[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 596 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 596

To amend title IV of the Social Security Act to provide improved child 
               welfare services, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 16 (legislative day, March 3), 1993

 Mr. Rockefeller (for himself, Mr. Bond, Mr. Riegle, Mr. Bradley, Mr. 
    DeConcini, Mr. Daschle, Mr. Jeffords, Mr. Simon, Mr. Kohl, Mrs. 
   Feinstein, Mr. Mitchell, Mr. Kerry, Mr. Campbell, and Mr. Conrad) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend title IV of the Social Security Act to provide improved child 
               welfare services, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Family 
Preservation and Child Protection Reform Act''.
    (b) Reference.--Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Social 
Security Act.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; reference; table of contents.
Sec. 2. Findings.
Sec. 3. Child welfare services designed to strengthen and preserve 
                            families, and substance abuse prevention 
                            and treatment.
Sec. 4. Grant program for State court systems to assess and improve 
                            procedures in child welfare cases.
Sec. 5. State directory of services.
Sec. 6. Required protections for foster children.
Sec. 7. States required to report on measures taken to comply with the 
                            Indian Child Welfare Act.
Sec. 8. Reports on child welfare services and expenditures.
Sec. 9. Involvement of private parties in the development of State 
                            plans.
Sec. 10. Comprehensive service projects.
Sec. 11. Dissolved adoptions.
Sec. 12. Extension of definition of children with special needs.
Sec. 13. Study of reasonable efforts requirement by advisory committee.
Sec. 14. Adoption expense deduction.
Sec. 15. Periodic reevaluation of foster care maintenance payments.
Sec. 16. Case review system requirements.
Sec. 17. Health care plans for foster children.
Sec. 18. Placement accountability.
Sec. 19. Independent living.
Sec. 20. Elimination of foster care ceilings and of authority to 
                            transfer unused foster care funds to child 
                            welfare services programs.
Sec. 21. Regulations for training of agency staff and of foster and 
                            adoptive parents.
Sec. 22. Foster and adoptive parent training.
Sec. 23. Child welfare traineeships.
Sec. 24. Publication of program data.
Sec. 25. Review of child welfare activities.
Sec. 26. Automated systems.
Sec. 27. Research and evaluations.
Sec. 28. Child welfare demonstration projects.
Sec. 29. Demonstration of independent living services for young adults.
Sec. 30. Home rebuilders demonstration project.
Sec. 31. Commission on childhood disability.
Sec. 32. Effect of failure to carry out State plan.

SEC. 2. FINDINGS.

    The Congress finds that:
            (1) Child abuse and neglect is a growing national crisis of 
        dangerous and costly proportions, as an alarming number of 
        America's children are becoming the innocent victims of 
        families shattered by poverty, unemployment, homelessness, 
        drugs, violence, isolation, and despair.
            (2) More than 2,600,000 children, or 7,381 each day, were 
        reportedly abused or neglected in 1991, an increase of more 
        than 150 percent in a decade; and 1,383 children, or more than 
        3 each day, and most of them under one year of age, died from 
        abuse or neglect in 1991.
            (3) Parental substance abuse has become a major factor in 
        child abuse and neglect; and as many as 15 percent of newborns 
        have been exposed in utero to crack cocaine, marijuana, and 
        other illegal drugs.
            (4) More than 400,000 children who have been abused, 
        neglected, abandoned, or troubled now live in out-of-home 
        foster care, an increase of more than 50 percent over the last 
        5 years; and more than 30,000 vulnerable children are now 
        awaiting adoption.
            (5) Skyrocketing caseloads have overwhelmed the State child 
        welfare systems responsible for the care and protection of 
        abused, neglected, and vulnerable children and troubled 
        families; and Federal support for comprehensive child welfare 
        services have been severely limited.
            (6) Comprehensive services to support families should be 
        offered to help prevent abuse, neglect, and family 
        disintegration.
            (7) Substance abuse prevention and treatment must be 
        provided for pregnant and parenting women in order to prevent 
        the birth of drug-exposed babies, and reduce the incidence of 
        child abuse, neglect, family separation, and violence.
            (8) It is estimated that every $1 spent on alcohol and drug 
        treatment saves $11.54 in health and criminal justice costs.
            (9) Quality foster care, adoption assistance, and 
        independent living services should be provided to ensure that 
        abused, neglected, and troubled children and youth receive the 
        help and support such children and youth need to become healthy 
        and productive adults.

SEC. 3. CHILD WELFARE SERVICES DESIGNED TO STRENGTHEN AND PRESERVE 
              FAMILIES, AND SUBSTANCE ABUSE PREVENTION AND TREATMENT.

    (a) In General.--Part B of title IV (42 U.S.C. 620-628) is 
amended--
            (1) by striking the heading and inserting the following:

                    ``PART B--CHILD WELFARE SERVICES

                 ``Subpart 1--Child Welfare Services'';

            (2) in section 423(a) (42 U.S.C. 623(a)), by striking 
        ``this part'' and inserting ``this subpart'';
            (3) in section 428(b) (42 U.S.C. 628(b)), by inserting ``or 
        432, as appropriate'' after ``421''; and
            (4) by adding at the end the following:

                ``Subpart 2--Innovative Family Services

``SEC. 430. ENTITLEMENT.

    ``(a) In General.--For payments to which States are entitled under 
this subpart, there shall be available to the Secretary an amount equal 
to the sum of--
            ``(1) the innovative services amount for the fiscal year;
            ``(2) the substance abuse amount for the fiscal year; and
            ``(3) the respite care amount for the fiscal year.
    ``(b) Definitions.--As used in subsection (a):
            ``(1) Innovative services amount.--The term `innovative 
        services amount' means--
                    ``(A) for fiscal year 1994, $95,000,000;
                    ``(B) for fiscal year 1995, $235,000,000;
                    ``(C) for fiscal year 1996, $320,000,000;
                    ``(D) for fiscal year 1997, $340,000,000;
                    ``(E) for fiscal year 1998, $385,000,000; and
                    ``(F) for fiscal year 1999 and each succeeding 
                fiscal year, $365,000,000, increased by the percentage 
                (if any) by which--
                            ``(i) the average of the Consumer Price 
                        Index (as defined in section 1(f)(5) of the 
                        Internal Revenue Code of 1986) for the 12-month 
                        period ending on June 30 of the immediately 
                        preceding fiscal year; exceeds
                            ``(ii) the average of the Consumer Price 
                        Index (as so defined) for the 12-month period 
                        ending on June 30, 1997.
            ``(2) Substance abuse amount.--The term `substance abuse 
        amount' means--
                    ``(A) for fiscal year 1994, $40,000,000;
                    ``(B) for fiscal year 1995, $90,000,000;
                    ``(C) for fiscal year 1996, $110,000,000;
                    ``(D) for fiscal year 1997, $115,000,000;
                    ``(E) for fiscal year 1998, $125,000,000; and
                    ``(F) for fiscal year 1999 and each succeeding 
                fiscal year, $125,000,000, increased by the percentage 
                (if any) by which--
                            ``(i) the average of the Consumer Price 
                        Index (as defined in section 1(f)(5) of the 
                        Internal Revenue Code of 1986) for the 12-month 
                        period ending on June 30 of the immediately 
                        preceding fiscal year; exceeds
                            ``(ii) the average of the Consumer Price 
                        Index (as so defined) for the 12-month period 
                        ending on June 30, 1997.
            ``(3) Respite care amount.--The term `respite care amount' 
        means--
                    ``(A) for fiscal year 1995, $30,000,000;
                    ``(B) for fiscal year 1996, $55,000,000;
                    ``(C) for fiscal year 1997, $65,000,000;
                    ``(D) for fiscal year 1998, $85,000,000; and
                    ``(E) for fiscal year 1999 and each succeeding 
                fiscal year, $85,000,000, increased by the percentage 
                (if any) by which--
                            ``(i) the average of the Consumer Price 
                        Index (as defined in section 1(f)(5) of the 
                        Internal Revenue Code of 1986) for the 12-month 
                        period ending on June 30 of the immediately 
                        preceding fiscal year; exceeds
                            ``(ii) the average of the Consumer Price 
                        Index (as so defined) for the 12-month period 
                        ending on June 30, 1997.

``SEC. 431. ELIGIBILITY FOR FUNDS.

    ``(a) Innovative Services Amount.--
            ``(1) Submission of state plan amendments.--To be eligible 
        to receive funds from its allotment of the innovative services 
        amount for any fiscal year, a State shall submit to the 
        Secretary for approval, as an amendment to the State plan under 
        this part, a detailed description of the services that the 
        State intends to provide through the use of such funds during 
        the fiscal year that includes--
                    ``(A) a strategy for the fiscal year to improve the 
                coordination of services to families in the State any 
                child of which has been or is at risk of being placed 
                outside the home, with other State programs and 
                services;
                    ``(B) an assurance that the State will not use any 
                of such funds to supplant Federal, State, or local 
                funds used for similar purposes;
                    ``(C) an explanation of how such funds will be 
                used, during the fiscal year, to expand services 
                available to such families, including--
                            ``(i) a description of the service programs 
                        to be provided through the use of such funds;
                            ``(ii) the goals of the programs; and
                            ``(iii) a description of the populations to 
                        which the programs will be targeted, with an 
                        assurance that the populations will consist 
                        of--
                                    ``(I)(aa) families any child of 
                                which is in foster care;
                                    ``(bb) families any child of which 
                                has been in foster care; or
                                    ``(cc) families any child of which 
                                is at risk of being placed in foster 
                                care; and
                                    ``(II) such other kinds of families 
                                as the State may select; and
                    ``(D) such other information as the Secretary may 
                require by regulation.
            ``(2) Deadline for submission.--To be eligible to receive 
        funds from its allotment of the innovative services amount for 
        a fiscal year, a State shall comply with paragraph (1)--
                    ``(A) for fiscal year 1994, not later than such 
                date as the Secretary may require; and
                    ``(B) for any succeeding fiscal year, not later 
                than the July 1 of the immediately preceding fiscal 
                year.
            ``(3) Report on goals.--Not later than such date as the 
        Secretary may require, each State which receives funds under 
        this subpart shall submit to the Secretary a report containing 
        a statement of goals that the State expects to achieve during 
        the 5-year period beginning with fiscal year 1994 through the 
        use of such funds.
    ``(b) Substance Abuse Amount.--To be eligible to receive funds from 
the allotment to a State of the substance abuse amount for any fiscal 
year, the Governor of the State shall provide to the Secretary (in such 
form as the Secretary may prescribe) written assurances that--
            ``(1) the total amount of funds expended by the State (and 
        any political subdivision thereof) from non-Federal sources to 
        provide nonmedical substance abuse treatment support services 
        for the fiscal year will not be less than the total amount so 
        expended for the immediately preceding fiscal year; and
            ``(2) an individual who is referred by a State agency 
        described in section 422(b)(1) to a program provided with funds 
        from the allotment shall be given priority in admission to the 
        program.

``SEC. 432. ALLOTMENTS TO STATES.

    ``The Secretary shall allot separately the innovative services 
amount, the substance abuse amount, and the respite care amount for any 
fiscal year, as follows:
            ``(1) Allotments to territories.--The allotment for any 
        fiscal year to each of the jurisdictions of Puerto Rico, Guam, 
        the Virgin Islands, the Northern Mariana Islands, and American 
        Samoa shall be determined in the same manner in which the 
        allotment to the jurisdiction is determined under section 421.
            ``(2) Other allotments.--
                    ``(A) In general.--The allotment for any fiscal 
                year to each other State shall--
                            ``(i) in the case of the innovative 
                        services amount, equal--
                                    ``(I) the innovative services 
                                amount for the fiscal year that remains 
                                unallotted after the application of 
                                paragraph (1) of this section; 
                                multiplied by
                                    ``(II) the food stamp percentage of 
                                the State for the fiscal year;
                            ``(ii) in the case of the substance abuse 
                        amount, equal--
                                    ``(I) the substance abuse amount 
                                for the fiscal year that remains 
                                unallotted after the application of 
                                paragraph (1) of this section; 
                                multiplied by
                                    ``(II) the food stamp percentage of 
                                the State for the fiscal year; and
                            ``(iii) in the case of the respite care 
                        amount, equal--
                                    ``(I) the respite care amount for 
                                the fiscal year that remains unallotted 
                                after the application of paragraph (1) 
                                of this section; multiplied by
                                    ``(II) a ratio equal to--
                                            ``(aa) the average number 
                                        of children in the State who 
                                        received foster care 
                                        maintenance payments under 
                                        section 472 for the most recent 
                                        3-year period for which such 
                                        information is available; 
                                        divided by
                                            ``(bb) the average number 
                                        of children in the United 
                                        States who received foster care 
                                        maintenance payments under 
                                        section 472 for such 3-year 
                                        period.
                    ``(B) Food stamp percentage defined.--As used in 
                subparagraph (A), the term `food stamp percentage' 
                means, with respect to a State and a fiscal year, the 
                average number of children receiving food stamp 
                benefits in the State for the 4th, 3rd, and 2nd 
                preceding fiscal years, as determined from sample 
                surveys made under section 16(c) of the Food Stamp Act 
                of 1977, expressed as a percentage of the average 
                number of children receiving food stamp benefits in all 
                of the States (to which this paragraph applies) for 
                such preceding fiscal years, as so determined.

``SEC. 433. REALLOTMENTS.

    ``(a) In General.--The amount of any allotment to a State under 
section 432 for any fiscal year which the State has not expended by the 
end of the immediately succeeding fiscal year shall be available for 
reallotment, from time to time, on such dates as the Secretary may fix, 
to other States which the Secretary determines--
            ``(1) in the case of the innovative services amount and the 
        substance abuse amount, have complied with section 431 for the 
        2nd succeeding fiscal year;
            ``(2) need sums exceeding the sums allotted to such States 
        under sections 421 and 432 for the 2nd succeeding fiscal year, 
        to carry out their State plans under this part for the 2nd 
        succeeding fiscal year; and
            ``(3) will be able to use such excess sums during the 2nd 
        or 3rd succeeding fiscal year.
    ``(b) Distribution Formula.--Any amount available for reallotment 
shall be reallotted among the other States referred to in subsection 
(a) on the same basis as allotments are made under section 432.
    ``(c) Treatment of Reallotments.--Any amount reallotted to a State 
under this section is deemed to be part of the allotment of the State 
under section 432.

``SEC. 434. PAYMENTS TO STATES.

    ``(a) In General.--
            ``(1) Innovative services amount.--From the sums made 
        available pursuant to section 430(a) for any fiscal year, each 
        State which has complied with section 431 for the fiscal year 
        shall be entitled to receive from the Secretary from the 
        allotment to the State under section 433 of the innovative 
        services amount, and the Secretary shall from time to time pay 
        to the State, an amount equal to 75 percent of the total amount 
        expended by the State during the fiscal year under the plan 
        (including administrative costs) in accordance with section 
        435.
            ``(2) Substance abuse amount.--From the sums made available 
        pursuant to section 430(a) for any fiscal year, the Governor of 
        each State which has a plan developed in accordance with 
        section 422 and has complied with section 431 for the fiscal 
        year shall be entitled to receive from the Secretary from the 
        allotment to the State under section 433 of the substance abuse 
        amount, and the Secretary shall from time to time pay to the 
        Governor of the State, an amount equal to 75 percent of the 
        total amount expended by the State in accordance with section 
        436 during the fiscal year.
            ``(3) Respite care amount.--From the sums made available 
        pursuant to section 430(a) for any fiscal year, each State 
        which has a plan developed in accordance with section 422 and 
        has complied with section 431 for the fiscal year shall be 
        entitled to receive from the Secretary from the allotment to 
        the State under section 433 of the respite care amount, and the 
        Secretary shall from time to time pay to the State, an amount 
        equal to 75 percent of the total amount expended by the State 
        in accordance with section 437 during the fiscal year.
    ``(b) Administrative Provisions.--
            ``(1) Estimates.--Before each calendar quarter, the 
        Secretary shall estimate the amount to be paid with respect to 
        each State under this section for the quarter.
            ``(2) Payments.--From that portion of each allotment of 
        each State, the Secretary shall pay the amount estimated under 
        paragraph (1), reduced or increased, as the case may be, by any 
        sum (not previously adjusted under this subsection) by which 
        the Secretary finds that any such estimate for a prior quarter 
        was greater or less than the amount which should have been paid 
        with respect to the State under this subsection for such prior 
        quarter.
    ``(c) Availability of Funds.--The amount to which a State is 
entitled under this part for a fiscal year shall remain available to 
the State for the fiscal year and the immediately succeeding fiscal 
year.

``SEC. 435. INNOVATIVE SERVICES.

    ``(a) In General.--Each State which receives funds paid to the 
State under section 434(a)(1) shall use the funds to plan, develop, 
expand, operate, or evaluate--
            ``(1) service programs designed to help children--
                    ``(A) where appropriate, return to families 
                (including adoptive families) from which they have been 
                removed; or
                    ``(B) be placed for adoption, with a legal 
                guardian, or, if adoption or legal guardianship is 
                determined not to be appropriate for a child, in some 
                other planned, permanent living arrangement;
            ``(2) preplacement preventive services programs, such as 
        intensive family preservation programs, that are designed to 
        help children at risk of foster care placement remain with 
        their families (including adoptive families);
            ``(3) service programs designed to provide follow-up care 
        to families (including adoptive families) to whom a child has 
        been returned after a foster care placement; or
            ``(4) family support services to strengthen the functioning 
        of a family (including an adoptive or foster care family), such 
        as--
                    ``(A) services designed to improve parenting 
                skills;
                    ``(B) respite care; and
                    ``(C) adult mentoring services by adult volunteers 
                to low-income or at-risk children or young adults who 
                are in need of additional, on-going contact with adult 
                role models.
    ``(b) Maintenance of Effort.--Notwithstanding section 434, the 
amount that would otherwise be paid to a State under section 434(a)(1) 
shall be reduced by the sum of--
            ``(1) any amount paid to the State under section 434 which 
        is used to supplant any Federal, State, or local funds used for 
        purposes similar to those for which the innovative services 
        amount is made available; and
            ``(2) the amount (if any) by which the total amount 
        expended by the State and the political subdivisions thereof 
        from State and local sources for the provision of child welfare 
        services (excluding foster care maintenance payments and 
        adoption assistance payments) during any fiscal year is less 
        than the total amount so expended during fiscal year 1992.

