[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3038 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 3038

 To amend part E of title IV of the Social Security Act to extend the 
    adoption incentives program, to authorize States to establish a 
relative guardianship program, to promote the adoption of children with 
                 special needs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 20, 2008

 Mr. Grassley introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend part E of title IV of the Social Security Act to extend the 
    adoption incentives program, to authorize States to establish a 
relative guardianship program, to promote the adoption of children with 
                 special needs, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Improved Adoption 
Incentives and Relative Guardianship Support Act of 2008''.
    (b) Table of Contents.--Table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
       TITLE I--EXTENSION AND IMPROVEMENT OF ADOPTION INCENTIVES

Sec. 101. Extension of adoption incentives program.
Sec. 102. Promotion of adoption of children with special needs.
              TITLE II--SUPPORT FOR RELATIVE GUARDIANSHIPS

Sec. 201. Relative guardianship assistance payments for children.
                        TITLE III--MISCELLANEOUS

Sec. 301. Authority for comparisons and disclosures of information in 
                            the Federal Parent Locator Service for 
                            child welfare, foster care, and adoption 
                            assistance program purposes.

       TITLE I--EXTENSION AND IMPROVEMENT OF ADOPTION INCENTIVES

SEC. 101. EXTENSION OF 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) Additional Incentive Payment for Exceeding the Highest Ever 
Foster Child Adoption Rate.--
            (1) In general.--Section 473A(d) of such Act (42 U.S.C. 
        673b(b)(1)) is amended--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``paragraph (2)'' and 
                inserting ``paragraphs (2) and (3)'';
                    (B) in paragraph (2), by striking ``this section'' 
                each place it appears and inserting ``paragraph (1)''; 
                and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) Increased incentive payment for exceeding the highest 
        ever foster child adoption rate.--
                    ``(A) In general.--If--
                            ``(i) for fiscal year 2009 or any fiscal 
                        year thereafter the total amount of adoption 
                        incentive payments payable under paragraph (1) 
                        are less than the amount appropriated under 
                        subsection (h) for the fiscal year; and
                            ``(ii) a State's foster child adoption rate 
                        for that fiscal year exceeds the highest ever 
                        foster child adoption rate determined for the 
                        State,
                then the adoption incentive payment otherwise 
                determined under paragraph (1) for the State shall be 
                increased, subject to subparagraph (C), by the amount 
                determined for the State under subparagraph (B).
                    ``(B) Amount of increase.--For purposes of 
                subparagraph (A), the amount determined under this 
                subparagraph with respect to a State and a fiscal year 
                is the amount equal to the product of--
                            ``(i) $1,000; and
                            ``(ii) the excess of--
                                    ``(I) the number of foster child 
                                adoptions in the State in the fiscal 
                                year; over
                                    ``(II) the product (rounded to the 
                                nearest whole number) of--
                                            ``(aa) the highest ever 
                                        foster child adoption rate 
