[Congressional Record Volume 149, Number 136 (Tuesday, September 30, 2003)]
[Senate]
[Pages S12195-S12197]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY (for himself, Ms. Landrieu, Mr. Bunning, Mr. 
        Rockefeller, Mr. Craig, Mr. Baucus, Mr. DeWine, Mr. Levin, Mr. 
        Inhofe, Mr. Nelson of Nebraska, Mrs. Lincoln, Mrs. Clinton, and 
        Mr. Jeffords):
  S. 1686. A bill to reauthorize the adoption incentive payments 
program under part E of title IV of the Social Security Act, and for 
other purposes; to the Committee on Finance.
  Mr. GRASSLEY. Mr. President, Senator Landrieu, Senator Bunning and I 
are happy to introduce the Adoption Promotion Act of 2003, a bill that 
would extend and improve the Adoption and Safe Families Act of 1997. 
Across the country there are thousands of children of all ages and 
needs who are waiting to be adopted into stable families. This 
legislation provides a reward to States that place an emphasis on 
finding loving homes for children who are in foster care.
  The Adoption and Safe Families Act of 1997 rewarded States with cash 
incentives for increasing the number of adoptions of children in foster 
care, concentrating on children with special needs. Adoption levels 
were on the rise before the introduction of this legislation, but grew 
even faster after implementation of the program. Studies project that 
an additional 34,000 children were adopted during the first 3 years of 
the program. Currently each of the 50 States, the District of Columbia, 
and Puerto Rico have received incentive payments from the increased 
number of adoptions. My home State of Iowa just received a payment of 
$524,000 because of its success in finding children in foster care 
permanent homes. The results are clear, adoption incentives are 
working.
  There are many people in this country who have opened their arms to 
children that do not fit the typical mold. The Lippert family of 
Council Bluffs, IA is just one example. Over the last 25 years, they 
have adopted 16 children, in addition to their two biological children. 
Their doors are still open to children in need. Within the next 6 
months their nest will become even larger; they have three teenage 
girls who are in the process of being adopted. All but one of these 
children have special needs, ranging from emotional to physical 
disabilities. None of these challenges have stopped the Lippert family 
from helping their children become successful members of the community. 
The Lippert family has given these children a chance to be part of a 
loving and permanent family, an opportunity they would otherwise not 
have had.
  But much remains to be done. While adoption incentives have helped 
states place a large number of children in families, there are still 
thousands of children without such luck. The incentive program helps to 
promote the needs of children for whom it is challenging to find an 
adoptive home. Take for example, children over the age of 9. The 
probability that these children will ever find a permanent home exceeds 
the probability they will be adopted into a loving family. This 
legislation adds an incentive for States to increase the number of 
older children adopted out of foster care.
  Adoption is a positive life-changing experience. My bill builds upon 
the success of the Adoption and Safe Families Act of 1997. It 
recognizes these successes and continues to challenge States to remove 
children from foster care and place them with a permanent family. 
Adoptions give children a loving home and families an opportunity to 
share their love with a child in need. I encourage the Senate to 
consider this important piece of legislation and continue to reward 
States that are working to place children in permanent homes.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1686

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Adoption Promotion Act of 
     2003''.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) In 1997, the Congress passed the Adoption and Safe 
     Families Act of 1997 to promote comprehensive child welfare 
     reform to ensure that consideration of children's safety is 
     paramount in child welfare decisions, and to provide a 
     greater sense of urgency to find every child a safe, 
     permanent home.
       (2) The Adoption and Safe Families Act of 1997 also created 
     the Adoption Incentives program, which authorizes incentive 
     payments to States to promote adoptions, with additional 
     incentives provided for the adoption of foster children with 
     special needs.
       (3) Since 1997, all States, the District of Columbia, and 
     Puerto Rico have qualified for incentive payments for their 
     work in promoting adoption of foster children.
       (4) Between 1997 and 2002, adoptions increased by 64 
     percent, and adoptions of children with special needs 
     increased by 63 percent; however, 542,000 children remain in 
     foster care, and 126,000 are eligible for adoption.
       (5) Although substantial progress has been made to promote 
     adoptions, attention should be focused on promoting adoption 
     of older children. Recent data suggest that half of the 
     children waiting to be adopted are age 9 or older.