``SEC. 436. COMPREHENSIVE SUBSTANCE ABUSE TREATMENT PROGRAMS FOR 
              PREGNANT WOMEN AND CARETAKER PARENTS.

    ``(a) In General.--Each State which receives funds paid to the 
State under section 434(a)(2) shall use the funds to plan, develop, 
expand, operate, or evaluate a qualified comprehensive substance abuse 
treatment program, and to provide nonmedical substance abuse treatment 
support services for qualified individuals under the program.
    ``(b) Reports.--The Secretary shall require each State with respect 
to which payments under section 434(a)(2) are received to report (in 
such manner and form and at such time as the Secretary determines to be 
appropriate) such information as may be necessary to permit the 
Secretary and the Congress to evaluate the operation and effectiveness 
of the program and services provided pursuant to this section, 
including--
            ``(1) the number of individuals participating in the 
        program in the State;
            ``(2) any limits imposed by the State on the number of 
        individuals who may enroll in the program; and
            ``(3) the number of individuals on any waiting list 
        maintained by the State for participation in the program.
    ``(c) Definitions.--As used in this section:
            ``(1) Nonmedical substance abuse treatment support 
        services.--The term `nonmedical substance abuse treatment 
        support services' means--
                    ``(A) home visitation services, nutrition services, 
                child care, and parenting education;
                    ``(B) substance abuse prevention, treatment, and 
                follow-up services (to the extent such services are not 
                furnished under a State plan approved under title XIX); 
                and
                    ``(C) any other services (such as room and board at 
                a residential substance abuse treatment facility for a 
                qualified individual and, where appropriate, the 
                individual's child) that are determined by the State 
                (in accordance with regulations promulgated by the 
                Secretary) to be necessary and appropriate to support 
                the participation of a qualified individual in a 
                qualified comprehensive substance abuse treatment 
                program.
            ``(2) Qualified individual.--The term `qualified 
        individual' means an individual who is--
                    ``(A) a pregnant woman or caretaker parent who is 
                eligible for medical assistance under a State plan 
                approved under title XIX;
                    ``(B) at the option of the State, any other 
                pregnant woman or caretaker parent whose income does 
                not exceed an amount specified by the State; and
                    ``(C) where appropriate, any child of an individual 
                specified in subparagraph (A) or (B).
            ``(3) Qualified comprehensive substance abuse treatment 
        program.--The term `qualified comprehensive substance abuse 
        treatment program' means a program, established by a State, 
        that--
                    ``(A) makes available to qualified individuals 
                (either directly or through arrangements with others) 
                at least the following services:
                            ``(i) substance abuse prevention, 
                        treatment, and follow up services (on an 
                        outpatient basis and, at the option of the 
                        State, in a residential facility);
                            ``(ii) prenatal, gynecological, and 
                        pediatric medical services;
                            ``(iii) transportation; and
                            ``(iv) nonmedical substance abuse treatment 
                        support services;
                    ``(B) provides for appropriate coordination of 
                substance abuse treatment-related medical services 
                furnished to individuals under the program (under title 
                V or XIX) and nonmedical substance abuse support 
                services for which payment may be made under section 
                434(a)(2); and
                    ``(C) is administered by an agency (or agencies) 
                designated by the Governor of the State.
            ``(4) Caretaker parent.--The term `caretaker parent' means 
        a parent who personally provides (or expects to provide) care 
        for a child.

``SEC. 437. RESPITE CARE.

    ``(a) In General.--Each State which receives funds paid to the 
State under section 434(a)(3) shall use the funds to provide respite 
care to any family which operates a foster family home for 1 or more 
foster children who the State determines have special needs, in 
accordance with all applicable State and local standards and guidelines 
and in the least restrictive setting consistent with the special needs 
of such child or children.
    ``(b) Respite Care Defined.--As used in subsection (a), the term 
`respite care' means, with respect to the family of a foster child, 
care authorized by a State, or provided by a public or private agency 
designated by a State, to provide temporary relief for the foster 
parent caregiver or caregivers of the child.

``SEC. 438. EVALUATIONS; REPORT.

    ``(a) Evaluations.--(1)(A) The Secretary shall, directly or under 
contract with 1 or more independent research organizations, conduct 
evaluations of programs carried out pursuant to section 435 in 
accordance with criteria that the Secretary shall establish, and in 
accordance with requirements that the Secretary shall prescribe by 
regulation.
    ``(B) In developing the criteria referred to in paragraph (1), the 
Secretary shall consult with--
            ``(i) individuals who administer programs under this part 
        and part E;
            ``(ii) private, nonprofit organizations with an interest in 
        child welfare; and
            ``(iii) other individuals and organizations with recognized 
        expertise in the evaluation of child welfare services programs 
        or other related programs.
    ``(2) Program evaluations conducted pursuant to paragraph (1) 
shall--
            ``(A) use methodologies to measure outcomes with respect to 
        children and families who participate in the programs referred 
        to in paragraph (1) that enable comparison with similar outcome 
        measurements of children and families who have not received the 
        services offered by such programs; and
            ``(B) include an assessment of family functioning.
    ``(3) In carrying out the program evaluations described in 
paragraph (1), the Secretary shall ensure that, where appropriate and 
feasible, an appropriate portion of such evaluations shall use 
experimental and control groups (of a sample size determined in 
accordance with appropriate statistical practices).
    ``(4)(A) The Secretary shall develop procedures to facilitate the 
coordination of evaluations conducted by the Secretary and by the 
States.
    ``(B) Upon request by a State, the Secretary shall provide 
technical assistance to facilitate the planning and design of program 
evaluations under this subsection.
    ``(b) Report.--For fiscal year 1996, and annually thereafter until 
the programs authorized under this section are completed, the Secretary 
shall issue a report to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives that 
includes--
            ``(1) information concerning the status of evaluations 
        conducted by the Secretary under subsection (a);
            ``(2) findings from the evaluations;
            ``(3) information concerning the status of the evaluations 
        conducted by States under this section; and
            ``(4) a summary of the findings from the State evaluations 
        referred to in paragraph (3).
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated for each of the fiscal years 1994, 1995, 1996, 1997, and 
1998, the sum of $8,000,000 to carry out the purposes of this 
section.''.
    (b) Report.--The Secretary of Health and Human Services shall, upon 
completion of a review of the evaluations conducted under section 
438(a) of the Social Security Act by the Secretary and by States (but 
not later than December 1, 1997), submit a report to the Committee on 
Finance of the Senate and the Committee on Ways and Means of the House 
of Representatives that includes recommendations for legislation to--
            (1) improve child and family services provided under title 
        IV of such Act to strengthen families;
            (2) reduce the number of cases in which it is necessary to 
        remove a child from home and place the child in foster care;
            (3) promote the reunification of families of children who 
        have been placed in foster care; and
            (4) promote planned, permanent living arrangements for 
        children, including adoption, where appropriate.
    (c) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1993, and shall apply to payments under part 
B of title IV of the Social Security Act for fiscal year 1994 and to 
such payments for any succeeding fiscal year.

SEC. 4. GRANT PROGRAM FOR STATE COURT SYSTEMS TO ASSESS AND IMPROVE 
              PROCEDURES IN CHILD WELFARE CASES.

    (a) In General.--The Secretary of Health and Human Services (in 
this section referred to as the ``Secretary'') shall make grants in 
accordance with this section to the highest State courts to conduct 
assessments of the procedures and functions of the State courts in 
carrying out parts B and E of title IV of the Social Security Act, and 
to implement recommendations for improvements in such procedures and 
functions based on the assessments.
    (b) Assessments.--The assessment described in this subsection is 
designed to assess how the State courts are performing the activities 
required of them by or under State laws enacted pursuant to parts B and 
E of title IV of the Social Security Act, and to make recommendations 
on how to improve the implementation of such parts, which shall include 
the following:
            (1) A list of the requirements imposed on the State courts 
        by or under State laws enacted pursuant to such parts, and a 
        list of the State laws, regulations, and policies that govern 
        the implementation of such requirements.
            (2) A description of the extent to which State law requires 
        procedural safeguards for children and their parents with 
        respect to each type of proceeding held by State courts 
        pursuant to the State laws referred to in paragraph (1).
            (3) A quantitative and qualitative evaluation of how each 
        requirement of such parts is being carried out in the State, 
        including the following:
                    (A) The circumstances under which, and the 
                frequency with which, the procedural safeguards 
                described pursuant to paragraph (2) are provided.
                    (B) Whether, during court proceedings, evidence is 
                presented and arguments are made that address the 
                findings and determinations required by the State laws 
                referred to in paragraph (1), and, if so, the amount 
                and sufficiency of time devoted to the presentation of 
                such evidence and the making of such arguments.
                    (C) The extent to which the procedures and 
                practices of the State courts are reasonably in accord 
                with recommended standards of national organizations 
                concerned with permanent placement for foster children.
            (4) The effect of judicial caseloads and case assignments 
        on the quality of court proceedings.
            (5) Recommendations on how to better meet the requirements 
        of such parts, and to improve the implementation by the State 
        courts of the State laws enacted pursuant to such parts, 
        including any changes in law, regulation, procedure, judicial 
        manpower, judicial case assignments, judicial caseloads, 
        judicial data collection, judicial education, and requirements 
        for court-appointed legal representatives for parents and 
        children.
    (c) Applications.--
            (1) Fiscal year 1995.--In order for a highest State court 
        to become eligible for a grant under this section for fiscal 
        year 1995, the court shall submit to the Secretary an 
        application which, at a minimum, contains the following:
                    (A) A timetable for conducting and completing the 
                assessment described in subsection (b) during fiscal 
                year 1995.
                    (B) A budget for the assessment described in 
                subsection (b), the method which is to be used to 
                conduct the assessment, and a statement of how courts 
                are to be selected for inclusion in the assessment.
                    (C) A certification that the head of the State 
                agency responsible for children in State-supervised 
                foster care, and, if applicable, the State foster care 
                citizen review board or the State organization of 
                citizen review boards, has had an opportunity to review 
                and comment on a draft of the application before its 
                submission. Such certification must include a copy of 
                such comments.
                    (D) A description of how the court is to consult 
                and cooperate with the head of the State agency 
                responsible for children in State-supervised foster 
                care, and, if applicable, the State foster care citizen 
                review board or the State organization of citizen 
                review boards, in developing and conducting the 
                assessment described in subsection (b).
                    (E) Such other information as the Secretary may 
                require by regulation.
            (2) Fiscal year 1996.--In order for a highest State court 
        to become eligible for a grant under this section for fiscal 
        year 1996, the court shall submit to the Secretary an 
        application which contains the following:
                    (A) A copy of the assessment described in 
                subsection (b) that was conducted and completed with 
                funds provided under this section.
                    (B) A description of the steps that were taken 
                during the conduct of the assessment described in 
                subsection (b), and that will be taken in the fiscal 
                year for which the application is submitted, to consult 
                and cooperate with the State agency responsible for 
                children in State-supervised foster care and, if 
                applicable, the State foster care citizen review board 
                or the State organization of citizen review boards.
                    (C) A specification of the steps that will be taken 
                to implement the recommendations described in 
                subsection (b)(5) made in the assessment described in 
                subsection (b), and to make other improvements in the 
                judicial handling of child welfare and foster care 
                cases.
                    (D) Assurances that the applicant will--
                            (i) coordinate with the head of the State 
                        agency responsible for children in State-
                        supervised foster care, and provide the agency 
                        with a report on the actions to be taken by the 
                        applicant to implement the recommendations of 
                        the assessment;
                            (ii) after completion of the assessment 
                        described in subsection (b), use funds received 
                        under this section to--
                                    (I) implement the recommendations 
                                of the assessment; and
                                    (II) establish new activities or 
                                programs, or strengthen existing 
                                activities or programs, to carry out 
                                such recommendations; and
                            (iii) not use funds received under this 
                        section to supplant State or local funds used 
                        for similar purposes.
                    (E) Such other information as the Secretary may 
                require by regulation.
            (3) Fiscal years 1997 and 1998.--In order for a highest 
        State court to become eligible for a grant under this section 
        for fiscal year 1997 or 1998, the court shall submit to the 
        Secretary an application which contains the following:
                    (A) A description and evaluation of the activities 
                of the State courts under the grant made with respect 
                to an application submitted under paragraph (2) in 
                improving their implementation of parts B and E of 
                title IV of the Social Security Act.
                    (B) A description of the steps that were taken 
                during the previous fiscal year, and that will be taken 
                in the year for which the application is submitted, to 
                consult and cooperate with the head of the State agency 
                responsible for children in State-supervised foster 
                care and, if applicable, the State foster care citizen 
                review board or the State organization of citizen 
                review boards, in implementing the recommendations made 
                in the assessment described in subsection (b).
                    (C) A specification of the remaining steps that 
                will be taken to implement the recommendations 
                described in subsection (b)(5) made in the assessment 
                described in subsection (b), and to make other related 
                improvements in the judicial handling of child welfare 
                and foster care cases.
                    (D) A reaffirmation of the assurances made pursuant 
                to paragraph (2)(D).
                    (E) Such other information as the Secretary may 
                require by regulation.
    (d) Grant Amounts.--
            (1) Fiscal year 1995.--Of the amounts made available to 
        carry out this section for fiscal year 1995, each highest State 
        court that submits an application which meets the requirements 
        of subsection (c)(1) shall be entitled to, and the Secretary 
        shall pay such court, a grant in an amount equal to--
                    (A) $150,000; plus
                    (B) the amount which bears the same ratio to the 
                remainder of such available amounts as the number of 
                individuals in the State who have not attained the age 
                of 21 years bears to the number of individuals who have 
                not attained such age in the States the highest State 
                courts of which have so submitted such applications.
            (2) Fiscal years 1996, 1997, and 1998.--Of the amounts made 
        available to carry out this section for each of fiscal years 
        1996, 1997, and 1998, each highest State court that submits an 
        application which meets the requirements of paragraph (2) or 
        (3) of subsection (c) shall be entitled to, and the Secretary 
        shall pay such court, a grant in an amount equal to--
                    (A) $170,000; plus
                    (B) the amount which bears the same ratio to the 
                remainder of the amounts available for the fiscal year 
                as the number of individuals in the State who have not 
                attained the age of 21 years bears to the number of 
                individuals who have not attained such age in the 
                States the highest State courts of which have so 
                submitted such applications.
            (3) No state match required for fiscal year 1995; 
        redistribution of unused funds.--Grant amounts under this 
        section shall be paid to, and redistributed among, highest 
        State courts in the same manner in which funds made available 
        pursuant to section 420(b) of the Social Security Act are paid 
        to, and reallotted among, the States pursuant to sections 423 
        and 424 of such Act, except that--
                    (A) for fiscal year 1995, section 423(a) of such 
                Act shall be applied by substituting ``100 percentum'' 
                for ``75 percentum''; and
                    (B) amounts shall be redistributed on the same 
                basis as amounts are distributed under paragraph (1)(B) 
                or (2)(B), and amounts so redistributed shall be 
                treated as part of the amounts distributed under 
                paragraph (1)(B) or (2)(B), whichever is applicable.
    (e) Use of Grants.--
            (1) Fiscal year 1995.--
                    (A) Conduct assessment.--Except as provided in 
                subparagraph (B), each highest State court which 
                receives a grant applied for under subsection (c)(1) 
                shall use such grant to conduct the assessment 
                described in subsection (b).
                    (B) Authority to use excess grant funds to 
                implement recommendations.--Any highest State court 
                which has grant funds remaining after completing the 
                assessment may use the remainder of the grant to 
                implement the recommendations made as part of the 
                assessment, in fiscal year 1995 or fiscal year 1996.
            (2) Fiscal years 1996, 1997, and 1998.--Each highest State 
        court which receives a grant applied for under paragraph (2) or 
        (3) of subsection (c) for a fiscal year shall--
                    (A) use the grant to implement the recommendations 
                made as part of the assessment described in subsection 
                (b); and
                    (B) expend such grant in the fiscal year or in the 
                immediately succeeding fiscal year.
    (f) Administrative Provisions.--
            (1) Guidelines for grant applications.--Within 180 days 
        after the effective date of this section, the Secretary shall 
        issue guidelines for grant applications under subsection (c)(1) 
        and transmit such guidelines to each highest State court.
            (2) Prompt action on applications.--The Secretary shall 
        take prompt action on each application for a grant under this 
        section.
    (g) Definitions.--As used in this section:
            (1) Highest state court.--The term ``highest State court'' 
        means, with respect to a State, the State court with final 
        appellate jurisdiction over civil matters in which State courts 
        perform a function assigned by or under State laws enacted 
        pursuant to part B or E of the Social Security Act.
            (2) State.--The term ``State'' shall have the same meaning 
        such term has for purposes of parts B and E of title IV of the 
        Social Security Act.
    (h) Reports to the Congress.--The Secretary shall submit to the 
Congress a report not later than September 30, 1999, on--
            (1) the information obtained from the assessments conducted 
        with grants made under this section; and
            (2) the impact of the grant program under this section on 
        the procedures and functions of the State courts in carrying 
        out parts B and E of title IV of the Social Security Act.
    (i) Grants Funded Through Innovative Services Entitlement Funds for 
Certain Fiscal Years.--
            (1) Fiscal year 1995.--Of the sums made available pursuant 
        to section 430 of the Social Security Act for fiscal year 1995, 
        $15,000,000 of the innovative services amount (as defined in 
        section 430(b)(1) of such Act) shall be used solely to make 
        grants to highest State courts under this section, before 
        applying section 432 of such Act.
            (2) Fiscal years 1996, 1997, and 1998.--Of the sums made 
        available pursuant to section 430 of the Social Security Act 
        for each of fiscal years 1996, 1997, and 1998, $20,000,000 of 
        the innovative services amount (as defined in section 430(b)(1) 
        of such Act) shall be used solely to make grants to highest 
        State courts under this section, before applying section 432 of 
        such Act.
    (j) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 5. STATE DIRECTORY OF SERVICES.

