[Congressional Record Volume 143, Number 160 (Thursday, November 13, 1997)]
[House]
[Pages H10776-H10790]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 ADOPTION AND SAFE FAMILIES ACT OF 1997

  Mr. SHAW. Mr. Speaker, I move to suspend the rules and agree to the 
resolution (H. Res. 327), providing for the consideration of the bill 
H.R. 867 and the Senate amendment thereto.
  The Clerk read as follows:

                              H. Res. 327

       Resolved, That, upon the adoption of this resolution, the 
     House shall be considered to have taken from the Speaker's 
     table the bill H.R. 867 and an amendment of the Senate 
     thereto and to have concurred in the amendment of the Senate 
     with an amendment as follows: in lieu of the matter proposed 
     to be inserted by the Senate, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Adoption 
     and Safe Families Act of 1997''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

TITLE I--REASONABLE EFFORTS AND SAFETY REQUIREMENTS FOR FOSTER CARE AND 
                          ADOPTION PLACEMENTS

Sec. 101. Clarification of the reasonable efforts requirement.
Sec. 102. Including safety in case plan and case review system 
              requirements.
Sec. 103. States required to initiate or join proceedings to terminate 
              parental rights for certain children in foster care.
Sec. 104. Notice of reviews and hearings; opportunity to be heard.
Sec. 105. Use of the Federal Parent Locator Service for child welfare 
              services.
Sec. 106. Criminal records checks for prospective foster and adoptive 
              parents.
Sec. 107. Documentation of efforts for adoption or location of a 
              permanent home.

   TITLE II--INCENTIVES FOR PROVIDING PERMANENT FAMILIES FOR CHILDREN

Sec. 201. Adoption incentive payments.
Sec. 202. Adoptions across State and county jurisdictions.
Sec. 203. Performance of States in protecting children.

             TITLE III--ADDITIONAL IMPROVEMENTS AND REFORMS

Sec. 301. Authority to approve more child protection demonstration 
              projects.
Sec. 302. Permanency hearings.
Sec. 303. Kinship care.
Sec. 304. Clarification of eligible population for independent living 
              services.
Sec. 305. Reauthorization and expansion of family preservation and 
              support services.
Sec. 306. Health insurance coverage for children with special needs.
Sec. 307. Continuation of eligibility for adoption assistance payments 
              on behalf of children with special needs whose initial 
              adoption has been dissolved.
Sec. 308. State standards to ensure quality services for children in 
              foster care.

                        TITLE IV--MISCELLANEOUS

Sec. 401. Preservation of reasonable parenting.
Sec. 402. Reporting requirements.
Sec. 403. Sense of Congress regarding standby guardianship.
Sec. 404. Temporary adjustment of Contingency Fund for State Welfare 
              Programs.

[[Page H10777]]

Sec. 405. Coordination of substance abuse and child protection 
              services.
Sec. 406. Purchase of American-made equipment and products.

                        TITLE V--EFFECTIVE DATE

Sec. 501. Effective date.
TITLE I--REASONABLE EFFORTS AND SAFETY REQUIREMENTS FOR FOSTER CARE AND 
                          ADOPTION PLACEMENTS

     SEC. 101. CLARIFICATION OF THE REASONABLE EFFORTS 
                   REQUIREMENT.

       (a) In General.--Section 471(a)(15) of the Social Security 
     Act (42 U.S.C. 671(a)(15)) is amended to read as follows:
       ``(15) provides that--
       ``(A) in determining reasonable efforts to be made with 
     respect to a child, as described in this paragraph, and in 
     making such reasonable efforts, the child's health and safety 
     shall be the paramount concern;
       ``(B) except as provided in subparagraph (D), reasonable 
     efforts shall be made to preserve and reunify families--
       ``(i) prior to the placement of a child in foster care, to 
     prevent or eliminate the need for removing the child from the 
     child's home; and
       ``(ii) to make it possible for a child to safely return to 
     the child's home;
       ``(C) if continuation of reasonable efforts of the type 
     described in subparagraph (B) is determined to be 
     inconsistent with the permanency plan for the child, 
     reasonable efforts shall be made to place the child in a 
     timely manner in accordance with the permanency plan, and to 
     complete whatever steps are necessary to finalize the 
     permanent placement of the child;
       ``(D) reasonable efforts of the type described in 
     subparagraph (B) shall not be required to be made with 
     respect to a parent of a child if a court of competent 
     jurisdiction has determined that--
       ``(i) the parent has subjected the child to aggravated 
     circumstances (as defined in State law, which definition may 
     include but need not be limited to abandonment, torture, 
     chronic abuse, and sexual abuse);
       ``(ii) the parent has--

       ``(I) committed murder (which would have been an offense 
     under section 1111(a) of title 18, United States Code, if the 
     offense had occurred in the special maritime or territorial 
     jurisdiction of the United States) of another child of the 
     parent;
       ``(II) committed voluntary manslaughter (which would have 
     been an offense under section 1112(a) of title 18, United 
     States Code, if the offense had occurred in the special 
     maritime or territorial jurisdiction of the United States) of 
     another child of the parent;
       ``(III) aided or abetted, attempted, conspired, or 
     solicited to commit such a murder or such a voluntary 
     manslaughter; or
       ``(IV) committed a felony assault that results in serious 
     bodily injury to the child or another child of the parent; or

       ``(iii) the parental rights of the parent to a sibling have 
     been terminated involuntarily;
       ``(E) if reasonable efforts of the type described in 
     subparagraph (B) are not made with respect to a child as a 
     result of a determination made by a court of competent 
     jurisdiction in accordance with subparagraph (D)--
       ``(i) a permanency hearing (as described in section 
     475(5)(C)) shall be held for the child within 30 days after 
     the determination; and
       ``(ii) reasonable efforts shall be made to place the child 
     in a timely manner in accordance with the permanency plan, 
     and to complete whatever steps are necessary to finalize the 
     permanent placement of the child; and
       ``(F) reasonable efforts to place a child for adoption or 
     with a legal guardian may be made concurrently with 
     reasonable efforts of the type described in subparagraph 
     (B);''.
       (b) Definition of Legal Guardianship.--Section 475 of such 
     Act (42 U.S.C. 675) is amended by adding at the end the 
     following:
       ``(7) The term `legal guardianship' means a judicially 
     created relationship between child and caretaker which is 
     intended to be permanent and self-sustaining as evidenced by 
     the transfer to the caretaker of the following parental 
     rights with respect to the child: protection, education, care 
     and control of the person, custody of the person, and 
     decisionmaking. The term `legal guardian' means the caretaker 
     in such a relationship.''.
       (c) Conforming Amendment.--Section 472(a)(1) of such Act 
     (42 U.S.C. 672(a)(1)) is amended by inserting ``for a child'' 
     before ``have been made''.
       (d) Rule of Construction.--Part E of title IV of such Act 
     (42 U.S.C. 670-679) is amended by inserting after section 477 
     the following:

     ``SEC. 478. RULE OF CONSTRUCTION.

       ``Nothing in this part shall be construed as precluding 
     State courts from exercising their discretion to protect the 
     health and safety of children in individual cases, including 
     cases other than those described in section 471(a)(15)(D).''.

     SEC. 102. INCLUDING SAFETY IN CASE PLAN AND CASE REVIEW 
                   SYSTEM REQUIREMENTS.

       Title IV of the Social Security Act (42 U.S.C. 601 et seq.) 
     is amended--
       (1) in section 422(b)(10)(B)--
       (A) in clause (iii)(I), by inserting ``safe and'' after 
     ``where''; and
       (B) in clause (iv), by inserting ``safely'' after 
     ``remain''; and
       (2) in section 475--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by inserting ``safety and'' after 
     ``discussion of the''; and
       (ii) in subparagraph (B)--

       (I) by inserting ``safe and'' after ``child receives''; and
       (II) by inserting ``safe'' after ``return of the child to 
     his own''; and

       (B) in paragraph (5)--
       (i) in subparagraph (A), in the matter preceding clause 
     (i), by inserting ``a safe setting that is'' after 
     ``placement in''; and
       (ii) in subparagraph (B)--

       (I) by inserting ``the safety of the child,'' after 
     ``determine''; and
       (II) by inserting ``and safely maintained in'' after 
     ``returned to''.

     SEC. 103. STATES REQUIRED TO INITIATE OR JOIN PROCEEDINGS TO 
                   TERMINATE PARENTAL RIGHTS FOR CERTAIN CHILDREN 
                   IN FOSTER CARE.

       (a) Requirement for Proceedings.--Section 475(5) of the 
     Social Security Act (42 U.S.C. 675(5)) is amended--
       (1) by striking ``and'' at the end of subparagraph (C);
       (2) by striking the period at the end of subparagraph (D) 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(E) in the case of a child who has been in foster care 
     under the responsibility of the State for 15 of the most 
     recent 22 months, or, if a court of competent jurisdiction 
     has determined a child to be an abandoned infant (as defined 
     under State law) or has made a determination that the parent 
     has committed murder of another child of the parent, 
     committed voluntary manslaughter of another child of the 
     parent, aided or abetted, attempted, conspired, or solicited 
     to commit such a murder or such a voluntary manslaughter, or 
     committed a felony assault that has resulted in serious 
     bodily injury to the child or to another child of the parent, 
     the State shall file a petition to terminate the parental 
     rights of the child's parents (or, if such a petition has 
     been filed by another party, seek to be joined as a party to 
     the petition), and, concurrently, to identify, recruit, 
     process, and approve a qualified family for an adoption, 
     unless--
       ``(i) at the option of the State, the child is being cared 
     for by a relative;
       ``(ii) a State agency has documented in the case plan 
     (which shall be available for court review) a compelling 
     reason for determining that filing such a petition would not 
     be in the best interests of the child; or
       ``(iii) the State has not provided to the family of the 
     child, consistent with the time period in the State case 
     plan, such services as the State deems necessary for the safe 
     return of the child to the child's home, if reasonable 
     efforts of the type described in section 471(a)(15)(B)(ii) 
     are required to be made with respect to the child.''.
       (b) Determination of Beginning of Foster Care.--Section 
     475(5) of the Social Security Act (42 U.S.C. 675(5)), as 
     amended by subsection (a), is amended--
       (1) by striking ``and'' at the end of subparagraph (D);
       (2) by striking the period at the end of subparagraph (E) 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(F) a child shall be considered to have entered foster 
     care on the earlier of--
       ``(i) the date of the first judicial finding that the child 
     has been subjected to child abuse or neglect; or
       ``(ii) the date that is 60 days after the date on which the 
     child is removed from the home.''.
       (c) Transition Rules.--
       (1) New foster children.--In the case of a child who enters 
     foster care (within the meaning of section 475(5)(F) of the 
     Social Security Act) under the responsibility of a State 
     after the date of the enactment of this Act--
       (A) if the State comes into compliance with the amendments 
     made by subsection (a) of this section before the child has 
     been in such foster care for 15 of the most recent 22 months, 
     the State shall comply with section 475(5)(E) of the Social 
     Security Act with respect to the child when the child has 
     been in such foster care for 15 of the most recent 22 months; 
     and
       (B) if the State comes into such compliance after the child 
     has been in such foster care for 15 of the most recent 22 
     months, the State shall comply with such section 475(5)(E) 
     with respect to the child not later than 3 months after the 
     end of the first regular session of the State legislature 
     that begins after such date of enactment.
       (2) Current foster children.--In the case of children in 
     foster care under the responsibility of the State on the date 
     of the enactment of this Act, the State shall--
       (A) not later than 6 months after the end of the first 
     regular session of the State legislature that begins after 
     such date of enactment, comply with section 475(5)(E) of the 
     Social Security Act with respect to not less than \1/3\ of 
     such children as the State shall select, giving priority to 
     children for whom the permanency plan (within the meaning of 
     part E of title IV of the Social Security Act) is adoption 
     and children who have been in foster care for the greatest 
     length of time;
       (B) not later than 12 months after the end of such first 
     regular session, comply with such section 475(5)(E) with 
     respect to not less than \2/3\ of such children as the State 
     shall select; and
       (C) not later than 18 months after the end of such first 
     regular session, comply with such section 475(5)(E) with 
     respect to all of such children.
       (3) Treatment of 2-year legislative sessions.--For purposes 
     of this subsection, 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.
       (4) Requirements treated as state plan requirements.--For 
     purposes of part E of

[[Page H10778]]

     title IV of the Social Security Act, the requirements of this 
     subsection shall be treated as State plan requirements 
     imposed by section 471(a) of such Act.
       (d) Rule of Construction.--Nothing in this section or in 
     part E of title IV of the Social Security Act (42 U.S.C. 670 
     et seq.), as amended by this Act, shall be construed as 
     precluding State courts or State agencies from initiating the 
     termination of parental rights for reasons other than, or for 
     timelines earlier than, those specified in part E of title IV 
     of such Act, when such actions are determined to be in the 
     best interests of the child, including cases where the child 
     has experienced multiple foster care placements of varying 
     durations.

     SEC. 104. NOTICE OF REVIEWS AND HEARINGS; OPPORTUNITY TO BE 
                   HEARD.

       Section 475(5) of the Social Security Act (42 U.S.C. 
     675(5)), as amended by section 103, is amended--
       (1) by striking ``and'' at the end of subparagraph (E);
       (2) by striking the period at the end of subparagraph (F) 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(G) the foster parents (if any) of a child and any 
     preadoptive parent or relative providing care for the child 
     are provided with notice of, and an opportunity to be heard 
     in, any review or hearing to be held with respect to the 
     child, except that this subparagraph shall not be construed 
     to require that any foster parent, preadoptive parent, or 
     relative providing care for the child be made a party to such 
     a review or hearing solely on the basis of such notice and 
     opportunity to be heard.''.

     SEC. 105. USE OF THE FEDERAL PARENT LOCATOR SERVICE FOR CHILD 
                   WELFARE SERVICES.

       Section 453 of the Social Security Act (42 U.S.C. 653) is 
     amended--
       (1) in subsection (a)(2)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``or making or enforcing child custody or visitation 
     orders,'' after ``obligations,''; and
       (B) in subparagraph (A)--
       (i) by striking ``or'' at the end of clause (ii);
       (ii) by striking the comma at the end of clause (iii) and 
     inserting ``; or''; and
       (iii) by inserting after clause (iii) the following:
       ``(iv) who has or may have parental rights with respect to 
     a child,''; and
       (2) in subsection (c)--
       (A) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (B) by adding at the end the following:
       ``(4) a State agency that is administering a program 
     operated under a State plan under subpart 1 of part B, or a 
     State plan approved under subpart 2 of part B or under part 
     E.''.

