H. R. 867—19
‘‘(C) in the event that the State provides such coverage
through a State medical assistance program other than
the program under title XIX, and the State exceeds its
funding for services under such other program, any such
child shall be deemed to be receiving aid or assistance
under the State plan under this part for purposes of section
1902(a)(10)(A)(i)(I); and
‘‘(D) in determining cost-sharing requirements, the
State shall take into consideration the circumstances of
the adopting parent or parents and the needs of the child
being adopted consistent, to the extent coverage is provided
through a State medical assistance program, with the rules
under such program.’’.
SEC. 307. CONTINUATION OF ELIGIBILITY FOR ADOPTION ASSISTANCE
PAYMENTS ON BEHALF OF CHILDREN WITH SPECIAL
NEEDS WHOSE INITIAL ADOPTION HAS BEEN DISSOLVED.
(a) CONTINUATION
OF ELIGIBILITY.—Section 473(a)(2) of the
Social Security Act (42 U.S.C. 673(a)(2)) is amended by adding
at the end the following: ‘‘Any child who meets the requirements
of subparagraph (C), who was determined eligible for adoption
assistance payments under this part with respect to a prior adop-
tion, 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, and who fails to meet the requirements of subparagraphs
(A) and (B) but would meet such requirements if the child were
treated as if the child were in the same financial and other cir-
cumstances the child was in the last time the child was determined
eligible for adoption assistance payments under this part and the
prior adoption were treated as never having occurred, shall be
treated as meeting the requirements of this paragraph for purposes
of paragraph (1)(B)(ii).’’.
(b) APPLICABILITY.—The amendment made by subsection (a)
shall only apply to children who are adopted on or after October
1, 1997.
SEC. 308. STATE STANDARDS TO ENSURE QUALITY SERVICES FOR
CHILDREN IN FOSTER CARE.
Section 471(a) of the Social Security Act (42 U.S.C. 671(a)),
as amended by sections 106 and 306, is amended—
(1) in paragraph (20), by striking ‘‘and’’ at the end;
(2) in paragraph (21), by striking the period and inserting
‘‘; and’’; and
(3) by adding at the end the following:
‘‘(22) provides that, not later than January 1, 1999, the
State shall develop and implement standards to ensure that
children in foster care placements in public or private agencies
are provided quality services that protect the safety and health
of the children.’’.
TITLE IV—MISCELLANEOUS
SEC. 401. PRESERVATION OF REASONABLE PARENTING.
Nothing in this Act is intended to disrupt the family unneces-
sarily or to intrude inappropriately into family life, to prohibit
H. R. 867—20
the use of reasonable methods of parental discipline, or to prescribe
a particular method of parenting.
SEC. 402. REPORTING REQUIREMENTS.
Any information required to be reported under this Act shall
be supplied to the Secretary of Health and Human Services through
data meeting the requirements of the Adoption and Foster Care
Analysis and Reporting System established pursuant to section
479 of the Social Security Act (42 U.S.C. 679), to the extent such
data is available under that system. The Secretary shall make
such modifications to regulations issued under section 479 of such
Act with respect to the Adoption and Foster Care Analysis and
Reporting System as may be necessary to allow States to obtain
data that meets the requirements of such system in order to satisfy
the reporting requirements of this Act.
SEC. 403. SENSE OF CONGRESS REGARDING STANDBY GUARDIANSHIP.
It is the sense of Congress that the States should have in
effect laws and procedures that permit any parent who is chronically
ill or near death, without surrendering parental rights, to designate
a standby guardian for the parent’s minor children, whose authority
would take effect upon—
(1) the death of the parent;
(2) the mental incapacity of the parent; or
(3) the physical debilitation and consent of the parent.
SEC. 404. TEMPORARY ADJUSTMENT OF CONTINGENCY FUND FOR
STATE WELFARE PROGRAMS.
(a) REDUCTION
OF APPROPRIATION.—Section 403(b)(2) of the
Social Security Act (42 U.S.C. 603(b)(2)) is amended by inserting
‘‘, reduced by the sum of the dollar amounts specified in paragraph
(6)(C)(ii)’’ before the period.