[[Page S12196]]

     SEC. 3. REAUTHORIZATION OF ADOPTION INCENTIVE PAYMENTS 
                   PROGRAM.

       (a) In General.--Section 473A of the Social Security Act 
     (42 U.S.C. 673b) is amended--
       (1) in subsection (b)--
       (A) by striking paragraph (2) and inserting the following:
       ``(2)(A) 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; or
       ``(B) the number of older child adoptions in the State 
     during the fiscal year exceeds the base number of older child 
     adoptions for the State for the fiscal year;''.
       (B) in paragraph (4), by striking ``and 2002'' and 
     inserting ``through 2007''; and
       (C) in paragraph (5), by striking ``2002'' and inserting 
     ``2007'';
       (2) in subsection (c), by striking paragraph (2) and 
     inserting the following:
       ``(2) Determination of numbers of adoptions based on afcars 
     data.--The Secretary shall determine the numbers of foster 
     child adoptions, of special needs adoptions that are not 
     older child adoptions, and of older child adoptions in a 
     State during each of fiscal years 2002 through 2007, 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.'';
       (3) in subsection (d)(1)--
       (A) in subparagraph (A), by striking ``and'';
       (B) in subparagraph (B)--
       (i) by inserting ``that are not older child adoptions'' 
     after ``adoptions'' each place it appears; and
       (ii) by striking the period and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(C) $4,000, multiplied by the amount (if any) by which 
     the number of older child adoptions in the State during the 
     fiscal year exceeds the base number of older child adoptions 
     for the State for the fiscal year.'';
       (4) in subsection (g)--
       (A) in paragraph (3), by striking subparagraphs (A) and (B) 
     and inserting the following:
       ``(A) with respect to fiscal year 2003, the number of 
     foster child adoptions in the State in fiscal year 2002; 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 2002 and ends with the fiscal year 
     preceding that subsequent fiscal year.'';
       (B) in paragraph (4)--
       (i) in the paragraph heading, by inserting ``that are not 
     older child adoptions'' after ``adoptions''; and
       (ii) by striking subparagraphs (A) and (B) and inserting 
     the following:
       ``(A) with respect to fiscal year 2003, the number of 
     special needs adoptions that are not older child adoptions in 
     the State in fiscal year 2002; and
       ``(B) with respect to any subsequent fiscal year, the 
     number of special needs adoptions that are not older child 
     adoptions in the State in the fiscal year for which the 
     number is the greatest in the period that begins with fiscal 
     year 2002 and ends with the fiscal year preceding that 
     subsequent fiscal year.''; and
       (C) by adding at the end the following:
       ``(5) Base number of older child adoptions.--The term `base 
     number of older child adoptions for a State' means--
       ``(A) with respect to fiscal year 2003, the number of older 
     child adoptions in the State in fiscal year 2002; and
       ``(B) with respect to any subsequent fiscal year, the 
     number of older child adoptions in the State in the fiscal 
     year for which the number is the greatest in the period that 
     begins with fiscal year 2002 and ends with the fiscal year 
     preceding that subsequent fiscal year.
       ``(6) Older child adoptions.--The term `older child 
     adoptions' means the final adoption of a child who has 
     attained 9 years of age if--
       ``(A) at the time of the adoptive placement, the child was 
     in foster care under the supervision of the State; or
       ``(B) an adoption assistance agreement was in effect under 
     section 473 with respect to the child.'';
       (5) in subsection (h)--
       (A) in paragraph (1)--
       (i) in subparagraph (B), by striking ``and'';
       (ii) in subparagraph (C), by striking the period and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(D) $43,000,000 for each of fiscal years 2004 through 
     2008.''; and
       (B) in paragraph (2)--
       (i) by inserting ``, or under any other law for grants 
     under subsection (a),'' after ``(1)''; and
       (ii) by striking ``2003'' and inserting ``2008'';
       (6) in subsection (i)(4), by striking ``1998 through 2000'' 
     and inserting ``2004 through 2006''; and
       (7) by striking subsection (j).
       (b) Report on Adoption and Other Permanency Options for 
     Children in Foster Care.--Not later than October 1, 2004, the 
     Secretary of Health and Human Services shall submit to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate a report on State 
     efforts to promote adoption and other permanency options for 
     children in foster care, with special emphasis on older 
     children in foster care. In preparing this report, the 
     Secretary shall review State waiver programs and consult with 
     representatives from State governments, public and private 
     child welfare agencies, and child advocacy organizations to 
     identify promising approaches.