    (a) State Plan Requirement.--Section 422(b) (42 U.S.C. 622(b)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by striking the period at the end of paragraph (8) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(9) require the agency administering or supervising the 
        administration of the plan, not less frequently than every 2 
        years, to--
                    ``(A) compile a detailed directory of those service 
                programs made available by the agency or by local child 
                welfare agencies to families served by such agencies 
                that are--
                            ``(i) preplacement preventive services 
                        programs that are designed to help children at 
                        risk of foster care placement remain with their 
                        families;
                            ``(ii) service programs designed to help 
                        children--
                                    ``(I) where appropriate, return to 
                                families from which they have been 
                                removed; or
                                    ``(II) be placed for adoption, with 
                                a legal guardian, or in some other 
                                planned, permanent living arrangement; 
                                or
                            ``(iii) service programs designed to 
                        provide follow-up care to families to whom a 
                        child has been returned after a foster care 
                        placement;
                    ``(B) identify in such directory which of the 
                programs referred to in subparagraph (A) provides 
                specialized child welfare services to families in 
                crisis due to substance abuse;
                    ``(C) include in such directory such information as 
                the Secretary may require by rule;
                    ``(D) include in such directory, for each of such 
                programs--
                            ``(i) the name and address of the program 
                        and the agency or organization that administers 
                        the program;
                            ``(ii) a description of the services 
                        offered by the program;
                            ``(iii) the number of individuals the 
                        program is capable of serving at one time; and
                            ``(iv) a description of the criteria for 
                        eligibility for services under the program, 
                        including any priorities with respect to who 
                        will receive such services;
                    ``(E) arrange the information in the directory 
                geographically; and
                    ``(F) provide a copy of such directory to the 
                Secretary and to all judges and other judicial 
                administrators, and all State agencies, that are 
                involved in child protection, foster care, and adoption 
                cases.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1994, and shall apply to payments under part 
B of title IV of the Social Security Act for fiscal year 1995 and to 
such payments for any succeeding fiscal year.

SEC. 6. REQUIRED PROTECTIONS FOR FOSTER CHILDREN.

    (a) Elimination of Incentive Funding Mechanisms.--
            (1) In general.--
                    (A) Repeal.--Section 427 (42 U.S.C. 627) is hereby 
                repealed.
                    (B) Conforming amendment.--Section 423(a) (42 
                U.S.C. 623(a)) is amended by striking ``and in section 
                427''.
            (2) State plan required to provide for foster care 
        protections of repealed section 427.--Section 422(b) (42 U.S.C. 
        622(b)), as amended by section 5(a) of this Act, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (8);
                    (B) by striking the period at the end of paragraph 
                (9) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(10) provide that the State must--
                    ``(A) conduct or have conducted an inventory of all 
                children who have been in foster care under the 
                responsibility of the State for a period of 6 months 
                preceding the inventory, and determine or have 
                determined--
                            ``(i) the appropriateness of, and necessity 
                        for, the foster care placement;
                            ``(ii) whether the child can or should be 
                        returned to the parents of the child or should 
                        be freed for adoption; and
                            ``(iii) the services necessary to 
                        facilitate either the return of the child or 
                        the placement of the child for adoption or 
                        legal guardianship;
                    ``(B) implement and operate, to the satisfaction of 
                the Secretary--
                            ``(i) a statewide information system from 
                        which the status, demographic characteristics, 
                        location, and goals for the placement of every 
                        child who is in foster care, or who has been in 
                        such care within the preceding 12 months, can 
                        be readily determined;
                            ``(ii) a case review system (as defined in 
                        section 475(5)) for each child receiving foster 
                        care under the supervision of the State;
                            ``(iii) a service program designed to help 
                        children--
                                    ``(I) where appropriate, return to 
                                families from which they have been 
                                removed; or
                                    ``(II) be placed for adoption, with 
                                a legal guardian, or in some other 
                                planned, permanent living arrangement; 
                                and
                            ``(iv) a preplacement preventive services 
                        program designed to help children at risk of 
                        foster care placement remain with their 
                        families; and
                    ``(C)(i) review or have reviewed State laws, State 
                administrative and judicial procedures, and agency 
                legal representation in effect for children abandoned 
                at or shortly after birth; and
                    ``(ii) develop and implement such laws and 
                procedures as the State determines are necessary to 
                enable lasting permanent decisions to be made 
                expeditiously with respect to the placement of such 
                children;''.
            (3) Conforming amendments.--
                    (A) Section 472(d) (42 U.S.C. 672(d)) is amended by 
                striking ``427(b)'' and inserting ``422(b)(10)''.
                    (B) Section 425(a)(2) (42 U.S.C. 625(a)(2)) is 
                amended by inserting ``to comply with section 
                422(b)(10) or'' before ``to comply''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1995, and shall apply to payments under parts B 
and E of title IV of the Social Security Act for fiscal year 1996 and 
to such payments for any succeeding fiscal year.
    (d) Construction of Section.--This section and the amendments made 
by this section shall not be construed to permit any State to interrupt 
the provision of the foster care protections described in section 427 
of the Social Security Act, as in effect before fiscal year 1996.

SEC. 7. STATES REQUIRED TO REPORT ON MEASURES TAKEN TO COMPLY WITH THE 
              INDIAN CHILD WELFARE ACT.

    (a) State Plan Requirement.--Section 422(b) (42 U.S.C. 622(b)), as 
amended by sections 5(a) and 6(a)(2) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by striking the period at the end of paragraph (10) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(11) contain a description, developed after consultation 
        with tribal organizations (as defined in section 4 of the 
        Indian Self-Determination and Education Assistance Act) in the 
        State, of the specific measures taken by the State to comply 
        with the Indian Child Welfare Act.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1994, and shall apply to payments under part 
B of title IV of the Social Security Act for fiscal year 1995 and to 
such payments for any succeeding fiscal year.

SEC. 8. REPORTS ON CHILD WELFARE SERVICES AND EXPENDITURES.

    (a) Post-Expenditure Reports.--
            (1) In general.--Part B of title IV (42 U.S.C. 620-628) is 
        amended by inserting after section 428 the following:

``SEC. 429. REPORT ON EXPENDITURES.

    ``(a) Preparation.--Each State shall prepare annual reports on the 
services provided with funds paid under this part (other than under 
section 434(a)(2)) during the most recently completed fiscal year, 
which shall be in such form and contain such information as the State 
finds necessary to--
            ``(1) provide an accurate description of such services;
            ``(2) secure a complete record of the purposes for which 
        the funds were spent; and
            ``(3) enable a determination of the extent to which the 
        funds were spent in a manner consistent with the information 
        provided by the State pursuant to section 422(b)(5).
    ``(b) Dissemination.--Not later than the date prescribed by the 
Secretary as the due date for each report required by subsection (a), 
each State shall--
            ``(1) transmit to the Secretary a copy of each such report;
            ``(2) make copies of each such report available for public 
        inspection in the State; and
            ``(3) provide copies of each such report, upon request, to 
        any interested public agency, which may provide to the Congress 
        the views of such agency on any such report.
    ``(c) Establishment of Uniform Definitions.--The Secretary shall, 
to the extent feasible, establish uniform definitions of services for 
use by the States in preparing the reports required by subsection (a) 
of this section, taking into consideration the uniform definitions 
established for the reports required by section 2006, and shall take 
such other steps as may be necessary or appropriate to ensure that 
compliance with this section will not be unduly burdensome on the 
States.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 1994, and shall apply to 
        expenditures under State plans under part B of title IV of the 
        Social Security Act in or after fiscal year 1995.
    (b) Comparative Financial Contribution Reports.--
            (1) In general.--Section 422(b) (42 U.S.C. 622(b)), as 
        amended by sections 5(a), 6(a)(2), and 7(a) of this Act, is 
        amended--
                    (A) by striking ``and'' at the end of paragraph 
                (10);
                    (B) by striking the period at the end of paragraph 
                (11) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(12) include information for the second fiscal year 
        preceding the fiscal year covered by the plan, in such form as 
        the Secretary may prescribe by regulation, on--
                    ``(A) the aggregate amount expended by the State 
                and the political subdivisions thereof for the 
                provision of child welfare services (other than foster 
                care maintenance payments and adoption assistance 
                payments), broken down in a manner that shows the 
                extent to which such amount was expended from funds 
                provided by each of Federal, State, or local sources; 
                and
                    ``(B) the aggregate amount expended by the State 
                and the political subdivisions thereof for foster care 
                maintenance payments and adoption assistance payments, 
                broken down in a manner that shows the extent to which 
                such amount was expended from funds provided by each of 
                Federal, State, or local sources.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply to State plans under part B of title IV of the 
        Social Security Act for fiscal year 1995 and to such plans for 
        any succeeding fiscal year.
            (3) Reports to the congress.--Section 422 (42 U.S.C. 622) 
        is amended by adding at the end the following:
    ``(c) The Secretary shall annually transmit to the Committee on 
Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate a summary of the information received from States 
pursuant to subsection (b)(12), and shall make available to the public 
copies of the summary at a charge equal to the cost of printing.''.

SEC. 9. INVOLVEMENT OF PRIVATE PARTIES IN THE DEVELOPMENT OF STATE 
              PLANS.

    (a) In General.--Section 422(b) (42 U.S.C. 622(b)), as amended by 
sections 5(a), 6(a)(2), 7(a), and 8(b)(1) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (11);
            (2) by striking the period at the end of paragraph (12) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(13) provide for the involvement and use of the expertise 
        of nonprofit organizations, and relevant experts, involved in 
        the delivery of services to children and families, and 
        consumers, in the development of the plan.''.

SEC. 10. COMPREHENSIVE SERVICE PROJECTS.

    (a) Comprehensive Service Projects.--
            (1) In general.--Title IV (42 U.S.C. 601-687) is amended by 
        inserting after part B the following:

                ``PART C--COMPREHENSIVE SERVICE PROJECTS

``SEC. 441. COMPREHENSIVE SERVICE PROJECTS.

