105TH CONGRESS
1ST SESSION
H.R. 867
AMENDMENT
TO
SENATE AMENDMENT
In the House of Representatives, U. S.,
November 13, 1997.
Resolved, That the House agree to the amendment of the
Senate to the bill (H.R. 867) entitled ‘‘An Act to promote the
adoption of children in foster care.’’, with the following
AMENDMENT:
In lieu of the matter proposed to be inserted by the Sen-
ate, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Adoption and Safe Families Act of 1997’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—REASONABLE EFFORTS AND SAFETY REQUIREMENTS FOR
FOSTER CARE AND ADOPTION PLACEMENTS
Sec. 101. Clarification of the reasonable efforts requirement.
Sec. 102. Including safety in case plan and case review system requirements.
Sec. 103. States required to initiate or join proceedings to terminate parental
rights for certain children in foster care.
Sec. 104. Notice of reviews and hearings; opportunity to be heard.
Sec. 105. Use of the Federal Parent Locator Service for child welfare services.
Sec. 106. Criminal records checks for prospective foster and adoptive parents.
Sec. 107. Documentation of efforts for adoption or location of a permanent home.
TITLE II—INCENTIVES FOR PROVIDING PERMANENT FAMILIES FOR
CHILDREN
Sec. 201. Adoption incentive payments.
Sec. 202. Adoptions across State and county jurisdictions.
Sec. 203. Performance of States in protecting children.
TITLE III—ADDITIONAL IMPROVEMENTS AND REFORMS
Sec. 301. Authority to approve more child protection demonstration projects.
Sec. 302. Permanency hearings.
Sec. 303. Kinship care.
Sec. 304. Clarification of eligible population for independent living services.
Sec. 305. Reauthorization and expansion of family preservation and support
services.
Sec. 306. Health insurance coverage for children with special needs.
Sec. 307. Continuation of eligibility for adoption assistance payments on behalf
of children with special needs whose initial adoption has been
dissolved.
Sec. 308. State standards to ensure quality services for children in foster care.
TITLE IV—MISCELLANEOUS
Sec. 401. Preservation of reasonable parenting.
Sec. 402. Reporting requirements.
Sec. 403. Sense of Congress regarding standby guardianship.
Sec. 404. Temporary adjustment of Contingency Fund for State Welfare Pro-
grams.
Sec. 405. Coordination of substance abuse and child protection services.
Sec. 406. Purchase of American-made equipment and products.
TITLE V—EFFECTIVE DATE
Sec. 501. Effective date.
TITLE I—REASONABLE EFFORTS
AND SAFETY REQUIREMENTS
FOR FOSTER CARE AND ADOP-
TION PLACEMENTS
SEC. 101. CLARIFICATION OF THE REASONABLE EFFORTS
REQUIREMENT.
(a) IN GENERAL.—Section 471(a)(15) of the Social Se-
curity Act (42 U.S.C. 671(a)(15)) is amended to read as
follows:
‘‘(15) provides that—
‘‘(A) in determining reasonable efforts to be
made with respect to a child, as described in this
paragraph, and in making such reasonable ef-
forts, the child’s health and safety shall be the
paramount concern;
‘‘(B) except as provided in subparagraph
(D), reasonable efforts shall be made to preserve
and reunify families—
‘‘(i) prior to the placement of a child
in foster care, to prevent or eliminate the
need for removing the child from the child’s
home; and
‘‘(ii) to make it possible for a child to
safely return to the child’s home;
‘‘(C) if continuation of reasonable efforts of
the type described in subparagraph (B) is deter-
mined to be inconsistent with the permanency
plan for the child, reasonable efforts shall be
made to place the child in a timely manner in
accordance with the permanency plan, and to
complete whatever steps are necessary to finalize
the permanent placement of the child;
‘‘(D) reasonable efforts of the type described
in subparagraph (B) shall not be required to be
made with respect to a parent of a child if a
court of competent jurisdiction has determined
that—
‘‘(i) the parent has subjected the child
to aggravated circumstances (as defined in
State law, which definition may include but
need not be limited to abandonment, tor-
ture, chronic abuse, and sexual abuse);
‘‘(ii) the parent has—
‘‘(I) committed murder (which
would have been an offense under sec-
tion 1111(a) of title 18, United States
Code, if the offense had occurred in the
special maritime or territorial juris-
diction of the United States) of another
child of the parent;
‘‘(II) committed voluntary man-
slaughter (which would have been an
offense under section 1112(a) of title
18, United States Code, if the offense
had occurred in the special maritime
or territorial jurisdiction of the United
States) of another child of the parent;
‘‘(III) aided or abetted, attempted,
conspired, or solicited to commit such
a murder or such a voluntary man-
slaughter; or
‘‘(IV) committed a felony assault
that results in serious bodily injury to
the child or another child of the parent;
or
‘‘(iii) the parental rights of the parent
to a sibling have been terminated involun-
tarily;
‘‘(E) if reasonable efforts of the type de-
scribed in subparagraph (B) are not made with
respect to a child as a result of a determination
made by a court of competent jurisdiction in ac-
cordance with subparagraph (D)—
‘‘(i) a permanency hearing (as de-
scribed in section 475(5)(C)) shall be held
for the child within 30 days after the deter-
mination; and
‘‘(ii) reasonable efforts shall be made to
place the child in a timely manner in ac-
cordance with the permanency plan, and to
complete whatever steps are necessary to fi-
nalize the permanent placement of the child;
and
‘‘(F) reasonable efforts to place a child for
adoption or with a legal guardian may be made
concurrently with reasonable efforts of the type
described in subparagraph (B);’’.
(b) DEFINITION OF LEGAL GUARDIANSHIP.—Section
475 of such Act (42 U.S.C. 675) is amended by adding at
the end the following:
‘‘(7) The term ‘legal guardianship’ means a judi-
cially created relationship between child and care-
taker which is intended to be permanent and self-sus-
taining as evidenced by the transfer to the caretaker
of the following parental rights with respect to the
child: protection, education, care and control of the
person, custody of the person, and decisionmaking.
