[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6307 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6307

To amend parts B and E of title IV of the Social Security Act to assist 
  children in foster care in developing or maintaining connections to 
  family, community, support, health care, and school, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 19, 2008

 Mr. McDermott (for himself and Mr. Weller of Illinois) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend parts B and E of title IV of the Social Security Act to assist 
  children in foster care in developing or maintaining connections to 
  family, community, support, health care, and school, 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.

    This Act may be cited as the ``Fostering Connections to Success 
Act''.

SEC. 2. KINSHIP GUARDIANSHIP ASSISTANCE PAYMENTS FOR CHILDREN.

    (a) State Plan Option.--Section 471(a) of the Social Security Act 
(42 U.S.C. 671(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (26);
            (2) by striking the period at the end of paragraph (27) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(28) at the option of the State, provides for the State 
        to enter into kinship guardianship assistance agreements to 
        provide kinship guardianship assistance payments on behalf of 
        children to grandparents and other relatives who have assumed 
        legal guardianship of the children for whom they have cared as 
        foster parents and for whom they have committed to care on a 
        permanent basis, as provided in section 473(d).''.
    (b) In General.--Section 473 of such Act (42 U.S.C. 673) is amended 
by adding at the end the following:
    ``(d) Kinship Guardianship Assistance Payments for Children.--
            ``(1) Kinship guardianship assistance agreement.--
                    ``(A) In general.--In order to receive payments 
                under section 474(a)(6), a State shall--
                            ``(i) negotiate and enter into a written, 
                        binding kinship guardianship assistance 
                        agreement with the prospective relative 
                        guardian of a child who meets the requirements 
                        of this paragraph;
                            ``(ii) provide the prospective relative 
                        guardian with a copy of the agreement; and
                            ``(iii) certify that any child on whose 
                        behalf kinship guardianship assistance payments 
                        are made under the agreement shall be provided 
                        medical assistance under title XIX in 
                        accordance with section 1902(a)(10)(A)(i)(I).
                    ``(B) Minimum requirements.--The agreement shall 
                specify, at a minimum--
                            ``(i) the amount of, and manner in which, 
                        each kinship guardianship assistance payment 
                        will be provided under the agreement;
                            ``(ii) the additional services and 
                        assistance that the child and relative guardian 
                        will be eligible for under the agreement;
                            ``(iii) the procedure by which the relative 
                        guardian may apply for additional services as 
                        needed; and
                            ``(iv) subject to subparagraph (D), that 
                        the State will pay the total cost of 
                        nonrecurring expenses associated with obtaining 
                        legal guardianship of the child, to the extent 
                        the total cost does not exceed $2,000.
                    ``(C) Interstate applicability.--The agreement 
                shall provide that the agreement shall remain in effect 
                without regard to the State residency of the kinship 
                guardian.
                    ``(D) No effect on federal reimbursement.--Nothing 
                in subparagraph (B)(iv) shall be construed as affecting 
                the ability of the State to obtain reimbursement from 
                the Federal Government for costs described in that 
                subparagraph.
            ``(2) Kinship guardianship assistance payment.--
                    ``(A) In general.--The kinship guardianship 
                assistance payment shall be equal to the amount of the 
                foster care maintenance payment for which the child 
                would have been eligible if the child had remained in a 
                foster family home, or, at State option, the amount of 
                the adoption assistance payment for which the child 
                would have been eligible if the child had been adopted, 
                and may be readjusted periodically based on changes in 
                the circumstances of the relative guardians involved 
                and the needs of the child. Notwithstanding the 
                preceding sentence, the amount of the kinship 
                guardianship assistance payment may not exceed the 
                foster care maintenance payment which would have been 
                paid during the period involved if the child had been 
                in a foster family home.
                    ``(B) Limitation.--A State may not make a kinship 
                guardianship assistance payment to a relative guardian 
                for any child who has attained 18 years of age, or such 
                greater age as the State may elect under section 
                475(8)(B)(iii).
            ``(3) Child's eligibility for a kinship guardianship 
        assistance payment.--
                    ``(A) In general.--A child is eligible for a 
                kinship guardianship assistance payment under this 
                subsection if the State agency determines the 
                following:
                            ``(i) The child has been--
                                    ``(I) removed from his or her home 
                                pursuant to a voluntary placement 
                                agreement or as a result of a judicial 
                                determination to the effect that 
                                continuation in the home would be 
                                contrary to the welfare of the child;
                                    ``(II) under the care of the State 
                                agency for the 12-month period ending 
                                on the date of the agency 
                                determination;
                                    ``(III) eligible for foster care 
                                maintenance payments under section 472 
                                while in the home of the prospective 
                                relative guardian; and
                                    ``(IV) residing for at least 6 
                                months with the prospective relative 
                                guardian.
                            ``(ii) Being returned home or adopted are 
                        not appropriate permanency options for the 
                        child.
                            ``(iii) The child demonstrates a strong 
                        attachment to the prospective relative guardian 
                        and the relative guardian has a strong 
                        commitment to caring permanently for the child.
                            ``(iv) With respect to a child who has 
                        attained 14 years of age, the child has been 
                        consulted regarding the kinship guardianship 
                        arrangement.
                    ``(B) Treatment of siblings.--With respect to a 
                child described in subparagraph (A) whose sibling or 
                siblings are not so described--
                            ``(i) the child and any sibling of the 
                        child may be placed in the same kinship 
                        guardianship arrangement if the State agency 
                        and the relative agree on the appropriateness 
                        of the arrangement for the siblings; and
                            ``(ii) kinship guardianship assistance 
                        payments may be paid for the child and each 
                        sibling so placed.''.
    (c) Conforming Amendments.--
            (1) Eligibility for adoption assistance payments.--Section 
        473(a)(2) of such Act (42 U.S.C. 673(a)(2)) is amended by 
        adding at the end the following:
            ``(D) In determining the eligibility for adoption 
        assistance payments of a child in a legal guardianship 
        arrangement described in section 471(a)(28), the placement of 
        the child with the relative guardian involved shall be 
        considered never to have been made.''.
            (2) State plan requirement.--
                    (A) In general.--Section 471(a)(20) of such Act (42 
                U.S.C. 671(a)(20)) is amended--
                            (i) by adding ``and'' at the end of 
                        subparagraph (C); and
                            (ii) by adding at the end the following:
                    ``(D) provides procedures for criminal records 
                checks, including fingerprint-based checks of national 
                crime information databases (as defined in section 
                534(e)(3)(A) of title 28, United States Code), on any 
                relative guardian, and for checks described in 
                subparagraph (C) of this paragraph on any relative 
                guardian and any other adult living in the home of any 
                relative guardian, before the relative guardian may be 
                finally approved for placement of a child regardless of 
                whether kinship guardianship assistance payments are to 
                be made on behalf of the child under the State plan 
                under this part;''.
                    (B) Redesignation of new provision after amendment 
                made by prior law takes effect.--
                            (i) In general.--Section 471(a)(20) of the 
                        Social Security Act (42 U.S.C. 671(a)(20)) is 
                        amended--
                                    (I) in subparagraph (D), by 
                                striking ``(C)'' and inserting ``(B)''; 
                                and
                                    (II) by redesignating subparagraph 
                                (D) as subparagraph (C).
                            (ii) Effective date.--The amendments made 
                        by clause (i) shall take effect immediately 
                        after the amendments made by section 152 of 
                        Public Law 109-248 take effect.
            (3) Payments to states.--Section 474(a) of such Act (42 
        U.S.C. 674(a)) is amended--
                    (A) by striking the period at the end and inserting 
                ``; plus''; and
                    (B) by adding at the end the following:
            ``(6) an amount equal to the percentage by which the 
        expenditures referred to in paragraph (2) of this subsection 
        are reimbursed of the total amount expended during such quarter 
        as kinship guardianship assistance payments under section 
        473(d) pursuant to kinship guardianship assistance 
        agreements.''.
            (4) Definitions.--Section 475(1) of such Act (42 U.S.C. 
        675(1)) is amended by adding at the end the following:
                    ``(F) In the case of a child with respect to whom 
                the permanency plan is placement with a relative and 
                receipt of kinship guardianship assistance payments 
                under section 473(d), a description of--
                            ``(i) the steps that the agency has taken 
                        to determine that it is not appropriate for the 
                        child to be returned home or adopted;
                            ``(ii) the reasons for any separation of 
                        siblings during placement;
                            ``(iii) the reasons why a permanent 
                        placement with a fit and willing relative 
                        through a kinship guardianship assistance 
                        arrangement is in the child's best interests;
                            ``(iv) the ways in which the child meets 
                        the eligibility requirements for a kinship 
                        guardianship assistance payment;
                            ``(v) the efforts the agency has made to 
                        discuss adoption by the child's relative foster 
                        parent as a more permanent alternative to legal 
                        guardianship and, in the case of a relative 
                        foster parent who has chosen not to pursue 
                        adoption, documentation of the reasons 
                        therefor; and
                            ``(vi) the efforts made by the State agency 
                        to discuss with the child's parent or parents 
                        the kinship guardianship assistance 
                        arrangement, or the reasons why the efforts 
                        were not made.''.
    (d) Continued Services Under Waiver.--Section 474 of such Act (42 
U.S.C. 674) is amended by adding at the end the following:
    ``(g) For purposes of this part, after the termination of a 
demonstration project relating to guardianship conducted by a State 
under section 1130, the expenditures of the State for the provision, to 
children who, as of September 30, 2008, were receiving assistance or 
services under the project, of the same assistance and services under 
the same terms and conditions that applied during the conduct of the 
project, are deemed to be expenditures under the State plan approved 
under this part.''.

