
(ii) in subparagraph (C), by striking 
the period and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(D) $43,000,000 for each of fiscal years 
2004 through 2008.’’; and 
(B) in paragraph (2)—
(i) by inserting ‘‘, or under any other 
law for grants under subsection (a),’’ after 
‘‘(1)’’; and 
(ii) by striking ‘‘2003’’ and inserting 
‘‘2008’’; 
(6) in subsection (i)(4), by striking ‘‘1998 
through 2000’’ and inserting ‘‘2004 through 2006’’; 
and
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(7) by striking subsection (j). 
(b) REPORT
ON ADOPTION
AND OTHER PERMA-
NENCY OPTIONS FOR CHILDREN IN FOSTER CARE.—Not 
later than October 1, 2004, the Secretary of Health and 
Human Services shall submit to the Committee on Ways 
and Means of the House of Representatives and the Com-
mittee on Finance of the Senate a report on State efforts 
to promote adoption and other permanency options for 
children in foster care, with special emphasis on older chil-
dren in foster care. In preparing this report, the Secretary 
shall review State waiver programs and consult with rep-
resentatives from State governments, public and private 
child welfare agencies, and child advocacy organizations 
to identify promising approaches. 
SEC. 4. AUTHORITY TO IMPOSE PENALTIES FOR FAILURE 
TO SUBMIT AFCARS REPORT. 
Section 474 of the Social Security Act (42 U.S.C. 
674) is amended by adding at the end the following: 
‘‘(f)(1) If the Secretary finds that a State has failed 
to submit to the Secretary data, as required by regulation, 
for the data collection system implemented under section 
479, the Secretary shall, within 30 days after the date 
by which the data was due to be so submitted, notify the 
State of the failure and that payments to the State under 
this part will be reduced if the State fails to submit the
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data, as so required, within 6 months after the date the 
data was originally due to be so submitted. 
‘‘(2) If the Secretary finds that the State has failed 
to submit the data, as so required, by the end of the 6-
month period referred to in paragraph (1) of this sub-
section, then, notwithstanding subsection (a) of this sec-
tion and any regulations promulgated under section 
1123A(b)(3), the Secretary shall reduce the amounts oth-
erwise payable to the State under this part, for each quar-
ter ending in the 6-month period (and each quarter ending 
in each subsequent consecutively occurring 6-month period 
until the Secretary finds that the State has submitted the 
data, as so required), by—
‘‘(A) 1⁄6 of 1 percent of the total amount ex-
pended by the State for administration of foster care 
activities under the State plan approved under this 
part in the quarter so ending, in the case of the 1st 
6-month period during which the failure continues; 
or 
‘‘(B) 1⁄4 of 1 percent of the total amount so ex-
pended, in the case of the 2nd or any subsequent 
such 6-month period.’’.
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SEC. 5. EFFECTIVE DATE. 
The amendments made by this Act shall take effect 
on October 1, 2003.
Passed the House of Representatives October 8, 
2003. 
Attest: 
JEFF TRANDAHL, 
Clerk.