    ``(a) In General.--
            ``(1) Purpose.--The purpose of this section is to grant not 
        more than 3 States the flexibility and resources necessary to 
        develop comprehensive and coordinated services designed--
                    ``(A) to preserve and strengthen families with 
                children at risk of placement outside their home;
                    ``(B) to reunite children with their families 
                expeditiously if an out-of-home placement is found to 
                be necessary; and
                    ``(C) to place children in adoptive homes or other 
                permanent arrangements in a timely fashion if 
                reunification with their families is not appropriate.
            ``(2) Method.--The method of this section is to permit any 
        State to apply to the Secretary for permission--
                    ``(A) to conduct a comprehensive service project in 
                accordance with this section in such area or areas of 
                the State as the State may select; and
                    ``(B) to suspend certain requirements of parts B 
                and E with respect to the activities of the State in 
                such area or areas during the project.
            ``(3) Entitlement.--For payments to which States authorized 
        to conduct projects under this section are entitled under this 
        part, there shall be available to the Secretary for each fiscal 
        year an amount equal to 10 percent of the aggregate of the 
        amounts that would have been paid to such States under section 
        423 for the fiscal year, and the amounts that would have been 
        paid to such States under section 434 for the fiscal year, if 
        the Secretary had approved the State plans of such States under 
        part B for the fiscal year and had not authorized such States 
        to conduct projects under this section for the fiscal year.
    ``(b) Applications.--Not later than 3 months before the fiscal year 
in which a State desires to commence a comprehensive services project 
under this section, the State may submit to the Secretary an 
application to conduct the project which shall contain the following:
            ``(1) A plan and a timetable for assessing by the end of 
        the fiscal year--
                    ``(A) whether procedures and policies of the child 
                welfare agency of the State, or of the area or areas of 
                the State in which the project is to be conducted, 
                provide for the coordinated delivery of services to 
                children and their families, and the specific barriers 
                that must be overcome to ensure such coordination;
                    ``(B) the service needs of families in the area or 
                areas of the State in which the project is to be 
                conducted whose child or children are at imminent risk 
                of placement outside their home or are in an out-of-
                home placement in the child welfare, juvenile justice, 
                or mental health system;
                    ``(C) specific service programs available in the 
                area or areas of the State in which the project is to 
                be conducted that address the service needs of such 
                families; and
                    ``(D) the extent to which common practices, 
                policies, and procedures among the child welfare, 
                juvenile justice, and mental health systems in the area 
                or areas of the State in which the project is to be 
                conducted govern the assessment of children and their 
                families, the provision of case plans, the delivery of 
                services to children and their families, and the 
                periodic reviews of the services provided, particularly 
                with regard to families whose child or children are at 
                imminent risk of placement outside their home or are in 
                an out-of-home placement;
            ``(2) a plan and a timetable for implementing, to the 
        extent appropriate--
                    ``(A) procedures and policies of the child welfare 
                agency of the State, or of the area or areas of the 
                State in which the project is to be conducted, that 
                will result in the coordinated and efficient delivery 
                of the range of child welfare services to families in 
                the child welfare system;
                    ``(B) a comprehensive services program designed 
                to--
                            ``(i) preserve and strengthen families with 
                        children at imminent risk of placement outside 
                        their home;
                            ``(ii) reunite children with their families 
                        expeditiously if an out-of-home placement is 
                        found to be necessary;
                            ``(iii) place children in adoptive homes or 
                        other permanent arrangements in a timely 
                        fashion if reunification with their families is 
                        not appropriate;
                            ``(iv) meet the primary service needs of 
                        targeted families in the area or areas of the 
                        State in which the project is to be conducted 
                        who are in the child welfare, juvenile justice, 
                        or mental health system and whose child or 
                        children are at imminent risk of placement 
                        outside their home or are in an out-of-home 
                        placement; and
                            ``(v) include, at a minimum, access to 
                        substance abuse treatment, parenting education, 
                        health, mental health, crisis management, and 
                        counseling services;
                    ``(C) a common assessment tool for targeting which 
                children and families who come to the attention of the 
                child welfare, juvenile justice, and mental health 
                systems will participate in the program described in 
                subparagraph (B);
                    ``(D) joint training of staff from the child 
                welfare, mental health, and juvenile justice systems 
                who will be involved in the program described in 
                subparagraph (B);
                    ``(E) a system for delivering services under the 
                program described in subparagraph (B) to families 
                targeted for the program which ensures a single point 
                of entry and uses a unified case management approach, 
                and thereby minimizes unnecessary and duplicative 
                assessments and services;
                    ``(F) an information system to track children and 
                families across systems who participate in the program 
                described in subparagraph (B), which provides data, not 
                less frequently than annually, on the number of 
                children and families served from each system and the 
                nature of the services provided; and
                    ``(G) a mechanism by which to ensure that relevant 
                information on the service and treatment needs and 
                outcomes of children and their families which is 
                developed through their participation in the program 
                described in subparagraph (B) is made available, as 
                appropriate, to case managers and service providers in 
                the relevant agencies who are charged with making 
                service, placement, and other decisions with respect to 
                the children and their families;
            ``(3) a statement of the specific outcomes the State 
        expects by conducting the project, which shall include outcomes 
        in at least the following areas--
                    ``(A) an increase in the well-being of children;
                    ``(B) a reduction in placements and expenditures 
                for out-of-home care relative to what would have 
                occurred otherwise;
                    ``(C) an increase in the level and mix of 
                preventive services available to families in the child 
                welfare, juvenile justice, and mental health systems; 
                and
                    ``(D) an increase in coordination and cooperation 
                among the child welfare, juvenile justice, and mental 
                health agencies;
            ``(4) a specification of the area or areas of the State in 
        which the project is to be conducted, in which must reside not 
        fewer than 300,000 individuals in the aggregate at the time the 
        application is submitted;
            ``(5) a certification that all cost savings resulting from 
        the project will be used to provide child welfare services to 
        families;
            ``(6) a certification that the State will provide the 
        Secretary with such information about the project and the State 
        programs carried out pursuant to parts B and E as the Secretary 
        may request;
            ``(7) a certification that--
                    ``(A) the State will not use any funds provided 
                under this section to supplant any Federal, State, or 
                local funds used for similar purposes;
                    ``(B) the aggregate amount expended from State and 
                local sources by the State and the political 
                subdivisions thereof for the provision of child welfare 
                services (excluding foster care maintenance payments 
                and adoption assistance payments) during any fiscal 
                year will be not less than the aggregate amount so 
                expended during fiscal year 1993; and
                    ``(C) the aggregate amount expended from State and 
                local sources by the State and the political 
                subdivisions thereof for the provision of child welfare 
                services during any fiscal year will be not less than 
                the aggregate amount so expended during fiscal year 
                1993;
            ``(8) a certification that the individual or agency 
        referred to in section 422(b)(1)(A) shall have lead 
        responsibility for the operation and administration of the 
        project under this section;
            ``(9) a certification by the Governor of the State that 
        project activities will be coordinated among the State child 
        welfare, juvenile justice, and mental health agencies, and 
        other appropriate State agencies; and
            ``(10) a list of those requirements of parts B and E which 
        are to apply to the project, in addition to the requirements 
        imposed by the provisions specified in subsection (c)(6)(A) of 
        this section.
    ``(c) Administrative Provisions.--
            ``(1) Notification to states of application requirements.--
        Not later than 6 months after the date of the enactment of this 
        section, the Secretary shall prepare and transmit to each State 
        a detailed explanation of the requirements for conducting a 
        project under this section.
            ``(2) Consideration of applications.--The Secretary shall 
        consider all applications (and amendments thereto) received 
        from States desiring to conduct a project under this section.
            ``(3) Amendment of applications.--A State may, at any time 
        and for any fiscal year, submit to the Secretary 1 or more 
        amendments to any application submitted to the Secretary under 
        this section.
            ``(4) Approval of applications.--
                    ``(A) In general.--The Secretary shall not approve 
                any application of a State to conduct a project under 
                this section, or any amendment thereto, that does not 
                meet the requirements of this section to the 
                satisfaction of the Secretary.
                    ``(B) Freedom of states to select areas in which to 
                conduct the project.--The Secretary may not, as a 
                condition of approval of a State application to conduct 
                a project under this section or of any amendment 
                thereto, require the State to select any particular 
                area or areas of the State in which to conduct the 
                project.
                    ``(C) Freedom of states to select provisions of 
                parts b and e to apply to the project.--The Secretary 
                may not, as a condition of approval of a State 
                application to conduct a project under this section or 
                of any amendment thereto, require the project to comply 
                with any provision of part B or E not specified in 
                paragraph (6)(A) of this subsection.
            ``(6) Authority to conduct project; grant authority.--If 
        the Secretary approves the application of a State to conduct a 
        project under this section, then--
                    ``(A) the Secretary shall authorize the State to 
                conduct the project in accordance with the approved 
                application therefor and any approved amendments 
                thereto, and the requirements of section 427, the 
                provision of section 471(a)(1) requiring the State plan 
                to provide for adoption assistance in accordance with 
                section 473, paragraphs (8), (9), (10), (12), (13), 
                (15), and (16) of section 471(a), and sections 472(h), 
                473, and 479 shall apply to the project; and
                    ``(B) in lieu of receiving the funds that would 
                otherwise be provided to the State for any fiscal year 
                pursuant to sections 423, 434, and 474 (other than with 
                respect to adoption assistance) with respect to the 
                activities of the State in the area or areas of the 
                State in which the project is to be conducted, the 
                State shall be entitled to receive a grant, in 
                accordance with subsection (d) of this section, for 
                each fiscal year, from the amount allotted to the State 
                for the fiscal year under section 421, the total amount 
                allotted to the State for the fiscal year under section 
                432, the amount to which the State is entitled for the 
                fiscal year under part E, and the amount made available 
                pursuant to subsection (a)(3) of this section.
    ``(d) Annual Grants.--
            ``(1) Amount of grant.--
                    ``(A) In general.--The amount of the grant to be 
                paid under this subsection to a State for a fiscal year 
                shall be the amount determined by the Secretary to be--
                            ``(i) the sum of--
                                    ``(I) 110 percent of the aggregate 
                                of the amount that would have been paid 
                                to the State under section 423 for the 
                                fiscal year, and the total amount that 
                                would have been paid to such States 
                                under section 434 for the fiscal year, 
                                if the Secretary had approved the State 
                                plan under part B for the fiscal year 
                                and had not authorized the State to 
                                conduct a project under this section 
                                for the fiscal year; and
                                    ``(II) the aggregate of the 
                                expenses for which the State would 
                                properly have submitted a claim for 
                                reimbursement under section 474 (other 
                                than with respect to adoption 
                                assistance) for the fiscal year if the 
                                Secretary had approved the State plan 
                                under part E for the fiscal year and 
                                had not authorized the State to conduct 
                                a project under this section for the 
                                fiscal year;
                        multiplied by
                            ``(ii) the quotient equal to--
                                    ``(I) the number of children in the 
                                area or areas in which the project is 
                                to be conducted under this section with 
                                respect to whom the State would have 
                                made foster care maintenance payments 
                                under section 472 for the fiscal year 
                                if the Secretary had approved the State 
                                plan under part E for the fiscal year 
                                and had not authorized the State to 
                                conduct the project; divided by
                                    ``(II) the total number of children 
                                in the State with respect to whom the 
                                State would have so made such payments 
                                for the fiscal year.
                    ``(B) Calculation of grant amount.--The Secretary 
                shall calculate the expenses for which a State would 
                properly have submitted a claim for reimbursement under 
                section 474 (other than with respect to adoption 
                assistance) for a fiscal year by--
                            ``(i) determining the amount paid to the 
                        State with respect to such expenses for the 
                        fiscal year immediately preceding the fiscal 
                        year in which the State commenced (or is to 
                        commence) the project under this section;
                            ``(ii) adjusting such amount annually for 
                        inflation based on changes in the Consumer 
                        Price Index for all urban consumers for the 
                        most recent 12-month period for which data are 
                        available; and
                            ``(iii) increasing such amount, to the 
                        extent the Secretary deems appropriate, by 
                        taking into account--
                                    ``(I) any estimate made by the 
                                State of the expenses for which the 
                                State would properly have submitted 
                                such a claim for reimbursement for the 
                                fiscal year;
                                    ``(II) the rate at which the number 
                                of children on whose behalf the Federal 
                                Government has reimbursed foster care 
                                maintenance payments made by States not 
                                participating in the project has 
                                recently increased (emphasizing those 
                                nonparticipating States which have 
                                similar child welfare programs and 
                                similar foster care caseload 
                                characteristics), as determined by the 
                                Secretary;
                                    ``(III) changes in State laws or 
                                procedures that have the effect of 
                                changing the rate at which children are 
                                placed in foster care or changing the 
                                costs of maintaining children in foster 
                                care;
                                    ``(IV) the amount (if any) by 
                                which--
                                            ``(aa) the national average 
                                        number of children per State 
                                        who, as of the end of the 
                                        fiscal year immediately 
                                        preceding the commencement of 
                                        the project, have not attained 
                                        the age of 18 years and were 
                                        eligible for benefits under the 
                                        respective State plan under 
                                        part E (expressed as a 
                                        percentage of the total 
                                        population of children in the 
                                        respective State who have not 
                                        so attained such age); exceeds
                                            ``(bb) the number of such 
                                        children in the State 
                                        (expressed as a similar 
                                        percentage); and
                                    ``(V) other factors deemed 
                                appropriate by the Secretary.
            ``(2) Notification to states of amount of grants.--The 
        Secretary shall notify each State of the amount of the grant to 
        be made to the State for a fiscal year under this subsection, 
        not later than--
                    ``(A) in the case of the first grant with respect 
                to an approved application, the later of--
                            ``(i) 45 days after the Secretary receives 
                        the application therefor; or
                            ``(ii) August 1 of the fiscal year 
                        immediately preceding the fiscal year for which 
                        the grant is to be made; and
                    ``(B) in any other case, August 1 of such 
                immediately preceding fiscal year.
            ``(3) Grants to be paid in equal quarterly installments.--
        The Secretary shall pay each grant under this subsection in 
        equal quarterly installments.
    ``(e) Preservation of Certain Benefits.--During the period in which 
a State is conducting a project under this section--
            ``(1) the State may not carry out the project in a manner 
        which impairs the entitlement of any child to--
                    ``(A) the foster care benefits the child would have 
                received under a State plan approved under part E if 
                the Secretary had approved the State plan under part E 
                for the fiscal year and had not authorized the State to 
                conduct a project under this section for the fiscal 
                year; or
                    ``(B) any other benefit to which the child is 
                entitled by law; and
            ``(2) the State shall, for purposes of section 402(a)(20), 
        be deemed to have in effect a State plan approved under part E.
    ``(f) Report on Expenditures.--
            ``(1) In general.--Not later than April 1 of the fiscal 
        year immediately following each fiscal year for which a State 
        conducts a project under this section, the State shall prepare 
        and submit to the Secretary a report on the funds expended 
        under the project.
            ``(2) Form and content.--
                    ``(A) In general.--The report required by paragraph 
                (1) shall be in such form and contain such information 
                as the State finds necessary to--
                            ``(i) accurately describe how the grant 
                        made under this section for the fiscal year was 
                        used;
                            ``(ii) provide a complete record of how the 
                        grant funds were expended; and
                            ``(iii) enable a determination of the 
                        extent to which the funds were spent in a 
                        manner consistent with the application 
                        therefor.
                    ``(B) Inclusion of information on comparative 
                financial contributions.--The report required by 
                paragraph (1) for any fiscal year after fiscal year 
                1994 shall include the information described in section 
                422(b)(12) for the 2nd preceding fiscal year.
    ``(g) Administrative Remedies for Unsuccessful Projects.--If the 
Secretary has determined that the State is not conducting the project 
in accordance with this section or is not making satisfactory progress 
toward the achievement of the plans of the State, the Secretary may--
            ``(1) provide technical assistance to the project;
            ``(2) require the State to take corrective action with 
        respect to the project; or
            ``(3) after notice and opportunity for hearing, reduce the 
        payments that would otherwise be due the State under this 
        section by an amount which the Secretary determines is 
        appropriate.
    ``(h) Termination of Projects.--
            ``(1) In general.--Any State authorized to conduct a 
        project under this section shall discontinue the project at the 
        end of a fiscal year--
                    ``(A) if the State has notified the Secretary that 
                the State intends to discontinue the project at the end 
                of the fiscal year; or
                    ``(B) if the Secretary has determined that the 
                State is not conducting the project in accordance with 
                this section or is not making satisfactory progress 
                toward the achievement of the plans of the State, and 
                the Secretary does not plan to take action under 
                subsection (g) during the fiscal year with respect to 
                the project.
            ``(2) Effect of project termination.--On the discontinuance 
        of a project of a State under this section, parts B and E shall 
        apply with respect to the population of, and the activities of 
        the State in, the area or areas of the State in which the 
        project was conducted.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 1993.
    (b) Demonstration Projects To Improve Coordination of Services.
            (1) In general.--Part E of title IV (42 U.S.C. 670-679) is 
        amended by inserting after section 474 the following:

``SEC. 474A. DEMONSTRATION PROJECTS FOR THE COORDINATION OF CHILD AND 
              FAMILY SERVICES.

    ``(a) In order to improve the coordination of child and family 
services, the Secretary shall authorize not more than 3 States to 
conduct demonstration projects, to be carried out in accordance with 
this section.
    ``(b) An application to conduct a demonstration project under this 
section submitted by the Governor of a State shall include a 
description of the measures to be employed to improve the coordination 
of the services and benefits provided by child and family services 
programs carried out under the State plan under this part with programs 
which provide services to families and children including some or all 
of the following programs and services:
            ``(1) The program of aid and services for needy families 
        with children carried out under the State plan pursuant to part 
        A.
            ``(2) The child support and spousal support enforcement 
        program carried out under the State plan pursuant to part D.
            ``(3) The job opportunities and basic skills training 
        program carried out under section 402(a)(19) and part F.
            ``(4) The special supplemental food program for women, 
        infants, and children (the WIC program) authorized under 
        section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786).
            ``(5) The maternal and child health block grant program 
        under title V.
            ``(6) Medical assistance furnished under the State plan 
        approved under title XIX.
            ``(7) Drug treatment programs and other substance abuse 
        programs.
            ``(8) Mental health services programs.
            ``(9) Juvenile justice programs.
            ``(10) Programs for developmentally disabled individuals.
            ``(11) Any additional services for children and families 
        that the State determines necessary to meet the needs of all 
        family members in order to carry out the purposes of this 
        section that are approved by the Secretary.
    ``(c) A demonstration project conducted under this section may be 
conducted for a period of not more than 3 years.
    ``(d)(1) Each State that conducts a demonstration project 
authorized by the Secretary under this section shall, as a part of such 
demonstration project, conduct an evaluation of the effectiveness of 
the demonstration project in improving the coordination and the funding 
of child and family services.
    ``(2) Amounts expended by the State for the purposes of conducting 
an evaluation under this subsection shall be considered to be amounts 
expended for the proper and efficient administration of the State plan 
under this part.
    ``(e) Upon completion of a demonstration project under this 
section, each State shall submit a report to the Secretary concerning 
the results of the evaluation described in subsection (d).
    ``(f) Each State shall submit to the Secretary at such time as the 
Secretary may prescribe by regulation--
            ``(1) a description of administrative policies and laws of 
        the Federal Government and the State or a political subdivision 
        of the State, identified by the State as impediments to the 
        coordination of the delivery of the child and family services 
        described in subsection (b); and
            ``(2) a description of the measures that the State has 
        taken or intends to take to eliminate or reduce impediments 
        described in paragraph (1) that are attributable to 
        administrative policies and laws of the State or a political 
        subdivision of the State.
    ``(g) This section shall not be construed to authorize the 
Secretary or appropriate agency head to waive or modify any requirement 
of the programs described in subsection (b).''.
            (2) Payments to states for demonstration projects.--
                    (A) In general.--Section 474(a) (42 U.S.C. 674(a)) 
                is amended--
                            (i) by striking the period at the end of 
                        paragraph (4)(B)(ii) and inserting ``; plus''; 
                        and
                            (ii) by adding at the end the following:
            ``(5) if such State is authorized to conduct a 
        demonstration project pursuant to section 474A, 50 percent of 
        so much of such expenditures (not to exceed $750,000 for each 
        quarter during the period of such demonstration project) to 
        carry out the demonstration project.''.
                    (B) Effective date.--The amendments made by 
                subparagraph (A) shall apply to expenditures made after 
                September 30, 1993.
    (c) Review of Administrative Policies and Regulations.--(1) The 
Secretary of Health and Human Services, the Secretary of Agriculture, 
the Secretary of Education, and the Attorney General of the United 
States shall review the administrative policies and regulations 
relating to the funding and delivery of services for families and 
children (as described in section 474A(b) of the Social Security Act, 
as added by subsection (a) of this section) of the Department of Health 
and Human Services, the Department of Agriculture, the Department of 
Education, and the Department of Justice, respectively, to determine 
whether changes in such administrative policies and regulations may be 
made without statutory changes to improve the funding and delivery of 
such services.
    (2) In conducting a review pursuant to paragraph (1), the heads of 
departments described in paragraph (1) shall consult with appropriate 
representatives of the governments of States and political subdivisions 
of States.
    (3) Not later than July 1, 1994, the heads of the departments 
described in paragraph (1) shall collectively (or separately after 
consultation with the others) issue a report to the Congress that 
includes--
            (A) recommendations for statutory changes, as well as 
        changes in regulations and administrative policies, to improve 
        the coordination of the funding and delivery of child and 
        family services;
            (B) a description of the technical assistance that the 
        heads of the departments will make available to the States to 
        improve the coordination of the funding and delivery of child 
        and family services; and
            (C) an analysis of the impediments identified pursuant to 
        section 474A(f)(1) of the Social Security Act, as added by 
        subsection (a) of this section, as such impediments relate to 
        Federal policies and laws.

SEC. 11. DISSOLVED ADOPTIONS.

    (a) Eligibility for Foster Care Maintenance Payments.--Section 472 
(42 U.S.C. 672) is amended--
            (1) in subsection (b), by inserting ``or (i)'' after 
        ``subsection (a)''; and
            (2) by adding at the end the following:
    ``(i) Any State with a plan approved under this part may make 
foster care maintenance payments under this part on behalf of a child--
            ``(1) with respect to whom such payments were previously 
        made;
            ``(2) whose adoption has been set aside by a court;
            ``(3) who meets the requirements of paragraphs (1), (2), 
        and (3) of subsection (a); and
            ``(4) who fails to meet the requirements of subsection 
        (a)(4) but would meet such requirements if--
                    ``(A) 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 eligible 
                for such payments; and
                    ``(B) the adoption were treated as having never 
                occurred.''.
    (b) Eligibility for Adoption Assistance Payments.--Section 473(a) 
(42 U.S.C. 673(a)) is amended by adding at the end the following:
    ``(7) Any State with a plan approved under this part may enter into 
an adoption assistance agreement with the adoptive parents of any child 
with respect to whom the State may make foster care maintenance 
payments under section 472(i).''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1993, and shall apply to payments under part E of 
title IV of the Social Security Act in or after fiscal year 1994.

SEC. 12. EXTENSION OF DEFINITION OF CHILDREN WITH SPECIAL NEEDS.

    (a) In General.--Section 473(c) (42 U.S.C. 673(c)) is amended to 
read as follows:
    ``(c)(1) For purposes of this section, a child shall not be 
considered a child with special needs unless--
            ``(A) the State determines that--
                    ``(i) the child cannot or should not be returned to 
                the home or the legal custody of the parents of the 
                child;
                    ``(ii) there exists a specific factor or condition 
                (such as his ethnic background, age, or membership in a 
                minority or sibling group, or the presence of factors 
                such as medical conditions or physical, mental, or 
                emotional handicaps), or information available and 
                known about the child indicating a high risk of medical 
                conditions or physical, mental, or emotional handicaps, 
                which makes it reasonable to conclude that the child 
                cannot be placed for adoption without providing 
                adoption assistance under this section or medical 
                assistance under title XIX; and
                    ``(iii) 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 their care as a 
                foster child or a relative, a reasonable but 
                unsuccessful effort has been made to place the child 
                with appropriate adoptive parents without providing 
                adoption assistance or medical assistance under title 
                XIX; or
            ``(B) the State determines that the child--
                    ``(i) has been adopted;
                    ``(ii) immediately before the adoption was under 
                the care and responsibility of the State agency 
                administering or supervising the administration of the 
                State programs under this part or of a private 
                nonprofit organization; and
                    ``(iii) has a mental, physical, or emotional 
                handicap that--
                            ``(I) existed before the adoption but was 
                        not diagnosed until after the adoption; or
                            ``(II) first manifests itself after the 
                        adoption but is congenital or was caused before 
                        the adoption.
    ``(2) Each State shall submit to the Secretary the factors and 
conditions used by the State to identify children with special needs 
for purposes of this section, and any modifications to such factors and 
conditions.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1994, and shall apply with respect to 
children who are adopted after September 30, 1994, and who become 
eligible for adoption assistance payments under section 473 of the 
Social Security Act in or after fiscal year 1995.

SEC. 13. STUDY OF REASONABLE EFFORTS REQUIREMENT BY ADVISORY COMMITTEE.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Health and Human Services (in 
this section referred to as the ``Secretary'') shall establish an 
Advisory Committee on Foster Care Placement (in this section referred 
to as the ``Advisory Committee'') to study and make recommendations 
concerning the implementation of the requirements imposed under section 
471(a)(15) of the Social Security Act.
    (b) Membership.--The Advisory Committee shall consist of not fewer 
than 9 members. In appointing persons to the Advisory Committee, the 
Secretary shall include representatives of the following types of 
organizations and agencies:
            (1) Private, nonprofit organizations with an interest in 
        child welfare (including such organizations that provide child 
        protective services, foster care services, adoption services, 
        or family support services).
            (2) Agencies of States and political subdivisions thereof 
        responsible for child protective services, foster care 
        services, or adoption services.
            (3) Judicial bodies of States and political subdivisions 
        thereof responsible for adjudicating issues of family law (as 
        defined and determined by the Secretary).
    (c) Travel Expenses.--While away from their homes or regular places 
of business and on the business of the Advisory Committee, the members 
of the Advisory Committee may be allowed travel expenses, including per 
diem in lieu of subsistence, as authorized by section 5703 of title 5, 
United States Code, for persons employed intermittently in Government 
service.
    (d) Hiring Authority.--The Advisory Committee may employ and fix 
the level of compensation for 1 individual.
    (e) Report.--Not later than April 1, 1995, the Advisory Committee 
shall submit a report to the Secretary and to the Congress that 
includes legislative or other recommendations concerning the 
implementation of the requirements imposed under section 471(a)(15) of 
the Social Security Act.