The term ‘legal guardian’ means the caretaker in such
a relationship.’’.
(c) CONFORMING AMENDMENT.—Section 472(a)(1) of
such Act (42 U.S.C. 672(a)(1)) is amended by inserting ‘‘for
a child’’ before ‘‘have been made’’.
(d) RULE OF CONSTRUCTION.—Part E of title IV of
such Act (42 U.S.C. 670–679) is amended by inserting after
section 477 the following:
‘‘SEC. 478. RULE OF CONSTRUCTION.
‘‘Nothing in this part shall be construed as precluding
State courts from exercising their discretion to protect the
health and safety of children in individual cases, including
cases other than those described in section 471(a)(15)(D).’’.
SEC. 102. INCLUDING SAFETY IN CASE PLAN AND CASE RE-
VIEW SYSTEM REQUIREMENTS.
Title IV of the Social Security Act (42 U.S.C. 601 et
seq.) is amended—
(1) in section 422(b)(10)(B)—
(A) in clause (iii)(I), by inserting ‘‘safe
and’’ after ‘‘where’’; and
(B) in clause (iv), by inserting ‘‘safely’’
after ‘‘remain’’; and
(2) in section 475—
(A) in paragraph (1)—
(i) in subparagraph (A), by inserting
‘‘safety and’’ after ‘‘discussion of the’’; and
(ii) in subparagraph (B)—
(I) by inserting ‘‘safe and’’ after
‘‘child receives’’; and
(II) by inserting ‘‘safe’’ after ‘‘re-
turn of the child to his own’’; and
(B) in paragraph (5)—
(i) in subparagraph (A), in the matter
preceding clause (i), by inserting ‘‘a safe
setting that is’’ after ‘‘placement in’’; and
(ii) in subparagraph (B)—
(I) by inserting ‘‘the safety of the
child,’’ after ‘‘determine’’; and
(II) by inserting ‘‘and safely
maintained in’’ after ‘‘returned to’’.
SEC. 103. STATES REQUIRED TO INITIATE OR JOIN PRO-
CEEDINGS TO TERMINATE PARENTAL RIGHTS
FOR CERTAIN CHILDREN IN FOSTER CARE.
(a) 
REQUIREMENT
FOR
PROCEEDINGS.—Section
475(5) of the Social Security Act (42 U.S.C. 675(5)) is
amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (C);
(2) by striking the period at the end of subpara-
graph (D) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(E) in the case of a child who has been in
foster care under the responsibility of the State
for 15 of the most recent 22 months, or, if a
court of competent jurisdiction has determined a
child to be an abandoned infant (as defined
under State law) or has made a determination
that the parent has committed murder of another
child of the parent, committed voluntary man-
slaughter of another child of the parent, aided or
abetted, attempted, conspired, or solicited to com-
mit such a murder or such a voluntary man-
slaughter, or committed a felony assault that has
resulted in serious bodily injury to the child or
to another child of the parent, the State shall file
a petition to terminate the parental rights of the
child’s parents (or, if such a petition has been
filed by another party, seek to be joined as a
party to the petition), and, concurrently, to
identify, recruit, process, and approve a quali-
fied family for an adoption, unless—
‘‘(i) at the option of the State, the child
is being cared for by a relative;
‘‘(ii) a State agency has documented in
the case plan (which shall be available for
court review) a compelling reason for deter-
mining that filing such a petition would
not be in the best interests of the child; or
‘‘(iii) the State has not provided to the
family of the child, consistent with the time
period in the State case plan, such services
as the State deems necessary for the safe re-
turn of the child to the child’s home, if rea-
sonable efforts of the type described in sec-
tion 471(a)(15)(B)(ii) are required to be
made with respect to the child.’’.
(b) DETERMINATION
OF
BEGINNING
OF
FOSTER
CARE.—Section 475(5) of the Social Security Act (42
U.S.C. 675(5)), as amended by subsection (a), is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (D);
(2) by striking the period at the end of subpara-
graph (E) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(F) a child shall be considered to have en-
tered foster care on the earlier of—
‘‘(i) the date of the first judicial find-
ing that the child has been subjected to child
abuse or neglect; or
‘‘(ii) the date that is 60 days after the
date on which the child is removed from the
home.’’.
(c) TRANSITION RULES.—
(1) NEW FOSTER CHILDREN.—In the case of a
child who enters foster care (within the meaning of
section 475(5)(F) of the Social Security Act) under
the responsibility of a State after the date of the en-
actment of this Act—
(A) if the State comes into compliance with
the amendments made by subsection (a) of this
section before the child has been in such foster
care for 15 of the most recent 22 months, the
State shall comply with section 475(5)(E) of the
Social Security Act with respect to the child
when the child has been in such foster care for
15 of the most recent 22 months; and
(B) if the State comes into such compliance
after the child has been in such foster care for 15
of the most recent 22 months, the State shall
comply with such section 475(5)(E) with respect
to the child not later than 3 months after the end
of the first regular session of the State legislature
that begins after such date of enactment.
(2) CURRENT FOSTER CHILDREN.—In the case of
children in foster care under the responsibility of the
State on the date of the enactment of this Act, the
State shall—
(A) not later than 6 months after the end
of the first regular session of the State legislature
that begins after such date of enactment, comply
with section 475(5)(E) of the Social Security Act
with respect to not less than 1⁄3 of such children
as the State shall select, giving priority to chil-
dren for whom the permanency plan (within the
meaning of part E of title IV of the Social Secu-
rity Act) is adoption and children who have been
in foster care for the greatest length of time;
(B) not later than 12 months after the end
of such first regular session, comply with such
section 475(5)(E) with respect to not less than 2⁄3
of such children as the State shall select; and
(C) not later than 18 months after the end
of such first regular session, comply with such
section 475(5)(E) with respect to all of such chil-
dren.
(3) TREATMENT
OF
2-YEAR
LEGISLATIVE
SES-
SIONS.—For purposes of this subsection, 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 ses-
sion of the State legislature.
