article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Adoption Equality Act of 1998''. SEC. 2. PROMOTION OF ADOPTION OF CHILDREN WITH SPECIAL NEEDS. (a) In General.--Section 473(a) of the Social Security Act (42 U.S.C. 673(a)) is amended by striking paragraph (2) and inserting the following: ``(2)(A) For purposes of paragraph (1)(B)(ii), a child meets the requirements of this paragraph if such child-- ``(i) prior to termination of parental rights and the initiation of adoption proceedings was in the care of a public or licensed private child care agency or Indian tribal organization either pursuant to a voluntary placement agreement (provided the child was in care for not more than 180 days) or as a result of a judicial determination to the effect that continuation in the home would be contrary to the safety and welfare of such child, or was residing in a foster family home or child care institution with the child's minor parent (either pursuant to such a voluntary placement agreement or as a result of such a judicial determination); and ``(ii) has been determined by the State pursuant to subsection (c) to be a child with special needs, which needs shall be considered by the State, together with the circumstances of the adopting parents, in determining the amount of any payments to be made to the adopting parents. ``(B) Notwithstanding any other provision of law, and except as provided in paragraph (7), a child who is not a citizen or resident of the United States and who meets the requirements of subparagraph (A) shall be treated as meeting the requirements of this paragraph for purposes of paragraph (1)(B)(ii). ``(C) A child who meets the requirements of subparagraph (A), who was 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 who is available for adoption because the prior adoption has been dissolved and the parental rights of the adoptive parents have been terminated or because the child's adoptive parents have died, shall be treated as meeting the requirements of this paragraph for purposes of paragraph (1)(B)(ii).''. (b) Exception.--Section 473(a) of the Social Security Act (42 U.S.C. 673(a)) is amended 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 child that-- ``(i) would be considered a child with special needs under subsection (c); ``(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 a 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 such child by the parents described in such subparagraph.''. (c) Requirement for Use of State Savings.--Section 473(a) of the Social Security Act (42 U.S.C. 673(a)), as amended by subsection (b), is amended by adding at the end the following: ``(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) on and after the effective date of the amendment to such paragraph made by section 2(a) of the Adoption Equality Act of 1998 to provide to children or families any service (including post-adoption services) that may be provided under this part or part B.''. (d) Effective Date.--The amendments made by this section shall take effect on October 1, 1998. SEC. 3. REDUCTIONS IN PAYMENTS FOR ADMINISTRATIVE COSTS. (a) In General.--Section 1903 of the Social Security Act (42 U.S.C. 1396b) is amended-- (1) in subsection (a)(7), by striking ``section 1919(g)(3)(B)'' and inserting ``subsection (x) and section 1919(g)(3)(C)''; and (2) by adding at the end the following: ``(x) Adjustments to Payments for Administrative Costs.-- ``(1) Reductions in payments for administrative costs based on determinations of amounts attributable to benefiting programs.-- ``(A) In general.--Subject to paragraph (2), effective for each of fiscal years 1999 through 2002, the Secretary shall reduce, for each such fiscal year, the amount paid under subsection (a)(7) to each State by an amount equal to the amount determined for the medicaid program under section 16(k)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(2)(B)). The Secretary shall, to the extent practicable, make the reductions required by this paragraph on a quarterly basis. ``(B) Application.--If the Secretary does not make the determinations required by section 16(k)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(2)(B)) by September 30, 1999-- ``(i) during the fiscal year in which the determinations are made, the Secretary shall reduce the amount paid under subsection (a)(7) to each State by an amount equal to the sum of the amounts determined for the medicaid program under section 16(k)(2)(B) of the Food Stamp Act of 1977 for fiscal year 1999 through the fiscal year during which the determinations are made; and ``(ii) for each subsequent fiscal year through fiscal year 2002, subparagraph (A) applies. ``(C) Application of appeal of determinations.--The provisions of section 16(k)(4) of the Food Stamp Act of 1977 (7 U.S.C. 20205(k)(4)) apply to reductions in payments under this subsection in the same manner as they apply to reductions under section 16(k) of that Act. ``(2) Bonus payment for program alignment.-- ``(A) In general.-- ``(i) Amount.