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PASS CLINTON LIBRARY PHOTOCOPY THE PRESIDENT THE WHITE HOUSE 11-19-97 WASHINGTON copied November 14, 1997 Reed '97 NOV 17 AM8:29 MEMORANDUM FOR THE PRESIDENT Kagan FROM: Bruce Reed Emanuel (p.5) Elena Kagan SUBJECT: DPC Weekly Report 1. Family -- Adoption Legislation: You are scheduled to sign new adoption legislation on Wednesday, in an event giving a prominent role to the First Lady. The legislation is a huge step forward in promoting adoption and improving our nation's child welfare system. The final bill largely incorporates the Administration's proposals in this area. In particular, the bill (1) makes clear that children's health and safety are the paramount concerns of the public child welfare system; (2) clarifies the "reasonable efforts" standard; (3) speeds up court hearings for children in foster care and generally requires states to initiate proceedings to terminate parental rights after a child has been in foster care for 15 of the previous 22 months; (4) provides states with financial incentives to increase the number of children who are adopted; (5) reauthorizes the Family Preservation Program (staving off an expected battle next year) and increases its funding; (6) ensures health coverage for adopted children with special needs by requiring states to provide coverage through Medicaid or the new child health program; (7) expands HHS's authority to issue waivers to states for child welfare and foster care demonstration projects; and (8) breaks down barriers to adoptions across state lines by prohibiting states from denying a suitable out-of-state adoption when no in-state adoption is available. 2. Health -- FDA Reform Legislation: You are scheduled to sign FDA reform legislation on Friday. This legislation reauthorizes the very successful user fee program that has enabled the FDA to speed the approval of new drugs. The bill also codifies the REGO reforms, emphasizing agency performance and accountability, that the Vice President successfully implemented at the FDA in 1995 and 1996. In the course of considering the legislation, Congress deleted or amended the provisions (involving, for example, off-tabel uses of drugs and devices) to which consumer advocates most strongly objected. We worked closely with Senator Kennedy in the effort to ensure consumer protections, and he happily cast the 100th vote in the Senate's unanimous passage of this legislation. 3. Health -- Quality Commission: You are scheduled to accept the Quality Commission's Bill of Rights on Thursday. We plan to submit a memo to you early this week summarizing the Bill of Rights and recommending an appropriate response. We are also reviewing possible executive actions to improve the quality of health care in the federal government. We will discuss these proposals in the memo as well. As a lead-up to your announcement on Thursday, we have THE PRESIDENT HAS SEEN 11-19-97 asked the board of the Journal of the American Medical Association (JAMA) to brief the Vice President, Secretary Shalala, and Secretary Herman on its upcoming issue, which is dedicated entirely to concerns about health care quality. JAMA representatives are previewing this issue at the National Press Club on Tuesday, and an event with the Vice President on the same day should take advantage of media interest and provide a good basis for your announcement later that week. 4 Health -- Satcher Nomination: The Senate adjourned before acting on the nomination of Dr. David Satcher, notwithstanding a 12-5 committee vote in favor of confirmation. Senator Ashcroft placed a hold on the vote on the ground that Dr. Satcher supports the Administration's position on late term abortion. Some have suggested that the Senator took this action solely to position himself for a 2000 Presidential run. Dr. Satcher has never played a prominent role in the abortion debate and has disavowed any intent to use the Office of the Surgeon General to forward any "abortion rights agenda." Dr. Satcher continues to enjoy the strong support of a number of Republican Senators (Frist, Nickles, Jeffords) and of virtually every credible health care group in the nation, including the AMA. Although we are optimistic that the Senate will vote to confirm Dr. Satcher soon after returning in January, we will work hard throughout the recess to ensure that this nomination does not become a referendum on partial birth abortion. 5. Health -- HHS Study on Take-Up Rates for Health Insurance: You recently asked about an HHS study showing a decline in take-up rates for health insurance. The study reported on 10-year trends in access to and participation in employer-sponsored health insurance. It found that between 1987 and 1996, the proportion of workers with access to employer-based insurance remained constant at about 82 percent. The proportion of workers accepting that coverage, however, declined from 93 to 89 percent. The decline was most pronounced for young and low- income people; only about 75 percent of the individuals in each of these groups with access to insurance decided to purchase it. The study noted that the decline in take-up rates occurred during a period when premiums increased three times as much as wages. These findings confirm what the Administration has long recognized -- that affordability of insurance is as important as access to insurance. We hope that we will have an opportunity to build next year upon our efforts in granting Medicaid waivers and enacting the Children's Health Insurance Program to provide premium assistance for uninsured Americans. 6. Tobacco/Health -- Florida Tobacco Settlement and Children's Coverage: You asked last week whether we could agree to Florida's proposal to keep all the money it will gain from settling with the tobacco industry on condition that it use that money to expand children's health coverage. Current law gives us little room to enter into this kind of arrangement. The statute explicitly requires us to collect a specified share of any Medicaid dollars that states have recaptured. If we do not, private plaintiffs are likely to bring qui tam suits on behalf of U.S. taxpayers against Florida and other settling states; recovery in such suits would be split between the federal treasury (70-85 percent) and the private plaintiffs (15-30 percent). Of course, the federal government would have no right to recover (and any qui tam suits would fail) if the monies gained from the settlement were not Medicaid-related. But the Department of Justice believes that the damages Florida claimed -- and the amount it received in the settlement -- derive 2 cuatin in Defuning what hen been "receptured" THE PRESIDENT SEEN 11-19-97 from costs to the Medicaid program. Given these circumstances, we think it most fruitful to pursue a legislative solution to the problem of allocating tobacco funds between the federal and state governments -- preferably through a comprehensive national settlement, but if necessary (in the event no comprehensive settlement is reached) through legislation authorizing states to retain all Medicaid funds recaptured in tobacco litigation provided they use these funds for agreed-upon purposes. which 7. Tobacco -- Proposed Legislation: A number of Senators introduced tobacco legislation in the last two weeks. Sen. McCain introduced a bill precisely incorporating the terms of the settlement, except for the addition of provisions to protect tobacco farmers. Sen. Hatch introduced Regulator legislation increasing the cost of the settlement from $368 billion to $397.5 billion, raising (but not eliminating) the cap on penalties for failing to reduce youth smoking, and amending the FDA provisions, though not in a way that the public health groups will view as much of an improvement. Sen. Kennedy introduced a bill raising the cost of the settlement to more than $600 billion, primarily by increasing the tobacco excise tax by $1.50 over three years; the Kennedy bill does not provide tobacco producers with any relief from litigation. Sen. Lautenberg introduced a similar bill, costing $494 billion. No one has introduced comprehensive legislation in the House, and last week the Speaker indicated interest in breaking the settlement into a number of separate bills and acting on each as a consensus emerges. Also last week, Rep. Bliley said that he would not move legislation until the tobacco companies release 864 documents currently at issue in Minnesota's lawsuit. (The trial court found that these documents fall within the crime/fraud exception to the attorney-client privilege, but the tobacco companies have appealed this ruling.) Gingrich's and Bliley's statements may suggest a strategy of delay, but could as well have some altogether different meaning. We are continuing to seek a bipartisan process for enacting comprehensive tobacco legislation. Both the Speaker and Sen. Lott, however, are proceeding slowly -- in part because they have had to attend to more immediately pressing matters, in part because they have not yet settled on an overall tobacco strategy, and in part because so many Members wish to play a role in developing tobacco legislation. We and John Hilley are keeping in close touch with Congressional leadership so that we can take advantage of whatever opportunities emerge in the next few months. 8. Welfare -- Cessna Event: At an event in Wichita on Monday, you will dedicate a new state-of-the-art welfare-to-work facility at Cessna Aircraft Company, which is one of the founding members of Eli Segal's Welfare to Work Partnership. You will announce (1) that in six months 2,500 companies from all 50 states have joined the Welfare to Work Partnership -- far exceeding the goal of 1,000 set at the launch of the Partnership; (2) that the U.S. Chamber of Commerce has committed to enlist every local chamber of commerce in persuading their members to join the Welfare to Work Partnership; (3) that welfare caseloads fell 236,000 in July 1997, 1.9 million in the 11 months since you signed the welfare law, and 3.8 million since you took office; and (4) that the Departments of Labor and Health and Human Services are issuing new work-focused welfare regulations (see below). 3 THE PRESIDENT HAS SEEM 11-19-97 9. Welfare -- New Regulations: The Administration will announce two sets of new regulations on Monday: (1) proposed regulations from HHS to states operating the TANF program (essentially, the regulations for the entire welfare law), and (2) interim final regulations from the Department of Labor to states and localities receiving grants from the $3 billion Welfare to Work fund you won in the balanced budget agreement. The welfare to work regulation should arouse little comment. The TANF regulation, by contrast, may provoke extensive reaction from both Governors and advocates. As we told you in a prior weekly report, we worked extensively with HHS on this regulation. In the end, we were able to resolve all issues in a way that we think reinforces the importance of the law's work requirements while giving states flexibility to design welfare reform programs and a fair opportunity to correct any failures. Under the TANF regulations, states that fail the work rates will be levied a penalty based on performance -- how close they came to meeting the rates. States will have the opportunity to correct or eliminate violations through a corrective compliance plan, and states that make substantial progress during their corrective compliance period will be eligible for a reduced or eliminated penalty. To protect states from unreasonable risk, the penalty for failing to meet the two-parent participation rate will be proportional to the size of the two-parent caseload in the state. The regulation creates a system of disincentives to prevent states from gaming the work requirements, either by placing hard-to-employ individuals in state maintenance-of-effort programs (where the work rates do not apply) or by reclassifying the benefits received by these individuals as child-only (so that the individuals do not figure in the state's calculation of work rates). If the Secretary finds that a state has diverted recipients into a state program or reclassified benefits as child-only to evade the work requirements, she will refuse to reduce or limit the size of any penalties levied for failing to meet the work rates or time limits. The same disincentives apply when a state places individuals receiving child support payments in its state maintenance-of-effort program so as to prevent the federal government from gaining a share of these payments. The regulation, like the law, allows states to reduce the required work participation rate by the percent the caseload has declined since 1995, so long as the lower caseloads are not due to new eligibility restrictions. HHS initially proposed that states should not get a credit for caseload reductions attributable to enforcement measures like fingerprinting, but ultimately agreed to change this position. The regulation also addresses Sen. Murray's concerns about victims of domestic violence without threatening the integrity of the work rules. Under the regulation, a state will not be penalized for failing to meet work rates or time limits if its failure to do so is attributable to granting waivers to victims of domestic violence -- provided that the waivers are temporary and that they are accompanied by services to help the individual prepare for work and self-sufficiency. Sen. Murray may think that the regulation does not go far enough, but we think it represents the best accommodation of the full range of interests. 4 THE PRESIDENT KAS SEEN 11-19-97 10. Immigration -- Central Americans/Haitians: The D.C. appropriations bill, as finally enacted, Includes provisions to (1) give amnesty to certain Nicaraguans and Cubans, (2) ensure application of the old immigration law's standards to certain Guatemalans, Salvadorans, and East Europeans, and (3) reduce the number of unskilled worker visas and diversity visas. Although the bill provides no relief to Haitians, we were able to secure commitments from the Republican leadership to consider legislation on this issue early next session. These commitments allowed the Attorney General to announce that the Department of Justice would suspend the deportation of any Haitians covered by the proposed legislation for approximately six months. 1. Crime -- Crime Statistics: The Justice Department released new crime data on Saturday from the annual National Crime Victimization Survey (NCVS). The highlights of the survey were included in this week's radio address. Crime victimization rates are today at their lowest level since the inception of the NCVS in 1973. The murder and violent crime rates fell 10 percent and property crime rates fell 8 percent in 1996. The decreases are even more significant when viewed over time: since 1993, violent and property crime rates dropped 16 percent and 17 percent respectively, and murder rates dropped a stunning 22 percent. Equally notable, these reductions were felt by all Americans -- by men and women alike, and by individuals from every racial group and income level. Ralun 12. Crime -- Juvenile Crime: The final Commerce/Justice/State appropriations bill contains significant new funding for our key juvenile crime priorities. The bill authorizes and funds a new $250 million Juvenile Accountability Incentive Block Grant, 45 percent ($113 million) of Souther which must be spent on prosecutors, probation officers, and juvenile gun and drug court programs. Our budget contained $150 million in direct funding for the same purposes. In addition, the Labor- vikit HHS appropriations bill provides substantial new funding ($40 million) for afterschool programs through the 21st Century Schools Program at the Department of Education. We proposed $63 that school million for afterschool programs in our budget. THE 13. Race/Education - Urban Education Initiatives: DPC staff met this week with senior representatives of several national organizations interested in urban education, including the Council of Great City Schools, the U.S. Conference of Mayors, the National Urban League, the Rainbow Coalition, the AFT and NEA, and MALDEF. Our staff provided a broad overview of education proposals under consideration for FY 1999, including (1) the College-School Partnership initiative to increase college enrollment among low income and minority students by providing mentoring and other support services and (2) the Education Opportunity Zone initiative to provide increased educational assistance to high-poverty districts that agree to adopt a standards-based reform agenda involving the end of social promotions, the removal of bad teachers, and the reconstitution of failing schools. The groups generally liked these proposals, but expressed a wide range of views about student accountability provisions. The AFT felt strongly that even the mentoring initiative should include a requirement that students meet certain academic standards, while the civil rights groups expressed opposition to any performance requirements. 