TITLE II--INCENTIVES FOR PROVIDING PERMANENT FAMILIES FOR CHILDREN
SEC. 201. ADOPTION INCENTIVE PAYMENTS.
(a) In General.--Part E of title IV of the Social Security Act (42 U.S.C. 670-679) is amended by inserting after section 473 the following:
42 USC 673b.
"SEC. 473A. ADOPTION INCENTIVE PAYMENTS.
"(a) Grant Authority.--Subject to the availability of such amounts as may be provided in advance in appropriations Acts for this purpose, the Secretary shall make a grant to each State that is an incentive-eligible State for a fiscal year in an amount equal to the adoption incentive payment payable to the State under this section for the fiscal year, which shall be payable in the immediately succeeding fiscal year. "(b) Incentive-Eligible State.--A State is an incentive-eligible State for a fiscal year if--
"(1) the State has a plan approved under this part for the fiscal year; "(2) the number of foster child adoptions in the State during the fiscal year exceeds the base number of foster child adoptions for the State for the fiscal year; "(3) the State is in compliance with subsection (c) for the fiscal year; "(4) in the case of fiscal years 2001 and 2002, the State provides health insurance coverage to any child with special needs (as determined under section 473(c)) for whom there is in effect an adoption assistance agreement between a State and an adoptive parent or parents; and "(5) the fiscal year is any of fiscal years 1998 through 2002.
"(c) Data Requirements.--
"(1) In general.--A State is in compliance with this subsection for a fiscal year if the State has provided to the Secretary the data described in paragraph (2)--
"(A) for fiscal years 1995 through 1997 (or, if the first fiscal year for which the State seeks a grant under this section is after fiscal year 1998, the fiscal year that precedes such first fiscal year); and "(B) for each succeeding fiscal year that precedes the fiscal year.
"(2) Determination of numbers of adoptions.--
"(A) Determinations based on afcars data.--Except as provided in subparagraph (B), the Secretary shall determine the numbers of foster child adoptions and of special needs adoptions in a State during each of fiscal years 1995 through 2002, for purposes of this section, on the basis of data meeting the requirements of the system established pursuant to section 479, as reported by the State and approved by the Secretary by August 1 of the succeeding fiscal year. "(B) Alternative data sources permitted for fiscal years 1995 through 1997.--For purposes of the determination described in subparagraph (A) for fiscal years 1995 through 1997, the Secretary may use data from a source or sources other than that specified in subparagraph (A) that the Secretary finds to be of equivalent completeness and reliability, as reported by a State by November 30, 1997, and approved by the Secretary by March 1, 1998.
"(3) No waiver of afcars requirements.--This section shall not be construed to alter or affect any requirement of section 479 or of any regulation prescribed under such section with respect to reporting of data by States, or to waive any penalty for failure to comply with such a requirement.
"(d) Adoption Incentive Payment.--
"(1) In general.--Except as provided in paragraph (2), the adoption incentive payment payable to a State for a fiscal year under this section shall be equal to the sum of--
"(A) $4,000, multiplied by the amount (if any) by which the number of foster child adoptions in the State during the fiscal year exceeds the base number of foster child adoptions for the State for the fiscal year; and "(B) $2,000, multiplied by the amount (if any) by which the number of special needs adoptions in the State during the fiscal year exceeds the base number of special needs adoptions for the State for the fiscal year.
"(2) Pro rata adjustment if insufficient funds available.-- For any fiscal year, if the total amount of adoption incentive payments otherwise payable under this section for a fiscal year exceeds the amount appropriated pursuant to subsection (h) for the fiscal year, the amount of the adoption incentive payment payable to each State under this section for the fiscal year shall be--
"(A) the amount of the adoption incentive payment that would otherwise be payable to the State under this section for the fiscal year; multiplied by "(B) the percentage represented by the amount so appropriated for the fiscal year, divided by the total amount of adoption incentive payments otherwise payable under this section for the fiscal year.
