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subsection (a) and has remained in voluntary place-
ment for a period in excess of 180 days, unless there
has been a judicial determination by a court of com-
petent jurisdiction (within the first 180 days of such
placement) that such placement is in the best inter-
ests of the child.
‘‘(3) DEEMED REVOCATION OF AGREEMENTS.—
In any case where—
‘‘(A) the placement of a minor child in fos-
ter care occurred pursuant to a voluntary place-
ment agreement entered into by the parents or
guardians of such child as provided in sub-
section (a); and
‘‘(B) such parents or guardians request (in
such manner and form as the Secretary may
prescribe) that the child be returned to their
home or to the home of a relative,
the voluntary placement agreement shall be deemed
to be revoked unless the State opposes such request
and obtains a judicial determination, by a court of
competent jurisdiction, that the return of the child
to such home would be contrary to the child’s best
interests.
‘‘(d) ELIGIBILITY FOR MEDICAL ASSISTANCE.—For
purposes of titles XIX and XX, any child with respect to
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whom foster care maintenance payments are made under
this section is deemed to be a recipient of cash assistance
under part A of this title. For the purposes of the preced-
ing sentence, a child whose costs in a foster family home
or child-care institution are covered by the foster care
maintenance payments being made with respect to his or
her minor parent, as provided in section 426(6)(B), shall
be considered a child with respect to whom foster care
maintenance payments are made under this section.’’.
(d) ADOPTION ASSISTANCE PROGRAM.—Section 473
of such Act (42 U.S.C. 673) is amended to read as follows:
‘‘SEC. 473. REQUIREMENTS FOR ADOPTION ASSISTANCE
PAYMENTS.
‘‘(a) IN GENERAL.—A State operating a program
under this part shall enter into adoption assistance agree-
ments with the adoptive parents of children with special
needs.
‘‘(b) PAYMENTS UNDER AGREEMENTS.—
‘‘(1) IN GENERAL.—Under any adoption assist-
ance agreement entered into by a State with parents
who adopt a child with special needs, the State—
‘‘(A) shall make payments of nonrecurring
adoption expenses incurred by or on behalf of
such parents in connection with the adoption of
such child, directly through the State agency or
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through another public or nonprofit private
agency, in amounts determined under sub-
section (e), and
‘‘(B) in any case where the child meets the
requirements of subsection (d), may make adop-
tion assistance payments to such parents, di-
rectly through the State agency or through an-
other public or nonprofit private agency, in
amounts so determined.
‘‘(2) DEFINITION OF NONRECURRING ADOPTION
EXPENSES.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(A), the term ‘nonrecurring adoption
expenses’ means reasonable and necessary
adoption fees, court costs, attorney fees, and
other expenses which are directly related to the
legal adoption of a child with special needs and
which are not incurred in violation of State or
Federal law.
‘‘(B) TREATMENT AS AN ADMINISTRATIVE
EXPENSE.—A State’s payment of nonrecurring
adoption expenses under an adoption assistance
agreement shall be treated as an expenditure
made for the proper and efficient administra-
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tion of the State plan for purposes of section
474(a)(3)(E).
‘‘(c) ELIGIBILITY FOR MEDICAL ASSISTANCE.—For
purposes of titles XIX and XX, any child—
‘‘(1)(A) who is a child described in subsection
(b), and
‘‘(B) with respect to whom an adoption assist-
ance agreement is in effect under this section
(whether or not adoption assistance payments are
provided under the agreement or are being made
under this section), including any such child who has
been placed for adoption in accordance with applica-
ble State and local law (whether or not an interlocu-
tory or other judicial decree of adoption has been is-
sued), or
‘‘(2) with respect to whom foster care mainte-
nance payments are being made under section 472,
is deemed to be a recipient of cash assistance under part
A of this title in the State where such child resides. For
purposes of the preceding sentence, a child whose costs
in a foster family home or child-care institution are cov-
ered by the foster care maintenance payments being made
with respect to his or her minor parent, as provided in
section 426(6)(B), shall be considered a child with respect
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to whom foster care maintenance payments are being
made under section 472.