14. Race/Education -- California Bilingual Education Ballot Initiative: Opponents of bilingual education in California have collected enough signatures to place an initiative on the June 5 THE PRESIDENT HAS SEEN 11-19-97 1998 ballot to require that Limited English Proficient (LEP) children be taught in English (specifically, in "sheltered English immersion" classes for one year and then in ordinary English- language classes) unless a parent requests bilingual instruction. A recent Los Angeles Times poll found that over 80 percent of Californians supported such an initiative, including 84 percent of Latino voters. Most Hispanic groups have come out against the initiative, as has the California Teachers Association and Sen. Boxer. Other education groups and most public officials (Gov. Wilson, Lt. Gov. Davis, Attorney General Lungren, and Sen. Feinstein) have not yet taken positions on the initiative. The DPC has convened a working group with representation from the Department of Education and other White House offices to review the educational, legal, and political issues this initiative raises and provide you with appropriate analysis and advice. At this early stage, everyone in the group agrees that you should refrain from taking a formal position on the initiative. 15. Race -- Service Initiatives: We are working with the Corporation for National Service and the PIR on several race-related service initiatives that you might want to take a part in announcing. The actions are designed to lead up to Martin Luther King Day, which Congress officially designated in 1994 as a day of service "a day on, not a day off" in recognition of Dr. King's belief in service activities. The CNS will award $225,000 in mini-grants to 70 communities to organize local days of service in observance of Martin Luther King Day. In addition, Harris Wofford wants to promote something called the "Kindness and Justice Curriculum," which is the brainchild of a youth service group involving Dexter King. The group is encouraging schools and students to do acts of "kindness and justice" in the two weeks leading up to Martin Luther King Day, to discuss them in class, and to post them on the Web. Finally, we are exploring ways to encourage interracial dialogue in the Corporation's service-learning programs, where children serve together and then reflect on that experience in school. These efforts can build on successful AmeriCorps service projects, like the City Year program, that focus on diversity issues as part of the service experience. yu- I Shownd Du sevin That Day in internacies efforts Amencous hopefully 6 Promotion of Adoption, Safety and Support for Abused and Neglected Children Act (PASS) The result of a comprehensive bi-partisan effort on behalf of children and families, the purpose of PASS is to promote adoptions and safety for abused and neglected children by clarifying that a child's health and safety are the paramount considerations when a state makes any decision concerning the well-being of a child in the foster care system. 1. PROMOTES ADOPTIONS Rewards States that increase adoptions with bonus of $2000 for adoptions of foster children and $4000 for adoptions of children with special needs Requires States to use "reasonable efforts" to move eligible foster care children towards safe adoptions Promotes adoption of all special needs children and ensures health coverage for special needs children who are adopted delink AA From welfare assistance Breaks down unnecessary geographic barriers facing adoptive families Requires States to document and report adoption efforts II. ENSURES SAFETY FOR ABUSED AND NEGLECTED CHILDREN Ensures that health and safety are paramount concerns when a State determines placements for abused and neglected children Adds "safety of the child" to every step of the case plan and review process Requires criminal records checks for all foster and adoptive parents Allows children to be freed for adoption more quickly in extreme cases such as murder or severe abuse by their parents III. ACCELERATES PERMANENT PLACEMENTS Cuts by 1/3 the time a child must wait for a plan to achieve a safe and permanent home Requires states to initiate court proceedings to free a child for adoption once that child has been waiting in foster care for one year or more Gives judges the discretion not to initiate legal proceedings in special circumstances such as when a child is safely placed with loving relatives Shortens a child's wait for adoption by allowing states to develop a standby (or concurrent) permanency plan Prevents long, legal delays through the appeals process IV, INCREASES ACCOUNTABILITY AND REFORMS Establishes new outcome measures to monitor and improve state performance Requires states, for the first time, to document child-specific efforts to move children into adoptive homes Introduces innovation grants to reduce backlogs of children awaiting adoption Strengthens and integrates substance abuse treatment with protections for children Continues investments in strengthening families at the community level Establishes a plan for public oversight of suspicious child deaths PASS costs 2.3 billon Ever five years when originally introduced; currently, by the bill deluks star care We arristance know The for only compromise prospectively, COUNTY OF LOS ANGELES ADMINISTRATION FOR The DEPARTMENT OF CHILDREN AND FAMILY SERVICES CHILDREN'S SERVICES 425 SHATTO PLACE 80 LAFAYETTE STREET - 18TH FL City LOS ANGELES, CA 90020 NEW YORK, N.Y. 10013 NewYork (213) 351-5602 (212) 266-2100 Fax: (212) 266-2250 PETER DIGRE NICHOLAS SCOPPETTA Director Commissioner November 3, 1997 Mr. Bruce Reed The White House Washington, D.C. 20005 Dear Mr. Reed: On behalf of the New York City and Los Angeles County child protection delegations, thank you for the time you gave to us on the "Emancipation Initiative" as well as pending Senate legislation that promotes adoptions, S. 1195 - the PASS Act. As discussed, we believe that the Emancipation Initiative, with leadership from the President, could marshal significant existing resources on behalf of our most vulnerable young adults and provide them with an opportunity to live successful, independent lives. There is no additional cost to this Initiative, yet the public-private partnership required for success would send a powerful message, demonstrating the best results of such a collaboration. The PASS Act is landmark legislation which will promote safety and permanency for abused and neglected children, and will eliminate delays in completing adoptions for those children where there is no likelihood that family reunification is an option. In addition, as detailed in the enclosed newspaper articles, the re-authorization of the Family Preservation and Support Act is a critical component of a balanced approach to ensuring permanent, safe homes. While we share a concern regarding the proposed funding mechanism for the bill, we understand that the impact of this provision is under review, and we urge adequate funding from an alternative source. Our overall impression from our visit was that there exists a real consensus for a bi- partisan measure in Congress on permanency for foster youth, and urge you to continue your support. As the local jurisdictions that care for 20% of the foster children in the United States, we are extending a sincere offer to work with you so that legislation promoting safety, permanency and opportunity for our children will become a reality. Thank you again for your commitment to our most vulnerable children. Sincerely, Nancy NANCY M DALY Day Joy Warren ELIZABETH H. LOWE JOY WARREN Peter Digre Vicholas Scopetta PETER DIGRE NICHOLAS SCOPPETTA Enclosure Los Angeles Times SECTION E THURSDAY, OCTOBER 30, 1997 Reforms Seem to Be Working till relatively new, legislative reforms that with community-based services. The less serious S seek to protect children by strengthening the cases are not recorded in a central registry. communities around them appear to be reduc- Elsewhere, multidisciplinary teams of profes- ing widespread complaints about the child protec- sionals have been stationed in different sectors of tive services system across the country. Prelimi- Cedar Rapids, Iowa; trained volunteers are paired nary reviews of comprehensive systemwide with at-risk families in Macomb County, Mich.; and reforms, such as those in Florida and Missouri, in Washington, anonymous reports are investi- show families are better off and children remain gated only under the most serious circumstances. safe, according to the National Conference of State While many reforms are not fully implemented Legislatures in Denver. or evaluated, they are spreading quickly, says In Jacksonville, Fla., for instance, calls to the Susan Notkin, director of the children's program at child abuse hotline are referred to the family's the Edna McConnell Clark Foundation in New nearest "full service school," which can direct the York, which is funding some of the reforms. To parents to local services. Also, under a "commu- work, she says, reforms must include a safety plan nity support agreement," a community volun- for each child, a strong network of local organiza- teer-a friend, a minister or a relative-commits to tions and citizens. an evaluation plan, and a helping the family. When the agreement to accept recognition by child protection workers that they responsibility is signed, the case is officially closed. must share decisions with their new community So far, 300 citizens have signed such contracts. partners. In Missouri, the state's child protection agency "It's very exciting," says Notkin. "But it's tough. operates a triage system in which troubled families It's very tough." are screened for either a formal investigation in collaboration with police or an informal assessment -LYNN SMITH LUIS SINCO / Los Angeles Times Otis Woodward and Elena Ocegueda, with their 2- of a family preservation program offered jointly by year-old daughter, Whitney, are recent graduates Drew Child Development Center and the county. Los Angeles Times SECTION E THURSDAY, OCTOBER 30, 1997 A Grass-Roots Approach to Keeping the Family Whole " Children: County networks strive to bring the problems of abuse and neglect close to home. Community involvement gives Why should I parents in crisis access to the people and programs that can help. take her babies away when she NEIGHBOR TO NEIGHBOR eye on you, you're going to do a perfect job. It's the way it's supposed to be." has a support After three decades of building multi- billion-dollar child protection systems network like One in an occusional series about that studies indicate have been unable to community building protect most children, agencies across that? When a the country are rethinking the way it's By LYNN SMITH couple hundred supposed to be-retooling their systems TIMES STAFF WRITER to shift responsibility for the commu- people are eter Digre, director of Los An- nity's most vulnerable children and keeping an eye P geles County's child protection families back from complex, distant in- agency, might have known he stitutions to neighborhoods and commu- on you, you're wouldn't be the most popular nities. person at Praises of Zion church in At least 12 states, not including Cali- going to do a South-Central, an area where a dispro- fornia, have passed legislation that al- lows troubled families to receive help perfect job. It's portionate number of children have been without the often-stigmatizing official placed in foster care. Still, he was the way it's investigations that try to fix blame. surprised when the Rev. J. Benjamin Others are experimenting with reforms Hardwick called a mother up to the supposed to be. to involve police rather than social pulpit, described her troubles, then workers to investigate abuse reports, pointed to Digre and announced: "And freeing up social workers to do their jobs. " Peter wants to take her babies away. Some reform efforts are pro-active- After the service, at which Digre was centralizing services in one-stop neigh- a guest, he recalled that concerned borhood shops and recruiting volunteers Peter Digre congregation members surrounded the and paraprofessionals to help over- mother with offers of help. but no one whelmed families before crisis occurs. Director of the came forward to shake his hand. In Los Angeles County, a system of 28 Department of LORISHEPLER Angeles Times "It was beautiful," he recalls. "Why networks was created four years ago Children and should I take her babies away when she through a collaboration between the After receiving help, Kathleen Pierce is surrounded by Kandace, left, Kory and Kaleen. "I thought the whole world Family Services. has a support network like that? When a Department of Children and Family had dealt me an injustice. I realize now I was dealing an injustice to my children, and they didn't deserve it." couple hundred people are keeping an Please see NEIGHBOR, E5 NEIGHBOR Even if they are not in gangs, What's more, the networks have many graduates of the system find also helped build "community ca- they aren't able to form family or pacity," according to USC associate Continued from E1 community ties, says Amaryllis professor of social work Jacquelyn Services and neighborhood-based Watkins, a deputy director of the McCroskey. Each network has a agencies to help parents faced with Department of Children and group of community advisors, losing their children to foster care. Family Services. "If people don't sometimes including former cli- While some worry about chil- have à stake in the community, ents. They have created new jobs, dren's safety whenever they are they won't protect it," she said. such as those for "teaching and returned to families who have been Triangle Church is one of the demonstrating workers" who show abusive in the past, many say the "lead agencies" the county works parents in their own homes how to worst thing about the new ap- with to help reverse that cycle and care for children and manage a proach is that it hasn't changed the rebuild the community through the household. Some neighborhood old system enough. Under the system of "family preservation residents who moved out have traditional system, parents who networks." Family preservation returned to work in the programs have been reported to social serv- strategies are not new but have because they want to give some- ices receive a visit from a social typically used individual social thing back to their community. worker once or twice a month and workers to provide intensive in- lists of referrals for counseling and home counseling during a family's "I don't believe there's anyone other programs. The family pres- crisis, such as drug abuse in the who can't change. All they ervation networks consist of a home, reports of child abuse or loss have to have is the right support," yearlong program that involves of a job. Under the Los Angeles says Andrea Jackson, who grew up the community in innovative sup- system, the county contracts with in South-Central. Now a graduate port programs. private nonprofit agencies, which student in behavioral sciences and But, "The evidence is pretty then subcontract for neighborhood ethnic studies, she teaches parent- compelling that it needs to be a services-in-home counseling, ing at Triangle Baptist Church. differently conceived system," drug treatment and people to serve Her morning class draws a dozen says Frank Farrow, the children's as role models-to help parents parents, many of whom are recov- services director of the Washing- who voluntarily enter the pro- ering from-addictions, were them- ton D.C.