(4) REQUIREMENTS
TREATED
AS
STATE
PLAN
REQUIREMENTS.—For purposes of part E of title IV
of the Social Security Act, the requirements of this
subsection shall be treated as State plan requirements
imposed by section 471(a) of such Act.
(d) RULE OF CONSTRUCTION.—Nothing in this section
or in part E of title IV of the Social Security Act (42 U.S.C.
670 et seq.), as amended by this Act, shall be construed as
precluding State courts or State agencies from initiating
the termination of parental rights for reasons other than,
or for timelines earlier than, those specified in part E of
title IV of such Act, when such actions are determined to
be in the best interests of the child, including cases where
the child has experienced multiple foster care placements
of varying durations.
SEC. 104. NOTICE OF REVIEWS AND HEARINGS; OPPOR-
TUNITY TO BE HEARD.
Section 475(5) of the Social Security Act (42 U.S.C.
675(5)), as amended by section 103, is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (E);
(2) by striking the period at the end of subpara-
graph (F) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(G) the foster parents (if any) of a child
and any preadoptive parent or relative provid-
ing care for the child are provided with notice of,
and an opportunity to be heard in, any review
or hearing to be held with respect to the child,
except that this subparagraph shall not be con-
strued to require that any foster parent,
preadoptive parent, or relative providing care for
the child be made a party to such a review or
hearing solely on the basis of such notice and op-
portunity to be heard.’’.
SEC. 105. USE OF THE FEDERAL PARENT LOCATOR SERVICE
FOR CHILD WELFARE SERVICES.
Section 453 of the Social Security Act (42 U.S.C. 653)
is amended—
(1) in subsection (a)(2)—
(A) in the matter preceding subparagraph
(A), by inserting ‘‘or making or enforcing child
custody or visitation orders,’’ after ‘‘obliga-
tions,’’; and
(B) in subparagraph (A)—
(i) by striking ‘‘or’’ at the end of clause
(ii);
(ii) by striking the comma at the end
of clause (iii) and inserting ‘‘; or’’; and
(iii) by inserting after clause (iii) the
following:
‘‘(iv) who has or may have parental
rights with respect to a child,’’; and
(2) in subsection (c)—
(A) by striking the period at the end of
paragraph (3) and inserting ‘‘; and’’; and
(B) by adding at the end the following:
‘‘(4) a State agency that is administering a pro-
gram operated under a State plan under subpart 1
of part B, or a State plan approved under subpart
2 of part B or under part E.’’.
SEC. 106. CRIMINAL RECORDS CHECKS FOR PROSPECTIVE
FOSTER AND ADOPTIVE PARENTS.
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
(18);
(2) by striking the period at the end of para-
graph (19) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(20)(A) unless an election provided for in sub-
paragraph (B) is made with respect to the State, pro-
vides procedures for criminal records checks for any
prospective foster or adoptive parent before the foster
or adoptive parent may be finally approved for place-
ment of a child on whose behalf foster care mainte-
nance payments or adoption assistance payments are
to be made under the State plan under this part, in-
cluding procedures requiring that—
‘‘(i) in any case in which a record check re-
veals a felony conviction for child abuse or ne-
glect, for spousal abuse, for a crime against chil-
dren (including child pornography), or for a
crime involving violence, including rape, sexual
assault, or homicide, but not including other
physical assault or battery, if a State finds that
a court of competent jurisdiction has determined
that the felony was committed at any time, such
final approval shall not be granted; and
‘‘(ii) in any case in which a record check
reveals a felony conviction for physical assault,
battery, or a drug-related offense, if a State finds
that a court of competent jurisdiction has deter-
mined that the felony was committed within the
past 5 years, such final approval shall not be
granted; and
‘‘(B) subparagraph (A) shall not apply to a
State plan if the Governor of the State has notified
the Secretary in writing that the State has elected to
make subparagraph (A) inapplicable to the State, or
if the State legislature, by law, has elected to make
subparagraph (A) inapplicable to the State.’’.
SEC. 107. DOCUMENTATION OF EFFORTS FOR ADOPTION OR
LOCATION OF A PERMANENT HOME.
Section 475(1) of the Social Security Act (42 U.S.C.
675(1)) is amended—
(1) in the last sentence—
(A) by striking ‘‘the case plan must also in-
clude’’; and
(B) by redesignating such sentence as sub-
paragraph (D) and indenting appropriately;
and
(2) by adding at the end the following:
‘‘(E) In the case of a child with respect to
whom the permanency plan is adoption or place-
ment in another permanent home, documenta-
tion of the steps the agency is taking to find an
adoptive family or other permanent living ar-
rangement for the child, to place the child with
an adoptive family, a fit and willing relative, a
legal guardian, or in another planned perma-
nent living arrangement, and to finalize the
adoption or legal guardianship. At a minimum,
such documentation shall include child specific
recruitment efforts such as the use of State, re-
gional, and national adoption exchanges includ-
ing electronic exchange systems.’’.
TITLE II—INCENTIVES FOR PRO-
VIDING 
PERMANENT 
FAMI-
LIES FOR CHILDREN
SEC. 201. ADOPTION INCENTIVE PAYMENTS.
(a) IN GENERAL.—Part E of title IV of the Social Se-
curity Act (42 U.S.C. 670–679) is amended by inserting
after section 473 the following:
‘‘SEC. 473A. ADOPTION INCENTIVE PAYMENTS.
‘‘(a) GRANT AUTHORITY.—Subject to the availability
of such amounts as may be provided in advance in appro-
priations Acts for this purpose, the Secretary shall make
a grant to each State that is an incentive-eligible State for
a fiscal year in an amount equal to the adoption incentive
payment payable to the State under this section for the fis-
cal year, which shall be payable in the immediately succeed-
ing fiscal year.