     SEC. 106. CRIMINAL RECORDS CHECKS FOR PROSPECTIVE FOSTER AND 
                   ADOPTIVE PARENTS.

       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 (18);
       (2) by striking the period at the end of paragraph (19) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(20)(A) unless an election provided for in subparagraph 
     (B) is made with respect to the State, provides procedures 
     for criminal records checks for any prospective 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 are to be made under the State plan under this part, 
     including procedures requiring that--
       ``(i) in any case in which a record check reveals a felony 
     conviction for child abuse or neglect, for spousal abuse, for 
     a crime against children (including child pornography), or 
     for a crime involving violence, including rape, sexual 
     assault, or homicide, but not including other physical 
     assault or battery, if a State finds that a court of 
     competent jurisdiction has determined that the felony was 
     committed at any time, such final approval shall not be 
     granted; and
       ``(ii) in any case in which a record check reveals a felony 
     conviction for physical assault, battery, or a drug-related 
     offense, if a State finds that a court of competent 
     jurisdiction has determined that the felony was committed 
     within the past 5 years, such final approval shall not be 
     granted; and
       ``(B) subparagraph (A) shall not apply to a State plan if 
     the Governor of the State has notified the Secretary in 
     writing that the State has elected to make subparagraph (A) 
     inapplicable to the State, or if the State legislature, by 
     law, has elected to make subparagraph (A) inapplicable to the 
     State.''.

     SEC. 107. DOCUMENTATION OF EFFORTS FOR ADOPTION OR LOCATION 
                   OF A PERMANENT HOME.

       Section 475(1) of the Social Security Act (42 U.S.C. 
     675(1)) is amended--
       (1) in the last sentence--
       (A) by striking ``the case plan must also include''; and
       (B) by redesignating such sentence as subparagraph (D) and 
     indenting appropriately; and
       (2) by adding at the end the following:
       ``(E) In the case of a child with respect to whom the 
     permanency plan is adoption or placement in another permanent 
     home, documentation of the steps the agency is taking to find 
     an adoptive family or other permanent living arrangement for 
     the child, to place the child with an adoptive family, a fit 
     and willing relative, a legal guardian, or in another planned 
     permanent living arrangement, and to finalize the adoption or 
     legal guardianship. At a minimum, such documentation shall 
     include child specific recruitment efforts such as the use of 
     State, regional, and national adoption exchanges including 
     electronic exchange systems.''.
   TITLE II--INCENTIVES FOR PROVIDING PERMANENT FAMILIES FOR CHILDREN

     SEC. 201. ADOPTION INCENTIVE PAYMENTS.

       (a) In General.--Part E of title IV of the Social Security 
     Act (42 U.S.C. 670-679) is amended by inserting after section 
     473 the following:

     ``SEC. 473A. ADOPTION INCENTIVE PAYMENTS.

       ``(a) Grant Authority.--Subject to the availability of such 
     amounts as may be provided in advance in appropriations Acts 
     for this purpose, the Secretary shall make a grant to each 
     State that is an incentive-eligible State for a fiscal year 
     in an amount equal to the adoption incentive payment payable 
     to the State under this section for the fiscal year, which 
     shall be payable in the immediately succeeding fiscal year.
       ``(b) Incentive-Eligible State.--A State is an incentive-
     eligible State for a fiscal year if--
       ``(1) the State has a plan approved under this part for the 
     fiscal year;
       ``(2) the number of foster child adoptions in the State 
     during the fiscal year exceeds the base number of foster 
     child adoptions for the State for the fiscal year;
       ``(3) the State is in compliance with subsection (c) for 
     the fiscal year;
       ``(4) in the case of fiscal years 2001 and 2002, the State 
     provides health insurance coverage to any child with special 
     needs (as determined under section 473(c)) for whom there is 
     in effect an adoption assistance agreement between a State 
     and an adoptive parent or parents; and
       ``(5) the fiscal year is any of fiscal years 1998 through 
     2002.
       ``(c) Data Requirements.--
       ``(1) In general.--A State is in compliance with this 
     subsection for a fiscal year if the State has provided to the 
     Secretary the data described in paragraph (2)--
       ``(A) for fiscal years 1995 through 1997 (or, if the 1st 
     fiscal year for which the State seeks a grant under this 
     section is after fiscal year 1998, the fiscal year that 
     precedes such 1st fiscal year); and
       ``(B) for each succeeding fiscal year that precedes the 
     fiscal year.
       ``(2) Determination of numbers of adoptions.--
       ``(A) Determinations based on afcars data.--Except as 
     provided in subparagraph (B), the Secretary shall determine 
     the numbers of foster child adoptions and of special needs 
     adoptions in a State during each of fiscal years 1995 through 
     2002, for purposes of this section, on the basis of data 
     meeting the requirements of the system established pursuant 
     to section 479, as reported by the State and approved by the 
     Secretary by August 1 of the succeeding fiscal year.
       ``(B) Alternative data sources permitted for fiscal years 
     1995 through 1997.--For purposes of the determination 
     described in subparagraph (A) for fiscal years 1995 through 
     1997, the Secretary may use data from a source or sources 
     other than that specified in subparagraph (A) that the 
     Secretary finds to be of equivalent completeness and 
     reliability, as reported by a State by November 30, 1997, and 
     approved by the Secretary by March 1, 1998.
       ``(3) No waiver of afcars requirements.--This section shall 
     not be construed to alter or affect any requirement of 
     section 479 or of any regulation prescribed under such 
     section with respect to reporting of data by States, or to 
     waive any penalty for failure to comply with such a 
     requirement.
       ``(d) Adoption Incentive Payment.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     adoption incentive payment payable to a State for a fiscal 
     year under this section shall be equal to the sum of--
       ``(A) $4,000, multiplied by the amount (if any) by which 
     the number of foster child adoptions in the State during the 
     fiscal year exceeds the base number of foster child adoptions 
     for the State for the fiscal year; and
       ``(B) $2,000, multiplied by the amount (if any) by which 
     the number of special needs adoptions in the State during the 
     fiscal year exceeds the base number of special needs 
     adoptions for the State for the fiscal year.
       ``(2) Pro rata adjustment if insufficient funds 
     available.--For any fiscal year, if the total amount of 
     adoption incentive payments otherwise payable under this 
     section for a fiscal year exceeds the amount appropriated 
     pursuant to subsection (h) for the fiscal year, the amount of 
     the adoption incentive payment payable to each State under 
     this section for the fiscal year shall be--
       ``(A) the amount of the adoption incentive payment that 
     would otherwise be payable to the State under this section 
     for the fiscal year; multiplied by
       ``(B) the percentage represented by the amount so 
     appropriated for the fiscal year, divided by the total amount 
     of adoption incentive payments otherwise payable under this 
     section for the fiscal year.
       ``(e) 2-Year Availability of Incentive Payments.--Payments 
     to a State under this section in a fiscal year shall remain 
     available for use by the State through the end of the 
     succeeding fiscal year.
       ``(f) Limitations on Use of Incentive Payments.--A State 
     shall not expend an amount paid to the State under this 
     section except to provide to children or families any service 
     (including post-adoption services) that may

[[Page H10779]]

     be provided under part B or E. Amounts expended by a State in 
     accordance with the preceding sentence shall be disregarded 
     in determining State expenditures for purposes of Federal 
     matching payments under sections 423, 434, and 474.
       ``(g) Definitions.--As used in this section:
       ``(1) Foster child adoption.--The term `foster child 
     adoption' means the final adoption of a child who, at the 
     time of adoptive placement, was in foster care under the 
     supervision of the State.
       ``(2) Special needs adoption.--The term `special needs 
     adoption' means the final adoption of a child for whom an 
     adoption assistance agreement is in effect under section 473.
       ``(3) Base number of foster child adoptions.--The term 
     `base number of foster child adoptions for a State' means--
       ``(A) with respect to fiscal year 1998, the average number 
     of foster child adoptions in the State in fiscal years 1995, 
     1996, and 1997; and
       ``(B) with respect to any subsequent fiscal year, the 
     number of foster child adoptions in the State in the fiscal 
     year for which the number is the greatest in the period that 
     begins with fiscal year 1997 and ends with the fiscal year 
     preceding such subsequent fiscal year.
       ``(4) Base number of special needs adoptions.--The term 
     `base number of special needs adoptions for a State' means--
       ``(A) with respect to fiscal year 1998, the average number 
     of special needs adoptions in the State in fiscal years 1995, 
     1996, and 1997; and
       ``(B) with respect to any subsequent fiscal year, the 
     number of special needs adoptions in the State in the fiscal 
     year for which the number is the greatest in the period that 
     begins with fiscal year 1997 and ends with the fiscal year 
     preceding such subsequent fiscal year.
       ``(h) Limitations on Authorization of Appropriations.--
       ``(1) In general.--For grants under subsection (a), there 
     are authorized to be appropriated to the Secretary 
     $20,000,000 for each of fiscal years 1999 through 2003.
       ``(2) Availability.--Amounts appropriated under paragraph 
     (1) are authorized to remain available until expended, but 
     not after fiscal year 2003.
       ``(i) Technical Assistance.--
       ``(1) In general.--The Secretary may, directly or through 
     grants or contracts, provide technical assistance to assist 
     States and local communities to reach their targets for 
     increased numbers of adoptions and, to the extent that 
     adoption is not possible, alternative permanent placements, 
     for children in foster care.
       ``(2) Description of the character of the technical 
     assistance.--The technical assistance provided under 
     paragraph (1) may support the goal of encouraging more 
     adoptions out of the foster care system, when adoptions 
     promote the best interests of children, and may include the 
     following:
       ``(A) The development of best practice guidelines for 
     expediting termination of parental rights.
       ``(B) Models to encourage the use of concurrent planning.
       ``(C) The development of specialized units and expertise in 
     moving children toward adoption as a permanency goal.
       ``(D) The development of risk assessment tools to 
     facilitate early identification of the children who will be 
     at risk of harm if returned home.
       ``(E) Models to encourage the fast tracking of children who 
     have not attained 1 year of age into pre-adoptive placements.
       ``(F) Development of programs that place children into pre-
     adoptive families without waiting for termination of parental 
     rights.
       ``(3) Targeting of technical assistance to the courts.--Not 
     less than 50 percent of any amount appropriated pursuant to 
     paragraph (4) shall be used to provide technical assistance 
     to the courts.
       ``(4) Limitations on authorization of appropriations.--To 
     carry out this subsection, there are authorized to be 
     appropriated to the Secretary of Health and Human Services 
     not to exceed $10,000,000 for each of fiscal years 1998 
     through 2000.''.
       (b) Discretionary Cap Adjustment for Adoption Incentive 
     Payments.--
       (1) Section 251 amendment.--Section 251(b)(2) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 (2 
     U.S.C. 901(b)(2)), as amended by section 10203(a)(4) of the 
     Balanced Budget Act of 1997, is amended by adding at the end 
     the following new subparagraph:
       ``(G) Adoption incentive payments.--Whenever a bill or 
     joint resolution making appropriations for fiscal year 1999, 
     2000, 2001, 2002, or 2003 is enacted that specifies an amount 
     for adoption incentive payments pursuant to this part for the 
     Department of Health and Human Services--
       ``(i) the adjustments for new budget authority shall be the 
     amounts of new budget authority provided in that measure for 
     adoption incentive payments, but not to exceed $20,000,000; 
     and
       ``(ii) the adjustment for outlays shall be the additional 
     outlays flowing from such amount.''.
       (2) Section 314 amendment.--Section 314(b) of the 
     Congressional Budget Act of 1974, as amended by section 
     10114(a) of the Balanced Budget Act of 1997, is amended--
       (A) by striking ``or'' at the end of paragraph (4);
       (B) by striking the period at the end of paragraph (5) and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(6) in the case of an amount for adoption incentive 
     payments (as defined in section 251(b)(2)(G) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985) for fiscal 
     year 1999, 2000, 2001, 2002, or 2003 for the Department of 
     Health and Human Services, an amount not to exceed 
     $20,000,000.''.

     SEC. 202. ADOPTIONS ACROSS STATE AND COUNTY JURISDICTIONS.

       (a) State Plan for Child Welfare Services Requirement.--
     Section 422(b) of the Social Security Act (42 U.S.C. 622(b)) 
     is amended--
       (1) in paragraph (10), by striking ``and'' at the end;
       (2) in paragraph (11), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(12) contain assurances that the State shall develop 
     plans for the effective use of cross-jurisdictional resources 
     to facilitate timely adoptive or permanent placements for 
     waiting children.''.
       (b) Condition of Assistance.--Section 474 of such Act (42 
     U.S.C. 674) is amended by adding at the end the following:
       ``(e) Notwithstanding subsection (a), a State shall not be 
     eligible for any payment under this section if the Secretary 
     finds that, after the date of the enactment of this 
     subsection, the State has--
       ``(1) denied or delayed the placement of a child for 
     adoption when an approved family is available outside of the 
     jurisdiction with responsibility for handling the case of the 
     child; or
       ``(2) failed to grant an opportunity for a fair hearing, as 
     described in section 471(a)(12), to an individual whose 
     allegation of a violation of paragraph (1) of this subsection 
     is denied by the State or not acted upon by the State with 
     reasonable promptness.''.
       (c) Study of Interjurisdictional Adoption Issues.--
       (1) In general.--The Comptroller General of the United 
     States shall--
       (A) study and consider how to improve procedures and 
     policies to facilitate the timely and permanent adoptions of 
     children across State and county jurisdictions; and
       (B) examine, at a minimum, interjurisdictional adoption 
     issues--
       (i) concerning the recruitment of prospective adoptive 
     families from other States and counties;
       (ii) concerning the procedures to grant reciprocity to 
     prospective adoptive family home studies from other States 
     and counties;
       (iii) arising from a review of the comity and full faith 
     and credit provided to adoption decrees and termination of 
     parental rights orders from other States; and
       (iv) concerning the procedures related to the 
     administration and implementation of the Interstate Compact 
     on the Placement of Children.
       (2) Report to the congress.--Not later than 1 year after 
     the date of the enactment of this Act, the Comptroller 
     General shall submit to the appropriate committees of the 
     Congress a report that includes--
       (A) the results of the study conducted under paragraph (1); 
     and
       (B) recommendations on how to improve procedures to 
     facilitate the interjurisdictional adoption of children, 
     including interstate and intercounty adoptions, so that 
     children will be assured timely and permanent placements.

     SEC. 203. PERFORMANCE OF STATES IN PROTECTING CHILDREN.