                                        determined for the State; and
                                            ``(bb) the number of 
                                        children in foster care under 
                                        the supervision of the State on 
                                        the last day of the preceding 
                                        fiscal year.
                    ``(C) Pro rata adjustment if insufficient funds 
                available.--For any fiscal year, if the total amount of 
                increases in adoption incentive payments otherwise 
                payable under this paragraph for a fiscal year exceeds 
                the amount available for such increases for the fiscal 
                year, the amount of the increase payable to each State 
                under this paragraph for the fiscal year shall be--
                            ``(i) the amount of the increase that would 
                        otherwise be payable to the State under this 
                        paragraph for the fiscal year; multiplied by
                            ``(ii) the percentage represented by the 
                        amount so available for the fiscal year, 
                        divided by the total amount of increases 
                        otherwise payable under this paragraph for the 
                        fiscal year.''.
            (2) Definitions.--Subsection (g) of section 473A of such 
        Act (42 U.S.C. 673b) is amended by adding at the end the 
        following:
            ``(7) Highest ever foster child adoption rate.--The term 
        `highest ever foster child adoption rate' means, with respect 
        to any fiscal year, the highest foster child adoption rate 
        determined for any fiscal year in the period that begins with 
        fiscal year 1998 and ends with the preceding fiscal year.
            ``(8) Foster child adoption rate.--The term `foster child 
        adoption rate' means, with respect to a State and a fiscal 
        year, the percentage determined by dividing--
                    ``(A) the number of foster child adoptions 
                finalized in the State during the fiscal year; by
                    ``(B) the number of children in foster care under 
                the supervision of the State on the last day of the 
                preceding fiscal year.''.
            (3) Conforming amendments.--
                    (A) State eligibility.--Section 473A(b)(2) of such 
                Act (42 U.S.C. 673b(b)(2)) is amended--
                            (i) in subparagraph (A), by striking ``or'' 
                        at the end;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
            ``(C) the State's foster child adoption rate for the fiscal 
        year exceeds the highest ever foster child adoption rate 
        determined for the State;''.
                    (B) Data.--Section 473A(c)(2) of such Act (42 
                U.S.C. 673b(c)(2)), as amended by subsection (a)(3), is 
                amended by inserting ``, and the foster child adoption 
                rate for the State for the fiscal year,'' after 
                ``during a fiscal year,''.
    (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 further amended--
            (1) in subparagraph (C), as redesignated by subsection (b), 
        by striking ``$2,000'' and inserting ``$3,000''; and
            (2) in subparagraph (D), as so redesignated, by striking 
        ``$4,000'' and inserting ``$8,000''.
    (d) 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.''.
    (e) 24-Month Availability of Payments to States.--Section 473A(e) 
of such Act (42 U.S.C. 673b(e)) is amended--
            (1) in the subsection heading, by striking ``2-Year'' and 
        inserting ``24-Month''; and
            (2) by striking ``through the end of the succeeding fiscal 
        year'' and inserting ``for a period of 24 months beginning with 
        the month in which the payments are made''.

