[Congressional Record Volume 150, Number 138 (Tuesday, December 7, 2004)]
[Senate]
[Pages S11898-S11905]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. SMITH (for himself and Mr. Conrad):
S. 3029. A bill to amend the Internal Revenue Code of 1986 to
encourage guaranteed lifetime income payments from annuities and
similar payments of life insurance proceeds at dates later than death
by excluding from income a portion of such payments; to the Committee
on Finance.
Mr. SMITH. Mr. President, with over 77 million baby boomers beginning
to retire in 2008, a serious retirement challenge is looming in our
country. Moreover, with Americans living longer and a growing numbers
of retirees facing the challenge of managing their own retirement
savings, we need to provide them with better retirement options. In
response, I rise today to offer legislation aimed at assisting people
to maintain their financial independence and their standard of living
throughout their retirement by making it easier for them to secure a
steady income for life.
In recent years, the focus of the ``retirement security'' debate in
Congress has almost entirely been on the need to accumulate a nest egg
to fund retirement. Congress is doing much to encourage personal saving
and employer-provided retirement plans. I am proud of both our
successes and our continuing efforts in these areas. Encouraging
greater savings is an important step; however, it is not enough.
Unfortunately, there has been little attention paid to the retirement
income or ``payout'' phase of the retirement security equation. The
risk of outliving one's savings is one of the biggest problems facing
retirees. I have heard it said that Americans perceive the retirement
savings ``finish line'' to be the point of retirement. But retirement
is just the beginning of a very different kind of race, one of unknown
duration. If Americans are going to fully enjoy their retirement years,
we need to ensure that as many Americans as possible will have a stream
of income they cannot outlive. We have some control over when we
retire. However, we have very little control over how long we will
live.
For most Americans, a ``secure retirement'' means maintaining their
standard of living through retirement and the means to deal with life's
challenges from the first day of retirement to the very last. For the
majority of Americans, that requires a steady stream of income that,
combined with Social Security or other retirement income, covers basic
living expenses--from housing expenses to medical bills, taxes to
transportation, food to clothing. Yet, Americans today are facing a
serious and growing challenge to retirement security.
At the same time Americans are living longer, the future of private
and public retirement programs, as well as financial markets, is
increasingly uncertain. Fewer Americans are covered by traditional
pension plans, and Social Security currently replaces on average only
about 42 percent of earnings. This means it's increasingly up to each
individual to manage their retirement savings to last their lifetime.
And exactly how long will that period in retirement be? It depends. Of
course none of us know how long we will live; research shows most
Americans vastly underestimate their longevity.
According to the Society of Actuaries, a male age 65 has a 50 percent
chance of living beyond age 85 and a 25 percent chance of living beyond
age 92. Indeed, the biggest risk we face in retirement is the longevity
risk--that is, living longer than our retirement savings lasts. In
order to meet this challenge, Senator Conrad and I are introducing
legislation to encourage the use of retirement vehicles that pay a
guaranteed lifetime income.
Under the Retirement Security for Life Act that Senator Conrad and I
are introducing today, a tax incentive would be enacted that encourages
retirees to provide themselves with a guaranteed lifetime income that
they can't outlive. Specifically, the proposal would exclude from
Federal taxes one-half of the income payments from an annuity purchased
with after tax dollars (a so-called non-qualified annuity).
Importantly, we have proposed a cap on the exclusion so that no more
that $20,000 could be excluded in a year. For a typical American in the
25 percent tax bracket, this would provide an annual maximum tax
savings of up to $5,000. I believed that this modest tax incentive will
enable some retirees to consider annuitizing a portion of their nest
egg so that they have a guaranteed lifetime of income.
This legislation has a wide range of support from organizations
representing women, minorities, farmers and small businesses. Many in
these groups do not have access to traditional employer provided
pension. As we tackle the challenges of retirement policy, we need to
ensure that all Americans have adequate financial security to meet
their basic needs during retirement. Personal savings and
responsibility are the keys to a balanced national retirement security
policy. Please join me in supporting our proposal as a crucial step in
providing a secure retirement for all Americans. I ask unanimous
consent that the text of the legislation be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 3029
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 ``Retirement Security for Life
Act of 2004''.
SEC. 2. EXCLUSION FOR LIFETIME ANNUITY PAYMENTS.
(a) Lifetime Annuity Payments Under Annuity Contracts.--
Section 72(b) of the Internal Revenue Code of 1986 (relating
to exclusion ratio) is amended by adding at the end the
following new paragraph:
``(5) Exclusion for lifetime annuity payments.--
``(A) In general.--In the case of lifetime annuity payments
received under one or more annuity contracts in any taxable
year, gross income shall not include 50 percent of the
portion of lifetime annuity payments otherwise includible
(without regard to this paragraph) in gross income under this
section. For purposes of the preceding sentence, the amount
excludible from gross income in any taxable year shall not
exceed $20,000.
``(B) Cost-of-living adjustment.--In the case of taxable
years beginning after December 31, 2005, the $20,000 amount
in subparagraph (A) shall be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting `calendar year 2004'
for `calendar year 1992' in subparagraph (B) thereof.
If any amount as increased under the preceding sentence is
not a multiple of $500, such amount shall be rounded to the
next lower multiple of $500.
``(C) Application of paragraph.--Subparagraph (A) shall not
apply to--
``(i) any amount received under an eligible deferred
compensation plan (as defined in section 457(b)) or under a
qualified retirement plan (as defined in section 4974(c)),
``(ii) any amount paid under an annuity contract that is
received by the beneficiary under the contract--
``(I) after the death of the annuitant in the case of
payments described in subsection (c)(5)(A)(ii)(III), unless
the beneficiary is the surviving spouse of the annuitant, or
``(II) after the death of the annuitant and joint annuitant
in the case of payments described in subsection
(c)(5)(A)(ii)(IV), unless the beneficiary is the surviving
spouse of the last to die of the annuitant and the joint
annuitant, or
``(iii) any annuity contract that is a qualified funding
asset (as defined in section
[[Page S11899]]
130(d)), but without regard to whether there is a qualified
assignment.
``(D) Investment in the contract.--For purposes of this
section, the investment in the contract shall be determined
without regard to this paragraph.''.
(b) Definitions.--Subsection (c) of section 72 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(5) Lifetime annuity payment.--
``(A) In general.--For purposes of subsection (b)(5), the
term `lifetime annuity payment' means any amount received as
an annuity under any portion of an annuity contract, but only
if--
``(i) the only person (or persons in the case of payments
described in subclause (II) or (IV) of clause (ii)) legally
entitled (by operation of the contract, a trust, or other
legally enforceable means) to receive such amount during the
life of the annuitant or joint annuitant is such annuitant or
joint annuitant, and
``(ii) such amount is part of a series of substantially
equal periodic payments made not less frequently than
annually over--
``(I) the life of the annuitant,
``(II) the lives of the annuitant and a joint annuitant,
but only if the annuitant is the spouse of the joint
annuitant as of the annuity starting date or the difference
in age between the annuitant and joint annuitant is 15 years
or less,
``(III) the life of the annuitant with a minimum period of
payments or with a minimum amount that must be paid in any
event, or
``(IV) the lives of the annuitant and a joint annuitant
with a minimum period of payments or with a minimum amount
that must be paid in any event, but only if the annuitant is
the spouse of the joint annuitant as of the annuity starting
date or the difference in age between the annuitant and joint
annuitant is 15 years or less.