-based Center for the gram. selves raised with harsh physical Study of Social Policy. The present Parents cooperate in creating punishments and who say they system, he says, "doesn't reach their own custom plan. County can't recall hugs or kind words people it should, and when it does, social workers still make recom- from their parents. it can't do very much." mendations to remove children if Jackson kicks off an animated Farrow says national studies they appear to be in danger. They discussion by posing a Socratic show as much as 50% of all child keep in touch with family preser- question: Is it ever advisable to abuse and neglect goes unreported, vation workers, who visit the fami- spank? and at least 40% of the confirmed lies up to four times a week and are Gloria Moore, reunited with her cases have been through the sys- often more familiar with the com- five children, says she sometimes tem before. munity's resources, and help link has to give her children "a tap on In 1993, the U.S. Advisory Board families with housing, health care, the hand" because they ignore her on Child Abuse and Neglect called child care and other services. otherwise. "I know you're not sup- for a new neighborhood-based The networks, started first in posed to," she says. "I always said, strategy for child protection. The 'I'll never do that.' current system of mandatory re- areas with the highest number of Carla Eddington, a single mother porting was designed in the 1960s abuse and neglect reports and fos- of five who is now being treated for when child abuse was thought to ter-care placements, now cover an depression, suggests parents lose be rare. Since then, agencies have estimated 80% of the county. So influence when they tell children been buried by reports and investi- far, the networks have served not to hit their friends and then gations that in 1993 substantiated 30,000 children in 5,000 families. punish by hitting. "You're not 2.8 million cases of child maltreat- There is often no way of know- setting an example," she says. ment. The vast majority are cases ing whether families in the net- "You're saying it's OK to hit." of neglect, usually linked directly works reabuse their children. Re- Jackson tells them that children to alcohol or drug abuse by care- searchers said accurate scientific will avoid someone who spanks takers. Most protective efforts, evaluations of such programs are them a lot. That they can use time meanwhile, continue to focus on nearly impossible to make because out or ignore them, or remember to identifying and investigating sus- of the multiple causes of family reward children when they are pected cases, rather than treating dysfunction. well-behaved. "It's important to or preventing the problem. However, according to one mea- understand," she says, "the more In South-Central, the Rev. sure from the family services de- praise you give them, the more Frank Higgins of Triangle Baptist partment, the networks have at they want." Church contends the investigatory least decreased the rates of foster- Many parents understand that child protection system has de- care placement. While placement until the new policies went into stroyed the community. He de- rates continued to rise from 1992 to effect four years ago, they might scribes a tragic cycle that starts 1996, in areas with networks in have lost their children perma- when children are separated from place they rose only 32%, com- nently. parents, damaged in unstable or pared with 86% in other areas. The A single mother, Tatia McDon- uncaring foster care and, then, $15-million network system saved alienated and troubled, they return an estimated $27 million in federal, ald, 31, was raised in an unhappy foster home. She had her first baby to the community. He has no state and county foster-care costs, at 14 and began drinking at 17. A statistics, but he suspects as many according to county officials, who companion once hit her SO hard she as half the gang members in Los also estimate the networks have lost some teeth. At 25, she turned Angeles may be veterans of the leveraged an additional $150 mil- to cocaine. When her youngest son county's child protection system. lion in services. was born with drugs in his system, the county took away all four of her boys. Until then, there had been a "Sometimes, I tell them it's a systemwide commitment to keep- F riends and relatives readied strength that they let me in their their cameras while a trio of ing families together, said the house," says Jenny Jones, program drummers beat out African director at Drew Child Develop- worker. County figures show that rhythms in a small auditorium in ment Center in Watts, another of in the ensuing months temporary Watts. Candles and flowers deco- out-of-home placements soared. the county's lead agencies. rated the stage. A brown paper Although they have dropped back Family workers say about two- sign declared, "It takes a whole again, she said: "It's like that era is thirds of the parents make it village to raise a child" and, under- over. Now it's all permanency and through the yearlong program. neath, "Congratulations, Y'all!" adoption." Even then, it's no guarantee of A dozen parents, sweating in red, long-term success. Even supporters admit lifelong green and black caps and gowns At least two children died, one in or multigenerational problems in a marched in, ready to celebrate 1993 and another in 1995, while family have little chance of being their graduation from the yearlong their families were receiving the fixed in a year. But Higgins and family preservation program at the intensive services provided by the others argue family preservation Drew Child Development Center. networks, according to Bruce Ru- networks-with their extra mea- In the back row sat a couple, new binstein. a former deputy director sures of services-should be ex- and reluctant volunteers for the of the Department of Children and panded. What's needed beyond program, holding their baby who Family Services. The family of a counseling and support, they say, was exposed to drugs at birth. third child, Sherrice Iverson. had are more long-term programs that Standing nearby, social worker address whatever families need to Sweeney said he had invited them also gone through a family preser- reestablish themselves-job train- specifically "so they can see where vation network before the 7-year- ing, education, child care, trans- they'll be in a year." old was killed this year in a Las portation, and the bigger problems Despite her troubled past, she Vegas casino while her father was of affordable housing, crime and says family preservation workers gambling. A non-family member is drugs. "believed in me 100%." After the suspected in the death. Lisa Pion-Berlin, president of county social worker recom- Sweeney says the parents with the state chapter of Parents mended family preservation, she the best chances of success are Anonymous, says more nongov- received drug treatment, counsel- those who, like Kathleen Pierce of ernmental support is needed to let ing three times a week in her Whittier, get help in the midst of parents know it's OK to ask for home, a "teaching and demonstrat- their first crisis and are able to help. ing" worker once a week to show restructure their lives. Without an ongoing support sys- her basic household skills, and an Although her third child was tem, such as the 2,000 groups adult role model for her oldest son. born with drugs in his system, Parents Anonymous provides Pierce, 33, says she was shocked nationwide, "gradually, you'll have Sober for two years, McDonald when county social workers later the problem again." There are now works at a Marriott Hotel and took all of her children after tests fewer than 20 support groups in has been reunited with all her showed she had relapsed. To regain Los Angeles County, she says. children. "I see a difference in my her children, she entered residen- Although other states help pay for kids' eyes now," she said recently, tial drug treatment. Whittier is an such groups, "there's no money in fighting back tears. "They seem area without a network. She re- this county or state to do Parents happier." ceived the help she needed only Anonymous," she says. She still struggles with how to because there was a spot for her in Chances of funding long-term express her love for her children, the neighboring South-Central prevention programs are remote, but she makes the effort because Family Preservation Network. advocates say, not only due to this she doesn't want to let them down. During drug treatment, she era of tight resources but also "I make sure I kiss and hug my slowly widened her perspective. "I because policymakers tend to focus boys every day," she says. "Even thought the whole world had dealt on crises. Also there are those who the 17-year-old." me an injustice. I realize now I was believe that parents who have hurt Social workers say even though dealing an injustice to my children, or endangered their children can- they have volunteered, many par- and they didn't deserve it." not be trusted to change. ents initially resent the intrusion, Through her social workers Swee- calling them names or continuing ney, her family preservation to watch TV when they visit. worker Richard Benavides and Family preservation workers say adult role model Betty Esparza, they are dedicated to finding and Pierce said she was able to nego- building on parents' strengths, tiate the world without drugs after rather than looking for weak- leaving rehab. They helped her nesses. cope with an angry teenage daugh- ter, buy Christmas presents, find support groups and funding for a counselor. When she failed to schedule appointments, she said Benavides "would pick up the phone and dial for me." Now she's working, attending support groups and trying to find They watched and heard good- natured laughter as nearly all of new friends. Though her case is those who took the microphone officially closed, Benavides and recalled how much they detested Sweeney have told her she can call the intensive services at first. them if she ever gets in a jam. "Now I'm on my own," Pierce said. Some then-cried as they thanked God and their social workers for "But I'm not." their new lives, new jobs. hile the most violent or Officials said they believe that W those who make it this far have a chronically addicted parents are screened out of the program, good chance of succeeding in the nearly all parents reported to the long run. county could benefit from inten- Crystal Hodges, a single mother, sive custom services, said Eric had her fifth child while she was in Marts, children's services adminis- the program, and she said it felt trator at the family services de- good to have a sober baby. Now partment. But the system is oper- she is going to Compton College, ating at only about half its studying computer science and potential due to funding caps, he planning to be an accountant, try- said. When community networks mg to stay busy and making new friends at the church on the corner. can't handle any more cases, par- ents who might have received "They call it the love corner," she family preservation services are said shyly. handled under the old system. The only problem with the Some social workers also worry family preservation program, she that family preservation has be- said, is that it came too late for her: come less of a priority in recent One of her children was already years as high-profile deaths of adopted. What she wants for all of them is "to do better than I did." children monitored by the system have pushed the pendulum away from prevention and toward the ultimate safety policy-adoption. Nancy Daly, a member of the Los Angeles County Commission for Children and Families, said pulling back is a natural reaction to a child's death. "Everyone should go crazy when a child dies," she said. "That's just human." Social workers admit it's also partly a matter of protecting their own jobs. One worker, who asked not to be identified, said workers have been pressured to "cover themselves and detain children" since 1996, when a county social worker and her supervisor were fired following the death of an 18-month-old girl. The child, who was taken from her parents at birth, was returned home under the old system of supervision and apparently was shaken to death by her mother or father. THE SUN October 26, 1997 PERSPECTIVE Secret to fighting poverty teachers to choose the schools within the public system that match their convictions about the methods of education most likely to lead to successful learning. Third, many successful Initia- A few key individuals road to success. learning is that if front-line profes- tives have targeted an array of in- The predicament is that suc- sionals and agencies are to be able terventions on a single community can make a difference cessful programs are seldom sus- to do whatever it takes to help to strengthen families and neigh- tained. When efforts are made to within mainstream systems, the borhoods. Recognizing that nar- spread them, to bring them into systems must support their flexi- rowly defined interventions don't By LISBETH B. SCHORR the mainstream, they are strangled billty by judging them by their re- work for those in high-risk circum- by red tape, rigid bureaucracies sults rather than for their compli- stances, they are combining action HY, in the and archaic financing. ance with a maze of rules. in the economic, service, education W midst of a vi- I set out in search of the people Second, successful efforts es- and community-building domains brant econo- and places that had beaten the tablish partnerships with resi- to expand opportunity while my, are so odds and had transformed not just dents and community organiza- strengthening individual capacity many Ameri- a school but a school system, not tions that act more like families to respond to that opportunity. cans still just a social agency but a neighbor- than bureaucracies. One national Empowerment zones and foun- mired in con- hood, not just a few individuals but pioneer is Los Angeles County, dation-funded neighborhood centrated poverty? whole populations. which has contracted with 25 net- transformation initiatives rely on a For Americans turned off on The secret of these successes? A works of grass-roots community community's strengths for design- government, the answer long has few key people had the insight, organizations, including churches, ing and implementing change, been that nobody knows what to courage and influence to climb out Boys and Girls clubs and day care while drawing on outside resources do about the great underclass mal- of old ruts and make fundamental centers. that bring influence. adies of joblessness, single-parent changes on three fronts: These are the organizations, The evidence is there. From Los families, school failure, substance First, they achieved a new bal- says Peter Digre, director of the Angeles to Savannah, Ga., from the abuse and violence. ance between flexibility at the county Department of Children South Bronx to St. Louis, commu- In fact, we do know what to do front lines and accountability for and Family Services, that "breathe nities are taming bureaucracies, on a small scale. Here and there, in- the expenditure of public funds. in and out with what's going on in crafting new partnerships and novative programs have succeeded We always have known that in the the neighborhood" and are in the putting together a critical mass of in changing life trajectories and course of home visiting or provid- best position to be intensively in- what works to transform entire setting children and families on the ing prenatal care or even job train- volved with vulnerable families. neighborhoods. ing, people working on the front Similarly, to be effective, We must act on what we know Lisbeth B. Schorr, director of lines cannot be constrained by nar- schools must be free to adopt co- to mobilize our resources, intellec- Harvard's Project on Effective In- row protocols or circumscribed job herent reforms, must be held ac- tual and spiritual, to ensure that all terventions and author of "Com- descriptions. They must be able to countable for student achievement our children can grow up with a re- mon Purpose" (Doubleday), wrote respond, whether to a housing crl- rather than for compliance with alistic expectation that they can this article for the Los Angeles sis or the need for child care or the central office's ideas of how to participate in the American Times, where it first appeared. drug treatment. What we now are teach and must allow parents and dream. Olivia, Carol, Jen and Nicole Here are copies of Rockefeller letter to DES and NGA/NCSL etc letter re offsets. Sorry I didn't get these around to you sooner. Mary B. Z 94564122:# SENT BY:Xerox Telecopier 7021 :10-21-97 ; 1:52PM ; JOHN D. ROCKEFELLER IV WEST VIRGINIA Hnited States Senate WASHINGTON, DC 20510-4802 October 10, 1997 Dear Madama, It was good to talk to you about adoption and the Senate effort that I am helping to lead in order to forge a grand compromise that could lead to the swift enactment of a strong adoption bill, secure new resources for abused and neglected children, and avoid any administrative caps on the food stamp program. While I understand that "cost allocation" is a difficult issue for the states and HHS, I believe that we face the stark choice of either using the opportunity provided by cost allocation or accepting a cap on food stamp administrative costs, the latter which poses the likely prospect of a push later for administrative caps on Medicaid, too. Given these the realities we see in Congress, with an intensely supported agricultural bill financed by food stamp administrative funds, I believe that the best strategy is to work together to develop an acceptable approach to cost allocation which would also help us to secure new funding for services for abused and neglected children and preempt current and future efforts to cap food stamps or Medicaid. Since this is such a complicated process, let me recap our potential compromise and provide detailed papers on cost allocation from the Center on Budget and the Congressional Research Service. As I explained, Senator Chafee has just proposed to Senator Lugar's favorable reception that the Senate accept a form of cost allocation that would encourage states to keep TANF and Medicaid programs aligned and still capture the potential CBO savings by prohibiting states from shifting administrative costs to avoid the 15% administrative cap imposed under welfare reform. Preliminary CBO scores of our cost allocation option are expected to yield $1.6 billion in savings over 5 years. The proposal is to split those savings between the Senate adoption bill and the Senate agriculture research bill, providing each legislative initiative with $800 million in offsets. To tailor the Senate PASS Act to fit this compromise, Chafee and I would agree to phase-in the delinkage of special needs adoptions to only cover future adoptions. This is estimated to cost approximately $700 million over 5 years and still allow for th $100 million increase for Family Preservation/Family Support included in the PASS Act. While complicated, this compromise would address many of the issues that could delay the enactment of adoption legislation this session. FIrst the agreement resolves the funding conflict between the Finance Committee and the Agriculture Committee in a positive way that avoids the direct cap of administrative costs for food stamps. Next the legislation provides desperately needed funding for abused and neglected children through the maintenance of effort E 94564422: SENT BY:Xerox Telecopier 7021 :10-21-97 : 1:53PM The Honorable Donna Shalala October 10, 1997 page 2 standard requiring states to convert any savings from adoption subsidies into the existing child welfare system. Given the new expectations and demands we impose on states to move children into adoption and safe, permanent homes, additional financial resources will be crucial for real success and systemic change. Finally the PASS Act seeks to reauthorize Family Preservation- Family Support, a worthwhile initiative started by President Clinton in 1993. I was proud to work with the President and you to create this program, and want to find a way to continue it despite the new environment in Congress. I believe it is essential to move this reauthorization in tandem with our language to clarify reasonable efforts, so that we can reassure the skeptics that the Family Support dollars will not contribute to further abuse and neglect of children. Donna, I acknowledge that this is a complicated compromise, but I am convinced that it is our best chance to enact adoption legislation now, to provide financial assistance to the struggling child welfare system, and to avoid the dangerous precedent of administrative caps for food stamps and Medicaid. If we work together, we can achieve all of our goals. Thank you for all your work and energy on behalf of children and families. Best regards. Sincerely, Jay John D. Rockefeller IV Donn, please a use the underlinings, but 1 feel no The Honorable Donna Shalala Secretary Department of Health and Human Services strongly this in the right way 200 Independence Avenue, SW Washington, DC 20201 + go. We con pass this legislation, and we need you moru side! Day- 10.14.97.0055 V 94564122:# SENT BY:Xerox Telecopier 7021 :10-21-97 ; 1:53PM ; OCT-16-1997 15:08 IGA P.02/03 NATIONAL NACO of a GOVERNORS APWA ASSOCIATION american wishans Medical Confidents of Store Legislatures association Cartin October 9. 