[House Report 114-460]
[From the U.S. Government Publishing Office]


114th Congress   }                                        {     Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                        {    114-460

======================================================================



 
  MODERNIZING THE INTERSTATE PLACEMENT OF CHILDREN IN FOSTER CARE ACT

                                _______
                                

 March 21, 2016.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Brady of Texas, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4472]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 4472) to amend title IV of the Social Security Act 
to require States to adopt a centralized electronic system to 
help expedite the placement of children in foster care or 
guardianship, or for adoption, across State lines, and to 
provide grants to aid States in developing such a system, and 
for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
  I. SUMMARY AND BACKGROUND...........................................4
          A. Purpose and Summary.................................     4
          B. Background and Need for Legislation.................     4
          C. Legislative History.................................     6
 II. EXPLANATION OF THE BILL..........................................6
          Section 1: Short Title.................................     6
          Section 2: Findings....................................     6
          Section 3: State Plan Requirement......................     6
          Section 4: Grants for the Development of an Electronic 
              Interstate Case-Processing System to Expedite the 
              Interstate Placement of Children in Foster Care or 
              Guardianship, or for Adoption......................     6
          Section 5: Continuation of Discretionary Funding to 
              Promote Safe and Stable Families...................    11
          Section 6: Reservation of Funds to Improve the 
              Interstate Placement of Children...................    11
III. VOTES OF THE COMMITTEE..........................................12
 IV. NEW BUDGET AUTHORITY AND TAX EXPENDITURES.......................12
  V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE.......12
 VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......15
          B. Committee Oversight Findings and Recommendations....    15
          C. Statement of General Performance Goals and 
              Objectives.........................................    15
          D. Applicability of House Rule XXI 5(b)................    15
          E. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................    15
          F. Duplication of Federal Programs.....................    15
          G. Disclosure of Directed Rule Makings.................    16
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........16
          A. Text of Existing Law Amended or Repealed by the 
              Bill, as Reported..................................    16
          B. Changes in Existing Law Proposed by the Bill, as 
              Reported...........................................    33

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Modernizing the Interstate Placement 
of Children in Foster Care Act''.

SEC. 2. FINDINGS.

  The Congress finds that--
          (1) when a child in foster care cannot return safely home, 
        the child deserves to be placed in a setting that is best for 
        that child, regardless of whether it is in the child's State or 
        another State;
          (2) the Interstate Compact on the Placement of Children 
        (ICPC) was established in 1960 to provide a uniform legal 
        framework for the placement of children across State lines in 
        foster and adoptive homes;
          (3) frequently, children waiting to be placed with an 
        adoptive family, relative, or foster parent in another State 
        spend more time waiting for this to occur than children who are 
        placed with an adoptive, family, relative, or foster parent in 
        the same State, because of the outdated, administratively 
        burdensome ICPC process;
          (4) no child should have to wait longer to be placed in a 
        loving home simply because the child must cross a State line;
          (5) the National Electronic Interstate Compact Enterprise 
        (NEICE) was launched in August 2014 in Indiana, Nevada, 
        Florida, South Carolina, Wisconsin, and the District of 
        Columbia, and is expected to be expanded into additional States 
        to improve the administrative process by which children are 
        placed with families across State lines;
          (6) States using this electronic interstate case-processing 
        system have reduced administrative costs and the amount of 
        staff time required to process these cases, and caseworkers can 
        spend more time helping children instead of copying and mailing 
        paperwork between States;
          (7) since NEICE was launched, placement time has decreased by 
        30 percent for interstate foster care placements; and
          (8) on average, States using this electronic interstate case-
        processing system have been able to reduce from 24 business 
        days to 13 business days the time it takes to identify a family 
        for a child and prepare the paperwork required to start the 
        ICPC process.

SEC. 3. STATE PLAN REQUIREMENT.

  (a) In General.--Section 471(a)(25) of the Social Security Act (42 
U.S.C. 671(a)(25)) is amended--
          (1) by striking ``provide'' and insert ``provides''; and
          (2) by inserting ``, which, not later than October 1, 2026, 
        shall include the use of an electronic interstate case-
        processing system'' before the 1st semicolon.
  (b) Effective Date.--
          (1) In general.--The amendments made by subsection (a) shall 
        take effect on the 1st day of the 1st calendar quarter 
        beginning on or after the date of the enactment of this Act, 
        and shall apply to payments under part E of title IV of the 
        Social Security Act for calendar quarters beginning on or after 
        such date.
          (2) Delay permitted if state legislation required.--If the 
        Secretary of Health and Human Services determines that State 
        legislation (other than legislation appropriating funds) is 
        required in order for a State plan developed pursuant to part E 
        of title IV of the Social Security Act to meet the additional 
        requirement imposed by the amendments made by subsection (a), 
        the plan shall not be regarded as failing to meet any of the 
        additional requirements before the 1st day of the 1st calendar 
        quarter beginning after the first regular session of the State 
        legislature that begins after the date of the enactment of this 
        Act. For purposes of the preceding sentence, if the State has a 
        2-year legislative session, each year of the session is deemed 
        to be a separate regular session of the State legislature.

SEC. 4. GRANTS FOR THE DEVELOPMENT OF AN ELECTRONIC INTERSTATE CASE-
                    PROCESSING SYSTEM TO EXPEDITE THE INTERSTATE 
                    PLACEMENT OF CHILDREN IN FOSTER CARE OR 
                    GUARDIANSHIP, OR FOR ADOPTION.

  Section 437 of the Social Security Act (42 U.S.C. 637) is amended by 
adding at the end the following:
  ``(g) Grants for the Development of an Electronic Interstate Case-
processing System to Expedite the Interstate Placement of Children in 
Foster Care or Guardianship, or for Adoption.--
          ``(1) Purpose.--The purpose of this subsection is to 
        facilitate the development of an electronic interstate case-
        processing system for the exchange of data and documents to 
        expedite the placements of children in foster, guardianship, or 
        adoptive homes across State lines.
          ``(2) Application requirements.--A State that desires a grant 
        under this subsection shall submit to the Secretary an 
        application containing the following:
                  ``(A) A description of the goals and outcomes to be 
                achieved during the period for which grant funds are 
                sought, which goals and outcomes must result in--
                          ``(i) reducing the time it takes for a child 
                        to be provided with a safe and appropriate 
                        permanent living arrangement across State 
                        lines;
                          ``(ii) improving administrative processes and 
                        reducing costs in the foster care system; and
                          ``(iii) the secure exchange of relevant case 
                        files and other necessary materials in real 
                        time, and timely communications and placement 
                        decisions regarding interstate placements of 
                        children.
                  ``(B) A description of the activities to be funded in 
                whole or in part with the grant funds, including the 
                sequencing of the activities.
                  ``(C) A description of the strategies for integrating 
                programs and services for children who are placed 
                across State lines.
                  ``(D) Such other information as the Secretary may 
                require.
          ``(3) Grant authority.--The Secretary may make a grant to a 
        State that complies with paragraph (2).
          ``(4) Use of funds.--A State to which a grant is made under 
        this subsection shall use the grant to support the State in 
        connecting with the electronic interstate case-processing 
        system described in paragraph (1).
          ``(5) Evaluations.--Not later than 1 year after the final 
        year in which grants are awarded under this subsection, the 
        Secretary shall submit to the Congress, and make available to 
        the general public by posting on a website, a report that 
        contains the following information:
                  ``(A) How using the electronic interstate case-
                processing system developed pursuant to paragraph (4) 
                has changed the time it takes for children to be placed 
                across State lines.
                  ``(B) The number of cases subject to the Interstate 
                Compact on the Placement of Children that were 
                processed through the electronic interstate case-
                processing system, and the number of interstate child 
                placement cases that were processed outside the 
                electronic interstate case-processing system, by each 
                State in each year.
                  ``(C) The progress made by States in implementing the 
                electronic interstate case-processing system.
                  ``(D) How using the electronic interstate case-
                processing system has affected various metrics related 
                to child safety and well-being, including the time it 
                takes for children to be placed across State lines.
                  ``(E) How using the electronic interstate case-
                processing system has affected administrative costs and 
                caseworker time spent on placing children across State 
                lines.
          ``(6) Data integration.--The Secretary, in consultation with 
        the Secretariat for the Interstate Compact on the Placement of 
        Children and the States, shall assess how the electronic 
        interstate case-processing system developed pursuant to 
        paragraph (4) could be used to better serve and protect 
        children that come to the attention of the child welfare 
        system, by--
                  ``(A) connecting the system with other data systems 
                (such as systems operated by State law enforcement and 
                judicial agencies, systems operated by the Federal 
                Bureau of Investigation for the purposes of the 
                Innocence Lost National Initiative, and other systems);
                  ``(B) simplifying and improving reporting related to 
                paragraphs (34) and (35) of section 471(a) regarding 
                children or youth who have been identified as being a 
                sex trafficking victim or children missing from foster 
                care; and
                  ``(C) improving the ability of States to quickly 
                comply with background check requirements of section 
                471(a)(20), including checks of child abuse and neglect 
                registries as required by section 471(a)(20)(B).''.

SEC. 5. CONTINUATION OF DISCRETIONARY FUNDING TO PROMOTE SAFE AND 
                    STABLE FAMILIES.

  Section 437(a) of the Social Security Act (42 U.S.C. 637(a)) is 
amended by striking ``2016'' and inserting ``2017''.

SEC. 6. RESERVATION OF FUNDS TO IMPROVE THE INTERSTATE PLACEMENT OF 
                    CHILDREN.

  Section 437(b) of the Social Security Act (42 U.S.C. 637(b)) is 
amended by adding at the end the following:
          ``(4) Improving the interstate placement of children.--The 
        Secretary shall reserve $5,000,000 of the amount made available 
        for fiscal year 2017 for grants under subsection (g), and the 
        amount so reserved shall remain available through fiscal year 
        2021.''.

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    H.R. 4472 as amended, the Modernizing the Interstate 
Placement of Children in Foster Care Act, as ordered reported 
by the Committee on Ways and Means on March 16, 2016, amends 
title IV of the Social Security Act to require states to adopt 
a centralized electronic interstate case-processing system to 
help expedite the placement of children in foster care or 
guardianship, or for adoption, across state lines. The bill 
continues the discretionary authorization for the Promoting 
Safe and Stable Families program at current authorized levels 
through September 30, 2017, and reserves $5 million of this 
discretionary funding for the U.S. Department of Health and 
Human Services (HHS) to provide grants to aid states in 
developing such a system.
    This legislation requires HHS to submit an evaluation to 
Congress, not later than one year after the final year in which 
grants are awarded to states for this purpose. This evaluation 
will provide information on how states' use of the electronic 
interstate case-processing system has changed the amount of 
time it takes for children to be placed across state lines, how 
many more cases have been processed through this electronic 
system, the progress made by states in implementing the system, 
how the use of the system has affected various metrics related 
to child safety and well-being, and how the use of this system 
has affected administrative time and cost when placing children 
in homes across state lines.
    This legislation requires the Secretary of HHS, in 
consultation with the Secretariat for the Interstate Compact on 
the Placement of Children and the States, to assess how the 
electronic interstate case-processing system could be used to 
better serve and protect children that come to the attention of 
the child welfare system.

                 B. Background and Need for Legislation

    When children in foster care cannot remain safely at home, 
they deserve to be placed in a setting that is best for them, 
regardless of whether that home is within their state or in 
another state. However, when children would do best with an 
adoptive family, relative, or foster parent in another state, 
they often must wait longer than if they stayed in the same 
state, in part due to the outdated, labor-intensive process 
many states use when transmitting information across state 
lines. When placing children across state lines, states must 
exchange multiple documents, such as court orders, case plan 
information, birth certificates and other information. In most 
states, this exchange is carried out by printing, copying, and 
mailing physical copies of documents between states--a labor 
intensive and time consuming process that keeps children from 
moving quickly into the appropriate home.
    Beginning in November 2013, five states (Florida, Indiana, 
Nevada, South Carolina, Wisconsin) and the District of Columbia 
began a pilot project to test the National Electronic 
Interstate Compact Enterprise (NEICE), a system developed to 
aid states in exchanging data and documents between different 
jurisdictions when placing children across state lines. NEICE 
is a web-based electronic case-processing system that supports 
the administration of the Interstate Compact on the Placement 
of Children (ICPC), an agreement between states establishing 
uniform legal and administrative procedures governing the 
interstate placement of children.
    Pilot states saw substantial improvements in the process 
used to place children with adoptive parents, relatives, or 
foster parents in another state. A final evaluation of the 
pilot project found the electronic system produced the 
following outcomes:
     Children are placed in the right homes more 
quickly: On average, states using this electronic system 
reduced the time it takes to place a child in a home in another 
state by over 30 percent. This means children waited on average 
one and a half months less to be placed in the right home.
     Child welfare caseworkers spend less time on 
paperwork: A survey of states participating in the pilot showed 
states could reduce the time they spend on the placement 
process by 10 percent.
     States eliminate mailing and printing costs by 
using the electronic system: States could realize significant 
savings by switching from a paper-based process to an 
electronic process. Based on estimates from pilot states, 
states spend more than $1.6 million annually on copying and 
mailing of documents related to cases in which children are 
placed in another state.\1\
---------------------------------------------------------------------------
    \1\Supporting Permanent Placements of Children in Foster Care 
Through Electronic Records Exchange: National Electronic Interstate 
Compact Enterprise (NEICE), Final Evaluation Report. June 29, 2015. 
Available online:  http://www.aphsa.org/content/AAICPC/en/actions/
NEICE.html.
---------------------------------------------------------------------------
    Children should not spend extra weeks waiting to be placed 
in the appropriate home simply because of an antiquated process 
used to exchange information across state lines. To address 
this problem, the Modernizing the Interstate Placement of 
Children in Foster Care Act requires states to connect to this 
electronic case-processing system to reduce the amount of time 
children wait to be adopted, placed with relatives, or placed 
with foster parents when they are going to a home in another 
state. This legislation would also provide states with funding 
to connect to this system more quickly, and HHS would evaluate 
the impacts of states' use of this system to determine how it 
has improved the process of placing children in homes across 
state lines.

                         C. Legislative History


Background

    H.R. 4472, Modernizing the Interstate Placement of Children 
in Foster Care Act, was introduced on February 4, 2016 by 
Congressman Todd Young and Congressman Danny Davis, and was 
referred to the Committee on Ways and Means.

Committee hearings

    No hearings were held on H.R. 4472. However, in 2015 and 
prior years the Human Resources Subcommittee held a number of 
hearings on child welfare programs and policies, which often 
addressed the need for promoting better and faster services for 
children and families involved with the child welfare system, 
as well as the need to promote the use of technology to provide 
improved services to the public, and especially families in 
need of assistance.

Committee action

    The Committee on Ways and Means marked up H.R. 4472, the 
Modernizing the Interstate Placement of Children in Foster Care 
Act, on March 16, 2016, and ordered the bill, as amended, 
favorably reported by voice vote (with a quorum being present).

                      II. EXPLANATION OF THE BILL


                         SECTION 1: SHORT TITLE

Present law

    No provision.