``(iii) Exceptions.--For purposes of clause (ii), annuity
payments shall not fail to be treated as part of a series of
substantially equal periodic payments--
``(I) because the amount of the periodic payments may vary
in accordance with investment experience, reallocations among
investment options, actuarial gains or losses, cost of living
indices, a constant percentage applied not less frequently
than annually, or similar fluctuating criteria,
``(II) due to the existence of, or modification of the
duration of, a provision in the contract permitting a lump
sum withdrawal after the annuity starting date, or
``(III) because the period between each such payment is
lengthened or shortened, but only if at all times such period
is no longer than one calendar year.
``(B) Annuity contract.--For purposes of subparagraph (A)
and subsections (b)(5) and (w), the term `annuity contract'
means a commercial annuity (as defined by section
3405(e)(6)), other than an endowment or life insurance
contract.
``(C) Minimum period of payments.--For purposes of
subparagraph (A), the term `minimum period of payments' means
a guaranteed term of payments that does not exceed the
greater of 10 years or--
``(i) the life expectancy of the annuitant as of the
annuity starting date, in the case of lifetime annuity
payments described in subparagraph (A)(ii)(III), or
``(ii) the life expectancy of the annuitant and joint
annuitant as of the annuity starting date, in the case of
lifetime annuity payments described in subparagraph
(A)(ii)(IV).
For purposes of this subparagraph, life expectancy shall be
computed with reference to the tables prescribed by the
Secretary under paragraph (3). For purposes of subsection
(w)(1)(C)(ii), the permissible minimum period of payments
shall be determined as of the annuity starting date and
reduced by one for each subsequent year.
``(D) Minimum amount that must be paid in any event.--For
purposes of subparagraph (A), the term `minimum amount that
must be paid in any event' means an amount payable to the
designated beneficiary under an annuity contract that is in
the nature of a refund and does not exceed the greater of the
amount applied to produce the lifetime annuity payments under
the contract or the amount, if any, available for withdrawal
under the contract on the date of death.''.
(c) Recapture Tax for Lifetime Annuity Payments.--Section
72 of the Internal Revenue Code of 1986 is amended by
redesignating subsection (w) as subsection (x) and by
inserting after subsection (v) the following new subsection:
``(w) Recapture Tax for Modifications to or Reductions in
Lifetime Annuity Payments.--
``(1) In general.--If any amount received under an annuity
contract is excluded from income by reason of subsection
(b)(5) (relating to lifetime annuity payments), and--
``(A) the series of payments under such contract is
subsequently modified so any future payments are not lifetime
annuity payments,
``(B) after the date of receipt of the first lifetime
annuity payment under the contract an annuitant receives a
lump sum and thereafter is to receive annuity payments in a
reduced amount under the contract, or
``(C) after the date of receipt of the first lifetime
annuity payment under the contract the dollar amount of any
subsequent annuity payment is reduced and a lump sum is not
paid in connection with the reduction, unless such reduction
is--
``(i) due to an event described in subsection
(c)(5)(A)(iii), or
``(ii) due to the addition of, or increase in, a minimum
period of payments within the meaning of subsection (c)(5)(C)
or a minimum amount that must be paid in any event (within
the meaning of subsection (c)(5)(D)),
then gross income for the first taxable year in which such
modification or reduction occurs shall be increased by the
recapture amount.
``(2) Recapture amount.--
``(A) In general.--For purposes of this subsection, the
recapture amount shall be the amount, determined under rules
prescribed by the Secretary, equal to the amount that (but
for subsection (b)(5)) would have been includible in the
taxpayer's gross income if the modification or reduction
described in paragraph (1) had been in effect at all times,
plus interest for the deferral period at the underpayment
rate established by section 6621.
``(B) Deferral period.--For purposes of this subsection,
the term `deferral period' means the period beginning with
the taxable year in which (without regard to subsection
(b)(5)) the payment would have been includible in gross
income and ending with the taxable year in which the
modification described in paragraph (1) occurs.
``(3) Exceptions to recapture tax.--Paragraph (1) shall not
apply in the case of any modification or reduction that
occurs because an annuitant--
``(A) dies or becomes disabled (within the meaning of
subsection (m)(7)),
``(B) becomes a chronically ill individual within the
meaning of section 7702B(c)(2), or
``(C) encounters hardship.''.
(d) Lifetime Distributions of Life Insurance Death
Benefits.--
(1) In general.--Section 101(d) of the Internal Revenue
Code of 1986 (relating to payment of life insurance proceeds
at a date later than death) is amended by adding at the end
the following new paragraph:
``(4) Exclusion for lifetime annuity payments.--
``(A) In general.--In the case of amounts to which this
subsection applies, gross income shall not include the lesser
of--
``(i) 50 percent of the portion of lifetime annuity
payments otherwise includible in gross income under this
section (determined without regard to this paragraph), or
``(ii) the amount in effect under section 72(b)(5).
``(B) Rules of section 72(b)(5) to apply.--For purposes of
this paragraph, rules similar to the rules of section
72(b)(5) and section 72(w) shall apply, substituting the term
`beneficiary of the life insurance contract' for the term
`annuitant' wherever it appears, and substituting the term
`life insurance contract' for the term `annuity contract'
wherever it appears.''.
(2) Conforming amendment.--Section 101(d)(1) of such Code
is amended by inserting ``or paragraph (4)'' after ``to the
extent not excluded by the preceding sentence''.
(e) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to amounts received in calendar years beginning after
the date of the enactment of this Act.
(2) Special rule for existing contracts.--In the case of a
contract in force on the date of the enactment of this Act
that does not satisfy the requirements of section 72(c)(5)(A)
of the Internal Revenue Code of 1986 (as added by this
section), or requirements similar to such section 72(c)(5)(A)
in the case of a life insurance contract), any modification
to such contract (including a change in ownership) or to the
payments thereunder that is made to satisfy the requirements
of such section (or similar requirements) shall not result in
the recognition of any gain or loss, any amount being
included in gross income, or any addition to tax that
otherwise might result from such modification, but only if
the modification is completed prior to the date that is 2
years after the date of the enactment of this Act.
Mr. CONRAD. Mr. President, I am pleased to join my friend and
colleague, Senator Gordon Smith from Oregon, in introducing legislation
that can help seniors enjoy a more secure retirement. The good news is
that Americans are living longer but it also means that people have to
plan for a longer period of retirement. A successful retirement income
plan is a challenge even for the savvy investor. How much more
difficult is this task for the millions of Americans with limited
investment experience?
For years Congress has encouraged people to save for their
retirement. Through the tax code, we encourage asset building through
home ownership. We provide significant tax incentives for employer-
based pension plans and for dedicated retirement savings programs by
individuals, such as IRAs and 401(k) plans.
