[110th Congress Public Law 351]
[From the U.S. Government Printing Office]


[DOCID: f:publ351.110]

[[Page 122 STAT. 3949]]

Public Law 110-351
110th Congress

                                 An Act


 
To amend parts B and E of title IV of the Social Security Act to connect 
and support relative caregivers, improve outcomes for children in foster 
   care, provide for tribal foster care and adoption access, improve 
    incentives for adoption, and for other purposes. <<NOTE: Oct. 7, 
                         2008 -  [H.R. 6893]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Fostering 
Connections to Success and Increasing Adoptions Act of 2008.>> 
SECTION 1. <<NOTE: 42 USC 1305 note.>> SHORT TITLE.

    This Act may be cited as the ``Fostering Connections to Success and 
Increasing Adoptions Act of 2008''.
SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

         TITLE I--CONNECTING AND SUPPORTING RELATIVE CAREGIVERS

Sec. 101. Kinship guardianship assistance payments for children.
Sec. 102. Family connection grants.
Sec. 103. Notification of relatives.
Sec. 104. Licensing standards for relatives.
Sec. 105. Authority for comparisons and disclosures of information in 
           the Federal Parent Locator Service for child welfare, foster 
           care, and adoption assistance program purposes.

        TITLE II--IMPROVING OUTCOMES FOR CHILDREN IN FOSTER CARE

Sec. 201. State option for children in foster care, and certain children 
           in an adoptive or guardianship placement, after attaining age 
           18.
Sec. 202. Transition plan for children aging out of foster care.
Sec. 203. Short-term training for child welfare agencies, relative 
           guardians, and court personnel.
Sec. 204. Educational stability.
Sec. 205. Health oversight and coordination plan.
Sec. 206. Sibling placement.

            TITLE III--TRIBAL FOSTER CARE AND ADOPTION ACCESS

Sec. 301. Equitable access for foster care and adoption services for 
           Indian children in tribal areas.
Sec. 302. Technical assistance and implementation.

            TITLE IV--IMPROVEMENT OF INCENTIVES FOR ADOPTION

Sec. 401. Adoption incentives program.
Sec. 402. Promotion of adoption of children with special needs.
Sec. 403. Information on adoption tax credit.

    TITLE V--CLARIFICATION OF UNIFORM DEFINITION OF CHILD AND OTHER 
                               PROVISIONS

Sec. 501. Clarification of uniform definition of child.
Sec. 502. Investment of operating cash.
Sec. 503. No Federal funding to unlawfully present individuals.

[[Page 122 STAT. 3950]]

                        TITLE VI--EFFECTIVE DATE

Sec. 601. Effective date.

         TITLE I--CONNECTING AND SUPPORTING RELATIVE CAREGIVERS

SEC. 101. KINSHIP GUARDIANSHIP ASSISTANCE PAYMENTS FOR CHILDREN.

    (a) State Plan Option.--Section 471(a) of the Social Security Act 
(42 U.S.C. 671(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (26);
            (2) by striking the period at the end of paragraph (27) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(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).''.

    (b) In General.--Section 473 of such Act (42 U.S.C. 673) is amended 
by adding at the end the following:
    ``(d) Kinship Guardianship Assistance Payments for Children.--
            ``(1) Kinship guardianship assistance agreement.--
                    ``(A) In general.--In order to receive payments 
                under section 474(a)(5), a State shall--
                          ``(i) negotiate and enter into a written, 
                      binding kinship guardianship assistance agreement 
                      with the prospective relative guardian of a child 
                      who meets the requirements of this paragraph; and
                          ``(ii) provide the prospective relative 
                      guardian with a copy of the agreement.
                    ``(B) Minimum requirements.--The agreement shall 
                specify, at a minimum--
                          ``(i) the amount of, and manner in which, each 
                      kinship guardianship assistance payment will be 
                      provided under the agreement, and the manner in 
                      which the payment may be adjusted periodically, in 
                      consultation with the relative guardian, based on 
                      the circumstances of the relative guardian and the 
                      needs of the child;
                          ``(ii) the additional services and assistance 
                      that the child and relative guardian will be 
                      eligible for under the agreement;
                          ``(iii) the procedure by which the relative 
                      guardian may apply for additional services as 
                      needed; and
                          ``(iv) subject to subparagraph (D), that the 
                      State will pay the total cost of nonrecurring 
                      expenses associated with obtaining legal 
                      guardianship of the child, to the extent the total 
                      cost does not exceed $2,000.
                    ``(C) Interstate applicability.--The agreement shall 
                provide that the agreement shall remain in effect 
                without regard to the State residency of the relative 
                guardian.

[[Page 122 STAT. 3951]]

                    ``(D) No effect on federal reimbursement.--Nothing 
                in subparagraph (B)(iv) shall be construed as affecting 
                the ability of the State to obtain reimbursement from 
                the Federal Government for costs described in that 
                subparagraph.
            ``(2) Limitations on amount of kinship guardianship 
        assistance payment.--A kinship guardianship assistance payment 
        on behalf of a child shall not exceed the foster care 
        maintenance payment which would have been paid on behalf of the 
        child if the child had remained in a foster family home.
            ``(3) Child's eligibility for a kinship guardianship 
        assistance payment.--
                    ``(A) In general.--A child is eligible for a kinship 
                guardianship assistance payment under this subsection if 
                the State agency determines the following:
                          ``(i) The child has been--
                                    ``(I) removed from his or her home 
                                pursuant to a voluntary placement 
                                agreement or as a result of a judicial 
                                determination to the effect that 
                                continuation in the home would be 
                                contrary to the welfare of the child; 
                                and
                                    ``(II) eligible for foster care 
                                maintenance payments under section 472 
                                while residing for at least 6 
                                consecutive months in the home of the 
                                prospective relative guardian.
                          ``(ii) Being returned home or adopted are not 
                      appropriate permanency options for the child.
                          ``(iii) The child demonstrates a strong 
                      attachment to the prospective relative guardian 
                      and the relative guardian has a strong commitment 
                      to caring permanently for the child.
                          ``(iv) With respect to a child who has 
                      attained 14 years of age, the child has been 
                      consulted regarding the kinship guardianship 
                      arrangement.
                    ``(B) Treatment of siblings.--With respect to a 
                child described in subparagraph (A) whose sibling or 
                siblings are not so described--
                          ``(i) the child and any sibling of the child 
                      may be placed in the same kinship guardianship 
                      arrangement, in accordance with section 
                      471(a)(31), if the State agency and the relative 
                      agree on the appropriateness of the arrangement 
                      for the siblings; and
                          ``(ii) kinship guardianship assistance 
                      payments may be paid on behalf of each sibling so 
                      placed.''.

    (c) Conforming Amendments.--
            (1) Eligibility for adoption assistance payments.--Section 
        473(a)(2) of such Act (42 U.S.C. 673(a)(2)) is amended by adding 
        at the end the following:
            ``(D) In determining the eligibility for adoption assistance 
        payments of a child in a legal guardianship arrangement 
        described in section 471(a)(28), the placement of the child with 
        the relative guardian involved and any kinship guardianship 
        assistance payments made on behalf of the child shall be 
        considered never to have been made.''.
            (2) State plan requirement.--
                    (A) In general.--Section 471(a)(20) of such Act (42 
                U.S.C. 671(a)(20)) is amended--

[[Page 122 STAT. 3952]]

                          (i) by adding ``and'' at the end of 
                      subparagraph (C); and
                          (ii) by adding at the end the following:
                    ``(D) 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 (C) 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;''.
                    (B) Redesignation of new provision after amendment 
                made by prior law takes effect.--
                          (i) In general.--Section 471(a)(20) of the 
                      Social Security Act (42 U.S.C. 671(a)(20)) is 
                      amended--
                                    (I) in subparagraph (D), by striking 
                                ``(C)'' and inserting ``(B)''; and
                                    (II) by redesignating subparagraph 
                                (D) as subparagraph (C).
                          (ii) Effective <<NOTE: 42 USC 671 
                      note.>> date.--The amendments made by clause (i) 
                      shall take effect immediately after the amendments 
                      made by section 152 of Public Law 109-248 take 
                      effect.
            (3) Payments to states.--Section 474(a) of such Act (42 
        U.S.C. 674(a)) is amended--
                    (A) by striking the period at the end and inserting 
                ``; plus''; and
                    (B) by adding at the end the following:
            ``(5) an amount equal to the percentage by which the 
        expenditures referred to in paragraph (2) of this subsection are 
        reimbursed of the total amount expended during such quarter as 
        kinship guardianship assistance payments under section 473(d) 
        pursuant to kinship guardianship assistance agreements.''.
            (4) Case plan requirements.--Section 475(1) of such Act (42 
        U.S.C. 675(1)) is amended by adding at the end the following:
                    ``(F) In the case of a child with respect to whom 
                the permanency plan is placement with a relative and 
                receipt of kinship guardianship assistance payments 
                under section 473(d), a description of--
                          ``(i) the steps that the agency has taken to 
                      determine that it is not appropriate for the child 
                      to be returned home or adopted;
                          ``(ii) the reasons for any separation of 
                      siblings during placement;
                          ``(iii) the reasons why a permanent placement 
                      with a fit and willing relative through a kinship 
                      guardianship assistance arrangement is in the 
                      child's best interests;
                          ``(iv) the ways in which the child meets the 
                      eligibility requirements for a kinship 
                      guardianship assistance payment;
                          ``(v) the efforts the agency has made to 
                      discuss adoption by the child's relative foster 
                      parent as a more

[[Page 122 STAT. 3953]]

                      permanent alternative to legal guardianship and, 
                      in the case of a relative foster parent who has 
                      chosen not to pursue adoption, documentation of 
                      the reasons therefor; and
                          ``(vi) the efforts made by the State agency to 
                      discuss with the child's parent or parents the 
                      kinship guardianship assistance arrangement, or 
                      the reasons why the efforts were not made.''.
            (5) Section heading amendment.--The section heading for 
        section 473 of such Act (42 U.S.C. 673) is amended by inserting 
        ``and guardianship'' after ``adoption''.

