Fostering Connections to Success Act
Legislative Activity
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Received in the Senate and Read twice and referred to the Committee on Finance.
June 25, 2008
View full timeline
Introduced in House
June 19, 2008
Referred to the House Committee on Ways and Means.
June 19, 2008
Mr. McDermott moved to suspend the rules and pass the bill, as amended.
June 24, 2008 • 1:11 PM
Considered under suspension of the rules. (consideration: CR H5921-5932)
June 24, 2008 • 1:11 PM
DEBATE - The House proceeded with forty minutes of debate on H.R. 6307.
June 24, 2008 • 1:11 PM
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H5921-5927)
June 24, 2008 • 1:39 PM
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H5921-5927)
June 24, 2008 • 1:39 PM
Motion to reconsider laid on the table Agreed to without objection.
June 24, 2008 • 1:39 PM
Received in the Senate and Read twice and referred to the Committee on Finance.
June 25, 2008
Floor Debate
15 membersWhat members said about H.R. 6307 on the floor




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Floor Debate
15 membersWhat members said about H.R. 6307 on the floor
Madam Speaker, I yield myself such time as I may consume. Madam Speaker, I am proud to rise in support of H.R. 6893, the Fostering Connections to Success and Increasing Adoptions Act, legislation I…
Madam Speaker, I move to suspend the rules and pass the bill (H.R. 6893) to amend parts B and E of title IV of the Social Security Act to connect and support relative caregivers, improve outcomes for…
Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 6307) to amend parts B and E of title IV of the Social Security Act to assist children in foster care in developing or maintaining…
Mr. Speaker, I yield myself such time as I may consume. I rise in support of H.R. 6307, the Fostering Connections to Success Act. I also want to thank my chairman for his leadership and his dedicated…
Mr. Speaker, I would like to applaud Chairman McDermott and Ranking Member Weller for their leadership in bringing forward this major piece of legislation that will change so many lives across our…
Show 8 more
Madam Speaker, we celebrate National Grandparents Day on the first Sunday after Labor Day every September. In honor of the 2008 National Grandparents Day, I wish to recognize the contribution of the…
Mr. Speaker, I rise to support important progress toward reforming our troubled child welfare system. Today, we can come one step closer to fulfilling our promise to abused and neglected children…
Madam Speaker, the House of Representatives recently passed H.R. 6307, the Fostering Connections to Success Act, sponsored by Representatives Jim McDermott and Jerry Weller. This bill is a strong…
Madam Speaker, I rise in strong support of H.R. 6307, the Fostering Connections to Success Act of 2008. First, let me thank the gentleman from Washington (Mr. McDermott) and the gentleman from…
Madam Speaker, today is a good day for the more than 4\1/2\ million grandparents in this Nation who are raising over 6 million children. Today is a good day for the 80,000 grandparents in Illinois…
Madam Speaker, I rise today to express my support for adoption. Specifically, I rise to express my support for two bills we are considering on the floor today--the Fostering Connections to Success…
I want to start off by thanking Chairman McDermott for doing a fabulous job on this bill on behalf of foster kids generally. Mr. Speaker, I rise in support of H.R. 6307, the Fostering Connections to…
Mr. Speaker, I rise today to support H.R. 6307, the Fostering Connections to Success Act. This vital piece of bipartisan legislation was designed to make much needed improvements to the child welfare…
Show 9 more
Madam Speaker, I want to thank my colleague from Illinois. I think what we need to be doing here today is continuing to alert the American people to what is not happening in terms of dealing with the…
Madam Speaker, I rise today to urge all of my colleagues to support H.R. 6893, the Fostering Connections to Success Act and Increasing Adoptions Act. I applaud the Gentleman from Washington (Mr.…
Mr. Speaker, I rise today in support of H.R. 6307 a bill that makes a number of critical changes to the child welfare system to better connect children in foster care with the services, healthcare…
I thank my friend Mr. McDermott for yielding. Mr. Speaker, I urge all of my colleagues to support this bill. It does great work to help our foster children nationwide. It's long overdue, many of…
I rise today to commend both the chairman and the ranking member. I am in an all-day markup on the Homeland appropriations bill, but I left that markup because I think this is very important to our…
Madam Speaker, I point out that this subcommittee stands as proxy parents for half a million children in this country who spend time in foster care each year. So I would like to thank Grandpa…
Mr. Speaker, I rise today in support of the Fostering Connections to Success Act. The provisions contained in this bipartisan legislation will benefit thousands of children and will help to promote…
Madam Speaker, I rise today in support of H.R. 6893, the Fostering Connections to Success and Increasing Adoptions Act. The provisions of this bill will increase the tools available to states to help…
Madam Speaker, I rise today in strong support of H.R. 6893, The Fostering Connections to Success and Increasing Adoptions Act, introduced by my distinguished colleague, Representative McDermott. This…
Bill Text
3 versions available
[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 6307 Referred in Senate (RFS)]
2d Session
H. R. 6307
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 25, 2008
Received; read twice and referred to the Committee on Finance
_______________________________________________________________________
AN ACT
To amend parts B and E of title IV of the Social Security Act to assist
children in foster care in developing or maintaining connections to
family, community, support, health care, and school, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fostering Connections to Success
Act''.