‘‘(d) CHILDREN WITH SPECIAL NEEDS.—For pur-
poses of subsection (b)(1)(B), a child meets the require-
ments of this subsection if such child—
‘‘(1)(A) at the time adoption proceedings were
initiated, met the requirements of section 406(a) (as
in effect on the day before the date of the enactment
of the Personal Responsibility and Work Oppor-
tunity Act of 1996) or section 407 (as so in effect)
or would have met such requirements except for
such child’s removal from the home of a relative
(specified in section 406(a) (as so in effect)), either
pursuant to a voluntary placement agreement with
respect to which Federal payments are provided
under section 474 (or 403 (as so in effect)) or as
a result of a judicial determination to the effect that
continuation therein would be contrary to the wel-
fare of such child;
‘‘(B) meets all of the requirements of title XVI
with respect to eligibility for supplemental security
income benefits; or
‘‘(C) is a child whose costs in a foster family
home or child-care institution are covered by the fos-
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ter care maintenance payments being made with re-
spect to his or her minor parent;
‘‘(2)(A) would have received aid under the eligi-
bility standards under the State plan approved
under section 402 (as in effect on the day before the
date of the enactment of this part, adjusted for in-
flation, in accordance with regulations issued by the
Secretary) in or for the month in which such agree-
ment was entered into or court proceedings leading
to the removal of such child from the home were ini-
tiated;
‘‘(B) would have received such aid in or for
such month if application had been made therefor,
or had been living with a relative specified in section
406(a) (as so in effect) within 6 months prior to the
month in which such agreement was entered into or
such proceedings were initiated, and would have re-
ceived such aid in or for such month if in such
month such child had been living with such a rel-
ative and application therefor had been made; or
‘‘(C) is a child described in subparagraph (A)
or (B); and
‘‘(3) has been determined by the State, pursu-
ant to subsection (h) of this section, to be a child
with special needs.
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‘‘(e) DETERMINATION OF PAYMENTS.—The amount
of the payments to be made in any case under subsection
(b) shall be determined through agreement between the
adoptive parents and the State or a public or nonprofit
private agency administering the program under this part,
which shall take into consideration the circumstances of
the adopting parents and the needs of the child being
adopted, and may be readjusted periodically, with the con-
currence of the adopting parents (which may be specified
in the adoption assistance agreement), depending upon
changes in such circumstances. However, in no case may
the amount of the adoption assistance payment exceed the
foster care maintenance payment which would have been
paid during the period if the child with respect to whom
the adoption assistance payment is made had been in a
foster family home.
‘‘(f) PAYMENT EXCEPTION.—Notwithstanding sub-
section (e), no payment may be made to parents with re-
spect to any child who has attained the age of 18 (or,
where the State determines that the child has a mental
or physical disability which warrants the continuation of
assistance, the age of 21), and no payment may be made
to parents with respect to any child if the State determines
that the parents are no longer legally responsible for the
support of the child or if the State determines that the
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child is no longer receiving any support from such parents.
Parents who have been receiving adoption assistance pay-
ments under this part shall keep the State or public or
nonprofit private agency administering the program under
this part informed of circumstances which would, pursu-
ant to this section, make them ineligible for such assist-
ance payments, or eligible for assistance payments in a
different amount.
‘‘(g) PREADOPTION PAYMENTS.—For purposes of
this part, individuals with whom a child who has been de-
termined by the State, pursuant to subsection (h), to be
a child with special needs is placed for adoption in accord-
ance with applicable State and local law shall be eligible
for adoption assistance payments during the period of the
placement, on the same terms and subject to the same
conditions as if such individuals had adopted such child.
‘‘(h) DETERMINATION
OF CHILD WITH SPECIAL
NEEDS.—For purposes of this section, a child shall not
be considered a child with special needs unless—
‘‘(1) the State has determined that the child
cannot or should not be returned to the home of the
child’s parents; and
‘‘(2) the State had first determined—
‘‘(A) that there exists with respect to the
child a specific factor or condition such as the
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child’s ethnic background, age, or membership
in a minority or sibling group, or the presence
of factors such as medical conditions or phys-
ical, mental, or emotional handicaps because of
which it is reasonable to conclude that such
child cannot be placed with adoptive parents
without providing adoption assistance under
this part or medical assistance under title XIX;
and
‘‘(B) that, except where it would be
against the best interests of the child because
of such factors as the existence of significant
emotional ties with prospective adoptive parents
while in the care of such parents as a foster
child, a reasonable, but unsuccessful, effort has
been made to place the child with appropriate
adoptive parents without providing adoption as-
sistance under this section or medical assistance
under title XIX.’’.
(e) PAYMENTS
TO
STATES; ALLOTMENTS
TO
STATES.—Section 474 of such Act (42 U.S.C. 674) is
amended to read as follows:
‘‘SEC. 474. PAYMENTS TO STATES; ALLOTMENTS TO STATES.