SEC. 102. PROMOTION OF ADOPTION OF CHILDREN WITH SPECIAL NEEDS.

    (a) Elimination of Eligibility Based on AFDC and SSI Income 
Standards.--Section 473(a)(2) of the Social Security Act (42 U.S.C. 
673(a)(2)) is amended--
            (1) in subparagraph (A), by striking clauses (i) and (ii) 
        and inserting the following:
            ``(i)(I) at the time of termination of parental rights was 
        in the care of a public or licensed private child placement 
        agency or Indian tribal organization pursuant to a voluntary 
        placement agreement, relinquishment, or involuntary removal of 
        the child from the home, and the State has determined, pursuant 
        to criteria established by the State (which may, but need not, 
        include a judicial determination), that continuation in the 
        home would be contrary to the safety or welfare of such child;
            ``(II) meets all medical or disability requirements of 
        title XVI with respect to eligibility for supplemental security 
        income benefits; or
            ``(III) was residing in a foster family home or child care 
        institution with the child's minor parent, provided that the 
        child's minor parent was in such foster family home or child 
        care institution pursuant to a voluntary placement agreement, 
        relinquishment, or involuntary removal of the child from the 
        home, and the State has determined, pursuant to criteria 
        established by the State (which may, but need not, include 
        judicial determination), that continuation in the home would be 
        contrary to the safety or welfare of such child; and
            ``(ii) has been determined by the State, pursuant to 
        subsection (c), to be a child with special needs, which needs 
        shall be considered by the State, together with the 
        circumstances of the adopting parents, in determining the 
        amount of any payments to be made to the adopting parents.''; 
        and
            (2) by striking subparagraph (C) and inserting the 
        following:
    ``(C) A child who meets the requirements of subparagraph (A), who 
was determined eligible for adoption assistance payments under this 
part with respect to a prior adoption (or who would have been 
determined eligible for such payments had the Adoption and Safe 
Families Act of 1997 been in effect at the time that such determination 
would have been made), and who is available for adoption because the 
prior adoption has been dissolved and the parental rights of the 
adoptive parents have been terminated or because the child's adoptive 
parents have died, shall be treated as meeting the requirements of this 
paragraph for purposes of paragraph (1)(B)(ii).''.
    (b) Exception.--Section 473(a) of the Social Security Act (42 
U.S.C. 673(a)) is amended by adding at the end the following:
    ``(7)(A) Notwithstanding any other provision of this subsection, no 
payment may be made to parents with respect to any child that--
            ``(i) would be considered a child with special needs under 
        subsection (c);
            ``(ii) is not a citizen or resident of the United States; 
        and
            ``(iii) was adopted outside of the United States or was 
        brought into the United States for the purpose of being 
        adopted.
    ``(B) Subparagraph (A) shall not be construed as prohibiting 
payments under this part for a child described in subparagraph (A) that 
is placed in foster care subsequent to the failure, as determined by 
the State, of the initial adoption of such child by the parents 
described in such subparagraph.''.
    (c) Requirement for Use of State Savings.--Section 473(a) of the 
Social Security Act (42 U.S.C. 673(a)), as amended by subsection (b), 
is amended by adding at the end the following:
    ``(8) A State shall spend an amount equal to the amount of savings 
(if any) in State expenditures under this part resulting from the 
application of paragraph (2) on and after the effective date of the 
amendments to such paragraph made by section 102(a) of the Improved 
Adoption Incentives and Relative Guardianship Support Act of 2008 to 
provide to children or families any service (including post-adoption 
services) that may be provided under this part or part B.''.
    (d) Determination of a Child With Special Needs.--Section 473(c) of 
the Social Security Act (42 U.S.C. 673(c)) is amended to read as 
follows:
    ``(c) For purposes of this section, a child shall not be considered 
a child with special needs unless--
            ``(1) the State has determined, pursuant to a criteria 
        established by the State (which may or may not include a 
        judicial determination), that the child cannot or should not be 
        returned to the home of his parents; and
            ``(2) the State has determined--
                    ``(A) that there exists with respect to the child a 
                specific factor or condition (such as 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) 
                because of which it is reasonable to conclude that the 
                child cannot be placed with adoptive parents without 
                providing adoption assistance under this section and 
                medical assistance under title XIX; and
                    ``(B) that except where it would be against the 
                best interests of the child because of such factors as 
                the existence of significant emotional ties with 
                prospective adoptive parents while in the care of such 
                parents as a foster child, a reasonable, but 
                unsuccessful, effort has been made to place the child 
                with appropriate adoptive parents without providing 
                adoption assistance under this section or medical 
                assistance under title XIX.
        A child who meets all medical or disability requirements of 
        title XVI with respect to eligibility for supplemental security 
        income benefits shall be deemed to be a child for whom the 
        determination required by subparagraph (A) of paragraph (2) has 
        been made.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2008, and shall apply to adoption assistance 
agreements executed on or after that date.

              TITLE II--SUPPORT FOR RELATIVE GUARDIANSHIPS

SEC. 201. RELATIVE GUARDIANSHIP ASSISTANCE PAYMENTS FOR CHILDREN.