1997 The Honorable Thomas A. Daschie Minority Loader United States Senate U.S. Capitol S-221 Washington, D.C. 20510 Dear Senator Daschie: On behalf of the National Governors' Association, the National Conference of State Legislatures, the National Association of Counties, and the American Public Welfare Association. we write 10 express our strong opposition to the funding mechanism in the Promotion of Adoption. Safety. and Support for Abused and Neglacted Children (PASS) ACC S. 1195. WE specifically are concerned with Sec. 404 which would require states and counties to allocate to the Temporary Assistance for Needy Families (TANF) block grant those administrative costs shared with other federal means-tested programs such as food stamps and Medicaid. According to preliminary estimates from the Congressional Budget Office, requiring states to designare TANF as' the "primary" program would shift $300 to 400 million annually in food stamp costs from the federal government to states and counties. Additional costs would be shifted to states from the Medicaid program. Clearly, this provision is 8 violation of the Unfunded Mandares Reform Act of 1995 and would be subject to 2 point of order. States are now operating welfare programs under a fixed TANF block grant with a 15 percent administrative cap. Under the proposal in the PASS bill. costs that would have been considered legitimate food stamp and Medicaid administrative COSTS would now be subject to the TANF cap or shifted to states and localities. For states that have always apportioned some shared CUSIS among the relevant programs, the provision would require states to transfer these COSTS into the TANF block grant. All states are concerned about the Impact of increased administrative costs that may result from new federal requirements or from caseload increases because of natural disasters. economic downums. or population increases. The PASS proposal does not allow any adjustments for these factors. Although promotion of the adoption of children in foster care is an important public policy goal. our organizations cannot support legislation that places a financial burden on states and counties by reducing fedoral spending on other programs for vulnerable children and familles. We urge you to look for 2 different funding mechanism before proceeding with Senate consideration of S. 1195. Sincerely, Reyal Thound Raymond C. Scheppach William T. Pound Executive Director Executive Director National Governors' Association National Conference of State Legislatures S 94564122:# SENT BY:Xerox Telecopier 7021 :10-21-97 ; 1:54PM ; OCT-16-1997 15:08 IGA P.03/03 October 9. 1997 Page two Ail Johnson Larry E. Naske A. Sidney Johnson. m Executive Director Executive Director National Association of Counties American Public Welfare Association TOTAL P.03 9 9456412::# SENT BY:Xerox Telecopier 7021 :10-21-97 ; 1:55PM ; $ 300 M = Hospice CONFIDENTIAL ADOPTION ASSISTANCE OFFSET OPTIONS 1. Reduce Epotein (EPO) Payments by 5 Percent: EPO is a drug used to treat anemia related to chronic renal failure. EPO is a sole source drug, its manufacturer is competitively protected under the Orphan Drug Act. Medicare reimbursement for EPO totals nearly $1 billion per year. Prior to 1993, Medicare payment was $11.00 dose. OBRA 93 reduced Medicare's payment by $1.00 per dose based on an HHS IG report concluding that facility costs for EPO before manufacturer rebates -- were approximately $10.00 per dose, $1.00 less than Medicare's $11.00 reimbursement rate. The HHS IG report also concluded that some facilities received a 2 to 8 percent manufacturers rebate and that Medicare had no way to capture the savings from this rebate. This policy would reduce Medicare's reimbursement for EPO by a 5 percent per dose, or $0.50, to capture savings from manufacturers rebates. ESRD-related beneficiary groups and the manufacturer of EPO are likely to object to this change. Savings: $100 million over five years. (Staff estimate) 2. Reduce double payment for enteral nutrients: Enteral nutrients provide nourishment directly to the digestive tract of a patient who cannot ingest an appropriate amount of calories to maintain an acceptable nutritional status. For nursing home residents, enteral nutrients effectively represent a beneficiary's food or meal and could conceptually be included as part of Medicare's routine Part A payment to the nursing home. However, the HHS IG found that most nursing homes do not directly purchase enteral nutrients for residents, even though they report that they can purchase nutrients below Medicare reimbursement levels. Instead, nursing homes allow outside suppliers to provide the nutrients and bill Medicare under the Part B prosthetic and orthotic benefit. If Medicare recognized the nutrients as "food," payments for enteral nutrients would be made as part of the facility payment, rather than separately billed under Part B. This proposal would exclude enteral nutrients from Part B reimbursement when the patient resides in a nursing home. Instead, these costs would be included in a nursing home's routine costs and reimbursed under Part A. Savings: $50 million over five years (all of the savings occur in the first year, since SNF PPS begins in July 1998). (Staff estimate) 3. Reduce the Social Services Block Grant (SSBG) by $20-40 million annually. SSBG is an appropriated entitlement used to support a variety of social service programs designed to reduce or eliminate dependency, achieve or maintain self-sufficiency, help prevent neglect, abuse or exploitation of children and adults. The Senate Labor/HHS appropriations bill DETERMINED TO BE AN 10/9/97 ADMINISTRATIVE MARKING INITIALS: ms DATE: 5-14-14 reduces SSBG by $135 million in FY 1998. The House bill had a similar provision that was dropped. Savings: $100-200 million over 5 years. 10/9/97 DE-LINKING TITLE IV-E ADOPTION ASSISTANCE PROGRAM Background The Federal Adoption Assistance Program under title IV-E of the Social Security Act was enacted in 1981 to support the adoption of children who have been removed from the homes of low income parents for abuse or neglect and who the State has determined have special needs for an adoption subsidy. The special needs children covered by the federal means-tested entitlement must be removed from a family that meets the eligibility criteria for Aid to Families with Dependent Children (AFDC) in effect on July 16, 1996 or Supplemental Security Income (SSI)*. The IV-E program provides reimbursement to the States at FMAP for the monthly adoption subsidies to parents who adopt these eligible special needs children, the one-time non- recurring adoption expenses incurred by such parents, and State administrative and training costs associated with the adoption of such children. These children are also eligible for medical assistance under title XIX, Medicaid, and for social services under title XX. While the adoptive parents do not have to meet any financial eligibility criteria in order to receive an adoption subsidy from the State, the income of the adoptive parent may be considered in determining the subsidy level. The program supports approximately 150,000 children at an annual cost to the federal government of over $700 million. Special needs children who do not meet the requirements for IVE reimbursement -- they do not come from AFDC-eligible or SSI families -- are eligible for adoption assistance subsidies in all but three States (PA, SD and WV). Without federal reimbursement, States pay the full cost of subsidies to the parents who adopt these children. Most States (all but 6) also provide Medicaid coverage for these children, but such coverage is not automatic in many States. However, families receiving State-funded adoption assistance subsidies may lose access to Medicaid and other State-funded post-legal adoption services when they move from one State to another. (They continue to receive their State-funded adoption assistance cash subsidies.) De-linking Adoption Assistance The Promotion of Adoption, Safety and Support for Abuse and Neglected Children Act (PASS), S. 1195, would amend title IV-E to provide federal reimbursement (at FMAP) for all special needs children adopted from the child welfare system. The proposal would apply retroactively to children in families now receiving State-funded adoption assistance payments, as well as to all special needs children being adopted in the future. *The Personal Responsibility and Work Opportunity Reconciliation Act bases eligibility for Title IV-E adoption assistance on standards for Title IV-A (AFDC) as they existed in a State on July 16, 1996. Additionally, children who are eligible for SSI are categorically eligible for Title IV-E adoption assistance but new SSI eligibility criteria will eliminate automatic eligibility for Title IV-E adoption assistance for some children and may affect the continued eligibility for children currently receiving SSI. This proposal has the advantage of ensuring more equitable treatment for all children with special needs who are waiting to be adopted, regardless of the financial status of the birth families from which they have been permanently removed. It would also ensure that families would retain Medicaid coverage when moving from one State to another. CBO has initially estimated the proposal to cost approximately $2.3 billion over the next five years. The proposal includes maintenance of effort provisions designed to ensure that the savings accruing to the States would be used for the variety of child welfare, adoption and foster care services allowed under titles IV-E and IV-B. P.2 11-03-1997 12:00PM FROM MARY BOURDETTE 96905750 Adoption Legislation Background: The Administration as well as the House and Senate Leadership are anxious to get bipartisan adoption legislation passed and signed this year. The House passed its bill by an overwhelming margin in the Spring and Senator Lott had wanted to bring the House bill to the Senate floor. Unfortunately, adoption legislation has been held up in the Senate for many months because various parties (including the Administration and Senator Roth) have had problems with the costly delinking provisions in the package put together by Senators Chafee, Rockefeller, Craig and others as well as the cost allocation issue used to offset the $800 million to $2.3 billion costs of the bill. Last week, Senators Chafee and Craig met with Senator Roth. While the meeting initially led to an impasse (with Chafee insisting that the final bill include his delinking item and Roth insisting that delinking be dropped), the Roth staff have now floated a compromise bill. We have not seen the compromise language as yet, but understand it does include several items the Administration strongly supports (including our Adoption 2002 recommendations and the very important reauthorization of the family preservation program). However, we understand that it does not include several other items that we feel are very important to final legislation. These include Medicaid coverage for all "special needs" children (at a cost of approximately $30 to $40 million over five years) and several other changes in provisions dealing with the termination of parental rights (TPR) The total cost of legislation that includes these Administration supported items will be approximately $100 million over five years. After thorough discussions between OMB and HHS, we agreed to propose that these costs be offset with Title XX funds. some may not like this offset (Senator Chafee, for example) and we need to check with Representative Obey before proceeding further with it. At the same time, Jack Lew is checking again to see if other offsets may be available. We believe that we can sell the Roth compromise with the Medicaid and TPR changes (plus some other small policy and technical changes) to the House Republicans and therefore achieve final legislation that can pass both houses by an overwhelming vote. To do so, however, will require that the Administration and the Senate Leadership press Senator Roth to accept our changes and move a little further toward the Chafee/Rockefeller/Craig camp. 11-03-1997 12:01PM FROM MARY BOURDETTE 96905750 P.3 Talking Points for Conversation with Majority Leader Lott The President shares with Senator Lott the strong desire to move adoption legislation through Congress this year. The enactment of bipartisan adoption legislation is a key Administration priority. While there has been significant delay on this legislation in the Senate, we are pleased that Senator Roth met with Senators Chafee and Craig last week. After an initial impasse, we understand that Senator Roth offered a possible compromise. We understand the Roth compromise includes some of the provisions supported by the Administration as well as some of the provisions supported by the Chafee/Craig coalition. It certainly does not go as far as the Chafee/Craig group had hoped, but it cuts down on the cost significantly by removing the delinking provisions. It also does not include several changes sought by other Democrats. The Administration could support this compromise as long as it included, at a minimum, several small but very important items, including: Small increase in funding for Family Preservation (approximately $60 million over three years) Medicaid coverage for all "special needs" adopted children (approximately $30-40 million over five years) House provisions on the termination of parental rights (especially the House provision prohibiting the termination of parental rights if services have not been provided). Provisions removing geographic barriers to adoption. We would offset the approximate $100 million cost of the bill over five years with funds from the Title XX program. (Need to do some checking before making this public.) This would take the controversial cost allocation issue off the table with respect to the adoption legislation. If Senator Roth could be persuaded to support these provisions, we will work with you to develop a quick bipartisan consensus on the bill. If you can do so, we believe we can persuade other Democratic Senators to drop their concerns and gain the support of the House sponsors as well. 11-03-1997 12:00PM FROM MARY BOURDETTE 96905750 P.2 Adoption Legislation Background: The Administration as well as the House and Senate Leadership are anxious to get bipartisan adoption legislation passed and signed this year. The House passed its bill by an overwhelming margin in the Spring and Senator Lott had wanted to bring the House bill to the Senate floor. Unfortunately, adoption legislation has been held up in the Senate for many months because various parties (including the Administration and Senator Roth) have had problems with the costly delinking provisions in the package put together by Senators Chafee, Rockefeller, Craig and others as well as the cost allocation issue used to offset the $800 million to $2.3 billion costs of the bill. Last week, Senators Chafee and Craig met with Senator Roth. While the meeting initially led to an impasse (with Chafee insisting that the final bill include his delinking item and Roth insisting that delinking be dropped), the Roth staff have now floated a compromise bill. We have not seen the compromise language