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Administration for Children and Families US Department of Health and Human Services

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TITLE III--ADDITIONAL IMPROVEMENTS AND REFORMS

SEC. 301. EXPANSION OF CHILD WELFARE DEMONSTRATION PROJECTS.

(a) In General.--Section 1130(a) of the Social Security Act (42 U.S.C. 1320a-9) is amended to read as follows: "(a) Authority To Approve Demonstration Projects.--

"(1) In general.--The Secretary may authorize States to conduct demonstration projects pursuant to this section which the Secretary finds are likely to promote the objectives of part B or E of title IV. "(2) Limitation.--The Secretary may authorize not more than 10 demonstration projects under paragraph (1) in each of fiscal years 1998 through 2002. "(3) Certain types of proposals required to be considered.--

"(A) If an appropriate application therefor is submitted, the Secretary shall consider authorizing a demonstration project which is designed to identify and address barriers that result in delays to adoptive placements for children in foster care. "(B) If an appropriate application therefor is submitted, the Secretary shall consider authorizing a demonstration project which is designed to identify and address parental substance abuse problems that endanger children and result in the placement of children in foster care, including through the placement of children with their parents in residential treatment facilities (including residential treatment facilities for post- partum depression) that are specifically designed to serve parents and children together in order to promote family reunification and that can ensure the health and safety of the children in such placements. "(C) If an appropriate application therefor is submitted, the Secretary shall consider authorizing a demonstration project which is designed to address kinship care.

"(4) Limitation on eligibility.--The Secretary may not authorize a State to conduct a demonstration project under this section if the State fails to provide 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. "(5) Requirement to consider effect of project on terms and conditions of certain court orders.--In considering an application to conduct a demonstration project under this section that has been submitted by a State in which there is in effect a court order determining that the State's child welfare program has failed to comply with the provisions of part B or E of title IV, or with the Constitution of the United States, the Secretary shall take into consideration the effect of approving the proposed project on the terms and conditions of the court order related to the failure to comply.".

42 USC 1320a-9 note.

(b) Rule of Construction.--Nothing in the amendment made by subsection (a) shall be construed as affecting the terms and conditions of any demonstration project approved under section 1130 of the Social Security Act (42 U.S.C. 1320a-9) before the date of the enactment of this Act. (c) Authority To Extend Duration of Demonstrations.--Section 1130(d) of such Act (42 U.S.C. 1320a-9(d)) is amended by inserting ", unless in the judgment of the Secretary, the demonstration project should be allowed to continue" before the period.

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SEC. 302. PERMANENCY HEARINGS.

Section 475(5)(C) of the Social Security Act (42 U.S.C. 675(5)(C)) is amended--

(1) by striking "dispositional" and inserting "permanency"; (2) by striking "eighteen" and inserting "12"; (3) by striking "original placement" and inserting "date the child is considered to have entered foster care (as determined under subparagraph (F))"; and (4) by striking "future status of " and all that follows through "long term basis)" and inserting "permanency plan for the child that includes whether, and if applicable when, the child will be returned to the parent, placed for adoption and the State will file a petition for termination of parental rights, or referred for legal guardianship, or (in cases where the State agency has documented to the State court a compelling reason for determining that it would not be in the best interests of the child to return home, be referred for termination of parental rights, or be placed for adoption, with a fit and willing relative, or with a legal guardian) placed in another planned permanent living arrangement".

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SEC. 303. KINSHIP CARE.

42 USC 5113 note.

(a) Report.--

(1) In general.--The Secretary of Health and Human Services shall--

(A) not later than June 1, 1998, convene the advisory panel provided for in subsection (b)(1) and prepare and submit to the advisory panel an initial report on the extent to which children in foster care are placed in the care of a relative (in this section referred to as "kinship care"); and (B) not later than June 1, 1999, submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a final report on the matter described in subparagraph (A), which shall--

(i) be based on the comments submitted by the advisory panel pursuant to subsection (b)(2) and other information and considerations; and (ii) include the policy recommendations of the Secretary with respect to the matter.