    (a) Option for States To Enhance and Subsidize a Relative 
Guardianship Program.--
            (1) State plan amendment.--Section 471(a)(1) of the Social 
        Security Act (42 U.S.C. 671(a)(1)) is amended--
                    (A) by inserting ``(A)'' after ``provides'';
                    (B) by adding ``and'' after the semicolon; and
                    (C) by adding at the end the following:
            ``(B) at the option of the State, provides for relative 
        guardianship assistance payments in accordance with subsection 
        (d) of section 473;''.
    (b) Requirements.--Section 473 of such Act (42 U.S.C. 673) is 
amended by adding at the end the following:
    ``(d) Relative Guardianship Assistance Payments for Children.--
            ``(1) Relative guardianship assistance agreement.--
                    ``(A) In general.--In order to receive payments 
                under section 474(a)(5), a State shall--
                            ``(i) negotiate and enter into a written, 
                        binding relative guardianship assistance 
                        agreement with the relative guardian of a child 
                        who meets the requirements of paragraph (3)(B);
                            ``(ii) provide the relative guardian with a 
                        copy of the agreement; and
                            ``(iii) certify that any child on whose 
                        behalf relative 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 relative 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, provided the agency and relative 
                        guardian agree on the additional services as 
                        specified in the agreement; and
                            ``(iv) that the State will pay up to $2,000 
                        of nonrecurring expenses associated with 
                        obtaining legal guardianship of the child.
                    ``(C) Interstate application.--The agreement shall 
                provide that the agreement shall remain in effect 
                without regard to the State residency of the relative 
                guardian.
                    ``(D) Federal reimbursement of nonrecurring 
                expenses.--A State's payment of nonrecurring 
                guardianship expenses under a relative guardianship 
                assistance agreement in accordance with subparagraph 
                (B)(iv) shall be treated as a direct expenditure made 
                for the proper and efficient administration of the 
                State plan for purposes of section 474(a)(3)(E).
            ``(2) Relative guardianship assistance payment.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), the relative guardianship assistance payment shall 
                be based on consideration of the circumstances of the 
                relative guardian and the needs of the child.
                    ``(B) Minimum and maximum payment.--A relative 
                guardianship assistance payment shall not be less than 
                the adoption assistance payment the State would have 
                made on behalf of the child under an adoption 
                assistance agreement entered into under subsection (a) 
                and shall not exceed the foster care maintenance 
                payment which would have been paid if the child had 
                remained in a foster family home.
                    ``(C) Periodic adjustments.--A relative 
                guardianship assistance payment may be readjusted 
                periodically, with the concurrence of the relative 
                guardian (which may be specified in the relative 
                guardianship assistance agreement), depending upon 
                changes in the circumstances of the relative guardian 
                and the needs of the child.
                    ``(D) Limitation.--No relative guardianship 
                assistance payment may be made to a relative guardian 
                for any child who has attained 18 years of age.
            ``(3) Child's eligibility for a relative guardianship 
        assistance payment.--
                    ``(A) In general.--A child is eligible for a 
                relative guardianship assistance payment under this 
                subsection if the State agency determines the 
                following:
                            ``(i) The child--
                                    ``(I) has been 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; 
                                and
                                    ``(II) in the month prior to the 
                                establishment of the legal 
                                guardianship, is eligible for foster 
                                care maintenance payments under section 
                                472.
                            ``(ii) Being returned home or adopted are 
                        not appropriate permanency options for the 
                        child.
                            ``(iii) The child demonstrates a strong 
                        attachment to the relative guardian and the 
                        relative guardian has a strong commitment to 
                        caring permanently for the child.
                            ``(iv) The relative guardian satisfies the 
                        requirements of subparagraph (B).
                            ``(v) With respect to a child who has 
                        attained 14 years of age, the child has been 
                        consulted regarding the relative guardianship 
                        arrangement.
                    ``(B) Requirements for relative guardians.--A 
                relative guardian satisfies the requirements of this 
                subparagraph if the relative--
                            ``(i) is the grandparent or other relative 
                        of a child on whose behalf relative 
                        guardianship assistance payments are to be 
                        made;