       (a) Annual Report on State Performance.--Part E of title IV 
     of the Social Security Act (42 U.S.C. 670 et seq.) is amended 
     by adding at the end the following:

     ``SEC. 479A. ANNUAL REPORT.

       ``The Secretary, in consultation with Governors, State 
     legislatures, State and local public officials responsible 
     for administering child welfare programs, and child welfare 
     advocates, shall--
       ``(1) develop a set of outcome measures (including length 
     of stay in foster care, number of foster care placements, and 
     number of adoptions) that can be used to assess the 
     performance of States in operating child protection and child 
     welfare programs pursuant to parts B and E to ensure the 
     safety of children;
       ``(2) to the maximum extent possible, the outcome measures 
     should be developed from data available from the Adoption and 
     Foster Care Analysis and Reporting System;
       ``(3) develop a system for rating the performance of States 
     with respect to the outcome measures, and provide to the 
     States an explanation of the rating system and how scores are 
     determined under the rating system;
       ``(4) prescribe such regulations as may be necessary to 
     ensure that States provide to the Secretary the data 
     necessary to determine State performance with respect to each 
     outcome measure, as a condition of the State receiving funds 
     under this part; and
       ``(5) on May 1, 1999, and annually thereafter, prepare and 
     submit to the Congress a report on the performance of each 
     State on each outcome measure, which shall examine the 
     reasons for high performance and low performance and, where 
     possible, make recommendations as to how State performance 
     could be improved.''.
       (b) Development of Performance-Based Incentive System.--The 
     Secretary of Health and Human Services, in consultation with 
     State and local public officials responsible

[[Page H10780]]

     for administering child welfare programs and child welfare 
     advocates, shall study, develop, and recommend to Congress an 
     incentive system to provide payments under parts B and E of 
     title IV of the Social Security Act (42 U.S.C. 620 et seq., 
     670 et seq.) to any State based on the State's performance 
     under such a system. Such a system shall, to the extent the 
     Secretary determines feasible and appropriate, be based on 
     the annual report required by section 479A of the Social 
     Security Act (as added by subsection (a) of this section) or 
     on any proposed modifications of the annual report. Not later 
     than 6 months after the date of the enactment of this Act, 
     the Secretary shall submit to the Committee on Ways and Means 
     of the House of Representatives and the Committee on Finance 
     of the Senate a progress report on the feasibility, 
     timetable, and consultation process for conducting such a 
     study. Not later than 15 months after such date of enactment, 
     the Secretary shall submit to the Committee on Ways and Means 
     of the House of Representatives and the Committee on Finance 
     of the Senate the final report on a performance-based 
     incentive system. The report may include other 
     recommendations for restructuring the program and payments 
     under parts B and E of title IV of the Social Security Act.
             TITLE III--ADDITIONAL IMPROVEMENTS AND REFORMS

     SEC. 301. EXPANSION OF CHILD WELFARE DEMONSTRATION PROJECTS.

       (a) In General.--Section 1130(a) of the Social Security Act 
     (42 U.S.C. 1320a-9) is amended to read as follows:
       ``(a) Authority To Approve Demonstration Projects.--
       ``(1) In general.--The Secretary may authorize States to 
     conduct demonstration projects pursuant to this section which 
     the Secretary finds are likely to promote the objectives of 
     part B or E of title IV.
       ``(2) Limitation.--The Secretary may authorize not more 
     than 10 demonstration projects under paragraph (1) in each of 
     fiscal years 1998 through 2002.
       ``(3) Certain types of proposals required to be 
     considered.--
       ``(A) If an appropriate application therefor is submitted, 
     the Secretary shall consider authorizing a demonstration 
     project which is designed to identify and address barriers 
     that result in delays to adoptive placements for children in 
     foster care.
       ``(B) If an appropriate application therefor is submitted, 
     the Secretary shall consider authorizing a demonstration 
     project which is designed to identify and address parental 
     substance abuse problems that endanger children and result in 
     the placement of children in foster care, including through 
     the placement of children with their parents in residential 
     treatment facilities (including residential treatment 
     facilities for post-partum depression) that are specifically 
     designed to serve parents and children together in order to 
     promote family reunification and that can ensure the health 
     and safety of the children in such placements.
       ``(C) If an appropriate application therefor is submitted, 
     the Secretary shall consider authorizing a demonstration 
     project which is designed to address kinship care.
       ``(4) Limitation on eligibility.--The Secretary may not 
     authorize a State to conduct a demonstration project under 
     this section if the State fails to provide health insurance 
     coverage to any child with special needs (as determined under 
     section 473(c)) for whom there is in effect an adoption 
     assistance agreement between a State and an adoptive parent 
     or parents.
       ``(5) Requirement to consider effect of project on terms 
     and conditions of certain court orders.--In considering an 
     application to conduct a demonstration project under this 
     section that has been submitted by a State in which there is 
     in effect a court order determining that the State's child 
     welfare program has failed to comply with the provisions of 
     part B or E of title IV, or with the Constitution of the 
     United States, the Secretary shall take into consideration 
     the effect of approving the proposed project on the terms and 
     conditions of the court order related to the failure to 
     comply.''.
       (b) Rule of Construction.--Nothing in the amendment made by 
     subsection (a) shall be construed as affecting the terms and 
     conditions of any demonstration project approved under 
     section 1130 of the Social Security Act (42 U.S.C. 1320a-9) 
     before the date of the enactment of this Act.
       (c) Authority To Extend Duration of Demonstrations.--
     Section 1130(d) of such Act (42 U.S.C. 1320a-9(d)) is amended 
     by inserting ``, unless in the judgment of the Secretary, the 
     demonstration project should be allowed to continue'' before 
     the period.

     SEC. 302. PERMANENCY HEARINGS.

       Section 475(5)(C) of the Social Security Act (42 U.S.C. 
     675(5)(C)) is amended--
       (1) by striking ``dispositional'' and inserting 
     ``permanency'';
       (2) by striking ``eighteen'' and inserting ``12'';
       (3) by striking ``original placement'' and inserting ``date 
     the child is considered to have entered foster care (as 
     determined under subparagraph (F))''; and
       (4) by striking ``future status of'' and all that follows 
     through ``long term basis)'' and inserting ``permanency plan 
     for the child that includes whether, and if applicable when, 
     the child will be returned to the parent, placed for adoption 
     and the State will file a petition for termination of 
     parental rights, or referred for legal guardianship, or (in 
     cases where the State agency has documented to the State 
     court a compelling reason for determining that it would not 
     be in the best interests of the child to return home, be 
     referred for termination of parental rights, or be placed for 
     adoption, with a fit and willing relative, or with a legal 
     guardian) placed in another planned permanent living 
     arrangement''.

     SEC. 303. KINSHIP CARE.

       (a) Report.--
       (1) In general.--The Secretary of Health and Human Services 
     shall--
       (A) not later than June 1, 1998, convene the advisory panel 
     provided for in subsection (b)(1) and prepare and submit to 
     the advisory panel an initial report on the extent to which 
     children in foster care are placed in the care of a relative 
     (in this section referred to as ``kinship care''); and
       (B) not later than June 1, 1999, submit to the Committee on 
     Ways and Means of the House of Representatives and the 
     Committee on Finance of the Senate a final report on the 
     matter described in subparagraph (A), which shall--
       (i) be based on the comments submitted by the advisory 
     panel pursuant to subsection (b)(2) and other information and 
     considerations; and
       (ii) include the policy recommendations of the Secretary 
     with respect to the matter.
       (2) Required contents.--Each report required by paragraph 
     (1) shall--
       (A) include, to the extent available for each State, 
     information on--
       (i) the policy of the State regarding kinship care;
       (ii) the characteristics of the kinship care providers 
     (including age, income, ethnicity, and race, and the 
     relationship of the kinship care providers to the children);
       (iii) the characteristics of the household of such 
     providers (such as number of other persons in the household 
     and family composition);
       (iv) how much access to the child is afforded to the parent 
     from whom the child has been removed;
       (v) the cost of, and source of funds for, kinship care 
     (including any subsidies such as medicaid and cash 
     assistance);
       (vi) the permanency plan for the child and the actions 
     being taken by the State to achieve the plan;
       (vii) the services being provided to the parent from whom 
     the child has been removed; and
       (viii) the services being provided to the kinship care 
     provider; and
       (B) specifically note the circumstances or conditions under 
     which children enter kinship care.
       (b) Advisory Panel.--
       (1) Establishment.--The Secretary of Health and Human 
     Services, in consultation with the Chairman of the Committee 
     on Ways and Means of the House of Representatives and the 
     Chairman of the Committee on Finance of the Senate, shall 
     convene an advisory panel which shall include parents, foster 
     parents, relative caregivers, former foster children, State 
     and local public officials responsible for administering 
     child welfare programs, private persons involved in the 
     delivery of child welfare services, representatives of tribal 
     governments and tribal courts, judges, and academic experts.
       (2) Duties.--The advisory panel convened pursuant to 
     paragraph (1) shall review the report prepared pursuant to 
     subsection (a), and, not later than October 1, 1998, submit 
     to the Secretary comments on the report.

     SEC. 304. CLARIFICATION OF ELIGIBLE POPULATION FOR 
                   INDEPENDENT LIVING SERVICES.

       Section 477(a)(2)(A) of the Social Security Act (42 U.S.C. 
     677(a)(2)(A)) is amended by inserting ``(including children 
     with respect to whom such payments are no longer being made 
     because the child has accumulated assets, not to exceed 
     $5,000, which are otherwise regarded as resources for 
     purposes of determining eligibility for benefits under this 
     part)'' before the comma.

     SEC. 305. REAUTHORIZATION AND EXPANSION OF FAMILY 
                   PRESERVATION AND SUPPORT SERVICES.

       (a) Reauthorization of Family Preservation and Support 
     Services.--
       (1) In general.--Section 430(b) of the Social Security Act 
     (42 U.S.C. 629(b)) is amended--
       (A) in paragraph (4), by striking ``or'' at the end;
       (B) in paragraph (5), by striking the period and inserting 
     a semicolon; and
       (C) by adding at the end the following:
       ``(6) for fiscal year 1999, $275,000,000;
       ``(7) for fiscal year 2000, $295,000,000; and
       ``(8) for fiscal year 2001, $305,000,000.''.
       (2) Continuation of reservation of certain amounts.--
     Paragraphs (1) and (2) of section 430(d) of the Social 
     Security Act (42 U.S.C. 629(d)(1) and (2)) are each amended 
     by striking ``and 1998'' and inserting ``1998, 1999, 2000, 
     and 2001''.
       (3) Conforming amendments.--Section 13712 of the Omnibus 
     Budget Reconciliation Act of 1993 (42 U.S.C. 670 note) is 
     amended--
       (A) in subsection (c), by striking ``1998'' each place it 
     appears and inserting ``2001''; and
       (B) in subsection (d)(2), by striking ``and 1998'' and 
     inserting ``1998, 1999, 2000, and 2001''.
       (b) Expansion for Time-Limited Family Reunification 
     Services and Adoption Promotion and Support Services.--
       (1) Additions to state plan.--Section 432 of the Social 
     Security Act (42 U.S.C. 629b) is amended--

[[Page H10781]]

       (A) in subsection (a)--
       (i) in paragraph (4), by striking ``and community-based 
     family support services'' and inserting ``, community-based 
     family support services, time-limited family reunification 
     services, and adoption promotion and support services,''; and
       (ii) in paragraph (5)(A), by striking ``and community-based 
     family support services'' and inserting ``, community-based 
     family support services, time-limited family reunification 
     services, and adoption promotion and support services''; and
       (B) in subsection (b)(1), by striking ``and family 
     support'' and inserting ``, family support, time-limited 
     family reunification, and adoption promotion and support''.
       (2) Definitions of time-limited family reunification 
     services and adoption promotion and support services.--
     Section 431(a) of the Social Security Act (42 U.S.C. 629a(a)) 
     is amended by adding at the end the following:
       ``(7) Time-limited family reunification services.--
       ``(A) In general.--The term `time-limited family 
     reunification services' means the services and activities 
     described in subparagraph (B) that are provided to a child 
     that is removed from the child's home and placed in a foster 
     family home or a child care institution and to the parents or 
     primary caregiver of such a child, in order to facilitate the 
     reunification of the child safely and appropriately within a 
     timely fashion, but only during the 15-month period that 
     begins on the date that the child, pursuant to section 
     475(5)(F), is considered to have entered foster care.
       ``(B) Services and activities described.--The services and 
     activities described in this subparagraph are the following:
       ``(i) Individual, group, and family counseling.
       ``(ii) Inpatient, residential, or outpatient substance 
     abuse treatment services.
       ``(iii) Mental health services.
       ``(iv) Assistance to address domestic violence.
       ``(v) Services designed to provide temporary child care and 
     therapeutic services for families, including crisis 
     nurseries.
       ``(vi) Transportation to or from any of the services and 
     activities described in this subparagraph.
       ``(8) Adoption promotion and support services.--The term 
     `adoption promotion and support services' means services and 
     activities designed to encourage more adoptions out of the 
     foster care system, when adoptions promote the best interests 
     of children, including such activities as pre-and post-
     adoptive services and activities designed to expedite the 
     adoption process and support adoptive families.''.
       (3) Additional conforming amendments.--
       (A) Purposes.--Section 430(a) of the Social Security Act 
     (42 U.S.C. 629(a)) is amended by striking ``and community-
     based family support services'' and inserting ``, community-
     based family support services, time-limited family 
     reunification services, and adoption promotion and support 
     services''.
       (B) Program title.--The heading of subpart 2 of part B of 
     title IV of the Social Security Act (42 U.S.C. 629 et seq.) 
     is amended to read as follows:

           ``Subpart 2--Promoting Safe and Stable Families''.

       (c) Emphasizing the Safety of the Child.--
       (1) Requiring assurances that the safety of children shall 
     be of paramount concern.--Section 432(a) of the Social 
     Security Act (42 U.S.C. 629b(a)) is amended--
       (A) by striking ``and'' at the end of paragraph (7);
       (B) by striking the period at the end of paragraph (8); and
       (C) by adding at the end the following:
       ``(9) contains assurances that in administering and 
     conducting service programs under the plan, the safety of the 
     children to be served shall be of paramount concern.''.
       (2) Definitions of family preservation and family support 
     services.--Section 431(a) of the Social Security Act (42 
     U.S.C. 629a(a)) is amended--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by inserting ``safe and'' before 
     ``appropriate'' each place it appears; and
       (ii) in subparagraph (B), by inserting ``safely'' after 
     ``remain''; and
       (B) in paragraph (2)--
       (i) by inserting ``safety and'' before ``well-being''; and
       (ii) by striking ``stable'' and inserting ``safe, 
     stable,''.
       (d) Clarification of Maintenance of Effort Requirement.--
       (1) Definition of non-federal funds.--Section 431(a) of the 
     Social Security Act (42 U.S.C. 629a(a)), as amended by 
     subsection (b)(2), is amended by adding at the end the 
     following:
       ``(9) Non-federal funds.--The term `non-Federal funds' 
     means State funds, or at the option of a State, State and 
     local funds.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     takes effect as if included in the enactment of section 13711 
     of the Omnibus Budget Reconciliation Act of 1993 (Public Law 
     103-33; 107 Stat. 649).