as yet, but understand it does include several items the Administration strongly supports (including our Adoption 2002 recommendations and the very important reauthorization of the family preservation program). However, we understand that it does not include several other items that we feel are very important to final legislation. These include Medicaid coverage for all "special needs" children (at a cost of approximately $30 to $40 million over five years) and several other changes in provisions dealing with the termination of parental rights (TPR) The total cost of legislation that includes these Administration supported items will be approximately $100 million over five years. After thorough discussions between OMB and HHS, we agreed to propose that these costs be offset with Title XX funds. Some may not like this offset (Senator Chafee, for example) and we need to check with Representative Obey before proceeding further with it. At the same time, Jack Lew is checking again to see if other offsets may be available. We believe that we can sell the Roth compromise with the Medicaid and TPR changes (plus some other small policy and technical changes) to the House Republicans and therefore achieve final legislation that can pass both houses by an overwhelming vote. To do so, however, will require that the Administration and the Senate Leadership press Senator Roth to accept our changes and move a little further toward the Chafee/Rockefeller/Craig camp. 11-03-1997 12:01PM FROM MARY BOURDETTE 96905750 P.3 Talking Points for Conversation with Majority Leader Lott The President shares with Senator Lott the strong desire to move adoption legislation through Congress this year. The enactment of bipartisan adoption legislation is a key Administration priority. While there has been significant delay on this legislation in the Senate, we are pleased that Senator Roth met with Senators Chafee and Craig last week. After an initial impasse, we understand that Senator Roth offered a possible compromise. We understand the Roth compromise includes some of the provisions supported by the Administration as well as some of the provisions supported by the Chafee/Craig coalition. It certainly does not go as far as the Chafee/Craig group had hoped, but it cuts down on the cost significantly by removing the delinking provisions. It also does not include several changes sought by other Democrats. The Administration could support this compromise as long as it included, at a minimum, several small but very important items, including: Small increase in funding for Family Preservation (approximately $60 million over three years) Medicaid coverage for all "special needs" adopted children (approximately $30-40 million over five years) House provisions on the termination of parental rights (especially the House provision prohibiting the termination of parental rights if services have not been provided). Provisions removing geographic barriers to adoption. We would offset the approximate $100 million cost of the bill over five years with funds from the Title XX program. (Need to do some checking before making this public.) This would take the controversial cost allocation issue off the table with respect to the adoption legislation. If Senator Roth could be persuaded to support these provisions, we will work with you to develop a quick bipartisan consensus on the bill. If you can do so, we believe we can persuade other Democratic Senators to drop their concerns and gain the support of the House sponsors as well. 11-03-1997 12:00PM FROM MARY BOURDETTE 96905750 P.2 Adoption Legislation Background: The Administration as well as the House and Senate Leadership are anxious to get bipartisan adoption legislation passed and signed this year. The House passed its bill by an overwhelming margin in the Spring and Senator Lott had wanted to bring the House bill to the Senate floor. Unfortunately, adoption legislation has been held up in the Senate for many months because various parties (including the Administration and Senator Roth) have had problems with the costly delinking provisions in the package put together by Senators Chafee, Rockefeller, Craig and others as well as the cost allocation issue used to offset the $800 million to $2.3 billion costs of the bill. Last week, Senators Chafee and Craig met with Senator Roth. While the meeting initially led to an impasse (with Chafee insisting that the final bill include his delinking item and Roth insisting that delinking be dropped), the Roth staff have now floated a compromise bill. We have not seen the compromise language as yet, but understand it does include several items the Administration strongly supports (including our Adoption 2002 recommendations and the very important reauthorization of the family preservation program). However, we understand that it does not include several other items that we feel are very important to final legislation. These include Medicaid coverage for all "special needs" children (at a cost of approximately $30 to $40 million over five years) and several other changes in provisions dealing with the termination of parental rights (TPR) The total cost of legislation that includes these Administration supported items will be approximately $100 million over five years. After thorough discussions between OMB and HHS, we agreed to propose that these costs be offset with Title XX funds. Some may not like this offset (Senator Chafee, for example) and we need to check with Representative Obey before proceeding further with it. At the same time, Jack Lew is checking again to see if other offsets may be available. We believe that we can sell the Roth compromise with the Medicaid and TPR changes (plus some other small policy and technical changes) to the House Republicans and therefore achieve final legislation that can pass both houses by an overwhelming vote. To do so, however, will require that the Administration and the Senate Leadership press Senator Roth to accept our changes and move a little further toward the Chafee/Rockefeller/Craig camp. 11-03-1997 12:01PM FROM MARY BOURDETTE 96905750 P.3 Talking Points for Conversation with Majority Leader Lott The President shares with Senator Lott the strong desire to move adoption legislation through Congress this year. The enactment of bipartisan adoption legislation is a key Administration priority. While there has been significant delay on this legislation in the Senate, we are pleased that Senator Roth met with Senators Chafee and Craig last week. After an initial impasse, we understand that Senator Roth offered a possible compromise. We understand the Roth compromise includes some of the provisions supported by the Administration as well as some of the provisions supported by the Chafee/Craig coalition. It certainly does not go as far as the Chafee/Craig group had hoped, but it cuts down on the cost significantly by removing the delinking provisions. It also does not include several changes sought by other Democrats. The Administration could support this compromise as long as it included, at a minimum, several small but very important items, including: Small increase in funding for Family Preservation (approximately $60 million over three years). Medicaid coverage for all "special needs" adopted children (approximately $30-40 million over five years) House provisions on the termination of parental rights (especially the House provision prohibiting the termination of parental rights if services have not been provided). Provisions removing geographic barriers to adoption. We would offset the approximate $100 million cost of the bill over five years with funds from the Title XX program. (Need to do some checking before making this public.) This would take the controversial cost allocation issue off the table with respect to the adoption legislation. If Senator Roth could be persuaded to support these provisions, we will work with you to develop a quick bipartisan consensus on the bill. If you can do so, we believe we can persuade other Democratic Senators to drop their concerns and gain the support of the House sponsors as well. P.2 11-03-1997 12:00PM FROM MARY BOURDETTE 96905750 Adoption Legislation Background: The Administration as well as the House and Senate Leadership are anxious to get bipartisan adoption legislation passed and signed this year. The House passed its bill by an overwhelming margin in the Spring and Senator Lott had wanted to bring the House bill to the Senate floor. Unfortunately, adoption legislation has been held up in the Senate for many months because various parties (including the Administration and Senator Roth) have had problems with the costly delinking provisions in the package put together by Senators Chafee, Rockefeller, Craig and others as well as the cost allocation issue used to offset the $800 million to $2.3 billion costs of the bill. Last week, Senators Chafee and Craig met with Senator Roth. While the meeting initially led to an impasse (with Chafee insisting that the final bill include his delinking item and Roth insisting that delinking be dropped), the Roth staff have now floated a compromise bill. We have not seen the compromise language as yet, but understand it does include several items the Administration strongly supports (including our Adoption 2002 recommendations and the very important reauthorization of the family preservation program) However, we understand that it does not include several other items that we feel are very important to final legislation. These include Medicaid coverage for all "special needs" children (at a cost of approximately $30 to $40 million over five years) and several other changes in provisions dealing with the termination of parental rights (TPR) The total cost of legislation that includes these Administration supported items will be approximately $100 million over five years. After thorough discussions between OMB and HHS, we agreed to propose that these costs be offset with Title XX funds. Some may not like this offset (Senator Chafee, for example) and we need to check with Representative Obey before proceeding further with it. At the same time, Jack Lew is checking again to see if other offsets may be available. We believe that we can sell the Roth compromise with the Medicaid and TPR changes (plus some other small policy and technical changes) to the House Republicans and therefore achieve final legislation that can pass both houses by an overwhelming vote. To do so, however, will require that the Administration and the Senate Leadership press Senator Roth to accept our changes and move a little further toward the Chafee/Rockefeller/Craig camp. 11-03-1997 12:01PM FROM MARY BOURDETTE 96905750 P.3 Talking Points for Conversation with Majority Leader Lott The President shares with Senator Lott the strong desire to move adoption legislation through Congress this year. The enactment of bipartisan adoption legislation is a key Administration priority. While there has been significant delay on this legislation in the Senate, we are pleased that Senator Roth met with Senators Chafee and Craig last week. After an initial impasse, we understand that Senator Roth offered a possible compromise. We understand the Roth compromise includes some of the provisions supported by the Administration as well as some of the provisions supported by the Chafee/Craig coalition. It certainly does not go as far as the Chafee/Craig group had hoped, but it cuts down on the cost significantly by removing the delinking provisions. It also does not include several changes sought by other Democrats. The Administration could support this compromise as long as it included, at a minimum, several small but very important items, including: Small increase in funding for Family Preservation (approximately $60 million over three years) Medicaid coverage for all "special needs" adopted children (approximately $30-40 million over five years) House provisions on the termination of parental rights (especially the House provision prohibiting the termination of parental rights if services have not been provided). Provisions removing geographic barriers to adoption. We would offset the approximate $100 million cost of the bill over five years with funds from the Title XX program. (Need to do some checking before making this public.) This would take the controversial cost allocation issue off the table with respect to the adoption legislation. If Senator Roth could be persuaded to support these provisions, we will work with you to develop a quick bipartisan consensus on the bill. If you can do so, we believe we can persuade other Democratic Senators to drop their concerns and gain the support of the House sponsors as well. 11-03-1997 11:29AM FROM MARY BOURDETTE 96905750 Mention House will-toverwheiming w\ wantednat Lott to P.2 passupport. to Adoption Legislation had bring Floor Background: The Administration as well as the House and Senate Leadership are anxious to get adoption bipartisan legislation passed and signed this year. Unfortunately, the legislation has been held up for many months because various parties (including the Administration and Senator Roth) have had problems with the costly delinking provisions in the package put together by Senators Chafee, Rockefeller, Craig and others as well as the cost allocation issue used to offset the $800 million to $2.3 billion costs of the bill. ( that would provide provide full fed funding states For all to Ster Last week, Senators Chafee and Craig met with Senator Roth. care, instead of While the meeting initially led to an impasse (with Chafee Current insisting that the final bill include his delinking item and Roth Fed- state insisting that delinking be dropped), the Roth staff have now floated a compromise. We have not seen the compromise language match) as yet, but understand it does include several items the Administration strongly supports (including our Adoption 2002 recommendations and the very important reauthorization of the family preservation program). However, we understand that it does not include several other items that we feel are very important to final legislation. These include Medicaid coverage for all "special needs" children (at a cost of approximately $35 Bullet million over five years) and several other changes in provisions and spell dealing with the termination of parental rights (TPR) out The total cost of legislation that includes these Administration supported items will be approximately $100 million over five years. After thorough discussions between OMB and HHS, we agreed to propose that these costs be offset with Title XX funds. Some may not like this offset (Senator Chafee doesn't like it for example) and we need to check with Representative Obey before proceeding further with it. At the same time, we will check again with Jack Lew to see if other offsets may be available. & is checking We believe that we can sell the Roth compromise with the Medicaid and TPR provisions (plus some other more technical changes) to the House Republicans and therefore achieve final legislation that can pass both houses by an overwhelming vote. To do 80, Strategy however, will require that the Administration and the Senate is precons. Leadership press Senator Roth to move a little further toward the Chafee/Rockefeller/Craig camp. mill 11-03-1997 : : 30AM FROM MARY BOURDETTE 96905750 P.3 Talking Points for Conversation with Majority Leader Lott Presiden The Administration shares with Senator Lott the strong desire to move adoption legislation through Congress this year. The enactment of bipartisan adoption legislation is a key Administration priority. While there has been significant delay on this legislation in the Senate, we are pleased that Senator Roth met with Senators Chafee and Craig last week. After an initial impasse, we understand that Senator Roth offered a possible compromise. We understand the Roth compromise includes some of the provisions supported by the Administration as well as some of the provisions supported by the Chafee/Craig coalition. It certainly does not go as far as the Chafee/Craig group had hoped, but it cuts down on the cost significantly by removing the delinking provisions. It also does not include several provisions sought by other Democrats. The Administration could support this compromise as long as it included, at a minimum, several other small but important items, including: Small increase in funding for Family Preservation (approximately $60 million over three years) Medicaid coverage for all "special needs" adopted children (approximately $40 million over five years) House provisions prohibiting the termination of parental rights if services have not been provided and other changes to move the termination provisions closer to House bill. touse provis some Adopting House provisions on TPR particularly Provisions removing geographic barriers to adoption. provision. We would offset the approximate $100 million cost of the bill over five years with funds from the Title XX program. (Need to do some checking before making this public.) This BOLD would take the controversial cost allocation issue off the table with respect to the adoption legislation. If Senator Roth could be persuaded to support these provisions, we will work with you to develop a quick bipartisan consensus on the bill. If you can do so, we believe we can persuade other Democratic Senators to drop their concerns and gain the support of the House sponsors as well. 10/30/1997 18:14 2023320935 NCFA PAGE 01 MM National Council For Adoption "Help Build Happy Families" DETERMINED TO BE AN ADMINISTRATIVE MARKING CONTIDENTIAL INITIALS: @ DATE: 04/06/15 Oct. 30. 