One of the biggest threats to retirement income security for baby
boomers is their own longevity. It will not be easy to manage their
accumulated assets so that they will last a lifetime. Unprecedented
numbers of Americans are now living into their 90s and even past 100.
Today, actuaries tell us that
[[Page S11900]]
about one in six 65-year-old men and one out of three 65-year-old women
can expect to live into their 90s.
Consequently, people are going to spend more time in retirement than
previous generations. Over the course of the 20th century, the
percentage of men in the workforce aged 65 years or older dropped from
about 66 percent to less than 20 percent. Now our society confronts the
impending retirement of 77 million baby boomers. Many of them will not
have the guaranteed monthly retirement checks that many of their
parents enjoyed as a result of employer-based pension plans.
Traditional defined-benefit pension plans have given way to defined
contribution plans, which have shifted the retirement income security
risk from the employer to the individual.
Of course, there are still many Americans who have no access at all
to employer-provided pension plans. Some have never been in the
traditional workforce; others work in seasonal jobs or part time. In my
state of North Dakota, as well as in rural and farming communities
across America, there is an acute need for retirement vehicles that
will provide a secure lifetime payout. Others who could face difficulty
in securing retirement income are widowed individuals--both men and
women--who suddenly find themselves having to make a life insurance
benefit or proceeds from the sale of a business or family home last a
lifetime.
The proposal we are introducing today will provide a valuable tool
for helping people avoid the risk of outliving their assets.
Specifically, we are proposing a tax incentive to encourage Americans
to available a portion of their assets annuitize for retirement. If
they annuitize--in other words, elect to receive their money from an
annuity in a series of payments for the rest of their lives, no matter
how long that may be--they would be able to exclude from income a
portion of the annuity benefit that represents the accumulation in the
annuity above and beyond the original investment. The tax benefit is
capped to ensure that tax sheltering activity is not encouraged and
that the incentive will be effective for people who would benefit most
from securing a lifetime income stream.
This proposal we offer today would apply only to life-contingent,
nonqualified annuities. A life-contingent annuity that is subsequently
modified to a fixed-term payout would be subject to a recapture tax.
Baby boomers represent an unprecedented challenge to our retirement
security policies. They should have a wide range of options available
for responsible retirement planning. Our proposal focuses on non-
qualified annuities because it is important to have this option
considered as part of the larger retirement income security debate that
Congress should have before baby boomers begin retiring in large
numbers. Options for making qualified plans more secure should be part
of that debate as well.
I hope that the 109th Congress will tackle this matter promptly
because time is short. That first wave of baby boomer retirees begins
in 2008--just over 36 months from today.
______
By Mr. NELSON of Florida:
S. 3030. A bill to establish an Office of Consumer Advocacy and
Outreach within the Federal Trade Commission to protect consumers from
certain unfair or deceptive acts or practices, and for other purposes;
to the Committee on Commerce, Science, and Transportation.
Mr. NELSON of Florida. Mr. President, today I rise to introduce a
bill to create a new government reward hotline designed to solicit tips
from Spanish-speaking immigrants and other groups that are more likely
to be the silent victims of consumer fraud.
The hotline will allow anyone with knowledge of a fraud scheme
involving deceptive advertising to get a reward for reporting it
directly to the experts who work at the Federal Trade Commission.
This legislation addresses the unscrupulous businesses that target
certain communities because they know the victims are less likely to
report crimes. It will further the efforts of the Federal Trade
Commission to combat this problem by creating an Office of Consumer
Advocacy and Outreach within the Federal Trade Commission which will
administer programs and services that make it easier for victims in
these communities to hold wrong-doers accountable.
A Federal Trade Commission survey from earlier this year revealed
that nearly 25 million adults in the United States, or 11.2 percent of
the adult population, were victims of fraud, and that certain
communities were more likely to fall prey to fraudulent schemes. For
example, the survey found that Hispanics are twice as likely to be
victims of fraud as non-Hispanic whites. A study conducted by the
National Institute of Justice concluded that immigrant victims report
crimes less frequently than other victims. The factors cited as
contributing to this underreporting included language barriers,
cultural differences, and a limited understanding of the United States
Justice system.
During this past year the Federal Trade Commission has levied an
increasing number of complaints against deceptive Spanish-language
advertisements, including fraudulent driving permits and junk
computers. Two of these complaints were filed against businesses in
South Florida that targeted Spanish speakers with advertisements for
``scientifically unfeasible'' weight-loss pills.
The Office of Consumer Advocacy and Outreach created by this bill
will provide information to targeted consumers in these communities on
how to protect themselves against fraudulent schemes and where to seek
redress if they become a victim. The Office will work with law
enforcement to track and investigate fraud schemes that target
immigrants, the elderly, minorities and other communities.
One of the ways the Office will work to increase reporting of fraud
by Spanish-speakers, for example, will be to publicize the reward
program through a Spanish-language public service advertising campaign
produced by the Federal Trade Commission that warns against consumer
fraud and provides the number for this newly created anonymous hotline.
Additionally, the Office will work with law enforcement to increase
their level of participation in the Consumer Sentinel database system.
This database, currently in existence, collects information from local,
State and Federal agencies on consumer complaints to assist in the
tracking and investigating of consumer fraud issues.
______
By Mr. NICKLES (for himself, Ms. Landrieu, Mr. Craig, and Mr.
Inhofe): S. 3031. A bill to provide for the reform of
intercountry adoption, and for other purposes; to the Committee
on the Judiciary.
Mr. NICKLES. Mr. President, last month we celebrated National
Adoption Month. In 2003, Americans opened their hearts and homes to
over 20,000 orphaned children born overseas. In order to adopt these
children the families had to submit extensive paperwork and work with
three federal agencies in order to be approved to adopt a foreign born
child and to be able to bring that child home to America. The
Intercountry Adoption Reform Act that I am introducing today along with
Senators Landrieu, Craig, and Inhofe streamlines the process families
go through to adopt a child from overseas by eliminating unnecessary
paperwork and consolidating the federal functions into one office.
Last November, I introduced the first version of the Intercountry
Adoption Reform Act, known simply as the ICARE Act, along with Senators
Landrieu, Craig, Inhofe, Bingaman, and Smith. Over the last year we
have received many comments about the bill from groups representing
adoption professionals as well as comments from the administration. In
response to these comments, we have revised our original bill to
incorporate many of the suggestions provided to us and to address some
of the concerns expressed.
Two major changes have been made. First, we have added enforcement
provisions. We revised the bill to make clear that the new Office of
Intercountry Adoption (OIA) will have the ability to protect children,
birth families and adoptive families from fraud and abuse through
enforcement provisions. It also clarifies that the OIA can work with
the Department of Homeland Security and the Department of Justice to
enforce the provisions of the Act. Second, we added provisions to
provide a smooth transition from the
[[Page S11901]]
current adoption process to the new and improved process. These
provisions ensure that all adoption cases filed prior to the opening of
the OIA would be processed under the current rules. Any cases filed
after the opening of the OIA would be processed under the provisions of
ICARE.