    (d) Continued Services Under Waiver.--Section 474 of such Act (42 
U.S.C. 674) is amended by adding at the end the following:
    ``(g) For purposes of this part, after the termination of a 
demonstration project relating to guardianship conducted by a State 
under section 1130, the expenditures of the State for the provision, to 
children who, as of September 30, 2008, were receiving assistance or 
services under the project, of the same assistance and services under 
the same terms and conditions that applied during the conduct of the 
project, are deemed to be expenditures under the State plan approved 
under this part.''.
    (e) Eligibility for Independent Living Services and Education and 
Training Vouchers for Children Who Exit Foster Care for Relative 
Guardianship or Adoption After Age 16.--
            (1) Independent living services.--Section 477(a) of such Act 
        (42 U.S.C. 677(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph (5);
                    (B) by striking the period at the end of paragraph 
                (6) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(7) to provide the services referred to in this subsection 
        to children who, after attaining 16 years of age, have left 
        foster care for kinship guardianship or adoption.''.
            (2) Education and training vouchers.--Section 477(i)(2) of 
        such Act (42 U.S.C. 677(i)(2)) is amended by striking ``adopted 
        from foster care after attaining age 16'' and inserting ``who, 
        after attaining 16 years of age, are adopted from, or enter 
        kinship guardianship from, foster care''.

    (f) Categorical Eligibility for Medicaid.--Section 473(b)(3) of such 
Act (42 U.S.C. 673(b)(3)) is amended--
            (1) in subparagraph (A)(ii), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the period and 
        inserting ``, or''; and
            (3) by adding at the end the following:
            ``(C) with respect to whom kinship guardianship assistance 
        payments are being made pursuant to subsection (d).''.
SEC. 102. FAMILY CONNECTION GRANTS.

    (a) In General.--Part B of title IV of the Social Security Act (42 
U.S.C. 620-629i) is amended by inserting after section 426 the 
following:
``SEC. 427. <<NOTE: 42 USC 627.>> FAMILY CONNECTION GRANTS.

    ``(a) In General.--The Secretary of Health and Human Services may 
make matching grants to State, local, or tribal child welfare agencies, 
and private nonprofit organizations that have experience in working with 
foster children or children in kinship care arrangements, for the 
purpose of helping children who are in, or at risk

[[Page 122 STAT. 3954]]

of entering, foster care reconnect with family members through the 
implementation of--
            ``(1) a kinship navigator program to assist kinship 
        caregivers in learning about, finding, and using programs and 
        services to meet the needs of the children they are raising and 
        their own needs, and to promote effective partnerships among 
        public and private agencies to ensure kinship caregiver families 
        are served, which program--
                    ``(A) shall be coordinated with other State or local 
                agencies that promote service coordination or provide 
                information and referral services, including the 
                entities that provide 2-1-1 or 3-1-1 information systems 
                where available, to avoid duplication or fragmentation 
                of services to kinship care families;
                    ``(B) shall be planned and operated in consultation 
                with kinship caregivers and organizations representing 
                them, youth raised by kinship caregivers, relevant 
                government agencies, and relevant community-based or 
                faith-based organizations;
                    ``(C) shall establish information and referral 
                systems that link (via toll-free access) kinship 
                caregivers, kinship support group facilitators, and 
                kinship service providers to--
                          ``(i) each other;
                          ``(ii) eligibility and enrollment information 
                      for Federal, State, and local benefits;
                          ``(iii) relevant training to assist kinship 
                      caregivers in caregiving and in obtaining benefits 
                      and services; and
                          ``(iv) relevant legal assistance and help in 
                      obtaining legal services;
                    ``(D) shall provide outreach to kinship care 
                families, including by establishing, distributing, and 
                updating a kinship care website, or other relevant 
                guides or outreach materials;
                    ``(E) shall promote partnerships between public and 
                private agencies, including schools, community based or 
                faith-based organizations, and relevant government 
                agencies, to increase their knowledge of the needs of 
                kinship care families to promote better services for 
                those families;
                    ``(F) may establish and support a kinship care 
                ombudsman with authority to intervene and help kinship 
                caregivers access services; and
                    ``(G) may support any other activities designed to 
                assist kinship caregivers in obtaining benefits and 
                services to improve their caregiving;
            ``(2) intensive family-finding efforts that utilize search 
        technology to find biological family members for children in the 
        child welfare system, and once identified, work to reestablish 
        relationships and explore ways to find a permanent family 
        placement for the children;
            ``(3) family group decision-making meetings for children in 
        the child welfare system, that--
                    ``(A) enable families to make decisions and develop 
                plans that nurture children and protect them from abuse 
                and neglect, and

[[Page 122 STAT. 3955]]

                    ``(B) when appropriate, shall address domestic 
                violence issues in a safe manner and facilitate 
                connecting children exposed to domestic violence to 
                appropriate services, including reconnection with the 
                abused parent when appropriate; or
            ``(4) residential family treatment programs that--
                    ``(A) enable parents and their children to live in a 
                safe environment for a period of not less than 6 months; 
                and
                    ``(B) provide, on-site or by referral, substance 
                abuse treatment services, children's early intervention 
                services, family counseling, medical, and mental health 
                services, nursery and pre-school, and other services 
                that are designed to provide comprehensive treatment 
                that supports the family.

    ``(b) Applications.--An entity desiring to receive a matching grant 
under this section shall submit to the Secretary an application, at such 
time, in such manner, and containing such information as the Secretary 
may require, including--
            ``(1) a description of how the grant will be used to 
        implement 1 or more of the activities described in subsection 
        (a);
            ``(2) a description of the types of children and families to 
        be served, including how the children and families will be 
        identified and recruited, and an initial projection of the 
        number of children and families to be served;
            ``(3) if the entity is a private organization--
                    ``(A) documentation of support from the relevant 
                local or State child welfare agency; or
                    ``(B) a description of how the organization plans to 
                coordinate its services and activities with those 
                offered by the relevant local or State child welfare 
                agency; and
            ``(4) an assurance that the entity will cooperate fully with 
        any evaluation provided for by the Secretary under this section.

    ``(c) Limitations.--
            ``(1) Grant duration.--The Secretary may award a grant under 
        this section for a period of not less than 1 year and not more 
        than 3 years.
            ``(2) Number of new grantees per year.--The Secretary may 
        not award a grant under this section to more than 30 new 
        grantees each fiscal year.

    ``(d) Federal Contribution.--The amount of a grant payment to be 
made to a grantee under this section during each year in the grant 
period shall be the following percentage of the total expenditures 
proposed to be made by the grantee in the application approved by the 
Secretary under this section:
            ``(1) 75 percent, if the payment is for the 1st or 2nd year 
        of the grant period.
            ``(2) 50 percent, if the payment is for the 3rd year of the 
        grant period.

    ``(e) Form of Grantee Contribution.--A grantee under this section 
may provide not more than 50 percent of the amount which the grantee is 
required to expend to carry out the activities for which a grant is 
awarded under this section in kind, fairly evaluated, including plant, 
equipment, or services.
    ``(f) Use of Grant.--A grantee under this section shall use the 
grant in accordance with the approved application for the grant.
    ``(g) Reservations of Funds.--

[[Page 122 STAT. 3956]]

            ``(1) Kinship navigator programs.--The Secretary shall 
        reserve $5,000,000 of the funds made available under subsection 
        (h) for each fiscal year for grants to implement kinship 
        navigator programs described in subsection (a)(1).
            ``(2) Evaluation.--The Secretary shall reserve 3 percent of 
        the funds made available under subsection (h) for each fiscal 
        year for the conduct of a rigorous evaluation of the activities 
        funded with grants under this section.
            ``(3) Technical assistance.--The Secretary may reserve 2 
        percent of the funds made available under subsection (h) for 
        each fiscal year to provide technical assistance to recipients 
        of grants under this section.

    ``(h) Appropriation.--Out of any money in the Treasury of the United 
States not otherwise appropriated, there are appropriated to the 
Secretary for purposes of making grants under this section $15,000,000 
for each of fiscal years 2009 through 2013.''.
    (b) Conforming Amendment.--Section 425 of such Act (42 U.S.C. 625) 
is amended by inserting ``(other than sections 426, 427, and 429)'' 
after ``this subpart''.
    (c) Renaming of Program.--The subpart heading for subpart 1 of part 
B of title IV of such Act is amended to read as follows:

  ``Subpart 1--Stephanie Tubbs Jones Child Welfare Services Program''.

SEC. 103. NOTIFICATION OF RELATIVES.

    Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as 
amended by section 101(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(29) <<NOTE: Deadline.>> 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 all adult grandparents 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.''.

[[Page 122 STAT. 3957]]

SEC. 104. LICENSING STANDARDS FOR RELATIVES.

    (a) State Plan Amendment.--Section 471(a)(10) of the Social Security 
Act (42 U.S.C. 671(a)(10)) is amended--
            (1) by striking ``and provides'' and inserting ``provides''; 
        and
            (2) by inserting before the semicolon the following: ``, and 
        provides that a waiver of any such standard may be made only on 
        a case-by-case basis for non-safety standards (as determined by 
        the State) in relative foster family homes for specific children 
        in care''.

    (b) Report.--Not later than 2 years after the date of enactment of 
this Act, 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 that includes the following:
            (1) Nationally and for each State, the number and percentage 
        of children in foster care placed in licensed relative foster 
        family homes and the number and percentage of such children 
        placed in unlicensed relative foster family homes.
            (2) The frequency with which States grant case-by-case 
        waivers of non-safety licensing standards for relative foster 
        family homes.
            (3) The types of non-safety licensing standards waived.
            (4) An assessment of how such case-by-case waivers of non-
        safety licensing standards have affected children in foster 
        care, including their safety, permanency, and well-being.
            (5) A review of any reasons why relative foster family homes 
        may not be able to be licensed, despite State authority to grant 
        such case-by-case waivers of non-safety licensing standards.
            (6) Recommendations for administrative or legislative 
        actions that may increase the percentage of relative foster 
        family homes that are licensed while ensuring the safety of 
        children in foster care and improving their permanence and well-
        being.
SEC. 105. AUTHORITY FOR COMPARISONS AND DISCLOSURES OF INFORMATION 
                        IN THE FEDERAL PARENT LOCATOR SERVICE FOR 
                        CHILD WELFARE, FOSTER CARE, AND ADOPTION 
                        ASSISTANCE PROGRAM PURPOSES.

    Section 453(j)(3) of the Social Security Act (42 U.S.C. 653(j)) is 
amended, in the matter preceding subparagraph (A), by inserting ``, part 
B, or part E'' after ``this part''.