     SEC. 306. HEALTH INSURANCE COVERAGE FOR CHILDREN WITH SPECIAL 
                   NEEDS.

       Section 471(a) of the Social Security Act (42 U.S.C. 
     671(a)), as amended by section 106, is amended--
       (1) in paragraph (19), by striking ``and'' at the end;
       (2) in paragraph (20), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(21) provides for health insurance coverage (including, 
     at State option, through the program under the State plan 
     approved under title XIX) for any child who has been 
     determined to be a child with special needs, for whom there 
     is in effect an adoption assistance agreement (other than an 
     agreement under this part) between the State and an adoptive 
     parent or parents, and who the State has determined cannot be 
     placed with an adoptive parent or parents without medical 
     assistance because such child has special needs for medical, 
     mental health, or rehabilitative care, and that with respect 
     to the provision of such health insurance coverage--
       ``(A) such coverage may be provided through 1 or more State 
     medical assistance programs;
       ``(B) the State, in providing such coverage, shall ensure 
     that the medical benefits, including mental health benefits, 
     provided are of the same type and kind as those that would be 
     provided for children by the State under title XIX;
       ``(C) in the event that the State provides such coverage 
     through a State medical assistance program other than the 
     program under title XIX, and the State exceeds its funding 
     for services under such other program, any such child shall 
     be deemed to be receiving aid or assistance under the State 
     plan under this part for purposes of section 
     1902(a)(10)(A)(i)(I); and
       ``(D) in determining cost-sharing requirements, the State 
     shall take into consideration the circumstances of the 
     adopting parent or parents and the needs of the child being 
     adopted consistent, to the extent coverage is provided 
     through a State medical assistance program, with the rules 
     under such program.''.

     SEC. 307. CONTINUATION OF ELIGIBILITY FOR ADOPTION ASSISTANCE 
                   PAYMENTS ON BEHALF OF CHILDREN WITH SPECIAL 
                   NEEDS WHOSE INITIAL ADOPTION HAS BEEN 
                   DISSOLVED.

       (a) Continuation of Eligibility.--Section 473(a)(2) of the 
     Social Security Act (42 U.S.C. 673(a)(2)) is amended by 
     adding at the end the following: ``Any child who meets the 
     requirements of subparagraph (C), who was determined eligible 
     for adoption assistance payments under this part with respect 
     to a prior adoption, 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, and who fails to meet the 
     requirements of subparagraphs (A) and (B) but would meet such 
     requirements if the child were treated as if the child were 
     in the same financial and other circumstances the child was 
     in the last time the child was determined eligible for 
     adoption assistance payments under this part and the prior 
     adoption were treated as never having occurred, shall be 
     treated as meeting the requirements of this paragraph for 
     purposes of paragraph (1)(B)(ii).''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall only apply to children who are adopted on or after 
     October 1, 1997.

     SEC. 308. STATE STANDARDS TO ENSURE QUALITY SERVICES FOR 
                   CHILDREN IN FOSTER CARE.

       Section 471(a) of the Social Security Act (42 U.S.C. 
     671(a)), as amended by sections 106 and 306, is amended--
       (1) in paragraph (20), by striking ``and'' at the end;
       (2) in paragraph (21), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(22) provides that, not later than January 1, 1999, the 
     State shall develop and implement standards to ensure that 
     children in foster care placements in public or private 
     agencies are provided quality services that protect the 
     safety and health of the children.''.
                        TITLE IV--MISCELLANEOUS

     SEC. 401. PRESERVATION OF REASONABLE PARENTING.

       Nothing in this Act is intended to disrupt the family 
     unnecessarily or to intrude inappropriately into family life, 
     to prohibit the use of reasonable methods of parental 
     discipline, or to prescribe a particular method of parenting.

     SEC. 402. REPORTING REQUIREMENTS.

       Any information required to be reported under this Act 
     shall be supplied to the Secretary of Health and Human 
     Services through data meeting the requirements of the 
     Adoption and Foster Care Analysis and Reporting System 
     established pursuant to section 479 of the Social Security 
     Act (42 U.S.C. 679), to the extent such data is available 
     under that system. The Secretary shall make such 
     modifications to regulations issued under section 479 of such 
     Act with respect to the Adoption and Foster Care Analysis and 
     Reporting System as may be necessary to allow States to 
     obtain data that meets the requirements of such system in 
     order to satisfy the reporting requirements of this Act.

     SEC. 403. SENSE OF CONGRESS REGARDING STANDBY GUARDIANSHIP.

       It is the sense of Congress that the States should have in 
     effect laws and procedures that permit any parent who is 
     chronically ill or near death, without surrendering parental 
     rights, to designate a standby guardian for the parent's 
     minor children, whose authority would take effect upon--

[[Page H10782]]

       (1) the death of the parent;
       (2) the mental incapacity of the parent; or
       (3) the physical debilitation and consent of the parent.

     SEC. 404. TEMPORARY ADJUSTMENT OF CONTINGENCY FUND FOR STATE 
                   WELFARE PROGRAMS.

       (a) Reduction of Appropriation.--Section 403(b)(2) of the 
     Social Security Act (42 U.S.C. 603(b)(2)) is amended by 
     inserting ``, reduced by the sum of the dollar amounts 
     specified in paragraph (6)(C)(ii)'' before the period.
       (b) Increase in State Remittances.-- Section 403(b)(6) of 
     such Act (42 U.S.C. 603(b)(6)) is amended by adding at the 
     end the following:
       ``(C) Adjustment of state remittances.--
       ``(i) In general.--The amount otherwise required by 
     subparagraph (A) to be remitted by a State for a fiscal year 
     shall be increased by the lesser of--

       ``(I) the total adjustment for the fiscal year, multiplied 
     by the adjustment percentage for the State for the fiscal 
     year; or
       ``(II) the unadjusted net payment to the State for the 
     fiscal year.

       ``(ii) Total adjustment.--As used in clause (i), the term 
     `total adjustment' means--

       ``(I) in the case of fiscal year 1998, $2,000,000;
       ``(II) in the case of fiscal year 1999, $9,000,000;
       ``(III) in the case of fiscal year 2000, $16,000,000; and
       ``(IV) in the case of fiscal year 2001, $13,000,000.

       ``(iii) Adjustment percentage.--As used in clause (i), the 
     term `adjustment percentage' means, with respect to a State 
     and a fiscal year--

       ``(I) the unadjusted net payment to the State for the 
     fiscal year; divided by
       ``(II) the sum of the unadjusted net payments to all States 
     for the fiscal year.

       ``(iv) Unadjusted net payment.--As used in this 
     subparagraph, the term, `unadjusted net payment' means with 
     respect to a State and a fiscal year--

       ``(I) the total amount paid to the State under paragraph 
     (3) in the fiscal year; minus
       ``(II) the amount that, in the absence of this 
     subparagraph, would be required by subparagraph (A) or by 
     section 409(a)(10) to be remitted by the State in respect of 
     the payment.''.

       (c) Recommendations for Improving the Operation of the 
     Contingency Fund.--Not later than March 1, 1998, the 
     Secretary of Health and Human Services shall make 
     recommendations to the Congress for improving the operation 
     of the Contingency Fund for State Welfare Programs.

     SEC. 405. COORDINATION OF SUBSTANCE ABUSE AND CHILD 
                   PROTECTION SERVICES.

       Within 1 year after the date of the enactment of this Act, 
     the Secretary of Health and Human Services, based on 
     information from the Substance Abuse and Mental Health 
     Services Administration and the Administration for Children 
     and Families in the Department of Health of Human Services, 
     shall prepare and submit to the Committee on Ways and Means 
     of the House of Representatives and the Committee on Finance 
     of the Senate a report which describes the extent and scope 
     of the problem of substance abuse in the child welfare 
     population, the types of services provided to such 
     population, and the outcomes resulting from the provision of 
     such services to such population. The report shall include 
     recommendations for any legislation that may be needed to 
     improve coordination in providing such services to such 
     population.

     SEC. 406. PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.

       (a) In General.--It is the sense of the Congress that, to 
     the greatest extent practicable, all equipment and products 
     purchased with funds made available under this Act should be 
     American-made.
       (b) Notice Requirement.--In providing financial assistance 
     to, or entering into any contract with, any entity using 
     funds made available under this Act, the head of each Federal 
     agency, to the greatest extent practicable, shall provide to 
     such entity a notice describing the statement made in 
     subsection (a) by the Congress.
                        TITLE V--EFFECTIVE DATE

     SEC. 501. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in this Act, 
     the amendments made by this Act take effect on the date of 
     enactment of this Act.
       (b) Delay Permitted if State Legislation Required.--In the 
     case of a State plan 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 the amendments 
     made 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 first day of the first 
     calendar quarter beginning after the close of the first 
     regular session of the State legislature that begins after 
     the date of enactment of this Act. For purposes of the 
     previous sentence, in the case of a State that has a 2-year 
     legislative session, each year of such session shall be 
     deemed to be a separate regular session of the State 
     legislature.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Florida [Mr. Shaw] and the gentlewoman from Connecticut [Mrs. Kennelly] 
each will control 20 minutes.
  The Chair recognizes the gentleman from Florida [Mr. Shaw].


                             General Leave

  Mr. SHAW. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on the resolution now under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the resolution we are now considering is needed to 
resolve the differences between the House on bill H.R. 867, the 
Adoption and Safe Families Act of 1997. This legislation passed this 
House last April by a vote of 416 to 5. It was approved last week by 
the other body by unanimous consent.
  The resolution before us provides for a House amendment to the 
Senate-passed amendment, with an agreed-upon compromise of the 
differences remaining between the two houses. We are doing this with 
the expectation that the Senate will agree quickly to this compromise 
and send the bill to the President for his anticipated signature.
  I have seldom been so proud as I am today to have been involved in 
this most historic legislation. Let me briefly tell my colleagues why.
  In 1980, the Congress enacted legislation that provided badly needed 
money to help the States protect abused and neglected children. 
Designed primarily by Democrats, the legislation was a great 
achievement in its time. However, we can now see that some of the 
technical provisions of the 1980 legislation have caused too many 
children to remain too long in foster care. In our highly justified 
efforts to help unfortunate parents and their children, we have 
inadvertently created a system that keeps children in the limbo of 
foster care, and in all too many cases, in harm's way.
  This wonderful bill corrects that problem. It does so by use of three 
tried and true methods. First, it establishes time lines to which 
States must conform in getting children into permanent placement. We 
are talking about permanent adoptive, loving homes. The effort of these 
time lines is to force States to make quicker decisions about when the 
child should be returned to the biological parents or made available 
for adoption.

                              {time}  1045

  Second, the bill gives the States much more flexibility in 
identifying cases in which no attempt to help the biological family 
should be made. These include cases in which a parent has murdered 
another child or has lost custody of another child, plus other 
aggravated circumstances of this type which would be identified by the 
States.
  Third, we give States a cash incentive for increasing the number of 
adoptions of children in foster care. Specifically, we pay the States 
up to $6,000 per adoption for increasing the number of children who are 
adopted out of foster care.
  The bill does other fine things, but this is its great achievement. 
That great achievement is moving children toward adoption with 
dispatch. As a result, we can expect adoptions to increase by many 
thousands of cases in the next 5 years. Think of that, thousands of 
additional children removed from the uncertainty of foster care and 
placed in warm, loving, and permanent families.
  For this great achievement, two Members of the House deserve special 
recognition. The gentleman from Michigan, Mr. Dave Camp, a member of 
the Committee on Ways and Means, has worked for more than a year now to 
guide this bill to final passage. As a matter of fact, he brought a 
great deal of expertise from his own experience as a lawyer in this 
area. His tireless work on this legislation and especially his 
persistence in working with the U.S. Senate, which sometimes is not an 
easy task, has enabled us to achieve a bill that is assured of passage 
in both the House and Senate.
  And the gentlewoman from Connecticut, Mrs. Barbara Kennelly, has 
worked closely with the gentleman from Michigan on this bill and has 
succeeded in representing the interests of

[[Page H10783]]

the Democrats in a wide variety and array of advocacy groups.
  I have always respected the legislative skills of the gentlewoman 
from Connecticut, [Mrs. Kennelly], but sometimes working on different 
sides of important issues. Thus, it has been a special pleasure for me 
to work on the same side of an issue with her and to profit from, 
rather than sometimes and occasionally being the victim of, her great 
legislative skills.
  Because of the demands of the legislative schedule, the House and 
Senate were not able to conduct a formal conference on this 
legislation. Even so, we have worked closely with the Senate at both 
the Member and the staff levels to achieve a bill that both Houses 
could accept. But because there is no conference, there is no 
conference report to establish and to clarify the legislative history 
of this important legislation.
  For this reason, Mr. Speaker, I include for the Record an abbreviated 
version of the legislative history of this bill.
  The material referred to is as follows:

 Legislative History of House Amendment to Adoption and Safe Families 
                     Act of 1997--November 13, 1997