‘‘(b) INCENTIVE-ELIGIBLE STATE.—A State is an in-
centive-eligible State for a fiscal year if—
‘‘(1) the State has a plan approved under this
part for the fiscal year;
‘‘(2) the number of foster child adoptions in the
State during the fiscal year exceeds the base number
of foster child adoptions for the State for the fiscal
year;
‘‘(3) the State is in compliance with subsection
(c) for the fiscal year;
‘‘(4) in the case of fiscal years 2001 and 2002,
the State provides health insurance coverage to any
child with special needs (as determined under section
473(c)) for whom there is in effect an adoption assist-
ance agreement between a State and an adoptive par-
ent or parents; and
‘‘(5) the fiscal year is any of fiscal years 1998
through 2002.
‘‘(c) DATA REQUIREMENTS.—
‘‘(1) IN GENERAL.—A State is in compliance
with this subsection for a fiscal year if the State has
provided to the Secretary the data described in para-
graph (2)—
‘‘(A) for fiscal years 1995 through 1997 (or,
if the 1st fiscal year for which the State seeks a
grant under this section is after fiscal year 1998,
the fiscal year that precedes such 1st fiscal year);
and
‘‘(B) for each succeeding fiscal year that
precedes the fiscal year.
‘‘(2) DETERMINATION
OF
NUMBERS
OF
ADOP-
TIONS.—
‘‘(A) DETERMINATIONS BASED ON AFCARS
DATA.—Except as provided in subparagraph
(B), the Secretary shall determine the numbers of
foster child adoptions and of special needs adop-
tions in a State during each of fiscal years 1995
through 2002, for purposes of this section, on the
basis of data meeting the requirements of the sys-
tem established pursuant to section 479, as re-
ported by the State and approved by the Sec-
retary by August 1 of the succeeding fiscal year.
‘‘(B) ALTERNATIVE
DATA
SOURCES
PER-
MITTED
FOR
FISCAL
YEARS
1995
THROUGH
1997.—For purposes of the determination de-
scribed in subparagraph (A) for fiscal years
1995 through 1997, the Secretary may use data
from a source or sources other than that specified
in subparagraph (A) that the Secretary finds to
be of equivalent completeness and reliability, as
reported by a State by November 30, 1997, and
approved by the Secretary by March 1, 1998.
‘‘(3) NO WAIVER OF AFCARS REQUIREMENTS.—
This section shall not be construed to alter or affect
any requirement of section 479 or of any regulation
prescribed under such section with respect to report-
ing of data by States, or to waive any penalty for
failure to comply with such a requirement.
‘‘(d) ADOPTION INCENTIVE PAYMENT.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the adoption incentive payment payable to
a State for a fiscal year under this section shall be
equal to the sum of—
‘‘(A) $4,000, multiplied by the amount (if
any) by which the number of foster child adop-
tions in the State during the fiscal year exceeds
the base number of foster child adoptions for the
State for the fiscal year; and
‘‘(B) $2,000, multiplied by the amount (if
any) by which the number of special needs adop-
tions in the State during the fiscal year exceeds
the base number of special needs adoptions for
the State for the fiscal year.
‘‘(2) PRO RATA ADJUSTMENT IF INSUFFICIENT
FUNDS AVAILABLE.—For any fiscal year, if the total
amount of adoption incentive payments otherwise
payable under this section for a fiscal year exceeds the
amount appropriated pursuant to subsection (h) for
the fiscal year, the amount of the adoption incentive
payment payable to each State under this section for
the fiscal year shall be—
‘‘(A) the amount of the adoption incentive
payment that would otherwise be payable to the
State under this section for the fiscal year; mul-
tiplied by
‘‘(B) the percentage represented by the
amount so appropriated for the fiscal year, di-
vided by the total amount of adoption incentive
payments otherwise payable under this section
for the fiscal year.
‘‘(e) 2-YEAR
AVAILABILITY
OF
INCENTIVE
PAY-
MENTS.—Payments to a State under this section in a fiscal
year shall remain available for use by the State through
the end of the succeeding fiscal year.
‘‘(f) LIMITATIONS ON USE OF INCENTIVE PAYMENTS.—
A State shall not expend an amount paid to the State under
this section except to provide to children or families any
service (including post-adoption services) that may be pro-
vided under part B or E. Amounts expended by a State
in accordance with the preceding sentence shall be dis-
regarded in determining State expenditures for purposes of
Federal matching payments under sections 423, 434, and
474.
‘‘(g) DEFINITIONS.—As used in this section:
‘‘(1) FOSTER CHILD ADOPTION.—The term ‘foster
child adoption’ means the final adoption of a child
who, at the time of adoptive placement, was in foster
care under the supervision of the State.
‘‘(2) SPECIAL NEEDS ADOPTION.—The term ‘spe-
cial needs adoption’ means the final adoption of a
child for whom an adoption assistance agreement is
in effect under section 473.
‘‘(3) BASE NUMBER OF FOSTER CHILD ADOP-
TIONS.—The term ‘base number of foster child adop-
tions for a State’ means—
‘‘(A) with respect to fiscal year 1998, the
average number of foster child adoptions in the
State in fiscal years 1995, 1996, and 1997; and
‘‘(B) with respect to any subsequent fiscal
year, the number of foster child adoptions in the
State in the fiscal year for which the number is
the greatest in the period that begins with fiscal
year 1997 and ends with the fiscal year preced-
ing such subsequent fiscal year.
‘‘(4) BASE NUMBER OF SPECIAL NEEDS ADOP-
TIONS.—The term ‘base number of special needs adop-
tions for a State’ means—
‘‘(A) with respect to fiscal year 1998, the
average number of special needs adoptions in the
State in fiscal years 1995, 1996, and 1997; and
‘‘(B) with respect to any subsequent fiscal
year, the number of special needs adoptions in
the State in the fiscal year for which the number
is the greatest in the period that begins with fis-
cal year 1997 and ends with the fiscal year pre-
ceding such subsequent fiscal year.
‘‘(h) LIMITATIONS ON AUTHORIZATION OF APPROPRIA-
TIONS.—
‘‘(1) IN GENERAL.—For grants under subsection
(a), there are authorized to be appropriated to the
Secretary $20,000,000 for each of fiscal years 1999
through 2003.