SEC. 14. ADOPTION EXPENSE DEDUCTION.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by redesignating section 221 
as section 222 and by inserting after section 221 the following new 
section:

``SEC. 221. SPECIAL NEEDS ADOPTION EXPENSES DEDUCTION.

    ``(a) Allowance of Deduction.--In the case of an individual, there 
shall be allowed as a deduction for the taxable year the amount of the 
qualified adoption expenses paid or incurred by the individual for such 
taxable year.
    ``(b) Limitations.--
            ``(1) Maximum dollar amount.--The aggregate amount of 
        adoption expenses which may be taken into account under 
        subsection (a) with respect to the adoption of a child shall 
        not exceed $3,000.
            ``(2) Denial of double benefit.--
                    ``(A) In general.--No deduction shall be allowable 
                under subsection (a) for any expense for which a 
                deduction or credit is allowable under any other 
                provision of this chapter.
                    ``(B) Reimbursements.--If a taxpayer is reimbursed 
                for any qualified adoption expenses for which a 
                deduction was allowed under subsection (a), the amount 
                of such reimbursement shall be includable in the gross 
                income of the taxpayer in the taxable year in which 
                such reimbursement was received.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified adoption expenses.--The term `qualified 
        adoption expenses' means reasonable and necessary adoption 
        fees, court costs, attorneys fees, and other expenses which--
                    ``(A) are directly related to the legal adoption of 
                a child with special needs by the taxpayer,
                    ``(B) are not incurred in violation of State or 
                Federal law, and
                    ``(C) are of a type eligible for reimbursement 
                under the adoption assistance program under part E of 
                title IV of the Social Security Act.
            ``(2) Child with special needs.--The term `child with 
        special needs' means any child determined by the State to be a 
        child described in subparagraph (A) or (B) of section 473(c)(1) 
        of the Social Security Act.''.
    (b) Deduction Allowed Whether Or Not Taxpayer Itemizes 
Deductions.--Subsection (a) of section 62 of the Internal Revenue Code 
of 1986 is amended by inserting after paragraph (13) the following new 
paragraph:
            ``(14) Adoption expenses.--The deduction allowed by section 
        221 (relating to deduction for expenses of adopting a child 
        with special needs).''.
    (c) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by striking the item relating to section 221 and by inserting 
the following new items:

``Sec. 221. Special needs adoption expenses deduction.
``Sec. 222. Cross reference.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to adoptions occurring in taxable years beginning after December 
31, 1993.

SEC. 15. PERIODIC REEVALUATION OF FOSTER CARE MAINTENANCE PAYMENTS.

    (a) In General.--Section 471(a)(11) (42 U.S.C. 671(a)(11)) is 
amended to read as follows:
            ``(11)(A) provides for periodic review of the standards 
        referred to in paragraph (10) to assure their continuing 
        appropriateness; and
            ``(B) provides for the review, not less frequently than 
        once every 3 years, of the amounts paid as foster care 
        maintenance payments and adoption assistance to assure their 
        continuing appropriateness, and a report to the Secretary and 
        the public on the results of such review at such time and in 
        such form and manner as the Secretary may by regulation 
        require, which contains, at a minimum--
                    ``(i) a statement of the manner in which the foster 
                care maintenance payment level is determined, including 
                information on the cost of foster care with respect to 
                which such payments are made;
                    ``(ii) information with respect to the basic foster 
                care maintenance payment level, whether such payment 
                level includes an amount to cover the cost of clothing, 
                and whether such payment level varies by the type of 
                care or the special needs or age of the child, and if 
                so, the payment levels for each special need, care, or 
                age category;
                    ``(iii) if such payments are not made at a 
                different rate for children with special needs who test 
                positive for human immunodeficiency virus, have 
                acquired immune deficiency syndrome, are addicted to 
                drugs, or suffer from complications due to exposure to 
                drugs or alcohol, the reasons therefor; and
                    ``(iv) information on any limitations imposed by 
                the State on adoption assistance payments levels;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1993, and shall apply to payments under part 
E of title IV of the Social Security Act for fiscal year 1994 and to 
such payments for any succeeding fiscal year.

SEC. 16. CASE REVIEW SYSTEM REQUIREMENTS.

    (a) Accelerated Dispositional Hearing.--Section 475(5)(C) (42 
U.S.C. 675(5)(C)) is amended by striking ``eighteen months'' and 
inserting ``15 months''.
    (b) Periodic Review of Children Free for Adoption.--Section 
475(5)(B) (42 U.S.C. 675(5)(B)) is amended--
            (1) by inserting ``(i)'' after ``(B)'';
            (2) by inserting ``and'' after ``legal guardianship''; and
            (3) by adding at the end the following:
                    ``(ii) if the entity conducting the review finds 
                that the child should be placed for adoption, the 
                entity shall determine and document the measures needed 
                to enhance the likelihood of making the child legally 
                eligible for adoption and of finding an adoptive home 
                for the child, and if the child is legally eligible for 
                adoption, determine and document (I) the specific 
                measures which have been taken, and the specific 
                measures which need to be taken, to make an adoptive 
                placement, or (II) a finding that placement of the 
                child in an adoptive family would be inappropriate,''.
    (c) Most Appropriate Setting.--Section 475(5)(A) (42 U.S.C. 
675(5)(A)) is amended by inserting ``and most appropriate'' after 
``(most family like)''.
    (d) Citizen Volunteer Input.--Section 475(5) (42 U.S.C. 675(5)) is 
amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (3) by inserting at the end the following new subparagraph:
            ``(E) to the extent determined appropriate by the State, 
        citizen volunteers may participate in making recommendations at 
        either the court or administrative reviews described in 
        subparagraph (B) or at the dispositional hearings described in 
        subparagraph (C).''.
    (e) Effective Dates.--
            (1) Accelerated dispositional hearing; periodic review of 
        children free for adoption.--The amendments made by subsections 
        (a) and (b) shall take effect on October 1, 1995, and shall 
        apply to payments under part E of title IV of the Social 
        Security Act for fiscal year 1996 and to such payments for any 
        succeeding fiscal year.
            (2) Most appropriate setting.--The amendment made by 
        subsection (c) shall take effect with respect to case reviews 
        conducted on or after July 1, 1994.
            (3) Citizen volunteer input.--The amendments made by 
        subsection (d) shall take effect on the date of the enactment 
        of this Act.

SEC. 17. HEALTH CARE PLANS FOR FOSTER CHILDREN.

    (a) In General.--Section 475(1)(C) (42 U.S.C. 675(1)(C)) is 
amended--
            (1) in clause (i), by striking ``and addresses'' and 
        inserting ``, addresses, and telephone numbers'',
            (2) in clause (vii), by striking ``and''; and
            (3) by redesignating clause (viii) as clause (ix) and 
        inserting after clause (vii) the following:
                    ``(viii) a record indicating that the child's 
                foster care provider was advised (where appropriate) of 
                the child's eligibility for early and periodic 
                screening, diagnostic, and treatment services under 
                title XIX; and''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to case plans established or reviewed on or after January 1, 
1994.

SEC. 18. PLACEMENT ACCOUNTABILITY.

    (a) Case Plan Provisions Required for Children in Out-of-State 
Foster Care Placements.--Section 475(1) (42 U.S.C. 675(1)) is amended 
by inserting after subparagraph (C) the following:
                    ``(D) In the case of a child receiving foster care 
                maintenance payments under section 472 who is placed in 
                a facility outside the State, a finding that--
                            ``(i) efforts have been made to place the 
                        child in a facility in the State;
                            ``(ii) the child needs services not 
                        available in the State;
                            ``(iii) the placement is in the least 
                        restrictive (most family like) and most 
                        appropriate setting available, consistent with 
                        the best interests and the special needs of the 
                        child; and
                            ``(iv) the placement has been approved by--
                                    ``(I) a court; or
                                    ``(II) a committee (such as a 
                                foster care review board), established 
                                by the State, that reviews placements 
                                outside the State and that, in addition 
                                to the appropriate State personnel, 
                                includes child advocates, parents, and 
                                other individuals the State deems 
                                appropriate.''.
    (b) Status of Children in Out-of-State Foster Care Placements To Be 
Judicially Reviewed Annually With the Child Present.--Section 475(5)(B) 
(42 U.S.C. 675(5)(B)), as amended by section 16(b) of this Act, is 
amended--
            (1) by striking ``and'' at the end of clause (i);
            (2) by adding ``and'' at the end of clause (ii); and
            (3) by adding at the end the following:
                    ``(iii) in the case of a child who is placed by a 
                State in a foster care facility outside the State, the 
                status of the child shall be reviewed by a court, not 
                less frequently than annually, with the child present, 
                unless the court determines that due to the age or 
                condition of the child, or for some other good cause, 
                the presence of the child would be detrimental to the 
                child or would not accomplish a useful purpose,''.
    (c) State Plan Requirement.--Section 471(a) (42 U.S.C. 671(a)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (16);
            (2) by striking the period at the end of paragraph (17) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(18) provides that the State agency must ensure that any 
        facility outside the State in which a child eligible for foster 
        care maintenance payments under section 472 is placed has 
        certified to the originating State that the facility meets the 
        standards of the originating State which apply to child care 
        facilities, or the standards recommended by national 
        organizations concerned with standards for such facilities, 
        including standards of the types described in paragraph 
        (10).''.
    (d) Collection of Data on Numbers of Children in Out-of-State 
Foster Care Placements.--Section 479(c)(3)(C) (42 U.S.C. 679(c)(3)(C)) 
is amended--
            (1) by striking ``and'' at the end of clause (i); and
            (2) by adding at the end the following:
            ``(iii) children placed in foster care outside the State, 
        and''.
    (e) Effective Dates.--
            (1) Case plan, case review system, and state plan 
        changes.--The amendments made by subsections (a), (b), and (c) 
        shall take effect on October 1, 1994 and shall apply to 
        payments under part E of title IV of the Social Security Act 
        for expenditures made in fiscal years 1995, 1996, and 1997.
            (2) Data collection.--The amendments made by subsection (d) 
        shall take effect on October 1, 1995 and shall apply to 
        payments under part E of title IV of the Social Security Act 
        for expenditures made in or after fiscal year 1996.
    (f) Study of Reasons for Making Out-of-State Foster Care 
Placements.--In order for a State to receive payments under section 474 
of the Social Security Act for amounts expended after fiscal year 1995 
for foster care maintenance payments under section 472 of such Act made 
with respect to children placed by the State in foster care outside the 
State, the State shall, by the end of such fiscal year, conduct and 
submit to the Secretary a study designed to identify--
            (1) the number of such children and the characteristics (if 
        any) common to such children; and
            (2) the reasons why such children were not placed in foster 
        care in the State.

SEC. 19. INDEPENDENT LIVING.

    (a) Accumulation of Assets.--Section 477 (42 U.S.C. 677) is 
amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) inserting after subsection (h) the following new 
        subsection:
    ``(i) Notwithstanding any other provision of this title or of title 
XIX, with respect to a child who is included in a program established 
under subsection (a), an amount of the assets of the child which would 
otherwise be regarded as resources for the purposes of determination of 
eligibility for programs under this title or title XIX may be 
disregarded for the purpose of allowing such child to establish a 
household. Such amount may not exceed an amount determined by the State 
agency responsible for the administration of the program as reasonable 
for the purpose of establishing a household.''.
    (b) Permanent Extension.--Section 477 (42 U.S.C. 677) is amended--
            (1) in subsection (a)(1), by striking the 3rd sentence;
            (2) in subsection (c), by striking ``of the fiscal years 
        1988 through 1992'' and inserting ``succeeding fiscal year'';
            (3) in subsection (e)(1)(A), by striking ``each of the 
        fiscal years 1987 through 1992'' and inserting ``any fiscal 
        year''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1993, and shall apply to payments under part E of 
title IV of the Social Security Act for fiscal year 1994 and payments 
made under such part for any succeeding fiscal year.

SEC. 20. ELIMINATION OF FOSTER CARE CEILINGS AND OF AUTHORITY TO 
              TRANSFER UNUSED FOSTER CARE FUNDS TO CHILD WELFARE 
              SERVICES PROGRAMS.

    (a) Repeal.--Subsections (b) and (c) of section 474 (42 U.S.C. 674 
(b) and (c)) are hereby repealed.
    (b) Conforming Amendments.--Section 474 (42 U.S.C. 674) is 
amended--
            (1) in subsection (d)--
                    (A) by striking ``subsections (a), (b), and (c)'' 
                and inserting ``subsection (a)''; and
                    (B) by striking ``the provisions of such 
                subsections'' and inserting ``subsection (a)''; and
            (2) by redesignating subsection (d) as subsection (b).
    (c) Effective Date.--The amendments and repeal made by this section 
shall take effect on October 1, 1993, and shall apply to payments under 
part E of title IV of the Social Security Act for fiscal year 1994 and 
to such payments for any succeeding fiscal year.

SEC. 21. REGULATIONS FOR TRAINING OF AGENCY STAFF AND OF FOSTER AND 
              ADOPTIVE PARENTS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
establish an advisory committee which shall include representatives 
of--
            (1) nonprofit organizations with an interest in child 
        welfare (including organizations that train professional social 
        workers in the field of child welfare services); and
            (2) organizations representing State and local governmental 
        agencies with responsibility for foster care and adoption 
        services.
    (b) Final Regulations.--Not later than 15 months after the date of 
the enactment of this Act, the Secretary of Health and Human Services 
shall, after consultation with the advisory committee established under 
subsection (a), issue final regulations setting forth detailed 
guidelines to assist States in using Federal matching funds authorized 
to be provided under section 474(a)(3) of the Social Security Act for 
the purpose of training for--
            (1) individuals who are employed, or preparing for 
        employment, by the agencies with responsibility for 
        administering the foster care and adoption assistance programs 
        of the States under part E of title IV of such Act; and
            (2) foster and adoptive parents.
    (c) Training for Employment in Child Welfare Agencies.--In order to 
improve the capacity of State and local child welfare agencies to 
administer the programs authorized under parts B and E of title IV of 
the Social Security Act and to provide services to families and 
children, the Secretary of Health and Human Services shall, not later 
than October 1, 1994, develop and publish a model staff recruitment, 
training, and staff retention program for use by such agencies.

SEC. 22. FOSTER AND ADOPTIVE PARENT TRAINING.

    Section 8006(b) of the Omnibus Budget Reconciliation Act of 1989 
(42 U.S.C. 674 note; 103 Stat. 2462) is amended by striking ``, and 
before October 1, 1992''.

SEC. 23. CHILD WELFARE TRAINEESHIPS.

    (a) In General.--Part B of title IV (42 U.S.C. 620-628), as amended 
by section 8(a), is amended by inserting after section 429 the 
following:

``SEC. 429A. CHILD WELFARE TRAINEESHIPS.

    ``(a) The Secretary shall approve an application for a grant to a 
public or nonprofit institution of higher learning to provide 
traineeships with stipends under section 426(a)(1)(C), only if the 
application--
            ``(1) provides assurances that each individual who receives 
        a stipend with such traineeship (in this section referred to as 
        a `recipient') shall enter into an agreement with the 
        institution of higher learning under which the recipient shall 
        agree--
                    ``(A) to participate in onsite training at a public 
                or private child welfare agency on a regular basis (as 
                determined by the Secretary) for the period of the 
                traineeship;
                    ``(B) to be employed for a period of years 
                equivalent to the period of the traineeship in a public 
                or private nonprofit child welfare agency in any State 
                after completing the postsecondary education for which 
                the traineeship was awarded (within such period of time 
                as is determined by the Secretary by regulation);
                    ``(C) to provide the institution of higher learning 
                and the Secretary with evidence of compliance with 
                subparagraphs (A) and (B); and
                    ``(D) in the event that the conditions of 
                subparagraph (A) or (B) are not complied with (except 
                as provided in the exceptions to repayment provisions 
                described in subsection (b)), to repay to the Secretary 
                all or part of the amount of the stipend, plus 
                interest, and if applicable, reasonable collection fees 
                (in compliance with regulations that the Secretary 
                shall promulgate);
            ``(2) provides that an agreement entered into with a 
        recipient shall fully disclose the terms and conditions under 
        which the traineeship with stipend is granted; and
            ``(3) provides assurances that the institution of higher 
        learning shall--
                    ``(A) provide appropriate support and supervision 
                of recipients;
                    ``(B) enter into agreements with child welfare 
                agencies for the onsite training of recipients;
                    ``(C) develop and implement a curriculum in the 
                field of child welfare services that--
                            ``(i) incorporates the most recent 
                        information concerning best practices for the 
                        delivery of child welfare services; and
                            ``(ii) incorporates information relating to 
                        clause (i) supplied to the institution through 
                        consultation with child welfare agencies;
                    ``(D) permit a student who is employed in the field 
                of child welfare services (at the time such student 
                applies for a traineeship) to apply for a traineeship 
                with a stipend if such traineeship furthers the 
                student's progress towards the completion of degree 
                requirements; and
                    ``(E) develop and implement a system that tracks 
                for a period of 3 years, beginning on the date of 
                completion of any student of a child welfare services 
                program of study, the employment record of such student 
                in the field of child welfare services (for the purpose 
                of determining the percentage of students who secure 
                employment in the field of child welfare services and 
                remain employed in such field).
    ``(b) A recipient shall not be considered in violation of the 
agreement entered into pursuant to subsection (a)(1) during any period 
in which the recipient satisfies repayment exceptions that may be 
prescribed by the Secretary by regulation.''.
    (b) Conforming Amendment.--Section 426(a)(1)(C) (42 U.S.C. 
626(a)(1)(C)) is amended by inserting ``described in section 429'' 
after ``including traineeships''.
    (c) Applicability.--The amendments made by this section shall apply 
to grants awarded on or after April 1, 1994.

SEC. 24. PUBLICATION OF PROGRAM DATA.