There were many other technical and minor changes made to clarify and
perfect the original language. I believe that these changes have
significantly improved the bill and address many, if not all of the
concerns that were raised.
Since 1998, I have been working to improve the foreign adoption
process. It was in that year that I introduced the first version of the
Child Citizenship Act which became law in 2000. This Act provides for
automatic U.S. citizenship for foreign born children adopted by
American citizens. When that bill took effect on February 27, 2001,
over 150,000 foreign adopted children became U.S. citizens
automatically.
In the fall of 2001, and the first half of 2002, I helped work on the
crisis that ensued when the INS suspended American adoptions from
Cambodia. Four hundred and fifty families who were in the process of
adopting from Cambodia were left stranded, unable to bring their
adopted children home to America. Although there was evidence that
fraudulent players were involved in adoptions in Cambodia and that
there is a need for a fraud free, transparent adoption process, the
suspension impacted many American families and the Cambodian orphans
they hoped to adopt. The children and families stuck in the process
when the suspension was announced needed to be able to complete the
adoption process they had started prior to the suspension. I worked
with the Administration to develop a plan to process those adoptions
where it was determined that no fraud was involved. I worked closely
with Senator Landrieu and other members of Congress on both the House
and Senate side to ensure that these Cambodian orphans could come home
to their American families.
I have also been working since 2002, to develop the ICARE Act. ICARE
has two main goals. First, and most importantly, this bill acknowledges
and affirms that foreign adopted children of American citizens are to
be treated in all respects the same as children born abroad to an
American citizen. Under existing law, foreign adopted children are
treated as immigrants to the United States. They have to apply for, and
be granted immigrant visas to enter the United States. Once they enter
the United States, citizenship is acquired automatically. Had these
children been born abroad to American citizens, they would have
traveled back to the United States with a U.S. passport and entered as
citizens. This bill provides for equal treatment for foreign adopted
children.
The second goal is to consolidate the existing functions of the
federal government relating to foreign adoption into one centralized
office. The office would be located within the Department of State.
Currently, these functions are performed by offices within the
Department of Homeland Security and the Department of State.
Consolidation of these functions into one office will result in focused
attention on the needs of families seeking to adopt overseas and on the
children they are hoping to make part of their families.
Although I have not been able to see this bill through to completion
during my tenure in the Senate, it is my hope and desire that my
colleagues who have cosponsored this bill with me will continue to
press forward until the goals of this bill are accomplished.
I introduce this revised version of the ICARE Act and hope that it
will be reintroduced and acted upon in the next Congress. Passage of
this bill will significantly improve the foreign adoption process so
that more children worldwide can find loving, permanent homes. It is my
prayer that someday, adoption will not be needed. That all children
will be born into stable, loving homes to parents who want them and are
able to care for them. However, until that day comes, the foreign
adoption process can be improved and should be improved. Foreign
adopted children of American citizens should be treated as children of
U.S. citizens, not as immigrants, and should be accorded all the same
rights as biological children of U.S. citizens. To that end, I
introduce this bill.
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. 3031
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 ``Intercountry Adoption Reform
Act of 2004'' or the ``ICARE Act''.
SEC. 2. FINDINGS; PURPOSES.
(a) Findings.--Congress finds the following:
(1) That a child, for the full and harmonious development
of his or her personality, should grow up in a family
environment, in an atmosphere of happiness, love, and
understanding.
(2) That intercountry adoption may offer the advantage of a
permanent family to a child for whom a suitable family cannot
be found in his or her country of origin.
(3) There has been a significant growth in intercountry
adoptions. In 1990, Americans adopted 7,093 children from
abroad. In 2001, they adopted 19,237 children from abroad.
(4) Americans increasingly seek to create or enlarge their
families through intercountry adoptions.
(5) There are many children worldwide that are without
permanent homes.
(6) In the interest of children without a permanent family
and the United States citizens who are waiting to bring them
into their families, reforms are needed in the intercountry
adoption process used by United States citizens.
(7) Before adoption, each child should have the benefit of
measures taken to ensure that intercountry adoption is in his
or her best interests and prevents the abduction, selling, or
trafficking of children.
(8) In addition, Congress recognizes that foreign born
adopted children do not make the decision whether to
immigrate to the United States. They are being chosen by
Americans to become part of their immediate families.
(9) As such these children should not be classified as
immigrants in the traditional sense. Once fully and finally
adopted, they should be treated as children of United States
citizens.
(10) Since a child who is fully and finally adopted is
entitled to the same rights, duties, and responsibilities as
a biological child, the law should reflect such equality.
(11) Therefore, foreign born adopted children of United
States citizens should be accorded the same procedural
treatment as biological children born abroad to a United
States citizen.
(12) If a United States citizen can confer citizenship to a
biological child born abroad, then the same citizen is
entitled to confer such citizenship to their legally and
fully adopted foreign born child immediately upon final
adoption.
(13) If a United States citizen cannot confer citizenship
to a biological child born abroad, then such citizen cannot
confer citizenship to their legally and fully adopted foreign
born child, except through the naturalization process.
(b) Purposes.--The purposes of this Act are--
(1) to ensure that intercountry adoptions take place in the
best interests of the child;
(2) to ensure that foreign born children adopted by United
States citizens will be treated identically to a biological
child born abroad to the same citizen parent; and
(3) to improve the intercountry adoption process by making
it more citizen friendly and focused on the protection of the
child.
SEC. 3. DEFINITIONS.
In this Act:
(1) Adoptable child.--The term ``adoptable child'' has the
same meaning given such term in section 101(c)(3) of the
Immigration and Nationality Act (8 U.S.C. 1101(c)(3)), as
added by section 204(a) of this Act.
(2) Ambassador at large.--The term ``Ambassador at Large''
means the Ambassador at Large for Intercountry Adoptions
appointed to head the Office pursuant to section 101(b).
(3) Competent authority.--The term ``competent authority''
means the entity or entities authorized by the law of the
child's country of residence to engage in permanent placement
of children who are no longer in the legal or physical
custody of their biological parents.
(4) Convention.--The term ``Convention'' means the
Convention on Protection of Children and Co-operation in
Respect of Intercountry Adoption, done at The Hague on May
29, 1993.
(5) Full and final adoption.--The term ``full and final
adoption'' means an adoption--
(A) that is completed according to the laws of the child's
country of residence or the State law of the parent's
residence;
(B) under which a person is granted full and legal custody
of the adopted child;
(C) that has the force and effect of severing the child's
legal ties to the child's biological parents;
(D) under which the adoptive parents meet the requirements
of section 205; and
(E) under which the child has been adjudicated to be an
adoptable child in accordance with section 206.
[[Page S11902]]
(6) Office.--The term ``Office'' means the Office of
Intercountry Adoptions established under section 101(a).
(7) Readily approvable.--A petition or certification is
considered ``readily approvable'' if the documentary support
provided demonstrates that the petitioner satisfies the
eligibility requirements and no additional information or
investigation is necessary.