      Title I. ``Reasonable Efforts'' and Child Safety Provisions


       1. ``Reasonable Efforts'' to Preserve and Reunify Families

     House bill
       As a component of their state Title IV-E plan, states would 
     continue to be required to make reasonable efforts to 
     preserve and reunify families; however, this requirement 
     would not apply in cases in which a court has found that: a 
     child has been subjected to ``aggravated circumstances'' as 
     defined in state law (which may include abandonment, torture, 
     chronic abuse, and sexual abuse); a parent has assaulted the 
     child or another of their children or has killed another of 
     their children (as defined in the Child Abuse Prevention and 
     Treatment Act); or a parent's rights to a sibling have been 
     involuntarily terminated. States would not be required to 
     make reasonable efforts on behalf of any parent who has been 
     involved in subjecting children to these circumstances.
       Reasonable efforts to preserve or reunify families could be 
     made concurrently with efforts to place the child for 
     adoption, with a legal guardian, or in another planned 
     permanent arrangement (see item 3). (Section 2 of the House 
     bill)
     Senate amendment
       As a component of their state Title IV-E plan, states would 
     be required to make reasonable efforts to preserve families 
     when the child can be cared for at home without endangering 
     the child's health or safety or to make it possible for the 
     child to safely return home. Such reasonable efforts would 
     not be required on behalf of any parent: if a court has 
     determined that the parent has killed or assaulted another of 
     their children; or if a court has determined that returning 
     the child home would pose a serious risk to the child's 
     health or safety (including but not limited to cases of 
     abandonment, torture, chronic physical abuse, sexual abuse, 
     or a previous involuntary termination of parental rights to a 
     sibling); or if the state has specified in legislation cases 
     in which reasonable efforts would not be required because of 
     serious circumstances that endanger a child's health or 
     safety. Reasonable efforts to place a child for adoption or 
     with a legal guardian or custodian could be made concurrently 
     with reasonable efforts to preserve or reunify families (see 
     item 3).
       Nothing in Title IV-E, as amended by this Act, would be 
     construed as precluding state courts from exercising their 
     discretion to protect the health and safety of children in 
     individual cases when such cases do not include aggravated 
     circumstances as defined by state law. (Section 101 of the 
     Senate amendment)
     House amendment
       The House Amendment follows the House bill with minor 
     differences in wording, except the agreement: clarifies that 
     the state law definition of ``aggravated circumstances'' may 
     include, but need not be limited to, abandonment, torture, 
     chronic abuse, and sexual abuse; adds a rule of construction 
     specifying that nothing in this legislation would be 
     construed as precluding state courts from exercising their 
     discretion to protect the health and safety of children in 
     individual cases, including cases other than those described 
     in this provision; and establishes new definitions, under 
     Title IV-E, of the terms ``legal guardianship'' and ``legal 
     guardian.'' (Section 101 of the House Amendment)


              2. Consideration of Child Health and Safety

     House bill
       In determining and making reasonable efforts on behalf of a 
     child, the child's health and safety must be of paramount 
     concern. (Section 2)
     Senate amendment
       Same as House bill. (Section 101) In addition, the Senate 
     amendment amends current law to include references to child 
     safety in provisions dealing with child welfare services, 
     case plans, and case review procedures. (Section 102)
     House amendment
       The House Amendment follows the Senate amendment.


   3. ``Reasonable Efforts'' to Place Children for Adoption or Other 
                         Permanent Arrangement

     House bill
       If reasonable efforts to preserve or reunify a family are 
     not made because of the reasons cited in item 1 or are no 
     longer consistent with the child's permanency plan, then 
     states would be required to make reasonable efforts to place 
     the child for adoption, with a legal guardian, or (if 
     adoption or guardianship were not appropriate) in another 
     planned, permanent arrangement. Reasonable efforts to 
     preserve or reunify families could be made concurrently with 
     efforts to place the child for adoption, guardianship, or in 
     another planned, permanent arrangement. (Section 2)
     Senate amendment
       If reasonable efforts to preserve or reunify a family are 
     not made because of the reasons cited in item 1 (as 
     determined by a court), then a permanency planning hearing 
     must be held for the child within 30 days of the court 
     determination. In such cases, states are required to place 
     the child in a timely manner in accordance with the 
     permanency plan and to complete whatever steps are necessary 
     to finalize the placement. Reasonable efforts to place a 
     child for adoption or with a legal custodian could be made 
     concurrently with reasonable efforts to preserve or reunify 
     the family. (Section 101)
     House amendment
       The House Amendment follows the Senate amendment with minor 
     differences in wording. (Section 101)


                  4. Documentation of Efforts to Adopt

     House bill
       For every child whose permanency plan is adoption or 
     another permanent placement, states would be required to 
     document the steps taken to find an adoptive family or 
     permanent home; to place the child with the adoptive family, 
     legal guardian, or other permanent home (including the 
     custody of a fit and willing relative); and to finalize the 
     adoption or guardianship. The documentation must cover child-
     specific recruitment efforts such as use of adoption 
     information exchanges, including electronic exchange systems. 
     (Section 7)
     Senate amendment
       Same as House bill, with minor differences in wording. 
     (Section 108)
     House amendment
       The House Amendment follows the House bill and Senate 
     amendment. (Section 107)


                   5. Termination of Parental Rights

     House Bill
       In the case of a child who is younger than 10 and has been 
     in foster care for 18 of the most recent 24 months, states 
     would be required to initiate a petition (or join any 
     existing petition) to terminate parental rights, unless: at 
     the option of the state, the child is being cared for by a 
     relative;  a state court or agency has documented a 
     compelling reason for determining that such a petition 
     would not be in the best interests of the child; or the 
     state has not provided the family with services deemed 
     appropriate by the state (in cases in which reasonable 
     efforts to preserve or reunify the family have been 
     required).
       This provision would apply only to children who enter 
     foster care on or after October 1, 1997. (Section 3)
     Senate amendment
       In the case of a child who has been in foster care for 12 
     of the most recent 18 months, an infant who is determined by 
     the court to have been abandoned (as defined under state 
     law), or a court determination that a parent of a child has 
     assaulted the child or killed or assaulted another of their 
     children, states would be required to initiate a petition (or 
     join any existing petition) to terminate parental rights, and 
     concurrently, to identify, recruit, process, and approve a 
     qualified adoptive family, unless: at the option of the 
     state, the child is being cared for by a relative; a state 
     agency has documented to the state court a compelling reason 
     for determining that such a petition would not be in the best 
     interests of the child; or the state has not provided the 
     family of the child with services deemed necessary by the 
     state for the child's safe return home. (Section 104(a))
       A child would be considered as having entered foster care 
     on the earlier of the date of the first judicial hearing 
     after the child's removal from home or 30 days after the 
     child's removal from home. (Section 104(b))
       Nothing in Title IV-E, as amended by this legislation, 
     would preclude state courts or agencies from initiating 
     termination of parental rights for other reasons, or 
     according to earlier timetables than those specified, if such 
     actions are determined to be in the child's best interests. 
     These special cases include those in which the child has 
     experienced multiple foster care placements. (Section 104(c))
       For children in foster care on or before the date of 
     enactment, this provision would apply as though the children 
     first entered care on the date of enactment. The effective 
     date of this bill, providing time for state legislatures to 
     enact necessary legislation, would apply to this provision 
     (see item 28). (Section 104(d))

[[Page H10784]]

     House amendment
       The House Amendment follows the House bill and Senate 
     amendment with modifications. With regard to cases taken into 
     state custody after the date of enactment of this 
     legislation, states are required to initiate a petition (or 
     join any existing petition) to terminate parental rights, and 
     concurrently, to identify, recruit, process, and approve a 
     qualified adoptive family for groups of children: those who 
     have been in foster care for 15 of the most recent 22 months; 
     those who the court has determined to be abandoned infants 
     (as defined in state law); or those for whom there has been a 
     court determination that their parent has assaulted the child 
     or killed or assaulted another of their children.
       There are three exceptions to the requirement for 
     terminating parental rights in these cases: at the option of 
     the state, if the child is being cared for by a relative; if 
     a state agency has documented in the case plan, which must be 
     available for court review, a compelling reason for 
     determining that filing such a petition would not be in the 
     best interests of the child; or if the state has not provided 
     to the family of the child, consistent with the time period 
     in the case plan, such services as the state deems necessary 
     for the safe return of the child (in cases in which 
     reasonable efforts to reunify the family have been required). 
     (Section 103(a))
       For purposes of applying the 15 of 22 month rule to new 
     cases, the clock begins on the date of the first judicial 
     finding that the child has been subjected to child abuse or 
     neglect or 60 days after the childs removal from home. 
     (Section 103(b))
       With regard to children who enter foster care after the 
     date of enactment, states would be required to comply with 
     this provision when any such child has been in care for 15 of 
     the most recent 22 months, but no later than 3 months after 
     the end of the first regular session of the state's 
     legislature that begins after the date of enactment. With 
     regard to children who are in foster care on the date of 
     enactment, states would be required to apply the 15 of 22 
     months rule to one-third of the caseload no later than 6 
     months after the end of the first legislative session, and 
     would give priority to children with permanency plans of 
     adoption and children who have been in foster care for the 
     greatest length of time. States then would be required to 
     apply the 15 of 22 months rule to two-thirds of the caseload 
     no later than 12 months after the end of the first 
     legislative session. Finally, states must apply the 15 of 22 
     months rule to all children who are in foster care on the 
     date of enactment within 18 months after the end of the first 
     legislative session that begins after the date of enactment. 
     (Section 103(c))
       Nothing in Title IV-E, as amended by this legislation, can 
     be construed as precluding state courts or state agencies 
     from initiating the termination of parental rights for other 
     reasons, or according to earlier timetables, than those 
     specified, when determined to be in the child's best 
     interests. These exceptions include cases in which the child 
     has experienced multiple foster care placements. (Section 
     103(d))


                      6. Child Death Review Teams

     House bill
       No provision.
     Senate amendment
       To be eligible for payments under Title IV-E, no later than 
     2 years after enactment states must certify that they have 
     established and are maintaining a state child death review 
     team (and, if necessary, regional and local teams) to 
     investigate child deaths. Such deaths include those in which 
     there has been a prior report of abuse or neglect or there is 
     reason to suspect that the death was related to abuse or 
     neglect, or the child was a ward of the state or otherwise 
     known to the child welfare agency. State, regional, or local 
     teams may be existing citizen review panels, as authorized 
     under CAPTA, or existing foster care review boards.
       In addition, HHS would be required to establish a federal 
     child death review team, with representatives from other 
     federal agencies, to investigate deaths on federal lands, 
     provide guidance and technical assistance to states and 
     localities upon request, and make recommendations to prevent 
     child deaths. (Section 103)
     House amendment
       The House Amendment follows the House bill.


                       7. Criminal Record CHECKS

     House bill
       At state option, states could provide, as a component of 
     their Title IV-E plan, procedures for criminal records checks 
     and checks of a state's child abuse registry for any 
     prospective foster parents or adoptive parents, and employees 
     of child care institutions, before the parents or 
     institutions are finally approved for a placement of a child 
     eligible for federal subsidies under Title IV-E.
       In any case of a criminal conviction of child abuse or 
     neglect, spousal abuse, crimes against children, or crimes 
     involving violence (including rape, sexual or other assault, 
     or homicide), approval could not be granted. In any case of a 
     criminal conviction for a felony or misdemeanor not involving 
     violence, or the existence of a substantiated report of abuse 
     or neglect, final approval could be granted only after 
     consideration of the nature of the offense, the length of 
     time since it occurred, the individual's life experiences 
     since the offense occurred, and any risk to the child. 
     (Section 17)
     Senate amendment
       States would be required to provide, as a component of 
     their Title IV-E plan, procedures for federal and state 
     criminal records checks for any prospective foster or 
     adoptive parents and other adults living in their home. 
     Background checks also would be required for employees of 
     residential child care institutions. Parents and institutions 
     must have background checks before being approved for 
     placement of a child eligible for federal subsidies under 
     Title IV-E.
       In any case of a criminal conviction of child abuse or 
     neglect, spousal abuse, crimes against children (including 
     child pornography), or crimes involving violence (including 
     rape, sexual or other physical assault, battery, or 
     homicide), approval could not be granted. In addition, if a 
     state finds that a court of competent jurisdiction has 
     determined that a drug-related offense has occurred within 
     the past 5 years, approval could not be granted. (Section 
     107(a))
       This provision would not be construed to supercede any 
     provision of state law regarding criminal records checks and 
     other background checks for prospective foster and adoptive 
     parents and employees of residential child care institutions, 
     unless such provisions prevent the application of the 
     requirements in this amendment. (Section 107(b))
     House amendment
       The House Amendment follows the Senate amendment with 
     modifications. States would be required to provide, as a 
     component of their Title IV-E plan, procedures for criminal 
     records checks for any prospective foster or adoptive 
     parents, before the parents are finally approved for 
     placement of a child eligible for federal subsidies under 
     Title IV-E. In any case of a felony conviction for child 
     abuse or neglect, spousal abuse, crimes against children 
     (including child pornography), or crimes involving violence 
     (including rape, sexual assault, or homicide), approval could 
     not be granted. In any case of a felony conviction for 
     physical assault, battery, or a drug-related offense, 
     approval could not be granted if the felony was committed 
     within the past 5 years. States could opt out of this 
     provision through a written notification from the Governor to 
     the Secretary, or through state law enacted by the 
     legislature.