SEC. 2. 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)(6), 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;
``(ii) provide the prospective relative
guardian with a copy of the agreement; and
``(iii) certify that any child on whose
behalf kinship guardianship assistance payments
are made under the agreement shall be provided
medical assistance under title XIX in
accordance with section 1902(a)(10)(A)(i)(I).
``(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;
``(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 kinship
guardian.
``(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) Kinship guardianship assistance payment.--
``(A) In general.--The kinship guardianship
assistance payment shall be equal to the amount of the
foster care maintenance payment for which the child
would have been eligible if the child had remained in a
foster family home, or, at State option, the amount of
the adoption assistance payment for which the child
would have been eligible if the child had been adopted,
and may be readjusted periodically based on changes in
the circumstances of the relative guardians involved
and the needs of the child. Notwithstanding the
preceding sentence, the amount of the kinship
guardianship assistance payment may not exceed the
foster care maintenance payment which would have been
paid during the period involved if the child had been
in a foster family home.
``(B) Limitation.--A State may not make a kinship
guardianship assistance payment to a relative guardian
for any child who has attained 18 years of age, or such
greater age as the State may elect under section
475(8)(B)(iii).
``(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;
``(II) under the care of the State
agency for the 12-month period ending
on the date of the agency
determination;
``(III) eligible for foster care
maintenance payments under section 472
while in the home of the prospective
relative guardian; and
``(IV) residing for at least 6
months with 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 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 for the child and 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 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--
(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 be
finally approved for placement of a child regardless of
whether kinship guardianship assistance payments are to
be made 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 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:
``(6) 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) Definitions.--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 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.''.
(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.''.
SEC. 3. FAMILY CONNECTION GRANTS.
Part B of title IV of the Social Security Act (42 U.S.C. 620-629i)
is amended by adding at the end the following:
``Subpart 3--Family Connection Grants
``SEC. 441. 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 of entering, foster
care reconnect with family members through the implementation of--
``(1) kinship navigator programs designed to assist kinship
caregivers in navigating their way through programs and
services, and to help the caregivers learn about and obtain
assistance to meet the needs of the children they are raising
and their own needs;
``(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; or
``(3) family group decision-making meetings for children in
the child welfare system that engage and empower families to
make decisions and develop plans that nurture children and
protect them from enduring further abuse and neglect.
``(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 20 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.--
``(1) 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.
``(2) 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) Limitations on Authorization of Appropriations.--To carry out
this section, there are authorized to be appropriated to the Secretary
not more than $50,000,000 for each of fiscal years 2009 through
2013.''.
SEC. 4. NOTIFICATION TO RELATIVES OF FOSTER CARE PLACEMENTS.
Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as
amended by section 2(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) provides that, not later than 30 days after the date
the State places a child in foster care, the State agency shall
attempt to locate and notify any noncustodial parents,
siblings, grandparents, aunts, or uncles of the child who are
adults, of the removal of the child from the custody of the
child's parent or parents and explain the options the relative
has to participate in the care and placement of the child,
subject to exceptions due to family or domestic violence which
shall be provided for under State law.''.
SEC. 5. 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--
``(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; or
``(IV) employed for at least 80 hours per
month.''.
(b) Conforming 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 the period.
