[United States Statutes at Large, Volume 122, 110th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

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 3950]]
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 3951]]
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 3952]]
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 3953]]
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 3954]]
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 3955]]
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 3956]]
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 3957]]
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 3958]]
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 3959]]
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 3960]]
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 3961]]
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 3962]]
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 3963]]
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 3964]]
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 3965]]
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 3966]]
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 3967]]
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 3968]]
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 3969]]
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 3970]]
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 3971]]
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 3972]]
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 3973]]
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 3974]]
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 3975]]
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 3976]]
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 3977]]
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 3978]]
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 3979]]
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 3980]]
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 3981]]
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:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 154 (2008):
Sept. 17, considered and passed House.
Sept. 22, considered and passed Senate.