TITLE I--ADMINISTRATION OF INTERCOUNTRY ADOPTIONS
Subtitle A--In General
SEC. 101. OFFICE OF INTERCOUNTRY ADOPTIONS.
(a) Establishment.--Not later than 180 days after the date
of enactment of this Act, there is to be established within
the Department of State, an Office of Intercountry Adoptions
which shall be headed by the Ambassador at Large for
Intercountry Adoptions who shall be appointed pursuant to
subsection (b).
(b) Ambassador at Large.--
(1) Appointment.--The Ambassador at Large shall be
appointed by the President, by and with the advice and
consent of the Senate, from among individuals who have
background, experience, and training in intercountry
adoptions, taking care to ensure that the individual who
serves as Ambassador is free from any conflicts of interest
that might inhibit such individual's ability to serve as
Ambassador.
(2) Authority.--The Ambassador at Large shall report
directly to the Secretary of State, in consultation with the
Assistant Secretary for Consular Affairs. The Ambassador at
Large has no independent regulatory authority.
(3) Duties of the ambassador at large.--In carrying out the
functions of the Office, the Ambassador at Large shall have
the following responsibilities:
(A) In general.--The primary responsibilities of the
Ambassador at Large shall be--
(i) to ensure that intercountry adoptions take place in the
best interests of the child; and
(ii) to assist the Secretary of State in fulfilling the
responsibilities designated to the central authority under
title I of the Intercountry Adoption Act of 2000 (42 U.S.C.
14911 et seq.).
(B) Advisory role.--The Ambassador at Large shall be a
principal advisor to the President and the Secretary of State
regarding matters affecting intercountry adoption and the
general welfare of children abroad and shall make
recommendations regarding--
(i) the policies of the United States with respect to the
establishment of a system of cooperation among the parties to
the Convention;
(ii) the policies to prevent abandonment, strengthen
families, and to advance the placement of children in
permanent families; and
(iii) policies that promote the protection and well-being
of children.
(C) Diplomatic representation.--Subject to the direction of
the President and the Secretary of State, the Ambassador at
Large may represent the United States in matters and cases
relevant to international adoption in--
(i) fulfillment of the responsibilities designated to the
central authority under title I of the Intercountry Adoption
Act of 2000 (42 U.S.C. 14911 et seq.);
(ii) contacts with foreign governments, intergovernmental
organizations, and specialized agencies of the United Nations
and other international organizations of which the United
States is a member; and
(iii) multilateral conferences and meetings relevant to
international adoption.
(D) International policy development.--The Ambassador at
Large shall advise and support the Secretary of State and
other relevant Bureaus of the Department of State in the
development of sound policy regarding child protection and
intercountry adoption.
(E) Reporting responsibilities.--The Ambassador at Large
shall have the following reporting responsibilities:
(i) In general.--The Ambassador at Large shall assist the
Secretary of State and other relevant Bureaus in preparing
those portions of the Human Rights Reports that relate to the
abduction, sale, and trafficking of children.
(ii) Annual report on intercountry adoption.--On September
1 of each year, the Secretary of State, with the assistance
of the Ambassador at Large, shall prepare and transmit to
Congress an annual report on intercountry adoption. Each
annual report shall include--
(I) a description of the status of child protection and
adoption in each foreign country, including--
(aa) trends toward improvement in the welfare and
protection of children and families;
(bb) trends in family reunification, domestic adoption, and
intercountry adoption;
(cc) movement toward ratification and implementation of the
Convention; and
(dd) census information on the number of children in
orphanages, foster homes, and other types of nonpermanent
residential care as reported by the foreign country;
(II) the number of intercountry adoptions by United States
citizens, including the country from which each child
emigrated, the State in which each child resides, and the
country in which the adoption was finalized;
(III) the number of intercountry adoptions involving
emigration from the United States, including the country
where each child now resides and the State from which each
child emigrated;
(IV) the number of placements for adoption in the United
States that were disrupted, including the country from which
the child emigrated, the age of the child, the date of the
placement for adoption, the reasons for the disruption, the
resolution of the disruption, the agencies that handled the
placement for adoption, and the plans for the child, and in
addition, any information regarding disruption or dissolution
of adoptions of children from other countries received
pursuant to section 422(b)(14) of the Social Security Act (42
U.S.C. 622(b)(14));
(V) the average time required for completion of an
adoption, set forth by the country from which the child
emigrated;
(VI) the current list of agencies accredited and persons
approved under the Intercountry Adoption Act of 2000 (42
U.S.C. 14901 et seq.) to provide adoption services;
(VII) the names of the agencies and persons temporarily or
permanently debarred under the Intercountry Adoption Act of
2000 (42 U.S.C. 14901 et seq.), and the reasons for the
debarment;
(VIII) the range of adoption fees involving adoptions by
United States citizens and the median of such fees set forth
by the country of origin;
(IX) the range of fees charged for accreditation of
agencies and the approval of persons in the United States
engaged in providing adoption services under the Convention;
and
(X) recommendations of ways the United States might act to
improve the welfare and protection of children and families
in each foreign country.
(c) Functions of Office.--The Office shall have the
following 7 functions:
(1) Approval of a family to adopt.--To approve or
disapprove the eligibility of United States citizens to adopt
foreign born children.
(2) Child adjudication.--To investigate and adjudicate the
status of a child born abroad to determine their eligibility
as an adoptable child.
(3) Family services.--To provide assistance to United
States citizens engaged in the intercountry adoption process
in resolving problems with respect to that process and to
track intercountry adoption cases so as to ensure that all
such adoptions are processed in a timely manner.
(4) International policy development.--To advise and
support the Ambassador at Large and other relevant Bureaus in
the development of sound policy regarding child protection
and intercountry adoption.
(5) Central authority.--To assist the Secretary of State in
carrying out duties of the central authority as defined in
section 3 of the Intercountry Adoption Act of 2000 (42 U.S.C.
14902).
(6) Enforcement.--To investigate, either directly or in
cooperation with other appropriate international, Federal,
State, or local entities, improprieties relating to adoption,
including issues of child protection, birth family
protection, and consumer fraud.
(7) Administration.--To perform administrative functions
related to the functions performed under paragraphs (1)
through (6), including legal functions and congressional
liaison and public affairs functions.
(d) Organization.--
(1) In general.--All functions of the Office shall be
performed by officers housed in a centralized office located
in Washington, D.C. Within the Washington, D.C. office, there
shall be 7 divisions corresponding to the 7 functions of the
Office. All 7 divisions and their respective directors shall
report directly to the Ambassador at Large.
(2) Approval to adopt.--The division responsible for
approving parents to adopt shall be divided into regions of
the United States as follows:
(A) Northwest.
(B) Northeast.
(C) Southwest.
(D) Southeast.
(E) Midwest.
(F) West.
(3) Child adjudication.--To the extent practicable, the
division responsible for the adjudication of foreign born
children as adoptable shall be divided by world regions which
correspond to those currently used by other divisions within
the Department of State.