        TITLE II--IMPROVING OUTCOMES FOR CHILDREN IN FOSTER CARE

SEC. 201. STATE OPTION FOR CHILDREN IN FOSTER CARE, AND CERTAIN 
                        CHILDREN IN AN ADOPTIVE OR GUARDIANSHIP 
                        PLACEMENT, AFTER ATTAINING AGE 18.

    (a) Definition of Child.--Section 475 of the Social Security Act (42 
U.S.C. 675) is amended by adding at the end the following:
            ``(8)(A) Subject to subparagraph (B), the term `child' means 
        an individual who has not attained 18 years of age.
            ``(B) At the option of a State, the term shall include an 
        individual--

[[Page 122 STAT. 3958]]

                    ``(i)(I) who is in foster care under the 
                responsibility of the State;
                    ``(II) with respect to whom an adoption assistance 
                agreement is in effect under section 473 if the child 
                had attained 16 years of age before the agreement became 
                effective; or
                    ``(III) with respect to whom a kinship guardianship 
                assistance agreement is in effect under section 473(d) 
                if the child had attained 16 years of age before the 
                agreement became effective;
                    ``(ii) who has attained 18 years of age;
                    ``(iii) who has not attained 19, 20, or 21 years of 
                age, as the State may elect; and
                    ``(iv) who is--
                          ``(I) completing secondary education or a 
                      program leading to an equivalent credential;
                          ``(II) enrolled in an institution which 
                      provides post-secondary or vocational education;
                          ``(III) participating in a program or activity 
                      designed to promote, or remove barriers to, 
                      employment;
                          ``(IV) employed for at least 80 hours per 
                      month; or
                          ``(V) incapable of doing any of the activities 
                      described in subclauses (I) through (IV) due to a 
                      medical condition, which incapability is supported 
                      by regularly updated information in the case plan 
                      of the child.''.

    (b) Conforming <<NOTE: Regulations.>> Amendment to Definition of 
Child-Care Institution.--Section 472(c)(2) of such Act (42 U.S.C. 
672(c)(2)) is amended by inserting ``except, in the case of a child who 
has attained 18 years of age, the term shall include a supervised 
setting in which the individual is living independently, in accordance 
with such conditions as the Secretary shall establish in regulations,'' 
before ``but''.

    (c) Conforming Amendments to Age Limits Applicable to Children 
Eligible for Adoption Assistance or Kinship Guardianship Assistance.--
Section 473(a)(4) of such Act (42 U.S.C. 673(a)(4)) is amended to read 
as follows:
    ``(4)(A) Notwithstanding any other provision of this section, a 
payment may not be made pursuant to this section to parents or relative 
guardians with respect to a child--
            ``(i) who has attained--
                    ``(I) 18 years of age, or such greater age as the 
                State may elect under section 475(8)(B)(iii); or
                    ``(II) 21 years of age, if the State determines that 
                the child has a mental or physical handicap which 
                warrants the continuation of assistance;
            ``(ii) who has not attained 18 years of age, if the State 
        determines that the parents or relative guardians, as the case 
        may be, are no longer legally responsible for the support of the 
        child; or
            ``(iii) if the State determines that the child is no longer 
        receiving any support from the parents or relative guardians, as 
        the case may be.

    ``(B) Parents or relative guardians who have been receiving adoption 
assistance payments or kinship guardianship assistance

[[Page 122 STAT. 3959]]

payments under this section shall keep the State or local agency 
administering the program under this section informed of circumstances 
which would, pursuant to this subsection, make them ineligible for the 
payments, or eligible for the payments in a different amount.''.
    (d) Effective Date.--The <<NOTE: 42 USC 672 note.>> amendments made 
by this section shall take effect on October 1, 2010.
SEC. 202. TRANSITION PLAN FOR CHILDREN AGING OUT OF FOSTER CARE.

    Section 475(5) of the Social Security Act (42 U.S.C. 675) is 
amended--
            (1) in subparagraph (F)(ii), by striking ``and'' at the end;
            (2) in subparagraph (G), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(H) during the 90-day period immediately prior to 
                the date on which the child will attain 18 years of age, 
                or such greater age as the State may elect under 
                paragraph (8)(B)(iii), whether during that period foster 
                care maintenance payments are being made on the child's 
                behalf or the child is receiving benefits or services 
                under section 477, a caseworker on the staff of the 
                State agency, and, as appropriate, other representatives 
                of the child provide the child with assistance and 
                support in developing a transition plan that is 
                personalized at the direction of the child, includes 
                specific options on housing, health insurance, 
                education, local opportunities for mentors and 
                continuing support services, and work force supports and 
                employment services, and is as detailed as the child may 
                elect.''.
SEC. 203. SHORT-TERM TRAINING FOR CHILD WELFARE AGENCIES, RELATIVE 
                        GUARDIANS, AND COURT PERSONNEL.

    (a) In General.--Section 474(a)(3)(B) of the Social Security Act (42 
U.S.C. 674(a)(3)(B)) is amended--
            (1) by inserting ``or relative guardians'' after ``adoptive 
        parents'';
            (2) by striking ``and the members'' and inserting ``, the 
        members'';
            (3) by inserting ``, or State-licensed or State-approved 
        child welfare agencies providing services,'' after ``providing 
        care'';
            (4) by striking ``foster and adopted'' the 1st place it 
        appears;
            (5) by inserting ``and members of the staff of abuse and 
        neglect courts, agency attorneys, attorneys representing 
        children or parents, guardians ad litem, or other court-
        appointed special advocates representing children in proceedings 
        of such courts,'' after ``part,'';
            (6) by inserting ``guardians,'' before ``staff members,'';
            (7) by striking ``and institutions'' and inserting 
        ``institutions, attorneys, and advocates''; and
            (8) by inserting ``and children living with relative 
        guardians'' after ``foster and adopted children'' the 2nd place 
        it appears.

    (b) Phase-in.--With <<NOTE: Applicability. 42 USC 674 
note.>> respect to an expenditure described in section 474(a)(3)(B) of 
the Social Security Act by reason of an amendment made by subsection (a) 
of this section, in lieu of the

[[Page 122 STAT. 3960]]

percentage set forth in such section 474(a)(3)(B), the percentage that 
shall apply is--
            (1) 55 percent, if the expenditure is made in fiscal year 
        2009;
            (2) 60 percent, if the expenditure is made in fiscal year 
        2010;
            (3) 65 percent, if the expenditure is made in fiscal year 
        2011; or
            (4) 70 percent, if the expenditure is made in fiscal year 
        2012.
SEC. 204. EDUCATIONAL STABILITY.

    (a) In General.--Section 475 of the Social Security Act (42 U.S.C. 
675), as amended by section 101(c)(4) of this Act, is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (C), by striking clause (iv) and 
                redesignating clauses (v) through (viii) as clauses (iv) 
                through (vii), respectively; and
                    (B) by adding at the end the following:
                    ``(G) A plan for ensuring the educational stability 
                of the child while in foster care, including--
                          ``(i) assurances that the placement of the 
                      child in foster care takes into account the 
                      appropriateness of the current educational setting 
                      and the proximity to the school in which the child 
                      is enrolled at the time of placement; and
                          ``(ii)(I) an assurance that the State agency 
                      has coordinated with appropriate local educational 
                      agencies (as defined under section 9101 of the 
                      Elementary and Secondary Education Act of 1965) to 
                      ensure that the child remains in the school in 
                      which the child is enrolled at the time of 
                      placement; or
                          ``(II) if remaining in such school is not in 
                      the best interests of the child, assurances by the 
                      State agency and the local educational agencies to 
                      provide immediate and appropriate enrollment in a 
                      new school, with all of the educational records of 
                      the child provided to the school.''; and
            (2) in the 1st sentence of paragraph (4)(A)--
                    (A) by striking ``and reasonable'' and inserting 
                ``reasonable''; and
                    (B) by inserting ``, and reasonable travel for the 
                child to remain in the school in which the child is 
                enrolled at the time of placement'' before the period.

    (b) Educational Attendance Requirement.--Section 471(a) of the 
Social Security Act (42 U.S.C. 671(a)), as amended by sections 101(a) 
and 103 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (28);
            (2) by striking the period at the end of paragraph (29) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(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

[[Page 122 STAT. 3961]]

        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.''.
SEC. 205. HEALTH OVERSIGHT AND COORDINATION PLAN.

    Section 422(b)(15) of the Social Security Act (42 U.S.C. 622(b)(15)) 
is amended to read as follows:
            ``(15)(A) provides that the State will develop, in 
        coordination and collaboration with the State agency referred to 
        in paragraph (1) and the State agency responsible for 
        administering the State plan approved under title XIX, and in 
        consultation with pediatricians, other experts in health care, 
        and experts in and recipients of child welfare services, a plan 
        for the ongoing oversight and coordination of health care 
        services for any child in a foster care placement, which shall 
        ensure a coordinated strategy to identify and respond to the 
        health care needs of children in foster care placements, 
        including mental health and dental health needs, and shall 
        include an outline of--
                    ``(i) a schedule for initial and follow-up health 
                screenings that meet reasonable standards of medical 
                practice;
                    ``(ii) how health needs identified through 
                screenings will be monitored and treated;
                    ``(iii) how medical information for children in care 
                will be updated and appropriately shared, which may 
                include the development and implementation of an 
                electronic health record;
                    ``(iv) steps to ensure continuity of health care 
                services, which may include the establishment of a 
                medical home for every child in care;
                    ``(v) the oversight of prescription medicines; and
                    ``(vi) how the State actively consults with and 
                involves physicians or other appropriate medical or non-
                medical professionals in assessing the health and well-
                being of children in foster care and in determining 
                appropriate medical treatment for the children; and
            ``(B) subparagraph (A) shall not be construed to reduce or 
        limit the responsibility of the State agency responsible for 
        administering the State plan approved under title XIX to 
        administer and provide care and services for children with

[[Page 122 STAT. 3962]]

        respect to whom services are provided under the State plan 
        developed pursuant to this subpart;''.
SEC. 206. SIBLING PLACEMENT.

    Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as 
amended by sections 101(a), 103, and 204(b) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (29);
            (2) by striking the period at the end of paragraph (30) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(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.''.

            TITLE III--TRIBAL FOSTER CARE AND ADOPTION ACCESS

SEC. 301. EQUITABLE ACCESS FOR FOSTER CARE AND ADOPTION SERVICES 
                        FOR INDIAN CHILDREN IN TRIBAL AREAS.