‘‘(2) 
AVAILABILITY.—Amounts 
appropriated
under paragraph (1) are authorized to remain avail-
able until expended, but not after fiscal year 2003.
‘‘(i) TECHNICAL ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary may, directly
or through grants or contracts, provide technical as-
sistance to assist States and local communities to
reach their targets for increased numbers of adoptions
and, to the extent that adoption is not possible, alter-
native permanent placements, for children in foster
care.
‘‘(2) DESCRIPTION OF THE CHARACTER OF THE
TECHNICAL
ASSISTANCE.—The technical assistance
provided under paragraph (1) may support the goal
of encouraging more adoptions out of the foster care
system, when adoptions promote the best interests of
children, and may include the following:
‘‘(A) The development of best practice guide-
lines for expediting termination of parental
rights.
‘‘(B) Models to encourage the use of concur-
rent planning.
‘‘(C) The development of specialized units
and expertise in moving children toward adop-
tion as a permanency goal.
‘‘(D) The development of risk assessment
tools to facilitate early identification of the chil-
dren who will be at risk of harm if returned
home.
‘‘(E) Models to encourage the fast tracking
of children who have not attained 1 year of age
into pre-adoptive placements.
‘‘(F) Development of programs that place
children into pre-adoptive families without wait-
ing for termination of parental rights.
‘‘(3) TARGETING OF TECHNICAL ASSISTANCE TO
THE
COURTS.—Not less than 50 percent of any
amount appropriated pursuant to paragraph (4)
shall be used to provide technical assistance to the
courts.
‘‘(4) LIMITATIONS
ON
AUTHORIZATION
OF
AP-
PROPRIATIONS.—To carry out this subsection, there
are authorized to be appropriated to the Secretary of
Health 
and 
Human 
Services 
not 
to 
exceed
$10,000,000 for each of fiscal years 1998 through
2000.’’.
(b) DISCRETIONARY CAP ADJUSTMENT FOR ADOPTION
INCENTIVE PAYMENTS.—
(1) 
SECTION
251
AMENDMENT.—Section
251(b)(2) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)), as
amended by section 10203(a)(4) of the Balanced
Budget Act of 1997, is amended by adding at the end
the following new subparagraph:
‘‘(G) ADOPTION
INCENTIVE
PAYMENTS.—
Whenever a bill or joint resolution making ap-
propriations for fiscal year 1999, 2000, 2001,
2002, or 2003 is enacted that specifies an
amount for adoption incentive payments pursu-
ant to this part for the Department of Health
and Human Services—
‘‘(i) the adjustments for new budget
authority shall be the amounts of new budg-
et authority provided in that measure for
adoption incentive payments, but not to ex-
ceed $20,000,000; and
‘‘(ii) the adjustment for outlays shall
be the additional outlays flowing from such
amount.’’.
(2) SECTION 314 AMENDMENT.—Section 314(b) of
the Congressional Budget Act of 1974, as amended by
section 10114(a) of the Balanced Budget Act of 1997,
is amended—
(A) by striking ‘‘or’’ at the end of para-
graph (4);
(B) by striking the period at the end of
paragraph (5) and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(6) in the case of an amount for adoption in-
centive payments (as defined in section 251(b)(2)(G)
of the Balanced Budget and Emergency Deficit Con-
trol Act of 1985) for fiscal year 1999, 2000, 2001,
2002, or 2003 for the Department of Health and
Human 
Services, 
an 
amount 
not 
to 
exceed
$20,000,000.’’.
SEC. 202. ADOPTIONS ACROSS STATE AND COUNTY JURIS-
DICTIONS.
(a) STATE PLAN FOR CHILD WELFARE SERVICES RE-
QUIREMENT.—Section 422(b) of the Social Security Act (42
U.S.C. 622(b)) is amended—
(1) in paragraph (10), by striking ‘‘and’’ at the
end;
(2) in paragraph (11), by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(12) contain assurances that the State shall de-
velop plans for the effective use of cross-jurisdictional
resources to facilitate timely adoptive or permanent
placements for waiting children.’’.
(b) CONDITION OF ASSISTANCE.—Section 474 of such
Act (42 U.S.C. 674) is amended by adding at the end the
following:
‘‘(e) Notwithstanding subsection (a), a State shall not
be eligible for any payment under this section if the Sec-
retary finds that, after the date of the enactment of this
subsection, the State has—
‘‘(1) denied or delayed the placement of a child
for adoption when an approved family is available
outside of the jurisdiction with responsibility for han-
dling the case of the child; or
‘‘(2) failed to grant an opportunity for a fair
hearing, as described in section 471(a)(12), to an in-
dividual whose allegation of a violation of paragraph
(1) of this subsection is denied by the State or not
acted upon by the State with reasonable prompt-
ness.’’.
(c) STUDY OF INTERJURISDICTIONAL ADOPTION IS-
SUES.—
(1) IN GENERAL.—The Comptroller General of
the United States shall—
(A) study and consider how to improve pro-
cedures and policies to facilitate the timely and
permanent adoptions of children across State
and county jurisdictions; and
(B) examine, at a minimum, interjurisdic-
tional adoption issues—
(i) concerning the recruitment of pro-
spective adoptive families from other States
and counties;
(ii) concerning the procedures to grant
reciprocity to prospective adoptive family
home studies from other States and coun-
ties;
(iii) arising from a review of the com-
ity and full faith and credit provided to
adoption decrees and termination of paren-
tal rights orders from other States; and
(iv) concerning the procedures related
to the administration and implementation
of the Interstate Compact on the Placement
of Children.
(2) REPORT TO THE CONGRESS.—Not later than
1 year after the date of the enactment of this Act, the
Comptroller General shall submit to the appropriate
committees of the Congress a report that includes—
(A) the results of the study conducted under
paragraph (1); and
(B) recommendations on how to improve
procedures to facilitate the interjurisdictional
adoption of children, including interstate and
intercounty adoptions, so that children will be
assured timely and permanent placements.
SEC. 203. PERFORMANCE OF STATES IN PROTECTING CHIL-
DREN.