(2) Required contents.--Each report required by paragraph (1) shall--

(A) include, to the extent available for each State, information on--

(i) the policy of the State regarding kinship care; (ii) the characteristics of the kinship care providers (including age, income, ethnicity, and race, and the relationship of the kinship care providers to the children); (iii) the characteristics of the household of such providers (such as number of other persons in the household and family composition); (iv) how much access to the child is afforded to the parent from whom the child has been removed; (v) the cost of, and source of funds for, kinship care (including any subsidies such as medicaid and cash assistance); (vi) the permanency plan for the child and the actions being taken by the State to achieve the plan; (vii) the services being provided to the parent from whom the child has been removed; and (viii) the services being provided to the kinship care provider; and

(B) specifically note the circumstances or conditions under which children enter kinship care.

(b) Advisory Panel.--

(1) Establishment.--The Secretary of Health and Human Services, in consultation with the Chairman of the Committee on Ways and Means of the House of Representatives and the Chairman of the Committee on Finance of the Senate, shall convene an advisory panel which shall include parents, foster parents, relative caregivers, former foster children, State and local public officials responsible for administering child welfare programs, private persons involved in the delivery of child welfare services, representatives of tribal governments and tribal courts, judges, and academic experts. (2) Duties.--The advisory panel convened pursuant to paragraph (1) shall review the report prepared pursuant to subsection (a), and, not later than October 1, 1998, submit to the Secretary comments on the report.

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SEC. 304. CLARIFICATION OF ELIGIBLE POPULATION FOR INDEPENDENT LIVING SERVICES.

Section 477(a)(2)(A) of the Social Security Act (42 U.S.C. 677(a)(2)(A)) is amended by inserting "(including children with respect to whom such payments are no longer being made because the child has accumulated assets, not to exceed $5,000, which are otherwise regarded as resources for purposes of determining eligibility for benefits under this part)" before the comma.

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SEC. 305. REAUTHORIZATION AND EXPANSION OF FAMILY PRESERVATION AND SUPPORT SERVICES.

(a) Reauthorization of Family Preservation and Support Services.--

(1) In general.--Section 430(b) of the Social Security Act (42 U.S.C. 629(b)) is amended--

(A) in paragraph (4), by striking "or" at the end; (B) in paragraph (5), by striking the period and inserting a semicolon; and (C) by adding at the end the following: "(6) for fiscal year 1999, $275,000,000; "(7) for fiscal year 2000, $295,000,000; and "(8) for fiscal year 2001, $305,000,000.".

(2) Continuation of reservation of certain amounts.-- Paragraphs (1) and (2) of section 430(d) of the Social Security Act (42 U.S.C. 629(d)(1) and (2)) are each amended by striking "and 1998" and inserting "1998, 1999, 2000, and 2001". (3) Conforming amendments.--Section 13712 of the Omnibus Budget Reconciliation Act of 1993 (42 U.S.C. 670 note) is amended--

(A) in subsection (c), by striking "1998" each place it appears and inserting "2001"; and (B) in subsection (d)(2), by striking "and 1998" and inserting "1998, 1999, 2000, and 2001".

(b) Expansion for Time-Limited Family Reunification Services and Adoption Promotion and Support Services.--

(1) Additions to state plan.--Section 432 of the Social Security Act (42 U.S.C. 629b) is amended--

(A) in subsection (a)--

(i) in paragraph (4), by striking "and community-based family support services" and inserting ", community-based family support services, time-limited family reunification services, and adoption promotion and support services,"; and (ii) in paragraph (5)(A), by striking "and community-based family support services" and inserting ", community-based family support services, time-limited family reunification services, and adoption promotion and support services"; and

(B) in subsection (b)(1), by striking "and family support" and inserting ", family support, time-limited family reunification, and adoption promotion and support".

(2) Definitions of time-limited family reunification services and adoption promotion and support services.--Section 431(a) of the Social Security Act (42 U.S.C. 629a(a)) is amended by adding at the end the following: "(7) Time-limited family reunification services.--

"(A) In general.--The term 'time-limited family reunification services' means the services and activities described in subparagraph (B) that are provided to a child that is removed from the child's home and placed in a foster family home or a child care institution and to the parents or primary caregiver of such a child, in order to facilitate the reunification of the child safely and appropriately within a timely fashion, but only during the 15-month period that begins on the date that the child, pursuant to section 475(5)(F), is considered to have entered foster care. "(B) Services and activities described.--The services and activities described in this subparagraph are the following:

"(i) Individual, group, and family counseling. "(ii) Inpatient, residential, or outpatient substance abuse treatment services. "(iii) Mental health services. "(iv) Assistance to address domestic violence. "(v) Services designed to provide temporary child care and therapeutic services for families, including crisis nurseries. "(vi) Transportation to or from any of the services and activities described in this subparagraph.