‘‘(a) FOSTER CARE, ADOPTION ASSISTANCE, AND
INDEPENDENT LIVING PROGRAMS PAYMENTS.—Each eli-
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gible State, as determined under section 471, shall be enti-
tled to receive from the Secretary for each quarter of each
fiscal year a payment equal to the sum of—
‘‘(1) an amount equal to the Federal medical
assistance percentage (as defined in section 1905(b)
of this Act as in effect on the day before the date
of the enactment of the Personal Responsibility and
Work Opportunity Act of 1996) of the total amount
expended during such quarter as foster care mainte-
nance payments under the child protection program
under this part for children in foster family homes
or child-care institutions; plus
‘‘(2) an amount equal to the Federal medical
assistance percentage (as defined in section 1905(b)
of this Act (as so in effect)) of the total amount ex-
pended during such quarter as adoption assistance
payments under the child protection program under
this part pursuant to adoption assistance agree-
ments; plus
‘‘(3) an amount equal to the sum of the follow-
ing proportions of the total amounts expended dur-
ing such quarter as found necessary by the Sec-
retary for the provision of child placement services
and for the proper and efficient administration of
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the State foster care and adoption assistance pro-
gram—
‘‘(A) 75 percent of so much of such ex-
penditures as are for the training (including
both short and long-term training at edu-
cational institutions through grants to such in-
stitutions or by direct financial assistance to
students enrolled in such institutions) of per-
sonnel employed or preparing for employment
by the State agency or by the local agency ad-
ministering the plan in the political subdivision;
‘‘(B) 75 percent of so much of such ex-
penditures (including travel and per diem ex-
penses) as are for the short-term training of
current or prospective foster or adoptive par-
ents and the members of the staff of State-li-
censed or State-approved child care institutions
providing care to foster and adopted children
receiving assistance under this part, in ways
that increase the ability of such current or pro-
spective parents, staff members, and institu-
tions to provide support and assistance to foster
and adopted children, whether incurred directly
by the State or by contract;
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‘‘(C) 50 percent (or, if the quarter is in
fiscal year 1997, 75 percent) of so much of
such expenditures as are for the planning, de-
sign, development, or installation of statewide
mechanized data collection and information re-
trieval systems (including 50 percent (or, if the
quarter is in fiscal year 1997, 75 percent) of
the full amount of expenditures for hardware
components for such systems) but only to the
extent that such systems—
‘‘(i) meet the requirements imposed
by regulations;
‘‘(ii) to the extent practicable, are ca-
pable of interfacing with the State data
collection system that collects information
relating to child abuse and neglect;
‘‘(iii) to the extent practicable, have
the capability of interfacing with, and re-
trieving information from, the State data
collection system that collects information
relating to the eligibility of individuals
under part A (for the purposes of facilitat-
ing verification of eligibility of foster chil-
dren); and
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‘‘(iv) are determined by the Secretary
to be likely to provide more efficient, eco-
nomical, and effective administration of
the programs carried out under a State
plan approved under this part;
‘‘(D) 50 percent of so much of such ex-
penditures as are for the operation of the state-
wide mechanized data collection and informa-
tion retrieval systems referred to in subpara-
graph (C); and
‘‘(E) one-half of the remainder of such ex-
penditures; plus
‘‘(4) an amount equal to the sum of—
‘‘(A) so much of the amounts expended by
such State to carry out a program under sec-
tion 476, as do not exceed the basic amount for
such State determined under subsection (e)(1)
of such section; and
‘‘(B) the lesser of—
‘‘(i) 
one-half 
of 
any 
additional
amounts expended by such State for such
programs; or
‘‘(ii) the maximum additional amount
for such State under subsection (e)(1) of
such section.
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‘‘(b) AUTOMATED
DATA
COLLECTION
EXPENDI-
TURES.—The Secretary shall treat as necessary for the
proper and efficient administration of the State plan all
expenditures of a State necessary in order for the State
to plan, design, develop, install, and operate data collec-
tion and information retrieval systems, without regard to
whether the systems may be used with respect to foster
or adoptive children other than those on behalf of whom
foster care maintenance payments or adoption assistance
payments may be made under this part.