SEC. 3. FAMILY CONNECTION GRANTS.

    Part B of title IV of the Social Security Act (42 U.S.C. 620-629i) 
is amended by adding at the end the following:

                 ``Subpart 3--Family Connection Grants

``SEC. 441. FAMILY CONNECTION GRANTS.

    ``(a) In General.--The Secretary of Health and Human Services may 
make matching grants to State, local, or tribal child welfare agencies, 
and private nonprofit organizations that have experience in working 
with foster children or children in kinship care arrangements, for the 
purpose of helping children who are in, or at risk of entering, foster 
care reconnect with family members through the implementation of--
            ``(1) kinship navigator programs designed to assist kinship 
        caregivers in navigating their way through programs and 
        services, and to help the caregivers learn about and obtain 
        assistance to meet the needs of the children they are raising 
        and their own needs;
            ``(2) intensive family-finding efforts that utilize search 
        technology to find biological family members for children in 
        the child welfare system, and once identified, work to 
        reestablish relationships and explore ways to find a permanent 
        family placement for the children; or
            ``(3) family group decision-making meetings for children in 
        the child welfare system that engage and empower families to 
        make decisions and develop plans that nurture children and 
        protect them from enduring further abuse and neglect.
    ``(b) Applications.--An entity desiring to receive a matching grant 
under this section shall submit to the Secretary an application, at 
such time, in such manner, and containing such information as the 
Secretary may require, including--
            ``(1) a description of how the grant will be used to 
        implement 1 or more of the activities described in subsection 
        (a);
            ``(2) a description of the types of children and families 
        to be served, including how the children and families will be 
        identified and recruited, and an initial projection of the 
        number of children and families to be served;
            ``(3) if the entity is a private organization--
                    ``(A) documentation of support from the relevant 
                local or State child welfare agency; or
                    ``(B) a description of how the organization plans 
                to coordinate its services and activities with those 
                offered by the relevant local or State child welfare 
                agency; and
            ``(4) an assurance that the entity will cooperate fully 
        with any evaluation provided for by the Secretary under this 
        section.
    ``(c) Limitations.--
            ``(1) Grant duration.--The Secretary may award a grant 
        under this section for a period of not less than 1 year and not 
        more than 3 years.
            ``(2) Number of new grantees per year.--The Secretary may 
        not award a grant under this section to more than 20 new 
        grantees each fiscal year.
    ``(d) Federal Contribution.--The amount of a grant payment to be 
made to a grantee under this section during each year in the grant 
period shall be the following percentage of the total expenditures 
proposed to be made by the grantee in the application approved by the 
Secretary under this section:
            ``(1) 75 percent, if the payment is for the 1st or 2nd year 
        of the grant period.
            ``(2) 50 percent, if the payment is for the 3rd year of the 
        grant period.
    ``(e) Form of Grantee Contribution.--A grantee under this section 
may provide not more than 50 percent of the amount which the grantee is 
required to expend to carry out the activities for which a grant is 
awarded under this section in kind, fairly evaluated, including plant, 
equipment, or services.
    ``(f) Use of Grant.--A grantee under this section shall use the 
grant in accordance with the approved application for the grant.
    ``(g) Reservations of Funds.--
            ``(1) Evaluation.--The Secretary shall reserve 3 percent of 
        the funds made available under subsection (h) for each fiscal 
        year for the conduct of a rigorous evaluation of the activities 
        funded with grants under this section.
            ``(2) Technical assistance.--The Secretary may reserve 2 
        percent of the funds made available under subsection (h) for 
        each fiscal year to provide technical assistance to recipients 
        of grants under this section.
    ``(h) Limitations on Authorization of Appropriations.--To carry out 
this section, there are authorized to be appropriated to the Secretary 
not more than $50,000,000 for each of fiscal years 2009 through 
2013.''.

SEC. 4. NOTIFICATION TO RELATIVES OF FOSTER CARE PLACEMENTS.

    Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as 
amended by section 2(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(29) provides that, not later than 30 days after the date 
        the State places a child in foster care, the State agency shall 
        attempt to locate and notify any noncustodial parents, 
        siblings, grandparents, aunts, or uncles of the child who are 
        adults, of the removal of the child from the custody of the 
        child's parent or parents and explain the options the relative 
        has to participate in the care and placement of the child, 
        subject to exceptions due to family or domestic violence which 
        shall be provided for under State law.''.

SEC. 5. STATE OPTION FOR CHILDREN IN FOSTER CARE, AND CERTAIN CHILDREN 
              IN AN ADOPTIVE OR GUARDIANSHIP PLACEMENT, AFTER ATTAINING 
              AGE 18.

    (a) Definition of Child.--Section 475 of the Social Security Act 
(42 U.S.C. 675) is amended by adding at the end the following:
            ``(8)(A) Subject to subparagraph (B), the term `child' 
        means an individual who has not attained 18 years of age.
            ``(B) At the option of a State, the term shall include an 
        individual--
                    ``(i)(I) who is in foster care under the 
                responsibility of the State;
                    ``(II) with respect to whom an adoption assistance 
                agreement is in effect under section 473 if the child 
                had attained 16 years of age before the agreement 
                became effective; or
                    ``(III) with respect to whom a kinship guardianship 
                assistance agreement is in effect under section 473(d) 
                if the child had attained 16 years of age before the 
                agreement became effective;
                    ``(ii) who has attained 18 years of age;
                    ``(iii) who has not attained 19, 20, or 21 years of 
                age, as the State may elect; and
                    ``(iv) who is--
                            ``(I) completing secondary education or a 
                        program leading to an equivalent credential;
                            ``(II) enrolled in an institution which 
                        provides post-secondary or vocational 
                        education;
                            ``(III) participating in a program or 
                        activity designed to promote, or remove 
                        barriers to, employment; or
                            ``(IV) employed for at least 80 hours per 
                        month.''.
    (b) Conforming Amendment to Definition of Child-Care Institution.--
Section 472(c)(2) of such Act (42 U.S.C. 672(c)(2)) is amended by 
inserting ``, except, in the case of a child who has attained 18 years 
of age, the term shall include a supervised setting in which the 
individual is living independently, in accordance with such conditions 
as the Secretary shall establish in regulations'' before the period.
    (c) Conforming Amendments to Age Limits Applicable to Children 
Eligible for Adoption Assistance or Kinship Guardianship Assistance.--
Section 473(a)(4) of such Act (42 U.S.C. 673(a)(4)) is amended to read 
as follows:
    ``(4)(A) Notwithstanding any other provision of this section, a 
payment may not be made pursuant to this section to parents or relative 
guardians with respect to a child--
            ``(i) who has attained--
                    ``(I) 18 years of age, or such greater age as the 
                State may elect under section 475(8)(B)(iii); or
                    ``(II) 21 years of age, if the State determines 
                that the child has a mental or physical handicap which 
                warrants the continuation of assistance;
            ``(ii) who has not attained 18 years of age, if the State 
        determines that the parents or relative guardians, as the case 
        may be, are no longer legally responsible for the support of 
        the child; or
            ``(iii) if the State determines that the child is no longer 
        receiving any support from the parents or relative guardians, 
        as the case may be.
    ``(B) Parents or relative guardians who have been receiving 
adoption assistance payments or kinship guardianship assistance 
payments under this section shall keep the State or local agency 
administering the program under this section informed of circumstances 
which would, pursuant to this subsection, make them ineligible for the 
payments, or eligible for the payments in a different amount.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2010.

SEC. 6. SHORT-TERM TRAINING FOR CHILD WELFARE AGENCIES AND PROSPECTIVE 
              RELATIVE GUARDIANS.

    (a) In General.--Section 474(a)(3)(B) of the Social Security Act 
(42 U.S.C. 674(a)(3)(B)) is amended--
            (1) by inserting ``or relative guardians'' after ``adoptive 
        parents''; and
            (2) by inserting ``, or State-licensed or State-approved 
        child welfare agencies providing services,'' after ``providing 
        care''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2008.
    (c) Phase-in.--With respect to an expenditure described in section 
474(a)(3)(B) of the Social Security Act by reason of an amendment made 
by subsection (a) of this section, in lieu of the percentage set forth 
in such section 474(a)(3)(B), the percentage that shall apply is--
            (1) 55 percent, if the expenditure is made in fiscal year 
        2009;
            (2) 60 percent, if the expenditure is made in fiscal year 
        2010;
            (3) 65 percent, if the expenditure is made in fiscal year 
        2011; or
            (4) 70 percent, if the expenditure is made in fiscal year 
        2012.

SEC. 7. EQUITABLE ACCESS FOR FOSTER CARE AND ADOPTION SERVICES FOR 
              INDIAN CHILDREN IN TRIBAL AREAS.

    (a) Authority for Indian Tribes To Receive Direct Federal Title Iv-
E Funds.--Section 472(a)(2)(B) of the Social Security Act (42 U.S.C. 
672(a)(2)(B)) is amended--
            (1) in clause (i), by striking ``or'' at the end;
            (2) in clause (ii), by striking ``and'' at the end and 
        inserting ``or''; and
            (3) by adding at the end the following:
                            ``(iii) an Indian tribe or a tribal 
                        organization (as defined in section 479B(a)) or 
                        a tribal consortium, if the Indian tribe, 
                        tribal organization, or tribal consortium--
                                    ``(I) operates a program under 
                                section 479B;
                                    ``(II) has a cooperative agreement 
                                with a State under section 479B(d); or
                                    ``(III) submits to the Secretary a 
                                description of the arrangements 
                                (jointly developed in consultation with 
                                the State) made by the Indian tribe or 
                                tribal consortium for the payment of 
                                funds and the provision of the child 
                                welfare services and protections 
                                required by this title; and''.
    (b) Programs Operated by Indian Tribal Organizations.--Part E of 
title IV of such Act (42 U.S.C. 670 et seq.) is amended by adding at 
the end the following:

``SEC. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL ORGANIZATIONS.