Explanation of provision

    The short title of this act is the Modernizing the 
Interstate Placement of Children in Foster Care Act.

Reason for change

    The Committee believes that the short title reflects the 
policy actions included in the legislation.

Effective date

    The provision is effective upon enactment.

                          SECTION 2: FINDINGS

Present law

    No provision.

Explanation of provision

    The bill contains congressional findings stipulating that--

          Children who cannot be safely returned home deserve 
        to be placed in the best setting possible for them, 
        regardless of the state where the setting is located 
        and no child should have to wait to move to that best 
        setting because it is across a state line.
          The Interstate Compact on the Placement of Children 
        (ICPC) established in 1960 provides a uniform legal 
        framework for placement of children in foster and 
        adoptive homes across state lines. However, because of 
        ``outdated, administratively burdensome ICPC 
        process[es],'' placement of a child with an adoptive 
        family, relative, or foster parent across state lines 
        is frequently delayed.
          The National Electronic Interstate Compact Enterprise 
        (NEICE) is an electronic case-processing system that 
        was launched in five states (Florida, Indiana, Nevada, 
        South Carolina, and Wisconsin) and the District of 
        Columbia and is expected to continue to expand to other 
        states. Use of NEICE in the six pilot jurisdictions 
        reduced administrative costs and the amount of staff 
        time required to process interstate cases--allowing 
        caseworkers to spend more time helping children instead 
        of copying and mailing paperwork between states. On 
        average, the jurisdictions using NEICE reduced the 
        number of business days (from 24 to 13) it takes to 
        identify a family and prepare the paperwork required to 
        start the ICPC process. Those same jurisdictions also 
        decreased the amount of time it takes to complete 
        interstate placements by 30 percent.

Reason for change

    The Committee believes that the findings demonstrate the 
need for this legislation and reflect the policy actions 
included in the bill.

Effective date

    The provision is effective upon enactment.

                   SECTION 3: STATE PLAN REQUIREMENT

Present law

    States operating a title IV-E program (including the 
District of Columbia and any territory or tribe operating such 
a program) are required to have procedures for the timely 
completion of interstate home studies. (Section 471(a)(25) of 
the Social Security Act)

Explanation of provision

    The bill would require that no later than October 1, 2026, 
these timely interstate placement procedures of a state, 
territory, or tribe must include an electronic interstate case-
processing system.

Reason for change

    While some states have implemented the electronic 
interstate case-processing system and others are planning to 
join, the system is most effective when all states participate. 
States are currently required to have procedures in place for 
the placement of children across state lines, under the 
Interstate Compact for the Placement of Children (ICPC). This 
provision requires that they modernize these procedures to take 
advantage of the electronic interstate case-processing system 
to more quickly place children in the right home.

Effective date

    The bill would provide that this section is effective no 
later than the first day of the first fiscal year quarter that 
begins after its enactment. The bill would permit a delay of 
that effective date if the U.S. Department of Health and Human 
Services (HHS) Secretary determines that a state needs to enact 
legislation to be in compliance with the requirement. However, 
no delay may be granted beyond the first day of the fiscal year 
quarter beginning after the first regular session of the 
state's legislature that occurs after enactment of this 
provision.

SECTION 4: GRANTS FOR THE DEVELOPMENT OF AN ELECTRNOIC INTERSTATE CASE-
 PROCESSING SYSTEM TO EXPEDITE THE INTERSTATE PLACEMENT OF CHILDREN IN 
              FOSTER CARE OR GUARDIANSHIP, OR FOR ADOPTION

                        AUTHORIZATION OF GRANTS

Present law

    Section 437 of the Social Security Act: (1) authorizes 
discretionary funding for the child and family services program 
known as Promoting Safe and Stable Families (PSSF); (2) 
describes distribution of those discretionary funds: and, 
separately (3) establishes the grant program known as Regional 
Partnership Grants to improve outcomes for children affected by 
parental substance abuse.
    For purposes of this subpart of the law, ``state'' means 
each of the 50 states and the District of Columbia, any of five 
territories (Puerto Rico, Guam, American Samoa, U.S. Virgin 
Islands and Northern Mariana Islands), as well as an Indian 
tribe or tribal organization (as defined in the Indian Self 
Determination and Education Act). (Section 431(a)(4) of the 
Social Security Act)

Explanation of provision

    This bill would add a new subsection to Section 437 of the 
Social Security Act establishing grants intended to expedite 
placement of children in foster care, guardianship, or adoptive 
homes across state lines by facilitating development of an 
electronic interstate case-processing system for the exchange 
of state and other documents needed to permit interstate 
placements. The HHS Secretary would be permitted to make a 
grant to any ``state'' that meets the grant application 
requirements and the grantee would be required to use the funds 
for development of such an electronic system.

Reason for change

    While a number of states are planning to implement the 
electronic interstate case-processing system in the coming 
years, providing funding specifically for states to connect to 
this system will encourage states to join more quickly. This 
will improve the outcomes for every state as more states share 
files electronically, and more children will benefit as a 
result of this improved process.

Effective date

    The provision is effective upon enactment.

                      APPLICATION AND USE OF FUNDS

Present law

    No provision.

Explanation of provision

    A ``state'' seeking a grant for this purpose would need to 
submit an application to the HHS Secretary describing the goals 
and outcomes the state expects to achieve with the funds, which 
must result in:
           Reduced time to complete placement of 
        children in safe, appropriate and permanent living 
        arrangements across state lines;
           The secure and real-time exchange of 
        relevant case files and other necessary materials for 
        interstate placement of children; and
           Improved administrative processes and 
        reduced costs to the foster care system.
    Further, the ``state'' would be required to include in this 
grant application to the HHS Secretary a description of the 
activities it will fund with the grant, a description of any 
strategies for integrating services and programs for children 
placed across state lines, and any other information the HHS 
Secretary may require.

Reason for change

    The Committee believes, to ensure the proper use of funds 
provided by this legislation, states should be required to 
explain how receiving funds will help them more quickly place 
children in homes across state lines. To ensure funds are spent 
as intended, states are also required to explain how funds will 
be used, as well as how they expect implementing this system 
will improve their administrative processes.

Effective date

    The provision is effective upon enactment.

                               EVALUATION

Present law

    No provision.

Explanation of provision

    No later than one year after the final year in which grants 
are awarded under this authority, HHS would need to provide 
information to Congress (and via a website, the public) 
concerning:
           How the use of the electronic interstate 
        case-processing system developed with this grant 
        funding has changed the time it takes for children to 
        be placed across state lines;
           The number of ICPC cases processed through 
        the electronic interstate case-processing system and 
        the number processed outside that system, by state and 
        by year;
           Progress made by states in implementing the 
        electronic interstate case-processing system; and
           How using this system has affected child 
        safety and well-being and, separately, administrative 
        costs, including caseworker time spent on interstate 
        placements.

Reason for change

    The Committee believes states receiving funding to connect 
with the electronic interstate case-processing system should 
report on the results of their efforts, and that this 
information should be reported to Congress and the public. This 
information can be used to inform future work to improve the 
child welfare system, as well as to evaluate the effectiveness 
of this legislation in improving the placement of children 
across state lines.

Effective date

    The provision is effective upon enactment.

                            DATA INTEGRATION

Present law

    A state, territory, or tribe operating a title IV-E foster 
care program must perform a background check for any 
prospective foster or adoptive parent before approving 
placement of a child with that adult. The background check must 
include criminal records checks, including a fingerprint-based 
check of the National Crime Information Center (NCIC) database 
maintained by the Federal Bureau of Investigation (FBI). 
Further, it must include a check for any information that is 
included in a state-maintained child abuse and neglect registry 
regarding such a prospective parent (and any adult living in 
the home of such prospective parent), including any child abuse 
and neglect registry maintained by a state where the 
prospective parent (and any co-residing adult) currently lives 
and any state he/she lived in during the preceding five years. 
(Section 471(a)(20)(B) of the Social Security Act)
    No later than September 29, 2018, any state, territory or 
tribe operating a title IV-E foster care program must 
immediately (or in no case later than 24 hours) report 
information it receives to law enforcement authorities on (1) 
children or youth identified as sex trafficking victims, and 
(2) missing or abducted children. (In the case of missing and 
abducted children this information is to be entered, by law 
enforcement authorities, into the NCIC database of the FBI.) 
Additionally, as of September 29, 2018, state, tribal, or 
territorial title IV-E agencies must immediately report 
information they receive on missing and abducted children to 
the National Center for Missing and Exploited Children (NCMEC). 
(Section 471(a)(34) and (35) of the Social Security Act)
    The Innocence Lost National Initiative is a FBI/U.S. 
Department of Justice project that combines the efforts of 
multiple federal, state, and local law enforcement agencies, 
working with U.S. Attorney's offices, to address domestic sex 
trafficking of children.

Explanation of provision

    The HHS Secretary, in consultation with the administrator 
for the ICPC and the states, would need to assess how the 
electronic interstate case-processing system developed with 
this grant funding may be used to:
           Better serve and protect children who come 
        to the attention of the child welfare agency, including 
        by connecting the system with data systems operated by 
        state law enforcement and judicial agencies, the FBI, 
        the Innocence Lost National Initiative, and others;
           Simplify and improve reporting required 
        under the title IV-E program related to children 
        missing from foster care and those children or youth 
        identified as sex trafficking victims; and
           Improve the ability of states to quickly 
        comply with background checks, including criminal 
        records checks and checks of state-maintained child 
        abuse and neglect registries.

Reason for change

    The value and importance of the electronic interstate case-
processing system has been demonstrated through the evaluation 
produced as a result of the pilot. States currently 
participating in this system also have identified other ways in 
which the system could help them address other child welfare 
issues that arise between states. This provision requires HHS 
to work with states to assess how this system might be used to 
better protect children, and these recommendations can inform 
future federal, state, and local efforts to improve child 
welfare practice.

Effective date

    The provision is effective upon enactment.

 SECTION 5: CONTINUATION OF DISCRETIONARY FUNDING TO PROMOTE SAFE AND 
                            STABLE FAMILIES

Present law

    Current law authorizes an appropriation of $200 million in 
discretionary Promoting Safe and Stable Families (PSSF) program 
funding for each of FY2012-FY2016. (Section 437(a) of the 
Social Security Act)

Explanation of provision

    This bill would extend this discretionary funding 
authorization for the PSSF program at the same level for one 
year, FY2017.

Reason for change

    This legislation extends the discretionary funding 
authorization for the PSSF program for one year for the purpose 
of reserving $5 million from this appropriation to make grants 
to states, territories, and tribes to connect to the electronic 
interstate case-processing system.

Effective date

    The provision is effective upon enactment.

SECTION 6: RESERVATION OF FUNDS TO IMPROVE THE INTERSTATE PLACEMENT OF 
                                CHILDREN

Present law

    Out of any discretionary funding provided for the PSSF 
program, HHS is required to reserve a certain portion to 
support tribal child and family services, the state Court 
Improvement Program, and research, evaluation, training, and 
technical assistance activities. After these set-asides are 
made, the remaining funds are distributed to each of the states 
(including DC) and territories, for provision of child and 
family services. (Section 437(b) of the Social Security Act)

Explanation of provision

    This bill would additionally require the HHS Secretary to 
reserve $5 million of any discretionary PSSF funds provided in 
FY2017 to make grants to states (including DC), territories, 
and tribes for the development of the electronic interstate 
case-processing system. The reservation of funds for these 
grants would be authorized and required in FY2017 only, but the 
funds reserved could be used to make these grants in each or 
any of FY2017-FY2021.

Reason for change

    Congress has identified a variety of key child welfare 
priorities to be supported with discretionary PSSF funding, and 
current law reserves funds for these specific purposes. These 
purposes include reserving funds to assist state courts, 
conduct research, fund training, assist children affected by 
parental substance abuse, and support tribal child welfare 
services. Based on the successful pilot testing of the 
electronic interstate case-processing system, the Committee 
believes funding also should be reserved to expand the use of 
this system. Therefore, this legislation reserves $5 million in 
funding from FY2017 to support states in connecting to the 
electronic interstate case-processing system.

Effective date

    The provision is effective upon enactment.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.R. 4472, the Modernizing the Interstate 
Placement of Children in Foster Care Act, on March 16, 2016.
    The bill, H.R. 4472, as amended, was ordered reported 
favorably by voice vote (with a quorum being present).

             IV. NEW BUDGET AUTHORITY AND TAX EXPENDITURES

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new budget authority or tax expenditure budget 
authority.

      V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the Committee sets forth the following 
estimate and comparison prepared by the Director of the 
Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 21, 2016.
Hon. Kevin Brady,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4472, the 
Modernizing the Interstate Placement of Children in Foster Care 
Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 4472--Modernizing the Interstate Placement of Children in Foster 
        Care Act

    Summary: H.R. 4472 would amend title IV of the Social 
Security Act to require states, no later than October 1, 2026, 
to develop an automated system that would facilitate the 
placement of children in foster care, guardianship, or adoptive 
homes across state lines. The legislation also would authorize 
the appropriation of $200-million in 2017 for a program called 
Promoting Safe and Stable Families (PSSF) administered by the 
Department of Health and Human Services (HHS). Of that amount, 
$5 million would be reserved for HHS to make grants to states 
and tribal entities to develop the processing system. CBO 
estimates that implementing this legislation would cost $200 
million over the 2017-2021 period, assuming appropriation of 
the authorized amount.
    Because enacting the bill could affect direct spending, 
pay-as-you-go procedures apply; however, the increased spending 
would not be significant, CBO estimates. Enacting H.R. 4472 
would not affect revenues. CBO estimates that enacting H.R. 
4472 would not increase net direct spending or on-budget 
deficits in any of the four consecutive 10-year periods 
beginning in 2027.
    H.R. 4472 would impose intergovernmental mandates, as 
defined in the Unfunded Mandates Reform Act (UMRA), on state 
governments because it would increase the stringency of 
conditions in the foster care program. CBO estimates, however, 
that the cost of the mandates would not exceed the threshold 
established in UMRA for intergovernmental mandates ($77 million 
in 2016, adjusted annually for inflation). The bill contains no 
private-sector mandates as defined in UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary effect of this legislation is shown in the following 
table. The costs of this legislation fall within budget 
function 500 (education, training, employment, and social 
services).