‘‘(c) ESTIMATES BY THE SECRETARY.—
‘‘(1) IN GENERAL.—The Secretary shall, prior
to the beginning of each quarter, estimate the
amount which a State will be entitled to receive
under subsection (a) for such quarter, such esti-
mates to be based on—
‘‘(A) a report filed by the State containing
its estimate of the total sum to be expended in
such quarter in accordance with subsection (a),
and stating the amount appropriated or made
available by the State and its political subdivi-
sions for such expenditures in such quarter, and
if such amount is less than the State’s propor-
tionate share of the total sum of such estimated
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expenditures, the source or sources from which
the difference is expected to be derived;
‘‘(B) records showing the number of chil-
dren in the State receiving assistance under
this part; and
‘‘(C) such other information as the Sec-
retary may find necessary.
‘‘(2) PAYMENTS.—The Secretary shall pay to
the States the amounts so estimated under para-
graph (1), reduced or increased to the extent of any
overpayment or underpayment which the Secretary
determines was made under this subsection to such
State for any prior quarter and with respect to
which adjustment has not already been made under
this subsection.
‘‘(3) PRO RATA SHARE.— The pro rata share to
which the United States is equitably entitled, as de-
termined by the Secretary, of the net amount recov-
ered during any quarter by the State or any political
subdivision thereof with respect to foster care and
adoption assistance furnished under this part shall
be considered an overpayment to be adjusted under
this subsection.
‘‘(d) ALLOWANCE OR DISALLOWANCE OF CLAIM.—
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‘‘(1) IN GENERAL.—Within 60 days after re-
ceipt of a State claim for expenditures pursuant to
subsection (b)(1), the Secretary shall allow, disallow,
or defer such claim.
‘‘(2) NOTICE.—Within 15 days after a decision
to defer a State claim, the Secretary shall notify the
State of the reasons for the deferral and of the addi-
tional information necessary to determine the allow-
ability of the claim.
‘‘(3) DECISION.—Within 90 days after receiving
such necessary information (in readily reviewable
form), the Secretary shall—
‘‘(A) disallow the claim, if able to complete
the review and determine that the claim is not
allowable; or
‘‘(B) in any other case, allow the claim,
subject to disallowance (as necessary)—
‘‘(i) upon completion of the review, if
it is determined that the claim is not allow-
able; or
‘‘(ii) on the basis of findings of an
audit or financial management review.’’.
(f) DEFINITIONS.—Section 475 of such Act (42
U.S.C. 675) is amended to read as follows:
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‘‘SEC. 475. DEFINITIONS.
For definitions of terms used in this part, see section
426.’’.
(g) TECHNICAL ASSISTANCE; DATA COLLECTION
AND EVALUATION.—Part E of title IV of such Act is
amended by striking section 476.
(h) INDEPENDENT LIVING INITIATIVES.—Part E of
title IV of such Act (42 U.S.C. 670 et seq.), as amended
by subsection (g) of this section, is amended—
(1) by redesignating section 477 as section 476;
and
(2) by amending section 476, as so redesig-
nated, to read as follows:
‘‘SEC. 476. REQUIREMENTS FOR INDEPENDENT LIVING
PROGRAMS.
‘‘(a) PAYMENTS FOR INDEPENDENT LIVING PRO-
GRAMS.—
‘‘(1) IN GENERAL.—Payments shall be made in
accordance with this section for the purpose of as-
sisting States and localities in establishing and car-
rying out programs designed to assist children de-
scribed in paragraph (2) who have attained age 16
in making the transition from foster care to inde-
pendent living. Any State which provides for the es-
tablishment and carrying out of one or more such
programs in accordance with this section for a fiscal
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year shall be entitled to receive payments under this
section for such fiscal year, in an amount deter-
mined under subsection (e).
‘‘(2) PROGRAM
REQUIREMENTS.—A program
established and carried out under paragraph (1)—
‘‘(A) shall be designed to assist children
with respect to whom foster care maintenance
payments are being made by the State under
this part;
‘‘(B) may at the option of the State also
include any or all other children in foster care
under the responsibility of the State; and
‘‘(C) may at the option of the State also
include any child who has not attained age 21
to whom foster care maintenance payments
were previously made by a State under this part
and whose payments were discontinued on or
after the date such child attained age 16, and
any child who previously was in foster care de-
scribed in subparagraph (B) and for whom such
care was discontinued on or after the date such
child attained age 16; and a written transitional
independent living plan of the type described in
subsection (d)(6) shall be developed for such
child as a part of such program.