"(e) 2-Year Availability of Incentive Payments.--Payments to a State under this section in a fiscal year shall remain available for use by the State through the end of the succeeding fiscal year. "(f ) Limitations on Use of Incentive Payments.--A State shall not expend an amount paid to the State under this section except to provide to children or families any service (including post-adoption services) that may be provided under part B or E. Amounts expended by a State in accordance with the preceding sentence shall be disregarded in determining State expenditures for purposes of Federal matching payments under sections 423, 434, and 474. "(g) Definitions.--As used in this section:
"(1) Foster child adoption.--The term 'foster child adoption' means the final adoption of a child who, at the time of adoptive placement, was in foster care under the supervision of the State. "(2) Special needs adoption.--The term 'special needs adoption' means the final adoption of a child for whom an adoption assistance agreement is in effect under section 473. "(3) Base number of foster child adoptions.--The term 'base number of foster child adoptions for a State' means--
"(A) with respect to fiscal year 1998, the average number of foster child adoptions in the State in fiscal years 1995, 1996, and 1997; and "(B) with respect to any subsequent fiscal year, the number of foster child adoptions in the State in the fiscal year for which the number is the greatest in the period that begins with fiscal year 1997 and ends with the fiscal year preceding such subsequent fiscal year.
"(4) Base number of special needs adoptions.--The term ' base number of special needs adoptions for a State' means--
"(A) with respect to fiscal year 1998, the average number of special needs adoptions in the State in fiscal years 1995, 1996, and 1997; and "(B) with respect to any subsequent fiscal year, the number of special needs adoptions in the State in the fiscal year for which the number is the greatest in the period that begins with fiscal year 1997 and ends with the fiscal year preceding such subsequent fiscal year.
"(h) Limitations on Authorization of Appropriations.--
"(1) In general.--For grants under subsection (a), there are authorized to be appropriated to the Secretary $20,000,000 for each of fiscal years 1999 through 2003. "(2) Availability.--Amounts appropriated under paragraph (1) are authorized to remain available until expended, but not after fiscal year 2003.
"(i) Technical Assistance.--
"(1) In general.--The Secretary may, directly or through grants or contracts, provide technical assistance to assist States and local communities to reach their targets for increased numbers of adoptions and, to the extent that adoption is not possible, alternative permanent placements, for children in foster care. "(2) Description of the character of the technical assistance.--The technical assistance provided under paragraph (1) may support the goal of encouraging more adoptions out of the foster care system, when adoptions promote the best interests of children, and may include the following:
"(A) The development of best practice guidelines for expediting termination of parental rights. "(B) Models to encourage the use of concurrent planning. "(C) The development of specialized units and expertise in moving children toward adoption as a permanency goal. "(D) The development of risk assessment tools to facilitate early identification of the children who will be at risk of harm if returned home. "(E) Models to encourage the fast tracking of children who have not attained 1 year of age into pre-adoptive placements. "(F) Development of programs that place children into pre-adoptive families without waiting for termination of parental rights.
"(3) Targeting of technical assistance to the courts.--Not less than 50 percent of any amount appropriated pursuant to paragraph (4) shall be used to provide technical assistance to the courts. "(4) Limitations on authorization of appropriations.--To carry out this subsection, there are authorized to be appropriated to the Secretary of Health and Human Services not to exceed $10,000,000 for each of fiscal years 1998 through 2000.".
(b) Discretionary Cap Adjustment for Adoption Incentive Payments.--
Ante, p. 698.
(1) Section 251 amendment.--Section 251(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)), as amended by section 10203(a)(4) of the Balanced Budget Act of 1997, is amended by adding at the end the following new subparagraph:
"(G) Adoption incentive payments.--Whenever a bill or joint resolution making appropriations for fiscal year 1999, 2000, 2001, 2002, or 2003 is enacted that specifies an amount for adoption incentive payments pursuant to this part for the Department of Health and Human Services--
"(i) the adjustments for new budget authority shall be the amounts of new budget authority provided in that measure for adoption incentive payments, but not to exceed $20,000,000; and "(ii) the adjustment for outlays shall be the additional outlays flowing from such amount.".
Ante, p. 688.
(2) Section 314 amendment.--Section 314(b) of the Congressional Budget Act of 1974, as amended by section 10114(a) of the Balanced Budget Act of 1997, is amended--
(A) by striking "or" at the end of paragraph (4); (B) by striking the period at the end of paragraph (5) and inserting "; or"; and (C) by adding at the end the following: "(6) in the case of an amount for adoption incentive payments (as defined in section 251(b)(2)(G) of the Balanced Budget and Emergency Deficit Control Act of 1985) for fiscal year 1999, 2000, 2001, 2002, or 2003 for the Department of Health and Human Services, an amount not to exceed $20,000,000.".