    (a) Authority for Direct Payment of Federal Title IV-E Funds for 
Programs Operated by Indian Tribal Organizations.--
            (1) In general.--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:
``SEC. 479B. <<NOTE: 42 USC 679c.>> PROGRAMS OPERATED BY INDIAN 
                          TRIBAL ORGANIZATIONS.

    ``(a) Definitions of Indian Tribe; Tribal Organizations.--In this 
section, the terms `Indian tribe' and `tribal organization' have the 
meanings given those terms in section 4 of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450b).
    ``(b) Authority.--Except <<NOTE: Applicability.>> as otherwise 
provided in this section, this part shall apply in the same manner as 
this part applies to a State to an Indian tribe, tribal organization, or 
tribal consortium that elects to operate a program under this part and 
has a plan approved by the Secretary under section 471 in accordance 
with this section.

    ``(c) Plan Requirements.--
            ``(1) In general.--An Indian tribe, tribal organization, or 
        tribal consortium that elects to operate a program under this 
        part shall include with its plan submitted under section 471 the 
        following:
                    ``(A) Financial management.--Evidence demonstrating 
                that the tribe, organization, or consortium has

[[Page 122 STAT. 3963]]

                not had any uncorrected significant or material audit 
                exceptions under Federal grants or contracts that 
                directly relate to the administration of social services 
                for the 3-year period prior to the date on which the 
                plan is submitted.
                    ``(B) Service areas and populations.--For purposes 
                of complying with section 471(a)(3), a description of 
                the service area or areas and populations to be served 
                under the plan and an assurance that the plan shall be 
                in effect in all service area or areas and for all 
                populations served by the tribe, organization, or 
                consortium.
                    ``(C) Eligibility.--
                          ``(i) In general.--Subject to clause (ii) of 
                      this subparagraph, an assurance that the plan will 
                      provide--
                                    ``(I) foster care maintenance 
                                payments under section 472 only on 
                                behalf of children who satisfy the 
                                eligibility requirements of section 
                                472(a);
                                    ``(II) adoption assistance payments 
                                under section 473 pursuant to adoption 
                                assistance agreements only on behalf of 
                                children who satisfy the eligibility 
                                requirements for such payments under 
                                that section; and
                                    ``(III) at the option of the tribe, 
                                organization, or consortium, kinship 
                                guardianship assistance payments in 
                                accordance with section 473(d) only on 
                                behalf of children who meet the 
                                requirements of section 473(d)(3).
                          ``(ii) 
                      Satisfaction <<NOTE: Applicability.>> of foster 
                      care eligibility requirements.--For purposes of 
                      determining whether a child whose placement and 
                      care are the responsibility of an Indian tribe, 
                      tribal organization, or tribal consortium with a 
                      plan approved under section 471 in accordance with 
                      this section satisfies the requirements of section 
                      472(a), the following shall apply:
                                    ``(I) Use of affidavits, etc.--Only 
                                with respect to the first 12 months for 
                                which such plan is in effect, the 
                                requirement in paragraph (1) of section 
                                472(a) shall not be interpreted so as to 
                                prohibit the use of affidavits or nunc 
                                pro tunc orders as verification 
                                documents in support of the reasonable 
                                efforts and contrary to the welfare of 
                                the child judicial determinations 
                                required under that paragraph.
                                    ``(II) AFDC eligibility 
                                requirement.--The State plan approved 
                                under section 402 (as in effect on July 
                                16, 1996) of the State in which the 
                                child resides at the time of removal 
                                from the home shall apply to the 
                                determination of whether the child 
                                satisfies section 472(a)(3).
                    ``(D) Option to claim in-kind expenditures from 
                third-party sources for non-federal share of 
                administrative and training costs during initial 
                implementation period.--Only for fiscal year quarters 
                beginning after September 30, 2009, and before October 
                1, 2014, a list of the in-kind expenditures (which shall 
                be fairly evaluated, and may include plants, equipment, 
                administration, or services) and the third-party sources 
                of such expenditures

[[Page 122 STAT. 3964]]

                that the tribe, organization, or consortium may claim as 
                part of the non-Federal share of administrative or 
                training expenditures attributable to such quarters for 
                purposes of receiving payments under section 474(a)(3). 
                The Secretary shall permit a tribe, organization, or 
                consortium to claim in-kind expenditures from third 
                party sources for such purposes during such quarters 
                subject to the following:
                          ``(i) No effect on authority for tribes, 
                      organizations, or consortia to claim expenditures 
                      or indirect costs to the same extent as states.--
                      Nothing in this subparagraph shall be construed as 
                      preventing a tribe, organization, or consortium 
                      from claiming any expenditures or indirect costs 
                      for purposes of receiving payments under section 
                      474(a) that a State with a plan approved under 
                      section 471(a) could claim for such purposes.
                          ``(ii) Fiscal year 2010 or 2011.--
                                    ``(I) Expenditures other than for 
                                training.--With respect to amounts 
                                expended during a fiscal year quarter 
                                beginning after September 30, 2009, and 
                                before October 1, 2011, for which the 
                                tribe, organization, or consortium is 
                                eligible for payments under subparagraph 
                                (C), (D), or (E) of section 474(a)(3), 
                                not more than 25 percent of such amounts 
                                may consist of in-kind expenditures from 
                                third-party sources specified in the 
                                list required under this subparagraph to 
                                be submitted with the plan.
                                    ``(II) Training expenditures.--With 
                                respect to amounts expended during a 
                                fiscal year quarter beginning after 
                                September 30, 2009, and before October 
                                1, 2011, for which the tribe, 
                                organization, or consortium is eligible 
                                for payments under subparagraph (A) or 
                                (B) of section 474(a)(3), not more than 
                                12 percent of such amounts may consist 
                                of in-kind expenditures from third-party 
                                sources that are specified in such list 
                                and described in subclause (III).
                                    ``(III) Sources described.--For 
                                purposes of subclause (II), the sources 
                                described in this subclause are the 
                                following:
                                            ``(aa) A State or local 
                                        government.
                                            ``(bb) An Indian tribe, 
                                        tribal organization, or tribal 
                                        consortium other than the tribe, 
                                        organization, or consortium 
                                        submitting the plan.
                                            ``(cc) A public institution 
                                        of higher education.
                                            ``(dd) A Tribal College or 
                                        University (as defined in 
                                        section 316 of the Higher 
                                        Education Act of 1965 (20 U.S.C. 
                                        1059c)).
                                            ``(ee) A private charitable 
                                        organization.
                          ``(iii) Fiscal year 2012, 2013, or 2014.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II) of this 
                                clause and clause (v) of this 
                                subparagraph, with respect to amounts 
                                expended

[[Page 122 STAT. 3965]]

                                during any fiscal year quarter beginning 
                                after September 30, 2011, and before 
                                October 1, 2014, for which the tribe, 
                                organization, or consortium is eligible 
                                for payments under any subparagraph of 
                                section 474(a)(3) of this Act, the only 
                                in-kind expenditures from third-party 
                                sources that may be claimed by the 
                                tribe, organization, or consortium for 
                                purposes of determining the non-Federal 
                                share of such expenditures (without 
                                regard to whether the expenditures are 
                                specified on the list required under 
                                this subparagraph to be submitted with 
                                the plan) are in-kind expenditures that 
                                are specified in regulations promulgated 
                                by the Secretary under section 301(e)(2) 
                                of the Fostering Connections to Success 
                                and Increasing Adoptions Act of 2008 and 
                                are from an applicable third-party 
                                source specified in such regulations, 
                                and do not exceed the applicable 
                                percentage for claiming such in-kind 
                                expenditures specified in the 
                                regulations.
                                    ``(II) Transition period for early 
                                approved tribes, organizations, or 
                                consortia.--Subject to clause (v), if 
                                the tribe, organization, or consortium 
                                is an early approved tribe, 
                                organization, or consortium (as defined 
                                in subclause (III) of this clause), the 
                                Secretary shall not require the tribe, 
                                organization, or consortium to comply 
                                with such regulations before October 
                                1, <<NOTE: Applicability.>> 2013. Until 
                                the earlier of the date such tribe, 
                                organization, or consortium comes into 
                                compliance with such regulations or 
                                October 1, 2013, the limitations on the 
                                claiming of in-kind expenditures from 
                                third-party sources under clause (ii) 
                                shall continue to apply to such tribe, 
                                organization, or consortium (without 
                                regard to fiscal limitation) for 
                                purposes of determining the non-Federal 
                                share of amounts expended by the tribe, 
                                organization, or consortium during any 
                                fiscal year quarter that begins after 
                                September 30, 2011, and before such date 
                                of compliance or October 1, 2013, 
                                whichever is earlier.
                                    ``(III) Definition of early approved 
                                tribe, organization, or consortium.--For 
                                purposes of subclause (II) of this 
                                clause, the term `early approved tribe, 
                                organization, or consortium' means an 
                                Indian tribe, tribal organization, or 
                                tribal consortium that had a plan 
                                approved under section 471 in accordance 
                                with this section for any quarter of 
                                fiscal year 2010 or 2011.
                          ``(iv) Fiscal year 2015 and thereafter.--
                      Subject to clause (v) of this subparagraph, with 
                      respect to amounts expended during any fiscal year 
                      quarter beginning after September 30, 2014, for 
                      which the tribe, organization, or consortium is 
                      eligible for payments under any subparagraph of 
                      section 474(a)(3) of this Act, in-kind 
                      expenditures from third-party sources may be 
                      claimed for purposes of determining the non-
                      Federal share of expenditures under any

[[Page 122 STAT. 3966]]

                      subparagraph of such section 474(a)(3) only in 
                      accordance with the regulations promulgated by the 
                      Secretary under section 301(e)(2) of the Fostering 
                      Connections to Success and Increasing Adoptions 
                      Act of 2008.
                          ``(v) Contingency rule.--If, at the time 
                      expenditures are made for a fiscal year quarter 
                      beginning after September 30, 2011, and before 
                      October 1, 2014, for which a tribe, organization, 
                      or consortium may receive payments for under 
                      section 474(a)(3) of this Act, no regulations 
                      required to be promulgated under section 301(e)(2) 
                      of the Fostering Connections to Success and 
                      Increasing Adoptions Act of 2008 are in effect, 
                      and no legislation has been enacted specifying 
                      otherwise--
                                    ``(I) in the case of any quarter of 
                                fiscal year 2012, 2013, or 2014, the 
                                limitations on claiming in-kind 
                                expenditures from third-party sources 
                                under clause (ii) of this subparagraph 
                                shall apply (without regard to fiscal 
                                limitation) for purposes of determining 
                                the non-Federal share of such 
                                expenditures; and
                                    ``(II) in the case of any quarter of 
                                fiscal year 2015 or any fiscal year 
                                thereafter, no tribe, organization, or 
                                consortium may claim in-kind 
                                expenditures from third-party sources 
                                for purposes of determining the non-
                                Federal share of such expenditures if a 
                                State with a plan approved under section 
                                471(a) of this Act could not claim in-
                                kind expenditures from third-party 
                                sources for such purposes.
            ``(2) Clarification of tribal authority to establish 
        standards for tribal foster family homes and tribal child care 
        institutions.--For purposes of complying with section 
        471(a)(10), an Indian tribe, tribal organization, or tribal 
        consortium shall establish and maintain a tribal authority or 
        authorities which shall be responsible for establishing and 
        maintaining tribal standards for tribal foster family homes and 
        tribal child care institutions.
            ``(3) Consortium.--The participating Indian tribes or tribal 
        organizations of a tribal consortium may develop and submit a 
        single plan under section 471 that meets the requirements of 
        this section.