     SEC. 4. AUTHORITY TO IMPOSE PENALTIES FOR FAILURE TO SUBMIT 
                   AFCARS REPORT.

       Section 474 of the Social Security Act (42 U.S.C. 674) is 
     amended by adding at the end the following:
       ``(f)(1) If the Secretary finds that a State has failed to 
     submit to the Secretary data, as required by regulation, for 
     the data collection system implemented under section 479, the 
     Secretary shall, within 30 days after the date by which the 
     data was due to be so submitted, notify the State of the 
     failure and that payments to the State under this part will 
     be reduced if the State fails to submit the data, as so 
     required, within 6 months after the date the data was 
     originally due to be so submitted.
       ``(2) If the Secretary finds that the State has failed to 
     submit the data, as so required, by the end of the 6-month 
     period referred to in paragraph (1) of this subsection, then, 
     notwithstanding subsection (a) of this section and any 
     regulations promulgated under section 1123A(b)(3), the 
     Secretary shall reduce the amounts otherwise payable to the 
     State under this part, for each quarter ending in the 6-month 
     period (and each quarter ending in each subsequent 
     consecutively occurring 6-month period until the Secretary 
     finds that the State has submitted the data, as so required), 
     by--
       ``(A) \1/6\ of 1 percent of the total amount expended by 
     the State for administration of foster care activities under 
     the State plan approved under this part in the quarter so 
     ending, in the case of the 1st 6-month period during which 
     the failure continues; or
       ``(B) \1/4\ of 1 percent of the total amount so expended, 
     in the case of the 2nd or any subsequent such 6-month 
     period.''.

     SEC. 5. EFFECTIVE DATE.

        The amendments made by this Act shall take effect on 
     October 1, 2003.
  Mr. ROCKEFELLER. Mr. President, I am proud to join Senator Grassley 
and a bipartisan coalition in sponsoring the Adoption Promotion Act of 
2003. This legislation will reauthorize and expand on the adoption 
bonuses created as part of the 1997 Adoption and Safe Families Act.
  The Adoption and Safe Families Act stated clearly that a child's 
health and safety are paramount, and that every child deserves a 
permanent home. Key policy changes were made to promote permanency, 
including streamlining the process and creating incentives for 
adoption. Since 1997, the number of adoptions from foster care 
increased by 64 percent, and the number of adoptions of children with 
special needs increased by 63 percent. This is wonderful news for the 
children and families. But over 500,000 children are still in foster 
care, and 126,000 of those children have adoption as a goal.
  This legislation would reauthorize the existing adoption bonuses, and 
it would create a new bonus for children over the age of 9 who 
represent almost half of the children waiting for adoption. The 
Adoption Promotion Act is an important next step to improving our child 
welfare system.
  In West Virginia, over 900 children have been adopted from the foster 
care system since enactment of the Adoption and Safe Families Act. This 
is good news for the children and families, but many more children in 
my State and across the country are waiting for a safe, permanent home.
  Adoption is a wonderful event that changes a child's life and creates 
a special family. Today, in addition to introducing this legislation, 
the Congressional Adoption Caucus will celebrate its Angels in Adoption 
Award, including an award to a very special West Virginian, Millie 
Mairs, who has worked on adoption issues in my State for almost 30 
years at the West Virginia Children's Home Society. Her work has helped 
to change many lives.
  This legislation is key, but it is only part of the puzzle to 
improving our foster care system which, according to the findings of 
the Child and Family Service Reviews, needs to be strengthened. As more 
children move into adoption, especially older children, we must become 
more aware and respond to the needs for post-adoption services. I hope 
that future action on child welfare reform will be bipartisan, like the 
Adoption Promotion Act. It is encouraging to know that the Pew 
Commission on Children in Foster Care is working to develop 
recommendations regarding child welfare financing and the role of the 
courts in child welfare policy. Hopefully, these recommendations can 
help forge bipartisan consensus for future changes that will enhance 
the lives of our most vulnerable children, those in foster care.