(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
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 amendments made by this section shall take
effect on October 1, 2010.
SEC. 6. SHORT-TERM TRAINING FOR CHILD WELFARE AGENCIES, PROSPECTIVE
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 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,'';
(5) by inserting ``guardians,'' before ``staff members,'';
and
(6) by striking ``and institutions'' and inserting
``institutions, attorneys, and advocates''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on October 1, 2008.
(c) Phase-in.--With 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 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. 7. EQUITABLE ACCESS FOR FOSTER CARE AND ADOPTION SERVICES FOR
INDIAN CHILDREN IN TRIBAL AREAS.
(a) Authority for Indian Tribes To Receive Direct Federal Title Iv-
E Funds.--Section 472(a)(2)(B) of the Social Security Act (42 U.S.C.
672(a)(2)(B)) is amended--
(1) in clause (i), by striking ``or'' at the end;
(2) in clause (ii), by striking ``and'' at the end and
inserting ``or''; and
(3) 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, if the Indian tribe,
tribal organization, or tribal consortium--
``(I) operates a program under
section 479B;
``(II) has a cooperative agreement
with a State under section 479B(d); or
``(III) submits to the Secretary a
description of the arrangements
(jointly developed in consultation with
the State) made by the Indian tribe or
tribal consortium for the payment of
funds and the provision of the child
welfare services and protections
required by this title; and''.
(b) Programs Operated by Indian Tribal Organizations.--Part E of
title IV of such Act (42 U.S.C. 670 et seq.) is amended by adding at
the end the following:
``SEC. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL ORGANIZATIONS.
``(a) Definitions of Indian Tribe; Tribal Organizations.--In this
section:
``(1) In general.--Except as provided in paragraph (2), 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).
``(2) Special rule for alaskan tribes.--The term `Indian
tribe' means, with respect to the State of Alaska, only the
Metlakatla Indian Community of the Annette Islands Reserve and
the following Alaska Native regional nonprofit corporations:
``(A) Artice Slope Native Association.
``(B) Kawerak, Inc.
``(C) Maniilaq Association.
``(D) Association of Village Council Presidents.
``(E) Tanana Chiefs Conference.
``(F) Cook Inlet Tribal Council.
``(G) Bristol Bay Native Association.
``(H) Aleutian and Pribilof Island Association.
``(I) Chugachmuit.
``(J) Tlingit Haida Central Council.
``(K) Kodiak Area Native Association.
``(L) Copper River Native Association.
``(b) Application.--Except as provided in subsections (c) and (e),
this part shall apply to an Indian tribe, tribal organization, or a
tribal consortium that elects to operate a program under this part in
the same manner as this part applies to a State.
``(c) Modification of Plan and Other Requirements.--
``(1) In general.--In the case of an Indian tribe, a tribal
organization, or a tribal consortium submitting a plan for
approval under section 471, the plan--
``(A) shall--
``(i) in lieu of the requirements of
section 471(a)(3), identify the service area or
areas and population to be served by the Indian
tribe, tribal organization, or tribal
consortium; and
``(ii) in lieu of the requirements of
section 471(a)(10), provide for the
establishment and application of standards for
foster family homes and child care institutions
pursuant to tribal standards and in a manner
that ensures the safety of, and accountability
for, children placed in foster care; and
``(B) may, at the option of the Indian tribe,
tribal organization, or tribal consortium, in lieu of
the requirements of section 471(a)(20), provide
procedures for conducting background checks in
accordance with the requirements of section 408 of the
Indian Child Protection and Family Violence Prevention
Act (25 U.S.C. 3207) and regulations issued thereunder,
and for conducting checks of child abuse and neglect
registries maintained by the Federal Government, by a
State, and by an Indian tribe, tribal organization, or
tribal consortium in a manner that ensures the safety
of, and accountability for, children placed in foster
care or who are being placed for adoption.
``(2) Determination of federal share; sources of non-
federal share.--
``(A) Per capita income.--
``(i) In general.--For purposes of
determining the Federal medical assistance
percentage applicable to an Indian tribe, a
tribal organization, or a tribal consortium
under paragraphs (1) and (2) of section 474(a)
(and for purposes of payments made under an
arrangement described in section
472(a)(2)(B)(iii)(III)), 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 as defined in the plan of the Indian
tribe, tribal organization, or tribal
consortium, in accordance with paragraph
(1)(A), 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 is located.