    (a) In General.--Section 479 (42 U.S.C. 679) is amended by adding 
at the end the following:
    ``(d) Not later than January 31 of each year, the Secretary shall 
submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate, and shall 
make available to the public at a charge equal to the cost of printing, 
a report containing the following information, at least for the most 
recent fiscal year for which such information is available:
            ``(1) A detailed summary, and a breakdown by State, of--
                    ``(A) the expenditures of each State for the 
                program during the fiscal year for each of the programs 
                funded under part B, part C, or this part, broken down 
                in a manner that shows the extent to which such 
                expenditures were made from funds provided by each of 
                Federal or State sources; and
                    ``(B) to the extent available, the number of 
                children or families participating in each of such 
                programs.
            ``(2) Information detailing the schedule and result of the 
        reviews conducted under the regulatory review system 
        established in accordance with section 491, including 
        information on payments withheld, reduced, or sought, or 
        intended by the Secretary to be withheld, reduced, or sought, 
        from each State as a result of such reviews.
            ``(3) The information described in clauses (ii) and (iii) 
        of section 471(a)(11)(B).
            ``(4) An analysis of the services provided with funds made 
        available under part B.
            ``(5) A listing and summary of ongoing research, training, 
        and demonstration projects funded under section 426 or 438 of 
        this Act or under sections 27 through 30 of the Family 
        Preservation and Child Protection Reform Act, and the expected 
        date for the publication of any evaluations of, conclusions 
        based on, or analyses of such projects.
            ``(6) Any other information the Secretary deems useful to 
        monitor the operations of the program.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1994.

SEC. 25. REVIEW OF CHILD WELFARE ACTIVITIES.

    (a) New System for Reviewing Child Welfare Activities.--
            (1) In general.--Title IV (42 U.S.C. 601-687) is amended by 
        adding at the end the following:

                 ``PART G--CHILD WELFARE REVIEW SYSTEM

``SEC. 491. CHILD WELFARE REVIEW SYSTEM.

    ``(a) Establishment by Regulation.--
            ``(1) In general.--The Secretary shall establish, by 
        regulation, a system for--
                    ``(A) the review of each child welfare program of 
                each State for the purposes of--
                            ``(i) assessing whether the program is 
                        being carried out as required by part B or E, 
                        whichever is applicable;
                            ``(ii) identifying any area in which the 
                        program is not being carried out as so 
                        required, and the degree to which the program 
                        is not being so carried out; and
                            ``(iii) identifying the circumstances under 
                        which financial penalties shall be imposed in 
                        cases of failure to comply with part B or E, 
                        whichever is applicable, and imposing financial 
                        penalties proportional to the degree of such 
                        failure to comply, unless action is taken to 
                        correct such failure; and
                    ``(B) the provision of technical assistance to any 
                such program.
            ``(2) State child welfare programs defined.--As used in 
        this section, the term `child welfare programs' means, with 
        respect to a State--
                    ``(A) all activities engaged in by, or under 
                contract with, the State for the purpose of carrying 
                out the State plan for child welfare services under 
                part B; and
                    ``(B) all activities engaged in by, or under 
                contract with, the State for the purpose of carrying 
                out the State plan approved by the Secretary under part 
                E.
    ``(b) Content of Regulations.--The regulations required by 
subsection (a) shall--
            ``(1) require each State child welfare program to be 
        reviewed on a fiscal year basis to determine--
                    ``(A) whether and, where appropriate, the degree to 
                which, the program complies with the requirements of 
                the applicable State plan referred to in subsection 
                (a)(2); and
                    ``(B) the extent to which the amounts claimed to 
                have been expended by the State for foster care 
                maintenance payments under section 472 and for adoption 
                assistance payments under section 473 are eligible for 
                reimbursement under part E;
            ``(2) specify the criteria that are to be used to assess, 
        with respect to each subparagraph of paragraph (1)--
                    ``(A) whether each program has complied with the 
                requirements that apply to the matters described in 
                such subparagraph; and
                    ``(B) the degree of such compliance;
            ``(3) require that the procedures used to determine 
        whether, and, where appropriate, the degree to which a State 
        child welfare program is carried out in compliance with the 
        applicable requirements--
                    ``(A) enable a timely review of all matters 
                referred to in paragraph (1);
                    ``(B) include the sampling of foster care 
                maintenance payments made under section 472, adoption 
                assistance payments made under section 473, and 
                payments for such other activities under the State plan 
                approved under part E as the Secretary deems 
                appropriate;
                    ``(C) be applied uniformly to each State child 
                welfare program; and
                    ``(D) be periodically reviewed and, if necessary, 
                revised to take into account information from completed 
                reviews under such regulations;
            ``(4) provide that a deficiency or error in a State child 
        welfare program is not to be taken into account if the 
        deficiency or error is--
                    ``(A) due to the State's failure to properly 
                implement changes in Federal statute within the 6-month 
                period beginning with the date the statute takes effect 
                or, if later, within the 6-month period beginning with 
                the date the regulation is issued if the regulation is 
                reasonably necessary to construe or apply the statute;
                    ``(B) due to the State's reliance upon and correct 
                use of erroneous information provided by the Secretary 
                about matters or fact;
                    ``(C) due to the State's reliance upon and correct 
                use of written statements of Federal policy provided to 
                the State by the Secretary; or
                    ``(D) of a technical nature and does not materially 
                affect the performance of the program or the protection 
                of children who are in, or at risk of being placed in, 
                foster care;
            ``(5) establish the method by which a financial penalty is 
        to be calculated, with respect to each subparagraph of 
        subsection (b)(1), if there is a failure by a State child 
        welfare program to comply with the requirements that apply to 
        the matters described in such subparagraph;
            ``(6) provide that the financial penalty to be imposed for 
        a failure described in paragraph (5)--
                    ``(A) reflect the degree of the failure; and
                    ``(B) to the extent appropriate, be based on the 
                formula used to determine the amount of a disallowance 
                under section 408(f); and
            ``(7) be developed in consultation with representatives of 
        State agencies administering the programs under parts B and E.
    ``(c) Frequency of Reviews.--Not less frequently than once every 3 
years, the Secretary shall complete a review of each State child 
welfare program for the most recently completed fiscal year under the 
regulatory review system established in accordance with this section.
    ``(d) Effects of Determinations of Noncompliance.--
            ``(1) Notification.--The Secretary shall provide timely 
        notification to any State of any determination under this 
        section that a State child welfare program has failed, with 
        respect to any subparagraph of subsection (b)(1), to comply 
        with the requirements that apply to the matters described in 
        such subparagraph, and shall include with such notice--
                    ``(A) the basis for the determination; and
                    ``(B) the amount of the financial penalty (if any) 
                imposed on the State under the regulations issued under 
                this section.
            ``(2) Determination of penalties.--The regulations setting 
        forth the conditions under which penalties are to be imposed, 
        and the amount of such penalties shall specify, where 
        appropriate--
                    ``(A) thresholds beyond which a State child welfare 
                program will be determined to have failed to comply 
                with Federal requirements, and thresholds beyond which 
                a failure of such a program to comply with such 
                requirements will be determined to be substantial; and
                    ``(B) the circumstances under which a program under 
                part B shall not be subject to penalty (or such penalty 
                shall be withheld or reduced) if the State has 
                developed and followed an approved corrective action 
                plan.
    ``(e) Administrative Review.--
            ``(1) In general.--Within a reasonable time after a State 
        is notified of a determination under this section that there is 
        a failure of a State child welfare program to comply with 
        applicable requirements, and of the amount of the financial 
        penalty imposed on the State under this section with respect to 
        such failure, the State may appeal the determination and the 
        imposition of the penalty (in whole or in part) to the 
        Departmental Appeals Board established in the Department of 
        Health and Human Services, by filing an appeal with the Board.
            ``(2) Authority of board to adjust penalty.--The Board may 
        adjust the amount of the financial penalty to be imposed under 
        this section, taking into account--
                    ``(A) the amount of the financial penalty imposed 
                by the Secretary;
                    ``(B) the proportionality of the penalty to the 
                degree of the failure; and
                    ``(C) where appropriate, whether the failure 
                materially affected the protection of children who are 
                in, or at risk of being placed in, foster care.
    ``(f) Judicial Review.--
            ``(1) In general.--Within a reasonable time after a 
        decision by the Departmental Appeals Board with respect to the 
        imposition of a penalty under the regulatory review system 
        established in accordance with this section, the State may 
        obtain judicial review of the decision by filing an action in--
                    ``(A) the district court of the United States for 
                the judicial district in which the principal or 
                headquarters office of the agency responsible for 
                administering the State child welfare program which is 
                the subject of the decision is located; or
                    ``(B) the United States District Court for the 
                District of Columbia.
            ``(2) Procedural rules.--The district court shall review 
        the decision of the Board on the record established in the 
        proceedings before the Board, in accordance with the standards 
        of review prescribed by subparagraphs (A) through (E) of 
        section 706(2) of title 5, United States Code.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of the enactment of this Act.
    (b) Final Regulations.--
            (1) Deadline for issuance.--Not later than January 1, 1995, 
        the Secretary of Health and Human Services shall issue, in 
        final form, the regulations required by section 491 of the 
        Social Security Act.
            (2) Applicability.--Such regulations shall apply to conduct 
        occurring on or after October 1, 1995.
    (c) Conforming Amendment.--
            (1) In general.--Section 471(b) (42 U.S.C. 671(b)) is 
        amended by striking all that follows the first sentence.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 1995.
    (d) All State Child Welfare Programs To Be Reviewed by the End of 
Fiscal Year 1999.--Not later than September 30, 1999, the Secretary of 
Health and Human Services shall complete at least one review of each 
State child welfare program (as defined in section 491(a)(2) of the 
Social Security Act, as added by subsection (a)(1)) under the 
regulatory review system established in accordance with such section.
    (e) Moratorium on Collecting Disallowances Under Part E.--The 
Secretary of Health and Human Services shall not, before October 1, 
1994, reduce any payment to, withhold any payment from, or seek any 
repayment from, any State under part E of title IV of the Social 
Security Act by reason of a determination made in connection with any 
on-site Federal financial review, or any audit conducted by the 
Inspector General using similar methodologies.
    (f) Moratorium on Collecting Disallowances Under Part B.--Section 
10406 of the Omnibus Budget Reconciliation Act of 1989 (42 U.S.C. 627 
note; 103 Stat. 2490) is amended--
            (1) by striking ``1991'' and inserting ``1994'';
            (2) by striking ``triennial'';
            (3) by striking ``1992'' and inserting ``1995''; and
            (4) by striking the section heading and inserting the 
        following:

``SEC. 10406. TREATMENT OF REVIEWS OF STATE FOSTER CARE PROTECTIONS FOR 
              FISCAL YEARS BEFORE OCTOBER 1, 1994.''

    (g) Payment of State Claims for Foster Care and Adoption 
Assistance.--
            (1) In general.--Section 474 (42 U.S.C. 674), as amended by 
        section 20 of this Act, is amended by adding at the end the 
        following:
    ``(c) The Secretary shall pay any State claim for reimbursement for 
expenditures pursuant to subsection (a) within 90 days after the 
receipt of the claim unless the Secretary issues a deferral or a 
disallowance of the claim before the end of such 90-day period.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of the enactment of this Act, and 
        shall apply to actions taken before, on, or after such date.

SEC. 26. AUTOMATED SYSTEMS.

    (a) Enhanced Match.--
            (1) Payments to states.--
                    (A) In general.--Section 474(a)(3) (42 U.S.C. 
                674(a)(3)) is amended--
                            (i) by striking ``and'' at the end of 
                        subparagraph (B);
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (E); and
                            (iii) by inserting after subparagraph (B) 
                        the following:
            ``(C) 90 percent of so much of such expenditures as are for 
        the planning, design, development, or installation of statewide 
        mechanized data collection and information retrieval systems 
        (including 90 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 
                promulgated pursuant to section 479(b)(2);
                    ``(ii) to the extent practicable, are capable 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 retrieving 
                information from, the State data collection system that 
                collects information relating to the eligibility of 
                individuals under part A (for the purposes of 
                facilitating the verification of the eligibility of 
                foster children); and
                    ``(iv) are determined by the Secretary to be likely 
                to provide more efficient, economical, and effective 
                administration of the programs carried out under the 
                State plan approved under part B or the State plan 
                approved under this part; and
            ``(D) 50 percent of so much of such expenditures as are for 
        the operation of the statewide mechanized data collection and 
        information retrieval systems referred to in subparagraph (C); 
        and''.
                    (B) Treatment of state expenditures for data 
                collection and information retrieval systems.--Section 
                474 (42 U.S.C. 674), as amended by sections 20 and 
                25(g)(1) of this Act, is amended by adding at the end 
                the following:
    ``(d) The Secretary shall treat as necessary for the proper and 
efficient administration of the State plan approved under this part all 
expenditures of a State that are necessary in order for the State to 
plan, design, develop, install, and operate data collection and 
information retrieval systems described in subsection (a)(3)(C), 
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) Conforming amendment.--Section 473(a)(6)(B) (42 
                U.S.C. 673(a)(6)(B)), as amended by section 9102(b) of 
                this Act, is amended by striking ``474(a)(3)(B)'' and 
                inserting ``474(a)(3)(E)''.
                    (D) Effective date.--The amendments made by this 
                paragraph shall apply to payments under part E of title 
                IV of the Social Security Act for expenditures made 
                during the 3-year period that begins 6 months after the 
                date of the enactment of this Act.
            (2) Termination of enhanced match.--
                    (A) In general.--Section 474(a)(3)(C) (42 U.S.C. 
                674(a)(3)(C)), as added by paragraph (1)(A)(iii) of 
                this subsection, is amended by striking ``90'' each 
                place such term appears and inserting ``50''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall take effect on September 30, 
                1996.
                    (C) Construction.--The amendment made by 
                subparagraph (A) of this paragraph shall not be 
                construed to affect any right, entitlement, or duty 
                granted or imposed by, or arising by reason of, the 
                amendments made by paragraph (1).
    (b) Establishment of Group To Advise the Secretary on the Planning 
and Implementation of Automated Systems.--
            (1) In general.--Section 479 (42 U.S.C. 679), as amended by 
        section 24(a) of this Act, is amended by adding at the end the 
        following:
    ``(e) The Secretary shall establish a work group to advise the 
Secretary on the planning and implementation of the system to be used 
for the collection of data relating to adoption and foster care in the 
United States. Such group shall include representatives of--
            ``(1) organizations described in subsection (a)(4)(B)(ii); 
        and
            ``(2) other appropriate groups.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of the enactment of this Act.

SEC. 27. RESEARCH AND EVALUATIONS.