    ``(d) Determination of Federal Medical Assistance Percentage for 
Foster Care Maintenance and Adoption Assistance Payments.--
            ``(1) Per capita income.--For purposes of determining the 
        Federal medical assistance percentage applicable to an Indian 
        tribe, a tribal organization, or a tribal consortium under 
        paragraphs (1), (2), and (5) of section 474(a), the calculation 
        of the per capita income of the Indian tribe, tribal 
        organization, or tribal consortium shall be based upon the 
        service population of the Indian tribe, tribal organization, or 
        tribal consortium, except that in no case shall an Indian tribe, 
        a tribal organization, or a tribal consortium receive less than 
        the Federal medical assistance percentage for any State in which 
        the tribe, organization, or consortium is located.

[[Page 122 STAT. 3967]]

            ``(2) Consideration of other information.--Before making a 
        calculation under paragraph (1), the Secretary shall consider 
        any information submitted by an Indian tribe, a tribal 
        organization, or a tribal consortium that the Indian tribe, 
        tribal organization, or tribal consortium considers relevant to 
        making the calculation of the per capita income of the Indian 
        tribe, tribal organization, or tribal consortium.

    ``(e) Nonapplication to Cooperative Agreements and Contracts.--Any 
cooperative agreement or contract entered into between an Indian tribe, 
a tribal organization, or a tribal consortium and a State for the 
administration or payment of funds under this part that is in effect as 
of the date of enactment of this section shall remain in full force and 
effect, subject to the right of either party to the agreement or 
contract to revoke or modify the agreement or contract pursuant to the 
terms of the agreement or contract. Nothing in this section shall be 
construed as affecting the authority for an Indian tribe, a tribal 
organization, or a tribal consortium and a State to enter into a 
cooperative agreement or contract for the administration or payment of 
funds under this part.
    ``(f) John H. Chafee Foster Care Independence Program.--Except as 
provided in section 477(j), subsection (b) of this section shall not 
apply with respect to the John H. Chafee Foster Care Independence 
Program established under section 477 (or with respect to payments made 
under section 474(a)(4) or grants made under section 474(e)).
    ``(g) Rule of Construction.--Nothing in this section shall be 
construed as affecting the application of section 472(h) to a child on 
whose behalf payments are paid under section 472, or the application of 
section 473(b) to a child on whose behalf payments are made under 
section 473 pursuant to an adoption assistance agreement or a kinship 
guardianship assistance agreement, by an Indian tribe, tribal 
organization, or tribal consortium that elects to operate a foster care 
and adoption assistance program in accordance with this section.''.
            (2) Conforming amendments.--Section 472(a)(2)(B) of such Act 
        (42 U.S.C. 672(a)(2)(B)) is amended--
                    (A) in clause (i), by striking ``or'' at the end;
                    (B) in clause (ii), by striking ``and'' at the end 
                and inserting ``or''; and
                    (C) by adding at the end the following:
                          ``(iii) an Indian tribe or a tribal 
                      organization (as defined in section 479B(a)) or a 
                      tribal consortium that has a plan approved under 
                      section 471 in accordance with section 479B; 
                      and''.

    (b) Authority to Receive Portion of State Allotment as Part of an 
Agreement to Operate the John H. Chafee Foster Care Independence 
Program.--Section 477 of such Act (42 U.S.C. 677) is amended by adding 
at the end the following:
    ``(j) Authority for an Indian Tribe, Tribal Organization, or Tribal 
Consortium to Receive an Allotment.--
            ``(1) In general.--An Indian tribe, tribal organization, or 
        tribal consortium with a plan approved under section 479B, or 
        which is receiving funding to provide foster care under this 
        part pursuant to a cooperative agreement or contract with a 
        State, may apply for an allotment out of any funds authorized

[[Page 122 STAT. 3968]]

        by paragraph (1) or (2) (or both) of subsection (h) of this 
        section.
            ``(2) Application.--A tribe, organization, or consortium 
        desiring an allotment under paragraph (1) of this subsection 
        shall submit an application to the Secretary to directly receive 
        such allotment that includes a plan which--
                    ``(A) satisfies such requirements of paragraphs (2) 
                and (3) of subsection (b) as the Secretary determines 
                are appropriate;
                    ``(B) contains a description of the tribe's, 
                organization's, or consortium's consultation process 
                regarding the programs to be carried out under the plan 
                with each State for which a portion of an allotment 
                under subsection (c) would be redirected to the tribe, 
                organization, or consortium; and
                    ``(C) contains an explanation of the results of such 
                consultation, particularly with respect to--
                          ``(i) determining the eligibility for benefits 
                      and services of Indian children to be served under 
                      the programs to be carried out under the plan; and
                          ``(ii) the process for consulting with the 
                      State in order to ensure the continuity of 
                      benefits and services for such children who will 
                      transition from receiving benefits and services 
                      under programs carried out under a State plan 
                      under subsection (b)(2) to receiving benefits and 
                      services under programs carried out under a plan 
                      under this subsection.
            ``(3) Payments.--The Secretary shall pay an Indian tribe, 
        tribal organization, or tribal consortium with an application 
        and plan approved under this subsection from the allotment 
        determined for the tribe, organization, or consortium under 
        paragraph (4) of this subsection in the same manner as is 
        provided in section 474(a)(4) (and, where requested, and if 
        funds are appropriated, section 474(e)) with respect to a State, 
        or in such other manner as is determined appropriate by the 
        Secretary, except that in no case shall an Indian tribe, a 
        tribal organization, or a tribal consortium receive a lesser 
        proportion of such funds than a State is authorized to receive 
        under those sections.
            ``(4) Allotment.--From the amounts allotted to a State under 
        subsection (c) of this section for a fiscal year, the Secretary 
        shall allot to each Indian tribe, tribal organization, or tribal 
        consortium with an application and plan approved under this 
        subsection for that fiscal year an amount equal to the tribal 
        foster care ratio determined under paragraph (5) of this 
        subsection for the tribe, organization, or consortium multiplied 
        by the allotment amount of the State within which the tribe, 
        organization, or consortium is located. The allotment determined 
        under this paragraph is deemed to be a part of the allotment 
        determined under section 477(c) for the State in which the 
        Indian tribe, tribal organization, or tribal consortium is 
        located.
            ``(5) Tribal foster care ratio.--For purposes of paragraph 
        (4), the tribal foster care ratio means, with respect to an 
        Indian tribe, tribal organization, or tribal consortium, the 
        ratio of--

[[Page 122 STAT. 3969]]

                    ``(A) the number of children in foster care under 
                the responsibility of the Indian tribe, tribal 
                organization, or tribal consortium (either directly or 
                under supervision of the State), in the most recent 
                fiscal year for which the information is available; to
                    ``(B) the sum of--
                          ``(i) the total number of children in foster 
                      care under the responsibility of the State within 
                      which the Indian tribe, tribal organization, or 
                      tribal consortium is located; and
                          ``(ii) the total number of children in foster 
                      care under the responsibility of all Indian 
                      tribes, tribal organizations, or tribal consortia 
                      in the State (either directly or under supervision 
                      of the State) that have a plan approved under this 
                      subsection.''.

    (c) State and Tribal Cooperation.--
            (1) State plan requirement to negotiate in good faith.--
                    (A) In general.--Section 471(a) of the Social 
                Security Act (42 U.S.C. 671(a)), as amended by sections 
                101(a), 103, 204(b), and 206 of this Act, is amended--
                          (i) by striking ``and'' at the end of 
                      paragraph (30);
                          (ii) by striking the period at the end of 
                      paragraph (31) and inserting ``; and''; and
                          (iii) by adding at the end the following:
            ``(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.''.
                    (B) Chafee program conforming amendment.--Section 
                477(b)(3)(G) of such Act (42 U.S.C. 677(b)(3)(G)) is 
                amended--
                          (i) by striking ``and that'' and inserting 
                      ``that''; and
                          (ii) by striking the period at the end and 
                      inserting ``; and that the State will negotiate in 
                      good faith with any Indian tribe, tribal 
                      organization, or tribal consortium in the State 
                      that does not receive an allotment under 
                      subsection (j)(4) for a fiscal year and that 
                      requests to develop an agreement with the State to 
                      administer, supervise, or oversee the programs to 
                      be carried out under the plan with respect to the 
                      Indian children who are eligible for such programs 
                      and who are under the authority of the tribe, 
                      organization, or consortium and to receive from 
                      the State an appropriate portion of the State 
                      allotment under subsection (c) for the cost of 
                      such administration, supervision, or oversight.''.

[[Page 122 STAT. 3970]]

            (2) Application of tribal federal matching rate to 
        cooperative agreements or contracts between state or tribes.--
        Paragraphs (1) and (2) of section 474(a) of such Act (42 U.S.C. 
        674(a)) are each amended by inserting ``(or, with respect to 
        such payments made during such quarter under a cooperative 
        agreement or contract entered into by the State and an Indian 
        tribe, tribal organization, or tribal consortium for the 
        administration or payment of funds under this part, an amount 
        equal to the Federal medical assistance percentage that would 
        apply under section 479B(d) (in this paragraph referred to as 
        the `tribal FMAP') if such Indian tribe, tribal organization, or 
        tribal consortium made such payments under a program operated 
        under that section, unless the tribal FMAP is less than the 
        Federal medical assistance percentage that applies to the 
        State)'' before the semicolon.

