SECTION 1. ADULT RELATIVES WHO MEET RELEVANT
STATE CHILD PROTECTION STANDARDS TO
BE REGARDED AS THE PREFERRED PLACE-
MENT OPTION FOR CHILDREN.
Section 471(a) of the Social Security Act (42 U.S.C.
671(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(16);
(2) by striking the period at the end of para-
graph (17) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(18) provides that, where appropriate and
timely, the adult relatives of a child will be involved
in determining a safe and appropriate placement for
the child, and that placement with such relatives will
be the preferred placement option for the child if
such relatives meet all child protection standards of
the State.’’.
SEC. 2. DEMONSTRATION PROJECTS.
Part E of title IV of the Social Security Act (42
U.S.C. 670–679) is amended by inserting after section
477 the following:
‘‘SEC. 478. KINSHIP CARE DEMONSTRATION PROJECTS.
‘‘(a) PURPOSE.—The purpose of this section is to
allow and encourage States to develop effective alter-
natives to foster care for children who might be eligible
for foster care but who have adult relatives who can pro-
vide safe and appropriate care for the child.
‘‘(b) DEMONSTRATION AUTHORITY.—The Secretary
may authorize any State to conduct a demonstration
project designed to determine whether it is feasible to es-
tablish kinship care as an alternative to foster care for
a child who—
‘‘(1) has been removed from home as a result
of a judicial determination that continuation in the
home would be contrary to the welfare of the child;
‘‘(2) would otherwise be placed in foster care;
and
‘‘(3) has adult relatives willing to provide safe
and appropriate care for the child.
‘‘(c) KINSHIP CARE DEFINED.—As used in this sec-
tion, the term ‘kinship care’ means safe and appropriate
care (including long-term care) of a child by 1 or more
adult relatives of the child who have legal custody of the
child, or physical custody of the child pending transfer to
the adult relative of legal custody of the child.
‘‘(d) PROJECT REQUIREMENTS.—In any demonstra-
tion project authorized to be conducted under this section,
the State—
‘‘(1) should examine the provision of alternative
financial and service supports to families providing
kinship care; and
‘‘(2) shall establish such procedures as may be
necessary to assure the safety of children who are
placed in kinship care.
‘‘(e) WAIVER AUTHORITY.—The Secretary may waive
compliance with any requirement of this part which (if ap-
plied) would prevent a State from carrying out a dem-
onstration project under this section or prevent the State
from effectively achieving the purpose of such a project,
except that the Secretary may not waive—
‘‘(1) any provision of section 427 (as in effect
before April 1, 1996), section 422(b)(9) (as in effect
after such date), section 479, or this section; or
‘‘(2) any provision of this part, to the extent
that the waiver would impair the entitlement of any
qualified child or family to benefits under a State
plan approved under this part.
‘‘(f) PAYMENTS TO STATES; COST NEUTRALITY.—In
lieu of any payment under section 473 for expenses in-
curred by a State during a quarter with respect to a dem-
onstration project authorized to be conducted under this
section, the Secretary shall pay to the State an amount
equal to the total amount that would be paid to the State
for the quarter under this part, in the absence of the
project, with respect to the children and families partici-
pating in the project.
‘‘(g) USE OF FUNDS.—A State may use funds paid
under this section for any purpose related to the provision
of services and financial support for families participating
in a demonstration project under this section.
‘‘(h) DURATION
OF PROJECT.—A demonstration
project under this section may be conducted for not more
than 5 years.
‘‘(i) APPLICATION.—Any State seeking to conduct a
demonstration project under this section shall submit to
the Secretary an application, in such form as the Sec-
retary may require, which includes—
‘‘(1) a description of the proposed project, the
geographic area in which the proposed project would
be conducted, the children or families who would be
served by the proposed project, the procedures to be
used to assure the safety of such children, and the
services which would be provided by the proposed
project (which shall provide, where appropriate, for
random assignment of children and families to
groups served under the project and to control
groups);
‘‘(2) a statement of the period during which the
proposed project would be conducted, and how, at
the termination of the project, the safety and stabil-
ity of the children and families who participated in
the project will be protected;
‘‘(3) a discussion of the benefits that are ex-
pected from the proposed project (compared to a
continuation of activities under the State plan ap-
proved under this part);
‘‘(4) an estimate of the savings to the State of
the proposed project;
‘‘(5) a statement of program requirements for
which waivers would be needed to permit the pro-
posed project to be conducted;
‘‘(6) a description of the proposed evaluation
design; and
‘‘(7) such additional information as the Sec-
retary may require.
‘‘(j) STATE EVALUATIONS
AND REPORTS.—Each
State authorized to conduct a demonstration project under
this section shall—
‘‘(1) obtain an evaluation by an independent
contractor of the effectiveness of the project, using
an evaluation design approved by the Secretary
which provides for—
‘‘(A) comparison of outcomes for children
and families (and groups of children and fami-
lies) under the project, and such outcomes
under the State plan approved under this part,
for purposes of assessing the effectiveness of
the project in achieving program goals; and
‘‘(B) any other information that the Sec-
retary may require;
‘‘(2) obtain an evaluation by an independent
contractor of the effectiveness of the State in assur-
ing the safety of the children participating in the
project; and
‘‘(3) provide interim and final evaluation re-
ports to the Secretary, at such times and in such
manner as the Secretary may require.
‘‘(k) REPORT TO THE CONGRESS.—Not later than 4
years after the date of the enactment of this section, the
Secretary shall submit to the Congress a report that con-
tains the recommendations of the Secretary for changes
in law with respect to kinship care and placements.’’.
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