    (a) Foster Care Evaluations; Longitudinal Child Welfare Data Bases; 
Studies of Child Welfare Population Dynamics.--Section 426(b) (42 
U.S.C. 626(b)) is amended to read as follows:
    ``(b) Research and Evaluation Projects.--
            ``(1) Foster care evaluations.--In order to promote more 
        appropriate and effective foster care for children in need of 
        long-term foster care, the Secretary shall, directly or under 
        contract with 1 or more independent research organizations, and 
        in accordance with such criteria as the Secretary deems 
        appropriate, evaluate the effects of alternative foster care 
        arrangements and services on the well-being of children who--
                    ``(A) have little prospect of being reunited with 
                their families, or of being adopted; and
                    ``(B) represent a challenging group of foster 
                children who are in need of specialized services or 
                care.
            ``(2) Longitudinal child welfare data bases; studies of 
        child welfare population dynamics.--
                    ``(A) Contract authority.--In order to develop more 
                appropriate and effective intervention strategies with 
                respect to children and their families who are referred 
                or reported to the child welfare system, the Secretary 
                shall, directly or under contract with 1 or more 
                independent research organizations--
                            ``(i) plan, design, develop, and implement 
                        not more than 4 child welfare data bases that 
                        provide detailed longitudinal information on 
                        children and their families to whom the local 
                        public child welfare system provides services, 
                        from the time such children are first referred 
                        or reported to such system; and
                            ``(ii) using data from such data bases, 
                        conduct such studies on children and their 
                        families served by public child welfare 
                        systems, as the Secretary deems appropriate, 
                        including a study of the extent to which a lack 
                        of affordable housing is a factor in the 
                        placement of children in foster care, and (at 
                        the option of the Secretary) studies of--
                                    ``(I) the movements of subgroups of 
                                children and their families into, 
                                through, and out of the various parts 
                                of the child welfare system;
                                    ``(II) the characteristics of those 
                                children or families who stay in the 
                                system or various parts of the system 
                                for short time periods versus those who 
                                stay for long time periods;
                                    ``(III) the type and intensity of, 
                                and effectiveness of, services that 
                                families receive in the system;
                                    ``(IV) the frequency of contact 
                                between and among foster children, 
                                their parents, and caseworkers;
                                    ``(V) the factors associated with 
                                repeat occurrences of child abuse and 
                                neglect, and other outcomes; and
                                    ``(VI) the condition of children in 
                                the system in areas that may include 
                                educational performance, health, and 
                                personal and social adjustment.
                    ``(B) Agreements with states.--
                            ``(i) In general.--Not later than October 
                        1, 1994, the Secretary shall enter into 
                        agreements with not more than 4 States or 
                        localities to--
                                    ``(I) participate in the planning, 
                                design, development, and operation of a 
                                longitudinal child welfare data base 
                                described in subparagraph (A) in the 
                                participating State or locality 
                                involved; and
                                    ``(II) reimburse such States or 
                                localities for expenditures incurred 
                                with respect to such activities.
                            ``(ii) Payments to states.--Under each such 
                        agreement, the Secretary shall be obligated to 
                        pay the State or locality participating in the 
                        establishment of the data base--
                                    ``(I) from amounts available for 
                                payments under section 474(a)(3)(C), 70 
                                percent of such expenditures as are 
                                incurred during the 3-year period 
                                beginning on October 1, 1994, for the 
                                planning, design, development, 
                                installation, or operation of the data 
                                base; and
                                    ``(II) from amounts available for 
                                payments under section 474(a)(3)(D), 50 
                                percent of such expenditures as are 
                                incurred after the end of such 3-year 
                                period for the operation of the data 
                                base.
                    ``(C) Data base requirements.--The Secretary shall 
                ensure that each longitudinal data base established 
                under this paragraph--
                            ``(i) includes information on the receipt, 
                        by children and their families in the data 
                        base, of particular child welfare services, 
                        including--
                                    ``(I) child protective services;
                                    ``(II) services designed to 
                                strengthen and preserve families;
                                    ``(III) foster care and adoption 
                                services; and
                                    ``(IV) other services made 
                                available by the child welfare system;
                            ``(ii) to the extent feasible, includes 
                        information on the receipt of services, or the 
                        placement of children, through the public 
                        mental health or juvenile justice agencies;
                            ``(iii) includes only data that are 
                        reliable and developed using uniform 
                        definitions and methodologies that are 
                        consistent over time and, to the extent 
                        feasible, among jurisdictions; and
                            ``(iv) to the extent appropriate, is 
                        implemented with the State data collection and 
                        information retrieval systems described in 
                        section 474(a)(3)(C).''.
    (b) Other Research and Evaluations.--
            (1) Study of risks to foster care workers; national 
        workload study; evaluation of foster parent recruitment, 
        training, and education.--The Secretary may--
                    (A) conduct a study to assess the prevalence and 
                nature of risks to the safety of employees of child 
                welfare systems, under which empirical information 
                shall be obtained on--
                            (i) the incidence of violence toward, or 
                        harassment of, such employees;
                            (ii) the types of such employees exposed to 
                        the greatest risk;
                            (iii) the types of harm threatened or 
                        inflicted;
                            (iv) the characteristics of perpetrators of 
                        such violence or threats;
                            (v) the most dangerous child welfare 
                        settings; and
                            (vi) the differences (if any) between urban 
                        and rural areas in the above respects;
                    (B)(i) enter into a contract with an organization 
                or organizations with demonstrated experience in the 
                field of workload measurement for human service 
                agencies--
                            (I) under which the organization is to 
                        conduct a 3-year study to examine methodologies 
                        for measuring the workloads of providers of 
                        child welfare services and providers of 
                        community mental health services; and
                            (II) which, at a minimum, requires the 
                        organization to--
                                    (aa) examine and document which 
                                methodologies are used to measure 
                                caseworker and supervisor workloads;
                                    (bb) develop general standards for 
                                measurement and size of workloads;
                                    (cc) apply and validate standards 
                                for measurement and size of workloads; 
                                and
                                    (dd) develop software that enables 
                                agencies to use appropriate 
                                methodologies to measure workloads; and
                    (ii) consult with an advisory body selected by the 
                Secretary, in planning and carrying out the study 
                described in clause (i); and
                    (C) under contract with an independent research 
                organization, conduct a study that--
                            (i) is designed to evaluate strategies for 
                        the recruitment and retention of foster 
                        parents, and the effects of foster parent 
                        training programs on the retention of foster 
                        parents; and
                            (ii) shall identify successful recruitment 
                        techniques and recommend steps which could be 
                        taken at the Federal, State, or local level to 
                        improve the recruitment, retention, and 
                        training of foster parents.
            (2) Child separation guidelines study.--The Secretary shall 
        conduct a study designed to answer the following questions:
                    (A) How do the criteria for removal of children 
                from the home, and the tools for assessing the risk to 
                the child if not removed from the home, vary from State 
                to State? In considering this question, the Secretary 
                should examine--
                            (i) the decisionmaking process at the 
                        caseworker level in at least 3 States, at least 
                        1 of which has a significantly higher than 
                        average rate of removing children from the 
                        home, at least 1 of which has an approximately 
                        average rate of removing children from the 
                        home, and at least 1 of which has a 
                        significantly lower than average rate of 
                        removing children from the home; and
                            (ii) other factors that may affect 
                        placement rates such as State laws and 
                        policies, interpretations by the State child 
                        welfare agency of the reasonable efforts 
                        requirement of section 471(a)(15) of the Social 
                        Security Act, and the tendency to place or not 
                        place children as a result of economic 
                        incentives provided by various State and 
                        Federal funding sources.
                    (B) What guidelines should be used to assess such 
                risk and determine the need for removal of children 
                from the home, and what kind of training would ensure 
                the consistent application of such guidelines? The 
                Secretary should review and compile all current 
                research relevant to this question.
    (c) Availability of Study Results.--The Secretary shall make the 
results and recommendations of each study described in subsection (b) 
available for dissemination.
    (d) Effective Date.--This section and the amendment made by 
subsection (a) shall take effect on the date of the enactment of this 
Act.

SEC. 28. CHILD WELFARE DEMONSTRATION PROJECTS.

    (a) General Provisions.--
            (1) Minimum number of projects of each type.--The Secretary 
        of Health and Human Services (in this section referred to as 
        the ``Secretary'') shall authorize at least 1 demonstration 
        project to be conducted under each paragraph of subsection (b), 
        and at least 1 demonstration project to be conducted under each 
        clause of subsection (b)(2)(A), during the 4-year period 
        beginning with fiscal year 1995.
            (2) Limitation on authorization of appropriations.--For 
        demonstration projects approved by the Secretary under 
        paragraph (1), there are authorized to be appropriated to the 
        Secretary not to exceed $15,000,000 for each of fiscal years 
        1995, 1996, 1997, and 1998.
    (b) Specific Types of Projects.--
            (1) Expeditious permanent placement of children.--
                    (A) In general.--The Secretary may make no more 
                than 3 grants to States or localities to conduct 
                demonstration projects, throughout the State or in 
                areas selected by the State as having the greatest 
                need, designed to--
                            (i) review statutes, administrative and 
                        judicial procedures, and agency legal 
                        representation, in effect in the State or 
                        locality, that govern determinations of 
                        abandonment of children, termination of 
                        parental rights, and permanent placement of 
                        children, particularly with respect to children 
                        abandoned at or shortly after birth;
                            (ii) assess which of such procedures or 
                        laws cause delays in the permanent placement of 
                        such children or the consideration of 
                        termination of parental rights;
                            (iii) assess the extent, or lack, of 
                        training of judges and child protection service 
                        workers on the timelines for determinations 
                        involving termination of parental rights or 
                        permanent placement of such children;
                            (iv) assess the provision of (and the 
                        impact of providing) coordinated comprehensive 
                        social services, particularly in relation to 
                        reunification or maintenance of families;
                            (v) assess the impact of the designation of 
                        entities or individuals that have or could be 
                        granted standing to initiate placement or 
                        termination of parental rights proceedings with 
                        respect to children who have been placed under 
                        protective care or public supervision;
                            (vi) assess the extent of the current 
                        presence of individuals either employed by a 
                        social service agency or a private entity, who 
                        are specifically responsible for expediting 
                        consideration of the termination of parental 
                        rights and permanent placement, particularly 
                        with respect to children abandoned at or 
                        shortly after birth, and the impact of such 
                        individuals on the timelines for such 
                        considerations;
                            (vii) assess the success of programs which 
                        concurrently provide planning for, and services 
                        to, preadoptive and natural parents; and
                            (viii) implement new procedures or make 
                        other improvements (as determined by the 
                        assessments conducted pursuant to this 
                        paragraph) that ensure more timely hearing of, 
                        and final decisions on, cases involving 
                        termination of parental rights and the 
                        permanent placement of children, with the goal 
                        of substantially reducing the amount of time 
                        that elapses from the time the child is removed 
                        from a home setting and is permanently placed 
                        in a stable adoption placement, including, at 
                        the option of the State or locality, 
                        improvements that include activities that--
                                    (I) provide additional personnel 
                                identified as necessary under any 
                                provision of this paragraph to pursue 
                                or process cases involving termination 
                                of parental rights or expeditious 
                                permanent placements;
                                    (II) expand the standing of foster 
                                parents and others to bring actions 
                                involving the termination of parental 
                                rights and permanent placements; and
                                    (III) require certain children to 
                                be placed in foster care in homes that 
                                are likely to become permanent adoptive 
                                homes of such children.
                    (B) Application.--Each State or locality desiring 
                to conduct a demonstration project under this paragraph 
                shall submit to the Secretary an application 
                containing--
                            (i) an assurance that the State or locality 
                        will develop and carry out the project jointly 
                        with appropriate judicial administrators, and 
                        with appropriate agencies of the State or 
                        locality that provide services to children 
                        abandoned at or shortly after birth; and
                            (ii) such other information as the 
                        Secretary may require by regulation.
                    (C) Approval of certain applications.--
                            (i) In general.--The Secretary shall 
                        approve not more than 3 applications to conduct 
                        projects which appear likely to contribute 
                        significantly to the achievement of the purpose 
                        of this paragraph, particularly as they relate 
                        to changes in the legislative, judicial, and 
                        administrative practices with respect to 
                        permanent placement and termination of parental 
                        rights.
                            (ii) Distribution criterion.--In 
                        determining whether to approve applications 
                        under this paragraph, the Secretary shall 
                        ensure that grants under this paragraph are 
                        made to applicants whose positions on 
                        consideration of parental rights and the 
                        termination of such rights reflect the range of 
                        statutory and judicial positions taken by 
                        States on such matters.
                            (iii) Grant period.--Subject to the 
                        availability of appropriations therefor, the 
                        Secretary shall make grants under this 
                        paragraph for a period of 4 years.
                    (D) Evaluations; report.--Each State and locality 
                that conducts a demonstration project under this 
                paragraph shall develop and carry out a plan for 
                evaluating the effects of the project, and shall submit 
                to the Secretary a report on such evaluation.
                    (E) Dissemination of reports.--The Secretary shall 
                make available to the Congress and the public the 
                reports submitted pursuant to subparagraph (D).
                    (F) Review and evaluation by the secretary.--The 
                Secretary shall periodically review and evaluate the 
                conduct of each demonstration project conducted under 
                this paragraph.
                    (G) Authority to suspend or terminate projects.--
                Notwithstanding subparagraph (C)(iii), the Secretary 
                may suspend for any period or terminate the authority 
                to conduct a demonstration project under this 
                paragraph, and may discontinue the provision of grants 
                under this paragraph for the project, if the Secretary 
                determines that the project has not been conducted in a 
                satisfactory manner.
            (2) Culturally sensitive and special needs child welfare 
        worker training demonstration.--
                    (A) In general.--
                            (i) Training to deliver child welfare 
                        services in border regions.--The Secretary 
                        shall authorize not more than 3 eligible 
                        institutions to conduct demonstration projects 
                        to train eligible individuals to deliver 
                        culturally sensitive and bilingual child 
                        welfare services in areas of the United States 
                        that border on Mexico.
                            (ii) Training to deliver child welfare 
                        services to historically unserved or 
                        underserved populations in certain urban 
                        centers.--In addition, the Secretary may make 
                        no more than 3 grants to eligible institutions 
                        to conduct projects to train eligible 
                        individuals to deliver culturally sensitive and 
                        bilingual welfare services in urban centers 
                        which have a high proportion of historically 
                        unserved or underserved populations.
                    (B) Applications.--
                            (i) Applications under subparagraph 
                        (a)(i).--The Secretary shall approve an 
                        application of an eligible institution to 
                        conduct a demonstration project under 
                        subparagraph (A)(i) for a fiscal year if the 
                        Secretary has approved not more than 4 other 
                        such applications for the fiscal year and the 
                        application meets the following requirements:
                                    (I) History of, or plan for, 
                                training students to deliver child 
                                welfare services in border areas.--The 
                                application demonstrates that the 
                                applicant has a history of, or a plan 
                                for, training students to deliver child 
                                welfare services in an area of the 
                                United States that borders on Mexico.
                                    (II) Training curriculum 
                                requirements.--The application 
                                describes the curriculum of the 
                                training program. Such curriculum must 
                                be sensitive to the culture of the area 
                                that borders on Mexico and the State in 
                                which the applicant is located, and 
                                must include training for the 
                                identification of health problems of 
                                children and their families and of 
                                child abuse and neglect.
                                    (III) Scope and length of 
                                training.--The application includes an 
                                assurance that the training program 
                                meets all requirements established 
                                under subparagraph (C) governing the 
                                scope and length of the training to be 
                                provided.
                                    (IV) Plan for placing individuals 
                                completing the training in border area 
                                family assistance agencies.--The 
                                application contains a plan for placing 
                                each eligible individual who completes 
                                the training under the project in a 
                                family assistance agency that provides 
                                services directly to residents of the 
                                border county in which the agency is 
                                located.
                                    (V) Commitment to consult with 
                                state child welfare agency.--The 
                                application contains a commitment by 
                                the applicant to consult with the child 
                                welfare agency of the State in which 
                                the applicant is located to ensure that 
                                the project is designed to provide 
                                individuals with child welfare skills 
                                that are needed for work with 
                                disadvantaged individuals in the area 
                                of the State that borders on Mexico.
                            (ii) Applications under subparagraph 
                        (a)(ii).--The Secretary shall approve an 
                        application of an eligible institution to 
                        conduct a demonstration project under 
                        subparagraph (A)(ii) for a period of 4 fiscal 
                        years (subject to the availability of funds and 
                        satisfactory performance) if the Secretary has 
                        not approved more than 4 other applications for 
                        such projects and the application meets the 
                        following requirements:
                                    (I) The applicant demonstrates that 
                                it has a history of, expertise in, and 
                                commitment to, providing training for 
                                individuals to deliver child welfare 
                                services to historically unserved or 
                                underserved populations in urban 
                                centers.
                                    (II) The applicant describes how 
                                the application was developed in 
                                consultation with State and local child 
                                welfare agencies, community-based 
                                organizations serving the area to be 
                                affected, and the residents of the 
                                area, including public notice and 
                                opportunity to comment on the training 
                                program to be offered, and a plan for a 
                                continuing consultation process with 
                                these entities.
                                    (III) The curriculum to be offered 
                                includes the broad range of Federal, 
                                State, and local programs available to 
                                provide services to historically 
                                unserved or underserved populations in 
                                urban centers, and the identification 
                                of health problems in children and 
                                their families which may lead to child 
                                abuse or neglect and the presence of 
                                such conditions.
                                    (IV) The application includes an 
                                assurance that the training program 
                                meets all the requirements of 
                                subparagraph (C) governing the scope 
                                and length of the training to be 
                                provided.
                                    (V) The application includes a plan 
                                for placing each eligible individual 
                                who completes the training under the 
                                project in a public or private 
                                nonprofit family assistance agency that 
                                provides services directly to unserved 
                                or underserved populations in urban 
                                centers with high concentrations of 
                                such populations.
                            (iii) Grants subject to appropriations.--
                        The Secretary shall make grants for projects 
                        authorized under subparagraph (A)(ii) subject 
                        to the availability of appropriations therefor.
                            (iv) Review and evaluation by the 
                        secretary.--The Secretary shall periodically 
                        review and evaluate the conduct of each 
                        demonstration project authorized to be 
                        conducted under subparagraph (A)(ii).
                            (v) Authority to suspend or terminate 
                        projects.--The Secretary may suspend for any 
                        period or terminate the authority to conduct a 
                        demonstration project under subparagraph 
                        (A)(ii), and may discontinue the provision of 
                        grants under subparagraph (A)(ii) for the 
                        project, if the Secretary determines that the 
                        project has not been conducted in a 
                        satisfactory manner.
                    (C) Training requirements.--The Secretary, in 
                consultation with the State child welfare agencies of 
                the eligible States, shall develop criteria regarding 
                the scope and length of the training program to be 
                provided under any demonstration project conducted 
                under this paragraph to ensure that training under the 
                program adequately prepares trainees for the work they 
                will perform after completion of the training program. 
                The Secretary shall treat participation in a program 
                leading to a bachelor's or a master's degree in social 
                work as providing such adequate preparation.
                    (D) Grants.--
                            (i) Allocation among states with approved 
                        projects.--Each eligible State in which is 
                        located an eligible institution whose 
                        application to conduct a demonstration project 
                        under subparagraph (A)(i) for a fiscal year has 
                        been approved by the Secretary shall be 
                        allocated for the fiscal year that portion of 
                        the funds available to carry out subparagraph 
                        (A)(i) for the fiscal year that is represented 
                        by--
                                    (I) the number of disadvantaged 
                                individuals who, as of the close of the 
                                second preceding fiscal year, resided 
                                in the border counties of the State; 
                                divided by
                                    (II) the total number of 
                                disadvantaged individuals who, as of 
                                the close of the second preceding 
                                fiscal year, resided in the border 
                                counties of all such eligible States.
                            (ii) Grant authority.--The Secretary shall 
                        make a grant to each eligible institution that 
                        the Secretary authorizes to conduct a 
                        demonstration project under subparagraph (A)(i) 
                        for a fiscal year in an amount equal to--
                                    (I) the amount allocated for the 
                                fiscal year under clause (i) to the 
                                State in which the institution is 
                                located; divided by
                                    (II) the number of eligible 
                                institutions in the State that are so 
                                authorized.
                    (E) Use of grants.--Each eligible institution that 
                receives a grant under this paragraph--
                            (i) shall use the grant to equip eligible 
                        individuals with the knowledge and skills 
                        necessary to perform the range of child welfare 
                        work, from case management to supervisory 
                        skills; and
                            (ii) may use the grant to pay the tuition, 
                        room and board, travel, and other living 
                        expenses of eligible individuals.
                    (F) Definitions.--As used in this paragraph:
                            (i) Border county.--The term ``border 
                        county'' means--
                                    (I) in the State of Texas, the 
                                counties of Cameron, Brooks, Hidalgo, 
                                Kenedy, Willacy, Jim Hogg, Starr, Webb, 
                                Zapata, Duval, LaSalle, Maverick, 
                                Dimmit, Zavala, Uvalde, Kinney, Val 
                                Verde, Edwards, Crockett, Terrell, 
                                Pecos, Brewster, Presidio, Jeff Davis, 
                                Reeves, Culberson, Hudspeth, Bexar, and 
                                El Paso;
                                    (II) in the State of New Mexico, 
                                the counties of Otero, Sierra, Dona 
                                Ana, Luna, Hidalgo, Grant, Lea, 
                                Roosevelt, Chaves, Eddy, and Lincoln;
                                    (III) in the State of Arizona, the 
                                counties of Cochise, Graham, Greenlee, 
                                Maricopa, Pinal, Pima, Yuma, La Paz, 
                                and Santa Cruz; and
                                    (IV) in the State of California, 
                                the counties of Imperial, San Diego, 
                                Riverside, and Orange.
                            (ii) Child welfare agency.--The term 
                        ``child welfare agency'' means, with respect to 
                        a State, the individual or agency that 
                        administers or supervises the administration of 
                        the State plan for child welfare services under 
                        part B of title IV of the Social Security Act.
                            (iii) Disadvantaged individual.--The term 
                        ``disadvantaged individual'' means an 
                        individual whose income does not exceed 130 
                        percent of the income official poverty line (as 
                        defined by the Office of Management and Budget, 
                        and revised annually in accordance with section 
                        673(2) of the Omnibus Budget Reconciliation Act 
                        of 1981) applicable to a family of the size of 
                        the individual's family.
                            (iv) Eligible individual.--The term 
                        ``eligible individual'' means any individual 
                        who--
                                    (I) is, or intends to become, an 
                                employee of a family assistance agency 
                                in an eligible State; and
                                    (II) enters into an agreement with 
                                an eligible institution in the State 
                                under which--
                                          (aa) the institution agrees 
                                        to train the individual to 
                                        deliver culturally sensitive 
                                        and bilingual child welfare 
                                        services in the area of the 
                                        United States that borders on 
                                        Mexico; and
                                          (bb) the individual agrees to 
                                        so deliver such services at or 
                                        from a site approved by the 
                                        child welfare agency of the 
                                        State for at least 1 year 
                                        beginning within a reasonable 
                                        time after the individual 
                                        completes the training under a 
                                        project conducted under 
                                        subparagraph (A)(i), or for a 
                                        period of 1 year for each year 
                                        of assistance or training 
                                        received beginning upon 
                                        completion of the training 
                                        under a project conducted under 
                                        subparagraph (A)(ii).
                            (v) Eligible institution.--The term 
                        ``eligible institution'' means any institution 
                        of higher education that is located in an 
                        eligible State.
                            (vi) Eligible state.--The term ``eligible 
                        State'' means Texas, New Mexico, Arizona, and 
                        California.
                            (vii) Family assistance agency.--The term 
                        ``family assistance agency'' means a child 
                        welfare agency, family planning agency, 
                        hospital, clinic, community mental health 
                        facility, or drug and alcohol treatment 
                        program.
                            (viii) Institution of higher education.--
                        The term ``institution of higher education'' 
                        means--
                                    (I) an institution of higher 
                                education (as defined in section 
                                1201(a) or 481(a) of the Higher 
                                Education Act of 1965); and
                                    (II) an area vocational education 
                                school (as defined in subparagraph (C) 
                                or (D) of section 521(3) of the Carl D. 
                                Perkins Vocational Education Act).
                            (ix) The term ``urban centers'' means an 
                        area in a metropolitan statistical area, as 
                        designated by the Director of the Office of 
                        Management and Budget, which has a high 
                        incidence of individuals in historically 
                        unserved or underserved populations who are in 
                        need of social services, as determined by the 
                        Secretary using the most recent and best 
                        available information. A list of such urban 
                        centers shall be published by the Secretary in 
                        the Federal Register no more than 180 days 
                        after the date of the enactment of this Act.
                            (x) The term ``historically unserved or 
                        underserved populations'' includes--
                                    (I) minority populations;
                                    (II) persons with limited English 
                                proficiency;
                                    (III) populations residing in urban 
                                areas and exhibiting a high incidence 
                                of child abuse, neglect, or 
                                abandonment, as determined by the 
                                Secretary;
                                    (IV) homeless persons (within the 
                                meaning of section 103 of the Stewart 
                                B. McKinney Homeless Assistance Act);
                                    (V) persons who are, or are in 
                                danger of becoming, infected with the 
                                human immunodeficiency virus; and
                                    (VI) persons who abuse alcohol or 
                                drugs.
                    (G) Recovery of assistance in certain cases.--Any 
                individual participating in a project conducted under 
                subparagraph (A) who breaches the agreement referred to 
                in subparagraph (F)(iv)(II) shall repay to the 
                Secretary an amount equal to the amount or value of 
                assistance received by the individual under the 
                project, ratably reduced, if applicable, by a 
                proportion representing that portion of the year during 
                which the individual complied with the agreement. The 
                Secretary shall establish guidelines and repayment 
                schedules to carry out this subparagraph.
            (3) Joint training demonstration.--
                    (A) In general.--The Secretary may make grants 
                under this paragraph, on a competitive basis, to not 
                more than 3 State or local government agencies to 
                conduct demonstration projects designed to test the 
                effect of joint training programs for the staff of 
                child welfare, mental health, and juvenile justice 
                agencies, and for judicial personnel and judges.
                    (B) Eligibility.--To be eligible for a grant under 
                this paragraph, a State or local government agency 
                shall designate a public agency which provides services 
                to children in the State and demonstrate that at least 
                2 such agencies will participate in the project by 
                contributing financial resources, staff resources, and 
                trainees.
                    (C) Approval of certain applications.--The 
                Secretary shall approve not more than 3 applications to 
                conduct projects which appear likely to contribute 
                significantly to the achievement of the purpose of this 
                paragraph.
                    (D) Use of grant.--Each State or local government 
                agency that receives a grant under this paragraph shall 
                use the grant to train staff (including supervisors) of 
                public and private agencies who provide services to 
                children or adolescents at risk of requiring foster 
                care or to the families of such children or 
                adolescents. Such training shall be designed to--
                            (i) educate staff about the special needs 
                        of, and service programs for, certain 
                        populations of children or adolescents, such as 
                        those who have been sexually abused, suffer 
                        from serious emotional disturbances, are 
                        substance abusers, have acquired immune 
                        deficiency syndrome, or are infected with a 
                        human immunodeficiency virus;
                            (ii) coordinate the interagency delivery of 
                        services (including family preservation 
                        services, family reunification services, 
                        independent living services, and supportive 
                        services) to children at risk of being placed 
                        in foster care; and
                            (iii) provide training for judges or other 
                        administrative personnel, who are authorized to 
                        make final determinations as to termination of 
                        parental rights or placement of children in 
                        either temporary or permanent situations, to 
                        determine and incorporate into their decisions 
                        factors relating to the physical, mental, and 
                        social interests of the child.
                    (E) Evaluations; report.--Each State or local 
                government agency that conducts a demonstration project 
                under this paragraph shall develop and carry out a plan 
                for evaluating the effects of the training provided 
                under the project, and shall submit to the Secretary a 
                report on such evaluation.
                    (F) Dissemination of reports.--The Secretary shall 
                make available to the Congress and the public the 
                reports submitted pursuant to subparagraph (E).
    (c) Foster Care and Adoption Assistance Demonstration.--
            (1) In general.--The Secretary may authorize not more than 
        5 States to conduct demonstration projects designed to test, 
        for not more than 6 years, the feasibility of eliminating the 
        requirements in sections 472 and 473 of the Social Security Act 
        that relate to the income and resources of the child or of the 
        family from which a child originated, and allowing States to 
        receive reimbursement for foster care maintenance payments and 
        for adoption assistance payments made with respect to children 
        without regard to such income and resources.
            (2) Application.--Each State desiring to conduct a 
        demonstration project under this subsection shall submit to the 
        Secretary an application in such form and containing such 
        information as the Secretary may require by regulation.
            (3) Agreement on federal matching payments and strategy for 
        evaluation.--
                    (A) In general.--As a condition precedent to 
                approving any application to conduct a demonstration 
                project under this subsection, the Secretary and the 
                State shall reach agreement on--
                            (i) the rates at which the various types of 
                        expenditures under the project shall be 
                        reimbursed, in lieu of the rates at which such 
                        expenditures would otherwise be reimbursed 
                        under section 474 of the Social Security Act; 
                        and
                            (ii) a strategy for evaluating the effects 
                        of the project.
                    (B) Limitation.--The Secretary may not agree to any 
                set of reimbursement rates under subparagraph (A)(i) of 
                this paragraph, unless the Secretary determines that 
                the set of rates is likely to result in an amount of 
                Federal payments to the State under section 474 of the 
                Social Security Act that does not exceed the amount 
                that would have been so paid to the State if the State 
                were not conducting the demonstration project.
            (4) Approval of certain applications.--
                    (A) In general.--The Secretary shall approve not 
                more than 5 applications to conduct projects which 
                appear likely to contribute significantly to the 
                achievement of the purpose of this subsection.
                    (B) Project lifetime.--
                            (i) 3 years.--Each agreement under 
                        paragraph (3) shall be for a term of 3 years.
                            (ii) Authority to renew project for 3 
                        years.--Upon the request of the State, the 
                        Secretary shall extend for 3 additional years 
                        the term of any agreement under paragraph (3).
            (5) Evaluations; report.--Each State that conducts a 
        demonstration project under this subsection shall develop and 
        carry out a plan for evaluating the effects of the project, and 
        shall submit to the Secretary a report on such evaluation.
            (6) Dissemination of reports.--The Secretary shall make 
        available to the Congress and the public the reports submitted 
        pursuant to paragraph (5).