    (d) Rules <<NOTE: 42 USC 671 note.>> of Construction.--Nothing in 
the amendments made by this section shall be construed as--
            (1) authorization to terminate funding on behalf of any 
        Indian child receiving foster care maintenance payments or 
        adoption assistance payments on the date of enactment of this 
        Act and for which the State receives Federal matching payments 
        under paragraph (1) or (2) of section 474(a) of the Social 
        Security Act (42 U.S.C. 674(a)), regardless of whether a 
        cooperative agreement or contract between the State and an 
        Indian tribe, tribal organization, or tribal consortium is in 
        effect on such date or an Indian tribe, tribal organization, or 
        tribal consortium elects subsequent to such date to operate a 
        program under section 479B of such Act (as added by subsection 
        (a) of this section); or
            (2) affecting the responsibility of a State--
                    (A) as part of the plan approved under section 471 
                of the Social Security Act (42 U.S.C. 671), to provide 
                foster care maintenance payments, adoption assistance 
                payments, and if the State elects, kinship guardianship 
                assistance payments, for Indian children who are 
                eligible for such payments and who are not otherwise 
                being served by an Indian tribe, tribal organization, or 
                tribal consortium pursuant to a program under such 
                section 479B of such Act or a cooperative agreement or 
                contract entered into between an Indian tribe, a tribal 
                organization, or a tribal consortium and a State for the 
                administration or payment of funds under part E of title 
                IV of such Act; or
                    (B) as part of the plan approved under section 477 
                of such Act (42 U.S.C. 677) to administer, supervise, or 
                oversee programs carried out under that plan on behalf 
                of Indian children who are eligible for such programs if 
                such children are not otherwise being served by an 
                Indian tribe, tribal organization, or tribal consortium 
                pursuant to an approved plan under section 477(j) of 
                such Act or a cooperative agreement or contract entered 
                into under section 477(b)(3)(G) of such Act.

    (e) Regulations.-- <<NOTE: 42 USC 671 note.>> 
            (1) In general.--Except <<NOTE: Deadline.>> as provided in 
        paragraph (2) of this subsection, not later than 1 year after 
        the date of enactment of this section, the Secretary of Health 
        and Human Services, in consultation with Indian tribes, tribal 
        organizations, tribal consortia, and affected States, shall 
        promulgate interim

[[Page 122 STAT. 3971]]

        final regulations to carry out this section and the amendments 
        made by this section. Such 
        regulations <<NOTE: Procedures.>> shall include procedures to 
        ensure that a transfer of responsibility for the placement and 
        care of a child under a State plan approved under section 471 of 
        the Social Security Act to a tribal plan approved under section 
        471 of such Act in accordance with section 479B of such Act (as 
        added by subsection (a)(1) of this section) or to an Indian 
        tribe, a tribal organization, or a tribal consortium that has 
        entered into a cooperative agreement or contract with a State 
        for the administration or payment of funds under part E of title 
        IV of such Act does not affect the eligibility of, provision of 
        services for, or the making of payments on behalf of, such 
        children under part E of title IV of such Act, or the 
        eligibility of such children for medical assistance under title 
        XIX of such Act.
            (2) In-kind expenditures from third-party sources for 
        purposes of determining non-federal share of administrative and 
        training expenditures.--
                    (A) In general.--Subject <<NOTE: Deadline.>> to 
                subparagraph (B) of this paragraph, not later than 
                September 30, 2011, the Secretary of Health and Human 
                Services, in consultation with Indian tribes, tribal 
                organizations, and tribal consortia, shall promulgate 
                interim final regulations specifying the types of in-
                kind expenditures, including plants, equipment, 
                administration, and services, and the third-party 
                sources for such in-kind expenditures which may be 
                claimed by tribes, organizations, and consortia with 
                plans approved under section 471 of the Social Security 
                Act in accordance with section 479B of such Act, up to 
                such percentages as the Secretary, in such consultation 
                shall specify in such regulations, for purposes of 
                determining the non-Federal share of administrative and 
                training expenditures for which the tribes, 
                organizations, and consortia may receive payments for 
                under any subparagraph of section 474(a)(3) of such Act.
                    (B) Effective date.--In no event shall the 
                regulations required to be promulgated under 
                subparagraph (A) take effect prior to October 1, 2011.
                    (C) Sense of the congress.--It is the sense of the 
                Congress that if the Secretary of Health and Human 
                Services fails to publish in the Federal Register the 
                regulations required under subparagraph (A) of this 
                paragraph, the Congress should enact legislation 
                specifying the types of in-kind expenditures and the 
                third-party sources for such in-kind expenditures which 
                may be claimed by tribes, organizations, and consortia 
                with plans approved under section 471 of the Social 
                Security Act in accordance with section 479B of such 
                Act, up to specific percentages, for purposes of 
                determining the non-Federal share of administrative and 
                training expenditures for which the tribes, 
                organizations, and consortia may receive payments for 
                under any subparagraph of section 474(a)(3) of such Act.

    (f) Effective Date.--The <<NOTE: 42 USC 671 note.>> amendments made 
by subsections (a), (b), and (c) shall take effect on October 1, 2009, 
without regard to whether the regulations required under subsection 
(e)(1) have been promulgated by such date.

[[Page 122 STAT. 3972]]

SEC. 302. TECHNICAL ASSISTANCE AND IMPLEMENTATION.

    Section 476 of the Social Security Act (42 U.S.C. 676) is amended by 
adding at the end the following:
    ``(c) Technical Assistance and Implementation Services for Tribal 
Programs.--
            ``(1) Authority.--The Secretary shall provide technical 
        assistance and implementation services that are dedicated to 
        improving services and permanency outcomes for Indian children 
        and their families through the provision of assistance described 
        in paragraph (2).
            ``(2) Assistance provided.--
                    ``(A) In general.--The technical assistance and 
                implementation services shall be to--
                          ``(i) provide information, advice, educational 
                      materials, and technical assistance to Indian 
                      tribes and tribal organizations with respect to 
                      the types of services, administrative functions, 
                      data collection, program management, and reporting 
                      that are required under State plans under part B 
                      and this part;
                          ``(ii) assist and provide technical assistance 
                      to--
                                    ``(I) Indian tribes, tribal 
                                organizations, and tribal consortia 
                                seeking to operate a program under part 
                                B or under this part through direct 
                                application to the Secretary under 
                                section 479B; and
                                    ``(II) Indian tribes, tribal 
                                organizations, tribal consortia, and 
                                States seeking to develop cooperative 
                                agreements to provide for payments under 
                                this part or satisfy the requirements of 
                                section 422(b)(9), 471(a)(32), or 
                                477(b)(3)(G); and
                          ``(iii) subject to subparagraph (B), make one-
                      time grants, to tribes, tribal organizations, or 
                      tribal consortia that are seeking to develop, and 
                      intend, not later than 24 months after receiving 
                      such a grant to submit to the Secretary a plan 
                      under section 471 to implement a program under 
                      this part as authorized by section 479B, that 
                      shall--
                                    ``(I) not exceed $300,000; and
                                    ``(II) be used for the cost of 
                                developing a plan under section 471 to 
                                carry out a program under section 479B, 
                                including costs related to development 
                                of necessary data collection systems, a 
                                cost allocation plan, agency and tribal 
                                court procedures necessary to meet the 
                                case review system requirements under 
                                section 475(5), or any other costs 
                                attributable to meeting any other 
                                requirement necessary for approval of 
                                such a plan under this part.
                    ``(B) Grant condition.--
                          ``(i) In general.--As a condition of being 
                      paid a grant under subparagraph (A)(iii), a tribe, 
                      tribal organization, or tribal consortium shall 
                      agree to repay the total amount of the grant 
                      awarded if the tribe, tribal organization, or 
                      tribal consortium fails to submit to the Secretary 
                      a plan under section 471 to carry out a program 
                      under section 479B by the end of the 24-month 
                      period described in that subparagraph.

[[Page 122 STAT. 3973]]

                          ``(ii) Exception.--The <<NOTE: Waiver 
                      authority.>> Secretary shall waive the requirement 
                      to repay a grant imposed by clause (i) if the 
                      Secretary determines that a tribe's, tribal 
                      organization's, or tribal consortium's failure to 
                      submit a plan within such period was the result of 
                      circumstances beyond the control of the tribe, 
                      tribal organization, or tribal consortium.
                    ``(C) Implementation authority.--The Secretary may 
                provide the technical assistance and implementation 
                services described in subparagraph (A) either directly 
                or through a grant or contract with public or private 
                organizations knowledgeable and experienced in the field 
                of Indian tribal affairs and child welfare.
            ``(3) Appropriation.--There is appropriated to the 
        Secretary, out of any money in the Treasury of the United States 
        not otherwise appropriated, $3,000,000 for fiscal year 2009 and 
        each fiscal year thereafter to carry out this subsection.''.

            TITLE IV--IMPROVEMENT OF INCENTIVES FOR ADOPTION

SEC. 401. ADOPTION INCENTIVES PROGRAM.

    (a) 5-Year Extension.--Section 473A of the Social Security Act (42 
U.S.C. 673b) is amended--
            (1) in subsection (b)(4), by striking ``in the case of 
        fiscal years 2001 through 2007,'';
            (2) in subsection (b)(5), by striking ``1998 through 2007'' 
        and inserting ``2008 through 2012'';
            (3) in subsection (c)(2), by striking ``each of fiscal years 
        2002 through 2007'' and inserting ``a fiscal year''; and
            (4) in each of subsections (h)(1)(D), and (h)(2), by 
        striking ``2008'' and inserting ``2013''.