1997 TO: Melanne Verveer, Office of the First Lady, by fax 456-7805 CC Katy Dutton ulie Mason FROM: Bill Pierce Biu SUBJECT: Attached communication regarding The White House One of the adoption agencies we work with but which is not a member faxed the attached material to us today after calling and giving us an alert to its existence. It came from an agency which has an executive director who is quite sophisticated in terms of public policy matters, who has been following the discussions around foster care and adoption reform closely and who is of the opinion that the attached broadside is inaccurate and unfair. In the interest of full disclosure, Maureen Hogan, who is AASK's Executive Director, has engaged in public criticism of our organization, of me and of former staff members of our organization. Therefore we are not entirely objective when it comes to this group's claims and statements. We have strong, ongoing policy differences with this individual. The broadside is inaccurate in several respects. First, the Camp-Kennelly bill, although revenue neutral, is far more substantial than M.s. Hogan claims. That bill, which passed the House 416-5, was a bipartisan effort. Second the reason that this consensus bill did not sail through the Senate is that forces who wanted a substantially different bill, with new revenue costs estimated at $2.3 billion, insisted on a fresh Senate bill. Those involved were Democrats and Republicans, but the lead players were Senators Chafee and Rockefeller. Third, 1 working group of Senate staffers did develop an alternative bill. Those staffers included individuals from several offices, including the offices of the Senators who ultimately co-sponsored S. 1195, plus Sen. Grassley. Since NCFA was seen as supportive of Camp-Kennelly, we were not privy to those discussions and do not know whether any White House people were involved or not. Fourth, we and a group of others - some 23 in all, representing a wide ideological and political range - strongly objected to portions of S. 1195. For this reason, among others, S. 1195 was stalled, but it was the $2.3 billion "offset" that was the major problem 1930 Seventeenth Street, N.W. Washington, D.C. 20009-6207 202-328-1200 P. of 3 FAX 202-332-0935 10/30/1997 18:14 2023320935 NCFA PAGE 02 identified by Sen. Roth. The "offset" was also termed an unfunded state mandate and opposed by several of the state organizations. Fifth, yesterday backers of S. 1195 met with Sen. Roth and Sen. Chafee insisted on major spending and refused to accept an alternative package proposed by Sen. Roth. There is, as of yesterday, a stalemate. S. 1195 backers are adamant about substantial changes and spending; Sen. Roth and others, including most of the House, want something different. To our knowledge, and we have been tracking this debate very closely for several month there has been no White House involvement aimed at the Senate bill. It is, therefore, both inaccurate and unfair to level a broadside at the White House, based on what we know of the actions and discussions that have taken place. If, however, the real message of the AASK attack is that those who are concerned about the $2.3 billion in new spending or the unfunded mandate are stopping the Senate bill, then there are several groups who could be properly identified in that camp as moving to "block" S. 1195. An objective analysis of the groups would reveal that there are probably more "conservative" or "Republican" groups involved in the attempt to "block" S, 1195 as originally introduced than Democrats. In other words, the broadside is a bum rap. My suggestion: National Adoption Month is coming up. Consider having the President and the First Lady join in a Saturday radio address on Nov. 1 talking about all the positive adoption measures that have passed or are in the works. In all likelihood, if Sen. Roth does not blink in the current standoff, and Sen. Chafee insists on major new spending, then there may be people who can fairly be described as having stopped adoption and foster care reform, but the main person, so far as we can determine, who will have done so is a Republican Senator from Rhode Island. If Sen. Chafee blinks, then there is no reason that a decent bill cannot be sent to the President for his signature during November, National Adoption Month. If there is such a bill-signing, it would be a wonderful opportunity to open The White House not just to the key Members who were responsible but the broader adoption community and some adoptive families. Sincelwe are not aware of what, if anything, the White House has done in respect to S. 1195, we are not in a position to defend the Administration beyond the sort of approach that took in this memo. Feel free to share this memo selectively within The White House. WP/ns mv 103097 2 10/30/1997 18:14 2023320935 NCFA PAGE 03 WHITE HOUSE MOVES IV DEVOR ADOPTION BILL To: Adoption Advocates From: AASK/America Date: October 29, 1997 Re: Urgent Legislative Alert AASK has learned that the White House is urging defeat of provision in a Senate bill to provide increased subsidies to adoptive families with special needs, the so-called de-linking provision. Since the White House has not participated in the Senate consensus process on adoption their destructive intervention at this stage threatens to prevent Senate Republicans like Chafee (R-RI), Grassley (R-10), Craig (R-ID) and Dewine (R-OH) from protecting the interests of adoptive families. With active opposition from the White House it has become impossible for Senate Republicans, especially Sen. Craig who holds a leadership position, to build support for de-linking among fiscal conservatives on both sides of the aisle. The White House introduced its own proposal last December. Unfortunately, however, that package merely creates several new study commissions and offers peanuts to encourage the States to increase adoptions from less than 5% of children in foster care to less than 10% of children in foster care. The White House plan would only reach half of the children who are currently legally free to be adopted. The President has deliberately avoided correcting the fundamental flaws in the current system. Now he actively seeks to obstruct the efforts of those who would make meaningful change. Only measures championed by Senate Republicans and a handful of Democrats addresses real world needs with real world solutions. Any suggestion that Senate leadership has not been working to protect your interests is misleading. The Senate's plan to provide you with additional resources has been seriously undermined by active opposition from the White House. Action Items! Call the White House at (202) 456-1414. Demand that they support stronger measures in the senate to protect families who adopt children with special needs! Adopt a Special Kid 226 4th Street N.E., Washington. D.C. 20002 (202) 388-3888 Fax (202) 544-9034 10-16-1997 2:19PM FROM MARY BOURDETTE 96905750 P.1 HUMAN SERVICES. ,USA DATE: 10/16/97 & HEALTH U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES OF 200 INDEPENDENCE AVE., SW DEPARTMENT WASHINGTON, D.C. 20201 PHONE: (202) 690-6311 FAX: (202) 690-8425 OFFICE OF THE ASSISTANT SECRETARY FOR LEGISLATION HUMAN SERVICES LEGISLATION ROOM 413 H HUMPHREY BUILDING FROM: TO : Elena Kagan l [XX] MARY M. BOURDETTE Jen Klein Deputy Asst. Sec. OFFICE : WH/DPC ROOM NO : PHONE NO : FAX NO : TOTAL PAGES Elena -fax -456-2878 INCLUDING COVER) : 3 Jen-fix- - - 456-9412 REMARKS: Here's talking points for the Chafee/Rockefeller meeting at 5:15 in Room 505 Dirksen. I'm giving to Rich too. We need to figure out a little more what we say about NO on cost allocation. Maybe we can send hand signals about our speaking roles Anyway, I'll be here until the meeting. 10-16-1997 2: 19PM FROM MARY BOURDETTE 96905750 P.2 Targeting M spective ge Adoption - Talking Pts - re Chafee/Rockefeller Praise their leadership/expertise/hard work We're extremely grateful to Laurie and Barbara for all their hard work on this. The President, First Lady and Secretary strongly committed to our Adoption 2002 goals; aware of key role L/B and bosses played in bringing the bipartisan group of Senators together, and keeping their eye on the important issues Strong desire to continue working together to get legislation passed and signed this year goal we all share - know the downsides of waiting till next year Many aspects of initial C/R bill and new PASS bill that we support - especially those elements of Adoption 2002. i.e. bonuses, expedited permanency planning, reasonable efforts clarification, strengthening TPR, innovation grants Plus, strongly support the reauthorization of family pres. Also support the steps PASS take to address the specific problems that have been identified with the current IVE adoption assistance program ensuring Medicaid for all special needs children and maintaining eligibility for special needs children from disrupted adoptions. Thus, in addition to the bonuses and procedural changes regarding reasonable efforts, TPR, permanency that we've discussed with you before, we're prepared to offer our support for the following spending elements in PASS: 1. Medicaid for all special needs children approximately $30 million over 5 2. Continued IVE eligibility for disrupted adoptions approximately $5 million over 5 3. Reauthorization of family preservation at increased level in your bill approx $100 million over 5 While we do not support the use of cost allocation as an offset for these measures, we're prepared to recommend alternatives offset for the approximately $150 m cost of these items. Know the overall delinking proposal is important to you, but we cannot support it for several reasons: (1) we do not believe that the policy will lead to more children being adopted -- instead, we view it as a cost shift from the states to the feds. (2) we believe the cost is prohibitive in a time of very P.3 10-16-1997 2:20PM FROM MARY BOURDETTE 96905750 limited resources and (as you know, we have been unable to get the $21 million we requested for adoption in the Labor/HHS bill) (3) we do not agree that we should take over what has been a state responsibility (4) on balance and in light of other children's and domestic needs, this is not a priority we can support. We think our offer is a very strong package, politically and policy-wise and one we can sell to the House as well. We have not discussed this package with anyone else at this stage. Wanted first to discuss it with you and figure out the most useful strategies for getting this done quickly. Given where we are, se see two strategic options. (1) A Conference Strategy This is the package we would fight for in conference - and would be as supportive as possible for Senate approval of your larger package We'd be prepared to send very positive letter to Senate on PASS, outlining key areas we support and some general expression of concern about cost issues. We'd help you round up votes for your bill among Democrats and Republicans if possible. (2) Senate strategy Make these changes so we could fully support on Senate floor. Hope we can come to some resolution to next steps and work cooperatively to" get to signing ceremony 10-10-1997 3: 35PM FROM MARY BOURDETTE 96905750 P. 1 HUMAN SERVICES USA DATE:10/10/97 & HEALTH U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES OF 200 INDEPENDENCE AVE., SW DEPARTMENT WASHINGTON, D.C. 20201 PHONE: (202) 690-6311 FAX: (202) 690-8425 OFFICE OF THE ASSISTANT SECRETARY FOR LEGISLATION HUMAN SERVICES LEGISLATION ROOM 413 H HUMPHREY BUILDING FROM: TO : Jen Klein [ X] MARY M. BOURDETTE Deputy Asst. Sec. OFFICE : White House ROOM NO : PHONE NO : FAX NO : 456-9412 TOTAL PAGES INCLUDING COVER) : 2 REMARKS: In case you get a chance to see this before Tuesday -- an update. Further, I talked to Rich T - which lead to the conference call scheduled for Wed. AM with you and Elena and Rich and me. Best of all worlds is that the four of us would be able to go over to Barbara ₽ and Laurie R on Wednesday PM and lay out where we are for them -- so hope we can have all the package wrapped up and be ready to discuss this in our call. See you soon. 10-10-1997 3:36PM FROM MARY BOURDETTE 96905750 P.2 To : Carol W [email protected]@ACF.WDC, Olivia Golden@[email protected], John [email protected]@OS.DC Cc : Madeline Mocko@[email protected], Cheryl [email protected]@OS.DC, Dan [email protected]@ACF.WDC, Barbara Clark@[email protected], William [email protected]@OS.DC Bcc : From : Mary Bourdette@[email protected] Subject : adoption Date : Friday, October 10, 1997 at 3:56:48 pm EDT Attach : Certify : N Encrypt : N An afternoon update on adoption Sen. Rockefeller called the Secretary this morning to urge her to support a "new" Senate deal on the adoption bill. She listened and said she'd get back to him. The new part is that apparently Senators Chafee and Lugar got together and made an agreement about the cost allocation offset that both had been vying for to offset the spending in their bills (Lugar has the ag research bill that was dependent upon cost allocation for offsets). They agreed to a cost allocation scheme that would produce about $1.6 b over 5 in savings and that they would divide these up -- $800 million for the adoption bill, $800 million for the ag research bill. As you, the admin doesn't support the use of any cost allocation offset at this time. Barbara Pryor in Rockefeller's office says they will now trim down the bill to meet these savings, by doing delinking prospectively only and family preservation. They still have a number of other issues to deal with - re how you use a single revenue source for two different pieces of legislation. While this adds a new dimension to our strategy, I don't think it changes anything too much and it makes it all the more urgent that we have our own position in order as soon as possible, so that we can get back to Rockefeller and Chafee (Sec promised to get back to Rock on tuesday with something). I know everyone has lots to do - but any chance we can wrap up our thoughts on package by cob tuesday -- especially re the offsets. From my perspctive, and despite my liberal leanings, I'd go with the Title XX offset -- for the simplistic reason that all the people we deal with on adoption (both on hill and us) are familiar with this and at least we understand the players and the politics. One could also argue that XX has become the piggy bank for lots of things and better that it funds things that are for needy families and a priority for us. I'm anxious to know your views on this though - and could be talked out of this view. Thanks gang and have a nice weekend. 3 1 TITLE I-REASONABLE EFFORTS 2 AND SAFETY REQUIREMENTS 3 FOR FOSTER CARE AND 4 ADOPTION PLACEMENTS 5 SEC. 101. CLARIFICATION OF THE REASONABLE EFFORTS 6 REQUIREMENT. 7 Section 471(a)(15) of the Social Security Act (42 8 U.S.C. 671(a)(15)) is amended to read as follows: 9 ((15) provides that- 10 "(A) in determining reasonable efforts, as 11 described in this section, the child's health and 12 safety shall be the paramount concern; 13 "(B) reasonable efforts shall be made to 14 preserve and reunify families when possible- 15 "(i) prior to the placement of a child 16 in foster care, to prevent or eliminate the 17 need for removing the child from the 18 child's home when the child can be cared 19 for at home without endangering the 20 child's health or safety; or 21 "(ii) to make it possible for the child 22 to safely return to the child's home; 23 "(C) reasonable efforts shall not be re- 24 quired on behalf of any parent- .S 1195 IS 4 1 "(i) if a court of competent jurisdic- 2 tion has made a determination that the 3 parent has- 4 "(I) committed murder of an- 5 other child of the parent; 6 "(II) committed voluntary man- 7 slaughter of another child of the par- 8 ent; 9 ((III) aided or abetted, at- 10 tempted, conspired, or solicited to 11 commit such murder or voluntary 12 manslaughter; or 13 "(IV) committed a felony assault 14 that results in serious bodily injury to 15 the child or another child of the par- 16 ent; 17 "(ii) if a court of competent jurisdic- 18 tion determines that returning the child to 19 the home of the parent would pose a seri- 20 ous risk to the child's health or safety (in- 21 cluding but not limited to cases of aban- 22 donment, torture, chronic physical abuse, 23 sexual abuse, or a previous involuntary ter- 24 mination of parental rights with respect to 25 a sibling of the child); or .S 1195 IS 5 1 "(iii) if the State, through legislation, 2 has specified cases in which the State is 3 not required to make reasonable efforts be- 4 cause of serious circumstances that endan- 5 ger a child's health or safety; 6 "(D) if reasonable efforts to preserve or re- 7 unify a family are not made in accordance with 8 subparagraph (C), and placement with either 9 parent would pose a serious risk to the child's 10 health or safety, or in any case in which a 11 State's goal for the child is adoption or place- 12 ment in another permanent home, reasonable 13 efforts shall be made to place the child in a 14 timely manner with an adoptive family, with a 15 qualified relative or legal guardian, or in an- 16 other planned permanent living arrangement, 17 and to complete whatever steps are necessary to 18 finalize the adoption or legal guardianship; and 19 "(E) reasonable efforts of the type de- 20 scribed in subparagraph (D) may be made con- 21 currently with reasonable efforts of the type de- 22 scribed in subparagraph (B);" .S 1195 IS 7 1 (I) by inserting "the safety of the 2 child," after "determine"; and 3 (II) by inserting "and safely 4 maintained in" after "returned to". 