----------------------------------------------------------------------------------------------------------------
                                                                      By fiscal year, in millions of dollars--
                                                                   ---------------------------------------------
                                                                     2017   2018   2019   2020   2021  2017-2021
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Authorization Level...............................................    200      0      0      0      0       200
Estimated Outlays.................................................     64    110     22      2      2       200
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: CBO assumes that H.R. 4472 will be 
enacted near the start of 2017 and that the amount authorized 
will be appropriated that year. Outlays are estimated based on 
historical spending patterns for the PSSF program. The current 
authorization for that program expires at the end of 2016; $60 
million was appropriated for the program in 2016.
    Currently, under title IV-E of the Social Security Act, the 
federal government reimburses states for a portion of their 
spending on administrative activities, including the 
development of information technologies. To the extent that 
enacting this legislation increases state spending on the 
development and implementation of an automated processing 
system, direct spending for reimbursements would increase. 
However, based on information from HHS, CBO expects that most 
states have already begun to develop an automated processing 
system and nearly all will have such a system in place by the 
end of fiscal year 2026. Accordingly, CBO estimates that any 
additional spending by states to comply with the bill's 
deadline for completing the automated system would not be 
significant.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. H.R. 4472 would affect direct spending as states 
increase spending to develop and implement an automated system 
required under this bill. However, CBO estimates that any such 
additional spending would total less than $500,000 over the 
2017-2026 period.
    Increase in long-term direct spending and deficits: CBO 
estimates that enacting the legislation would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    Intergovernmental and private-sector impact: The bill would 
require states by October 1, 2016, to implement an electronic 
system for processing the placement of children in foster care, 
guardianship, or adoptive homes across state lines. For large 
entitlement grant programs like Foster Care and Adoption 
Assistance, UMRA defines an increase in the stringency of 
conditions as an intergovernmental mandate if the affected 
governments lack authority to offset those costs while 
continuing to provide required services. Federal assistance to 
states for administrative costs and flexibility in the program 
are both limited, so the new requirements would be 
intergovernmental mandates.
    Most states are already in the process of implementing 
electronic systems using existing resources, and CBO estimates 
that, in absence of this bill, nearly all states would have 
systems established by the end of fiscal year 2026. Therefore, 
CBO estimates that any additional costs to states would be 
insignificant and fall well below the threshold established in 
UMRA ($77 million in 2016, adjusted annually for inflation).
    The bill contains no private-sector mandates as defined in 
UMRA.
    Estimate prepared by: Federal costs: Susanne S. Mehlman and 
Jennifer Gray; Impact on State, local, and Tribal governments: 
J'Nell Blanco Suchy; Impact on the private sector: Paige Piper/
Bach.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

     VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          B. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
description portions of this report.

        C. Statement of General Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation are to 
amend title IV of the Social Security Act to require states to 
adopt an electronic interstate case-processing system to help 
expedite the placement of children in foster care or 
guardianship, or for adoption, across state lines, and to 
provide grants to aid states in developing such a system.

                D. Applicability of House Rule XXI 5(b)

    Rule XXI 5(b) of the Rules of the House of Representatives 
provides, in part, that ``A bill or joint resolution, 
amendment, or conference report carrying a Federal income tax 
rate increase may not be considered as passed or agreed to 
unless so determined by a vote of not less than three-fifths of 
the Members voting, a quorum being present.'' The Committee has 
carefully reviewed the bill, and states that the bill does not 
involve any Federal income tax rate increases within the 
meaning of the rule.

  E. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   F. Duplication of Federal Programs

    In compliance with Sec. 3(g)(2) of H. Res. 5 (114th 
Congress), the Committee states that no provision of the bill 
establishes or reauthorizes: (1) a program of the Federal 
Government known to be duplicative of another Federal program; 
(2) a program included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139; or (3) a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

                 G. Disclosure of Directed Rule Makings

    In compliance with Sec. 3(i) of H. Res. 5 (114th Congress), 
the following statement is made concerning directed rule 
makings: The Committee estimates that the bill requires no 
directed rule makings within the meaning of such section.

       VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED


  A. Text of Existing Law Amended or Repealed by the Bill, as Reported

    In compliance with clause 3(e)(1)(A) of rule XIII of the 
Rules of the House of Representatives, the text of each section 
proposed to be amended or repealed by the bill, as reported, is 
shown below:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e)(1)(A) of rule XIII of the 
Rules of the House of Representatives, the text of each section 
proposed to be amended or repealed by the bill, as reported, is 
shown below:

                          SOCIAL SECURITY ACT



           *       *       *       *       *       *       *
TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH 
CHILDREN AND FOR CHILD-WELFARE SERVICES

           *       *       *       *       *       *       *


PART B--CHILD AND FAMILY SERVICES

           *       *       *       *       *       *       *


Subpart 2--Promoting Safe and Stable Families

           *       *       *       *       *       *       *


SEC. 437. DISCRETIONARY AND TARGETED GRANTS.

  (a) Limitations on Authorization of Appropriations.--In 
addition to any amount appropriated pursuant to section 436, 
there are authorized to be appropriated to carry out this 
section $200,000,000 for each of fiscal years 2012 through 
2016.
  (b) Reservation of Certain Amounts.--From the amount (if any) 
appropriated pursuant to subsection (a) for a fiscal year, the 
Secretary shall reserve amounts as follows:
          (1) Evaluation, research, training, and technical 
        assistance.--The Secretary shall reserve 3.3 percent 
        for expenditure by the Secretary for the activities 
        described in section 436(b)(1).
          (2) State court improvements.--The Secretary shall 
        reserve 3.3 percent for grants under section 438.
          (3) Indian tribes or tribal consortia.--The Secretary 
        shall reserve 3 percent for allotment to Indian tribes 
        or tribal consortia in accordance with subsection 
        (c)(1).
  (c) Allotments.--
          (1) Indian tribes or tribal consortia.--From the 
        amount (if any) reserved pursuant to subsection (b)(3) 
        for any fiscal year, the Secretary shall allot to each 
        Indian tribe with a plan approved under this subpart an 
        amount that bears the same ratio to such reserved 
        amount as the number of children in the Indian tribe 
        bears to the total number of children in all Indian 
        tribes with State plans so approved, as determined by 
        the Secretary on the basis of the most current and 
        reliable information available to the Secretary. If a 
        consortium of Indian tribes applies and is approved for 
        a grant under this section, the Secretary shall allot 
        to the consortium an amount equal to the sum of the 
        allotments determined for each Indian tribe that is 
        part of the consortium.
          (2) Territories.--From the amount (if any) 
        appropriated pursuant to subsection (a) for any fiscal 
        year that remains after applying subection (b) for the 
        fiscal year, the Secretary shall allot to each of the 
        jurisdictions of Puerto Rico, Guam, the Virgin Islands, 
        the Northern Mariana Islands, and American Samoa an 
        amount determined in the same manner as the allotment 
        to each of such jurisdictions is determined under 
        section 423.
          (3) Other states.--From the amount (if any) 
        appropriated pursuant to subsection (a) for any fiscal 
        year that remains after applying subsection (b) and 
        paragraph (2) of this subsection for the fiscal year, 
        the Secretary shall allot to each State (other than an 
        Indian tribe) which is not specified in paragraph (2) 
        of this subsection an amount equal to such remaining 
        amount multiplied by the supplemental nutrition 
        assistance program benefits percentage (as defined in 
        section 433(c)(2)) of the State for the fiscal year.
  (d) Grants.--The Secretary may make a grant to a State which 
has a plan approved under this subpart in an amount equal to 
the lesser of--
          (1) 75 percent of the total expenditures by the State 
        for activities under the plan during the fiscal year or 
        the immediately succeeding fiscal year; or
          (2) the allotment of the State under subsection (c) 
        for the fiscal year.
  (e) Applicability of Certain Rules.--The rules of subsections 
(b) and (c) of section 434 shall apply in like manner to the 
amounts made available pursuant to subsection (a).
  (f) Targeted Grants To Increase the Well-Being of, and To 
Improve the Permanency Outcomes for, Children Affected by 
Substance Abuse.--
          (1) Purpose.--The purpose of this subsection is to 
        authorize the Secretary to make competitive grants to 
        regional partnerships to provide, through interagency 
        collaboration and integration of programs and services, 
        services and activities that are designed to increase 
        the well-being of, improve permanency outcomes for, and 
        enhance the safety of children who are in an out-of-
        home placement or are at risk of being placed in an 
        out-of-home placement as a result of a parent's or 
        caretaker's substance abuse.
          (2) Regional partnership defined.--
                  (A) In general.--In this subsection, the term 
                ``regional partnership'' means a collaborative 
                agreement (which may be established on an 
                interstate or intrastate basis) entered into by 
                at least 2 of the following:
                          (i) The State child welfare agency 
                        that is responsible for the 
                        administration of the State plan under 
                        this part and part E.
                          (ii) The State agency responsible for 
                        administering the substance abuse 
                        prevention and treatment block grant 
                        provided under subpart II of part B of 
                        title XIX of the Public Health Service 
                        Act.
                          (iii) An Indian tribe or tribal 
                        consortium.
                          (iv) Nonprofit child welfare service 
                        providers.
                          (v) For-profit child welfare service 
                        providers.
                          (vi) Community health service 
                        providers.
                          (vii) Community mental health 
                        providers.
                          (viii) Local law enforcement 
                        agencies.
                          (ix) Judges and court personnel.
                          (x) Juvenile justice officials.
                          (xi) School personnel.
                          (xii) Tribal child welfare agencies 
                        (or a consortia of such agencies).
                          (xiii) Any other providers, agencies, 
                        personnel, officials, or entities that 
                        are related to the provision of child 
                        and family services under this subpart.
                  (B) Requirements.--
                          (i) State child welfare agency 
                        partner.--Subject to clause (ii)(I), a 
                        regional partnership entered into for 
                        purposes of this subsection shall 
                        include the State child welfare agency 
                        that is responsible for the 
                        administration of the State plan under 
                        this part and part E as 1 of the 
                        partners.
                          (ii) Regional partnerships entered 
                        into by indian tribes or tribal 
                        consortia.--If an Indian tribe or 
                        tribal consortium enters into a 
                        regional partnership for purposes of 
                        this subsection, the Indian tribe or 
                        tribal consortium--
                                  (I) may (but is not required 
                                to) include such State child 
                                welfare agency as a partner in 
                                the collaborative agreement; 
                                and
                                  (II) may not enter into a 
                                collaborative agreement only 
                                with tribal child welfare 
                                agencies (or a consortium of 
                                such agencies).
                          (iii) No state agency only 
                        partnerships.--If a State agency 
                        described in clause (i) or (ii) of 
                        subparagraph (A) enters into a regional 
                        partnership for purposes of this 
                        subsection, the State agency may not 
                        enter into a collaborative agreement 
                        only with the other State agency 
                        described in such clause (i) or (ii).
          (3) Authority to award grants.--
                  (A) In general.--In addition to amounts 
                authorized to be appropriated to carry out this 
                section, the Secretary shall award grants under 
                this subsection, from the amounts reserved for 
                each of fiscal years 2012 through 2016 under 
                section 436(b)(5), to regional partnerships 
                that satisfy the requirements of this 
                subsection, in amounts that are not less than 
                $500,000 and not more than $1,000,000 per grant 
                per fiscal year.
                  (B) Required minimum period of approval.--
                          (i) In general.--A grant shall be 
                        awarded under this subsection for a 
                        period of not less than 2, and not more 
                        than 5, fiscal years, subject to clause 
                        (ii).
                          (ii) Extension of grant.--On 
                        application of the grantee, the 
                        Secretary may extend for not more than 
                        2 fiscal years the period for which a 
                        grant is awarded under this subsection.
                  (C) Multiple grants allowed.--This subsection 
                shall not be interpreted to prevent a grantee 
                from applying for, or being awarded, separate 
                grants under this subsection.
          (4) Application requirements.--To be eligible for a 
        grant under this subsection, a regional partnership 
        shall submit to the Secretary a written application 
        containing the following:
                  (A) Recent evidence demonstrating that 
                substance abuse has had a substantial impact on 
                the number of out-of-home placements for 
                children, or the number of children who are at 
                risk of being placed in an out-of-home 
                placement, in the partnership region.
                  (B) A description of the goals and outcomes 
                to be achieved during the funding period for 
                the grant that will--
                          (i) enhance the well-being of 
                        children receiving services or taking 
                        part in activities conducted with funds 
                        provided under the grant;
                          (ii) lead to safety and permanence 
                        for such children; and
                          (iii) decrease the number of out-of-
                        home placements for children, or the 
                        number of children who are at risk of 
                        being placed in an out-of-home 
                        placement, in the partnership region.
                  (C) A description of the joint activities to 
                be funded in whole or in part with the funds 
                provided under the grant, including the 
                sequencing of the activities proposed to be 
                conducted under the funding period for the 
                grant.
                  (D) A description of the strategies for 
                integrating programs and services determined to 
                be appropriate for the child and where 
                appropriate, the child's family.
                  (E) A description of the strategies for--
                          (i) collaborating with the State 
                        child welfare agency described in 
                        paragraph (2)(A)(i) (unless that agency 
                        is the lead applicant for the regional 
                        partnership); and
                          (ii) consulting, as appropriate, 
                        with--
                                  (I) the State agency 
                                described in paragraph 
                                (2)(A)(ii); and
                                  (II) the State law 
                                enforcement and judicial 
                                agencies.
                To the extent the Secretary determines that the 
                requirement of this subparagraph would be 
                inappropriate to apply to a regional 
                partnership that includes an Indian tribe, 
                tribal consortium, or a tribal child welfare 
                agency or a consortium of such agencies, the 
                Secretary may exempt the regional partnership 
                from the requirement.
                  (F) Such other information as the Secretary 
                may require.
          (5) Use of funds.--Funds made available under a grant 
        made under this subsection shall only be used for 
        services or activities that are consistent with the 
        purpose of this subsection and may include the 
        following:
                  (A) Family-based comprehensive long-term 
                substance abuse treatment services.
                  (B) Early intervention and preventative 
                services.
                  (C) Children and family counseling.
                  (D) Mental health services.
                  (E) Parenting skills training.
                  (F) Replication of successful models for 
                providing family-based comprehensive long-term 
                substance abuse treatment services.
          (6) Matching requirement.--
                  (A) Federal share.--A grant awarded under 
                this subsection shall be available to pay a 
                percentage share of the costs of services 
                provided or activities conducted under such 
                grant, not to exceed--
                          (i) 85 percent for the first and 
                        second fiscal years for which the grant 
                        is awarded to a recipient;
                          (ii) 80 percent for the third and 
                        fourth such fiscal years;
                          (iii) 75 percent for the fifth such 
                        fiscal year;
                          (iv) 70 percent for the sixth such 
                        fiscal year; and
                          (v) 65 percent for the seventh such 
                        fiscal year.
                  (B) Non-federal share.--The non-Federal share 
                of the cost of services provided or activities 
                conducted under a grant awarded under this 
                subsection may be in cash or in kind. In 
                determining the amount of the non-Federal 
                share, the Secretary may attribute fair market 
                value to goods, services, and facilities 
                contributed from non-Federal sources.
          (7) Considerations in awarding grants.--In awarding 
        grants under this subsection, the Secretary shall take 
        into consideration the extent to which applicant 
        regional partnerships--
                  (A) demonstrate that substance abuse by 
                parents or caretakers has had a substantial 
                impact on the number of out-of-home placements 
                for children, or the number of children who are 
                at risk of being placed in an out-of-home 
                placement, in the partnership region;
                  (B) have limited resources for addressing the 
                needs of children affected by such abuse;
                  (C) have a lack of capacity for, or access 
                to, comprehensive family treatment services; 
                and
                  (D) demonstrate a plan for sustaining the 
                services provided by or activities funded under 
                the grant after the conclusion of the grant 
                period.
          (8) Performance indicators.--
                  (A) In general.--Not later than 9 months 
                after the date of enactment of this subsection, 
                the Secretary shall establish indicators that 
                will be used to assess periodically the 
                performance of the grant recipients under this 
                subsection in using funds made available under 
                such grants to achieve the purpose of this 
                subsection.
                  (B) Consultation required.--In establishing 
                the performance indicators required by 
                subparagraph (A), the Secretary shall consult 
                with the following:
                          (i) The Assistant Secretary for the 
                        Administration for Children and 
                        Families.
                          (ii) The Administrator of the 
                        Substance Abuse and Mental Health 
                        Services Administration.
                          (iii) Representatives of States in 
                        which a State agency described in 
                        clause (i) or (ii) of paragraph (2)(A) 
                        is a member of a regional partnership 
                        that is a grant recipient under this 
                        subsection.
                          (iv) Representatives of Indian 
                        tribes, tribal consortia, or tribal 
                        child welfare agencies that are members 
                        of a regional partnership that is a 
                        grant recipient under this subsection.
          (9) Reports.--
                  (A) Grantee reports.--
                          (i) Annual report.--Not later than 
                        September 30 of the first fiscal year 
                        in which a recipient of a grant under 
                        this subsection is paid funds under the 
                        grant, and annually thereafter until 
                        September 30 of the last fiscal year in 
                        which the recipient is paid funds under 
                        the grant, the recipient shall submit 
                        to the Secretary a report on the 
                        services provided or activities carried 
                        out during that fiscal year with such 
                        funds. The report shall contain such 
                        information as the Secretary determines 
                        is necessary to provide an accurate 
                        description of the services provided or 
                        activities conducted with such funds.
                          (ii) Incorporation of information 
                        related to performance indicators.--
                        Each recipient of a grant under this 
                        subsection shall incorporate into the 
                        first annual report required by clause 
                        (i) that is submitted after the 
                        establishment of performance indicators 
                        under paragraph (8), information 
                        required in relation to such 
                        indicators.
                  (B) Reports to congress.--On the basis of the 
                reports submitted under subparagraph (A), the 
                Secretary annually 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--
                          (i) the services provided and 
                        activities conducted with funds 
                        provided under grants awarded under 
                        this subsection;
                          (ii) the performance indicators 
                        established under paragraph (8); and
                          (iii) the progress that has been made 
                        in addressing the needs of families 
                        with substance abuse problems who come 
                        to the attention of the child welfare 
                        system and in achieving the goals of 
                        child safety, permanence, and family 
                        stability.
          (10) Limitation on use of funds for administrative 
        expenses of the secretary.--Not more than 5 percent of 
        the amounts appropriated or reserved for awarding 
        grants under this subsection for each of fiscal years 
        2012 through 2016 may be used by the Secretary for 
        salaries and Department of Health and Human Services 
        administrative expenses in administering this 
        subsection.