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‘‘(b) USE OF FUNDS.—Payment under this section
shall be made to the State, and shall be used for the pur-
pose of conducting and providing in accordance with this
section (directly or under contracts with local govern-
mental entities or private nonprofit organizations) the ac-
tivities and services required to carry out the program or
programs involved.
‘‘(c) SUBMISSION OF PROGRAM DESCRIPTION AND
ASSURANCES.—In order for a State to receive payments
under this section for any fiscal year, the State, prior to
February 1 of such fiscal year, must submit to the Sec-
retary, in such manner and form as the Secretary may
prescribe, a description of the program together with satis-
factory assurances that the program will be operated in
an effective and efficient manner and will otherwise meet
the requirements of this section.
‘‘(d) PROGRAM OBJECTIVES.—In carrying out the
purpose described in subsection (a), it shall be the objec-
tive of each program established under this section to help
the individuals participating in such program to prepare
to live independently upon leaving foster care. Such pro-
grams may include (subject to the availability of funds)
programs to—
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‘‘(1) enable participants to seek a high school
diploma or its equivalent or to take part in appro-
priate vocational training;
‘‘(2) provide training in daily living skills, budg-
eting, locating and maintaining housing, and career
planning;
‘‘(3) provide for individual and group counsel-
ing;
‘‘(4) integrate and coordinate services otherwise
available to participants;
‘‘(5) provide for the establishment of outreach
programs designed to attract individuals who are eli-
gible to participate in the program;
‘‘(6) provide each participant a written transi-
tional independent living plan which shall be based
on an assessment of his needs, and which shall be
incorporated into his case plan, as defined in section
426(3); and
‘‘(7) provide participants with other services
and assistance designed to improve their transition
to independent living.
‘‘(e) DETERMINATION OF PAYMENTS.—
‘‘(1) BASIC AMOUNT.—
‘‘(A) IN GENERAL.—The basic amount to
which a State shall be entitled under section
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474(a)(4) for a fiscal year shall be an amount
which bears the same ratio to the basic ceiling
for such fiscal year as such State’s average
number of children receiving foster care mainte-
nance payments under part E in fiscal year
1984 bore to the total of the average number
of children receiving such payments under such
part for all States for fiscal year 1984.
‘‘(B) MAXIMUM
ADDITIONAL
AMOUNT.—
The maximum additional amount to which a
State shall be entitled under section 474(a)(4)
for a fiscal year shall be an amount which bears
the same ratio to the additional ceiling for such
fiscal year as the basic amount of such State
bears to $45,000,000.
‘‘(C) DEFINITIONS.—For purposes of this
section:
‘‘(i) BASIC CEILING.—The term ‘basic
ceiling’ 
means, 
for 
any 
fiscal 
year,
$45,000,000.
‘‘(ii) 
ADDITIONAL
CEILING.—The
term ‘additional ceiling’ means, for any fis-
cal year, $25,000,000.
‘‘(2) REALLOCATION OF FUNDS.—If any State
does not apply for funds under this section for any
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fiscal year within the time provided in subsection
(c), the funds to which such State would have been
entitled for such fiscal year shall be reallocated to
one or more other States on the basis of their rel-
ative need for additional payments under this section
(as determined by the Secretary).
‘‘(3) SUPPLEMENT
TO
OTHER
FUNDS.—Any
amounts payable to States under this section shall
be in addition to amounts payable to States under
paragraphs (1), (2), and (3) of section 474(a), and
shall supplement and not replace any other funds
which may be available for the same general pur-
poses in the localities involved.
‘‘(f) LIMITATION
ON USE
OF FUNDS.—Payments
made to a State under this section for any fiscal year—
‘‘(1) shall be used only for the specific purposes
described in this section;
‘‘(2) may not be used for the provision of room
or board;
‘‘(3) may be made on an estimated basis in ad-
vance of the determination of the exact amount, with
appropriate subsequent adjustments to take account
of any error in the estimates; and
‘‘(4) shall be expended by such State in such
fiscal year or in the succeeding fiscal year.
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‘‘(g) REPORTING REQUIREMENTS.—Not later than
the first January 1 following the end of each fiscal year,
each State shall submit to the Secretary a report on the
programs carried out during such fiscal year with the
amounts received under this section. Such report shall be
in such form and contain such information as may be nec-
essary to provide an accurate description of such activities,
to provide a complete record of the purposes for which
the funds were spent, and to indicate the extent to which
the expenditure of such funds succeeded in accomplishing
the purpose described in subsection (a).