(a) ANNUAL REPORT ON STATE PERFORMANCE.—Part
E of title IV of the Social Security Act (42 U.S.C. 670 et
seq.) is amended by adding at the end the following:
‘‘SEC. 479A. ANNUAL REPORT.
‘‘The Secretary, in consultation with Governors, State
legislatures, State and local public officials responsible for
administering child welfare programs, and child welfare
advocates, shall—
‘‘(1) develop a set of outcome measures (includ-
ing length of stay in foster care, number of foster care
placements, and number of adoptions) that can be
used to assess the performance of States in operating
child protection and child welfare programs pursuant
to parts B and E to ensure the safety of children;
‘‘(2) to the maximum extent possible, the out-
come measures should be developed from data avail-
able from the Adoption and Foster Care Analysis and
Reporting System;
‘‘(3) develop a system for rating the performance
of States with respect to the outcome measures, and
provide to the States an explanation of the rating sys-
tem and how scores are determined under the rating
system;
‘‘(4) prescribe such regulations as may be nec-
essary to ensure that States provide to the Secretary
the data necessary to determine State performance
with respect to each outcome measure, as a condition
of the State receiving funds under this part; and
‘‘(5) on May 1, 1999, and annually thereafter,
prepare and submit to the Congress a report on the
performance of each State on each outcome measure,
which shall examine the reasons for high performance
and low performance and, where possible, make rec-
ommendations as to how State performance could be
improved.’’.
(b) DEVELOPMENT OF PERFORMANCE-BASED INCEN-
TIVE SYSTEM.—The Secretary of Health and Human Serv-
ices, in consultation with State and local public officials
responsible for administering child welfare programs and
child welfare advocates, shall study, develop, and rec-
ommend to Congress an incentive system to provide pay-
ments under parts B and E of title IV of the Social Security
Act (42 U.S.C. 620 et seq., 670 et seq.) to any State based
on the State’s performance under such a system. Such a
system shall, to the extent the Secretary determines feasible
and appropriate, be based on the annual report required
by section 479A of the Social Security Act (as added by
subsection (a) of this section) or on any proposed modifica-
tions of the annual report. Not later than 6 months after
the date of the enactment of this Act, 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 progress report on the feasibility, timetable, and
consultation process for conducting such a study. Not later
than 15 months after such date of enactment, the Secretary
shall submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance
of the Senate the final report on a performance-based incen-
tive system. The report may include other recommendations
for restructuring the program and payments under parts
B and E of title IV of the Social Security Act.
TITLE III—ADDITIONAL
IMPROVEMENTS AND REFORMS
SEC. 301. EXPANSION OF CHILD WELFARE DEMONSTRA-
TION PROJECTS.
(a) IN GENERAL.—Section 1130(a) of the Social Secu-
rity Act (42 U.S.C. 1320a–9) is amended to read as follows:
‘‘(a) AUTHORITY
TO
APPROVE
DEMONSTRATION
PROJECTS.—
‘‘(1) IN GENERAL.—The Secretary may authorize
States to conduct demonstration projects pursuant to
this section which the Secretary finds are likely to
promote the objectives of part B or E of title IV.
‘‘(2) LIMITATION.—The Secretary may authorize
not more than 10 demonstration projects under para-
graph (1) in each of fiscal years 1998 through 2002.
‘‘(3) CERTAIN TYPES OF PROPOSALS REQUIRED
TO BE CONSIDERED.—
‘‘(A) If an appropriate application therefor
is submitted, the Secretary shall consider author-
izing a demonstration project which is designed
to identify and address barriers that result in
delays to adoptive placements for children in fos-
ter care.
‘‘(B) If an appropriate application therefor
is submitted, the Secretary shall consider author-
‘‘(5) REQUIREMENT
TO
CONSIDER
EFFECT
OF
PROJECT
ON
TERMS
AND
CONDITIONS
OF
CERTAIN
COURT ORDERS.—In considering an application to
conduct a demonstration project under this section
that has been submitted by a State in which there is
in effect a court order determining that the State’s
child welfare program has failed to comply with the
provisions of part B or E of title IV, or with the Con-
stitution of the United States, the Secretary shall take
into consideration the effect of approving the proposed
project on the terms and conditions of the court order
related to the failure to comply.’’.
(b) RULE OF CONSTRUCTION.—Nothing in the amend-
ment made by subsection (a) shall be construed as affecting
the terms and conditions of any demonstration project ap-
proved under section 1130 of the Social Security Act (42
U.S.C. 1320a–9) before the date of the enactment of this
Act.
(c) AUTHORITY TO EXTEND DURATION
OF DEM-
ONSTRATIONS.—Section 1130(d) of such Act (42 U.S.C.
1320a–9(d)) is amended by inserting ‘‘, unless in the judg-
ment of the Secretary, the demonstration project should be
allowed to continue’’ before the period.
SEC. 302. PERMANENCY HEARINGS.
Section 475(5)(C) of the Social Security Act (42
U.S.C. 675(5)(C)) is amended—
(1) by striking ‘‘dispositional’’ and inserting
‘‘permanency’’;
(2) by striking ‘‘eighteen’’ and inserting ‘‘12’’;
(3) by striking ‘‘original placement’’ and insert-
ing ‘‘date the child is considered to have entered foster
care (as determined under subparagraph (F))’’; and
(4) by striking ‘‘future status of’’ and all that
follows through ‘‘long term basis)’’ and inserting
‘‘permanency plan for the child that includes whether,
and if applicable when, the child will be returned to
the parent, placed for adoption and the State will file
a petition for termination of parental rights, or re-
ferred for legal guardianship, or (in cases where the
State agency has documented to the State court a
compelling reason for determining that it would not
be in the best interests of the child to return home, be
referred for termination of parental rights, or be
placed for adoption, with a fit and willing relative,
or with a legal guardian) placed in another planned
permanent living arrangement’’.
SEC. 303. KINSHIP CARE.