[[Page S12197]]

  Mr. INHOFE. Mr. President, I rise today to join my colleagues in 
introducing this bill to reauthorize the Adoption Incentives Program.
  The Adoption Incentives Program was created in 1997 as a part of the 
Adoption and Safe Families Act to encourage and expedite adoptions for 
children in foster care.
  Under the current program, States are given incentive payments for 
increased adoptions of all foster children, as well as for adoptions of 
children with special needs. This reauthorization bill will continue 
that program, while offering new, targeted incentives for adoptions of 
older children.
  There is an overwhelming need for adoption of foster children. Over 
550,000 children are currently languishing in foster care in the United 
States. Of this number, more than 165,000 are children who will never 
be adopted.
  Only half of the children in foster care graduate from high school 
and only 11 percent of that number go to college. Within 1 year of 
leaving foster care, 49 percent of these young people are unemployed 
and within 3 years of leaving foster care, up to 45 percent have been 
arrested and almost 75 percent have been arrested at least once.
  Providing these children with a permanent, stable family helps them 
become successful, contributing members of society. I am proud to lend 
my support to this important legislation that will help give these 
young people a home.
  Mr. BUNNING. Mr. President, I would like the opportunity to talk for 
a few minutes with my colleague from Iowa about the important role of 
adoption and foster care. Today, I am proud to be supporting 
legislation that the Senator from Iowa is introducing to reauthorize 
the Adoption Incentive Program. This is an important program that 
encourages States to do all they can to find permanent homes for 
children in foster care.
  Mr. GRASSLEY. I appreciate that the Senator from Kentucky has worked 
so hard with me on the reauthorization of the Adoption Incentive 
Program. I also appreciate the lead the Senator took several months ago 
when he introduced the original legislation to reauthorize this 
program, which was based on the administration's proposal. This was an 
important step to help get the ball rolling on this program's 
reauthorization.
  Our legislation builds upon the Adoption Incentive Program created in 
the Adoption and Safe Family Act of 1997. This bill sets the 
authorization level for this program at $43 million for each of fiscal 
year 2004 through fiscal year 2008. Through this legislation, States 
would continue to be rewarded for all increased adoptions of children 
in foster care.
  States that earn incentive payments for increased adoptions of foster 
children would also continue to be rewarded for increased adoptions of 
special needs children. However, the special needs payment would be 
limited only to adoptions of special needs children who are under age 9 
at the time the adoption is finalized.
  Senator Bunning, as you well know, our bill would create a third 
incentive payment, for each increased adoption of all children in 
foster care who are age 9 or older at the time of adoption. This is 
important because children over the age of nine are less likely to find 
a permanent adoptive home. In fact, the probability that these children 
never find a permanent home exceeds the probability they will be 
adopted into a loving family.
  Mr. BUNNING. I am pleased that we are continuing the bonuses for 
States that increase the number of adoptions each year, along with 
keeping the additional incentive for adoptions of special needs 
children and providing a new incentive for States to focus on the 
adoptions of older children.
  I am proud to say that Kentucky has also done fairly well under the 
Adoption Incentive Program over the years, and I am glad we are 
continuing the program. From 1998 to 2001, Kentucky received $1.6 
million adoption incentives. For 2002, the Department of Health and 
Human Services recently announced that my State will receive $204,000 
in adoption incentives.
  Mr. GRASSLEY. My home State of Iowa and its child welfare program has 
also benefited from this program. Last year, Iowa received a payment of 