‘‘(h) ASSISTANCE NOT CONSIDERED INCOME OR RE-
SOURCES.—Notwithstanding any other provision of this
title, payments made and services provided to participants
in a program under this section, as a direct consequence
of their participation in such program, shall not be consid-
ered as income or resources for purposes of determining
eligibility (or the eligibility of any other persons) for as-
sistance under the State’s plan approved under this part
or part A, or for purposes of determining the level of such
assistance.’’.
(i) COLLECTION OF DATA RELATING TO ADOPTION
AND FOSTER CARE.—Part E of title IV of such Act (42
U.S.C. 670 et seq.) is amended—
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(1) by redesignating section 479 as section 477;
and
(2) by amending section 477, as so redesig-
nated, to read as follows:
‘‘SEC. 477. COLLECTION OF DATA RELATING TO ADOPTION
AND FOSTER CARE.
‘‘For requirements with respect to the collection of
data relating to adoption and foster care, see section
424.’’.
Subchapter C—Miscellaneous
SEC. 4721. SECRETARIAL SUBMISSION OF LEGISLATIVE
PROPOSAL FOR TECHNICAL AND CONFORM-
ING AMENDMENTS.
Not later than 90 days after the date of the enact-
ment of this chapter, the Secretary of Health and Human
Services, in consultation, as appropriate, with the heads
of other Federal agencies, shall submit to the appropriate
committees of Congress a legislative proposal providing for
such technical and conforming amendments in the law as
are required by the provisions of this chapter.
SEC. 4722. SENSE OF THE CONGRESS REGARDING TIMELY
ADOPTION OF CHILDREN.
It is the sense of the Congress that—
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(1) too many children who wish to be adopted
are spending inordinate amounts of time in foster
care;
(2) there is an urgent need for States to in-
crease the number of waiting children being adopted
in a timely and lawful manner;
(3) studies have shown that States spend an ex-
cess of $15,000 each year on each special needs
child in foster care, and would save significant
amounts of money if they offered incentives to fami-
lies to adopt special needs children;
(4) States should allocate sufficient funds under
this subtitle for adoption assistance and medical as-
sistance to encourage more families to adopt chil-
dren who otherwise would languish in the foster care
system for a period that many experts consider det-
rimental to their development;
(5) States should offer incentives for families
that adopt special needs children to make adoption
more affordable for middle-class families;
(6) when it is necessary for a State to remove
a child from the home of the child’s biological par-
ents, the State should strive—
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(A) to provide the child with a single foster
care placement and a single coordinated case
team; and
(B) to conclude an adoption of the child,
when adoption is the goal of the child and the
State, within one year of the child’s placement
in foster care; and
(7) States should participate in local, regional,
or national programs to enable maximum visibility of
waiting children to potential parents. Such programs
should include a nationwide, interactive computer
network to disseminate information on children eligi-
ble for adoption to help match them with families
around the country.
SEC. 4723. REMOVAL OF BARRIERS TO INTERETHNIC ADOP-
TION.
(a) STATE PLAN REQUIREMENTS.—Section 422(a)
of the Social Security Act (42 U.S.C 622(a)), as added
by section 4701 of this Act, is amended by adding at the
end the following:
‘‘(15) CERTIFICATION REGARDING REMOVAL OF
BARRIERS TO INTERETHNIC ADOPTION.—A certifi-
cation that, not later than January 1, 1997, the
State has in effect such laws and procedures as may
be necessary to ensure that neither the State nor
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any other entity in the State that receives funds
from the Federal Government and is involved in
adoption or foster care placements may—
‘‘(A) deny to any person the opportunity to
become an adoptive or a foster parent, on the
basis of the race, color, or national origin of the
person, or of the child, involved; or
‘‘(B) delay or deny the placement of a
child for adoption or into foster care, on the
basis of the race, color, or national origin of the
adoptive or foster parent, or the child, in-
volved.’’.