    ``(a) Definitions of Indian Tribe; Tribal Organizations.--In this 
section:
            ``(1) In general.--Except as provided in paragraph (2), the 
        terms `Indian tribe' and `tribal organization' have the 
        meanings given those terms in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(2) Special rule for alaskan tribes.--The term `Indian 
        tribe' means, with respect to the State of Alaska, only the 
        Metlakatla Indian Community of the Annette Islands Reserve and 
        the following Alaska Native regional nonprofit corporations:
                    ``(A) Artice Slope Native Association.
                    ``(B) Kawerak, Inc.
                    ``(C) Maniilaq Association.
                    ``(D) Association of Village Council Presidents.
                    ``(E) Tanana Chiefs Conference.
                    ``(F) Cook Inlet Tribal Council.
                    ``(G) Bristol Bay Native Association.
                    ``(H) Aleutian and Pribilof Island Association.
                    ``(I) Chugachmuit.
                    ``(J) Tlingit Haida Central Council.
                    ``(K) Kodiak Area Native Association.
                    ``(L) Copper River Native Association.
    ``(b) Application.--Except as provided in subsections (c) and (e), 
this part shall apply to an Indian tribe, tribal organization, or a 
tribal consortium that elects to operate a program under this part in 
the same manner as this part applies to a State.
    ``(c) Modification of Plan and Other Requirements.--
            ``(1) In general.--In the case of an Indian tribe, a tribal 
        organization, or a tribal consortium submitting a plan for 
        approval under section 471, the plan--
                    ``(A) shall--
                            ``(i) in lieu of the requirements of 
                        section 471(a)(3), identify the service area or 
                        areas and population to be served by the Indian 
                        tribe, tribal organization, or tribal 
                        consortium; and
                            ``(ii) in lieu of the requirements of 
                        section 471(a)(10), provide for the 
                        establishment and application of standards for 
                        foster family homes and child care institutions 
                        pursuant to tribal standards and in a manner 
                        that ensures the safety of, and accountability 
                        for, children placed in foster care; and
                    ``(B) may, at the option of the Indian tribe, 
                tribal organization, or tribal consortium, in lieu of 
                the requirements of section 471(a)(20), provide 
                procedures for conducting background checks in 
                accordance with the requirements of section 408 of the 
                Indian Child Protection and Family Violence Prevention 
                Act (25 U.S.C. 3207) and regulations issued thereunder, 
                and for conducting checks of child abuse and neglect 
                registries maintained by the Federal Government, by a 
                State, and by an Indian tribe, tribal organization, or 
                tribal consortium in a manner that ensures the safety 
                of, and accountability for, children placed in foster 
                care or who are being placed for adoption.
            ``(2) Determination of federal share; sources of non-
        federal share.--
                    ``(A) Per capita income.--
                            ``(i) In general.--For purposes of 
                        determining the Federal medical assistance 
                        percentage applicable to an Indian tribe, a 
                        tribal organization, or a tribal consortium 
                        under paragraphs (1) and (2) of section 474(a) 
                        (and for purposes of payments made under an 
                        arrangement described in section 
                        472(a)(2)(B)(iii)(III)), the calculation of the 
                        per capita income of the Indian tribe, tribal 
                        organization, or tribal consortium shall be 
                        based upon the service population of the Indian 
                        tribe, tribal organization, or tribal 
                        consortium as defined in the plan of the Indian 
                        tribe, tribal organization, or tribal 
                        consortium, in accordance with paragraph 
                        (1)(A), except that in no case shall an Indian 
                        tribe, a tribal organization, or a tribal 
                        consortium receive less than the Federal 
                        medical assistance percentage for any State in 
                        which the tribe is located.
                            ``(ii) Consideration of other 
                        information.--Before making a calculation under 
                        clause (i), the Secretary shall consider any 
                        information submitted by an Indian tribe, a 
                        tribal organization, or a tribal consortium 
                        that the Indian tribe, tribal organization, or 
                        tribal consortium considers relevant to making 
                        the calculation of the per capita income of the 
                        Indian tribe, tribal organization, or tribal 
                        consortium.
                    ``(B) Administrative, training, and data collection 
                expenditures.--The Secretary shall, by regulation, 
                determine the proportions to be paid to Indian tribes, 
                tribal organizations, and tribal consortiums pursuant 
                to section 474(a)(3) for purposes of this section (and 
                for purposes of payments made under an arrangement 
                described in section 472(a)(2)(B)(iii)(III)), except 
                that in no case shall an Indian tribe, a tribal 
                organization, or a tribal consortium receive a lesser 
                proportion than the corresponding amount specified for 
                a State in that section.
                    ``(C) Sources of non-federal share.--An Indian 
                tribe, tribal organization, or tribal consortium may 
                use Federal, State, tribal, or private funds, which may 
                be in kind, fairly evaluated, including plant, 
                equipment, administration, and services, to match 
                payments for which the tribe, organization, or 
                consortium is eligible under section 474.
            ``(3) Modification of other requirements.--On the request 
        of an Indian tribe, tribal organization, or a tribal 
        consortium, the Secretary may modify any requirement under this 
        part if, after consulting with the Indian tribe, tribal 
        organization, or tribal consortium, the Secretary determines 
        that modification of the requirement would advance the best 
        interests and the safety of children served by the Indian 
        tribe, tribal organization, or tribal consortium.
            ``(4) Consortium.--The participating Indian tribes or 
        tribal organizations of a tribal consortium may develop and 
        submit a single plan under section 471 that meets the 
        requirements of this section.
    ``(d) Cooperative Agreements.--
            ``(1) In general.--An Indian tribe, a tribal organization, 
        or a tribal consortium and a State may enter into a cooperative 
        agreement for the administration or payment of funds under this 
        part.
            ``(2) Application and enforcement of incorporated 
        provisions of this section.--If an Indian tribe, a tribal 
        organization, or a tribal consortium and a State enter into a 
        cooperative agreement that incorporates any of the provisions 
        of this section, those provisions shall be valid and 
        enforceable.
            ``(3) Prior agreements in effect.--Any cooperative 
        agreement described in paragraph (1) that is in effect as of 
        the date of enactment of this section, shall remain in full 
        force and effect subject to the right of either party to the 
        agreement to revoke or modify the agreement pursuant to the 
        terms of the agreement.
    ``(e) John H. Chafee Foster Care Independence Program.--Except as 
provided in section 477(j), subsection (b) of this section shall not 
apply with respect to the John H. Chafee Foster Care Independence 
Program established under section 477 (or with respect to payments made 
under section 474(a)(4) or grants made under section 474(e)).''.
    (c) Application of Federal Matching Rate That Would Apply to Indian 
Tribes, Tribal Organizations, or Tribal Consortia to Expenditures Under 
State Agreements or an Agreement With the Secretary.--
            (1) Foster care maintenance and adoption assistance 
        payments.--Paragraphs (1) and (2) of section 474(a) of such Act 
        (42 U.S.C. 674(a)) are each amended by inserting ``(or, with 
        respect to such payments made during such quarter under an 
        agreement entered into by the State and an Indian tribe, tribal 
        organization, or tribal consortium, or under an arrangement 
        described in section 472(a)(2)(B)(iii)(III), an amount equal to 
        the Federal medical assistance percentage that would apply 
        under subsection (c)(2)(A) of section 479B (in this paragraph 
        referred to as the `tribal FMAP') if such Indian tribe, tribal 
        organization, or tribal consortium made such payments under a 
        program operated under that section, unless the tribal FMAP is 
        less than the Federal medical assistance percentage that 
        applies to the State)'' before the semicolon.
            (2) Administrative expenditures.--Section 474(a)(3) of such 
        Act (42 U.S.C. 674(a)(3)) is amended--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``section 472(i)'' and inserting 