``(ii) Consideration of other
information.--Before making a calculation under
clause (i), 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.
``(B) Administrative, training, and data collection
expenditures.--The Secretary shall, by regulation,
determine the proportions to be paid to Indian tribes,
tribal organizations, and tribal consortiums pursuant
to section 474(a)(3) for purposes of this section (and
for purposes of payments made under an arrangement
described in section 472(a)(2)(B)(iii)(III)), except
that in no case shall an Indian tribe, a tribal
organization, or a tribal consortium receive a lesser
proportion than the corresponding amount specified for
a State in that section.
``(C) Sources of non-federal share.--An Indian
tribe, tribal organization, or tribal consortium may
use Federal, State, tribal, or private funds, which may
be in kind, fairly evaluated, including plant,
equipment, administration, and services, to match
payments for which the tribe, organization, or
consortium is eligible under section 474.
``(3) Modification of other requirements.--On the request
of an Indian tribe, tribal organization, or a tribal
consortium, the Secretary may modify any requirement under this
part if, after consulting with the Indian tribe, tribal
organization, or tribal consortium, the Secretary determines
that modification of the requirement would advance the best
interests and the safety of children served by the Indian
tribe, tribal organization, or tribal consortium.
``(4) 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) Cooperative Agreements.--
``(1) In general.--An Indian tribe, a tribal organization,
or a tribal consortium and a State may enter into a cooperative
agreement for the administration or payment of funds under this
part.
``(2) Application and enforcement of incorporated
provisions of this section.--If an Indian tribe, a tribal
organization, or a tribal consortium and a State enter into a
cooperative agreement that incorporates any of the provisions
of this section, those provisions shall be valid and
enforceable.
``(3) Prior agreements in effect.--Any cooperative
agreement described in paragraph (1) 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 to revoke or modify the agreement pursuant to the
terms of the agreement.
``(e) 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)).''.
(c) Application of Federal Matching Rate That Would Apply to Indian
Tribes, Tribal Organizations, or Tribal Consortia to Expenditures Under
State Agreements or an Agreement With the Secretary.--
(1) Foster care maintenance and adoption assistance
payments.--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 an
agreement entered into by the State and an Indian tribe, tribal
organization, or tribal consortium, or under an arrangement
described in section 472(a)(2)(B)(iii)(III), an amount equal to
the Federal medical assistance percentage that would apply
under subsection (c)(2)(A) of section 479B (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.
(2) Administrative expenditures.--Section 474(a)(3) of such
Act (42 U.S.C. 674(a)(3)) is amended--
(A) in the matter preceding subparagraph (A), by
striking ``section 472(i)'' and inserting
``subparagraph (E) and section 472(i)'';
(B) in subparagraph (D), by striking ``and'' at the
end;
(C) by redesignating subparagraph (E) as
subparagraph (F); and
(D) by inserting after subparagraph (D) the
following:
``(E) in the case of a State that has entered into
an agreement with an Indian tribe, tribal organization,
or tribal consortium (or an Indian tribe, tribal
organization, or tribal consortium with an arrangement
described in section 472(a)(2)(B)(iii)(III)), an amount
equal to the proportions that would be paid to such
tribe, organization, or consortium pursuant to
regulations issued under section 479B(c)(2)(B) if the
tribe, organization, or consortium operated a program
under that section; and''.
(d) Hold Harmless for Indian Families Receiving Foster Care
Maintenance Payments or Adoption Assistance.--Nothing in the amendments
made by this Act shall be construed as authorization to terminate
funding to any Indian or Indian family currently receiving foster care
maintenance payments or adoption assistance on behalf of a child and
for which the State receives Federal matching payments under paragraph
(1) or (2) of section 474(a) of the Social Security Act, regardless of
whether a cooperative agreement between the State and an Indian tribe,
tribal organization, or tribal consortium is in effect pursuant to
subsection (d) of section 479B(d) of such Act, or an Indian tribe,
tribal organization, or tribal consortium elects to operate a foster
care and adoption assistance program directly under such section 479B.