"(8) Adoption promotion and support services.--The term 'adoption promotion and support services' means services and activities designed to encourage more adoptions out of the foster care system, when adoptions promote the best interests of children, including such activities as pre- and post-adoptive services and activities designed to expedite the adoption process and support adoptive families.".

(3) Additional conforming amendments.--

(A) Purposes.--Section 430(a) of the Social Security Act (42 U.S.C. 629(a)) is amended by striking "and community-based family support services" and inserting ", community-based family support services, time-limited family reunification services, and adoption promotion and support services". (B) Program title.--The heading of subpart 2 of part B of title IV of the Social Security Act (42 U.S.C. 629 et seq.) is amended to read as follows: "Subpart 2--Promoting Safe and Stable Families".

(c) Emphasizing the Safety of the Child.--

(1) Requiring assurances that the safety of children shall be of paramount concern.--Section 432(a) of the Social Security Act (42 U.S.C. 629b(a)) is amended--

(A) by striking "and" at the end of paragraph (7); (B) by striking the period at the end of paragraph (8); and (C) by adding at the end the following: "(9) contains assurances that in administering and conducting service programs under the plan, the safety of the children to be served shall be of paramount concern.".

(2) Definitions of family preservation and family support services.--Section 431(a) of the Social Security Act (42 U.S.C. 629a(a)) is amended--

(A) in paragraph (1)--

(i) in subparagraph (A), by inserting "safe and" before "appropriate" each place it appears; and (ii) in subparagraph (B), by inserting "safely" after "remain"; and

(B) in paragraph (2)--

(i) by inserting "safety and" before "well-being "; and (ii) by striking "stable" and inserting "safe, stable,".

(d) Clarification of Maintenance of Effort Requirement.--

(1) Definition of non-federal funds.--Section 431(a) of the Social Security Act (42 U.S.C. 629a(a)), as amended by subsection (b)(2), is amended by adding at the end the following: "(9) Non-federal funds.--The term 'non-Federal funds' means State funds, or at the option of a State, State and local funds.".

42 USC 629a note.

(2) Effective date.--The amendment made by paragraph (1) takes effect as if included in the enactment of section 13711 of the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-33; 107 Stat. 649).

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SEC. 306. HEALTH INSURANCE COVERAGE FOR CHILDREN WITH SPECIAL NEEDS.

Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as amended by section 106, is amended--

(1) in paragraph (19), by striking "and" at the end; (2) in paragraph (20), by striking the period and inserting "; and"; and (3) by adding at the end the following: "(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.".

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SEC. 307. CONTINUATION OF ELIGIBILITY FOR ADOPTION ASSISTANCE PAYMENTS ON BEHALF OF CHILDREN WITH SPECIAL NEEDS WHOSE INITIAL ADOPTION HAS BEEN DISSOLVED.

(a) Continuation of Eligibility.--Section 473(a)(2) of the Social Security Act (42 U.S.C. 673(a)(2)) is amended by adding at the end the following: "Any child who meets the requirements of subparagraph (C), who was determined eligible for adoption assistance payments under this part with respect to a prior adoption, who is available for adoption because the prior adoption has been dissolved and the parental rights of the adoptive parents have been terminated or because the child's adoptive parents have died, and who fails to meet the requirements of subparagraphs (A) and (B) but would meet such requirements if the child were treated as if the child were in the same financial and other circumstances the child was in the last time the child was determined eligible for adoption assistance payments under this part and the prior adoption were treated as never having occurred, shall be treated as meeting the requirements of this paragraph for purposes of paragraph (1)(B)(ii).".

42 USC 673 note.

(b) Applicability.--The amendment made by subsection (a) shall only apply to children who are adopted on or after October 1, 1997.

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SEC. 308. STATE STANDARDS TO ENSURE QUALITY SERVICES FOR CHILDREN IN FOSTER CARE.

Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as amended by sections 106 and 306, is amended--

(1) in paragraph (20), by striking "and" at the end; (2) in paragraph (21), by striking the period and inserting "; and"; and (3) by adding at the end the following: "(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.".

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