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SEC. 202. ADOPTIONS ACROSS STATE AND COUNTY JURISDICTIONS.
(a) State Plan for Child Welfare Services Requirement.--Section 422(b) of the Social Security Act (42 U.S.C. 622(b)) is amended--
(1) in paragraph (10), by striking "and" at the end; (2) in paragraph (11), by striking the period and inserting "; and"; and (3) by adding at the end the following: "(12) contain assurances that the State shall develop plans for the effective use of cross-jurisdictional resources to facilitate timely adoptive or permanent placements for waiting children.".
(b) Condition of Assistance.--Section 474 of such Act (42 U.S.C. 674) is amended by adding at the end the following: "(e) Notwithstanding subsection (a), a State shall not be eligible for any payment under this section if the Secretary finds that, after the date of the enactment of this subsection, the State has--
"(1) denied or delayed the placement of a child for adoption when an approved family is available outside of the jurisdiction with responsibility for handling the case of the child; or "(2) failed to grant an opportunity for a fair hearing, as described in section 471(a)(12), to an individual whose allegation of a violation of paragraph (1) of this subsection is denied by the State or not acted upon by the State with reasonable promptness.".
42 USC 5111 note.
(c) Study of Interjurisdictional Adoption Issues.--
(1) In general.--The Comptroller General of the United States shall--
(A) study and consider how to improve procedures and policies to facilitate the timely and permanent adoptions of children across State and county jurisdictions; and (B) examine, at a minimum, interjurisdictional adoption issues--
(i) concerning the recruitment of prospective adoptive families from other States and counties; (ii) concerning the procedures to grant reciprocity to prospective adoptive family home studies from other States and counties; (iii) arising from a review of the comity and full faith and credit provided to adoption decrees and termination of parental rights orders from other States; and (iv) concerning the procedures related to the administration and implementation of the Interstate Compact on the Placement of Children.
(2) Report to the congress.--Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to the appropriate committees of the Congress a report that includes--
(A) the results of the study conducted under paragraph (1); and (B) recommendations on how to improve procedures to facilitate the interjurisdictional adoption of children, including interstate and intercounty adoptions, so that children will be assured timely and permanent placements.
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SEC. 203. PERFORMANCE OF STATES IN PROTECTING CHILDREN.
(a) Annual Report on State Performance.--Part E of title IV of the Social Security Act (42 U.S.C. 670 et seq.) is amended by adding at the end the following:
42 USC 679b.
"SEC. 479A. ANNUAL REPORT.
"The Secretary, in consultation with Governors, State legislatures, State and local public officials responsible for administering child welfare programs, and child welfare advocates, shall--
"(1) develop a set of outcome measures (including length of stay in foster care, number of foster care placements, and number of adoptions) that can be used to assess the performance of States in operating child protection and child welfare programs pursuant to parts B and E to ensure the safety of children; "(2) to the maximum extent possible, the outcome measures should be developed from data available from the Adoption and Foster Care Analysis and Reporting System; "(3) develop a system for rating the performance of States with respect to the outcome measures, and provide to the States an explanation of the rating system and how scores are determined under the rating system; "(4) prescribe such regulations as may be necessary to ensure that States provide to the Secretary the data necessary to determine State performance with respect to each outcome measure, as a condition of the State receiving funds under this part; and "(5) on May 1, 1999, and annually thereafter, prepare and submit to the Congress a report on the performance of each State on each outcome measure, which shall examine the reasons for high performance and low performance and, where possible, make recommendations as to how State performance could be improved.".
42 USC 679b note.
(b) Development of Performance-Based Incentive System.--The Secretary of Health and Human Services, in consultation with State and local public officials responsible for administering child welfare programs and child welfare advocates, shall study, develop, and recommend to Congress an incentive system to provide payments under parts B and E of title IV of the Social Security Act (42 U.S.C. 620 et seq., 670 et seq.) to any State based on the State's performance under such a system. Such a system shall, to the extent the Secretary determines feasible and appropriate, be based on the annual report required by section 479A of the Social Security Act (as added by subsection (a) of this section) or on any proposed modifications of the annual report. Not later than 6 months after the date of the enactment of this Act, the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a progress report on the feasibility, timetable, and consultation process for conducting such a study. Not later than 15 months after such date of enactment, the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate the final report on a performance-based incentive system. The report may include other recommendations for restructuring the program and payments under parts B and E of title IV of the Social Security Act.
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