(e) Nonapplication of Certain Eligibility Requirements for Indian
Children.--Section 472(a) of such Act (42 U.S.C. 672(a)) is amended by
adding at the end the following:
``(5) Nonapplication of certain requirements for indian
children.--In the case of an Indian tribe, tribal organization,
or tribal consortium that assumes responsibility for
administering the program under this part through a cooperative
agreement with the State under section 479B(d), or that elects
to operate a foster care and adoption assistance program
directly under section 479B, the following rules shall apply:
``(A) Use of affidavits, etc.--The requirement in
paragraph (1) 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 such paragraph.
``(B) Residency requirement imposed under afdc
state plan.--Notwithstanding paragraph (3)(A), any
residency requirement imposed under the State plan
referred to in such paragraph shall not apply with
respect to a child for whom an Indian tribe, tribal
organization, or tribal consortium assumes
responsibility.''.
(f) Authority To Receive Portion of State Allotment as Part of an
Agreement To Operate the John H. Chafee Foster Care Independence
Program.--
(1) In general.--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,
which is receiving funding to provide foster care under this
part pursuant to a cooperative agreement with a State, or that
provides child welfare services and protections in accordance
with an arrangement submitted to the Secretary under section
472(a)(2)(B)(iii)(III), may apply for an allotment out of any
funds authorized by paragraph (1) or (2) (or both) of
subsection (h) of this section.
``(2) Application.--An Indian tribe, tribal organization,
or tribal consortium desiring an allotment under paragraph (1)
shall submit an application to the Secretary to directly
receive such allotment that includes a plan that satisfies such
requirements of paragraphs (2) and (3) of subsection (b) as the
Secretary determines are appropriate.
``(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 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--
``(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 (either directly or under supervision
of the State).''.
(2) Authority to receive portion of state allotment as part
of a cooperative agreement entered into with respect to the
chafee program.--Section 477(b)(3)(G) of such Act (42 U.S.C.
677(b)(3)(G)) is amended--
(A) by striking ``and that'' and inserting
``that''; and
(B) by striking the period and inserting ``; and
that each Indian tribe, tribal organization, or tribal
consortium in the State that does not receive an
allotment under subsection (j)(4) for a fiscal year may
enter into a cooperative agreement or contract 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 Indian tribe 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.''.
(g) Rule of Construction.--Nothing in the amendments made by this
Act shall be construed as affecting the responsibility of a State--
(1) 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 and adoption assistance for Indian
children who are eligible for such payments or assistance and
who are not otherwise being served by an Indian tribe, tribal
organization, or tribal consortium pursuant to a foster care
and adoption assistance program operated under section 479B of
such Act; or
(2) 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) or a cooperative agreement or contract
entered into under section 477(b)(3)(G) of such Act.
(h) Regulations.--Not later than 1 year after the date of enactment
of this section, the Secretary, in consultation with Indian tribes,
tribal organizations, tribal consortia, and affected States, shall
promulgate regulations to carry out the amendments made by this
section.
(i) Effective Date.--The amendments made by this section shall take
effect on October 1, 2010.
SEC. 8. 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
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
respect to whom services are provided under the State plan
developed pursuant to this subpart;''.
SEC. 9. EDUCATIONAL STABILITY.
(a) In General.--Section 475 of the Social Security Act (42 U.S.C.
675), as amended by section 2(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 2(a) and
4 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
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 included in the case plan of the child.''.
SEC. 10. SIBLING PLACEMENT.
Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as
amended by sections 2(a), 4, and 9(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 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.''.
SEC. 11. 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
(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''.
SEC. 12. INFORMATION ON ADOPTION TAX CREDIT.
Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as
amended by sections 2(a), 4, 9(b), and 10 of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (30);
(2) by striking the period at the end of paragraph (31) and
inserting ``; and''; and
(3) by adding at the end the following:
``(32) 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.''.
SEC. 13. MODIFICATION OF FOSTER CARE MATCHING RATE FOR THE DISTRICT OF
COLUMBIA TO CONFORM WITH MEDICAID MATCHING RATE.
Section 474(a) of the Social Security Act (42 U.S.C. 674(a)) is
amended in each of paragraphs (1) and (2) by striking ``(as defined in
section 1905(b) of this Act)'' and inserting ``(which shall be as
defined in section 1905(b), in the case of a State other than the
District of Columbia, or 70 percent, in the case of the District of
Columbia)''.