           *       *       *       *       *       *       *


Part E--Federal Payments for Foster Care and Adoption Assistance

           *       *       *       *       *       *       *


           STATE PLAN FOR FOSTER CARE AND ADOPTION ASSISTANCE

  Sec. 471. (a) In order for a State to be eligible for 
payments under this part, it shall have a plan approved by the 
Secretary which--
          (1) provides for foster care maintenance payments in 
        accordance with section 472 and for adoption assistance 
        in accordance with section 473;
          (2) provides that the State agency responsible for 
        administering the program authorized by subpart 1 of 
        part B of this title shall administer, or supervise the 
        administration of, the program authorized by this part;
          (3) provides that the plan shall be in effect in all 
        political subdivisions of the State, and, if 
        administered by them, be mandatory upon them;
          (4) provides that the State shall assure that the 
        programs at the local level assisted under this part 
        will be coordinated with the programs at the State or 
        local level assisted under parts A and B of this title, 
        under subtitle 1 of title XX of this Act, and under any 
        other appropriate provision of Federal law;
          (5) provides that the State will, in the 
        administration of its programs under this part, use 
        such methods relating to the establishment and 
        maintenance of personnel standards on a merit basis as 
        are found by the Secretary to be necessary for the 
        proper and efficient operation of the programs, except 
        that the Secretary shall exercise no authority with 
        respect to the selection, tenure of office, or 
        compensation of any individual employed in accordance 
        with such methods;
          (6) provides that the State agency referred to in 
        paragraph (2) (hereinafter in this part referred to as 
        the ``State agency'') will make such reports, in such 
        form and containing such information as the Secretary 
        may from time to time require, and comply with such 
        provisions as the Secretary may from time to time find 
        necessary to assure the correctness and verification of 
        such reports;
          (7) provides that the State agency will monitor and 
        conduct periodic evaluations of activities carried out 
        under this part;
          (8) subject to subsection (c), provides safeguards 
        which restrict the use of or disclosure of information 
        concerning individuals assisted under the State plan to 
        purposes directly connected with (A) the administration 
        of the plan of the State approved under this part, the 
        plan or program of the State under part A, B, or D of 
        this title or under title I, V, X, XIV, XVI (as in 
        effect in Puerto Rico, Guam, and the Virgin Islands), 
        XIX, or XX, or the supplemental security income program 
        established by title XVI, (B) any investigation, 
        prosecution, or criminal or civil proceeding, conducted 
        in connection with the administration of any such plan 
        or program, (C) the administration of any other Federal 
        or federally assisted program which provides 
        assistance, in cash or in kind, or services, directly 
        to individuals on the basis of need, (D) any audit or 
        similar activity conducted in connection with the 
        administration of any such plan or program by any 
        governmental agency which is authorized by law to 
        conduct such audit or activity, and (E) reporting and 
        providing information pursuant to paragraph (9) to 
        appropriate authorities with respect to known or 
        suspected child abuse or neglect; and the safeguards so 
        provided shall prohibit disclosure, to any committee or 
        legislative body (other than an agency referred to in 
        clause (D) with respect to an activity referred to in 
        such clause), of any information which identifies by 
        name or address any such applicant or recipient; except 
        that nothing contained herein shall preclude a State 
        from providing standards which restrict disclosures to 
        purposes more limited than those specified herein, or 
        which, in the case of adoptions, prevent disclosure 
        entirely;
          (9) provides that the State agency will--
                  (A) report to an appropriate agency or 
                official, known or suspected instances of 
                physical or mental injury, sexual abuse or 
                exploitation, or negligent treatment or 
                maltreatment of a child receiving aid under 
                part B or this part under circumstances which 
                indicate that the child's health or welfare is 
                threatened thereby;
                  (B) provide such information with respect to 
                a situation described in subparagraph (A) as 
                the State agency may have; and
                  (C) not later than--
                          (i) 1 year after the date of 
                        enactment of this subparagraph, 
                        demonstrate to the Secretary that the 
                        State agency has developed, in 
                        consultation with State and local law 
                        enforcement, juvenile justice systems, 
                        health care providers, education 
                        agencies, and organizations with 
                        experience in dealing with at-risk 
                        children and youth, policies and 
                        procedures (including relevant training 
                        for caseworkers) for identifying, 
                        documenting in agency records, and 
                        determining appropriate services with 
                        respect to--
                                  (I) any child or youth over 
                                whom the State agency has 
                                responsibility for placement, 
                                care, or supervision and who 
                                the State has reasonable cause 
                                to believe is, or is at risk of 
                                being, a sex trafficking victim 
                                (including children for whom a 
                                State child welfare agency has 
                                an open case file but who have 
                                not been removed from the home, 
                                children who have run away from 
                                foster care and who have not 
                                attained 18 years of age or 
                                such older age as the State has 
                                elected under section 475(8) of 
                                this Act, and youth who are not 
                                in foster care but are 
                                receiving services under 
                                section 477 of this Act); and
                                  (II) at the option of the 
                                State, any individual who has 
                                not attained 26 years of age, 
                                without regard to whether the 
                                individual is or was in foster 
                                care under the responsibility 
                                of the State; and
                          (ii) 2 years after such date of 
                        enactment, demonstrate to the Secretary 
                        that the State agency is implementing 
                        the policies and procedures referred to 
                        in clause (i).
          (10) provides--
                  (A) for the establishment or designation of a 
                State authority or authorities that shall be 
                responsible for establishing and maintaining 
                standards for foster family homes and child 
                care institutions which are reasonably in 
                accord with recommended standards of national 
                organizations concerned with standards for the 
                institutions or homes, including standards 
                related to admission policies, safety, 
                sanitation, and protection of civil rights, and 
                which shall permit use of the reasonable and 
                prudent parenting standard;
                  (B) that the standards established pursuant 
                to subparagraph (A) shall be applied by the 
                State to any foster family home or child care 
                institution receiving funds under this part or 
                part B and shall require, as a condition of 
                each contract entered into by a child care 
                institution to provide foster care, the 
                presence on-site of at least 1 official who, 
                with respect to any child placed at the child 
                care institution, is designated to be the 
                caregiver who is authorized to apply the 
                reasonable and prudent parent standard to 
                decisions involving the participation of the 
                child in age or developmentally-appropriate 
                activities, and who is provided with training 
                in how to use and apply the reasonable and 
                prudent parent standard in the same manner as 
                prospective foster parents are provided the 
                training pursuant to paragraph (24);
                  (C) that the standards established pursuant 
                to subparagraph (A) shall include policies 
                related to the liability of foster parents and 
                private entities under contract by the State 
                involving the application of the reasonable and 
                prudent parent standard, to ensure appropriate 
                liability for caregivers when a child 
                participates in an approved activity and the 
                caregiver approving the activity acts in 
                accordance with the reasonable and prudent 
                parent standard; and
                  (D) that a waiver of any standards 
                established pursuant to subparagraph (A) may be 
                made only on a case-by-case basis for nonsafety 
                standards (as determined by the State) in 
                relative foster family homes for specific 
                children in care;
          (11) provides for periodic review of the standards 
        referred to in the preceding paragraph and amounts paid 
        as foster care maintenance payments and adoption 
        assistance to assure their continuing appropriateness;
          (12) provides for granting an opportunity for a fair 
        hearing before the State agency to any individual whose 
        claim for benefits available pursuant to this part is 
        denied or is not acted upon with reasonable promptness;
          (13) provides that the State shall arrange for a 
        periodic and independently conducted audit of the 
        programs assisted under this part and part B of this 
        title, which shall be conducted no less frequently than 
        once every three years;
          (14) provides (A) specific goals (which shall be 
        established by State law on or before October 1, 1982) 
        for each fiscal year (commencing with the fiscal year 
        which begins on October 1, 1983) as to the maximum 
        number of children (in absolute numbers or as a 
        percentage of all children in foster care with respect 
        to whom assistance under the plan is provided during 
        such year) who, at any time during such year, will 
        remain in foster care after having been in such care 
        for a period in excess of twenty-four months, and (B) a 
        description of the steps which will be taken by the 
        State to achieve such goals;
          (15) provides that--
                  (A) in determining reasonable efforts to be 
                made with respect to a child, as described in 
                this paragraph, and in making such reasonable 
                efforts, the child's health and safety shall be 
                the paramount concern;
                  (B) except as provided in subparagraph (D), 
                reasonable efforts shall be made to preserve 
                and reunify 
                families--
                          (i) prior to the placement of a child 
                        in foster care, to prevent or eliminate 
                        the need for removing the child from 
                        the child's home; and
                          (ii) to make it possible for a child 
                        to safely return to the child's home;
                  (C) if continuation of reasonable efforts of 
                the type described in subparagraph (B) is 
                determined to be inconsistent with the 
                permanency plan for the child, reasonable 
                efforts shall be made to place the child in a 
                timely manner in accordance with the permanency 
                plan (including, if appropriate, through an 
                interstate placement), and to complete whatever 
                steps are necessary to finalize the permanent 
                placement of the child;
                  (D) reasonable efforts of the type described 
                in subparagraph (B) shall not be required to be 
                made with respect to a parent of a child if a 
                court of competent jurisdiction has determined 
                that--
                          (i) the parent has subjected the 
                        child to aggravated circumstances (as 
                        defined in State law, which definition 
                        may include but need not be limited to 
                        abandonment, torture, chronic abuse, 
                        and sexual abuse);
                          (ii) the parent has--
                                  (I) committed murder (which 
                                would have been an offense 
                                under section 1111(a) of title 
                                18, United States Code, if the 
                                offense had occurred in the 
                                special maritime or territorial 
                                jurisdiction of the United 
                                States) of another child of the 
                                parent;
                                  (II) committed voluntary 
                                manslaughter (which would have 
                                been an offense under section 
                                1112(a) of title 18, United 
                                States Code, if the offense had 
                                occurred in the special 
                                maritime or territorial 
                                jurisdiction of the United 
                                States) of another child of the 
                                parent;
                                  (III) aided or abetted, 
                                attempted, conspired, or 
                                solicited to commit such a 
                                murder or such a voluntary 
                                manslaughter; or
                                  (IV) committed a felony 
                                assault that results in serious 
                                bodily injury to the child or 
                                another child of the parent; or
                          (iii) the parental rights of the 
                        parent to a sibling have been 
                        terminated involuntarily;
                  (E) if reasonable efforts of the type 
                described in subparagraph (B) are not made with 
                respect to a child as a result of a 
                determination made by a court of competent 
                jurisdiction in accordance with subparagraph 
                (D)--
                          (i) a permanency hearing (as 
                        described in section 475(5)(C)), which 
                        considers in-State and out-of-State 
                        permanent placement options for the 
                        child, shall be held for the child 
                        within 30 days after the determination; 
                        and
                          (ii) reasonable efforts shall be made 
                        to place the child in a timely manner 
                        in accordance with the permanency plan, 
                        and to complete whatever steps are 
                        necessary to finalize the permanent 
                        placement of the child; and
                  (F) reasonable efforts to place a child for 
                adoption or with a legal guardian, including 
                identifying appropriate in-State and out-of-
                State placements may be made concurrently with 
                reasonable efforts of the type described in 
                subparagraph (B);
          (16) provides for the development of a case plan (as 
        defined in section 475(1) and in accordance with the 
        requirements of section 475A) for each child receiving 
        foster care maintenance payments under the State plan 
        and provides for a case review system which meets the 
        requirements described in sections 475(5) and 475A with 
        respect to each such child;
          (17) provides that, where appropriate, all steps will 
        be taken, including cooperative efforts with the State 
        agencies administering the program funded under part A 
        and plan approved under part D, to secure an assignment 
        to the State of any rights to support on behalf of each 
        child receiving foster care maintenance payments under 
        this part;
          (18) not later than January 1, 1997, provides that 
        neither the State nor any other entity in the State 
        that receives funds from the Federal Government and is 
        involved in adoption or foster care placements may--
                  (A) deny to any person the opportunity to 
                become an adoptive or a foster parent, on the 
                basis of the race, color, or national origin of 
                the person, or of the child, involved; or
                  (B) delay or deny the placement of a child 
                for adoption or into foster care, on the basis 
                of the race, color, or national origin of the 
                adoptive or foster parent, or the child, 
                involved;
          (19) provides that the State shall consider giving 
        preference to an adult relative over a non-related 
        caregiver when determining a placement for a child, 
        provided that the relative caregiver meets all relevant 
        State child protection standards;
          (20)(A) provides procedures for criminal records 
        checks, including fingerprint-based checks of national 
        crime information databases (as defined in section 
        534(e)(3)(A) of title 28, United States Code), for any 
        prospective foster or adoptive parent before the foster 
        or adoptive parent may be finally approved for 
        placement of a child regardless of whether foster care 
        maintenance payments or adoption assistance payments 
        are to be made on behalf of the child under the State 
        plan under this part, including procedures requiring 
        that--
                  (i) in any case involving a child on whose 
                behalf such payments are to be so made in which 
                a record check reveals a felony conviction for 
                child abuse or neglect, for spousal abuse, for 
                a crime against children (including child 
                pornography), or for a crime involving 
                violence, including rape, sexual assault, or 
                homicide, but not including other physical 
                assault or battery, if a State finds that a 
                court of competent jurisdiction has determined 
                that the felony was committed at any time, such 
                final approval shall not be granted; and