    (b) Updating of Fiscal Year Used in Determining Base Numbers of 
Adoptions.--Section 473A(g) of such Act (42 U.S.C. 673b(g)) is amended--
            (1) in paragraph (3), by striking ``means'' and all that 
        follows and inserting ``means, with respect to any fiscal year, 
        the number of foster child adoptions in the State in fiscal year 
        2007.'';
            (2) in paragraph (4)--
                    (A) by inserting ``that are not older child 
                adoptions'' before ``for a State''; and
                    (B) by striking ``means'' and all that follows and 
                inserting ``means, with respect to any fiscal year, the 
                number of special needs adoptions that are not older 
                child adoptions in the State in fiscal year 2007.''; and
            (3) in paragraph (5), by striking ``means'' and all that 
        follows and inserting ``means, with respect to any fiscal year, 
        the number of older child adoptions in the State in fiscal year 
        2007.''.

    (c) Increase in Incentive Payments for Special Needs Adoptions and 
Older Child Adoptions.--Section 473A(d)(1) of such Act (42 U.S.C. 
673b(d)(1)) is amended--
            (1) in subparagraph (B), by striking ``$2,000'' and 
        inserting ``$4,000''; and

[[Page 122 STAT. 3974]]

            (2) in subparagraph (C), by striking ``$4,000'' and 
        inserting ``$8,000''.

    (d) 24-Month Availability of Payments to States.--Section 473A(e) of 
such Act (42 U.S.C. 673b(e)) is amended--
            (1) in the heading, by striking ``2-Year'' and inserting 
        ``24-Month''; and
            (2) by striking ``through the end of the succeeding fiscal 
        year'' and inserting ``for the 24-month period beginning with 
        the month in which the payments are made''.

    (e) Additional Incentive Payment for Exceeding the Highest Ever 
Foster Child Adoption Rate.--
            (1) In general.--Section 473A(d) of such Act (42 U.S.C. 
        673b(d)) is amended--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``paragraph (2)'' and 
                inserting ``paragraphs (2) and (3)'';
                    (B) in paragraph (2), by striking ``this section'' 
                each place it appears and inserting ``paragraph (1)''; 
                and
                    (C) by adding at the end the following:
            ``(3) Increased incentive payment for exceeding the highest 
        ever foster child adoption rate.--
                    ``(A) In general.--If--
                          ``(i) for fiscal year 2009 or any fiscal year 
                      thereafter the total amount of adoption incentive 
                      payments payable under paragraph (1) of this 
                      subsection are less than the amount appropriated 
                      under subsection (h) for the fiscal year; and
                          ``(ii) a State's foster child adoption rate 
                      for that fiscal year exceeds the highest ever 
                      foster child adoption rate determined for the 
                      State,
                then the adoption incentive payment otherwise determined 
                under paragraph (1) of this subsection for the State 
                shall be increased, subject to subparagraph (C) of this 
                paragraph, by the amount determined for the State under 
                subparagraph (B) of this paragraph.
                    ``(B) Amount of increase.--For purposes of 
                subparagraph (A), the amount determined under this 
                subparagraph with respect to a State and a fiscal year 
                is the amount equal to the product of--
                          ``(i) $1,000; and
                          ``(ii) the excess of--
                                    ``(I) the number of foster child 
                                adoptions in the State in the fiscal 
                                year; over
                                    ``(II) the product (rounded to the 
                                nearest whole number) of--
                                            ``(aa) the highest ever 
                                        foster child adoption rate 
                                        determined for the State; and
                                            ``(bb) the number of 
                                        children in foster care under 
                                        the supervision of the State on 
                                        the last day of the preceding 
                                        fiscal year.
                    ``(C) Pro rata adjustment if insufficient funds 
                available.--For any fiscal year, if the total amount of 
                increases in adoption incentive payments otherwise 
                payable under this paragraph for a fiscal year exceeds 
                the amount available for such increases for the fiscal 
                year, the amount of the increase payable to each State 
                under this paragraph for the fiscal year shall be--

[[Page 122 STAT. 3975]]

                          ``(i) the amount of the increase that would 
                      otherwise be payable to the State under this 
                      paragraph for the fiscal year; multiplied by
                          ``(ii) the percentage represented by the 
                      amount so available for the fiscal year, divided 
                      by the total amount of increases otherwise payable 
                      under this paragraph for the fiscal year.''.
            (2) Definitions.--Section 473A(g) of such Act (42 U.S.C. 
        673b(g)) is amended by adding at the end the following:
            ``(7) Highest ever foster child adoption rate.--The term 
        `highest ever foster child adoption rate' means, with respect to 
        any fiscal year, the highest foster child adoption rate 
        determined for any fiscal year in the period that begins with 
        fiscal year 2002 and ends with the preceding fiscal year.
            ``(8) Foster child adoption rate.--The term `foster child 
        adoption rate' means, with respect to a State and a fiscal year, 
        the percentage determined by dividing--
                    ``(A) the number of foster child adoptions finalized 
                in the State during the fiscal year; by
                    ``(B) the number of children in foster care under 
                the supervision of the State on the last day of the 
                preceding fiscal year.''.
            (3) Conforming amendments.--
                    (A) State eligibility.--Section 473A(b)(2) of such 
                Act (42 U.S.C. 673b(b)(2)) is amended--
                          (i) in subparagraph (A), by striking ``or'' at 
                      the end;
                          (ii) in subparagraph (B), by adding ``or'' at 
                      the end; and
                          (iii) by adding at the end the following:
            ``(C) the State's foster child adoption rate for the fiscal 
        year exceeds the highest ever foster child adoption rate 
        determined for the State;''.
                    (B) Data.--Section 473A(c)(2) of such Act (42 U.S.C. 
                673b(c)(2)), as amended by subsection (a)(3) of this 
                section, is amended by inserting ``and the foster child 
                adoption rate for the State for the fiscal year,'' after 
                ``during a fiscal year,''.
SEC. 402. PROMOTION OF ADOPTION OF CHILDREN WITH SPECIAL NEEDS.

    Section 473 of the Social Security Act (42 U.S.C. 673), as amended 
by section 101(b) of this Act, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)--
                          (i) in subparagraph (A)--
                                    (I) by redesignating items (aa) and 
                                (bb) of clause (i)(I) as subitems (AA) 
                                and (BB), respectively;
                                    (II) in subitem (BB) of clause 
                                (i)(I) (as so redesignated), by striking 
                                ``item (aa) of this subclause'' and 
                                inserting ``subitem (AA) of this item'';
                                    (III) by redesignating subclauses 
                                (I) through (III) of clause (i) as items 
                                (aa) through (cc), respectively;
                                    (IV) by redesignating clauses (i) 
                                and (ii) as subclauses (I) and (II), 
                                respectively;

[[Page 122 STAT. 3976]]

                                    (V) by realigning the margins of the 
                                items, subclauses, and clauses 
                                redesignated by subclauses (I) through 
                                (IV) accordingly;
                                    (VI) by striking ``if the child--'' 
                                and inserting ``if--
            ``(i) in the case of a child who is not an applicable child 
        for the fiscal year (as defined in subsection (e)), the child--
        '';
                                    (VII) in subclause (II) of clause 
                                (i) (as so redesignated)--
                                            (aa) by striking ``(c)'' and 
                                        inserting ``(c)(1)''; and
                                            (bb) by striking the period 
                                        at the end and inserting ``; 
                                        or''; and
                                    (VIII) by adding at the end the 
                                following:
            ``(ii) in the case of a child who is an applicable child for 
        the fiscal year (as so defined), the child--
                    ``(I)(aa) at the time of initiation of adoption 
                proceedings was in the care of a public or licensed 
                private child placement agency or Indian tribal 
                organization pursuant to--
                          ``(AA) an involuntary removal of the child 
                      from the home in accordance with a judicial 
                      determination to the effect that continuation in 
                      the home would be contrary to the welfare of the 
                      child; or
                          ``(BB) a voluntary placement agreement or 
                      voluntary relinquishment;
                    ``(bb) meets all medical or disability requirements 
                of title XVI with respect to eligibility for 
                supplemental security income benefits; or
                    ``(cc) was residing in a foster family home or child 
                care institution with the child's minor parent, and the 
                child's minor parent was in such foster family home or 
                child care institution pursuant to--
                          ``(AA) an involuntary removal of the child 
                      from the home in accordance with a judicial 
                      determination to the effect that continuation in 
                      the home would be contrary to the welfare of the 
                      child; or
                          ``(BB) a voluntary placement agreement or 
                      voluntary relinquishment; and
                    ``(II) has been determined by the State, pursuant to 
                subsection (c)(2), to be a child with special needs.''; 
                and
                          (ii) in subparagraph (C)--
                                    (I) by redesignating subclauses (I) 
                                and (II) of clause (iii) as items (aa) 
                                and (bb), respectively;
                                    (II) by redesignating subclauses (I) 
                                and (II) of clause (iv) as items (aa) 
                                and (bb), respectively;
                                    (III) by redesignating clauses (i) 
                                through (iv) as subclauses (I) through 
                                (IV), respectively;
                                    (IV) by realigning the margins of 
                                the subclauses and clauses redesignated 
                                by subclauses (I) through (III) 
                                accordingly;
                                    (V) by striking ``if the child--'' 
                                and inserting ``if--
            ``(i) in the case of a child who is not an applicable child 
        for the fiscal year (as defined in subsection (e)), the child--
        '';

[[Page 122 STAT. 3977]]

                                    (VI) in clause (i)(I) (as so 
                                redesignated), by striking ``(A)(ii)'' 
                                and inserting ``(A)(i)(II)'';
                                    (VII) in clause (i)(IV) (as so 
                                redesignated)--
                                            (aa) in the matter preceding 
                                        item (aa), by striking ``(A)'' 
                                        and inserting ``(A)(i)''; and
                                            (bb) by striking the period 
                                        at the end and inserting ``; 
                                        or''; and
                                    (VIII) by adding at the end the 
                                following:
            ``(ii) in the case of a child who is an applicable child for 
        the fiscal year (as so defined), the child meets the 
        requirements of subparagraph (A)(ii)(II), is determined eligible 
        for adoption assistance payments under this part with respect to 
        a prior adoption (or who would have been determined eligible for 
        such payments had the Adoption and Safe Families Act of 1997 
        been in effect at the time that such determination would have 
        been made), and 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
                    (B) by adding at the end the following:

    ``(7)(A) Notwithstanding any other provision of this subsection, no 
payment may be made to parents with respect to any applicable child for 
a fiscal year that--
            ``(i) would be considered a child with special needs under 
        subsection (c)(2);
            ``(ii) is not a citizen or resident of the United States; 
        and
            ``(iii) was adopted outside of the United States or was 
        brought into the United States for the purpose of being adopted.