$524,000 because of its success in finding children in foster care, 
permanent homes. Our States' successes underscore the results of this 
program; adoption incentives are working.
  Mr. BUNNING. I am sure the Senator from Iowa will agree with me that 
we need to make it as easy as possible for loving families to either 
adopt or become foster parents for children in need. There is nothing 
more special than a family opening up their home to a child and 
providing a safe and supportive environment. This is why I have worked 
on adoption and foster care issues for so long in Congress.
  In fact, last year I was pleased that one of my foster care 
initiatives was passed as part of the 2002 economic stimulus bill. Many 
families who take in foster care children receive stipends from the 
placement agency which helps pay for food, clothes and other expenses.
  In the past, some of these stipends were tax-free for families, while 
others were taxable. I didn't feel that was fair, so my provision made 
all stipends that foster care families receive to be tax free. This 
provision corrected an inconsistency in the tax code that unfairly 
punished foster care families and the children for whom they care, and 
I was happy we could finally correct this problem.
  Mr. GRASSLEY. In the recent past, Congress has also taken some 
positive steps to promote adoption through tax credit. In 2001, as 
chairman of the Finance Committee, I extended and expanded two 
important provisions which provide tax relief for adoptive families.
  The 2001 tax bill ensured that neither adoption tax credit, nor the 
exclusion from income for qualified employer-paid adoption expenses 
expired. In addition, the amount of each of these benefits was 
doubled--i.e., from $5,000 to $10,000 per qualifying child. Finally, in 
the case of special needs adoptions, Congress eliminated expense 
reporting requirements thus ensuring that the families who take special 
needs children into their homes receive the maximum relief possible 
under these provisions, while minimizing their administrative burdens.
  Mr. BUNNING. I certainly agree with you that the adoption tax credits 
are good policy, and I am very familiar with them. In fact, back in 
1996, I worked as a Member of the Ways and Means Committee to pass the 
original legislation providing for the tax credits to help families 
afford to adopt children. We finally got this credit passed as part of 
the Small Business Job Protection Act which passed over seven years 
ago. I was very supportive of the provisions in the 2001 tax bill to 
expand these credits, but would like to take them one step further.
  Within the next couple of weeks, I will be introducing legislation to 
make these tax credits permanent. If we don't eliminate the sunset 
which was built into the tax bill, then the current maximum credit of 
$10,000 will be reduced back down to $5,000 in 2010. To me, this seems 
like a common-sense change that needs to be made.
  I introduced a similar bill in the 107th Congress, and I am hopeful 
that we can get this bill passed before the end of the 108th Congress.
  Mr. GRASSLEY. I look forward to working with you on this issue in the 
near future.
  Mr. BUNNING. Finally, I would like to say a few words about the 
importance of promoting interracial adoptions. In the past, many times 
there were barriers to families adopting minority children. This isn't 
fair to the family or the child. That is why in 1996, I pushed for 
legislation stopping discrimination against minority children in order 
to make it easier for them to move from foster care into a loving, 
permanent home.
  All of these initiatives are designed to help find permanent or 
temporary homes for our Nation's children. Today, we are taking another 
important step by reauthorizing the Adoption Incentive Program, and I 
hope that we can get this bill through the Senate and onto the 
President's desk soon.
  Mr. GRASSLEY. It is also my hope that we can get this bipartisan bill 
through Congress and allow it to become law. I would like to thank you, 
Senator Bunning, and the other members of the Senate who have worked so 
hard on this legislation.
                                 ______