               8. Quality Standards for Out-of-home Care

     House bill
       No provision.
     Senate amendment
       As a component of their state Title IV-E plan, states would 
     be required to develop and implement standards to ensure that 
     children in foster care placements in public or private 
     agencies receive quality services that protect the safety and 
     health of children. The standards must be developed by 
     January 1, 1999. (Section 308)
     House amendment
       The House Amendment follows the Senate amendment. (Section 
     308)

                Title II. Adoption Promotion Provisions


                     9. Adoption Incentive Payments

     House bill
       The Secretary of Health and Human Services (HHS) would be 
     required to make adoption incentive payments to eligible 
     states for any adoptions of foster children in a given fiscal 
     year that exceed the number of such adoptions in a base year. 
     Adoption incentive payments would equal $4,000 for each 
     adoption of a foster child above the number in the base year, 
     plus an additional $2,000 for each adoption of a foster child 
     with special needs above the number in the base year (for a 
     total of $6,000 for each special needs adoption). For these 
     incentive payments, $15 million would be authorized for each 
     of fiscal years 1999 through 2003. The base year is the 
     previous year with the highest number of adoptions. Relevant 
     budget acts would be amended to require adjustments in 
     discretionary spending limits. (Section 4)
     Senate amendment
       The Senate amendment is similar to the House bill, except: 
     the Secretary would be authorized, rather than required, to 
     make adoption incentive payments; to be eligible to receive 
     incentive payments, states would be required to provide 
     health insurance coverage to any special needs child for whom 
     there is an adoption assistance agreement between a state and 
     the child's adoptive parents; adoption incentive payments 
     would equal $3,000 for each adoption of a foster child above 
     the base number, and an additional $3,000 for each adoption 
     of a foster child with special needs (total of $6,000 for 
     each special needs adoption); and the base number of 
     adoptions for determining adoption incentive payments would 
     be the average number of adoptions for the 3 most recent 
     fiscal years. (Section 201)
       Information required by this legislation would be supplied 
     through the Adoption and Foster Care Analysis and Reporting 
     System (AFCARS), to the extent available (see item 26).
     House amendment
       The House Amendment follows the House bill and the Senate 
     amendment. The Secretary of HHS would be required to make 
     adoption incentive payments to eligible states. An eligible 
     state is one in which adoptions of foster children in FY 1998 
     exceed the average number during FY 1995-FY

[[Page H10785]]

     1997 or, in FY 1999 and subsequent years, in which adoptions 
     of foster children are higher than in any previous fiscal 
     year after FY 1996. To be eligible to receive adoption 
     incentive payments for FY 2001 or FY 2002, states would be 
     required to provide health insurance coverage to any special 
     needs child for whom there is an adoption assistance 
     agreement between a state and the child's adoptive parents. 
     Adoption incentive payments would equal $4,000 for each 
     adoption of a foster child above the base number, and an 
     additional $2,000 for each adoption of a foster child with 
     special needs (for a total of $6,000 for each special needs 
     adoption). For these incentive payments, $20 million would be 
     authorized to be appropriated for each of FYs 1999 through 
     2003, and discretionary budget caps would be adjusted to 
     accommodate this additional spending. (Section 201)


              10. Technical Assistance to Promote Adoption

     House bill
       HHS would be authorized to provide technical assistance to 
     states and localities to promote adoption for foster 
     children, including: guidelines for expediting termination of 
     parental rights; encouraged use of concurrent planning; 
     specialized units and expertise in moving children toward 
     adoption; risk assessment tools for early identification of 
     children who would be at risk of harm if returned home; 
     encouraged use of fast tracking for children under age 1 into 
     pre-adoptive placements; and programs to place children into 
     pre-adoptive placements prior to termination of parental 
     rights
       For technical assistance, $10 million would be authorized 
     for each of fiscal years 1998-2000. (Section 12)
     Senate amendment
       HHS would be required to provide technical assistance, upon 
     request, to help states and localities reach their targets 
     for increased numbers of adoptions. No authorization of 
     appropriations would be included. (Section 201)
     House amendment
       The House Amendment follows the House bill, except HHS 
     would be required to use half of funds appropriated for 
     technical assistance to the courts. (Section 201)


11. Eligibility for Adoption Assistance in Cases of Dissolved Adoptions

     House bill
       No provision.
     Senate amendment
       Children with special needs who had previously been 
     eligible for federally subsidized adoption assistance under 
     Title IV-E, and who again become available for adoption 
     because of the dissolution of their adoption or death of 
     their adoptive parents, would continue to be eligible for 
     federally subsidized adoption assistance under Title IV-E in 
     a subsequent adoption. (Section 307(a)) This provision would 
     only apply to children who become available for adoption due 
     to the dissolution of their previous adoption or the death of 
     their adoptive parents, and whose subsequent adoption occurs 
     on or after October 1, 1997. (Section 307(b))
     House amendment
       The House Amendment follows the Senate bill with minor 
     differences in wording. (Section 307)


      12. Health Care Coverage for Special Needs Adopted Children

     House bill
       No provision.
     Senate amendment
       As a component of their state Title IV-E plans, states 
     would be required to provide health insurance coverage for 
     any child determined to be a child with special needs, for 
     whom there is an adoption assistance agreement between the 
     state and the adoptive parents, and who the state has 
     determined could not be placed for adoption without medical 
     assistance because the child has special needs for medical or 
     rehabilitative care. In addition: such health insurance 
     coverage could be provided through one or more state medical 
     assistance program; the state would ensure that medical 
     benefits, including mental health benefits, would be of the 
     same type and kind as those provided for children by the 
     state under Medicaid; if the state provides such health 
     insurance coverage through a program other than Medicaid, and 
     the state exceeds its funding for services under such 
     program, then any such child would be deemed to be Title IV-
     E-eligible for purposes of Medicaid; and in determining cost-
     sharing requirements, the state would be required to take 
     into consideration the circumstances of the adoptive parents 
     and the needs of the child. (Section 306)
     House amendment
       The House Amendment generally follows the Senate amendment. 
     The agreement makes clear that the state may choose to comply 
     with this provision by covering the child under Medicaid. 
     (Section 306)


                    13. Interjurisdictional Adoption

     House bill
       No provision.
     Senate amendment
       As a component of their state Title IV-E plan, states would 
     be required to provide that neither the state nor any other 
     entity in the state that receives federal funds and is 
     involved in adoption would delay or deny the adoptive 
     placement of a child on the basis of the geographic residence 
     of the adoptive parent or child. (Section 202(a))
       In addition, the Secretary of HHS would be required to 
     appoint an advisory panel to study interjurisdictional 
     adoption issues. The panel would submit a report to the 
     Secretary within 12 months of appointment, including 
     recommendations for improvements in interjurisdictional 
     adoptions. The Secretary would forward the report to Congress 
     and, if appropriate, make recommendations for legislation. 
     (Section 202(b))
     House amendment
       The House Amendment generally follows the Senate amendment. 
     As a component of their Title IV-E state plan, states would 
     be required to assure that the state would develop plans for 
     the effective use of cross-jurisdictional resources to 
     facilitate timely permanent placements for waiting children. 
     In addition, states would not be eligible for any Title IV-E 
     payment if the Secretary found that, after the date of 
     enactment, a state had denied or delayed the placement of a 
     child when an approved family was available outside the 
     jurisdiction with responsibility for handling the case of the 
     child, or denied to grant an opportunity for a fair hearing 
     to an individual whose allegation of a violation of this 
     provision was denied by the state or not acted upon with 
     reasonable promptness. (Sections 202(a) and (b)) It is the 
     intention of Congress that the best interests of children 
     remain the critical consideration in adoptive placement 
     decisions. Congress does not intend to interfere with the 
     ability of the Interstate Compact on the Placement of 
     Children to ensure safe and appropriate adoptive placements.
       The General Accounting Office (rather than HHS through an 
     advisory panel) would be required to study and report to 
     Congress on interjurisdictional adoption issues. (Section 
     202(b))

      Title III. System Accountability and Improvement Provisions


                        14. Permanency Hearings

     House bill
       States would be required to hold a first dispositional 
     hearing within 12 months of a childs placement, instead of 
     the current 18, and the name of the proceeding would be 
     changed to ``permanency'' hearing. The hearing's purpose 
     would be to determine the childs permanency plan, which could 
     include: returning home; referral for adoption and 
     termination of parental rights; guardianship; or another 
     planned, permanent arrangement, which could include the 
     custody of a fit and willing relative. (Section 5)
     Senate amendment
       States would be required to hold a first dispositional 
     hearing within 12 months of the date the child is considered 
     to have entered foster care, defined as the earlier of the 
     date of the first judicial hearing after the childs removal 
     or 30 days after the removal. The hearing would be renamed 
     ``permanency planning'' hearing, and its purpose would be to 
     determine the childs permanency plan, which could include: 
     returning home; being placed for adoption and the state would 
     file a petition to terminate parental rights; being referred 
     for legal guardianship; or in cases in which the state agency 
     has documented to the state court a compelling reason why 
     it would not be in the child's best interest to return 
     home, being referred for termination of parental rights, 
     being placed for adoption with a qualified relative or a 
     legal guardian, or being placed in another planned, 
     permanent living arrangement. (Section 302)
     House amendment
       The House Amendment follows the Senate amendment, except 
     the name of the proceeding is changed to a ``permanency'' 
     hearing rather than a ``permanency planning'' hearing. 
     (Section 302)


             15. Participation in Case Reviews and Hearings

     House bill
       Foster parents and relatives providing care for a child 
     would be given notice and an opportunity to be heard at any 
     review or hearing held with regard to the child. This 
     provision, however, must not be construed to make any foster 
     parent a party to such a review or hearing. (Section 6)
     Senate amendment
       Same as the House bill, except the Senate amendment: would 
     also apply to any pre-adoptive parent or any other individual 
     who has provided substitute care for the child; and would 
     make explicit that relative caretakers, pre-adoptive parents, 
     and other individuals who have cared for the child, in 
     addition to foster parents, would not be considered parties 
     to reviews or hearings solely on the basis of receiving 
     notice. (Section 105)
     House amendment
       The House Amendment follows the House bill and Senate 
     amendment, with minor modifications. Foster parents and 
     preadoptive parents or relatives providing care for a child 
     would be given notice and an opportunity to be heard at any 
     review or hearing held with regard to the child. This 
     provision must not be construed to make any foster parent, 
     preadoptive parent or relative a party to such a review or 
     hearing solely on the basis of receiving notice. (Section 
     104)


       16. Performance Measures for State Child Welfare Programs

     House bill
       The Secretary of HHS, in conjunction with the American 
     Public Welfare Association,

[[Page H10786]]

     the National Governors' Association, and child advocates, 
     would be required to develop outcome measures to assess state 
     child welfare programs and to rate state performance 
     according to these measures. HHS would submit an annual 
     report to Congress on state performance; the report would 
     contain recommendations for improving state performance. The 
     first report would be due on May 1, 1999. Outcome measures 
     would include length of stay in foster care, number of foster 
     care placements, and number of adoptions. To the maximum 
     extent possible, the report would be developed from data 
     available from the Adoption and Foster Care Analysis and 
     Reporting System (AFCARS). (Section 10)
     Senate amendment
       The Secretary of HHS would be required to issue an annual 
     report containing ratings of state performance in protecting 
     children. The first report would be due on May 1, 1999. In 
     developing the performance measures, the Secretary would be 
     required to consult with the American Public Welfare 
     Association, the National Governors Association, the National 
     Conference of State Legislatures, and child welfare 
     advocates. The measures would track state performance over 
     time in the following categories: number of placements for 
     adoption and for foster care, and whether such placements 
     were with a relative or a guardian; number of children who 
     ``age out'' of foster care without having been adopted or 
     placed with a guardian; length of stay in foster care; length 
     of time between a child's availability for adoption and 
     actual adoption; number of deaths and substantiated cases of 
     child abuse or neglect in foster care; and specific steps 
     taken by the state to facilitate permanence for children. 
     (Section 203(a))
       In addition, the Secretary of HHS, in consultation with 
     state and local public child welfare officials and child 
     welfare advocates, would be required to develop and recommend 
     to Congress a performance-based incentive funding system for 
     payments under Titles IV-B and IV-E. The report would be due 
     no later than 6 months after enactment. (Section 203(b)) 
     Information required by this legislation would be supplied 
     through the Adoption and Foster Care Analysis and Reporting 
     System (AFCARS) to the extent the information is available 
     through AFCARS (see item 26).
     House amendment
       The House Amendment follows the House bill and the Senate 
     amendment, with modifications. The Secretary of HHS, in 
     conjunction with Governors, state legislatures, state and 
     local public officials responsible for administering child 
     welfare programs, and child advocates, would be required to 
     develop outcome measures to assess state child welfare 
     programs and to rate state performance according to these 
     measures. HHS would submit an annual report to Congress on 
     state performance, with recommendations for improving state 
     performance; the first report would be due on May 1, 1999. 
     Outcome measures would include length of stay in foster care, 
     number of foster care placements, and number of adoptions, 
     and, to the maximum extent possible, would be developed from 
     data available from the Adoption and Foster Care Analysis and 
     Reporting System (AFCARS). (Section 203(a))
       In addition, the Secretary of HHS, in consultation with 
     state and local public child welfare officials and child 
     welfare advocates, would be required to develop and recommend 
     to Congress a performance-based incentive funding system for 
     payments under Titles IV-B and IV-E. No later than 6 months 
     after enactment, the Secretary would submit a progress report 
     on the feasibility, timetable, and consultation process for 
     conducting a study, with a final report due within 15 months 
     of enactment. The report may include other recommendations 
     for restructuring the program and for making payments to 
     states under Titles IV-B and IV-E. (Section 203(b))


                    17. Child Welfare Demonstrations

     House bill
       The number of child welfare demonstrations would be 
     increased from 10 to 15. At least one of the additional 
     demonstrations would have to address the issue of kinship 
     care. (Section 11)
     Senate amendment
       The current law limitation on the number of demonstrations 
     that HHS could approve would be eliminated. Demonstrations 
     would have to be designed to achieve one or more of the 
     following goals: reducing a backlog of children in long-term 
     foster care or awaiting adoptive placement; ensuring an 
     adoptive placement for a child no later than 1 year after the 
     child enters foster care; identifying and addressing barriers 
     that result in delays to adoptive placements for children in 
     foster care; identifying and addressing parental substance 
     abuse problems that endanger children and result in foster 
     care placement, including placement of children and parents 
     together in residential treatment facilities that are 
     specifically designed to serve parents and children together 
     to promote family reunification; overcoming barriers to the 
     adoption of children with special needs resulting from a lack 
     of health insurance coverage for such children; and any other 
     goal that the Secretary has already approved on the date 
     of enactment, or, after the date of enactment, specifies 
     by regulation.
       In considering applications for waivers from states in 
     which there has been a court order determining a state's 
     failure to comply with provisions of Titles IV-B or IV-E or 
     the Constitution, the Secretary would be required to consider 
     the effect of the waiver on the terms and conditions of the 
     court order. (Section 301(a)) This provision would not be 
     construed to affect the terms and conditions of any 
     demonstrations that had been approved as of the date of 
     enactment. (Section 301(b))
     House amendment
       The House Amendment follows the House bill and the Senate 
     amendment, with modifications. The Secretary would be 
     authorized to conduct demonstrations that the Secretary finds 
     are likely to promote the objectives of Title IV-B or IV-E. 
     The Secretary would be authorized to approve no more than 10 
     such demonstrations in each of FYs 1998 through 2002. If 
     appropriate applications were submitted, the Secretary would 
     be required to consider applications designed to identify and 
     address barriers that result in delays to adoptive placements 
     for foster children; identify and address parental substance 
     abuse problems that endanger children and result in their 
     placement in foster care, including through placement of 
     children and parents together in residential treatment 
     facilities that are specifically designed to serve parents 
     and children together to promote family reunification; and to 
     address kinship care. In addition, waivers could be approved 
     only for those states which provide health insurance coverage 
     to any child with special needs for whom there is in effect 
     an adoption assistance agreement between a state and an 
     adoptive parent or parents. The Secretary may waive the 
     current law requirement that demonstrations end after 5 
     years. In approving demonstrations, the Secretary shall 
     consider the effect of the demonstration on any court orders 
     in the state for violations of federal requirements under 
     Titles IV-B or IV-E or the U.S. Constitution. (Section 301)