                            ``(ii) has satisfied the background checks 
                        required under section 471(a)(20);
                            ``(iii) has met the State's requirements 
                        established under section 471(a)(10) to be a 
                        foster family home; and
                            ``(iv) assumes legal guardianship of such 
                        child and commits to caring for the child on a 
                        permanent basis.
                    ``(C) 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 shall be placed in the same relative 
                        guardianship arrangement unless it can be 
                        demonstrated that it is inappropriate to do so; 
                        and
                            ``(ii) relative guardianship assistance 
                        payments may be paid for the child and each 
                        sibling so placed.''.
    (c) Payments to States.--
            (1) In general.--Section 474(a) of such Act (42 U.S.C. 
        674(a)) is amended--
                    (A) in paragraph (3)(B), by striking ``foster or 
                adoptive parents and the members of the staff of State-
                licensed or State-approved child care institutions 
                providing care to foster and adopted children receiving 
                assistance under this part, in ways that increase the 
                ability of such current or prospective parents, staff 
                members, and institutions to provide support and 
                assistance to foster and adopted children,'' and 
                inserting ``foster parents, adoptive parents, or 
                relative guardians and the members of the staff of 
                State-licensed or State-approved child care 
                institutions providing care to foster children, 
                adoptive children, or children living with a relative 
                guardian, who are receiving assistance under this part, 
                in ways that increase the ability of such current or 
                prospective parents, relative guardians, staff members, 
                and institutions to provide support and assistance to 
                foster children, adoptive children, or children living 
                with a relative guardian,'';
                    (B) in paragraph (4)(B), by striking the period at 
                the end and inserting ``; plus''; and
                    (C) by adding at the end the following:
            ``(5) an amount equal to the Federal medical assistance 
        percentage (as defined in section 1905(b)) of the total amount 
        expended during such quarter as relative guardianship 
        assistance payments under section 473(d) pursuant to relative 
        guardianship assistance agreements.''.
            (2) Incentive payments for relative guardianship 
        placement.--
                    (A) In general.--Section 473A of the Social 
                Security Act (42 U.S.C. 673b) is amended by adding at 
                the end the following:
    ``(j) Incentive Payments for Relative Guardianship Placements.--
            ``(1) Use of unawarded adoption incentive funds to make 
        relative guardianship incentive payments.--If in any fiscal 
        year the total amount of adoption incentive payments payable 
        under subsection (d) are less than the amount appropriated 
        under subsection (h) for the fiscal year, States that have 
        established a relative guardianship assistance program under 
        section 471(a)(1)(B) shall be awarded, in addition to any 
        adoption incentive payments made to such States under 
        subsection (d), relative guardianship incentive payments from 
        the portion of such amount that is in excess of the total 
        amount of adoption incentive payments to be made under such 
        subsection for such fiscal year.
            ``(2) Payment amount.--Subject to paragraph (3), the 
        relative guardianship incentive payment payable to a State for 
        a fiscal year under this subsection shall be equal to--
                    ``(A) in the case of the first fiscal year in which 
                the State establishes a relative guardianship 
                assistance program under section 471(a)(1)(B), the 
                product of $1,000 and the number of relative 
                guardianship assistance agreements entered into under 
                section 473(d) in the State during that fiscal year; 
                and
                    ``(B) in the case of any succeeding fiscal year, 
                the product of $1,000 and the amount (if any) by which 
                the number of relative guardianship assistance 
                agreements entered into under section 473(d) in the 
                State for the fiscal year exceed the base number of 
                relative guardianship assistance agreements in the 
                State for the fiscal year.
            ``(3) Pro rata adjustment if insufficient funds 
        available.--For any fiscal year, if the total amount of 
        relative guardianship incentive payments otherwise payable 
        under this subsection for a fiscal year exceeds the amount 
        available for such payments for the fiscal year, the amount of 
        the relative guardianship incentive payment payable to each 
        State under this subsection for the fiscal year shall be--
                    ``(A) the amount of the relative guardianship 
                incentive payment that would otherwise be payable to 
                the State under this subsection for the fiscal year; 
                multiplied by
                    ``(B) the percentage represented by the amount so 
                available for the fiscal year, divided by the total 
                amount of relative guardianship incentive payments 
                otherwise payable under this section for the fiscal 
                year.''.
                    (B) Definition of base number of relative 