(4) Use of international field officers.--Nothing in this
section shall be construed to prohibit the use of
international field officers posted abroad, as necessary, to
fulfill the requirements of this Act.
(5) Use of existing systems.--Whenever possible, the Office
shall utilize systems currently in place that ensure
protections against child trafficking.
(e) Qualifications and Training.--In addition to meeting
the employment requirements of the Department of State,
officers employed in any of the 7 divisions of the Office
shall undergo extensive and specialized training in the laws
and processes of intercountry adoption as well as
understanding the cultural, medical, emotional, and social
issues surrounding intercountry adoption and adoptive
families. The Ambassador at Large shall, whenever possible,
recruit and hire individuals with background and experience
in intercountry adoptions, taking care to ensure that such
individuals do not have any conflicts of interest that might
inhibit their ability to serve.
[[Page S11903]]
(f) Use of Electronic Databases and Filing.--To the extent
possible, the Office shall make use of centralized,
electronic databases and electronic form filing.
SEC. 102. RECOGNITION OF CONVENTION ADOPTIONS IN THE UNITED
STATES.
Section 505(a)(1) of the Intercountry Adoption Act of 2000
(42 U.S.C. 14901 note) is amended by inserting ``301, 302,''
after ``205,''.
SEC. 103. TECHNICAL AND CONFORMING AMENDMENT.
Section 104 of the Intercountry Adoption Act of 2000 (42
U.S.C. 14914) is repealed.
Subtitle B--Transition Provisions
SEC. 111. TRANSFER OF FUNCTIONS.
(a) In General.--Subject to subsection (c), all functions
under the immigration laws of the United States with respect
to the adoption of foreign born children by United States
citizens and their admission to the United States that have
been vested by statute in, or exercised by, the Commissioner
of Immigration and Naturalization, the Immigration and
Naturalization Service (or any officer, employee, or
component thereof), of the Department of Homeland Security
(or any officer, employee, or component thereof) immediately
prior to the effective date of this title, are transferred to
the Office on the effective date of this title for exercise
by the Ambassador at Large in accordance with applicable laws
and title II of this Act.
(b) Exercise of Authorities.--Except as otherwise provided
by law, the Ambassador at Large may, for purposes of
performing any function transferred to the Ambassador at
Large under subsection (a), exercise all authorities under
any other provision of law that were available with respect
to the performance of that function to the official
responsible for the performance of the function immediately
before the effective date of the transfer of the function
pursuant to this title.
(c) Limitation on Transfer of Pending Adoptions.--If an
individual has filed a petition with the Immigration and
Naturalization Service or the Department of Homeland Security
with respect to the adoption of a foreign born child prior to
the date of enactment of this title, the Secretary of
Homeland Security shall have the authority to make the final
determination on such petition and such petition shall not be
transferred to the Office.
SEC. 112. TRANSFER OF RESOURCES.
Subject to section 1531 of title 31, United States Code,
upon the effective date of this title, there are transferred
to the Ambassador at Large for appropriate allocation in
accordance with section 115, the assets, liabilities,
contracts, property, records, and unexpended balance of
appropriations, authorizations, allocations, and other funds
employed, held, used, arising from, available to, or to be
made available to the Immigration and Naturalization Service
or the Department of Homeland Security in connection with the
functions transferred pursuant to this title.
SEC. 113. INCIDENTAL TRANSFERS.
The Ambassador at Large may make such additional incidental
dispositions of personnel, assets, liabilities, grants,
contracts, property, records, and unexpended balances of
appropriations, authorizations, allocations, and other funds
held, used, arising from, available to, or to be made
available in connection with such functions, as may be
necessary to carry out this title. The Ambassador at Large
shall provide for such further measures and dispositions as
may be necessary to effectuate the purposes of this title.
SEC. 114. SAVINGS PROVISIONS.
(a) Legal Documents.--All orders, determinations, rules,
regulations, permits, grants, loans, contracts, agreements,
including collective bargaining agreements, certificates,
licenses, and privileges--
(1) that have been issued, made, granted, or allowed to
become effective by the President, the Ambassador at Large,
the former Commissioner of the Immigration and Naturalization
Service, their delegates, or any other Government official,
or by a court of competent jurisdiction, in the performance
of any function that is transferred pursuant to this title;
and
(2) that are in effect on the effective date of such
transfer (or become effective after such date pursuant to
their terms as in effect on such effective date);
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the President, any other authorized
official, a court of competent jurisdiction, or operation of
law, except that any collective bargaining agreement shall
remain in effect until the date of termination specified in
the agreement.
(b) Proceedings.--
(1) Pending.--The transfer of functions under section 111
shall not affect any proceeding or any application for any
benefit, service, license, permit, certificate, or financial
assistance pending on the effective date of this title before
an office whose functions are transferred pursuant to this
title, but such proceedings and applications shall be
continued.
(2) Orders.--Orders shall be issued in such proceedings,
appeals shall be taken therefrom, and payments shall be made
pursuant to such orders, as if this Act had not been enacted,
and orders issued in any such proceeding shall continue in
effect until modified, terminated, superseded, or revoked by
a duly authorized official, by a court of competent
jurisdiction, or by operation of law.
(3) Discontinuance or modification.--Nothing in this
section shall be considered to prohibit the discontinuance or
modification of any such proceeding under the same terms and
conditions and to the same extent that such proceeding could
have been discontinued or modified if this section had not
been enacted.
(c) Suits.--This title shall not affect suits commenced
before the effective date of this title, and in all such
suits, proceeding shall be had, appeals taken, and judgments
rendered in the same manner and with the same effect as if
this title had not been enacted.
(d) Nonabatement of Actions.--No suit, action, or other
proceeding commenced by or against the Department of State,
the Immigration and Naturalization Service, or the Department
of Homeland Security, or by or against any individual in the
official capacity of such individual as an officer or
employee in connection with a function transferred pursuant
to this section, shall abate by reason of the enactment of
this Act.
(e) Continuance of Suit With Substitution of Parties.--If
any Government officer in the official capacity of such
officer is party to a suit with respect to a function of the
officer, and pursuant to this title such function is
transferred to any other officer or office, then such suit
shall be continued with the other officer or the head of such
other office, as applicable, substituted or added as a party.
(f) Administrative Procedure and Judicial Review.--Except
as otherwise provided by this title, any statutory
requirements relating to notice, hearings, action upon the
record, or administrative or judicial review that apply to
any function transferred pursuant to any provision of this
title shall apply to the exercise of such function by the
head of the office, and other officers of the office, to
which such function is transferred pursuant to such
provision.
Subtitle C--Effective Date
SEC. 121. EFFECTIVE DATE.
This title shall take effect 180 days after the date of
enactment of this Act.
TITLE II--REFORM OF UNITED STATES LAWS GOVERNING INTERCOUNTRY ADOPTIONS
SEC. 201. AUTOMATIC ACQUISITION OF CITIZENSHIP FOR ADOPTED
CHILDREN BORN OUTSIDE THE UNITED STATES.
(a) Amendments of Automatic Citizenship Provisions.--
Section 320 of the Immigration and Nationality Act (8 U.S.C.