                    Title IV. Additional Provisions


  18. Reauthorization and Expansion of the Family Preservation Program

     House bill
       No provision.
     Senate amendment
       The family preservation and family support program under 
     Title IV-B, Subpart 2, would be reauthorized through FY2001, 
     at the following levels: $275 million in FY1999; $295 million 
     in FY2000; and $305 million in FY2001. As under current law, 
     these are capped entitlement funding levels. Existing 
     allocation formula provisions, including a 1 percent reserve 
     for Indian tribes, would remain intact. Set-asides for court 
     improvement grants and for evaluation and research would also 
     be reauthorized. (Section 305(a))
       States would be required to devote significant portions of 
     their expenditures, after spending no more than 10 percent of 
     their allotment for administrative costs, to each of the 
     following four categories of services: community-based family 
     support services, family preservation services, time-limited 
     family reunification services, and adoption promotion and 
     support services.
       Time-limited family reunification services would be defined 
     as services and activities provided to children (and their 
     parents) who have been removed from home and placed in foster 
     care, for no longer than 15 months beginning on the date of 
     their removal from home, to facilitate the child's safe and 
     appropriate reunification with the family. Such services and 
     activities include counseling, substance abuse treatment, 
     mental health services, assistance to address domestic 
     violence, and transportation. Adoption promotion and support 
     services would be defined as services and activities designed 
     to encourage more adoptions out of the foster care system 
     when adoptions promote the best interests of children.
       Subpart 2 of Title IV-B would be renamed ``Promoting 
     Adoptive, Safe, and Stable Families.'' (Section 305(b)) State 
     plans under Subpart 2 would be required to contain assurances 
     that in administering and conducting service programs, the 
     safety of the children to be served would be of paramount 
     concern. Additional references to child safety would be added 
     to the statute. (Section 305(c)) Maintenance of effort 
     provisions in current law would be clarified to define 
     nonfederal funds as meaning state funds, or at the option of 
     the state, state and local funds. This provision would take 
     effect as if included in the Omnibus Budget Reconciliation 
     Act of 1993. (Section 305(d))
     House amendment
       The House Amendment follows the Senate amendment, except 
     specific examples of adoption promotion and support services 
     would be deleted and time-limited family reunification 
     services are limited to 15 months from the date the child 
     enters foster care. The program would be renamed ``Promoting 
     Safe and Stable Families.'' (Section 305)


           19. Report on Substance Abuse and Child Protection

     House bill
       The Secretary of HHS would be required to submit a report 
     to the Committees on Ways and Means and Finance on the 
     problem of substance abuse in the child welfare population, 
     services provided to parents who abuse substances, and the 
     outcomes of such services. This report would be based on 
     information from the Substance Abuse and Mental Health 
     Services Administration and the Administration for Children 
     and Families within HHS, and would be due within 1 year

[[Page H10787]]

     of enactment. The report would include recommendations for 
     legislation. (Section 13)
     Senate amendment
       No provision.
     House amendment
       The House Amendment follows the House bill. (Section 405)


                        20. Kinship Care Report

     House bill
       The Secretary of HHS would be required to convene an 
     advisory panel on kinship care no later than March 1, 1998. 
     By the same date, the Secretary would submit an initial 
     report to the advisory panel on the extent to which foster 
     children are placed with relatives. The advisory panel would 
     review the Secretary's initial report and submit comments by 
     July 1, 1998. Based on these comments and other information, 
     the Secretary would submit a final report, by November 1, 
     1998, to the Committees on Ways and Means and Finance, 
     containing recommendations. (Section 8)
     Senate amendment
       Same as the House bill with slight differences in data to 
     be collected. (Section 303)
     House amendment
       The House Amendment follows the Senate amendment, except 
     the dates are changed so that the Secretary would be required 
     to convene the advisory panel and submit an initial report to 
     the advisory panel no later than June 1, 1998. The advisory 
     panel would submit comments to the Secretary no later than 
     October 1, 1998, and the Secretary would report to Congress 
     no later than June 1, 1999. (Section 303)


                   21. Federal Parent Locator Service

     House bill
       Child welfare agencies would be authorized to use the 
     Federal Parent Locator Service to assist in locating absent 
     parents. (Section 9)
     Senate amendment
       Same as the House bill with minor differences in wording. 
     (Section 106)
     House amendment
       The House Amendment follows the Senate amendment. (Section 
     105)


            22. Eligibility for Independent Living Services

     House bill
       The primary target population for independent living 
     services would be revised to include children who are no 
     longer eligible for foster care subsidies under Title IV-E 
     because they have accumulated assets of up to $5,000. 
     (Section 14)
     Senate amendment
       Same as the House bill. (Section 304)
     House amendment
       The House Amendment follows the House bill and the Senate 
     amendment.


                        23. Standby Guardianship

     House bill
       It would be the sense of Congress that states should have 
     laws and procedures that would permit a parent who is 
     chronically ill or near death to designate a standby guardian 
     for their minor child without surrendering their own parental 
     rights. The standby guardians authority would take effect 
     upon the parents death, the onset of mental incapacity of the 
     parent, or the physical debilitation and consent of the 
     parent. (Section 18)
     Senate amendment
       Same as House bill. (Section 403)
     House amendment
       The House Amendment follows the House bill and the Senate 
     amendment.


                24. Purchase of American-made Equipment

     House bill
       It would be the sense of Congress that, to the greatest 
     extent possible, all equipment and products purchased with 
     funds provided under the Adoption Promotion Act should be 
     American-made. (Section 16)
     Senate amendment
       No provision.
     House amendment
       The House Amendment follows the House bill with a change to 
     reflect the name of the bill. (Section 406)


                25. Preservation of Reasonable Parenting

     House bill
       No provision.
     Senate amendment
       Specifies that nothing in this legislation is intended to 
     disrupt the family unnecessarily or intrude inappropriately 
     into family life, to prohibit the use of reasonable methods 
     of parental discipline, or to prescribe a particular method 
     of parenting. (Section 401)
     House amendment
       The House Amendment follows the Senate amendment. (Section 
     401)


    26. Use of Data from the Adoption and Foster Care Analysis and 
                       Reporting System (AFCARS)

     House bill
       No provision.
     Senate amendment
       Any information required to be reported by this legislation 
     would be supplied through AFCARS to the extent such 
     information is available in AFCARS. The Secretary would be 
     required to modify the AFCARS regulations if necessary to 
     allow states to obtain data required by this legislation. 
     (Section 402)
     House amendment
       The House Amendment follows the Senate amendment. (Section 
     402)


              27. Temporary Reduction in Contingency Fund

     House bill
       No provision.
     Senate amendment
       The federal matching rate under Medicaid for state 
     expenditures related to skilled professional medical 
     personnel would be reduced to 73%. (Section 405)
     House amendment
       Neither the House bill nor the Senate amendment was 
     followed. Rather, the $2 billion federal Contingency Fund for 
     the Temporary Assistance for Needy Families (TANF) program, 
     created by the 1996 welfare reform law (P.L. 104-193), would 
     be reduced by a total of $40 million in outlays over the 
     period 1998-2002. (Section 404)

                        Title V. Effective Dates


                          28. Effective Dates

     House bill
       October 1, 1997. If the Secretary determines that states 
     need to enact legislation to comply with state plan 
     requirements imposed by this legislation, a state plan would 
     not be considered out of compliance solely because it fails 
     to meet these requirements until the first day of the 
     calendar quarter beginning after the close of the next 
     regular session of the state legislature. In states with a 2-
     year legislative session, each year would be deemed a 
     separate session. (Section 15)
     Senate amendment
       Same as House bill, except for provisions dealing with 
     termination of parental rights (see item 5), disrupted 
     adoptions (see item 11), and the definition of nonfederal 
     funds under family preservation (see item 18). (Section 501)
     House amendment
       The House Amendment follows the House bill and Senate 
     amendment, with a modification to change October 1, 1997, to 
     the date of enactment. (Section 501)

  Mrs. KENNELLY of Connecticut. Mr. Speaker, I yield myself such time 
as I may consume.
  Mr. Speaker, first let me thank the gentleman from Florida, Mr. Clay 
Shaw, the subcommittee chair with jurisdiction over this bill, for his 
incredible support, his patience, and his willingness to work alongside 
the gentleman from Michigan, Mr. Camp, and myself to make sure that 
this day came about. I really appreciate what he has done. His 
leadership has been outstanding. I thank him very much.
  I also want to say on the floor today what a delight it has been to 
work with the gentleman from Michigan, Mr. Dave Camp. He truly 
intimately, personally understood what this bill was about. He 
personally cared about the children of America.
  The past week or so as we were having the struggle to see if the 
Senate would in fact take up this bill, he daily went to see his Senate 
friends, and sometimes I wondered if they were his friends, but those 
that were working on this bill, trying to tell them how important it 
was that we pass this bill before this session ended.
  The reason for that, Mr. Speaker, was this past April the House took 
the important step toward protecting children and promoting adoption. 
Today we can finish that job by sending to the President this bill, an 
amended version of the same legislation that we passed in April.
  As I said to the Senators on the finance committee a little over a 
month ago, I could not understand how we could go home to our loving 
families for the holidays, for Thanksgiving and Christmas, and not act 
upon this bill, because this bill is about children of America who do 
not have safe, loving, and permanent homes. If we did not act upon this 
bill they would not have the hope of safe, loving, permanent homes.
  This legislation we can all agree on is putting children on a fast 
track from foster care to safe and loving and permanent homes. This is 
what this is all about.
  Before I continue I also want to thank the gentleman from Michigan 
[Mr. Levin], the ranking member, the democratic ranking member of the 
subcommittee, for being so supportive of this legislation. Also, one of 
the reasons we have reached this point is that our First Lady, Mrs. 
Hillary Clinton, was incredibly supportive of this effort, to the point 
that she went one on one on one to the various members of the Senate 
who really wanted this legislation, wanted it as badly, I think, as we 
did, but they wanted a perfect piece of legislation.
  What the gentleman from Michigan, Mr. David Camp and I realized is 
that at this point in time we could not do a perfect piece of 
legislation, but what we could do was a very good piece of legislation. 
Mrs. Clinton understood that we were beginning down the path

[[Page H10788]]

of giving children safe, permanent, loving homes. She was there with us 
lobbying on behalf of the children of the United States of America, 
urging, urging and pleading that we pass this legislation now.
  When we think about a child who is 3 years old, and the fact that 
they can spend 18 months in a foster care home and be returned to their 
home that is not a good home, and then returned to another foster care 
home, this is their life. For a child, this is something that we should 
not do to them. Mrs. Clinton understood it, the gentleman from Florida 
[Mr. Shaw] understood it, the gentleman from Michigan [Mr. Camp] and I 
understood it. That is where we are today.
  This legislation is very similar to that that we passed in April by 
416 votes to 5. The focus remains on providing permanency and 
protection for foster care children. Like the original House-passed 
adoption bill, this legislation includes financial bonuses for States 
and increases the number of children leaving foster care for adoption, 
and requires States to expedite permanency hearings for children in 
foster care.
  Also, like the House bill, this measure clarifies when children 
should not be returned home, such as, and I cannot believe I am saying 
these words, but the fact of the matter happens, such as when torture 
or sexual abuse or chronic physical abuse is occurring in that home, no 
child should have to remain in that home.
  This might sound like common sense, but we told the States about 15 
years ago to make reasonable efforts to reunify families, without 
telling them exactly what we meant by reasonable. Unfortunately, in 
practice, reasonable efforts became every effort, putting a child at 
risk. So we are now telling States there are times when returning a 
child home presents too great a risk to that child's safety, and that 
is not a risk that we are willing to take.
  The legislation also requires States to expedite the termination of 
parental rights when reunifying the family is not possible. This will 
eliminate one more barrier to adoption. There are also a few additions 
to the original House-passed legislation, including the reauthorization 
of the family preservation program, which has been amended to place a 
greater emphasis on adoption services when returning children to their 
birth families, and when that is not possible, we are very clear in 
defining what we mean by reasonable efforts.
  The National Governors Association has already expressed its strong 
support for reauthorizing this program, saying the ability of States to 
tailor these funds to particular needs of the community have made this 
particularly a valuable program. Furthermore, this legislation includes 
a Senate provision ensuring that special needs children with severe 
medical problems will have continued access to health coverage, when 
they are in foster care or in the process of adoption.
  Mr. Speaker, this legislation will not eliminate child abuse or 
guarantee a permanent home for every child, but it will take a 
significant first step forward on the road to providing protection and 
permanency for our Nation's abused, neglected, and sometimes forgotten 
children. I urge passage of this measure.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SHAW. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Michigan [Mr. Camp], the coauthor of this legislation.
  Mr. CAMP. Mr. Speaker, I thank the gentleman from Florida [Mr. Shaw], 
the chairman, for yielding time to me. Without his steadfast support, 
we would not be on the floor with this adoption bill today. He has been 
every bit a chairman, has been very much involved with this process, 
and I very much want to thank him for his efforts in bringing this to a 
reality.
  I also want to thank my coauthor, the gentlewoman from Connecticut, 
Mrs. Barbara Kennelly, who has also been there every step of the way, 
and I believe her testimony before the Senate, where she implored them 
to pass a bill to help children before we go home for the holidays to 
our own loving families, was a turning point in the negotiation; and 
also the ranking member, the gentleman from Michigan, Mr. Sander Levin, 
for his support and effort in this area as well. The administration, we 
worked with them as well, and this has been a bipartisan bill. I think 
that is one of the reasons why we are on the floor today.
  I think today is a great day for our Nation's foster and adoptive 
children. Today is the day that Congress improves our foster care laws 
and eases the pathway for adoption. Since 1980, foster care children 
have entered a system that has often worked against them, making foster 
care a permanent answer instead of a temporary solution to their 
problems.
  In 1980 Congress enacted the Adoption Assistance and Child Welfare 
Act, which sought to improve the foster care system. The 1980 law, 
while well-intended, has created a system where nearly half a million 
children currently reside in foster care. Many remain in the system for 
more than 2 years, which is a lifetime for a child. This legislation, 
however, is not about numbers and statistics, it is about children and 
families.
  For a child of any age, 2 years in foster care is far too long. It is 
2 years of uncertainty, 2 years of not knowing where their next home 
will be, or not knowing the love of a parent. This legislation makes 
several changes that will ensure our children grow up in the sanctuary 
of a permanent, loving home instead of a temporary shelter.
  First, we make the health and safety of the child of paramount 
importance in any decision affecting our children. No child should be 
returned to a dangerous environment where they may face continued abuse 
or even death. Our bill makes sure the child's health and safety are 
taken into account in that decision.
  We also clarify the circumstances under which States are not required 
to pursue reasonable efforts. Under the bill, States would not be 
required to pursue reasonable efforts if a child had been abandoned, 
tortured, chronically or sexually abused, or if the parents had 
murdered a sibling.
  Second, we allow States to conduct what is known as concurrent 
planning, which allows the State to make permanency arrangements for 
adoption while attempts to reunite the family are made. Many children 
remain in foster care so long because States fail to make arrangements 
for the child should reunification efforts fail.
  Third, we provide incentive payments to States that quickly find 
permanent, loving homes. States will receive incentive payments of 
$4,000 for each adoption and $6,000 for special needs adoptions. From 
the beginning, Republicans and Democrats, both House and Senate, have 
worked together on behalf of our Nation's children. I have no doubt 
that the commitment to helping those children will continue until this 
bill is signed into law.
  We are on the brink of a significant accomplishment. It is our 
children who are the beneficiaries. This bill will ensure that a 
permanent, loving home is within the reach of every child. In the eyes 
of every child, we see the boundless possibilities for our future. No 
child should grow up without a loving home. But in those instances 
where changes must be made, we must have a system that works on behalf 
of the child, not against them.
  Again, I want to thank the chairman of the subcommittee for his 
efforts, and my coauthor, the gentlewoman from Connecticut, Mrs. 
Barbara Kennelly, for bringing this bill to the floor.
  Mrs. KENNELLY of Connecticut. Mr. Speaker, I yield 3 minutes to the 
gentleman from Michigan [Mr. Levin], the ranking member on the 
Subcommittee on Human Resources of the Committee on Ways and Means,
  Mr. LEVIN. Mr. Speaker, I thank the gentlewoman for yielding time to 
me.
  Mr. Speaker, I offer congratulations to the gentleman from Michigan, 
Mr. David Camp, and the gentleman from Florida, Mr. Clay Shaw, the 
chairman of the subcommittee. The gentlewoman from Connecticut [Mrs. 
Kennelly] will some day in the next year or so be leaving this 
institution, I hope for another one. But it is interesting how her 
energy has been unflagging, as has that of the gentleman from Michigan 
[Mr. Camp]. Without their enterprise, this bill would not be in the 
process of enactment. I have enjoyed, again, working with the chairman 
of the committee on this important measure.