(b) INCREASE IN STATE REMITTANCES.—Section 403(b)(6) of such
Act (42 U.S.C. 603(b)(6)) is amended by adding at the end the
following:
‘‘(C) ADJUSTMENT OF STATE REMITTANCES.—
‘‘(i) IN GENERAL.—The amount otherwise required
by subparagraph (A) to be remitted by a State for
a fiscal year shall be increased by the lesser of—
‘‘(I) the total adjustment for the fiscal year,
multiplied by the adjustment percentage for the
State for the fiscal year; or
‘‘(II) the unadjusted net payment to the State
for the fiscal year.
‘‘(ii) TOTAL ADJUSTMENT.—As used in clause (i),
the term ‘total adjustment’ means—
‘‘(I) in the case of fiscal year 1998, $2,000,000;
‘‘(II) in the case of fiscal year 1999, $9,000,000;
‘‘(III) in the case of fiscal year 2000,
$16,000,000; and
‘‘(IV) in the case of fiscal year 2001,
$13,000,000.
‘‘(iii) ADJUSTMENT PERCENTAGE.—As used in clause
(i), the term ‘adjustment percentage’ means, with
respect to a State and a fiscal year—
‘‘(I) the unadjusted net payment to the State
for the fiscal year; divided by
H. R. 867—21
‘‘(II) the sum of the unadjusted net payments
to all States for the fiscal year.
‘‘(iv) UNADJUSTED NET PAYMENT.—As used in this
subparagraph, the term, ‘unadjusted net payment’
means with respect to a State and a fiscal year—
‘‘(I) the total amount paid to the State under
paragraph (3) in the fiscal year; minus
‘‘(II) the amount that, in the absence of this
subparagraph, would be required by subparagraph
(A) or by section 409(a)(10) to be remitted by the
State in respect of the payment.’’.
(c) RECOMMENDATIONS FOR IMPROVING THE OPERATION OF THE
CONTINGENCY FUND.—Not later than March 1, 1998, the Secretary
of Health and Human Services shall make recommendations to
the Congress for improving the operation of the Contingency Fund
for State Welfare Programs.
SEC. 
405. 
COORDINATION 
OF 
SUBSTANCE 
ABUSE 
AND 
CHILD
PROTECTION SERVICES.
Within 1 year after the date of the enactment of this Act,
the Secretary of Health and Human Services, based on information
from the Substance Abuse and Mental Health Services Administra-
tion and the Administration for Children and Families in the
Department of Health of Human Services, shall prepare and submit
to the Committee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate a report which
describes the extent and scope of the problem of substance abuse
in the child welfare population, the types of services provided to
such population, and the outcomes resulting from the provision
of such services to such population. The report shall include rec-
ommendations for any legislation that may be needed to improve
coordination in providing such services to such population.
SEC. 
406. 
PURCHASE 
OF 
AMERICAN-MADE 
EQUIPMENT 
AND
PRODUCTS.
(a) IN GENERAL.—It is the sense of the Congress that, to the
greatest extent practicable, all equipment and products purchased
with funds made available under this Act should be American-
made.
(b) NOTICE REQUIREMENT.—In providing financial assistance
to, or entering into any contract with, any entity using funds
made available under this Act, the head of each Federal agency,
to the greatest extent practicable, shall provide to such entity
a notice describing the statement made in subsection (a) by the
Congress.
H. R. 867—22
TITLE V—EFFECTIVE DATE
SEC. 501. EFFECTIVE DATE.
(a) IN GENERAL.—Except as otherwise provided in this Act,
the amendments made by this Act take effect on the date of enact-
ment of this Act.
(b) DELAY PERMITTED
IF STATE LEGISLATION REQUIRED.—In
the case of a State plan under part B or E of title IV of the
Social Security Act which the Secretary of Health and Human
Services determines requires State legislation (other than legisla-
tion appropriating funds) in order for the plan to meet the additional
requirements imposed by the amendments made by this Act, the
State plan shall not be regarded as failing to comply with the
requirements of such part solely on the basis of the failure of
the plan to meet such additional requirements before the first
day of the first calendar quarter beginning after the close of the
first regular session of the State legislature that begins after the
date of enactment of this Act. For purposes of the previous sentence,
in the case of a State that has a 2-year legislative session, each
year of such session shall be deemed to be a separate regular
session of the State legislature.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.