SEC. 29. DEMONSTRATION OF INDEPENDENT LIVING SERVICES FOR YOUNG ADULTS.

    (a) In General.--The Secretary of Health and Human Services may 
authorize 1 State to conduct a demonstration project for 3 years under 
which--
            (1) community-based services are provided to former foster 
        children who have attained the age of 21 years but have not 
        attained the age of 25 years; and
            (2) the State must arrange for an evaluation of the impact 
        of the demonstration project on the well-being of the 
        individuals who participate in the project.
    (b) Services.--The services referred to in subsection (a) may 
include self-help groups, counseling, treatment for survivors of abuse, 
mentoring, alumni groups, and coordination of, and referral to, 
community services by independent living agency staff.

SEC. 30. HOME REBUILDERS DEMONSTRATION PROJECT.

    (a) In General.--Upon written application of the State of New York 
(in this section referred to as the ``State''), and after the Secretary 
of Health and Human Services approves the application as meeting the 
requirements set forth in subsection (b), the State may conduct a 
demonstration project for the purpose of testing how to enhance the 
practices and procedures that will expedite the discharge of children 
from foster care, including the appropriate reunification of children 
with their families, or the adoption of children by suitable adoptive 
parents.
    (b) Project Requirements.--In an application submitted under 
subsection (a), the State shall provide that the following terms and 
conditions shall be in effect under the demonstration project:
            (1) Services and assistance for reunification of children 
        with their families or adoption may be provided to not more 
        than 2,000 eligible children (exclusive of siblings).
            (2) Services and assistance shall be provided to explore 
        and test innovative means to facilitate expedited and 
        appropriate discharge of children from foster care. Such 
        services and assistance may include social services and other 
        forms of assistance designed to ameliorate or remedy personal 
        problems, behaviors, or home conditions.
            (3) For the purpose of testing an alternative to the per 
        diem method of provider reimbursement, payments to 
        participating agencies for total costs associated with 
        providing foster care maintenance, services, and assistance on 
        behalf of children will be disbursed pursuant to an approved 
        per capita reimbursement methodology. The per capita payment 
        will be based on the total number of care days the eligible 
        population of children can reasonably be expected to use during 
        the demonstration period.
            (4) Eligibility for the demonstration project shall be 
        based on the age of the child, the length of time in foster 
        care, the type of placement, and the permanency planning goal.
            (5) If an eligible child has siblings in foster care, 
        siblings may be regarded as eligible project participants for 
        the purpose of estimating total reimbursements in a manner 
        approved by the Secretary of Health and Human Services.
            (6) The Federal Government shall pay to the State with 
        respect to children eligible for the demonstration project who 
        are receiving maintenance payments, services, and assistance 
        under the demonstration project the same amounts as would have 
        been payable with respect to such children under parts B and E 
        of title IV of the Social Security Act as if the families were 
        receiving benefits under the State plan in effect during the 
        period of the demonstration and such amounts shall be in lieu 
        of amounts otherwise payable under such parts. The State and 
        the Secretary of Health and Human Services shall agree to a 
        methodology for determining such amounts prior to the beginning 
        of the demonstration project.
    (c) Waivers.--The Secretary of Health and Human Services may waive 
compliance with requirements in part E of title IV of the Social 
Security Act (other than paragraphs (8), (12), (13), (15), and (16) of 
section 471(a)) which (if applied) would prevent the State from 
carrying out the demonstration project under this section or prevent 
the State from effectively achieving the purpose of such a project.
    (d) Date of Commencement.--The demonstration project under this 
section shall commence not later than December 31, 1994.
    (e) Duration of Demonstration.--The demonstration project under 
this section shall be conducted for a period not to exceed 3 years 
after the date such project begins.
    (f) Evaluation of Reports.--The State shall collect data and 
conduct an appropriate evaluation of the demonstration project so as to 
demonstrate the effectiveness of the project. The evaluation design 
shall be approved by the Secretary of Health and Human Services. The 
State shall provide an interim and final evaluation report to the 
Secretary of Health and Human Services at such times and in such manner 
as such Secretary determines appropriate.
    (g) Prohibition Against Impairment of Entitlement to Foster Care 
Benefits.--The State may not carry out the demonstration project under 
this section in a manner which impairs the entitlement of any qualified 
child to foster care benefits under a State plan approved under part E 
of title IV of the Social Security Act.

SEC. 31. COMMISSION ON CHILDHOOD DISABILITY.

    (a) Establishment of Commission.--The Secretary of Health and Human 
Services (in this section referred to as the ``Secretary'') shall 
appoint a Commission on the Evaluation of Disability in Children (in 
this section referred to as the ``Commission'').
    (b) Appointment of Members.--(1) The Secretary shall appoint 15 
members to the Commission, including--
            (A) recognized experts in the field of medicine, whose work 
        involves--
                    (i) the evaluation and treatment of disability in 
                children,
                    (ii) the study of congenital, genetic, or perinatal 
                disorders in children, or
                    (iii) the measurement of developmental milestones 
                and developmental deficits in children; and
            (B) recognized experts in the fields of--
                    (i) psychology,
                    (ii) education and rehabilitation,
                    (iii) law, or
                    (iv) the administration of disability programs, and
                    (v) other fields of expertise that the Secretary 
                determines to be appropriate.
    (2) Members shall be appointed within 90 days after the date of the 
enactment of this Act, without regard to the provisions of title 5, 
United States Code, governing appointments to competitive service.
    (3) Members appointed under this subsection shall serve for a term 
equivalent to the duration of the Commission.
    (4) The Secretary shall designate a member of the Commission to 
serve as Chairman of the Commission for a term equivalent to the 
duration of the Commission.
    (c) Administrative Provisions.--(1) Service as a member of the 
Commission by an individual who is not otherwise a Federal employee 
shall not be considered service in an appointive or elective position 
in the Federal Government for the purposes of any provision of title 5, 
United States Code.
    (2) Each member of the Commission who is not a full-time Federal 
employee shall be paid compensation at a rate equal to the daily 
equivalent of the rate of basic pay in effect for Level IV of the 
Executive Schedule for each day (including travel time) the member 
attends meetings or otherwise performs the duties of the Commission.
    (3) While away from their homes or regular places of business on 
the business of the Commission, each member who is not a full-time 
Federal employee may be allowed travel expenses, including per diem in 
lieu of subsistence, as authorized by section 5703 of title 5, United 
States Code, for persons employed intermittently in the Government 
service.
    (d) Assistance to Commission.--The Commission may engage such 
technical assistance from individuals skilled in medical and other 
aspects of childhood disability as may be necessary to carry out the 
functions of the Commission. The Secretary shall make available to the 
Commission such secretarial, clerical, and other assistance as the 
Commission may require to carry out the functions of the Commission.
    (e) Study by the Commission.--(1) The Commission shall conduct a 
study, in consultation with the National Academy of Sciences, of the 
effects of the definition of ``disability'' under title XVI of the 
Social Security Act (42 U.S.C. 1382 et seq.) in effect on the date of 
enactment of this Act, as such definition applies to determining 
whether a child under the age of 18 is eligible to receive benefits 
under such title, the appropriateness of such definition, and the 
advantages and disadvantages of using any alternative definition of 
disability in determining whether a child under age 18 is eligible to 
receive benefits under such title.
    (2) The study described in paragraph (1) shall include issues of--
            (A) recommendations for revision of the Childhood Listing 
        of Impairments under regulations promulgated under Part B of 
        Appendix 1 to Subpart P, section 404 of title 20, Code of 
        Federal Regulations;
            (B) the validity of a presumption of disability for 
        children under age 4 with a genetic, congenital, or perinatal 
        disorder;
            (C) whether the need by families for assistance in meeting 
        high costs of medical care for children with serious physical 
        or mental impairments, whether or not they are eligible for 
        disability benefits under title XVI of the Social Security Act, 
        might appropriately be met through expansion of Federal health 
        assistance programs (including the program of medical 
        assistance under title XIX of such Act); and
            (D) such other issues that the Secretary determines to be 
        appropriate.
    (f) Report.--Not later than September 1, 1995, the Commission shall 
prepare a report and submit such report to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate which shall summarize the results of the study described in 
subsection (e) and include any recommendations that the Commission 
determines to be appropriate.
    (g) Termination of Commission.--The Commission shall terminate on 
September 30, 1995.

SEC. 32. EFFECT OF FAILURE TO CARRY OUT STATE PLAN.

    (a) In General.--Part A of title XI (42 U.S.C. 1301-1320b-13) is 
amended by inserting after section 1122 the following:

``SEC. 1123. EFFECT OF FAILURE TO CARRY OUT STATE PLAN.

    ``In an action brought to enforce a provision of this Act, such 
provision is not to be deemed unenforceable because of its inclusion in 
a section of this Act requiring a State plan or specifying the required 
contents of a State plan. This section is not intended--
            ``(1) to limit or expand the grounds for determining the 
        availability of private actions to enforce State plan 
        requirements other than by overturning any such grounds applied 
        in Suter v. Artist M., 112 S. Ct. 1360 (1992), but not applied 
        in prior Supreme Court decisions respecting such 
        enforceability, or
            ``(2) to alter the holding in Suter v. Artist M. that 
        section 471(a)(15) of this Act is not enforceable in a private 
        right of action.''
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to actions pending on the date of the enactment of this Act and 
to actions brought on or after such date of enactment.

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