    [United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    117 STAT. 1879

    Public Law 108-145
    108th Congress

    An Act

    To reauthorize the adoption incentive payments program under part E of
    title IV of the Social Security Act, and for other
    purposes. [NOTE: Dec. 2, 2003 -  [H.R. 3182]]

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress [NOTE: Adoption Promotion Act of
    2003.] assembled,

    SECTION 1. [NOTE: 42 USC 1305 note.] SHORT TITLE.

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

    SEC. 2. [NOTE: 42 USC 637b note.] FINDINGS.

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

    SEC. 3. REAUTHORIZATION OF ADOPTION INCENTIVE PAYMENTS PROGRAM.

    (a) In General.--Section 473A of the Social Security Act (42 U.S.C.
    673b) is amended--
    (1) in subsection (b)--
    (A) by striking paragraph (2) and inserting the
    following:
    ``(2)(A) the number of foster child adoptions in the State
    during the fiscal year exceeds the base number of foster child
    adoptions for the State for the fiscal year; or

    [[Page 1880]]
    117 STAT. 1880

    ``(B) the number of older child adoptions in the State
    during the fiscal year exceeds the base number of older child
    adoptions for the State for the fiscal year;''.
    (B) in paragraph (4), by striking ``and 2002'' and
    inserting ``through 2007''; and
    (C) in paragraph (5), by striking ``2002'' and
    inserting ``2007'';
    (2) in subsection (c), by striking paragraph (2) and
    inserting the following:
    ``(2) Determination of numbers of adoptions based on afcars
    data.--The Secretary shall determine the numbers of foster child
    adoptions, of special needs adoptions that are not older child
    adoptions, and of older child adoptions in a State during each
    of fiscal years 2002 through 2007, for purposes of this section,
    on the basis of data meeting the requirements of the system
    established pursuant to section 479, as reported by the State
    and approved by the Secretary by August 1 of the succeeding
    fiscal year.'';
    (3) in subsection (d)(1)--
    (A) in subparagraph (A), by striking ``and'';
    (B) in subparagraph (B)--
    (i) by inserting ``that are not older child
    adoptions'' after ``adoptions'' each place it
    appears; and
    (ii) by striking the period and inserting ``;
    and''; and
    (C) by adding at the end the following:
    ``(C) $4,000, multiplied by the amount (if any) by
    which the number of older child adoptions in the State
    during the fiscal year exceeds the base number of older
    child adoptions for the State for the fiscal year.'';
    (4) in subsection (g)--
    (A) in paragraph (3), by striking subparagraphs (A)
    and (B) and inserting the following:
    ``(A) with respect to fiscal year 2003, the number
    of foster child adoptions in the State in fiscal year
    2002; and
    ``(B) with respect to any subsequent fiscal year,
    the number of foster child adoptions in the State in the
    fiscal year for which the number is the greatest in the
    period that begins with fiscal year 2002 and ends with
    the fiscal year preceding that subsequent fiscal
    year.'';
    (B) in paragraph (4)--
    (i) in the paragraph heading, by inserting
    ``that are not older child adoptions'' after
    ``adoptions''; and
    (ii) by striking subparagraphs (A) and (B) and
    inserting the following:
    ``(A) with respect to fiscal year 2003, the number
    of special needs adoptions that are not older child
    adoptions in the State in fiscal year 2002; and
    ``(B) with respect to any subsequent fiscal year,
    the number of special needs adoptions that are not older
    child adoptions in the State in the fiscal year for
    which the number is the greatest in the period that
    begins with fiscal year 2002 and ends with the fiscal
    year preceding that subsequent fiscal year.''; and
    (C) by adding at the end the following:

    [[Page 1881]]
    117 STAT. 1881

    ``(5) Base number of older child adoptions.--The term `base
    number of older child adoptions for a State' means--
    ``(A) with respect to fiscal year 2003, the number
    of older child adoptions in the State in fiscal year
    2002; and
    ``(B) with respect to any subsequent fiscal year,
    the number of older child adoptions in the State in the
    fiscal year for which the number is the greatest in the
    period that begins with fiscal year 2002 and ends with
    the fiscal year preceding that subsequent fiscal year.
    ``(6) Older child adoptions.--The term `older child
    adoptions' means the final adoption of a child who has attained
    9 years of age if--
    ``(A) at the time of the adoptive placement, the
    child was in foster care under the supervision of the
    State; or
    ``(B) an adoption assistance agreement was in effect
    under section 473 with respect to the child.'';
    (5) in subsection (h)--
    (A) in paragraph (1)--
    (i) in subparagraph (B), by striking ``and'';
    (ii) in subparagraph (C), by striking the
    period and inserting ``; and''; and
    (iii) by adding at the end the following:
    ``(D) $43,000,000 for each of fiscal years 2004
    through 2008.''; and
    (B) in paragraph (2)--
    (i) by inserting ``, or under any other law
    for grants under subsection (a),'' after ``(1)'';
    and
    (ii) by striking ``2003'' and inserting
    ``2008'';
    (6) in subsection (i)(4), by striking ``1998 through 2000''
    and inserting ``2004 through 2006''; and
    (7) by striking subsection (j).

    (b) Report [NOTE: Deadline.] on Adoption and Other Permanency
    Options for Children in Foster Care.--Not later than October 1, 2004,
    the Secretary of Health and Human Services shall submit to the Committee
    on Ways and Means of the House of Representatives and the Committee on
    Finance of the Senate a report on State efforts to promote adoption and
    other permanency options for children in foster care, with special
    emphasis on older children in foster care. In preparing this report, the
    Secretary shall review State waiver programs and consult with
    representatives from State governments, public and private child welfare
    agencies, and child advocacy organizations to identify promising
    approaches.

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

    Section 474 of the Social Security Act (42 U.S.C. 674) is amended by
    adding at the end the following:
    ``(f)(1) [NOTE: Deadlines. Notification.] If the Secretary finds
    that a State has failed to submit to the Secretary data, as required by
    regulation, for the data collection system implemented under section
    479, the Secretary shall, within 30 days after the date by which the
    data was due to be so submitted, notify the State of the failure and
    that payments to the State under this part will be reduced if the State
    fails to submit the data, as so required, within 6 months after the date
    the data was originally due to be so submitted.

    [[Page 1882]]
    117 STAT. 1882

    ``(2) If the Secretary finds that the State has failed to submit the
    data, as so required, by the end of the 6-month period referred to in
    paragraph (1) of this subsection, then, notwithstanding subsection (a)
    of this section and any regulations promulgated under section
    1123A(b)(3), the Secretary shall reduce the amounts otherwise payable to
    the State under this part, for each quarter ending in the 6-month period
    (and each quarter ending in each subsequent consecutively occurring 6-
    month period until the Secretary finds that the State has submitted the
    data, as so required), by--
    ``(A) \1/6\ of 1 percent of the total amount expended by the
    State for administration of foster care activities under the
    State plan approved under this part in the quarter so ending, in
    the case of the 1st 6-month period during which the failure
    continues; or
    ``(B) \1/4\ of 1 percent of the total amount so expended, in
    the case of the 2nd or any subsequent such 6-month period.''.

    SEC. 5. [NOTE: 42 USC 673b note.] EFFECTIVE DATE.

    The amendments made by this Act shall take effect on October 1,
    2003.

    Approved December 2, 2003.

    LEGISLATIVE HISTORY--H.R. 3182:
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    CONGRESSIONAL RECORD, Vol. 149 (2003):
    Oct. 8, considered and passed House.
    Nov. 12, considered and passed Senate.
    WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
    Dec. 2, Presidential remarks.