(b) ENFORCEMENT.—Section 423(e) of such Act (42
U.S.C. 623(e)), as added by section 4701 of this Act, is
amended by redesignating paragraphs (5), (6), and (7) as
paragraphs (6), (7), and (8), respectively, and by inserting
after paragraph (4) the following:
‘‘(5) PENALTY FOR FAILURE TO REMOVE BAR-
RIERS TO INTERETHNIC ADOPTION.—
‘‘(A) REDUCTION OF PAYMENTS TO THE
STATE.—If a State’s program operated under
this part is found, as a result of a review con-
ducted under section 1123, to have violated sec-
tion 422(a)(15) during a quarter with respect
to any person, then, notwithstanding any regu-
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lations promulgated under section 1123(b)(3),
the Secretary shall reduce the amount otherwise
payable to the State under this part, for the
quarter and for each subsequent quarter before
the 1st quarter for which the State program is
found, as a result of such a review, not to have
violated section 422(a)(15) with respect to any
person, by—
‘‘(i) 2 percent of such otherwise pay-
able amount, in the case of the 1st such
finding with respect to the State;
‘‘(ii) 5 percent of such otherwise pay-
able amount, in the case of the 2nd such
finding with respect to the State; or
‘‘(iii) 10 percent of such otherwise
payable amount, in the case of the 3rd or
subsequent such finding with respect to the
State.
‘‘(B) RETURN OF FUNDS PAID TO OTHER
VIOLATORS.—Any other entity which is in a
State that receives funds under this part and
which violates section 422(a)(15) during a
quarter with respect to any person shall remit
to the Secretary all funds that were paid by the
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State to the entity during the quarter from
such funds.
‘‘(C) PRIVATE CAUSE OF ACTION.—
‘‘(i) IN
GENERAL.—Any individual
who is aggrieved by a violation of section
422(a)(15) by a State or other entity may
bring an action seeking relief from the
State or other entity in any United States
district court.
‘‘(ii) LIMITATION.—An action under this
subparagraph may not be brought more than 2
years after the date the alleged violation oc-
curred.
‘‘(D) NO EFFECT ON THE INDIAN CHILD
WELFARE ACT OF 1978.—This paragraph shall
not be construed to affect the application of the
Indian Child Welfare Act of 1978.’’.
(c) CIVIL RIGHTS.—
(1) PROHIBITED CONDUCT.—A person or gov-
ernment that is involved in adoption or foster care
placements may not—
(A) deny to any individual the opportunity
to become an adoptive or a foster parent, on the
basis of the race, color, or national origin of the
individual, or of the child, involved; or
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(B) delay or deny the placement of a child
for adoption or into foster care, on the basis of
the race, color, or national origin of the adop-
tive or foster parent, or the child, involved.
(2) ENFORCEMENT.—Noncompliance with para-
graph (1) is deemed a violation of title VI of the
Civil Rights Act of 1964.
(3) NO EFFECT ON THE INDIAN CHILD WEL-
FARE ACT OF 1978.—This subsection shall not be
construed to affect the application of the Indian
Child Welfare Act of 1978.
(d) CONFORMING REPEAL.—Section 553 of the How-
ard M. Metzenbaum Multiethnic Placement Act of 1994
(42 U.S.C. 5115a) is repealed.
SEC. 4724. EFFECTIVE DATE; TRANSITION RULES.
(a) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), this chapter and the amendments made
by this chapter shall be effective on and after Octo-
ber 1, 1996.
(2) EXCEPTION.—Section 425 of the Social Se-
curity Act, as added by section 4701 of this Act,
shall take effect on the date of the enactment of this
chapter.
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(3) TEMPORARY REDESIGNATION OF SECTION
425.—During the period beginning on the date of the
enactment of this chapter and ending on October 1,
1996, section 425 of the Social Security Act, as
added by section 4701 of this Act, is redesignated
as section 425A.
(b) TRANSITION RULES.—
(1) CLAIMS, ACTIONS, AND
PROCEEDINGS.—
The amendments made by this chapter shall not
apply with respect to—
(A) powers, duties, functions, rights,
claims, penalties, or obligations applicable to
aid, assistance, or services provided before the
effective date of this chapter under the provi-
sions amended; and
(B) administrative actions and proceedings
commenced before such date, or authorized be-
fore such date to be commenced, under such
provisions.
(2) CLOSING OUT ACCOUNT FOR THOSE PRO-
GRAMS TERMINATED OR SUBSTANTIALLY MODIFIED
BY THIS CHAPTER.—In closing out accounts, Fed-
eral and State officials may use scientifically accept-
able statistical sampling techniques. Claims made
under programs which are repealed or substantially
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amended in this chapter and which involve State ex-
penditures in cases where assistance or services were
provided during a prior fiscal year, shall be treated
as expenditures during fiscal year 1995 for purposes
of reimbursement even if payment was made by a
State on or after October 1, 1995. States shall com-
plete the filing of all claims no later than September
30, 1997. Federal department heads shall—
(A) use the single audit procedure to re-
view and resolve any claims in connection with
the closeout of programs; and
(B) reimburse States for any payments
made for assistance or services provided during
a prior fiscal year from funds for fiscal year
1995, rather than the funds authorized by this
chapter.