                guardianship assistance agreements.--Subsection (g) of 
                section 473A of such Act (42 U.S.C. 673b), as amended 
                by section 101(b)(2), is amended by adding at the end 
                the following:
            ``(9) Base number of relative guardianship assistance 
        agreements.--The term `base number of relative guardianship 
        assistance agreements' means, with respect to a fiscal year, 
        the number of relative guardianship assistance agreements 
        entered into under section 473(d) in the State in the fiscal 
        year for which the number is the greatest in the period that 
        begins with the first fiscal year in which the State 
        establishes a relative guardianship assistance program under 
        section 471(a)(1)(B) and ends with the preceding fiscal 
        year.''.
                    (C) Conforming amendment.--Subsection (f) of 
                section 473A of such Act (42 U.S.C. 673b) is amended by 
                inserting ``and relative navigator and support 
                services'' after ``post-adoption services''.
    (d) Maintaining Eligibility for Adoption Assistance Program.--
Section 473(a) of the Social Security Act (42 U.S.C. 673(a)), as 
amended by subsections (b) and (c) of section 102, is amended by adding 
at the end the following:
    ``(9) A child on whose behalf relative guardianship assistance 
payments have been made under section 473(d) and who pursuant to 
subsection (c) has been determined to be a child with special needs, 
shall be eligible for adoption assistance as if no relative 
guardianship agreement or payments had been made. The State shall make 
payments of nonrecurring adoption expenses under this section to the 
adoptive parents of such a child.''.
    (e) Eligibility for Independent Living Services and Education and 
Training Vouchers for Children Who Exit Foster Care for Relative 
Guardianship or Adoption After Age 16.--
            (1) Independent living services.--Section 477(a) of such 
        Act (42 U.S.C. 677(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (5);
                    (B) by striking the period at the end of paragraph 
                (6) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(7) to provide the services referred to in this 
        subsection to children who, after attaining 16 years of age, 
        have left foster care for relative guardianship or adoption.''.
            (2) Education and training vouchers.--Section 477(i)(2) of 
        such Act (42 U.S.C. 677(i)(2)) is amended by striking ``from 
        foster care after attaining age 16'' and inserting ``or 
        entering relative guardianship from foster care after attaining 
        16 years of age''.
    (f) Notice Requirements.--
            (1) IV-E state plan requirements.--
                    (A) Notice to relatives.--Section 471(a)(19) of 
                such Act (42 U.S.C. 671(a)(19)) is amended--
                            (i) by striking ``that the State'' and 
                        inserting ``that--
                    ``(A) the State''; and
                            (ii) by adding at the end the following:
                    ``(B) within 60 days of the removal of the child 
                from the custody of the child's parent or parents, the 
                State shall exercise due diligence to identify and 
                provide notice to all adult grandparents and other 
                adult relatives of the child (including any other adult 
                relatives suggested by the parents), subject to 
                exceptions due to family or domestic violence, that--
                            ``(i) specifies that the child has been or 
                        is being removed from the custody of the 
                        child's parent or parents;
                            ``(ii) explains the options the relative 
                        has under Federal, State, and local law to 
                        participate in the child's care and placement, 
                        including any options that may be lost by 
                        failing to respond to the notice;
                            ``(iii) describes the requirements under 
                        section 471(a)(10) to become a foster family 
                        home and the additional services and supports 
                        that are available for children placed in such 
                        a home; and
                            ``(iv) if the State has elected the option 
                        to make relative guardianship assistance 
                        payments under paragraph (1)(B), describes how 
                        the relative may enter into an agreement with 
                        the State under section 473(d) to receive such 
                        payments; and
                    ``(C) with respect to any minor child (excluding 
                minor heads of households and their spouses) receiving 
                assistance under the State program funded under part A 
                (or under a State program funded with qualified State 
                expenditures (as defined in section 409(a)(7)(B)(i))) 
                who is in the care of a nonparent caretaker relative as 
                a result of interaction with the State agency 
                responsible for administering the program authorized 
                under this part, and who does not have a parent in the 
                home, the State shall provide the nonparent caretaker 
                relative with notice that--
                            ``(i) explains the options the relative has 
                        under Federal, State, and local law to 
                        participate in the child's care and placement, 
                        including any options that may be lost by 
                        failing to respond to the notice;
                            ``(ii) describes the requirements under 
                        section 471(a)(10) to become a foster family 