                  (ii) in any case involving a child on whose 
                behalf such payments are to be so made in which 
                a record check reveals a felony conviction for 
                physical assault, battery, or a drug-related 
                offense, if a State finds that a court of 
                competent jurisdiction has determined that the 
                felony was committed within the past 5 years, 
                such final approval shall not be granted; and
          (B) provides that the State shall--
                  (i) check any child abuse and neglect 
                registry maintained by the State for 
                information on any prospective foster or 
                adoptive parent and on any other adult living 
                in the home of such a prospective parent, and 
                request any other State in which any such 
                prospective parent or other adult has resided 
                in the preceding 5 years, to enable the State 
                to check any child abuse and neglect registry 
                maintained by such other State for such 
                information, before the prospective foster or 
                adoptive parent may be finally approved for 
                placement of a child, regardless of whether 
                foster care maintenance payments or adoption 
                assistance payments are to be made on behalf of 
                the child under the State plan under this part;
                  (ii) comply with any request described in 
                clause (i) that is received from another State; 
                and
                  (iii) have in place safeguards to prevent the 
                unauthorized disclosure of information in any 
                child abuse and neglect registry maintained by 
                the State, and to prevent any such information 
                obtained pursuant to this subparagraph from 
                being used for a purpose other than the 
                conducting of background checks in foster or 
                adoptive placement cases; and
          (C) provides procedures for criminal records checks, 
        including fingerprint-based checks of national crime 
        information databases (as defined in section 
        534(e)(3)(A) of title 28, United States Code), on any 
        relative guardian, and for checks described in 
        subparagraph (B) of this paragraph on any relative 
        guardian and any other adult living in the home of any 
        relative guardian, before the relative guardian may 
        receive kinship guardianship assistance payments on 
        behalf of the child under the State plan under this 
        part;
          (21) provides for health insurance coverage 
        (including, at State option, through the program under 
        the State plan approved under title XIX) for any child 
        who has been determined to be a child with special 
        needs, for whom there is in effect an adoption 
        assistance agreement (other than an agreement under 
        this part) between the State and an adoptive parent or 
        parents, and who the State has determined cannot be 
        placed with an adoptive parent or parents without 
        medical assistance because such child has special needs 
        for medical, mental health, or rehabilitative care, and 
        that with respect to the provision of such health 
        insurance coverage--
                  (A) such coverage may be provided through 1 
                or more State medical assistance programs;
                  (B) the State, in providing such coverage, 
                shall ensure that the medical benefits, 
                including mental health benefits, provided are 
                of the same type and kind as those that would 
                be provided for children by the State under 
                title XIX;
                  (C) in the event that the State provides such 
                coverage through a State medical assistance 
                program other than the program under title XIX, 
                and the State exceeds its funding for services 
                under such other program, any such child shall 
                be deemed to be receiving aid or assistance 
                under the State plan under this part for 
                purposes of section 1902(a)(10)(A)(i)(I); and
                  (D) in determining cost-sharing requirements, 
                the State shall take into consideration the 
                circumstances of the adopting parent or parents 
                and the needs of the child being adopted 
                consistent, to the extent coverage is provided 
                through a State medical assistance program, 
                with the rules under such program;
          (22) provides that, not later than January 1, 1999, 
        the State shall develop and implement standards to 
        ensure that children in foster care placements in 
        public or private agencies are provided quality 
        services that protect the safety and health of the 
        children;
          (23) provides that the State shall not--
                  (A) deny or delay the placement of a child 
                for adoption when an approved family is 
                available outside of the 
                jurisdiction with responsibility for handling 
                the case of the child; or
                  (B) fail to grant an opportunity for a fair 
                hearing, as described in paragraph (12), to an 
                individual whose allegation of a violation of 
                subparagraph (A) of this paragraph is denied by 
                the State or not acted upon by the State with 
                reasonable promptness;
          (24) includes a certification that, before a child in 
        foster care under the responsibility of the State is 
        placed with prospective foster parents, the prospective 
        foster parents will be prepared adequately with the 
        appropriate knowledge and skills to provide for the 
        needs of the child, that the preparation will be 
        continued, as necessary, after the placement of the 
        child, and that the preparation shall include knowledge 
        and skills relating to the reasonable and prudent 
        parent standard for the participation of the child in 
        age or developmentally-appropriate activities, 
        including knowledge and skills relating to the 
        developmental stages of the cognitive, emotional, 
        physical, and behavioral capacities of a child, and 
        knowledge and skills relating to applying the standard 
        to decisions such as whether to allow the child to 
        engage in social, extracurricular, enrichment, 
        cultural, and social activities, including sports, 
        field trips, and overnight activities lasting 1 or more 
        days, and to decisions involving the signing of 
        permission slips and arranging of transportation for 
        the child to and from extracurricular, enrichment, and 
        social activities;
          (25) provide that the State shall have in effect 
        procedures for the orderly and timely interstate 
        placement of children; and procedures implemented in 
        accordance with an interstate compact, if incorporating 
        with the procedures prescribed by paragraph (26), shall 
        be considered to satisfy the requirement of this 
        paragraph;
          (26) provides that--
                  (A)(i) within 60 days after the State 
                receives from another State a request to 
                conduct a study of a home environment for 
                purposes of assessing the safety and 
                suitability of placing a child in the home, the 
                State shall, directly or by contract--
                          (I) conduct and complete the study; 
                        and
                          (II) return to the other State a 
                        report on the results of the study, 
                        which shall address the extent to which 
                        placement in the home would meet the 
                        needs of the child; and
                  (ii) in the case of a home study begun on or 
                before September 30, 2008, if the State fails 
                to comply with clause (i) within the 60-day 
                period as a result of circumstances beyond the 
                control of the State (such as a failure by a 
                Federal agency to provide the results of a 
                background check, or the failure by any entity 
                to provide completed medical forms, requested 
                by the State at least 45 days before the end of 
                the 60-day period), the State shall have 75 
                days to comply with clause (i) if the State 
                documents the circumstances involved and 
                certifies that completing the home study is in 
                the best interests of the child; except that
                  (iii) this subparagraph shall not be 
                construed to require the State to have 
                completed, within the applicable period, the 
                parts of the home study involving the education 
                and training of the prospective foster or 
                adoptive parents;
                  (B) the State shall treat any report 
                described in subparagraph (A) that is received 
                from another State or an Indian tribe (or from 
                a private agency under contract with another 
                State) as meeting any requirements imposed by 
                the State for the completion of a home study 
                before placing a child in the home, unless, 
                within 14 days after receipt of the report, the 
                State determines, based on grounds that are 
                specific to the content of the report, that 
                making a decision in reliance on the report 
                would be contrary to the welfare of the child; 
                and
                  (C) the State shall not impose any 
                restriction on the ability of a State agency 
                administering, or supervising the 
                administration of, a State program operated 
                under a State plan approved under this part to 
                contract with a private agency for the conduct 
                of a home study described in subparagraph (A);
          (27) provides that, with respect to any child in 
        foster care under the responsibility of the State under 
        this part or part B and without regard to whether 
        foster care maintenance payments are made under section 
        472 on behalf of the child, the State has in effect 
        procedures for verifying the citizenship or immigration 
        status of the child;
          (28) at the option of the State, provides for the 
        State to enter into kinship guardianship assistance 
        agreements to provide kinship guardianship assistance 
        payments on behalf of children to grandparents and 
        other relatives who have assumed legal guardianship of 
        the children for whom they have cared as foster parents 
        and for whom they have committed to care on a permanent 
        basis, as provided in section 473(d);
          (29) provides that, within 30 days after the removal 
        of a child from the custody of the parent or parents of 
        the child, the State shall exercise due diligence to 
        identify and provide notice to the following relatives: 
        all adult grandparents, all parents of a sibling of the 
        child, where such parent has legal custody of such 
        sibling, and other adult relatives of the child 
        (including any other adult relatives suggested by the 
        parents), subject to exceptions due to family or 
        domestic violence, that--
                  (A) specifies that the child has been or is 
                being removed from the custody of the parent or 
                parents of the child;
                  (B) explains the options the relative has 
                under Federal, State, and local law to 
                participate in the care and placement of the 
                child, including any options that may be lost 
                by failing to respond to the notice;
                  (C) describes the requirements under 
                paragraph (10) of this subsection to become a 
                foster family home and the additional services 
                and supports that are available for children 
                placed in such a home; and
                  (D) if the State has elected the option to 
                make kinship guardianship assistance payments 
                under paragraph (28) of this subsection, 
                describes how the relative guardian of the 
                child may subsequently enter into an agreement 
                with the State under section 473(d) to receive 
                the payments;
          (30) provides assurances that each child who has 
        attained the minimum age for compulsory school 
        attendance under State law and with respect to whom 
        there is eligibility for a payment under the State plan 
        is a full-time elementary or secondary school student 
        or has completed secondary school, and for purposes of 
        this paragraph, the term ``elementary or secondary 
        school student'' means, with respect to a child, that 
        the child is--
                  (A) enrolled (or in the process of enrolling) 
                in an institution which provides elementary or 
                secondary education, as determined under the 
                law of the State or other jurisdiction in which 
                the institution is located;
                  (B) instructed in elementary or secondary 
                education at home in accordance with a home 
                school law of the State or other jurisdiction 
                in which the home is located;
                  (C) in an independent study elementary or 
                secondary education program in accordance with 
                the law of the State or other jurisdiction in 
                which the program is located, which is 
                administered by the local school or school 
                district; or
                  (D) incapable of attending school on a full-
                time basis due to the medical condition of the 
                child, which incapability is supported by 
                regularly updated information in the case plan 
                of the child;
          (31) provides that reasonable efforts shall be made--
                  (A) to place siblings removed from their home 
                in the same foster care, kinship guardianship, 
                or adoptive placement, unless the State 
                documents that such a joint placement would be 
                contrary to the safety or well-being of any of 
                the siblings; and
                  (B) in the case of siblings removed from 
                their home who are not so jointly placed, to 
                provide for frequent visitation or other 
                ongoing interaction between the siblings, 
                unless that State documents that frequent 
                visitation or other ongoing interaction would 
                be contrary to the safety or well-being of any 
                of the siblings;
          (32) provides that the State will negotiate in good 
        faith with any Indian tribe, tribal organization or 
        tribal consortium in the State that requests to develop 
        an agreement with the State to administer all or part 
        of the program under this part on behalf of Indian 
        children who are under the authority of the tribe, 
        organization, or consortium, including foster care 
        maintenance payments on behalf of children who are 
        placed in State or tribally licensed foster family 
        homes, adoption assistance payments, and, if the State 
        has elected to provide such payments, kinship 
        guardianship assistance payments under section 473(d), 
        and tribal access to resources for administration, 
        training, and data collection under this part;
          (33) provides that the State will inform any 
        individual who is adopting, or whom the State is made 
        aware is considering adopting, a child who is in foster 
        care under the responsibility of the State of the 
        potential eligibility of the individual for a Federal 
        tax credit under section 23 of the Internal Revenue 
        Code of 1986;
          (34) provides that, for each child or youth described 
        in paragraph (9)(C)(i)(I), the State agency shall--
                  (A) not later than 2 years after the date of 
                the enactment of this paragraph, report 
                immediately, and in no case later than 24 hours 
                after receiving information on children or 
                youth who have been identified as being a sex 
                trafficking victim, to the law enforcement 
                authorities; and
                  (B) not later than 3 years after such date of 
                enactment and annually thereafter, report to 
                the Secretary the total number of children and 
                youth who are sex trafficking victims; and
          (35) provides that--
                  (A) not later than 1 year after the date of 
                the enactment of this paragraph, the State 
                shall develop and implement specific protocols 
                for--
                          (i) expeditiously locating any child 
                        missing from foster care;
                          (ii) determining the primary factors 
                        that contributed to the child's running 
                        away or otherwise being absent from 
                        care, and to the extent possible and 
                        appropriate, responding to those 
                        factors in current and subsequent 
                        placements;
                          (iii) determining the child's 
                        experiences while absent from care, 
                        including screening the child to 
                        determine if the child is a possible 
                        sex trafficking victim (as defined in 
                        section 475(9)(A)); and
                          (iv) reporting such related 
                        information as required by the 
                        Secretary; and
                  (B) not later than 2 years after such date of 
                enactment, for each child and youth described 
                in paragraph (9)(C)(i)(I) of this subsection, 
                the State agency shall report immediately, and 
                in no case later than 24 hours after receiving, 
                information on missing or abducted children or 
                youth to the law enforcement authorities for 
                entry into the National Crime Information 
                Center (NCIC) database of the Federal Bureau of 
                Investigation, established pursuant to section 
                534 of title 28, United States Code, and to the 
                National Center for Missing and Exploited 
                Children.
  (b) The Secretary shall approve any plan which complies with 
the provisions of subsection (a) of this section.
  (c) Use of Child Welfare Records in State Court 
Proceedings.--Subsection (a)(8) shall not be construed to limit 
the flexibility of a State in determining State policies 
relating to public access to court proceedings to determine 
child abuse and neglect or other court hearings held pursuant 
to part B or this part, except that such policies shall, at a 
minimum, ensure the safety and well-being of the child, 
parents, and family.
  (d) Annual Reports by the Secretary on Number of Children and 
Youth Reported by States To Be Sex Trafficking Victims.--Not 
later than 4 years after the date of the enactment of this 
subsection and annually thereafter, the Secretary shall report 
to the Congress and make available to the public on the 
Internet website of the Department of Health and Human Services 
the number of children and youth reported in accordance with 
subsection (a)(34)(B) of this section to be sex trafficking 
victims (as defined in section 475(9)(A)).

