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(i) be based on the comments submitted
by the advisory panel pursuant to subsection
(b)(2) and other information and consider-
ations; and
(ii) include the policy recommendations 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 kin-
ship care;
(ii) the characteristics of the kinship care
providers (including age, income, ethnicity, 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 per-
sons in the household and family composition);
(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);
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(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 removed;
and
(viii) the services being provided to the
kinship care provider; and
(B) specifically note the circumstances or con-
ditions under which children enter kinship care.
(b) ADVISORY PANEL.—
(1) ESTABLISHMENT.—The Secretary of Health
and Human Services, in consultation with the Chairman
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 administering child welfare pro-
grams, private persons involved in the delivery of child
welfare services, representatives of tribal governments
and tribal courts, judges, and academic experts.
(2) DUTIES.—The advisory panel convened pursu-
ant to paragraph (1) shall review the report prepared
pursuant to subsection (a), and, not later than October
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1, 1998, submit to the Secretary comments on the re-
port.
SEC. 304. CLARIFICATION OF ELIGIBLE POPULATION FOR INDE-
PENDENT 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 Se-
curity 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.’’.
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(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 REUNIFICA-
TION SERVICES AND ADOPTION PROMOTION AND SUPPORT
SERVICES.—
(1) ADDITIONS TO STATE PLAN.—Section 432 of
the Social Security Act (42 U.S.C. 629b) is amended—
(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 reunification serv-
ices, and adoption promotion and support serv-
ices,’’; and
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(ii) in paragraph (5)(A), by striking ‘‘and
community-based family support services’’ and
inserting ‘‘, community-based family support
services, time-limited family reunification serv-
ices, and adoption promotion and support serv-
ices’’; and
(B) in subsection (b)(1), by striking ‘‘and fam-
ily support’’ and inserting ‘‘, family support, time-
limited family reunification, and adoption promotion
and support’’.
(2) DEFINITIONS OF TIME-LIMITED FAMILY REUNI-
FICATION
SERVICES
AND
ADOPTION
PROMOTION
AND
SUPPORT SERVICES.—Section 431(a) of the Social Secu-
rity Act (42 U.S.C. 629a(a)) is amended by adding at
the end the following:
‘‘(7) TIME-LIMITED FAMILY REUNIFICATION SERV-
ICES.—
‘‘(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 parents or primary
caregiver of such a child, in order to facilitate the
reunification of the child safely and appropriately
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within a timely fashion, 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 DESCRIBED.—
The services and activities described in this sub-
paragraph are the following:
‘‘(i) Individual, group, and family counsel-
ing.
‘‘(ii) Inpatient, residential, or outpatient
substance abuse treatment services.
‘‘(iii) Mental health services.
‘‘(iv) Assistance to address domestic vio-
lence.
‘‘(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 sub-
paragraph.
‘‘(8) ADOPTION PROMOTION AND SUPPORT SERV-
ICES.—The term ‘adoption promotion and support serv-
ices’ means services and activities designed to encourage
more adoptions out of the foster care system, when
adoptions promote the best interests of children, includ-
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ing such activities as pre-and post-adoptive services and
activities designed to expedite the adoption process and
support adoptive families.’’.
(3) ADDITIONAL CONFORMING AMENDMENTS.—
(A) PURPOSES.—Section 430(a) of the Social
Security Act (42 U.S.C. 629(a)) is amended by
striking ‘‘and community-based family support serv-
ices’’ and inserting ‘‘, community-based family sup-
port services, time-limited family reunification serv-
ices, and adoption promotion and support services’’.
(B) PROGRAM TITLE.—The heading of subpart
2 of part B of title IV of the Social Security Act
(42 U.S.C. 629 et seq.) is amended to read as fol-
lows:
‘‘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.—Sec-
tion 432(a) of the Social Security Act (42 U.S.C.
629b(a)) is amended—
(A) by striking ‘‘and’’ at the end of paragraph
(7);
(B) by striking the period at the end of para-
graph (8); and
(C) by adding at the end the following:
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‘‘(9) contains assurances that in administering and
conducting service programs under the plan, the safety
of the children to be served shall be of paramount con-
cern.’’.
(2) DEFINITIONS OF FAMILY PRESERVATION AND
FAMILY SUPPORT SERVICES.—Section 431(a) of the So-
cial Security Act (42 U.S.C. 629a(a)) is amended—
(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.—Section
431(a) of the Social Security Act (42 U.S.C. 629a(a)),
as amended by subsection (b)(2), is amended by adding
at the end the following:
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‘‘(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 Reconcili-
ation 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 special needs, for
whom there is in effect an adoption assistance agree-
ment (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 adop-
tive parent or parents without medical assistance be-
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cause 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 pro-
gram 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 cir-
cumstances 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.’’.
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SEC. 307. CONTINUATION OF ELIGIBILITY FOR ADOPTION AS-
SISTANCE 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 eligi-
ble for adoption assistance payments under this part with re-
spect to a prior adoption, who is available for adoption be-
cause the prior adoption has been dissolved and the parental
rights of the adoptive parents have been terminated or be-
cause 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 circumstances
the child was in the last time the child was determined eligi-
ble 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 sub-
section (a) shall only apply to children who are adopted on
or after October 1, 1997.
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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 pub-
lic 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 un-
necessarily or to intrude inappropriately into family life, to
prohibit 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 Adop-
tion and Foster Care Analysis and Reporting System estab-
lished pursuant to section 479 of the Social Security Act (42
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U.S.C. 679), to the extent such data is available under that
system. The Secretary shall make such modifications to regu-
lations issued under section 479 of such Act with respect to
the Adoption and Foster Care Analysis and Reporting Sys-
tem 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 GUARD-
IANSHIP.
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 par-
ent.
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.
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(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 fis-
cal year, multiplied by the adjustment per-
centage 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.
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‘‘(iii) 
ADJUSTMENT
PERCENTAGE.—As
used in clause (i), the term ‘adjustment per-
centage’ means, with respect to a State and a
fiscal year—
‘‘(I) the unadjusted net payment to
the State for the fiscal year; divided by
‘‘(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 OPER-
ATION 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 op-
eration of the Contingency Fund for State Welfare Programs.
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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 Administration and the Administration for Children
and Families in the Department of Health of Human Serv-
ices, shall prepare and submit to the Committee on Ways and
Means of the House of Representatives 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 wel-
fare population, the types of services provided to such popu-
lation, 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 im-
prove coordination in providing such services to such popu-
lation.
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 as-
sistance to, or entering into any contract with, any entity
using funds made available under this Act, the head of each
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Federal agency, to the greatest extent practicable, shall pro-
vide to such entity a notice describing the statement made in
subsection (a) by the Congress.
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 enactment of this Act.
(b) DELAY PERMITTED
IF STATE LEGISLATION RE-
QUIRED.—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 legis-
lation (other than legislation 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,
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each year of such session shall be deemed to be a separate
regular session of the State legislature.
Attest:
Clerk.