                ``subparagraph (E) and section 472(i)'';
                    (B) in subparagraph (D), by striking ``and'' at the 
                end;
                    (C) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (D) by inserting after subparagraph (D) the 
                following:
                    ``(E) in the case of a State that has entered into 
                an agreement with an Indian tribe, tribal organization, 
                or tribal consortium (or an Indian tribe, tribal 
                organization, or tribal consortium with an arrangement 
                described in section 472(a)(2)(B)(iii)(III)), an amount 
                equal to the proportions that would be paid to such 
                tribe, organization, or consortium pursuant to 
                regulations issued under section 479B(c)(2)(B) if the 
                tribe, organization, or consortium operated a program 
                under that section; and''.
    (d) Hold Harmless for Indian Families Receiving Foster Care 
Maintenance Payments or Adoption Assistance.--Nothing in the amendments 
made by this Act shall be construed as authorization to terminate 
funding to any Indian or Indian family currently receiving foster care 
maintenance payments or adoption assistance on behalf of a child and 
for which the State receives Federal matching payments under paragraph 
(1) or (2) of section 474(a) of the Social Security Act, regardless of 
whether a cooperative agreement between the State and an Indian tribe, 
tribal organization, or tribal consortium is in effect pursuant to 
subsection (d) of section 479B(d) of such Act, or an Indian tribe, 
tribal organization, or tribal consortium elects to operate a foster 
care and adoption assistance program directly under such section 479B.
    (e) Nonapplication of Certain Eligibility Requirements for Indian 
Children.--Section 472(a) of such Act (42 U.S.C. 672(a)) is amended by 
adding at the end the following:
            ``(5) Nonapplication of certain requirements for indian 
        children.--In the case of an Indian tribe, tribal organization, 
        or tribal consortium that assumes responsibility for 
        administering the program under this part through a cooperative 
        agreement with the State under section 479B(d), or that elects 
        to operate a foster care and adoption assistance program 
        directly under section 479B, the following rules shall apply:
                    ``(A) Use of affidavits, etc.--The requirement in 
                paragraph (1) shall not be interpreted so as to 
                prohibit the use of affidavits or nunc pro tunc orders 
                as verification documents in support of the reasonable 
                efforts and contrary to the welfare of the child 
                judicial determinations required under such paragraph.
                    ``(B) Residency requirement imposed under afdc 
                state plan.--Notwithstanding paragraph (3)(A), any 
                residency requirement imposed under the State plan 
                referred to in such paragraph shall not apply with 
                respect to a child for whom an Indian tribe, tribal 
                organization, or tribal consortium assumes 
                responsibility.''.
    (f) Authority To Receive Portion of State Allotment as Part of an 
Agreement To Operate the John H. Chafee Foster Care Independence 
Program.--
            (1) In general.--Section 477 of such Act (42 U.S.C. 677) is 
        amended by adding at the end the following:
    ``(j) Authority for an Indian Tribe, Tribal Organization, or Tribal 
Consortium To Receive an Allotment.--
            ``(1) In general.--An Indian tribe, tribal organization, or 
        tribal consortium with a plan approved under section 479B, 
        which is receiving funding to provide foster care under this 
        part pursuant to a cooperative agreement with a State, or that 
        provides child welfare services and protections in accordance 
        with an arrangement submitted to the Secretary under section 
        472(a)(2)(B)(iii)(III), may apply for an allotment out of any 
        funds authorized by paragraph (1) or (2) (or both) of 
        subsection (h) of this section.
            ``(2) Application.--An Indian tribe, tribal organization, 
        or tribal consortium desiring an allotment under paragraph (1) 
        shall submit an application to the Secretary to directly 
        receive such allotment that includes a plan that satisfies such 
        requirements of paragraphs (2) and (3) of subsection (b) as the 
        Secretary determines are appropriate.
            ``(3) Payments.--The Secretary shall pay an Indian tribe, 
        tribal organization, or tribal consortium with an application 
        and plan approved under this subsection from the allotment 
        determined for the tribe, organization, or consortium under 
        paragraph (4) of this subsection in the same manner as is 
        provided in section 474(a)(4) (and, where requested, and if 
        funds are appropriated, section 474(e)) with respect to a 
        State, or in such other manner as is determined appropriate by 
        the Secretary, except that in no case shall an Indian tribe, a 
        tribal organization, or a tribal consortium receive a lesser 
        proportion of such funds than a State is authorized to receive 
        under those sections.
            ``(4) Allotment.--From the amounts allotted to a State 
        under subsection (c) of this section for a fiscal year, the 
        Secretary shall allot to each Indian tribe, tribal 
        organization, or tribal consortium with an application and plan 
        approved under this subsection for that fiscal year an amount 
        equal to the tribal foster care ratio determined under 
        paragraph (5) of this subsection for the tribe, organization, 
        or consortium multiplied by the allotment amount of the State 
        within which the tribe, organization, or consortium is located. 
        The allotment determined under this paragraph is deemed to be a 
        part of the allotment determined under section 477(c) for the 
        State in which the Indian tribal organization or tribal 
        consortium is located.
            ``(5) Tribal foster care ratio.--For purposes of paragraph 
        (4), the tribal foster care ratio means, with respect to an 
        Indian tribe, tribal organization, or tribal consortium, the 
        ratio of--
                    ``(A) the number of children in foster care under 
                the responsibility of the Indian tribe, tribal 
                organization, or tribal consortium (either directly or 
                under supervision of the State), in the most recent 
                fiscal year for which the information is available; to
                    ``(B) the sum of--
                            ``(i) the total number of children in 
                        foster care under the responsibility of the 
                        State within which the Indian tribe, tribal 
                        organization, or tribal consortium is located; 
                        and
                            ``(ii) the total number of children in 
                        foster care under the responsibility of all 
                        Indian tribes, tribal organizations, or tribal 
                        consortia (either directly or under supervision 
                        of the State).''.
            (2) Authority to receive portion of state allotment as part 
        of a cooperative agreement entered into with respect to the 
        chafee program.--Section 477(b)(3)(G) of such Act (42 U.S.C. 
        677(b)(3)(G)) is amended--
                    (A) by striking ``and that'' and inserting 
                ``that''; and
                    (B) by striking the period and inserting ``; and 
                that each Indian tribe, tribal organization, or tribal 
                consortium in the State that does not receive an 
                allotment under subsection (j)(4) for a fiscal year may 
                enter into a cooperative agreement or contract with the 
                State to administer, supervise, or oversee the programs 
                to be carried out under the plan with respect to the 
                Indian children who are eligible for such programs and 
                who are under the authority of the Indian tribe and to 
                receive from the State an appropriate portion of the 
                State allotment under subsection (c) for the cost of 
                such administration, supervision, or oversight.''.
    (g) Rule of Construction.--Nothing in the amendments made by this 
Act shall be construed as affecting the responsibility of a State--
            (1) as part of the plan approved under section 471 of the 
        Social Security Act (42 U.S.C. 671), to provide foster care 
        maintenance payments and adoption assistance for Indian 
        children who are eligible for such payments or assistance and 
        who are not otherwise being served by an Indian tribe, tribal 
        organization, or tribal consortium pursuant to a foster care 
        and adoption assistance program operated under section 479B of 
        such Act; or
            (2) as part of the plan approved under section 477 of such 
        Act (42 U.S.C. 677) to administer, supervise, or oversee 
        programs carried out under that plan on behalf of Indian 
        children who are eligible for such programs if such children 
        are not otherwise being served by an Indian tribe, tribal 
        organization, or tribal consortium pursuant to an approved plan 
        under section 477(j) or a cooperative agreement or contract 
        entered into under section 477(b)(3)(G) of such Act.
    (h) Regulations.--Not later than 1 year after the date of enactment 
of this section, the Secretary, in consultation with Indian tribes, 
tribal organizations, tribal consortia, and affected States, shall 
promulgate regulations to carry out the amendments made by this 
section.
    (i) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2010.