--In addition to any other payment made under this title to a State for a fiscal year, the Secretary shall pay to each State that satisfies the requirements of clause (ii) a portion of the amount by which-- ``(I) any decrease in Federal outlays for amounts paid under subsection (a)(7) with respect to the State for the fiscal year as a result of the application of paragraph (1), as determined by the Congressional Budget Office, exceeds ``(II) any increase in Federal outlays with respect to the State for the fiscal year as a result of the application of section 473(a), as amended by section 2 of the Adoption Equality Act of 1998, as determined by the Congressional Budget Office. ``(ii) Requirements.--A State satisfies the requirements of this clause if the Secretary determines that-- ``(I) the State's income and resource eligibility rules under section 1931, taking into account the income standards and methodologies applied by the State, are not more restrictive than the income and resource eligibility rules applied by the State for the temporary assistance to needy families program funded under part A of title IV (other than for a welfare-to-work program funded under section 403(a)(5)); and ``(II) the State assures the Secretary that families applying for assistance under the temporary assistance to needy families program funded under part A of title IV (other than families applying solely for assistance under a welfare-to-work program funded under section 403(a)(5)) may apply for medical assistance under the State plan under this title without having to submit a separate application for such medical assistance. ``(B) Construction.--Nothing in subparagraph (A) shall be construed as-- ``(i) affecting the application of section 1931; ``(ii) affecting any application requirements established under this title or by regulation promulgated under the authority of this title, including the requirements established under section 1902(a)(8); or ``(iii) conditioning the right of an individual to apply for medical assistance under the State plan under this title upon an application for assistance under any State program funded under part A of title IV. ``(3) Allocation of administrative costs.-- ``(A) In general.--No funds or expenditures described in subparagraph (B) may be used to pay for costs-- ``(i) eligible for reimbursement under subsection (a)(7) (or costs that would have been eligible for reimbursement but for this subsection); and ``(ii) allocated for reimbursement to the medicaid program under a plan submitted by a State to the Secretary to allocate administrative costs for public assistance programs. ``(B) Funds and expenditures.--Subparagraph (A) applies to-- ``(i) funds made available to carry out part A of title IV or title XX; ``(ii) expenditures made as qualified State expenditures (as defined in section 409(a)(7)(B)); ``(iii) any other Federal funds (except funds provided under subsection (a)(7)); and ``(iv) any other State funds that are-- ``(I) expended as a condition of receiving Federal funds; or ``(II) used to match Federal funds under a Federal program other than the medicaid program.''. (b) Copies of Report on Review of Methodology Used To Make Certain Determinations.--Section 502(b)(2) of the Agricultural Research, Extension, and Education Reform Act of 1998 (Public Law 105-185; 112 Stat. 523) is amended by inserting ``, the Committee on Commerce of the House of Representatives, the Committee on Finance of the Senate,'' after ``Representatives''.
summary: Adoption Equality Act of 1998 - Amends title IV part E (Federal Payments for Foster Care and Adoption Assistance) of the Social Security Act (SSA) to revise adoption assistance eligibility guidelines for children with special needs. (Sec. 2) Makes eligible for such assistance only children with special needs who before termination of parental rights and the initiation of adoption proceedings were: (1) in the care of a public or licensed private child care agency or Indian tribal organization, either pursuant to a voluntary placement agreement (provided the child was in care for not more than 180 days), or as a result of a judicial determination to the effect that continuation in the home would be contrary to the child's safety and welfare; or (2) residing in a foster family home or child care institution with the child's minor parent. Requires a State to consider such special needs, together with the circumstances of the adopting parents, in determining the amount of Federal adoption subsidies paid to them. Prohibits assistance with respect to any child who is not a U.S. citizen or resident and who was adopted outside the United States or was brought into it for adoption purposes. (Sec. 3) Prescribes guidelines under which the Secretary of Health and Human Services shall reduce, for specified fiscal years, Federal payments to the States for administrative costs based on determinations of amounts attributable to the Medicaid program under the Food Stamp Act of 1977. Requires the Secretary to make a bonus payment to any State: (1) whose income and eligibility rules are not more restrictive than the income and resource eligibility rules applied by the State for the temporary assistance to needy families (TANF) program funded under SSA title IV part A; and (2) which assures the Secretary that families applying for TANF may apply for Medicaid under SSA title XIX.