SEC. 14. COLLECTION OF UNEMPLOYMENT COMPENSATION DEBTS RESULTING FROM
FRAUD.
(a) In General.--Section 6402 of the Internal Revenue Code
(relating to authority to make credits or refunds) is amended by
redesignating subsections (f) through (k) as subsections (g) through
(l), respectively, and by inserting after subsection (e) the following
new subsection:
``(f) Collection of Unemployment Compensation Debts Resulting From
Fraud.--
``(1) In general.--Upon receiving notice from any State
that a named person owes a covered unemployment compensation
debt to such State, the Secretary shall, under such conditions
as may be prescribed by the Secretary--
``(A) reduce the amount of any overpayment payable
to such person by the amount of such covered
unemployment compensation debt;
``(B) pay the amount by which such overpayment is
reduced under subparagraph (A) to such State and notify
such State of such person's name, taxpayer
identification number, address, and the amount
collected; and
``(C) notify the person making such overpayment
that the overpayment has been reduced by an amount
necessary to satisfy a covered unemployment
compensation debt.
If an offset is made pursuant to a joint return, the notice
under subparagraph (B) shall include the names, taxpayer
identification numbers, and addresses of each person filing
such return and the notice under subparagraph (C) shall include
information related to the rights of a spouse of a person
subject to such an offset.
``(2) Priorities for offset.--Any overpayment by a person
shall be reduced pursuant to this subsection--
``(A) after such overpayment is reduced pursuant
to--
``(i) subsection (a) with respect to any
liability for any internal revenue tax on the
part of the person who made the overpayment;
``(ii) subsection (c) with respect to past-
due support; and
``(iii) subsection (d) with respect to any
past-due, legally enforceable debt owed to a
Federal agency; and
``(B) before such overpayment is credited to the
future liability for any Federal internal revenue tax
of such person pursuant to subsection (b).
If the Secretary receives notice from a State or States of more
than one debt subject to paragraph (1) or subsection (e) that
is owed by a person to such State or States, any overpayment by
such person shall be applied against such debts in the order in
which such debts accrued.
``(3) Notice; consideration of evidence.--No State may take
action under this subsection until such State--
``(A) notifies the person owing the covered
unemployment compensation debt that the State proposes
to take action pursuant to this section;
``(B) provides such person at least 60 days to
present evidence that all or part of such liability is
not legally enforceable or due to fraud;
``(C) considers any evidence presented by such
person and determines that an amount of such debt is
legally enforceable and due to fraud; and
``(D) satisfies such other conditions as the
Secretary may prescribe to ensure that the
determination made under subparagraph (C) is valid and
that the State has made reasonable efforts to obtain
payment of such covered unemployment compensation debt.
``(4) Covered unemployment compensation debt.--For purposes
of this subsection, the term `covered unemployment compensation
debt' means--
``(A) a past-due debt for erroneous payment of
unemployment compensation due to fraud which has become
final under the law of a State certified by the
Secretary of Labor pursuant to section 3304 and which
remains uncollected;
``(B) contributions due to the unemployment fund of
a State for which the State has determined the person
to be liable due to fraud; and
``(C) any penalties and interest assessed on such
debt.
``(5) Regulations.--
``(A) In general.--The Secretary may issue
regulations prescribing the time and manner in which
States must submit notices of covered unemployment
compensation debt and the necessary information that
must be contained in or accompany such notices. The
regulations may specify the minimum amount of debt to
which the reduction procedure established by paragraph
(1) may be applied.
``(B) Fee payable to secretary.--The regulations
may require States to pay a fee to the Secretary, which
may be deducted from amounts collected, to reimburse
the Secretary for the cost of applying such procedure.
Any fee paid to the Secretary pursuant to the preceding
sentence shall be used to reimburse appropriations
which bore all or part of the cost of applying such
procedure.
``(C) Submission of notices through secretary of
labor.--The regulations may include a requirement that
States submit notices of covered unemployment
compensation debt to the Secretary via the Secretary of
Labor in accordance with procedures established by the
Secretary of Labor. Such procedures may require States
to pay a fee to the Secretary of Labor to reimburse the
Secretary of Labor for the costs of applying this
subsection. Any such fee shall be established in
consultation with the Secretary of the Treasury. Any
fee paid to the Secretary of Labor may be deducted from
amounts collected and shall be used to reimburse the
appropriation account which bore all or part of the
cost of applying this subsection.