(a) REPORT.—
(1) IN GENERAL.—The Secretary of Health and
Human Services shall—
(A) not later than June 1, 1998, convene the
advisory panel provided for in subsection (b)(1)
and prepare and submit to the advisory panel
an initial report on the extent to which children
in foster care are placed in the care of a relative
(in this section referred to as ‘‘kinship care’’);
and
(B) not later than June 1, 1999, submit to
the Committee on Ways and Means of the House
of Representatives and the Committee on Fi-
nance of the Senate a final report on the matter
described in subparagraph (A), which shall—
(i) be based on the comments submitted
by the advisory panel pursuant to sub-
section (b)(2) and other information and
considerations; and
(ii) include the policy recommenda-
tions of the Secretary with respect to the
matter.
(2) REQUIRED CONTENTS.—Each report required
by paragraph (1) shall—
(A) include, to the extent available for each
State, information on—
(i) the policy of the State regarding
kinship care;
(ii) the characteristics of the kinship
care providers (including age, income, eth-
nicity, and race, and the relationship of the
kinship care providers to the children);
(iii) the characteristics of the household
of such providers (such as number of other
persons in the household and family com-
position);
(iv) how much access to the child is af-
forded to the parent from whom the child
has been removed;
(v) the cost of, and source of funds for,
kinship care (including any subsidies such
as medicaid and cash assistance);
(vi) the permanency plan for the child
and the actions being taken by the State to
achieve the plan;
(vii) the services being provided to the
parent from whom the child has been re-
moved; and
(viii) the services being provided to the
kinship care provider; and
(B) specifically note the circumstances or
conditions under which children enter kinship
care.
(b) ADVISORY PANEL.—
(1) ESTABLISHMENT.—The Secretary of Health
and Human Services, in consultation with the Chair-
man of the Committee on Ways and Means of the
House of Representatives and the Chairman of the
Committee on Finance of the Senate, shall convene an
advisory panel which shall include parents, foster
parents, relative caregivers, former foster children,
State and local public officials responsible for admin-
istering child welfare programs, private persons in-
volved in the delivery of child welfare services, rep-
resentatives of tribal governments and tribal courts,
judges, and academic experts.
(2) DUTIES.—The advisory panel convened pur-
suant to paragraph (1) shall review the report pre-
pared pursuant to subsection (a), and, not later than
October 1, 1998, submit to the Secretary comments on
the report.
SEC. 304. CLARIFICATION OF ELIGIBLE POPULATION FOR
INDEPENDENT LIVING SERVICES.
Section 477(a)(2)(A) of the Social Security Act (42
U.S.C. 677(a)(2)(A)) is amended by inserting ‘‘(including
children with respect to whom such payments are no longer
being made because the child has accumulated assets, not
to exceed $5,000, which are otherwise regarded as resources
for purposes of determining eligibility for benefits under
this part)’’ before the comma.
SEC. 305. REAUTHORIZATION AND EXPANSION OF FAMILY
PRESERVATION AND SUPPORT SERVICES.
(a) REAUTHORIZATION
OF FAMILY PRESERVATION
AND SUPPORT SERVICES.—
(1) IN GENERAL.—Section 430(b) of the Social
Security Act (42 U.S.C. 629(b)) is amended—
(A) in paragraph (4), by striking ‘‘or’’ at
the end;
(B) in paragraph (5), by striking the period
and inserting a semicolon; and
(C) by adding at the end the following:
‘‘(6) for fiscal year 1999, $275,000,000;
‘‘(7) for fiscal year 2000, $295,000,000; and
‘‘(8) for fiscal year 2001, $305,000,000.’’.
(2) CONTINUATION OF RESERVATION OF CERTAIN
AMOUNTS.—Paragraphs (1) and (2) of section 430(d)
of the Social Security Act (42 U.S.C. 629(d)(1) and
(2)) are each amended by striking ‘‘and 1998’’ and
inserting ‘‘1998, 1999, 2000, and 2001’’.
(3) CONFORMING AMENDMENTS.—Section 13712
of the Omnibus Budget Reconciliation Act of 1993 (42
U.S.C. 670 note) is amended—
(A) in subsection (c), by striking ‘‘1998’’
each place it appears and inserting ‘‘2001’’; and
(B) in subsection (d)(2), by striking ‘‘and
1998’’ and inserting ‘‘1998, 1999, 2000, and
2001’’.
(b) EXPANSION FOR TIME-LIMITED FAMILY REUNIFI-
CATION SERVICES AND ADOPTION PROMOTION AND SUP-
PORT SERVICES.—
(1) ADDITIONS TO STATE PLAN.—Section 432 of
the Social Security Act (42 U.S.C. 629b) is amend-
ed—
(A) in subsection (a)—
(i) in paragraph (4), by striking ‘‘and
community-based family support services’’
and inserting ‘‘, community-based family
support services, time-limited family reuni-
fication services, and adoption promotion
and support services,’’; and
(ii) in paragraph (5)(A), by striking
‘‘and community-based family support serv-
ices’’ and inserting ‘‘, community-based
family support services, time-limited family
reunification services, and adoption pro-
motion and support services’’; and
(B) in subsection (b)(1), by striking ‘‘and
family support’’ and inserting ‘‘, family support,
time-limited family reunification, and adoption
promotion and support’’.
(2) DEFINITIONS OF TIME-LIMITED FAMILY RE-
UNIFICATION
SERVICES
AND
ADOPTION
PROMOTION
AND SUPPORT SERVICES.—Section 431(a) of the So-
cial Security Act (42 U.S.C. 629a(a)) is amended by
adding at the end the following:
‘‘(7) 
TIME-LIMITED
FAMILY
REUNIFICATION
SERVICES.—
‘‘(A) IN GENERAL.—The term ‘time-limited
family reunification services’ means the services
and activities described in subparagraph (B)
that are provided to a child that is removed from
the child’s home and placed in a foster family
home or a child care institution and to the par-
ents or primary caregiver of such a child, in
order to facilitate the reunification of the child
safely and appropriately within a timely fash-
ion, but only during the 15-month period that
begins on the date that the child, pursuant to
section 475(5)(F), is considered to have entered
foster care.