           *       *       *       *       *       *       *


      B. Changes in Existing Law Proposed by the Bill, as Reported

    In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
proposed by the bill, as reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
proposed by the bill, as reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets and existing law in which no change is proposed is 
shown in roman):

                          SOCIAL SECURITY ACT



           *       *       *       *       *       *       *
TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH 
CHILDREN AND FOR CHILD-WELFARE SERVICES

           *       *       *       *       *       *       *


PART B--CHILD AND FAMILY SERVICES

           *       *       *       *       *       *       *


Subpart 2--Promoting Safe and Stable Families

           *       *       *       *       *       *       *


SEC. 437. DISCRETIONARY AND TARGETED GRANTS.

  (a) Limitations on Authorization of Appropriations.--In 
addition to any amount appropriated pursuant to section 436, 
there are authorized to be appropriated to carry out this 
section $200,000,000 for each of fiscal years 2012 through 
[2016] 2017.
  (b) Reservation of Certain Amounts.--From the amount (if any) 
appropriated pursuant to subsection (a) for a fiscal year, the 
Secretary shall reserve amounts as follows:
          (1) Evaluation, research, training, and technical 
        assistance.--The Secretary shall reserve 3.3 percent 
        for expenditure by the Secretary for the activities 
        described in section 436(b)(1).
          (2) State court improvements.--The Secretary shall 
        reserve 3.3 percent for grants under section 438.
          (3) Indian tribes or tribal consortia.--The Secretary 
        shall reserve 3 percent for allotment to Indian tribes 
        or tribal consortia in accordance with subsection 
        (c)(1).
          (4) Improving the interstate placement of children.--
        The Secretary shall reserve $5,000,000 of the amount 
        made available for fiscal year 2017 for grants under 
        subsection (g), and the amount so reserved shall remain 
        available through fiscal year 2021.
  (c) Allotments.--
          (1) Indian tribes or tribal consortia.--From the 
        amount (if any) reserved pursuant to subsection (b)(3) 
        for any fiscal year, the Secretary shall allot to each 
        Indian tribe with a plan approved under this subpart an 
        amount that bears the same ratio to such reserved 
        amount as the number of children in the Indian tribe 
        bears to the total number of children in all Indian 
        tribes with State plans so approved, as determined by 
        the Secretary on the basis of the most current and 
        reliable information available to the Secretary. If a 
        consortium of Indian tribes applies and is approved for 
        a grant under this section, the Secretary shall allot 
        to the consortium an amount equal to the sum of the 
        allotments determined for each Indian tribe that is 
        part of the consortium.
          (2) Territories.--From the amount (if any) 
        appropriated pursuant to subsection (a) for any fiscal 
        year that remains after applying subection (b) for the 
        fiscal year, the Secretary shall allot to each of the 
        jurisdictions of Puerto Rico, Guam, the Virgin Islands, 
        the Northern Mariana Islands, and American Samoa an 
        amount determined in the same manner as the allotment 
        to each of such jurisdictions is determined under 
        section 423.
          (3) Other states.--From the amount (if any) 
        appropriated pursuant to subsection (a) for any fiscal 
        year that remains after applying subsection (b) and 
        paragraph (2) of this subsection for the fiscal year, 
        the Secretary shall allot to each State (other than an 
        Indian tribe) which is not specified in paragraph (2) 
        of this subsection an amount equal to such remaining 
        amount multiplied by the supplemental nutrition 
        assistance program benefits percentage (as defined in 
        section 433(c)(2)) of the State for the fiscal year.
  (d) Grants.--The Secretary may make a grant to a State which 
has a plan approved under this subpart in an amount equal to 
the lesser of--
          (1) 75 percent of the total expenditures by the State 
        for activities under the plan during the fiscal year or 
        the immediately succeeding fiscal year; or
          (2) the allotment of the State under subsection (c) 
        for the fiscal year.
  (e) Applicability of Certain Rules.--The rules of subsections 
(b) and (c) of section 434 shall apply in like manner to the 
amounts made available pursuant to subsection (a).
  (f) Targeted Grants To Increase the Well-Being of, and To 
Improve the Permanency Outcomes for, Children Affected by 
Substance Abuse.--
          (1) Purpose.--The purpose of this subsection is to 
        authorize the Secretary to make competitive grants to 
        regional partnerships to provide, through interagency 
        collaboration and integration of programs and services, 
        services and activities that are designed to increase 
        the well-being of, improve permanency outcomes for, and 
        enhance the safety of children who are in an out-of-
        home placement or are at risk of being placed in an 
        out-of-home placement as a result of a parent's or 
        caretaker's substance abuse.
          (2) Regional partnership defined.--
                  (A) In general.--In this subsection, the term 
                ``regional partnership'' means a collaborative 
                agreement (which may be established on an 
                interstate or intrastate basis) entered into by 
                at least 2 of the following:
                          (i) The State child welfare agency 
                        that is responsible for the 
                        administration of the State plan under 
                        this part and part E.
                          (ii) The State agency responsible for 
                        administering the substance abuse 
                        prevention and treatment block grant 
                        provided under subpart II of part B of 
                        title XIX of the Public Health Service 
                        Act.
                          (iii) An Indian tribe or tribal 
                        consortium.
                          (iv) Nonprofit child welfare service 
                        providers.
                          (v) For-profit child welfare service 
                        providers.
                          (vi) Community health service 
                        providers.
                          (vii) Community mental health 
                        providers.
                          (viii) Local law enforcement 
                        agencies.
                          (ix) Judges and court personnel.
                          (x) Juvenile justice officials.
                          (xi) School personnel.
                          (xii) Tribal child welfare agencies 
                        (or a consortia of such agencies).
                          (xiii) Any other providers, agencies, 
                        personnel, officials, or entities that 
                        are related to the provision of child 
                        and family services under this subpart.
                  (B) Requirements.--
                          (i) State child welfare agency 
                        partner.--Subject to clause (ii)(I), a 
                        regional partnership entered into for 
                        purposes of this subsection shall 
                        include the State child welfare agency 
                        that is responsible for the 
                        administration of the State plan under 
                        this part and part E as 1 of the 
                        partners.
                          (ii) Regional partnerships entered 
                        into by indian tribes or tribal 
                        consortia.--If an Indian tribe or 
                        tribal consortium enters into a 
                        regional partnership for purposes of 
                        this subsection, the Indian tribe or 
                        tribal consortium--
                                  (I) may (but is not required 
                                to) include such State child 
                                welfare agency as a partner in 
                                the collaborative agreement; 
                                and
                                  (II) may not enter into a 
                                collaborative agreement only 
                                with tribal child welfare 
                                agencies (or a consortium of 
                                such agencies).
                          (iii) No state agency only 
                        partnerships.--If a State agency 
                        described in clause (i) or (ii) of 
                        subparagraph (A) enters into a regional 
                        partnership for purposes of this 
                        subsection, the State agency may not 
                        enter into a collaborative agreement 
                        only with the other State agency 
                        described in such clause (i) or (ii).
          (3) Authority to award grants.--
                  (A) In general.--In addition to amounts 
                authorized to be appropriated to carry out this 
                section, the Secretary shall award grants under 
                this subsection, from the amounts reserved for 
                each of fiscal years 2012 through 2016 under 
                section 436(b)(5), to regional partnerships 
                that satisfy the requirements of this 
                subsection, in amounts that are not less than 
                $500,000 and not more than $1,000,000 per grant 
                per fiscal year.
                  (B) Required minimum period of approval.--
                          (i) In general.--A grant shall be 
                        awarded under this subsection for a 
                        period of not less than 2, and not more 
                        than 5, fiscal years, subject to clause 
                        (ii).
                          (ii) Extension of grant.--On 
                        application of the grantee, the 
                        Secretary may extend for not more than 
                        2 fiscal years the period for which a 
                        grant is awarded under this subsection.
                  (C) Multiple grants allowed.--This subsection 
                shall not be interpreted to prevent a grantee 
                from applying for, or being awarded, separate 
                grants under this subsection.
          (4) Application requirements.--To be eligible for a 
        grant under this subsection, a regional partnership 
        shall submit to the Secretary a written application 
        containing the following:
                  (A) Recent evidence demonstrating that 
                substance abuse has had a substantial impact on 
                the number of out-of-home placements for 
                children, or the number of children who are at 
                risk of being placed in an out-of-home 
                placement, in the partnership region.
                  (B) A description of the goals and outcomes 
                to be achieved during the funding period for 
                the grant that will--
                          (i) enhance the well-being of 
                        children receiving services or taking 
                        part in activities conducted with funds 
                        provided under the grant;
                          (ii) lead to safety and permanence 
                        for such children; and
                          (iii) decrease the number of out-of-
                        home placements for children, or the 
                        number of children who are at risk of 
                        being placed in an out-of-home 
                        placement, in the partnership region.
                  (C) A description of the joint activities to 
                be funded in whole or in part with the funds 
                provided under the grant, including the 
                sequencing of the activities proposed to be 
                conducted under the funding period for the 
                grant.
                  (D) A description of the strategies for 
                integrating programs and services determined to 
                be appropriate for the child and where 
                appropriate, the child's family.
                  (E) A description of the strategies for--
                          (i) collaborating with the State 
                        child welfare agency described in 
                        paragraph (2)(A)(i) (unless that agency 
                        is the lead applicant for the regional 
                        partnership); and
                          (ii) consulting, as appropriate, 
                        with--
                                  (I) the State agency 
                                described in paragraph 
                                (2)(A)(ii); and
                                  (II) the State law 
                                enforcement and judicial 
                                agencies.
                To the extent the Secretary determines that the 
                requirement of this subparagraph would be 
                inappropriate to apply to a regional 
                partnership that includes an Indian tribe, 
                tribal consortium, or a tribal child welfare 
                agency or a consortium of such agencies, the 
                Secretary may exempt the regional partnership 
                from the requirement.
                  (F) Such other information as the Secretary 
                may require.
          (5) Use of funds.--Funds made available under a grant 
        made under this subsection shall only be used for 
        services or activities that are consistent with the 
        purpose of this subsection and may include the 
        following:
                  (A) Family-based comprehensive long-term 
                substance abuse treatment services.
                  (B) Early intervention and preventative 
                services.
                  (C) Children and family counseling.
                  (D) Mental health services.
                  (E) Parenting skills training.
                  (F) Replication of successful models for 
                providing family-based comprehensive long-term 
                substance abuse treatment services.
          (6) Matching requirement.--
                  (A) Federal share.--A grant awarded under 
                this subsection shall be available to pay a 
                percentage share of the costs of services 
                provided or activities conducted under such 
                grant, not to exceed--
                          (i) 85 percent for the first and 
                        second fiscal years for which the grant 
                        is awarded to a recipient;
                          (ii) 80 percent for the third and 
                        fourth such fiscal years;
                          (iii) 75 percent for the fifth such 
                        fiscal year;
                          (iv) 70 percent for the sixth such 
                        fiscal year; and
                          (v) 65 percent for the seventh such 
                        fiscal year.
                  (B) Non-federal share.--The non-Federal share 
                of the cost of services provided or activities 
                conducted under a grant awarded under this 
                subsection may be in cash or in kind. In 
                determining the amount of the non-Federal 
                share, the Secretary may attribute fair market 
                value to goods, services, and facilities 
                contributed from non-Federal sources.
          (7) Considerations in awarding grants.--In awarding 
        grants under this subsection, the Secretary shall take 
        into consideration the extent to which applicant 
        regional partnerships--
                  (A) demonstrate that substance abuse by 
                parents or caretakers has had a substantial 
                impact on the number of out-of-home placements 
                for children, or the number of children who are 
                at risk of being placed in an out-of-home 
                placement, in the partnership region;
                  (B) have limited resources for addressing the 
                needs of children affected by such abuse;
                  (C) have a lack of capacity for, or access 
                to, comprehensive family treatment services; 
                and
                  (D) demonstrate a plan for sustaining the 
                services provided by or activities funded under 
                the grant after the conclusion of the grant 
                period.
          (8) Performance indicators.--
                  (A) In general.--Not later than 9 months 
                after the date of enactment of this subsection, 
                the Secretary shall establish indicators that 
                will be used to assess periodically the 
                performance of the grant recipients under this 
                subsection in using funds made available under 
                such grants to achieve the purpose of this 
                subsection.
                  (B) Consultation required.--In establishing 
                the performance indicators required by 
                subparagraph (A), the Secretary shall consult 
                with the following:
                          (i) The Assistant Secretary for the 
                        Administration for Children and 
                        Families.
                          (ii) The Administrator of the 
                        Substance Abuse and Mental Health 
                        Services Administration.
                          (iii) Representatives of States in 
                        which a State agency described in 
                        clause (i) or (ii) of paragraph (2)(A) 
                        is a member of a regional partnership 
                        that is a grant recipient under this 
                        subsection.
                          (iv) Representatives of Indian 
                        tribes, tribal consortia, or tribal 
                        child welfare agencies that are members 
                        of a regional partnership that is a 
                        grant recipient under this subsection.
          (9) Reports.--
                  (A) Grantee reports.--
                          (i) Annual report.--Not later than 
                        September 30 of the first fiscal year 
                        in which a recipient of a grant under 
                        this subsection is paid funds under the 
                        grant, and annually thereafter until 
                        September 30 of the last fiscal year in 
                        which the recipient is paid funds under 
                        the grant, the recipient shall submit 
                        to the Secretary a report on the 
                        services provided or activities carried 
                        out during that fiscal year with such 
                        funds. The report shall contain such 
                        information as the Secretary determines 
                        is necessary to provide an accurate 
                        description of the services provided or 
                        activities conducted with such funds.
                          (ii) Incorporation of information 
                        related to performance indicators.--
                        Each recipient of a grant under this 
                        subsection shall incorporate into the 
                        first annual report required by clause 
                        (i) that is submitted after the 
                        establishment of performance indicators 
                        under paragraph (8), information 
                        required in relation to such 
                        indicators.
                  (B) Reports to congress.--On the basis of the 
                reports submitted under subparagraph (A), the 
                Secretary annually 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--
                          (i) the services provided and 
                        activities conducted with funds 
                        provided under grants awarded under 
                        this subsection;
                          (ii) the performance indicators 
                        established under paragraph (8); and
                          (iii) the progress that has been made 
                        in addressing the needs of families 
                        with substance abuse problems who come 
                        to the attention of the child welfare 
                        system and in achieving the goals of 
                        child safety, permanence, and family 
                        stability.
          (10) Limitation on use of funds for administrative 
        expenses of the secretary.--Not more than 5 percent of 
        the amounts appropriated or reserved for awarding 
        grants under this subsection for each of fiscal years 
        2012 through 2016 may be used by the Secretary for 
        salaries and Department of Health and Human Services 
        administrative expenses in administering this 
        subsection.
  (g) Grants for the Development of an Electronic Interstate 
Case-processing System to Expedite the Interstate Placement of 
Children in Foster Care or Guardianship, or for Adoption.--
          (1) Purpose.--The purpose of this subsection is to 
        facilitate the development of an electronic interstate 
        case-processing system for the exchange of data and 
        documents to expedite the placements of children in 
        foster, guardianship, or adoptive homes across State 
        lines.
          (2) Application requirements.--A State that desires a 
        grant under this subsection shall submit to the 
        Secretary an application containing the following:
                  (A) A description of the goals and outcomes 
                to be achieved during the period for which 
                grant funds are sought, which goals and 
                outcomes must result in--
                          (i) reducing the time it takes for a 
                        child to be provided with a safe and 
                        appropriate permanent living 
                        arrangement across State lines;
                          (ii) improving administrative 
                        processes and reducing costs in the 
                        foster care system; and
                          (iii) the secure exchange of relevant 
                        case files and other necessary 
                        materials in real time, and timely 
                        communications and placement decisions 
                        regarding interstate placements of 
                        children.
                  (B) A description of the activities to be 
                funded in whole or in part with the grant 
                funds, including the sequencing of the 
                activities.
                  (C) A description of the strategies for 
                integrating programs and services for children 
                who are placed across State lines.
                  (D) Such other information as the Secretary 
                may require.
          (3) Grant authority.--The Secretary may make a grant 
        to a State that complies with paragraph (2).
          (4) Use of funds.--A State to which a grant is made 
        under this subsection shall use the grant to support 
        the State in connecting with the electronic interstate 
        case-processing system described in paragraph (1).
          (5) Evaluations.--Not later than 1 year after the 
        final year in which grants are awarded under this 
        subsection, the Secretary shall submit to the Congress, 
        and make available to the general public by posting on 
        a website, a report that contains the following 
        information:
                  (A) How using the electronic interstate case-
                processing system developed pursuant to 
                paragraph (4) has changed the time it takes for 
                children to be placed across State lines.
                  (B) The number of cases subject to the 
                Interstate Compact on the Placement of Children 
                that were processed through the electronic 
                interstate case-processing system, and the 
                number of interstate child placement cases that 
                were processed outside the electronic 
                interstate case-processing system, by each 
                State in each year.
                  (C) The progress made by States in 
                implementing the electronic interstate case-
                processing system.
                  (D) How using the electronic interstate case-
                processing system has affected various metrics 
                related to child safety and well-being, 
                including the time it takes for children to be 
                placed across State lines.
                  (E) How using the electronic interstate case-
                processing system has affected administrative 
                costs and caseworker time spent on placing 
                children across State lines.
          (6) Data integration.--The Secretary, in consultation 
        with the Secretariat for the Interstate Compact on the 
        Placement of Children and the States, shall assess how 
        the electronic interstate case-processing system 
        developed pursuant to paragraph (4) could be used to 
        better serve and protect children that come to the 
        attention of the child welfare system, by--
                  (A) connecting the system with other data 
                systems (such as systems operated by State law 
                enforcement and judicial agencies, systems 
                operated by the Federal Bureau of Investigation 
                for the purposes of the Innocence Lost National 
                Initiative, and other systems);
                  (B) simplifying and improving reporting 
                related to paragraphs (34) and (35) of section 
                471(a) regarding children or youth who have 
                been identified as being a sex trafficking 
                victim or children missing from foster care; 
                and
                  (C) improving the ability of States to 
                quickly comply with background check 
                requirements of section 471(a)(20), including 
                checks of child abuse and neglect registries as 
                required by section 471(a)(20)(B).