1431) is amended--
(1) by amending the section heading to read as follows:
``Children Born Outside the United States; Conditions Under
Which Citizenship Automatically Acquired''; and
(2) in subsection (a), by striking paragraphs (1) through
(3) and inserting the following:
``(1) Upon the date the adoption becomes full and final, at
least 1 parent of the child is a citizen of the United
States, whether by birth or naturalization, who has been
physically present in the United States or its outlying
possessions for a period or periods totaling not less than 5
years, at least 2 of which were after attaining the age of 14
years. Any periods of honorable service in the Armed Forces
of the United States, or periods of employment with the
United States Government or with an international
organization as that term is defined in section 1 of the
International Organizations Immunities Act (22 U.S.C. 288) by
such citizen parent, or any periods during which such citizen
parent is physically present abroad as the dependent
unmarried son or daughter and a member of the household of a
person--
``(A) honorably serving with the Armed Forces of the United
States; or
``(B) employed by the United States Government or an
international organization as defined in section 1 of the
International Organizations Immunities Act (22 U.S.C. 288);
may be included in order to satisfy the physical presence
requirement of this paragraph.
``(2) The child is an adoptable child described in section
101(c)(3).
``(3) The child is the beneficiary of a full and final
adoption decree entered by a foreign government or a court in
the United States.
``(4) For purposes of this subsection, the term `full and
final adoption' means an adoption--
``(A) that is completed under the laws of the child's
country of residence or the State law of the parent's
residence;
``(B) under which a person is granted full and legal
custody of the adopted child;
``(C) that has the force and effect of severing the child's
legal ties to the child's biological parents;
``(D) under which the adoptive parents meet the
requirements of section 205 of the Intercountry Adoption
Reform Act of 2004; and
``(E) under which the child has been adjudicated to be an
adoptable child in accordance with section 206 of the
Intercountry Adoption Reform Act of 2004.''.
(b) Effective Date.--This section shall take effect as if
enacted on January 1, 1950.
SEC. 202. REVISED PROCEDURES.
Notwithstanding any other provision of law, the following
requirements shall apply with respect to the adoption of
foreign born children by United States citizens:
(1) Upon completion of a full and final adoption, the
Secretary of State shall issue a
[[Page S11904]]
United States passport and a Consular Report of Birth for a
child who satisfies the requirements of section 320 of the
Immigration and Nationality Act (8 U.S.C. 1431), as amended
by section 201 of this Act, upon application by a United
States citizen parent.
(2) An adopted child described in paragraph (1) shall not
require the issuance of a visa for travel and admission to
the United States but shall be admitted to the United States
upon presentation of a valid, unexpired United States
passport.
(3) No affidavit of support under section 213A of the
Immigration and Nationality Act (8 U.S.C. 1183a) shall be
required in the case of any adoptable child.
(4)(A) The Secretary of State shall require that agencies
provide prospective adoptive parents an opportunity to
conduct an independent medical exam and a copy of any medical
records of the child known to exist (to the greatest extent
practicable, these documents shall include an English
translation) on a date that is not later than the earlier of
the date that is 2 weeks before the adoption, or the date on
which prospective adoptive parents travel to such a foreign
country to complete all procedures in such country relating
to adoption.
(B) The Secretary of State shall not require an adopted
child described in paragraph (1) to undergo a medical exam
for the purpose of excluding the child's immigration to the
United States.
(5) The Secretary of State shall take necessary measures to
ensure that all prospective adoptive parents adopting
internationally are provided with training that includes
counseling and guidance for the purpose of promoting a
successful intercountry adoption before such parents travel
to adopt the child or the child is placed with such parents
for adoption.
(6) The Secretary of State shall take necessary measures to
ensure that--
(A) prospective adoptive parents are given full disclosure
of all direct and indirect costs of intercountry adoption
before they are matched with child for adoption;
(B) fees charged in relation to the intercountry adoption
be on a fee for service basis not on a contingent fee basis;
and
(C) that the transmission of fees between the adoption
agency, the country of origin, and the prospective adoptive
parents is carried out in a transparent and efficient manner.
(7) The Secretary of State shall take all measures
necessary to ensure that all documents provided to a country
of origin on behalf of a prospective adoptive parent are
truthful and accurate.
SEC. 203. NONIMMIGRANT VISAS FOR CHILDREN TRAVELING TO THE
UNITED STATES TO BE ADOPTED BY A UNITED STATES
CITIZEN.
(a) In General.--Section 101(a)(15) of the Immigration and
Nationality Act (8 U.S.C. 1101(a)(15)) is amended--
(1) by striking ``or'' at the end of subparagraph (U);
(2) by striking the period at the end of subparagraph (V)
and inserting ``; or''; and
(3) by adding at the end the following:
``(W) an adoptable child who is coming into the United
States for adoption by a United States citizen and a spouse
jointly or by an unmarried United States citizen at least 25
years of age, who has been approved to adopt.''.
(b) Termination of Period of Authorized Admission.--Section
214 of the Immigration and Nationality Act (8 U.S.C. 1184) is
amended by adding at the end the following:
``(s) In the case of a nonimmigrant described in section
101(a)(15)(W), the period of authorized admission shall
terminate on the earlier of--
``(1) the date on which the adoption of the nonimmigrant is
completed by the courts of the State where the parents
reside; or
``(2) the date that is 4 years after the date of admission
of the nonimmigrant into the United States, unless a
petitioner is able to show cause as to why the adoption could
not be completed prior to such date and the Secretary extends
such period for the period necessary to complete the
adoption.''.
(c) Temporary Treatment as Legal Permanent Resident.--
Notwithstanding any other law, all benefits and protections
that apply to a legal permanent resident shall apply to a
nonimmigrant described in section 101(a)(15)(W) of the
Immigration and Nationality Act, as added by subsection (a),
pending a full and final adoption.
(d) Exception From Immunization Requirement for Certain
Adopted Children.--Section 212(a)(1)(C) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)(1)(C)) is amended--
(1) in the heading by striking ``10 years'' and inserting
``18 years''; and
(2) in clause (i), by striking ``10 years'' and inserting
``18 years''.
(e) Regulations.--Not later than 90 days after the date of
enactment of this Act, the Secretary of State shall prescribe
such regulations as may be necessary to carry out this
section.
SEC. 204. DEFINITION OF ADOPTABLE CHILD.