‘‘(B) 
SERVICES
AND
ACTIVITIES
DE-
SCRIBED.—The services and activities described
in this subparagraph are the following:
‘‘(i) Individual, group, and family
counseling.
‘‘(ii) Inpatient, residential, or out-
patient substance abuse treatment services.
‘‘(iii) Mental health services.
‘‘(iv) Assistance to address domestic vi-
olence.
‘‘(v) Services designed to provide tem-
porary child care and therapeutic services
for families, including crisis nurseries.
‘‘(vi) Transportation to or from any of
the services and activities described in this
subparagraph.
‘‘(8) ADOPTION PROMOTION AND SUPPORT SERV-
ICES.—The term ‘adoption promotion and support
services’ means services and activities designed to en-
courage more adoptions out of the foster care system,
when adoptions promote the best interests of children,
including such activities as pre-and post-adoptive
services and activities designed to expedite the adop-
tion process and support adoptive families.’’.
(3) ADDITIONAL CONFORMING AMENDMENTS.—
(A) PURPOSES.—Section 430(a) of the So-
cial Security Act (42 U.S.C. 629(a)) is amended
by striking ‘‘and community-based family sup-
port services’’ and inserting ‘‘, community-based
family support services, time-limited family re-
unification services, and adoption promotion
and support services’’.
(B) PROGRAM TITLE.—The heading of sub-
part 2 of part B of title IV of the Social Security
Act (42 U.S.C. 629 et seq.) is amended to read
as follows:
‘‘Subpart 2—Promoting Safe and Stable Families’’.
(c) EMPHASIZING THE SAFETY OF THE CHILD.—
(1) REQUIRING ASSURANCES THAT THE SAFETY
OF CHILDREN SHALL BE OF PARAMOUNT CONCERN.—
Section 432(a) of the Social Security Act (42 U.S.C.
629b(a)) is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (7);
(B) by striking the period at the end of
paragraph (8); and
(C) by adding at the end the following:
‘‘(9) contains assurances that in administering
and conducting service programs under the plan, the
safety of the children to be served shall be of para-
mount concern.’’.
(2) DEFINITIONS OF FAMILY PRESERVATION AND
FAMILY SUPPORT SERVICES.—Section 431(a) of the
Social Security Act (42 U.S.C. 629a(a)) is amend-
ed—
(A) in paragraph (1)—
(i) in subparagraph (A), by inserting
‘‘safe and’’ before ‘‘appropriate’’ each place
it appears; and
(ii) in subparagraph (B), by inserting
‘‘safely’’ after ‘‘remain’’; and
(B) in paragraph (2)—
(i) by inserting ‘‘safety and’’ before
‘‘well-being’’; and
(ii) by striking ‘‘stable’’ and inserting
‘‘safe, stable,’’.
(d) CLARIFICATION OF MAINTENANCE OF EFFORT RE-
QUIREMENT.—
(1) DEFINITION OF NON-FEDERAL FUNDS.—Sec-
tion 431(a) of the Social Security Act (42 U.S.C.
629a(a)), as amended by subsection (b)(2), is amend-
ed by adding at the end the following:
‘‘(9) NON-FEDERAL FUNDS.—The term ‘non-Fed-
eral funds’ means State funds, or at the option of a
State, State and local funds.’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) takes effect as if included in the enact-
ment of section 13711 of the Omnibus Budget Rec-
onciliation Act of 1993 (Public Law 103–33; 107
Stat. 649).
SEC. 306. HEALTH INSURANCE COVERAGE FOR CHILDREN
WITH SPECIAL NEEDS.
Section 471(a) of the Social Security Act (42 U.S.C.
671(a)), as amended by section 106, is amended—
(1) in paragraph (19), by striking ‘‘and’’ at the
end;
(2) in paragraph (20), by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(21) provides for health insurance coverage (in-
cluding, at State option, through the program under
the State plan approved under title XIX) for any
child who has been determined to be a child with spe-
cial needs, for whom there is in effect an adoption as-
sistance agreement (other than an agreement under
this part) between the State and an adoptive parent
or parents, and who the State has determined cannot
be placed with an adoptive parent or parents without
medical assistance because such child has special
needs for medical, mental health, or rehabilitative
care, and that with respect to the provision of such
health insurance coverage—
‘‘(A) such coverage may be provided through
1 or more State medical assistance programs;
‘‘(B) the State, in providing such coverage,
shall ensure that the medical benefits, including
mental health benefits, provided are of the same
type and kind as those that would be provided
for children by the State under title XIX;
‘‘(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 serv-
ices under such other program, any such child
shall be deemed to be receiving aid or assistance
under the State plan under this part for pur-
poses of section 1902(a)(10)(A)(i)(I); and
‘‘(D) in determining cost-sharing require-
ments, the State shall take into consideration the
circumstances of the adopting parent or parents
and the needs of the child being adopted consist-
ent, 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 CHIL-
DREN 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 adoption, 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 subpara-
graphs (A) and (B) but would meet such requirements if
the child were treated as if the child were in the same finan-
cial and other circumstances 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 para-
graph (1)(B)(ii).’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall only apply to children who are adopted
on or after October 1, 1997.
SEC. 308. STATE STANDARDS TO ENSURE QUALITY SERV-
ICES 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 stand-
ards 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 chil-
dren.’’.
TITLE IV—MISCELLANEOUS
SEC. 401. PRESERVATION OF REASONABLE PARENTING.
Nothing in this Act is intended to disrupt the family
unnecessarily or to intrude inappropriately into family life,
to prohibit the use of reasonable methods of parental dis-
cipline, 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 Adop-
tion and Foster Care Analysis and Reporting System estab-
lished 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 Re-
porting System as may be necessary to allow States to ob-
tain 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 pa-
rental rights, to designate a standby guardian for the par-
ent’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 pe-
riod.
(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
REMIT-
TANCES.—
‘‘(i) IN GENERAL.—The amount other-
wise required by subparagraph (A) to be re-
mitted 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 adjust-
ment 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—