SEC. 8. HEALTH OVERSIGHT AND COORDINATION PLAN.

    Section 422(b)(15) of the Social Security Act (42 U.S.C. 
622(b)(15)) is amended to read as follows:
            ``(15)(A) provides that the State will develop, in 
        coordination and collaboration with the State agency referred 
        to in paragraph (1) and the State agency responsible for 
        administering the State plan approved under title XIX, and in 
        consultation with pediatricians, other experts in health care, 
        and experts in and recipients of child welfare services, a plan 
        for the ongoing oversight and coordination of health care 
        services for any child in a foster care placement, which shall 
        ensure a coordinated strategy to identify and respond to the 
        health care needs of children in foster care placements, 
        including mental health and dental health needs, and shall 
        include an outline of--
                    ``(i) a schedule for initial and follow-up health 
                screenings that meet reasonable standards of medical 
                practice;
                    ``(ii) how health needs identified through 
                screenings will be monitored and treated;
                    ``(iii) how medical information for children in 
                care will be updated and appropriately shared, which 
                may include the development and implementation of an 
                electronic health record;
                    ``(iv) steps to ensure continuity of health care 
                services, which may include the establishment of a 
                medical home for every child in care;
                    ``(v) the oversight of prescription medicines; and
                    ``(vi) how the State actively consults with and 
                involves physicians or other appropriate medical 
                professionals in assessing the health and well-being of 
                children in foster care and in determining appropriate 
                medical treatment for the children; and
            ``(B) subparagraph (A) shall not be construed to reduce or 
        limit the responsibility of the State agency responsible for 
        administering the State plan approved under title XIX to 
        administer and provide care and services for children with 
        respect to whom services are provided under the State plan 
        developed pursuant to this subpart;''.

SEC. 9. EDUCATIONAL STABILITY.

    (a) In General.--Section 475 of the Social Security Act (42 U.S.C. 
675), as amended by section 2(c)(4) of this Act, is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (C), by striking clause (iv) 
                and redesignating clauses (v) through (viii) as clauses 
                (iv) through (vii), respectively; and
                    (B) by adding at the end the following:
                    ``(G) A plan for ensuring the educational stability 
                of the child while in foster care, including--
                            ``(i) assurances that the placement of the 
                        child in foster care takes into account the 
                        appropriateness of the current educational 
                        setting and the proximity to the school in 
                        which the child is enrolled at the time of 
                        placement; and
                            ``(ii)(I) an assurance that the State 
                        agency has coordinated with appropriate local 
                        educational agencies (as defined under section 
                        9101 of the Elementary and Secondary Education 
                        Act of 1965) to ensure that the child remains 
                        in the school in which the child is enrolled at 
                        the time of placement; or
                            ``(II) if remaining in such school is not 
                        in the best interests of the child, assurances 
                        by the State agency and the local educational 
                        agencies to provide immediate and appropriate 
                        enrollment in a new school, with all of the 
                        educational records of the child provided to 
                        the school.''; and
            (2) in the 1st sentence of paragraph (4)(A)--
                    (A) by striking ``and reasonable'' and inserting 
                ``reasonable''; and
                    (B) by inserting ``, and reasonable travel for the 
                child to remain in the school in which the child is 
                enrolled at the time of placement'' before the period.
    (b) Educational Attendance Requirement.--Section 471(a) of the 
Social Security Act (42 U.S.C. 671(a)), as amended by sections 2(a) and 
4 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (28);
            (2) by striking the period at the end of paragraph (29) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(30) provides assurances that each child who has attained 
        the minimum age for compulsory school attendance under State 
        law and with respect to whom there is eligibility for a payment 
        under the State plan is a full-time elementary or secondary 
        school student or has completed secondary school, and for 
        purposes of this paragraph, the term `elementary or secondary 
        school student' means, with respect to a child, that the child 
        is--
                    ``(A) enrolled (or in the process of enrolling) in 
                an institution which provides elementary or secondary 
                education, as determined under the law of the State or 
                other jurisdiction in which the institution is located;
                    ``(B) instructed in elementary or secondary 
                education at home in accordance with a home school law 
                of the State or other jurisdiction in which the home is 
                located;
                    ``(C) in an independent study elementary or 
                secondary education program in accordance with the law 
                of the State or other jurisdiction in which the program 
                is located, which is administered by the local school 
                or school district; or
                    ``(D) incapable of attending school on a full-time 
                basis due to the medical condition of the child, which 
                incapability is supported by regularly updated 
                information included in the case plan of the child.''.

SEC. 10. SIBLING PLACEMENT.

    Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as 
amended by sections 2(a), 4, and 9(b) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (29);
            (2) by striking the period at the end of paragraph (30) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(31) provides that reasonable efforts shall be made to 
        place siblings removed from their home in the same foster care, 
        kinship guardianship, or adoptive placement unless the State 
        documents that such a joint placement would be contrary to the 
        safety or well-being of any of the siblings.''.

SEC. 11. ADOPTION INCENTIVES PROGRAM.