           *       *       *       *       *       *       *


Part E--Federal Payments for Foster Care and Adoption Assistance

           *       *       *       *       *       *       *


           STATE PLAN FOR FOSTER CARE AND ADOPTION ASSISTANCE

  Sec. 471. (a) In order for a State to be eligible for 
payments under this part, it shall have a plan approved by the 
Secretary which--
          (1) provides for foster care maintenance payments in 
        accordance with section 472 and for adoption assistance 
        in accordance with section 473;
          (2) provides that the State agency responsible for 
        administering the program authorized by subpart 1 of 
        part B of this title shall administer, or supervise the 
        administration of, the program authorized by this part;
          (3) provides that the plan shall be in effect in all 
        political subdivisions of the State, and, if 
        administered by them, be mandatory upon them;
          (4) provides that the State shall assure that the 
        programs at the local level assisted under this part 
        will be coordinated with the programs at the State or 
        local level assisted under parts A and B of this title, 
        under subtitle 1 of title XX of this Act, and under any 
        other appropriate provision of Federal law;
          (5) provides that the State will, in the 
        administration of its programs under this part, use 
        such methods relating to the establishment and 
        maintenance of personnel standards on a merit basis as 
        are found by the Secretary to be necessary for the 
        proper and efficient operation of the programs, except 
        that the Secretary shall exercise no authority with 
        respect to the selection, tenure of office, or 
        compensation of any individual employed in accordance 
        with such methods;
          (6) provides that the State agency referred to in 
        paragraph (2) (hereinafter in this part referred to as 
        the ``State agency'') will make such reports, in such 
        form and containing such information as the Secretary 
        may from time to time require, and comply with such 
        provisions as the Secretary may from time to time find 
        necessary to assure the correctness and verification of 
        such reports;
          (7) provides that the State agency will monitor and 
        conduct periodic evaluations of activities carried out 
        under this part;
          (8) subject to subsection (c), provides safeguards 
        which restrict the use of or disclosure of information 
        concerning individuals assisted under the State plan to 
        purposes directly connected with (A) the administration 
        of the plan of the State approved under this part, the 
        plan or program of the State under part A, B, or D of 
        this title or under title I, V, X, XIV, XVI (as in 
        effect in Puerto Rico, Guam, and the Virgin Islands), 
        XIX, or XX, or the supplemental security income program 
        established by title XVI, (B) any investigation, 
        prosecution, or criminal or civil proceeding, conducted 
        in connection with the administration of any such plan 
        or program, (C) the administration of any other Federal 
        or federally assisted program which provides 
        assistance, in cash or in kind, or services, directly 
        to individuals on the basis of need, (D) any audit or 
        similar activity conducted in connection with the 
        administration of any such plan or program by any 
        governmental agency which is authorized by law to 
        conduct such audit or activity, and (E) reporting and 
        providing information pursuant to paragraph (9) to 
        appropriate authorities with respect to known or 
        suspected child abuse or neglect; and the safeguards so 
        provided shall prohibit disclosure, to any committee or 
        legislative body (other than an agency referred to in 
        clause (D) with respect to an activity referred to in 
        such clause), of any information which identifies by 
        name or address any such applicant or recipient; except 
        that nothing contained herein shall preclude a State 
        from providing standards which restrict disclosures to 
        purposes more limited than those specified herein, or 
        which, in the case of adoptions, prevent disclosure 
        entirely;
          (9) provides that the State agency will--
                  (A) report to an appropriate agency or 
                official, known or suspected instances of 
                physical or mental injury, sexual abuse or 
                exploitation, or negligent treatment or 
                maltreatment of a child receiving aid under 
                part B or this part under circumstances which 
                indicate that the child's health or welfare is 
                threatened thereby;
                  (B) provide such information with respect to 
                a situation described in subparagraph (A) as 
                the State agency may have; and
                  (C) not later than--
                          (i) 1 year after the date of 
                        enactment of this subparagraph, 
                        demonstrate to the Secretary that the 
                        State agency has developed, in 
                        consultation with State and local law 
                        enforcement, juvenile justice systems, 
                        health care providers, education 
                        agencies, and organizations with 
                        experience in dealing with at-risk 
                        children and youth, policies and 
                        procedures (including relevant training 
                        for caseworkers) for identifying, 
                        documenting in agency records, and 
                        determining appropriate services with 
                        respect to--
                                  (I) any child or youth over 
                                whom the State agency has 
                                responsibility for placement, 
                                care, or supervision and who 
                                the State has reasonable cause 
                                to believe is, or is at risk of 
                                being, a sex trafficking victim 
                                (including children for whom a 
                                State child welfare agency has 
                                an open case file but who have 
                                not been removed from the home, 
                                children who have run away from 
                                foster care and who have not 
                                attained 18 years of age or 
                                such older age as the State has 
                                elected under section 475(8) of 
                                this Act, and youth who are not 
                                in foster care but are 
                                receiving services under 
                                section 477 of this Act); and
                                  (II) at the option of the 
                                State, any individual who has 
                                not attained 26 years of age, 
                                without regard to whether the 
                                individual is or was in foster 
                                care under the responsibility 
                                of the State; and
                          (ii) 2 years after such date of 
                        enactment, demonstrate to the Secretary 
                        that the State agency is implementing 
                        the policies and procedures referred to 
                        in clause (i).
          (10) provides--
                  (A) for the establishment or designation of a 
                State authority or authorities that shall be 
                responsible for establishing and maintaining 
                standards for foster family homes and child 
                care institutions which are reasonably in 
                accord with recommended standards of national 
                organizations concerned with standards for the 
                institutions or homes, including standards 
                related to admission policies, safety, 
                sanitation, and protection of civil rights, and 
                which shall permit use of the reasonable and 
                prudent parenting standard;
                  (B) that the standards established pursuant 
                to subparagraph (A) shall be applied by the 
                State to any foster family home or child care 
                institution receiving funds under this part or 
                part B and shall require, as a condition of 
                each contract entered into by a child care 
                institution to provide foster care, the 
                presence on-site of at least 1 official who, 
                with respect to any child placed at the child 
                care institution, is designated to be the 
                caregiver who is authorized to apply the 
                reasonable and prudent parent standard to 
                decisions involving the participation of the 
                child in age or developmentally-appropriate 
                activities, and who is provided with training 
                in how to use and apply the reasonable and 
                prudent parent standard in the same manner as 
                prospective foster parents are provided the 
                training pursuant to paragraph (24);
                  (C) that the standards established pursuant 
                to subparagraph (A) shall include policies 
                related to the liability of foster parents and 
                private entities under contract by the State 
                involving the application of the reasonable and 
                prudent parent standard, to ensure appropriate 
                liability for caregivers when a child 
                participates in an approved activity and the 
                caregiver approving the activity acts in 
                accordance with the reasonable and prudent 
                parent standard; and
                  (D) that a waiver of any standards 
                established pursuant to subparagraph (A) may be 
                made only on a case-by-case basis for nonsafety 
                standards (as determined by the State) in 
                relative foster family homes for specific 
                children in care;
          (11) provides for periodic review of the standards 
        referred to in the preceding paragraph and amounts paid 
        as foster care maintenance payments and adoption 
        assistance to assure their continuing appropriateness;
          (12) provides for granting an opportunity for a fair 
        hearing before the State agency to any individual whose 
        claim for benefits available pursuant to this part is 
        denied or is not acted upon with reasonable promptness;
          (13) provides that the State shall arrange for a 
        periodic and independently conducted audit of the 
        programs assisted under this part and part B of this 
        title, which shall be conducted no less frequently than 
        once every three years;
          (14) provides (A) specific goals (which shall be 
        established by State law on or before October 1, 1982) 
        for each fiscal year (commencing with the fiscal year 
        which begins on October 1, 1983) as to the maximum 
        number of children (in absolute numbers or as a 
        percentage of all children in foster care with respect 
        to whom assistance under the plan is provided during 
        such year) who, at any time during such year, will 
        remain in foster care after having been in such care 
        for a period in excess of twenty-four months, and (B) a 
        description of the steps which will be taken by the 
        State to achieve such goals;
          (15) provides that--
                  (A) in determining reasonable efforts to be 
                made with respect to a child, as described in 
                this paragraph, and in making such reasonable 
                efforts, the child's health and safety shall be 
                the paramount concern;
                  (B) except as provided in subparagraph (D), 
                reasonable efforts shall be made to preserve 
                and reunify 
                families--
                          (i) prior to the placement of a child 
                        in foster care, to prevent or eliminate 
                        the need for removing the child from 
                        the child's home; and
                          (ii) to make it possible for a child 
                        to safely return to the child's home;
                  (C) if continuation of reasonable efforts of 
                the type described in subparagraph (B) is 
                determined to be inconsistent with the 
                permanency plan for the child, reasonable 
                efforts shall be made to place the child in a 
                timely manner in accordance with the permanency 
                plan (including, if appropriate, through an 
                interstate placement), and to complete whatever 
                steps are necessary to finalize the permanent 
                placement of the child;
                  (D) reasonable efforts of the type described 
                in subparagraph (B) shall not be required to be 
                made with respect to a parent of a child if a 
                court of competent jurisdiction has determined 
                that--
                          (i) the parent has subjected the 
                        child to aggravated circumstances (as 
                        defined in State law, which definition 
                        may include but need not be limited to 
                        abandonment, torture, chronic abuse, 
                        and sexual abuse);
                          (ii) the parent has--
                                  (I) committed murder (which 
                                would have been an offense 
                                under section 1111(a) of title 
                                18, United States Code, if the 
                                offense had occurred in the 
                                special maritime or territorial 
                                jurisdiction of the United 
                                States) of another child of the 
                                parent;
                                  (II) committed voluntary 
                                manslaughter (which would have 
                                been an offense under section 
                                1112(a) of title 18, United 
                                States Code, if the offense had 
                                occurred in the special 
                                maritime or territorial 
                                jurisdiction of the United 
                                States) of another child of the 
                                parent;
                                  (III) aided or abetted, 
                                attempted, conspired, or 
                                solicited to commit such a 
                                murder or such a voluntary 
                                manslaughter; or
                                  (IV) committed a felony 
                                assault that results in serious 
                                bodily injury to the child or 
                                another child of the parent; or
                          (iii) the parental rights of the 
                        parent to a sibling have been 
                        terminated involuntarily;
                  (E) if reasonable efforts of the type 
                described in subparagraph (B) are not made with 
                respect to a child as a result of a 
                determination made by a court of competent 
                jurisdiction in accordance with subparagraph 
                (D)--
                          (i) a permanency hearing (as 
                        described in section 475(5)(C)), which 
                        considers in-State and out-of-State 
                        permanent placement options for the 
                        child, shall be held for the child 
                        within 30 days after the determination; 
                        and
                          (ii) reasonable efforts shall be made 
                        to place the child in a timely manner 
                        in accordance with the permanency plan, 
                        and to complete whatever steps are 
                        necessary to finalize the permanent 
                        placement of the child; and
                  (F) reasonable efforts to place a child for 
                adoption or with a legal guardian, including 
                identifying appropriate in-State and out-of-
                State placements may be made concurrently with 
                reasonable efforts of the type described in 
                subparagraph (B);
          (16) provides for the development of a case plan (as 
        defined in section 475(1) and in accordance with the 
        requirements of section 475A) for each child receiving 
        foster care maintenance payments under the State plan 
        and provides for a case review system which meets the 
        requirements described in sections 475(5) and 475A with 
        respect to each such child;
          (17) provides that, where appropriate, all steps will 
        be taken, including cooperative efforts with the State 
        agencies administering the program funded under part A 
        and plan approved under part D, to secure an assignment 
        to the State of any rights to support on behalf of each 
        child receiving foster care maintenance payments under 
        this part;
          (18) not later than January 1, 1997, provides that 
        neither the State nor any other entity in the State 
        that receives funds from the Federal Government and is 
        involved in adoption or foster care placements may--
                  (A) deny to any person the opportunity to 
                become an adoptive or a foster parent, on the 
                basis of the race, color, or national origin of 
                the person, or of the child, involved; or
                  (B) delay or deny the placement of a child 
                for adoption or into foster care, on the basis 
                of the race, color, or national origin of the 
                adoptive or foster parent, or the child, 
                involved;
          (19) provides that the State shall consider giving 
        preference to an adult relative over a non-related 
        caregiver when determining a placement for a child, 
        provided that the relative caregiver meets all relevant 
        State child protection standards;
          (20)(A) provides procedures for criminal records 
        checks, including fingerprint-based checks of national 
        crime information databases (as defined in section 
        534(e)(3)(A) of title 28, United States Code), for any 
        prospective foster or adoptive parent before the foster 
        or adoptive parent may be finally approved for 
        placement of a child regardless of whether foster care 
        maintenance payments or adoption assistance payments 
        are to be made on behalf of the child under the State 
        plan under this part, including procedures requiring 
        that--
                  (i) in any case involving a child on whose 
                behalf such payments are to be so made in which 
                a record check reveals a felony conviction for 
                child abuse or neglect, for spousal abuse, for 
                a crime against children (including child 
                pornography), or for a crime involving 
                violence, including rape, sexual assault, or 
                homicide, but not including other physical 
                assault or battery, if a State finds that a 
                court of competent jurisdiction has determined 
                that the felony was committed at any time, such 
                final approval shall not be granted; and
                  (ii) in any case involving a child on whose 