    ``(B) Subparagraph (A) shall not be construed as prohibiting 
payments under this part for an applicable child described in 
subparagraph (A) that is placed in foster care subsequent to the 
failure, as determined by the State, of the initial adoption of the 
child by the parents described in subparagraph (A).
    ``(8) A State shall spend an amount equal to the amount of savings 
(if any) in State expenditures under this part resulting from the 
application of paragraph (2)(A)(ii) to all applicable children for a 
fiscal year to provide to children or families any service (including 
post-adoption services) that may be provided under this part or part 
B.'';
            (2) in subsection (c)--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and realigning 
                the margins accordingly;
                    (B) by striking ``this section, a child shall not be 
                considered a child with special needs unless'' and 
                inserting ``this section--
            ``(1) in the case of a child who is not an applicable child 
        for a fiscal year, the child shall not be considered a child 
        with special needs unless''; and
                    (C) in paragraph (1)(B), as so redesignated, by 
                striking the period at the end and inserting ``; or''; 
                and
                    (D) by adding at the end the following:
            ``(2) in the case of a child who is an applicable child for 
        a fiscal year, the child shall not be considered a child with 
        special needs unless--

[[Page 122 STAT. 3978]]

                    ``(A) the State has determined, pursuant to a 
                criterion or criteria established by the State, that the 
                child cannot or should not be returned to the home of 
                his parents;
                    ``(B)(i) the State has determined that there exists 
                with respect to the child a specific factor or condition 
                (such as ethnic background, age, or membership in a 
                minority or sibling group, or the presence of factors 
                such as medical conditions or physical, mental, or 
                emotional handicaps) because of which it is reasonable 
                to conclude that the child cannot be placed with 
                adoptive parents without providing adoption assistance 
                under this section and medical assistance under title 
                XIX; or
                    ``(ii) the child meets all medical or disability 
                requirements of title XVI with respect to eligibility 
                for supplemental security income benefits; and
                    ``(C) the State has determined that, except where it 
                would be against the best interests of the child because 
                of such factors as the existence of significant 
                emotional ties with prospective adoptive parents while 
                in the care of the parents as a foster child, a 
                reasonable, but unsuccessful, effort has been made to 
                place the child with appropriate adoptive parents 
                without providing adoption assistance under this section 
                or medical assistance under title XIX.''; and
            (3) by adding at the end the following:

    ``(e) Applicable Child Defined.--
            ``(1) On the basis of age.--
                    ``(A) In general.--Subject to paragraphs (2) and 
                (3), in this section, the term `applicable child' means 
                a child for whom an adoption assistance agreement is 
                entered into under this section during any fiscal year 
                described in subparagraph (B) if the child attained the 
                applicable age for that fiscal year before the end of 
                that fiscal year.
                    ``(B) Applicable age.--For purposes of subparagraph 
                (A), the applicable age for a fiscal year is as follows:


----------------------------------------------------------------------------------------------------------------
               ``In the case of fiscal year:                                The applicable age is:
----------------------------------------------------------------------------------------------------------------
2010.......................................................  16
2011.......................................................  14
2012.......................................................  12
2013.......................................................  10
2014.......................................................  8
2015.......................................................  6
2016.......................................................  4
2017.......................................................  2
2018 or thereafter.........................................  any age.
----------------------------------------------------------------------------------------------------------------


            ``(2) Exception <<NOTE: Effective date.>> for duration in 
        care.--Notwithstanding paragraph (1) of this subsection, 
        beginning with fiscal year 2010, such term shall include a child 
        of any age on the date on which an adoption assistance agreement 
        is entered into on behalf of the child under this section if the 
        child--

[[Page 122 STAT. 3979]]

                    ``(A) has been in foster care under the 
                responsibility of the State for at least 60 consecutive 
                months; and
                    ``(B) meets the requirements of subsection 
                (a)(2)(A)(ii).
            ``(3) Exception for member of a <<NOTE: Effective 
        date.>> sibling group.--Notwithstanding paragraphs (1) and (2) 
        of this subsection, beginning with fiscal year 2010, such term 
        shall include a child of any age on the date on which an 
        adoption assistance agreement is entered into on behalf of the 
        child under this section without regard to whether the child is 
        described in paragraph (2)(A) of this subsection if the child--
                    ``(A) is a sibling of a child who is an applicable 
                child for the fiscal year under paragraph (1) or (2) of 
                this subsection;
                    ``(B) is to be placed in the same adoption placement 
                as an applicable child for the fiscal year who is their 
                sibling; and
                    ``(C) meets the requirements of subsection 
                (a)(2)(A)(ii).''.
SEC. 403. INFORMATION ON ADOPTION TAX CREDIT.

    Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as 
amended by sections 101(a), 103, 204(b), 206, and 301(c)(1)(A) of this 
Act, is amended--
            (1) by striking ``and'' at the end of paragraph (31);
            (2) by striking the period at the end of paragraph (32) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(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.''.

    TITLE V--CLARIFICATION OF UNIFORM DEFINITION OF CHILD AND OTHER 
                               PROVISIONS

SEC. 501. CLARIFICATION OF UNIFORM DEFINITION OF CHILD.

    (a) Child Must Be Younger Than Claimant.--Section 152(c)(3)(A) of 
the Internal Revenue <<NOTE: 26 USC 152.>> Code of 1986 is amended by 
inserting ``is younger than the taxpayer claiming such individual as a 
qualifying child and'' after ``such individual''.

    (b) Child Must Be Unmarried.--Section 152(c)(1) of such Code is 
amended by striking ``and'' at the end of subparagraph (C), by striking 
the period at the end of subparagraph (D) and inserting ``, and'', and 
by adding at the end the following new subparagraph:
                    ``(E) who has not filed a joint return (other than 
                only for a claim of refund) with the individual's spouse 
                under section 6013 for the taxable year beginning in the 
                calendar year in which the taxable year of the taxpayer 
                begins.''.

    (c) Restrict Qualifying Child Tax Benefits to Child's Parent.--
            (1) Child tax credit.--Section 24(a) of such Code is amended 
        by inserting ``for which the taxpayer is allowed a deduction 
        under section 151'' after ``of the taxpayer''.

[[Page 122 STAT. 3980]]

            (2) Persons other than parents claiming qualifying child.--
                    (A) In general.--Section 152(c)(4) <<NOTE: 26 USC 
                152.>> of such Code is amended by adding at the end the 
                following new subparagraph:
                    ``(C) No parent claiming qualifying child.--If the 
                parents of an individual may claim such individual as a 
                qualifying child but no parent so claims the individual, 
                such individual may be claimed as the qualifying child 
                of another taxpayer but only if the adjusted gross 
                income of such taxpayer is higher than the highest 
                adjusted gross income of any parent of the 
                individual.''.
                    (B) Conforming amendments.--
                          (i) Section 152(c)(4)(A) of such Code is 
                      amended by striking ``Except'' through ``2 or more 
                      taxpayers'' and inserting ``Except as provided in 
                      subparagraphs (B) and (C), if (but for this 
                      paragraph) an individual may be claimed as a 
                      qualifying child by 2 or more taxpayers''.
                          (ii) The heading for section 152(c)(4) of such 
                      Code is amended by striking ``claiming'' and 
                      inserting ``who can claim the same''.

    (d) Effective Date.--The <<NOTE: 26 USC 24 note.>> amendments made 
by this section shall apply to taxable years beginning after December 
31, 2008.
SEC. 502. INVESTMENT OF OPERATING CASH.

    Section 323 of title 31, United States Code, is amended to read as 
follows:
``Sec. 323. Investment of operating cash

    ``(a) To manage United States cash, the Secretary of the Treasury 
may invest any part of the operating cash of the Treasury for not more 
than 90 days. The Secretary may invest the operating cash of the 
Treasury in--
            ``(1) obligations of depositories maintaining Treasury tax 
        and loan accounts secured by pledged collateral acceptable to 
        the Secretary;
            ``(2) obligations of the United States Government; and
            ``(3) repurchase agreements with parties acceptable to the 
        Secretary.

    ``(b) Subsection (a) of this section does not require the Secretary 
to invest a cash balance held in a particular account.
    ``(c) The Secretary shall consider the prevailing market in 
prescribing rates of interest for investments under subsection (a)(1) of 
this section.
    ``(d)(1) <<NOTE: Deadline. Reports.>> The Secretary of the Treasury 
shall submit each fiscal year to the appropriate committees a report 
detailing the investment of operating cash under subsection (a) for the 
preceding fiscal year. The report shall describe the Secretary's 
consideration of risks associated with investments and the actions taken 
to manage such risks.

    ``(2) For purposes of paragraph (1), the term `appropriate 
committees' means the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate.''.

[[Page 122 STAT. 3981]]

SEC. 503. <<NOTE: 42 USC 671 note.>> NO FEDERAL FUNDING TO 
                        UNLAWFULLY PRESENT INDIVIDUALS.

    Nothing in this Act shall be construed to alter prohibitions on 
Federal payments to individuals who are unlawfully present in the United 
States.

                        TITLE VI--EFFECTIVE DATE

SEC. 601. <<NOTE: 42 USC 671 note.>> EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, each 
amendment made by this Act to part B or E of title IV of the Social 
Security Act shall take effect on the date of the enactment of this Act, 
and shall apply to payments under the part amended for quarters 
beginning on or after the effective date of the amendment.
    (b) Delay Permitted if State Legislation Required.--In the case of a 
State plan approved under part B or E of title IV of the Social Security 
Act which the Secretary of Health and Human Services determines requires 
State legislation (other than legislation appropriating funds) in order 
for the plan to meet the additional requirements imposed by this Act, 
the State plan shall not be regarded as failing to comply with the 
requirements of such part solely on the basis of the failure of the plan 
to meet such additional requirements before the 1st day of the 1st 
calendar quarter beginning after the close of the 1st regular session of 
the State legislature that ends after the 1-year period beginning with 
the date of the enactment of this Act. For purposes of the preceding 
sentence, in the case of a State that has a 2-year legislative session, 
each year of the session is deemed to be a separate regular session of 
the State legislature.

    Approved October 7, 2008.

LEGISLATIVE HISTORY--H.R. 6893:
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CONGRESSIONAL RECORD, Vol. 154 (2008):
            Sept. 17, considered and passed House.
            Sept. 22, considered and passed Senate.

                                  <all>