``(6) Erroneous payment to state.--Any State receiving
notice from the Secretary that an erroneous payment has been
made to such State under paragraph (1) shall pay promptly to
the Secretary, in accordance with such regulations as the
Secretary may prescribe, an amount equal to the amount of such
erroneous payment (without regard to whether any other amounts
payable to such State under such paragraph have been paid to
such State).''.
(b) Disclosure of Certain Information to States Requesting Refund
Offsets for Legally Enforceable State Unemployment Compensation Debt
Resulting From Fraud.--
(1) General rule.--Paragraph (3) of section 6103(a) of such
Code is amended by inserting ``(10),'' after ``(6),''.
(2) Disclosure to department of labor and its agent.--
Paragraph (10) of section 6103(l) of such Code is amended--
(A) by striking ``(c), (d), or (e)'' each place it
appears in the heading and text and inserting ``(c),
(d), (e), or (f)'',
(B) in subparagraph (A) by inserting ``, to
officers and employees of the Department of Labor and
its agent for purposes of facilitating the exchange of
data in connection with a request made under subsection
(f)(5) of section 6402,'' after ``section 6402'', and
(C) in subparagraph (B) by inserting ``, and any
agents of the Department of Labor,'' after ``agency''
the first place it appears.
(3) Safeguards.--Paragraph (4) of section 6103(p) of such
Code is amended--
(A) in the matter preceding subparagraph (A), by
striking ``(l)(16),'' and inserting ``(l)(10), (16),'';
(B) in subparagraph (F)(i), by striking
``(l)(16),'' and inserting ``(l)(10), (16),''; and
(C) in the matter following subparagraph (F)(iii)--
(i) in each of the first two places it
appears, by striking ``(l)(16),'' and inserting
``(l)(10), (16),'';
(ii) by inserting ``(10),'' after
``paragraph (6)(A),''; and
(iii) in each of the last two places it
appears, by striking ``(l)(16)'' and inserting
``(l)(10) or (16)''.
(c) Expenditures From State Fund.--Section 3304(a)(4) of such Code
is amended--
(1) in subparagraph (E), by striking ``and'' after the
semicolon;
(2) in subparagraph (F), by inserting ``and'' after the
semicolon; and
(3) by adding at the end the following new subparagraph:
``(G) with respect to amounts of covered
unemployment compensation debt (as defined in section
6402(f)(4)) collected under section 6402(f)--
``(i) amounts may be deducted to pay any
fees authorized under such section; and
``(ii) the penalties and interest described
in section 6402(f)(4)(B) may be transferred to
the appropriate State fund into which the State
would have deposited such amounts had the
person owing the debt paid such amounts
directly to the State;''.
(d) Conforming Amendments.--
(1) Subsection (a) of section 6402 of such Code is amended
by striking ``(c), (d), and (e),'' and inserting ``(c), (d),
(e), and (f)''.
(2) Paragraph (2) of section 6402(d) of such Code is
amended by striking ``and before such overpayment is reduced
pursuant to subsection (e)'' and inserting ``and before such
overpayment is reduced pursuant to subsections (e) and (f)''.
(3) Paragraph (3) of section 6402(e) of such Code is
amended in the last sentence by inserting ``or subsection (f)''
after ``paragraph (1)''.
(4) Subsection (g) of section 6402 of such Code, as
redesignated by subsection (a), is amended by striking ``(c),
(d), or (e)'' and inserting ``(c), (d), (e), or (f)''.
(5) Subsection (i) of section 6402 of such Code, as
redesignated by subsection (a), is amended by striking
``subsection (c) or (e)'' and inserting ``subsection (c), (e),
or (f)''.
(e) Effective Date.--The amendments made by this section shall
apply to refunds payable under section 6402 of the Internal Revenue
Code of 1986 on or after the date of enactment of this Act.
SEC. 15. 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) 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.''.
SEC. 16. 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.
SEC. 17. 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.
Passed the House of Representatives June 24, 2008.
Attest:
LORRAINE C. MILLER,
Clerk.