(a) In General.--Section 101(c) of the Immigration and
Nationality Act (8 U.S.C. 1101(c)) is amended by adding at
the end the following:
``(3) The term `adoptable child' means an unmarried person
under the age of 18--
``(A)(i) whose biological parents (or parent, in the case
of a child who has one sole or surviving parent) or other
persons or institutions that retain legal custody of the
child--
``(I) have freely given their written irrevocable consent
to the termination of their legal relationship with the
child, and to the child's emigration and adoption and that
such consent has not been induced by payment or compensation
of any kind and has not been given prior to the birth of the
child;
``(II) are unable to provide proper care for the child, as
determined by the competent authority of the child's
residence; or
``(III) have voluntarily relinquished the child to the
competent authorities pursuant to the law of the child's
residence; or
``(ii) who, as determined by the competent authority of the
child's residence--
``(I) has been abandoned or deserted by their biological
parent, parents, or legal guardians; or
``(II) has been orphaned due to the death or disappearance
of their biological parent, parents, or legal guardians;
``(B) with respect to whom the Secretary of State is
satisfied that the proper care will be furnished the child if
admitted to the United States;
``(C) with respect to whom the Secretary of State is
satisfied that the purpose of the adoption is to form a bona
fide parent-child relationship and that the parent-child
relationship of the child and the biological parents has been
terminated (and in carrying out both obligations under this
subparagraph the Secretary of State, in consultation with the
Secretary of Homeland Security, may consider whether there is
a petition pending to confer immigrant status on one or both
of the biological parents);
``(D) with respect to whom the Secretary of State, is
satisfied that there has been no inducement, financial or
otherwise, offered to obtain the consent nor was it given
before the birth of the child;
``(E) with respect to whom the Secretary of State, in
consultation with the Secretary of Homeland Security, is
satisfied that the person is not a security risk; and
``(F) whose eligibility for adoption and emigration to the
United States has been certified by the competent authority
of the country of the child's place of birth or residence.''.
(b) Conforming Amendment.--Section 204(d) of the
Immigration and Nationality Act (8 U.S.C. 1154(d)) is amended
by inserting ``and an adoptable child as defined in section
101(c)(3)'' before ``unless a valid home-study''.
SEC. 205. APPROVAL TO ADOPT.
(a) In General.--Prior to the issuance of a visa under
section 101(a)(15)(W) of the Immigration and Nationality Act,
as added by section 203(a) of this Act, or the issuance of a
full and final adoption decree, the United States citizen
adoptive parent shall have approved by the Office a petition
to adopt. Such petition shall be subject to the same terms
and conditions as are applicable to petitions for
classification under section 204.3 of title 8 of the Code of
Federal Regulations, as in effect on the day before the date
of enactment of this Act.
(b) Expiration of Approval.--Approval to adopt under this
Act is valid for 24 months from the date of approval. Nothing
in this section may prevent the Secretary of Homeland
Security from periodically updating the fingerprints of an
individual who has filed a petition for adoption.
(c) Expedited Reapproval Process of Families Previously
Approved To Adopt.--The Secretary of State shall prescribe
such regulations as may be necessary to provide for an
expedited and streamlined process for families who have been
previously approved to adopt and whose approval has expired,
so long as not more than 3 years have lapsed since the
original application.
(d) Denial of Petition.--
(1) Notice of intent.--If the officer adjudicating the
petition to adopt finds that it is not readily approvable,
the officer shall notify the petitioner, in writing, of the
officer's intent to deny the petition. Such notice shall
include the specific reasons why the petition is not readily
approvable.
(2) Petitioners right to respond.--Upon receiving a notice
of intent to deny, the petitioner has 30 days to respond to
such notice.
(3) Decision.--Within 30 days of receipt of the
petitioner's response the Office must reach a final decision
regarding the eligibility of the petitioner to adopt. Notice
of a formal decision must be delivered in writing.
(4) Right to an appeal.--Unfavorable decisions may be
appealed to the Department of State and, after the exhaustion
of the appropriate appeals process of the Department, to a
United States district court.
(5) Regulations regarding appeals.--Not later than 6 months
after the date of enactment of this Act, the Secretary of
State shall promulgate formal regulations regarding the
process for appealing the denial of a petition.
SEC. 206. ADJUDICATION OF CHILD STATUS.
(a) In General.--Prior to the issuance of a full and final
adoption decree or a visa under section 101(a)(15)(W) of the
Immigration and Nationality Act, as added by section 203(a)
of this Act--
(1) the Office shall obtain from the competent authority of
the country of the child's residence a certification,
together with documentary support, that the child sought to
be adopted meets the description of an adoptable child; and
(2) not later than 15 days after the date of the receipt of
the certification referred to in paragraph (1), the Office
shall make a final determination on whether the certification
and the documentary support are sufficient
[[Page S11905]]
to meet the requirements of this section or whether
additional investigation or information is required.
(b) Process for Determination.--
(1) In general.--The Ambassador at Large shall work with
the competent authorities of the child's country of residence
to establish a uniform, transparent, and efficient process
for the exchange and approval of the certification and
documentary support required under subsection (a).
(2) Notice of intent.--If the Office finds that the
certification submitted by the competent authority of the
child's country of origin is not readily approvable, the
Office shall--
(A) notify the competent authority and the prospective
adoptive parents, in writing, of the specific reasons why the
certification is not sufficient; and
(B) provide the competent authority and the prospective
adoptive parents the opportunity to address the stated
insufficiencies.
(3) Petitioners right to respond.--Upon receiving a notice
of intent to find that a certification is not readily
approvable, the prospective adoptive parents shall have 30
days to respond to such notice.
(4) Decision.--Not later than 30 days after the date of
receipt of a response submitted under paragraph (3), the
Office must reach a final decision regarding the child's
eligibility as an adoptable child. Notice of such decision
must be in writing.
(5) Right to an appeal.--Unfavorable decisions on a
certification may be appealed to the Department of State and,
after the exhaustion of the appropriate appeals process of
the Department, to a United States district court.
TITLE III--FUNDING
SEC. 301. FUNDS.
The Secretary of State shall provide the Ambassador at
Large with such funds as may be necessary for--
(1) the hiring of staff for the Office;
(2) investigations conducted by the Office; and
(3) travel and other expenses necessary to carry out this
Act.
TITLE IV--ENFORCEMENT
SEC. 401. ENFORCEMENT.
(a) Civil Penalties.--A person shall be subject, in
addition to any other penalty that may be prescribed by law,
to a civil money penalty of not more than $50,000 for a first
violation, and not more than $100,000 for each succeeding
violation if such person--
(1) violates a provision of this Act or an amendment made
by this Act;
(2) makes a false or fraudulent statement, or
misrepresentation, with respect to a material fact, or
offers, gives, solicits, or accepts inducement by way of
compensation, intended to influence or affect in the United
States or a foreign country--
(A) a decision for an approval under title II;
(B) the relinquishment of parental rights or the giving of
parental consent relating to the adoption of a child; or
(C) a decision or action of any entity performing a central
authority function; or
(3) engages another person as an agent, whether in the
United States or in a foreign country, who in the course of
that agency takes any of the actions described in paragraph
(1) or (2).
(b) Civil Enforcement.--
(1) Authority of attorney general.--The Attorney General
may bring a civil action to enforce subsection (a) against
any person in any United States district court.
(2) Factors to be considered in imposing penalties.--In
imposing penalties the court shall consider the gravity of
the violation, the degree of culpability of the defendant,
and any history of prior violations by the defendant.
(c) Criminal Penalties.--Whoever knowingly and willfully
commits a violation described in paragraph (1) or (2) of
subsection (a) shall be subject to a fine of not more than
$250,000, imprisonment for not more than 5 years, or both.
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