                behalf such payments are to be so made in which 
                a record check reveals a felony conviction for 
                physical assault, battery, or a drug-related 
                offense, if a State finds that a court of 
                competent jurisdiction has determined that the 
                felony was committed within the past 5 years, 
                such final approval shall not be granted; and
          (B) provides that the State shall--
                  (i) check any child abuse and neglect 
                registry maintained by the State for 
                information on any prospective foster or 
                adoptive parent and on any other adult living 
                in the home of such a prospective parent, and 
                request any other State in which any such 
                prospective parent or other adult has resided 
                in the preceding 5 years, to enable the State 
                to check any child abuse and neglect registry 
                maintained by such other State for such 
                information, before the prospective foster or 
                adoptive parent may be finally approved for 
                placement of a child, regardless of whether 
                foster care maintenance payments or adoption 
                assistance payments are to be made on behalf of 
                the child under the State plan under this part;
                  (ii) comply with any request described in 
                clause (i) that is received from another State; 
                and
                  (iii) have in place safeguards to prevent the 
                unauthorized disclosure of information in any 
                child abuse and neglect registry maintained by 
                the State, and to prevent any such information 
                obtained pursuant to this subparagraph from 
                being used for a purpose other than the 
                conducting of background checks in foster or 
                adoptive placement cases; and
          (C) provides procedures for criminal records checks, 
        including fingerprint-based checks of national crime 
        information databases (as defined in section 
        534(e)(3)(A) of title 28, United States Code), on any 
        relative guardian, and for checks described in 
        subparagraph (B) of this paragraph on any relative 
        guardian and any other adult living in the home of any 
        relative guardian, before the relative guardian may 
        receive kinship guardianship assistance payments on 
        behalf of the child under the State plan under this 
        part;
          (21) provides for health insurance coverage 
        (including, at State option, through the program under 
        the State plan approved under title XIX) for any child 
        who has been determined to be a child with special 
        needs, for whom there is in effect an adoption 
        assistance agreement (other than an agreement under 
        this part) between the State and an adoptive parent or 
        parents, and who the State has determined cannot be 
        placed with an adoptive parent or parents without 
        medical assistance because such child has special needs 
        for medical, mental health, or rehabilitative care, and 
        that with respect to the provision of such health 
        insurance coverage--
                  (A) such coverage may be provided through 1 
                or more State medical assistance programs;
                  (B) the State, in providing such coverage, 
                shall ensure that the medical benefits, 
                including mental health benefits, provided are 
                of the same type and kind as those that would 
                be provided for children by the State under 
                title XIX;
                  (C) in the event that the State provides such 
                coverage through a State medical assistance 
                program other than the program under title XIX, 
                and the State exceeds its funding for services 
                under such other program, any such child shall 
                be deemed to be receiving aid or assistance 
                under the State plan under this part for 
                purposes of section 1902(a)(10)(A)(i)(I); and
                  (D) in determining cost-sharing requirements, 
                the State shall take into consideration the 
                circumstances of the adopting parent or parents 
                and the needs of the child being adopted 
                consistent, to the extent coverage is provided 
                through a State medical assistance program, 
                with the rules under such program;
          (22) provides that, not later than January 1, 1999, 
        the State shall develop and implement standards to 
        ensure that children in foster care placements in 
        public or private agencies are provided quality 
        services that protect the safety and health of the 
        children;
          (23) provides that the State shall not--
                  (A) deny or delay the placement of a child 
                for adoption when an approved family is 
                available outside of the 
                jurisdiction with responsibility for handling 
                the case of the child; or
                  (B) fail to grant an opportunity for a fair 
                hearing, as described in paragraph (12), to an 
                individual whose allegation of a violation of 
                subparagraph (A) of this paragraph is denied by 
                the State or not acted upon by the State with 
                reasonable promptness;
          (24) includes a certification that, before a child in 
        foster care under the responsibility of the State is 
        placed with prospective foster parents, the prospective 
        foster parents will be prepared adequately with the 
        appropriate knowledge and skills to provide for the 
        needs of the child, that the preparation will be 
        continued, as necessary, after the placement of the 
        child, and that the preparation shall include knowledge 
        and skills relating to the reasonable and prudent 
        parent standard for the participation of the child in 
        age or developmentally-appropriate activities, 
        including knowledge and skills relating to the 
        developmental stages of the cognitive, emotional, 
        physical, and behavioral capacities of a child, and 
        knowledge and skills relating to applying the standard 
        to decisions such as whether to allow the child to 
        engage in social, extracurricular, enrichment, 
        cultural, and social activities, including sports, 
        field trips, and overnight activities lasting 1 or more 
        days, and to decisions involving the signing of 
        permission slips and arranging of transportation for 
        the child to and from extracurricular, enrichment, and 
        social activities;
          (25) [provide] provides that the State shall have in 
        effect procedures for the orderly and timely interstate 
        placement of children, which, not later than October 1, 
        2026, shall include the use of an electronic interstate 
        case-processing system; and procedures implemented in 
        accordance with an interstate compact, if incorporating 
        with the procedures prescribed by paragraph (26), shall 
        be considered to satisfy the requirement of this 
        paragraph;
          (26) provides that--
                  (A)(i) within 60 days after the State 
                receives from another State a request to 
                conduct a study of a home environment for 
                purposes of assessing the safety and 
                suitability of placing a child in the home, the 
                State shall, directly or by contract--
                          (I) conduct and complete the study; 
                        and
                          (II) return to the other State a 
                        report on the results of the study, 
                        which shall address the extent to which 
                        placement in the home would meet the 
                        needs of the child; and
                  (ii) in the case of a home study begun on or 
                before September 30, 2008, if the State fails 
                to comply with clause (i) within the 60-day 
                period as a result of circumstances beyond the 
                control of the State (such as a failure by a 
                Federal agency to provide the results of a 
                background check, or the failure by any entity 
                to provide completed medical forms, requested 
                by the State at least 45 days before the end of 
                the 60-day period), the State shall have 75 
                days to comply with clause (i) if the State 
                documents the circumstances involved and 
                certifies that completing the home study is in 
                the best interests of the child; except that
                  (iii) this subparagraph shall not be 
                construed to require the State to have 
                completed, within the applicable period, the 
                parts of the home study involving the education 
                and training of the prospective foster or 
                adoptive parents;
                  (B) the State shall treat any report 
                described in subparagraph (A) that is received 
                from another State or an Indian tribe (or from 
                a private agency under contract with another 
                State) as meeting any requirements imposed by 
                the State for the completion of a home study 
                before placing a child in the home, unless, 
                within 14 days after receipt of the report, the 
                State determines, based on grounds that are 
                specific to the content of the report, that 
                making a decision in reliance on the report 
                would be contrary to the welfare of the child; 
                and
                  (C) the State shall not impose any 
                restriction on the ability of a State agency 
                administering, or supervising the 
                administration of, a State program operated 
                under a State plan approved under this part to 
                contract with a private agency for the conduct 
                of a home study described in subparagraph (A);
          (27) provides that, with respect to any child in 
        foster care under the responsibility of the State under 
        this part or part B and without regard to whether 
        foster care maintenance payments are made under section 
        472 on behalf of the child, the State has in effect 
        procedures for verifying the citizenship or immigration 
        status of the child;
          (28) at the option of the State, provides for the 
        State to enter into kinship guardianship assistance 
        agreements to provide kinship guardianship assistance 
        payments on behalf of children to grandparents and 
        other relatives who have assumed legal guardianship of 
        the children for whom they have cared as foster parents 
        and for whom they have committed to care on a permanent 
        basis, as provided in section 473(d);
          (29) provides that, within 30 days after the removal 
        of a child from the custody of the parent or parents of 
        the child, the State shall exercise due diligence to 
        identify and provide notice to the following relatives: 
        all adult grandparents, all parents of a sibling of the 
        child, where such parent has legal custody of such 
        sibling, and other adult relatives of the child 
        (including any other adult relatives suggested by the 
        parents), subject to exceptions due to family or 
        domestic violence, that--
                  (A) specifies that the child has been or is 
                being removed from the custody of the parent or 
                parents of the child;
                  (B) explains the options the relative has 
                under Federal, State, and local law to 
                participate in the care and placement of the 
                child, including any options that may be lost 
                by failing to respond to the notice;
                  (C) describes the requirements under 
                paragraph (10) of this subsection to become a 
                foster family home and the additional services 
                and supports that are available for children 
                placed in such a home; and
                  (D) if the State has elected the option to 
                make kinship guardianship assistance payments 
                under paragraph (28) of this subsection, 
                describes how the relative guardian of the 
                child may subsequently enter into an agreement 
                with the State under section 473(d) to receive 
                the payments;
          (30) provides assurances that each child who has 
        attained the minimum age for compulsory school 
        attendance under State law and with respect to whom 
        there is eligibility for a payment under the State plan 
        is a full-time elementary or secondary school student 
        or has completed secondary school, and for purposes of 
        this paragraph, the term ``elementary or secondary 
        school student'' means, with respect to a child, that 
        the child is--
                  (A) enrolled (or in the process of enrolling) 
                in an institution which provides elementary or 
                secondary education, as determined under the 
                law of the State or other jurisdiction in which 
                the institution is located;
                  (B) instructed in elementary or secondary 
                education at home in accordance with a home 
                school law of the State or other jurisdiction 
                in which the home is located;
                  (C) in an independent study elementary or 
                secondary education program in accordance with 
                the law of the State or other jurisdiction in 
                which the program is located, which is 
                administered by the local school or school 
                district; or
                  (D) incapable of attending school on a full-
                time basis due to the medical condition of the 
                child, which incapability is supported by 
                regularly updated information in the case plan 
                of the child;
          (31) provides that reasonable efforts shall be made--
                  (A) to place siblings removed from their home 
                in the same foster care, kinship guardianship, 
                or adoptive placement, unless the State 
                documents that such a joint placement would be 
                contrary to the safety or well-being of any of 
                the siblings; and
                  (B) in the case of siblings removed from 
                their home who are not so jointly placed, to 
                provide for frequent visitation or other 
                ongoing interaction between the siblings, 
                unless that State documents that frequent 
                visitation or other ongoing interaction would 
                be contrary to the safety or well-being of any 
                of the siblings;
          (32) provides that the State will negotiate in good 
        faith with any Indian tribe, tribal organization or 
        tribal consortium in the State that requests to develop 
        an agreement with the State to administer all or part 
        of the program under this part on behalf of Indian 
        children who are under the authority of the tribe, 
        organization, or consortium, including foster care 
        maintenance payments on behalf of children who are 
        placed in State or tribally licensed foster family 
        homes, adoption assistance payments, and, if the State 
        has elected to provide such payments, kinship 
        guardianship assistance payments under section 473(d), 
        and tribal access to resources for administration, 
        training, and data collection under this part;
          (33) provides that the State will inform any 
        individual who is adopting, or whom the State is made 
        aware is considering adopting, a child who is in foster 
        care under the responsibility of the State of the 
        potential eligibility of the individual for a Federal 
        tax credit under section 23 of the Internal Revenue 
        Code of 1986;
          (34) provides that, for each child or youth described 
        in paragraph (9)(C)(i)(I), the State agency shall--
                  (A) not later than 2 years after the date of 
                the enactment of this paragraph, report 
                immediately, and in no case later than 24 hours 
                after receiving information on children or 
                youth who have been identified as being a sex 
                trafficking victim, to the law enforcement 
                authorities; and
                  (B) not later than 3 years after such date of 
                enactment and annually thereafter, report to 
                the Secretary the total number of children and 
                youth who are sex trafficking victims; and
          (35) provides that--
                  (A) not later than 1 year after the date of 
                the enactment of this paragraph, the State 
                shall develop and implement specific protocols 
                for--
                          (i) expeditiously locating any child 
                        missing from foster care;
                          (ii) determining the primary factors 
                        that contributed to the child's running 
                        away or otherwise being absent from 
                        care, and to the extent possible and 
                        appropriate, responding to those 
                        factors in current and subsequent 
                        placements;
                          (iii) determining the child's 
                        experiences while absent from care, 
                        including screening the child to 
                        determine if the child is a possible 
                        sex trafficking victim (as defined in 
                        section 475(9)(A)); and
                          (iv) reporting such related 
                        information as required by the 
                        Secretary; and
                  (B) not later than 2 years after such date of 
                enactment, for each child and youth described 
                in paragraph (9)(C)(i)(I) of this subsection, 
                the State agency shall report immediately, and 
                in no case later than 24 hours after receiving, 
                information on missing or abducted children or 
                youth to the law enforcement authorities for 
                entry into the National Crime Information 
                Center (NCIC) database of the Federal Bureau of 
                Investigation, established pursuant to section 
                534 of title 28, United States Code, and to the 
                National Center for Missing and Exploited 
                Children.
  (b) The Secretary shall approve any plan which complies with 
the provisions of subsection (a) of this section.
  (c) Use of Child Welfare Records in State Court 
Proceedings.--Subsection (a)(8) shall not be construed to limit 
the flexibility of a State in determining State policies 
relating to public access to court proceedings to determine 
child abuse and neglect or other court hearings held pursuant 
to part B or this part, except that such policies shall, at a 
minimum, ensure the safety and well-being of the child, 
parents, and family.
  (d) Annual Reports by the Secretary on Number of Children and 
Youth Reported by States To Be Sex Trafficking Victims.--Not 
later than 4 years after the date of the enactment of this 
subsection and annually thereafter, the Secretary shall report 
to the Congress and make available to the public on the 
Internet website of the Department of Health and Human Services 
the number of children and youth reported in accordance with 
subsection (a)(34)(B) of this section to be sex trafficking 
victims (as defined in section 475(9)(A)).

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