    (a) 5-Year Extension.--Section 473A of the Social Security Act (42 
U.S.C. 673b) is amended--
            (1) in subsection (b)(4), by striking ``in the case of 
        fiscal years 2001 through 2007,'';
            (2) in subsection (b)(5), by striking ``1998 through 2007'' 
        and inserting ``2008 through 2012'';
            (3) in subsection (c)(2), by striking ``each of fiscal 
        years 2002 through 2007'' and inserting ``a fiscal year''; and
            (4) in each of subsections (h)(1)(D), and (h)(2), by 
        striking ``2008'' and inserting ``2013''.
    (b) Updating of Fiscal Year Used in Determining Base Numbers of 
Adoptions.--Section 473A(g) of such Act (42 U.S.C. 673b(g)) is 
amended--
            (1) in paragraph (3), by striking ``means'' and all that 
        follows and inserting ``means, with respect to any fiscal year, 
        the number of foster child adoptions in the State in fiscal 
        year 2007.'';
            (2) in paragraph (4)--
                    (A) by inserting ``that are not older child 
                adoptions'' before ``for a State''; and
                    (B) by striking ``means'' and all that follows and 
                inserting ``means, with respect to any fiscal year, the 
                number of special needs adoptions that are not older 
                child adoptions in the State in fiscal year 2007.''; 
                and
            (3) in paragraph (5), by striking ``means'' and all that 
        follows and inserting ``means, with respect to any fiscal year, 
        the number of older child adoptions in the State in fiscal year 
        2007.''.
    (c) Increase in Incentive Payments for Special Needs Adoptions and 
Older Child Adoptions.--Section 473A(d)(1) of such Act (42 U.S.C. 
673b(d)(1)) is amended--
            (1) in subparagraph (B), by striking ``$2,000'' and 
        inserting ``$4,000''; and
            (2) in subparagraph (C), by striking ``$4,000'' and 
        inserting ``$8,000''.
    (d) 24-Month Availability of Payments to States.--Section 473A(e) 
of such Act (42 U.S.C. 673b(e)) is amended--
            (1) in the heading, by striking ``2-year'' and inserting 
        ``24-month''; and
            (2) by striking ``through the end of the succeeding fiscal 
        year'' and inserting ``for the 24-month period beginning with 
        the month in which the payments are made''.

SEC. 12. INFORMATION ON ADOPTION TAX CREDIT.

    Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as 
amended by sections 2(a), 4, 9(b), and 10 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (30);
            (2) by striking the period at the end of paragraph (31) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(32) provides that the State will inform any individual 
        who is adopting, or whom the State is made aware is considering 
        adopting, a child who is in foster care under the 
        responsibility of the State of the potential eligibility of the 
        individual for a Federal tax credit under section 23 of the 
        Internal Revenue Code.''.

SEC. 13. MODIFICATION OF FOSTER CARE MATCHING RATE FOR THE DISTRICT OF 
              COLUMBIA TO CONFORM WITH MEDICAID MATCHING RATE.

    Section 474(a) of the Social Security Act (42 U.S.C. 674(a)) is 
amended in each of paragraphs (1) and (2) by striking ``(as defined in 
section 1905(b) of this Act)'' and inserting ``(which shall be as 
defined in section 1905(b), in the case of a State other than the 
District of Columbia, or 70 percent, in the case of the District of 
Columbia)''.

SEC. 14. COLLECTION OF UNEMPLOYMENT COMPENSATION DEBTS RESULTING FROM 
              FRAUD.

    (a) In General.--Section 6402 of the Internal Revenue Code 
(relating to authority to make credits or refunds) is amended by 
redesignating subsections (f) through (k) as subsections (g) through 
(l), respectively, and by inserting after subsection (e) the following 
new subsection:
    ``(f) Collection of Unemployment Compensation Debts Resulting From 
Fraud.--
            ``(1) In general.--Upon receiving notice from any State 
        that a named person owes a covered unemployment compensation 
        debt to such State, the Secretary shall, under such conditions 
        as may be prescribed by the Secretary--
                    ``(A) reduce the amount of any overpayment payable 
                to such person by the amount of such covered 
                unemployment compensation debt;
                    ``(B) pay the amount by which such overpayment is 
                reduced under subparagraph (A) to such State and notify 
                such State of such person's name, taxpayer 
                identification number, address, and the amount 
                collected; and
                    ``(C) notify the person making such overpayment 
                that the overpayment has been reduced by an amount 
                necessary to satisfy a covered unemployment 
                compensation debt.
        If an offset is made pursuant to a joint return, the notice 
        under subparagraph (B) shall include the names, taxpayer 
        identification numbers, and addresses of each person filing 
        such return and the notice under subparagraph (C) shall include 
        information related to the rights of a spouse of a person 
        subject to such an offset.
            ``(2) Priorities for offset.--Any overpayment by a person 
        shall be reduced pursuant to this subsection--
                    ``(A) after such overpayment is reduced pursuant 
                to--
                            ``(i) subsection (a) with respect to any 
                        liability for any internal revenue tax on the 
                        part of the person who made the overpayment;
                            ``(ii) subsection (c) with respect to past-
                        due support; and
                            ``(iii) subsection (d) with respect to any 
                        past-due, legally enforceable debt owed to a 
                        Federal agency; and
                    ``(B) before such overpayment is credited to the 
                future liability for any Federal internal revenue tax 
                of such person pursuant to subsection (b).
        If the Secretary receives notice from a State or States of more 
        than one debt subject to paragraph (1) or subsection (e) that 
        is owed by a person to such State or States, any overpayment by 
        such person shall be applied against such debts in the order in 
        which such debts accrued.
            ``(3) Notice; consideration of evidence.--No State may take 
        action under this subsection until such State--
                    ``(A) notifies the person owing the covered 
                unemployment compensation debt that the State proposes 
                to take action pursuant to this section;
                    ``(B) provides such person at least 60 days to 
                present evidence that all or part of such liability is 
                not legally enforceable or due to fraud;
                    ``(C) considers any evidence presented by such 
                person and determines that an amount of such debt is 
                legally enforceable and due to fraud; and
                    ``(D) satisfies such other conditions as the 
                Secretary may prescribe to ensure that the 
                determination made under subparagraph (C) is valid and 
                that the State has made reasonable efforts to obtain 
                payment of such covered unemployment compensation debt.
            ``(4) Covered unemployment compensation debt.--For purposes 
        of this subsection, the term `covered unemployment compensation 
        debt' means--
                    ``(A) a past-due debt for erroneous payment of 
                unemployment compensation due to fraud which has become 
                final under the law of a State certified by the 
                Secretary of Labor pursuant to section 3304 and which 
                remains uncollected;
                    ``(B) contributions due to the unemployment fund of 
                a State for which the State has determined the person 
                to be liable due to fraud; and
                    ``(C) any penalties and interest assessed on such 
                debt.
            ``(5) Regulations.--
                    ``(A) In general.--The Secretary may issue 
                regulations prescribing the time and manner in which 
                States must submit notices of covered unemployment 
                compensation debt and the necessary information that 
                must be contained in or accompany such notices. The 
                regulations may specify the minimum amount of debt to 
                which the reduction procedure established by paragraph 
                (1) may be applied.
                    ``(B) Fee payable to secretary.--The regulations 
                may require States to pay a fee to the Secretary, which 
                may be deducted from amounts collected, to reimburse 
                the Secretary for the cost of applying such procedure. 
                Any fee paid to the Secretary pursuant to the preceding 
                sentence shall be used to reimburse appropriations 
                which bore all or part of the cost of applying such 
                procedure.
                    ``(C) Submission of notices through secretary of 
                labor.--The regulations may include a requirement that 
                States submit notices of covered unemployment 
                compensation debt to the Secretary via the Secretary of 
                Labor in accordance with procedures established by the 
                Secretary of Labor. Such procedures may require States 
                to pay a fee to the Secretary of Labor to reimburse the 
                Secretary of Labor for the costs of applying this 
                subsection. Any such fee shall be established in 
                consultation with the Secretary of the Treasury. Any 
                fee paid to the Secretary of Labor may be deducted from 
                amounts collected and shall be used to reimburse the 
                appropriation account which bore all or part of the 
                cost of applying this subsection.
            ``(6) Erroneous payment to state.--Any State receiving 
        notice from the Secretary that an erroneous payment has been 
        made to such State under paragraph (1) shall pay promptly to 
        the Secretary, in accordance with such regulations as the 
        Secretary may prescribe, an amount equal to the amount of such 
        erroneous payment (without regard to whether any other amounts 
        payable to such State under such paragraph have been paid to 
        such State).''.
    (b) Disclosure of Certain Information to States Requesting Refund 
Offsets for Legally Enforceable State Unemployment Compensation Debt 
Resulting From Fraud.--
            (1) General rule.--Paragraph (3) of section 6103(a) of such 
        Code is amended by inserting ``(10),'' after ``(6),''.
            (2) Disclosure to department of labor and its agent.--
        Paragraph (10) of section 6103(l) of such Code is amended--
                    (A) by striking ``(c), (d), or (e)'' each place it 
                appears in the heading and text and inserting ``(c), 
                (d), (e), or (f)'',
                    (B) in subparagraph (A) by inserting ``, to 
                officers and employees of the Department of Labor and 
                its agent for purposes of facilitating the exchange of 
                data in connection with a request made under subsection 
                (f)(5) of section 6402,'' after ``section 6402'', and
                    (C) in subparagraph (B) by inserting ``, and any 
                agents of the Department of Labor,'' after ``agency'' 
                the first place it appears.
            (3) Safeguards.--Paragraph (4) of section 6103(p) of such 
        Code is amended--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``(l)(16),'' and inserting ``(l)(10), (16),'';
                    (B) in subparagraph (F)(i), by striking 
                ``(l)(16),'' and inserting ``(l)(10), (16),''; and
                    (C) in the matter following subparagraph (F)(iii)--
                            (i) in each of the first two places it 
                        appears, by striking ``(l)(16),'' and inserting 
                        ``(l)(10), (16),'';
                            (ii) by inserting ``(10),'' after 
                        ``paragraph (6)(A),''; and
                            (iii) in each of the last two places it 
                        appears, by striking ``(l)(16)'' and inserting 
                        ``(l)(10) or (16)''.
    (c) Expenditures From State Fund.--Section 3304(a)(4) of such Code 
is amended--
            (1) in subparagraph (E), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (F), by inserting ``and'' after the 
        semicolon; and
            (3) by adding at the end the following new subparagraph:
                    ``(G) with respect to amounts of covered 
                unemployment compensation debt (as defined in section 
                6402(f)(4)) collected under section 6402(f)--
                            ``(i) amounts may be deducted to pay any 
                        fees authorized under such section; and
                            ``(ii) the penalties and interest described 
                        in section 6402(f)(4)(B) may be transferred to 
                        the appropriate State fund into which the State 
                        would have deposited such amounts had the 
                        person owing the debt paid such amounts 
                        directly to the State;''.
    (d) Conforming Amendments.--
            (1) Subsection (a) of section 6402 of such Code is amended 
        by striking ``(c), (d), and (e),'' and inserting ``(c), (d), 
        (e), and (f)''.
            (2) Paragraph (2) of section 6402(d) of such Code is 
        amended by striking ``and before such overpayment is reduced 
        pursuant to subsection (e)'' and inserting ``and before such 
        overpayment is reduced pursuant to subsections (e) and (f)''.
            (3) Paragraph (3) of section 6402(e) of such Code is 
        amended in the last sentence by inserting ``or subsection (f)'' 
        after ``paragraph (1)''.
            (4) Subsection (g) of section 6402 of such Code, as 
        redesignated by subsection (a), is amended by striking ``(c), 
        (d), or (e)'' and inserting ``(c), (d), (e), or (f)''.
            (5) Subsection (i) of section 6402 of such Code, as 
        redesignated by subsection (a), is amended by striking 
        ``subsection (c) or (e)'' and inserting ``subsection (c), (e), 
        or (f)''.
    (e) Effective Date.--The amendments made by this section shall 
apply to refunds payable under section 6402 of the Internal Revenue 
Code of 1986 on or after the date of enactment of this Act.