5 SEC. 103. MULTIDISCIPLINARY/MULTIAGENCY CHILD 6 DEATH REVIEW TEAMS. 7 (a) STATE CHILD DEATH REVIEW TEAMS.-Section 8 471 of the Social Security Act (42 U.S.C. 671) is amended 9 by adding at the end the following: 10 "(c)(1) In order to investigate and prevent child 11 death from fatal abuse and neglect, not later than 2 years 12 after the date of the enactment of this subsection, a State, 13 in order to be eligible for payments under this part, shall 14 submit to the Secretary a certification that the State has 15 established and is maintaining, in accordance with applica- 16 ble confidentiality laws, a State child death review team, 17 and if necessary in order to cover all counties in the State, 18 child death review teams on the regional or local level, that at a minimum, 19 shall review child deaths, including deaths in which- , 20 "(A) there is a record of a prior report of child 21 abuse or neglect or there is reason to suspect that 22 the child death was caused by, or related to, child 23 abuse or neglect; or .S 1195 IS 8 1 "(B) the child who died was a ward of the 2 State or was otherwise known to the State or local 3 child welfare service agency. 4 "(2) A child death review team established in accord- 5 ance with this subsection should have a membership that 6 will present a range of viewpoints that are independent 7 from any specific agency, and shall include representatives 8 from, at a minimum, specific fields of expertise, such as 9 law enforcement, health, mental health, and substance develo child pment, social work, 10 abuse, and from the community. 11 "(3) A State child death review team shall at a minimum 12 "(A) provide support to a regional or local child 13 death review team; 14 "(B) make public an annual summary of case 15 findings; 16 "(C) provide recommendations for systemwide 17 improvements in services to investigate and prevent 18 future fatal abuse and neglect; and 19 "(D) if the State child death review team covers 20 all counties in the State on its own, carry out the 21 duties of a regional or local child death review team 22 described in paragraph (4). 23 "(4) A regional or local child death review team 24 shall- 25 "(A) conduct individual case reviews; .S 1195 IS 9 1 "(B) recommend followup procedures for child 2 death cases; and 3 "(C) suggest and assist with system improve- 4 ments in services to investigate and prevent future 5 fatal abuse and neglect." 6 (b) FEDERAL CHILD DEATH REVIEW TEAM.-Sec- 7 tion 471 of the Social Security Act (42 U.S.C. 671), as 8 amended by subsection (a), is amended by adding at the 9 end the following: 10 "(d)(1) The Secretary shall establish a Federal child 11 death review team that shall consist of at least the follow- 12 ing: 13 "(A) Representatives of the following Federal 14 agencies who have expertise in the prevention or 15 treatment of child abuse and neglect: 16 "(i) Department of Health and Human 17 Services. 18 "(ii) Department of Justice. 19 "(iii) Bureau of Indian Affairs. 20 "(iv) Department of Defense. 21 "(v) Bureau of the Census. 22 "(B) Representatives of national child-serving 23 organizations who have expertise in the prevention 24 or treatment of child abuse and neglect and that, at .S 1195 IS 10 1 a minimum, represent the health, child welfare, so- 2 cial services, and law enforcement fields. 3 "(2) The Federal child death review team established 4 under this subsection shall- INSERT 5 "(A) review/reports of child deaths on military 6 installations and other Federal lands, and coordinate 7 with Indian tribal organizations in the review of 8 child deaths on Indian reservations; 9 "(B) upon request, provide guidance and tech- 10 nical assistance to States and localities seeking to INSERT 11 initiate or improve child death review teams/and to 12 prevent child fatalities; and 13 "(C) develop recommendations on related policy 14 and procedural issues for Congress, relevant Federal 15 agencies, and States and localities for the purpose of 16 preventing child fatalities." 17 SEC. 104. STATES REQUIRED TO INITIATE OR JOIN PRO- 18 CEEDINGS TO TERMINATE PARENTAL 19 RIGHTS FOR CERTAIN CHILDREN IN FOSTER 20 CARE. 21 (a) REQUIREMENT FOR PROCEEDINGS.-Section 22 475(5) of the Social Security Act (42 U.S.C. 675(5)) is 23 amended— 24 (1) by striking "and" at the end of subpara- 25 graph (C); .S 1195 IS PROPOSED AMENDMENTS TO S. 1195 INSERT on page 10, at line 5: and analyze relevant data, annual summaries of case findings and recommendations prepared by the State child death review teams, and aggregate information on child deaths occurring on military installations, Indian reservations and other Federal lands INSERT on page 10, at line 11: or to strengthen child death review team functioning, including data collection and recommendation formulation activities, in order 11 1 (2) by striking the period at the end of sub- 2 paragraph (D) and inserting "; and"; and 3 (3) by adding at the end the following: 4 "(E) in the case of a child who has been 5 in foster care under the responsibility of the 6 State for 12 of the most recent 18 months, or 7 for a lifetime total of 24 months, or, if a court 8 of competent jurisdiction has determined an in- 9 fant to have been abandoned (as defined under 10 State law), or made a determination that the 11 parent has committed murder of another child 12 of such parent, committed voluntary man- 13 slaughter of another child of such parent, aided 14 or abetted, attempted, conspired, or solicited to 15 commit such murder or voluntary man- 16 slaughter, or committed a felony assault that 17 results in serious bodily injury to the surviving 18 child or to another child of such parent, the 19 State shall file a petition to terminate the pa- 20 rental rights of the child's parents (or, if such 21 a petition has been filed by another party, seek 22 to be joined as a party to the petition), and, 23 concurrently, to identify, recruit, process, and 24 approve a qualified family for an adoption, un- 25 less .S 1195 IS 12 1 "(i) at the option of the State, the 2 child is being cared for by a relative; or 3 "(ii) a State court or State agency 4 has documented a compelling reason for 5 determining that filing such a petition 6 would not be in the best interests of the 7 child.". 8 (b) DETERMINATION OF BEGINNING OF FOSTER 9 CARE.-Section 475(5) of the Social Security Act (42 10 U.S.C. 675(5)), as amended by subsection (a), is amend- 11 ed- 12 (1) by striking "and" at the end of subpara- 13 graph (D); 14 (2) by striking the period at the end of sub- 15 paragraph (E) and inserting "; and"; and 16 (3) by adding at the end the following: 17 "(F) a child shall be considered to have en- 18 tered foster care on the latter of- 19 "(i) the first time the child is removed 20 from the home; or INSERT 21 "(ii) the date of the first judicial hear 22 ing on removal of the child from the 23 home.". 24 (c) ELIMINATION OF UNNECESSARY COURT 25 DELAYS.- .S 1195 IS PROPOSED AMENDMENTS TO S. 1195 INSERT on page 12, at line 21: order placing the child in non-emergency foster care subsequent to a finding of maltreatment 13 1 (1) ONE-YEAR STATUTE OF LIMITATIONS FOR 2 APPEALS OF ORDERS TERMINATING PARENTAL 3 RIGHTS.-Section 471(a) of the Social Security Act 4 (42 U.S.C. 671(a)), as amended by section 5591 (b) 5 of the Balanced Budget Act of 1997, is amended- 6 (A) by striking "and" at the end of para- 7 graph (18); 8 (B) by striking the period at the end of 9 paragraph (19) and inserting "; and"; and 10 (C) by adding at the end the following: 11 "(20) provides that an order terminating paren- 12 tal rights shall only be appealable during the 1-year 13 period that begins on the date the order is issued.". 14 (2) ONE-YEAR STATUTE OF LIMITATIONS FOR 15 APPEALS OF ORDERS OF REMOVAL.-Section 471(a) 16 of the Social Security Act (42 U.S.C. 671(a)), as 17 amended by subsection (a), is amended— 18 (A) in paragraph (19), by striking "and" 19 at the end; 20 (B) in paragraph (20), by striking the pe- 21 riod and inserting "; and"; and 22 (C) by adding at the end the following: 23 "(21) provides that a court-ordered removal of 24 a child shall only be appealable during the 1-year pe- 25 riod that begins on the date the order is issued. .S 1195 IS 14 1 (d) RULE OF CONSTRUCTION.-Nothing in part E of 2 title IV of the Social Security Act (42 U.S.C. 670 et seq.), 3 as amended by this Act, shall be construed as precluding 4 State courts or State agencies from initiating or finalizing 5 the termination of parental rights for reasons other than, 6 or for timelines earlier than, those specified in part E of 7 title IV of such Act, when such actions are determined 8 to be in the best interests of the child. 9 (e) EFFECTIVE DATES.- 10 (1) IN GENERAL.-Except as provided in para- 11 graphs (2) and (3), the amendments made by this 12 section shall apply to children entering foster care 13 under the responsibility of the State after the date 14 of enactment of this Act. 15 (2) TRANSITION RULE FOR CURRENT FOSTER 16 CARE CHILDREN.-Subject to paragraph (3), with 17 respect to any child in foster care under the respon- 18 sibility of the State on or before the date of enact- 19 ment of this Act, the amendments made by this sec- 20 tion shall not apply to such child until the date that 21 is 1 year after the date of enactment of this Act. 22 (3) DELAY PERMITTED IF STATE LEGISLATION 23 REQUIRED.-The provisions of section 501(b) shall 24 apply to the effective date of the amendments made 25 by this section. .S 1196 IS 16 1 custody or visitation orders" after "obliga- 2 tions,"; and 3 (B) in subparagraph (A)- 4 (i) by striking "or" at the end of 5 clause (ii); 6 (ii) by striking the comma at the end 7 of clause (iii) and inserting "; or"; and 8 (iii) by inserting after clause (iii) the 9 following: 10 "(iv) who has or may have parental 11 rights with respect to a child,"; and 12 (2) in subsection (c)— 13 (A) by striking the period at the end of 14 paragraph (3) and inserting "; and"; and 15 (B) by adding at the end the following: 16 "(4) a State agency that is administering a pro- 17 gram operated under a State plan under subpart 1 18 of part B, or a State plan approved under subpart 19 2 of part B or under part E.". 20 SEC. 107. CRIMINAL RECORDS CHECKS FOR PROSPECTIVE 21 FOSTER AND ADOPTIVE PARENTS AND 22 GROUP CARE STAFF. 23 Section 471(a) of the Social Security Act (42 U.S.C. 24 671(a)), as amended by section 104(c)(2), is amended— .S 1195 IS 17 1 (1) by striking "and" at the end of paragraph 2 (20); 3 (2) by striking the period at the end of para- 4 graph (21) and inserting "; and"; and 5 (3) by adding at the end the following: 6 "(22) provides procedures for criminal records 7 checks and checks of a State's child abuse registry 8 for any prospective foster parent or adoptive parent, 9 and any employee of a residential child-care institu- 10 tion before the foster parent or adoptive parent, or 11 the residential child-care institution may be finally 12 approved for placement of a child on whose behalf 13 foster care maintenance payments or adoption as- 14 sistance payments are to be made under the State 15 plan under this part, including procedures requiring 16 that- 17 "(A) in any case in which a criminal 18 record check reveals a criminal conviction for 19 child abuse or neglect, or spousal abuse, a 20 criminal conviction for crimes against children, 21 or a criminal conviction for a crime involving vi- 22 olence, including violent drug-related offenses, 23 rape, sexual or other physical assault, battery, 24 or homicide, approval shall not be granted, un- 25 less the individual provides substantial evidence .S 1195 IS 18 1 to local law enforcement officials and the State 2 child protection agency proving that there are 3 extraordinary circumstances which demonstrate 4 that approval should be granted; and 5 "(B) in any case in which a criminal 6 record check reveals a criminal conviction for a 7 felony or misdemeanor not involving violence, or 8 a check of any State child abuse registry indi- 9 cates that a substantiated report of abuse or 10 neglect exists, final approval may be granted 11 only after consideration of the nature of the of- 12 fense or incident, the length of time that has 13 elapsed since the commission of the offense or 14 the occurrence of the incident, the individual's 15 life experiences during the period since the com- 16 mission of the offense or the occurrence of the 17 incident, and any risk to the child.". 18 SEC. 108. DEVELOPMENT OF STATE GUIDELINES TO EN- 19 SURE SAFE, QUALITY CARE TO CHILDREN IN 20 OUT-OF-HOME PLACEMENTS. 21 Section 471(a)(10) of the Social Security Act (42 22 U.S.C. 671(a)(10)) is amended- 23 (1) by inserting "and guidelines" after "stand- 24 ards" each place it appears; and .S 1195 IS 19 1 (2) by inserting "ensuring quality services that 2 protect the safety and health of children in foster 3 care placements with nonprofit and for-profit agen- 4 cies," after "related to". 5 SEC. 109. DOCUMENTATION OF EFFORTS FOR ADOPTION 6 OR LOCATION OF A PERMANENT HOME. 7 Section 475 of the Social Security Act (42 U.S.C. 8 675) is amended- 9 (1) in paragraph (1)- 10 (A) in the last sentence- 11 (i) by striking "the case plan must 12 also include"; and 13 (ii) by redesignating such sentence as 14 subparagraph (D) and indenting appro- 15 priately; and 16 (B) by adding at the end, the following: 17 "(E) In the case of a child with respect to 18 whom the State's goal is adoption or placement 19 in another permanent home, documentation of 20 the steps taken by the agency to find an adop- 21 tive family or other permanent living arrange- 22 ment for the child, to place the child with an 23 adoptive family, legal guardian, or in another 24 planned permanent living arrangement, and to 25 finalize the adoption or legal guardianship. At .S 1195 IS 20 1 a minimum, such documentation shall include 2 child specific recruitment efforts such as the 3 use of State, regional, and national adoption ex- 4 changes including electronic exchange sys- 5 tems."; and 6 (2) in paragraph (5)(B), by inserting "(includ- 7 ing the requirement specified in paragraph (1)(E))" 8 after "case plan". 9 TITLE II-INCENTIVES FOR PRO- 10 VIDING PERMANENT FAMI- 11 LIES FOR CHILDREN 12 SEC. 201. ADOPTION INCENTIVE PAYMENTS. 13 Part E of title IV of the Social Security Act (42 } 14 U.S.C. 670-679) is amended by inserting after section 1 15 473 the following: 1 16 "SEC. 473A. ADOPTION INCENTIVE PAYMENTS. 1 17 "(a) GRANT AUTHORITY.-Subject to the availability 1 18 of such amounts as may be provided in advance in appro 1 T shall 19 priations Acts for this purpose, the Secretary may make 1 20 a grant to each State that is an incentive-eligible State 2 21 for a fiscal year in an amount equal to the adoption incen- 2 22 tive payment payable to the State for the fiscal year under 2 23 this section, which shall be payable in the immediately suc- 2. 24 ceeding fiscal year. 2. 25 .S 1195 IS 21 :lude 1 "(b) INCENTIVE-ELIGIBLE STATE.-A State is an in- the 2 centive-eligible State for a fiscal year if- 1 ex- 3 "(1) the State has a plan approved under this sys- 4 part for the fiscal year; 5 "(2) the number of foster child adoptions in the :lud- 6 State during the fiscal year exceeds the base number E))" 7 of foster child adoptions for the State for the fiscal 8 year; -O- 9 "(3) the State is in compliance with subsection 11- 10 (c) for the fiscal year; and 11 "(4) the fiscal year is any of fiscal years 1998 12 through 2002. (42 13 "(c) DATA REQUIREMENTS.- tion 14 "(1) IN GENERAL.-A State is in compliance 15 with this subsection for a fiscal year if the State has 16 provided to the Secretary the data described in para- ility 17 graph (2) for fiscal year 1997 (or, if later, the fiscal oro- 18 year that precedes the first fiscal year for which the ake 19 State seeks a grant under this section) and for each tate 20 succeeding fiscal year. en- 21 "(2) DETERMINATION OF NUMBERS OF ADOP- der 22 TIONS.- uc- 23 "(A) DETERMINATIONS BASED ON AFCARS 24 DATA.-Except as provided in subparagraph 25 (B), the Secretary shall determine the numbers 22 1 of foster child adoptions and of special needs 2 adoptions in a State during each of fiscal years 3 1997 through 2002, for purposes of this sec- 4 tion, on the basis of data meeting the require- 5 ments of the system established pursuant to 6 section 479, as reported by the State in May of 7 the fiscal year and in November of the succeed 8 ing fiscal year, and approved by the Secretary 9 by/April 1 of the succeeding fiscal year. August 10 "(B) ALTERNATIVE DATA SOURCES PER- 11 MITTED FOR FISCAL YEAR 1997.-For purposes 12 of the determination described in subparagraph 13 (A) for fiscal year 1997, the Secretary may use 14 data from a source or sources other than that ] 15 specified in subparagraph (A) that the Sec- ] 16 retary finds to be of equivalent completeness 1 17 and reliability, as reported by a State by No- 1 18 vember 30, 1997, and approved by the Sec- 1 19 retary by March 1, 1998. 