                        home and the additional services and supports 
                        that are available for children placed in such 
                        a home; and
                            ``(iii) if the State has elected the option 
                        to make relative guardianship assistance 
                        payments under paragraph (1)(B), describes how 
                        the relative may enter into an agreement under 
                        section 473(d) with the State to receive such 
                        payments;''.
                    (B) Information on adoption tax credit.--Section 
                471(a) of such Act (42 U.S.C. 671(a)) is amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (26);
                            (ii) by striking the period at the end of 
                        paragraph (27) and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(28) 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) without the need to document any 
        adoption-related expenses.''.
            (2) TANF penalty for failure to provide notice.--Section 
        409(a) of such Act (42 U.S.C. 609(a)) is amended by adding at 
        the end the following:
            ``(16) Penalty for noncompliance with notice requirements 
        for relatives under part e.--
                    ``(A) In general.--If the Secretary determines that 
                a State to which a grant is made under section 403 in a 
                fiscal year has not exercised the due diligence 
                required under section 471(a)(19)(C) during the fiscal 
                year, the Secretary shall reduce the grant payable to 
                the State under section 403(a)(1) for the immediately 
                succeeding fiscal year by an amount equal to not less 
                than 1 percent and not more than 5 percent of the State 
                family assistance grant.
                    ``(B) Penalty based on severity of failure.--The 
                Secretary shall impose reductions under subparagraph 
                (A) with respect to a fiscal year based on the degree 
                of noncompliance.''.
    (g) Case Plan Requirements.--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 relative 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 why a permanent 
                        placement with a fit and willing relative 
                        through a relative guardianship assistance 
                        arrangement is in the child's best interests;
                            ``(iii) the ways in which the child meets 
                        the eligibility requirements for a relative 
                        guardianship assistance payment;
                            ``(iv) the efforts the agency has made to 
                        discuss adoption by the child's relative 
                        guardian who is to receive such payments as a 
                        more permanent alternative to legal 
                        guardianship and, in the case of such a 
                        relative guardian who has chosen not to pursue 
                        adoption, documentation of the reasons 
                        therefor; and
                            ``(v) the efforts made by the State agency 
                        to secure the consent of the child's parent or 
                        parents to the relative guardianship assistance 
                        arrangement, or the reasons why the efforts 
                        were not made.''.
    (h) Requirement To Conduct Criminal Records and Child Abuse and 
Neglect Registry Checks.--Section 471(a)(20) of such Act (42 U.S.C. 
671(a)(20)) is amended--
            (1) in subparagraph (A), in the matter preceding clause (i) 
        by striking ``foster or adoptive parent before the foster or 
        adoptive parent may be finally approved for placement of a 
        child on whose behalf foster care maintenance payments or 
        adoption assistance payments'' and inserting ``foster parent, 
        adoptive parent, or relative guardian before the foster parent, 
        adoptive parent, or relative guardian may be finally approved 
        for placement of a child on whose behalf foster care 
        maintenance payments, adoption assistance payments, or relative 
        guardianship assistance payments''; and
            (2) in subparagraph (B)(i) (as redesignated by section 
        152(b)(2) of Public Law 109-248), by striking ``prospective 
        foster or adoptive parent and on any other adult living in the 
        home'' and all that follows through ``adoption assistance 
        payments'' and inserting ``prospective foster parent, adoptive 
        parent, or relative guardian and on any other adult living in 
        the home of such a prospective parent or relative guardian, and 
        request any other State in which any such prospective parent, 
        relative guardian, or other adult has resided in the preceding 
        5 years, to enable the State to check any child abuse and 
        neglect registry maintained by such other State for such 
        information, before the prospective foster parent, adoptive 
        parent, or relative may be finally approved for placement of a 
        child, regardless of whether foster care maintenance payments, 
        adoption assistance payments, or relative guardianship 
        assistance payments''.
    (i) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2008, and shall apply to relative guardianship 
agreements executed on or after that date.

                        TITLE III--MISCELLANEOUS

SEC. 301. AUTHORITY FOR COMPARISONS AND DISCLOSURES OF INFORMATION IN 
              THE FEDERAL PARENT LOCATOR SERVICE FOR CHILD WELFARE, 
              FOSTER CARE, AND ADOPTION ASSISTANCE PROGRAM PURPOSES.

    Section 453(j)(3) of such Act (42 U.S.C. 653(j)(3)) is amended, in 
the matter preceding subparagraph (A), by inserting ``, part B, part 
E,'' after ``this part''.
                                 <all>