SEC. 15. INVESTMENT OF OPERATING CASH.

    Section 323 of title 31, United States Code, is amended to read as 
follows:
``Sec. 323. Investment of operating cash
    ``(a) To manage United States cash, the Secretary of the Treasury 
may invest any part of the operating cash of the Treasury for not more 
than 90 days. The Secretary may invest the operating cash of the 
Treasury in--
            ``(1) obligations of depositories maintaining Treasury tax 
        and loan accounts secured by pledged collateral acceptable to 
        the Secretary;
            ``(2) obligations of the United States Government; and
            ``(3) repurchase agreements with parties acceptable to the 
        Secretary.
    ``(b) Subsection (a) of this section does not require the Secretary 
to invest a cash balance held in a particular account.
    ``(c) The Secretary shall consider the prevailing market in 
prescribing rates of interest for investments under subsection (a)(1) 
of this section.
    ``(d)(1) The Secretary of the Treasury shall submit each fiscal 
year to the appropriate committees a report detailing the investment of 
operating cash under subsection (a) for the preceding fiscal year. The 
report shall describe the Secretary's consideration of risks associated 
with investments and the actions taken to manage such risks.
    ``(2) For purposes of paragraph (1), the term `appropriate 
committees' means the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate.''.

SEC. 16. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, each 
amendment made by this Act to part B or E of title IV of the Social 
Security Act shall take effect on the date of the enactment of this 
Act, and shall apply to payments under the part amended for quarters 
beginning on or after the effective date of the amendment.
    (b) Delay Permitted if State Legislation Required.--In the case of 
a State plan approved under part B or E of title IV of the Social 
Security Act which the Secretary of Health and Human Services 
determines requires State legislation (other than legislation 
appropriating funds) in order for the plan to meet the additional 
requirements imposed by this Act, the State plan shall not be regarded 
as failing to comply with the requirements of such part solely on the 
basis of the failure of the plan to meet such additional requirements 
before the 1st day of the 1st calendar quarter beginning after the 
close of the 1st regular session of the State legislature that ends 
after the 1-year period beginning with the date of the enactment of 
this Act. For purposes of the preceding sentence, in the case of a 
State that has a 2-year legislative session, each year of the session 
is deemed to be a separate regular session of the State legislature.

SEC. 17. NO FEDERAL FUNDING TO UNLAWFULLY PRESENT INDIVIDUALS.

    Nothing in this Act shall be construed to alter prohibitions on 
Federal payments to individuals who are unlawfully present in the 
United States.
                                 <all>