1 20 "(3) No WAIVER OF AFCARS REQUIREMENTS.- 2 21 This section shall not be construed to alter or affect 2 22 any requirement of section 479 or any regulation 2 23 prescribed under such section with respect to report- 2. 24 ing of data by States, or to waive any penalty for 2. 25 failure to comply with the requirements. 2: IS 23 1 "(d) ADOPTION INCENTIVE PAYMENT.- 2 "(1) IN GENERAL-Except as provided in para- 3 graph (2), the adoption incentive payment payable to 4 a State for a fiscal year under this section shall be 5 equal to the sum of- $ 4,000 6 "(A) $2,000, multiplied by amount (if any) 7 by which the number of foster child adoptions 8 in the State during the fiscal year exceeds the 9 base number of foster child adoptions for the 10 State for the fiscal year; and 11 "(B) $2,000, multiplied by the amount (if 1 12 any) by which the number of special needs 13 adoptions in the State during the fiscal year ex- 14 ceeds the base number of special needs adop- 15 tions for the State for the fiscal year. S 16 "(2) PRO RATA ADJUSTMENT IF INSUFFICIENT 17 FUNDS AVAILABLE.-For any fiscal year, if the total :- 18 amount of adoption incentive payments otherwise INSERT 19 payable under this section for a fiscal year exceeds 20 the amount appropriated for that fiscal year, the 21 amount of the adoption incentive payment payable to n 22 each State under this section for the fiscal year shall t- 23 be or 24 "(A) the amount of the adoption incentive 25 payment that would otherwise be payable to the PROPOSED AMENDMENTS TO S. . 1195 INSERT on page 23, at line 19: (as determined under paragraph (1) ) exceeds the difference between the maximum amount specified in subsection (h) (1) and the total amounts paid under this section in preceding fiscal years, the adoption incentive payment payable to a State in that fiscal year shall equal an amount which bears the same ratio to the difference as the amount determined for the State pursuant to paragraph (1) bears to the total amounts so determined for all States. 24 1 State under this section for the fiscal year; mul 2 tiplied by 3 "(B) the percentage represented by the 4 amount appropriated for that year, divided by 5 the total amount of adoption incentive pay 6 ments otherwise payable under this section for 7 the fiscal year. 8 "(e) 2-YEAR AVAILABILITY OF INCENTIVE PAY- 9 MENTS.-Payments to a State under this section in a fis- 10 cal year shall remain available for use by the State 1( 11 through the end of the succeeding fiscal year. 11 12 "(f) LIMITATIONS ON USE OF INCENTIVE PAY- 12 13 MENTS.-A State shall not expend an amount paid to the 13 14 State under this section except to provide to children or 14 15 families any service (including post adoption services) that 15 16 may be provided under part B or E. Amounts expended 16 17 by a State in accordance with the preceding sentence shall 17 18 be disregarded in determining State expenditures for pur- 18 19 poses of Federal matching payments under section 474. 19 20 "(g) DEFINITIONS.-As used in this section: 20 21 "(1) FOSTER CHILD ADOPTION.-The term 21 22 'foster child adoption' means the final adoption of a 22 23 child who, at the time of adoptive placement, was in 23 24 foster care under the supervision of the State. 24 25 ul- 1 "(2) SPECIAL NEEDS ADOPTION.-The term 2 'special needs adoption' means the final adoption of he 3 a child for whom an adoption assistance agreement by 4 is in effect under section 473. ay- 5 "(3) BASE NUMBER OF FOSTER CHILD ADOP- for 6 TIONS.-The term 'base number of foster child 7 adoptions for a State' means, with respect to a fiscal Y- 8 year, the largest number of foster child adoptions in is- 9 the State in fiscal year 1997 (or, if later, the first ate 10 fiscal year for which the State has furnished to the 11 Secretary the data described in subsection (c)(2)) or Y- 12 in any succeeding fiscal year preceding the fiscal the 13 year. or 14 "(4) BASE NUMBER OF SPECIAL NEEDS ADOP- at 15 TIONS.-The term 'base number of special needs led 16 adoptions for a State' means, with respect to a fiscal all 17 year, the largest number of special needs adoptions ur- 18 in the State in fiscal year 1997 (or, if later, the first 74. 19 fiscal year for which the State has furnished to the 20 Secretary the data described in subsection (c)(2)) or rm 21 in any succeeding fiscal year preceding the fiscal f a 22 year. in 23 "(h) LIMITATIONS ON AUTHORIZATION OF APPRO- 24 PRIATIONS.- 26 INSERT 1 "(1) IN GENERAL. For grants under this see 2 tion, there are authorized to be appropriated to the 3 Secretary $15,000,000 for each of fiscal years 1999 4 through 2003. 5 "(2) AVAILABILITY.-Amounts appropriated 6 under paragraph (1) are authorized to remain avail- 7 able until expended, but not after fiscal year 2003." 2004 8 SEC. 202. PROMOTION OF ADOPTION OF CHILDREN WITH { 9 SPECIAL NEEDS. 9 10 (a) IN GENERAL-Section 473(a) of the Social Secu- 10 11 rity Act (42 U.S.C. 673(a)) is amended by striking para- 11 12 graph (2) and inserting the following: 12 13 "(2)(A) For purposes of paragraph (1)(B)(ii), a child 13 14 meets the requirements of this paragraph if such child— 14 15 "(i) prior to termination of parental rights and 15 16 the initiation of adoption proceedings was in the 16 17 care of a public or licensed private child care agency 17 18 or Indian tribal organization either pursuant to a 18 19 voluntary placement agreement (provided the child 19 20 was in care for not more than 180 days) or as a re- 20 21 sult of a judicial determination to the effect that 21 22 continuation in the home would be contrary to the 22 23 safety and welfare of such child, or was residing in 23 24 a foster family home or child care institution with 24 25 the child's minor parent (either pursuant to such a 25 PROPOSED AMENDMENTS TO S. 1195 INSERT on page 26, at line 1: There are appropriated for payment in fiscal years 1999 through 2003 a total amount not to exceed $108,000,000 for that 5-year period 29 1 Adoption, Safety, and Support for Abused and Neglected 2 Children (PASS) Act to provide to children or families any 3 service (including post-adoption services) that may be pro- 4 vided under this part or part B.". 5 SEC. 203. TECHNICAL ASSISTANCE. INSERT 6 (d) IN GENERAL.-The Secretary of Health and 7 Human Services may, directly or through grants or con- 8 tracts, provide technical assistance to assist States and 9 local communities to reach their targets for increased 10 numbers of adoptions and, to the extent that adoption is 11 not possible, alternative permanent placements, for chil- 12 dren in foster care. 13 (b) LIMITATIONS.-The technical assistance provided paragraph1) 14 under subsection (a) shall support the goal of encouraging INDENT 15 more adoptions out of the foster care system, when adop- ACCORDINGLY 16 tions promote the best interests of children, and shall in- 17 clude the following: 18 (1) The development of best practice guidelines 19 for expediting termination of parental rights. 20 (2) Models to encourage the use of concurrent 21 planning. C, 22 (3) The development of specialized units and 23 expertise in moving children toward adoption as a 24 permanency goal. PROPOSED AMENDMENTS TO S. 1195 INSERT on page 29, at line 6: Section 476 of the Social Security Act (42 U.S.C. 676) is amended by adding after subsection (b) the following new subsection: " (c) TECHNICAL ASSISTANCE TO FACILITATE ADOPTIONS OF CHILDREN IN FOSTER CARE - 30 1 (4) The development of risk assessment tools to 2 facilitate early identification of the children who will 3 be at risk of harm if returned home. 4 (5) Models to encourage the fast tracking of 5 children who have not attained 1 year of age into INDENT ACCORDINGLY 6 adoptive and pre-adoptive placements. H> 7 (6) Development of programs that place chil- 8 dren in pre-adoptive families without waiting for ter- 9 mination of parental rights. 10 (7) Development of programs to recruit adop- 11 tive parents. 12 SEC. 204. ADOPTIONS ACROSS STATE AND COUNTY JURIS- 13 DICTIONS. 14 (a) ELIMINATION OF GEOGRAPHIC BARRIERS TO 15 INTERSTATE ADOPTION.-Section 471(a) of the Social 16 Security Act (42 U.S.C. 671(a)), as amended by section 17 106, is amended— 18 (1) by striking "and" at the end of paragraph 19 (21); 20 (2) by striking the period at the end of para- 21 graph (22) and inserting "; and"; and 22 (3) by adding at the end the following: 23 "(23) provides that neither the State nor any 24 other entity in the State that receives funds from .S 1195 IS 38 1 (1) in paragraph (22), by striking "and" at the 2 end; 3 (2) in paragraph (23), by striking the period 4 and inserting "; and"; and 5 (3) by adding at the end the following: 6 "(24) provides that the State shall annually 7 provide to the Secretary the information required 8 under section 479A." 9 TITLE III-ADDITIONAL 10 IMPROVEMENTS AND REFORMS 11 SEC. 301. EXPANSION OF CHILD WELFARE DEMONSTRA- 12 TION PROJECTS. 13 Section 1130(a) of the Social Security Act (42 U.S.C. 14 1320a-9(a)) is amended by striking "10" and inserting 15 "15". 16 SEC. 302. PERMANENCY PLANNING HEARINGS. 17 Section 475(5)(C) of the Social Security Act (42 18 U.S.C. 675(5)(C)) is amended— 19 (1) by striking "dispositional" and inserting 20 "permanency planning"; 21 (2) by striking "no later than" and all that fol- 22 lows through "12 months" and inserting "not later 23 than 12 months after the original placement (and 12 24 not less frequently than every 6 -months"; and .S 1195 IS 51 1 "(i) Individual, group, and family 2 counseling. 3 "(ii) Inpatient, residential, or out- 4 patient substance abuse treatment services. 5 "(iii) Mental health services. 6 "(iv) Assistance to address domestic 7 violence. 8 "(v) Transportation to or from any of 9 the services and activities described in this 10 subparagraph.". 11 (3) ADDITIONAL CONFORMING AMENDMENTS.- 12 (A) PURPOSES.-Section 430(a) of the So- 13 cial Security Act (42 U.S.C. 629(a)) is amend- 14 ed by striking "and community-based family 15 support services" and inserting ", community- 16 based family support services, and time-limited 17 family reunification services". 18 (B) EVALUATIONS.-Subparagaphs (B) 19 and (C) of section 435(a)(2) of the Social Secu- 20 rity Act (42 U.S.C. 629d(a)(2)) are each 21 amended by striking "and family support" each 22 place it appears and inserting ", family support, 23 and family reunification". INSERT .S 1195 IS PROPOSED AMENDMENTS TO S. 1195 INSERT on page 51, after line 23: (c) REAUTHORIZATION OF FUNDING FOR STATE COURTS TO ASSESS AND IMPROVE JUDICIAL HANDLING OF PROCEEDINGS RELATING TO FOSTER CARE AND ADOPTION. - (1) REAUTHORIZATION OF RESERVATIONS UNDER THE SOCIAL SECURITY ACT.-Section 430 (d) (2) of the Social Security Act (42 U.S.C. 629 (d) (2)) is amended by striking "and 1998" and inserting "1998, 1999, 2000, 2001, 2002, and 2003". (2) REAUTHORIZATION OF FUNDING UNDER THE OMNIBUS BUDGET RECONCILIATION ACT OF 1993 -Section 13712 of the Omnibus Budge Reconciliation Act of 1993 (P.L. 103-66) is amended- (A) in subsection (c) (1) by striking "through 1998" and inserting "through 2003"; (B) in subsection (c) (1) (B) by striking "through 1998" and inserting "through 2003"; and (C) in subsection (d) (2) by striking "and 1998" and inserting "1998, 1999, 2000, 2001, 2002, and 2003". 52 1 SEC. 308. INNOVATION GRANTS TO REDUCE BACKLOGS OF 2 CHILDREN AWAITING ADOPTION AND FOR 3 OTHER PURPOSES. 4 Part E of title IV of the Social Security Act (42 5 U.S.C. 670 et seq.) is amended by inserting after section 6 477, the following: 7 "SEC. 478. INNOVATION GRANTS. 8 "(a) AUTHORITY To MAKE GRANTS.-The Secretary 9 may make grants, in amounts determined by the Sec- 10 retary, to States with approved applications described in 11 subsection (c), for the purpose of carrying out the innova- 12 tion projects described in subsection (b). 13 "(b) INNOVATION PROJECTS DESCRIBED.-The in- 14 novation projects described in this subsection are projects 15 that are designed to achieve 1 or more of the following 16 goals: 17 "(1) Reducing a backlog of children in long- 18 term foster care or awaiting adoption placement. 19 "(2) Ensuring, not later than 1 year after a 20 child enters foster care, a permanent placement for 21 the child. 22 "(3) Identifying and addressing barriers that 23 result in delays to permanent placements for chil- 24 dren in foster care, including inadequate representa- 25 tion of child welfare agencies in termination of pa- .S 1195 IS 53 I rental rights and adoption proceedings, and other 2 barriers to termination of parental rights. 3 "(4) Implementing or expanding community- 4 based permanency initiatives, particularly in commu- 5 nities where families reflect the ethnic and racial di- 6 versity of children in the State for whom foster and 7 adoptive homes are needed. 8 "(5) Developing and implementing community- 9 based child protection activities that involve partner- 10 ships among State and local governments, multiple 11 child-serving agencies, the schools, and community 12 leaders in an attempt to keep children free from 13 abuse and neglect. 14 "(6) Establishing new partnerships with busi- 15 nesses and religious organizations to promote safety 16 and permanence for children. 17 "(7) Assisting in the development and imple- 18 mentation of the State guidelines described in sec- 19 tion 471(a)(10). 20 "(8) Developing new staffing approaches to 21 allow the resources of several States to be used to 22 conduct recruitment, placement, adoption, and post- 23 adoption services on a regional basis. 24 (9) Any other goal that the Secretary specifies 25 by regulation .S 1195 IS 54 1 "(c) APPLICATION.-An application for a grant 2 under this section may be submitted for fiscal year 1998 3 or 1999 and shall contain- 4 "(1) a plan, in such form and manner as the 5 Secretary may prescribe, for an innovation project 6 described in subsection (b) that will be implemented 7 by the State for a period of not more than 5 con- 8 secutive fiscal years, beginning with fiscal year 1998 9 or 1999, as applicable; and 10 "(2) an assurance that no waivers from provi- 11 sions in law, as in effect at the time of the submis- 12 sion of the application, are required to implement 13 the innovation project; and 14 (3) such other information as the Secretary 15 may require by regulation. 16 "(d) DURATION.-An innovation project approved 17 under this section shall be conducted for not more than 18 5 consecutive fiscal years, except that the Secretary may 19 terminate a project before the end of the period originally 20 approved if the Secretary determines that the State con- 21 ducting the project is not in compliance with the terms 22 of the plan and application approved by the Secretary 23 under this section. 24 "(e) MATCHING REQUIREMENT.-A State shall not 25 receive a grant under this section unless, for each year .S 1195 IS 55 1 for which a grant is awarded, the State agrees to match 2 the grant with $1 for every $3 received. 3 "(f) NONSUPPLANTING.-Any funds received by a 4 State under a grant made under this section shall supple- 5 ment but not replace any other funds that may be avail- 6 able for the same purpose in the localities involved. 7 "(g) EVALUATIONS AND REPORTS.- 8 "(1) STATE EVALUATIONS.-Each State admin- 9 istering an innovation project under this section 10 shall- 11 "(A) provide for ongoing and retrospective 12 evaluation of the project, meeting such condi- 13 tions and standards as the Secretary may re- 14 quire; and 15 "(B) submit to the Secretary such reports, 16 at such times, in such format, and containing 17 such information as the Secretary may require. 18 "(2) REPORTS TO CONGRESS.-The Secretary 19 shall, on the basis of reports received from States 20 administering projects under this section, submit in- 21 terim reports, and, not later than 6 months after the 22 conclusion of all projects administered under this 23 section, a final report to Congress. A report submit- 24 ted under this subparagraph shall contain an assess- 25 ment of the effectiveness of the State projects ad- .S 1195 IS 56 1 ministered under this section and any recommenda- 2 tions for legislative action that the Secretary consid- 3 ers appropriate. 4 "(h) REGULATIONS. Not later than 60 days after 5 the date of enactment of this section, the Secretary shall 6 promulgate final regulations for implementing this section. (h) 7 AUTHORIZATION OF APPROPRIATIONS.-There is 8 authorized to be appropriated to make grants under this 9 section not more than $50,000,000 for each of fiscal years 10 1998 through 2003. 11 TITLE IV-MISCELLANEOUS 12 SEC. 401. PRESERVATION OF REASONABLE PARENTING. 13 Nothing in this Act is intended to disrupt the family 14 unnecessarily or to intrude inappropriately into family life, 15 to prohibit the use of reasonable methods of parental dis- 16 cipline, or to prescribe a particular method of parenting. 17 SEC. 402. REPORTING REQUIREMENTS. 18 Any information required to be reported under this 19 Act shall be supplied to the Secretary of Health and 20 Human Services through data meeting the requirements 21 of the Adoption and Foster Care Analysis and Reporting 22 System established pursuant to section 479 of the Social 23 Security Act (42 U.S.C. 679), to the extent such data is 24 available under that system. The Secretary shall make 25 such modifications to regulations issued under section 479 .S 1195 IS