[[Page H10789]]

  I would also like to pay tribute to the administration for all of its 
dedication and its energy, as well as to our staff, to all of the staff 
who worked so hard on this.

                              {time}  1100

  The big winners today are obviously the tens of thousands of children 
who are in the foster care system who need to move on into a permanent 
setting.
  I want to, though, say just a word about other implications of this 
legislation. I think it reflects the fact that, indeed, in certain 
vital areas it is critical that there be a constructive partnership 
between the Federal Government and State and local government. We often 
here get hung up in theoretical battles about who should do what. Often 
the answer is working together on the Federal, State, and local levels. 
We have in this bill certain roles for the Federal Government, not only 
funding, but a scorecard. And this indicates that we need to do this 
together.
  Second, I think this bill shows that the wild swings of the pendulum 
in this area are really unfortunate. In my years on the committee, we 
have been arguing which is better, family preservation or reunification 
or adoption. I think what this bill says is kind of, get on with it. 
Let us do what is right for the child, and what is right for the child 
will depend on each particular case. But do not tarry. We should make a 
decision.
  One last point. The funding for this comes from a slight deviation 
from the contingency fund, or diversion. And we have discussed this. 
And as I have indicated to the gentleman from Florida [Mr. Shaw], it is 
my hope that next year we will be able to look at the contingency fund 
in welfare reform to be sure there is adequate funding. It was 
critical, though, that we move ahead this year. I am pleased to have 
been a small part of it.
  Again, I want to pay tribute to the gentleman from Michigan [Mr. 
Camp], to the gentlewoman from Connecticut [Mrs. Kennelly] and to the 
gentleman from Florida [Mr. Shaw] for all of their work.
  Mr. SHAW. Mr. Speaker, I yield 3 minutes to the gentlewoman from Ohio 
[Ms. Pryce], who has been very active in this area of adoption on both 
the floor and since she has come to the Congress.
  Ms. PRYCE of Ohio. Mr. Speaker, I thank the gentleman from Florida 
[Mr. Shaw] for yielding me the time.
  I rise in strong support of the bipartisan Adoption Promotion Act. I 
want to thank my colleagues, especially the gentleman from Florida [Mr. 
Shaw], the gentleman from Michigan [Mr. Camp] and the gentlewoman from 
Connecticut [Mrs. Kennelly] for all their hard work and dedication on 
this issue, and also my colleague from Ohio in the other body Senator 
DeWine.
  Last April, the House passed this bill by an overwhelming vote of 416 
to 5. Since then, we have been patiently waiting for the Senate to 
follow our lead. That day has come. With the passage of this bill 
today, we will move one step closer to giving the hope of permanency to 
children in need of a stable, loving home.
  Mr. Speaker, every child in America deserves a family and home filled 
with love and security, free from abuse, free from neglect or the 
threat of violence. The sad truth is that many children do not enjoy 
that most basic human right. Of nearly half a million children in 
foster care, only about 17,000 have entered permanent adoptive homes. 
What is more astonishing is that, during each of the past 10 years, 
more children have entered the foster care system than have left it.
  This legislation will speed the adoption process, especially for 
those children with the greatest need, those who have been abused or 
neglected. In addition, we will elevate children's rights so that a 
child's health and safety will be of paramount concern under the law.
  Mr. Speaker, this is one of the most important changes we can make. 
Because too often a foster child's best interest, along with common 
sense, are abandoned as courts and welfare agencies work overtime to 
put children back in dangerous situations in the name of family 
reunification. This bill corrects the perverse incentives of the 
current system that gives States more money if they have more children 
in foster care. That is just crazy. Now we will provide States more 
money if they reduce their foster care caseload by placing kids in 
permanent, stable homes.
  Congress and the Federal Government cannot legislate compassion and 
love for all the Nation's children, but through this legislation we can 
take reasonable steps to promote family stability and to give children, 
especially foster children, a fighting chance to see the loving homes 
that they deserve.
  Mr. Speaker, in the interest of thousands of children who need a true 
family to love and protect them, I urge my colleagues to support this 
most important legislation. Let us do it for the children.
  Mrs. KENNELLY of Connecticut. Mr. Speaker, I yield 4 minutes to the 
gentleman from North Dakota [Mr. Pomeroy].
  Mr. POMEROY. Mr. Speaker, it is very, very rare to sit as a Member of 
this body and to feel so strongly about the good of the legislation 
before us. I just want to go ``yes.'' But that is what I feel on this 
legislation. And for all we get up and gasp, one Member to another, 
about how we have been working together and all that, this time I mean 
it, the gentleman from Michigan [Mr. Camp] and the gentlewoman from 
Connecticut [Mrs. Kennelly], I will forever appreciate and never forget 
how good their work has been. It is just fabulous.
  It is an emotional topic to me because I have adopted two children 
out of foster care. We got Katherine at 3\1/2\ months and Scott at 4\1/
2\ months. They were babies. We could get on with the business of being 
a family. And we know that from that comes not just emotional 
dimensions of stability and security and self-esteem, but actually 
neurological development issues that are so critical to the ultimate 
opportunity and fate and lives that these little beings will have.
  We face the reality today that there are tens of thousands of 
precious lives out there in a state of limbo, unable to know where they 
are going to end up, unable to attach to the loving care-givers that 
they are spending their days with because they do not know whether they 
are not going to be with that care-giver anymore.
  In some instances, abused children live daily with the fear that they 
may be sent back by some people in some process they do not begin to 
understand into a home where the abuse occurred in the first place. 
They do not even go to bed at night with the sense of personal safety 
and security. This legislation offers an opportunity to change that.
  We have on the books a bill that requires reasonable efforts to 
achieve family reunification, and that has sent a mixed signal from 
this body to those on the front lines trying to make this 
excruciatingly difficult system work. It is time we help clarify the 
primary objective. And the primary objective comes down to something 
terribly, terribly simple: Children need families. And that needs to be 
the overriding goal.
  Now, as a parent, I can tell my colleagues that families need 
children as an also urgent part of this process. But it is the 
children's interest that is clearly before us and advanced by this 
legislation. It does so significantly. First of all, it addresses that 
safety issue. If they are from an abusive home or where there is a 
question in terms of their safety, they will never be sent back there 
again, they will never be subject to that threat again.
  Second, it brings resolution to the process. For those that are on 
their fourth or fifth or sixth foster home, while some social worker 
works to try and make an adult out of a parent whose immaturity has 
made parenting skills impossible, we bring resolution to that process; 
we put this child on track toward a permanent home so they can get on 
with their development within 1 year.
  And finally, we provide the resources to help the States in this 
regard: $10 million annually over the next 3 years for technical 
assistance, $208 million over the next 5 years to fund the incentives 
for States so they might take the steps to get this done.
  I thank the gentleman from Michigan [Mr. Camp], the gentleman from 
Florida [Mr. Shaw]. I thank the gentleman from Michigan [Mr. Levin] and 
the gentlewoman from Connecticut [Mrs. Kennelly]. As they leave this

[[Page H10790]]

chamber at the end of this Congress, they will have many, many works of 
legislative achievement to look back upon. For my money, this one will 
be the hallmark. They have made a lasting contribution to the well-
beings of the children of this country and foster care this morning. 
And again, I thank them. And on behalf of the people of this country, I 
thank them for this good work.
  Mrs. KENNELLY of Connecticut. Mr. Speaker, I would like to wrap up 
this side of the aisle, and I yield myself such time as I may consume.
  Also, I want to thank the gentleman from North Dakota [Mr. Pomeroy] 
for that statement. He has been there. He has lived it. He has done it. 
And I thank him very much for coming here today and telling us about 
it.
  I also want to put on the Record the fact that Sister Josephine 
Murphy, director of St. Anne's Infant and Maternity Home in 
Hyattsville, MD, has been very, very helpful in bringing this piece of 
legislation forward. As the gentleman from North Dakota [Mr. Pomeroy] 
spoke from a permanent position, so did Sister Josephine tell us about 
her day-in, day-out work with children and the facts of the matter of 
one child is returned to an abusive home and how, in fact, that child 
knows how wrong that is and the suffering that is involved.
  Mr. Speaker, our foster care system is an extremely valuable safety 
net, and I want to emphasize that. The foster care parents across this 
country are doing valuable service for children who cannot stay in 
their own birth homes, and I salute them and thank them.
  What this bill is about really, though, is to have a child in a 
permanent home. And where that safety net is there in a foster care 
home, the child knows when the home is not permanent. When they go to 
school, they know that the home they are in is not a permanent home. 
And though they are glad to be there in the safety of that foster care 
home, what this bill does is bring forward a safe harbor, a place of 
permanency and love for this child.
  We have to state that the number of children in foster care has 
almost doubled over the last 12 years; 276,000 12 years ago, now twice 
that amount. And more than 40 percent of foster children stay in the 
system for more than 2 years. And when a child is 3 years old, 
obviously that is much too much. This legislation attempts to reverse 
this trend by placing greater emphasis on finding adoptive parents for 
children in foster care.
  The bill provides States with a financial incentive; $4,000 a child, 
$6,000 if it is a hard-to-place child. This legislation requires States 
to remove barriers to adoptions such as parental rights to children who 
will never return to their birth home.
  This does not mean we intend to end our Nation's policy of keeping 
families together. What this legislation leaves intact is a so-called 
reasonable effort requirement to help reunify families and reauthorize 
the preservation program for these families. But the bill does attempt 
to identify situations in which reunifying the family seems unwise or 
unlikely, such as when severe abuse is taking place.
  Let me quote one more time the Washington Post, who summed it up best 
when it said the bill ``puts a new and welcome emphasis on the 
children.''
  Mr. Speaker, I yield back the remainder of my time.
  Mr. SHAW. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, I think there are so many people who have been working 
on this legislation. The gentlewoman from Connecticut [Mrs. Kennelly] 
mentioned Sister Josephine Murphy, whose personal experience that she 
shared with us in such a dynamic way both at a press conference 
immediately preceding this bill coming to the floor, as well as before 
the committee. We had so many wonderful witnesses give testimony as to 
what is happening out there and the tragedy of foster care as opposed 
to getting people into adoption.
  I want to thank a few of the staff people, too: Casey Bevan, whose 
experience in this area has been invaluable to the committee. Deborah 
Colton, the chief of staff on the Democrat side of the subcommittee, 
has done a tremendous job of cooperation, as, of course, her boss, the 
gentleman from Michigan [Mr. Levin] has done a tremendous job, for 
which I am deeply appreciative; and, of course, Ron Haskins, who is the 
chief of staff on the Republican side and the subcommittee. To all of 
them, all of my colleagues know that we cannot function with good 
legislation without competent staff. The competence has been tremendous 
in this regard, and we certainly appreciate it.
  I want to close at this time, Mr. Speaker, in sharing with my 
colleagues an article that was in the Orlando Sentinel. I was in 
Orlando Monday night, spending the night, and Tuesday morning. The 
headline in one of the lead stories in the Orlando Sentinel was a 
colored picture of a baby who is designated as ``Disney's darling.'' 
The reason she was is that she was found in the restroom in the Magic 
Kingdom, actually in a toilet, where the mother had left this poor 
child. They had to give the child CPR. But I am pleased to tell my 
colleagues that this child is doing well. She is loved by the care she 
is receiving now in the hospital. Her mother is unknown, as, of course, 
her father is, too. She has been named by the people at the hospital as 
Baby Jasmine.
  I think the House should reflect a moment on the historic nature of 
what we are doing today. Baby Jasmine has a real good shot, in fact, I 
would say a probability at this point, partly because of this 
legislation, that Christmas of 1998 will find her with a real family, 
her permanent family, a loving family in which she will celebrate the 
Christmas holidays. And that is a wonderful thing to look forward to 
for Baby Jasmine, as well as thousands of other kids.
  So when we approach the holiday season next year, we will know that 
this vote, this legislation, has been responsible for placing so many 
of these kids in a permanent loving home.

                              {time}  1115

  I want to close with the words of a 3-year-old. I stated these words 
when the original bill came to the House floor, but I cannot think of 
any words that express the meaning of what we are doing today better 
than these words from a 3-year-old. In meeting her adoptive family, the 
first family that she had ever known in her 3 years, her first comment, 
standing in front of them with her hands on her hips, saying, ``Where 
have you been?'' ``Where have you been?''
  This bill is going to expedite this entire process and it is going to 
bring about the joy of adoption and the bonding of a real family to so 
many kids.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Miller of Florida). The question is on 
the motion offered by the gentleman from Florida [Mr. Shaw], that the 
House suspend the rules and agree to the resolution, House Resolution 
327.
  The question was taken.
  Mr. SHAW. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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