To amend part E of title IV of the Social Security Act to promote the adoption of children with special needs.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Adoption Equality Act of 2007''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) In 1997, Congress enacted the Adoption and Safe 
        Families Act of 1997 (Public Law 105-89; 111 Stat. 2115), 
        clearly stating that a child's health and safety are paramount, 
        and that each child deserves a permanent home.
            (2) The Adoption and Safe Families Act of 1997 provides 
        incentives for adoptions, and for fiscal year 2005, States 
        placed nearly 52,000 children from State care.
            (3) In 2003, the Adoption Promotion Act (Public Law 108-
        145, 117 Stat. 1879), which reauthorized the incentive program, 
        gave greater emphasis on moving older children into permanency.
            (4) Despite the increase in adoptions, in 2005, more than 
        115,000 children in foster care were waiting to be adopted.
            (5) Some States have chosen to limit services provided to 
        special needs adopted children who are not eligible for 
        adoption assistance under part E of title IV of the Social 
        Security Act, in effect discriminating against a child whose 
        parental rights have been terminated by basing the child's 
        eligibility for such assistance on the financial status of 
        adults who are no longer the child's legal parents.
            (6) These children have many special needs and require 
        Federal financial assistance and support to start the physical 
        and emotional healing after what may have been past years of 
        abuse and neglect.

SEC. 3. PROMOTION OF ADOPTION OF CHILDREN WITH SPECIAL NEEDS.

    (a) In General.--Section 473(a)(2) of the Social Security Act (42 
U.S.C. 673(a)(2)) is amended to read as follows:
    ``(2)(A) For purposes of paragraph (1)(B)(ii), a child meets the 
requirements of this paragraph if the child--
            ``(i)(I) at the time of termination of parental rights, was 
        in the care of a public or licensed private child placement 
        agency or Indian tribal organization pursuant to a voluntary 
        placement agreement, relinquishment, or involuntary removal of 
        the child from the home, and the State has determined, pursuant 
        to criteria established by the State, that continuation in the 
        home would be contrary to the safety or welfare of the child;
            ``(II) meets all medical or disability requirements of 
        title XVI with respect to eligibility for supplemental security 
        income benefits; or
            ``(III) was residing in a foster family home or child care 
        institution with a minor parent of the child pursuant to a 
        voluntary placement agreement, relinquishment, or involuntary 
        removal of the child from the home, and the State has 
        determined, pursuant to criteria established by the State, that 
        continuation in the home would be contrary to the safety or 
        welfare of the child; and
            ``(ii) has been determined by the State, pursuant to 
        subsection (c), to be a child with special needs, which needs 
        shall be considered by the State, together with the 
        circumstances of the adopting parents, in determining the 
        amount of any payments to be made to the adoptive parents.
    ``(B) Notwithstanding any other provision of law, and except as 
provided in paragraph (7), a child who is not a citizen or resident of 
the United States, who is lawfully present in the United States, and 
who meets the requirements of subparagraph (A) shall be treated as 
meeting the requirements of this paragraph for purposes of paragraph 
(1)(B)(ii).
    ``(C) A child who meets the requirements of subparagraph (A) of 
this paragraph, who was determined eligible for adoption assistance 
payments under this part with respect to a prior adoption (or who would 
have been determined eligible for such payments had the Adoption and 
Safe Families Act of 1997 been in effect at the time that such 
determination would have been made), and 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, shall be treated as meeting the 
requirements of this paragraph for purposes of paragraph (1)(B)(ii).''.
    (b) Exception.--Section 473(a) of such Act (42 U.S.C. 673(a)) is 
amended by adding at the end the following:
    ``(7)(A) Notwithstanding any other provision of this subsection, a 
State shall not make a payment pursuant to this section to parents with 
respect to a child considered by a State to be a special needs child if 
the child--
            ``(i) is not a citizen or resident of the United States; 
        and
            ``(ii) was adopted outside of the United States or was 
        brought into the United States for the purpose of being 
        adopted.
    ``(B) Subparagraph (A) shall not be construed as prohibiting 
payments under this part for a child described in subparagraph (A) that 
is placed in foster care subsequent to the failure, as determined by 
the State, of the initial adoption of the child by the parents 
described in such subparagraph.''.
    (c) Determination of a Child With Special Needs.--Section 473(c)(1) 
of such Act (42 U.S.C. 673(c)(1)) is amended to read as follows:
            ``(1)(A) the State has determined, pursuant to criteria 
        established by the State, that the child cannot or should not 
        be returned to the home of his or her parents; or
            ``(B) the child meets all medical or disability 
        requirements of title XVI with respect to eligibility for 
        supplemental security income benefits; and''.

SEC. 4. SENSE OF THE CONGRESS.

    It is the sense of the Congress that the States should reinvest in 
child welfare programs any savings resulting from the implementation of 
the amendments made by this Act.

SEC. 5. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this Act shall take effect on October 1, 2008, and 
shall apply with respect to adoption assistance agreements entered 
into, and to payments under part E of title IV of the Social Security 
Act for calendar quarters beginning, on or after such date, without 
regard to whether regulations to implement the amendments are 
promulgated by such date.
    (b) Delay Permitted if State Legislation Required.--If the 
Secretary of Health and Human Services determines that State 
legislation (other than legislation appropriating funds) is required in 
order for a State plan approved under part E of title IV of the Social 
Security Act to meet the additional requirements imposed by the 
amendments made by this Act, the plan shall not be regarded as failing 
to meet any of the additional requirements before the 1st day of the 
1st calendar quarter beginning after the first regular session of the 
State legislature that begins after the date of the enactment of this 
Act. If the State has a 2-year legislative session, each year of the 
session is deemed to be a separate regular session of the State 
legislature.

Summary: Adoption Equality Act of 2007 - Amends part E (Foster Care and Adoption Assistance) of title IV of the Social Security Act to revise requirements for children with special needs in the adoption assistance program. Requires that the child be in the care of a public or licensed private child placement agency or Indian tribal organization pursuant to a voluntary placement agreement, relinquishment, or involuntary removal of the child from the home, where the state has determined that continuation in the home would be contrary to the child's safety or welfare. Specifies related requirements.

Prohibits adoption assistance to parents with respect to a child who is not a U.S. citizen or resident, and who was adopted outside of the United States or brought into the United States for the purposes of being adopted.

Expresses the sense of the Congress that the states should reinvest in child welfare programs any savings resulting from the implementation of this Act.