CHAPTER 2—CHILD AND FAMILY
SERVICES BLOCK GRANT
SEC. 4751. CHILD AND FAMILY SERVICES BLOCK GRANT.
The Child Abuse Prevention and Treatment Act (42
U.S.C. 5101 et seq.) is amended to read as follows:
‘‘SECTION 1. SHORT TITLE.
‘‘This Act may be cited as the ‘Child and Family
Services Block Grant Act of 1996’.
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‘‘SEC. 2. FINDINGS.
‘‘The Congress finds the following:
‘‘(1) Each year, close to 1,000,000 American
children are victims of abuse and neglect.
‘‘(2) Many of these children and their families
fail to receive adequate protection or treatment.
‘‘(3) The problem of child abuse and neglect re-
quires a comprehensive approach that—
‘‘(A) integrates the work of social service,
legal, health, mental health, education, and sub-
stance abuse agencies and organizations;
‘‘(B) strengthens coordination among all
levels of government, and with private agencies,
civic, religious, and professional organizations,
and individual volunteers;
‘‘(C) emphasizes the need for abuse and
neglect prevention, assessment, investigation,
and treatment at the neighborhood level;
‘‘(D) ensures properly trained and support
staff with specialized knowledge, to carry out
their child protection duties; and
‘‘(E) is sensitive to ethnic and cultural di-
versity.
‘‘(4) The child protection system should be
comprehensive, child-centered, family-focused, and
community-based, should incorporate all appropriate
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measures to prevent the occurrence or recurrence of
child abuse and neglect, and should promote physical
and psychological recovery and social reintegration
in an environment that fosters the health, safety,
self-respect, and dignity of the child.
‘‘(5) The Federal Government should provide
leadership and assist communities in their child and
family protection efforts by—
‘‘(A) generating and sharing knowledge
relevant to child and family protection, includ-
ing the development of models for service deliv-
ery;
‘‘(B) strengthening the capacity of States
to assist communities;
‘‘(C) helping communities to carry out
their child and family protection plans by pro-
moting the competence of professional, para-
professional, and volunteer resources; and
‘‘(D) providing leadership to end the abuse
and neglect of the Nation’s children and youth.
‘‘SEC. 3. PURPOSES.
‘‘The purposes of this Act are the following:
‘‘(1) To assist each State in improving the child
protective service systems of such State by—
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‘‘(A) improving risk and safety assessment
tools and protocols;
‘‘(B) developing, strengthening, and facili-
tating training opportunities for individuals who
are mandated to report child abuse or neglect
or otherwise overseeing, investigating, prosecut-
ing, or providing services to children and fami-
lies who are at risk of abusing or neglecting
their children; and
‘‘(C) developing, implementing, or operat-
ing information, education, training, or other
programs designed to assist and provide serv-
ices for families of disabled infants with life-
threatening conditions.
‘‘(2) To support State efforts to develop, oper-
ate, expand and enhance a network of community-
based, prevention-focused, family resource and sup-
port programs that are culturally competent and
that coordinate resources among existing education,
vocational rehabilitation, disability, respite, health,
mental health, job readiness, self-sufficiency, child
and family development, community action, Head
Start, child care, child abuse and neglect prevention,
juvenile justice, domestic violence prevention and
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intervention, housing, and other human service orga-
nizations within the State.
‘‘(3) To facilitate the elimination of barriers to
adoption and to provide permanent and loving home
environments for children who would benefit from
adoption, particularly children with special needs, in-
cluding disabled infants with life-threatening condi-
tions, by—
‘‘(A) promoting model adoption legislation
and procedures in the States and territories of
the United States in order to eliminate jurisdic-
tional and legal obstacles to adoption;
‘‘(B) providing a mechanism for the De-
partment of Health and Human Services to—
‘‘(i) promote quality standards for
adoption 
services, 
preplacement, 
post-
placement, and post-legal adoption counsel-
ing, and standards to protect the rights of
children in need of adoption;
‘‘(ii) maintain a national adoption in-
formation exchange system to bring to-
gether children who would benefit from
adoption and qualified prospective adoptive
parents who are seeking such children, and
conduct national recruitment efforts in