EXPANSION OF CHILD WELFARE DEMONSTRATION PROJECTS.

SEC. 301. EXPANSION OF CHILD WELFARE DEMONSTRATION PROJECTS. (a) In General.—Section 1130(a) of the Social Security Act (42 U.S.C. 1320a–9) is amended to read as follows: “(a) Authority To Approve Demonstration Projects.— “(1) In general.—The Secretary may authorize States to conduct demonstration projects pursuant to this section which the Secretary finds are likely to promote the objectives of part B or E of title IV. “(2) Limitation.—The Secretary may authorize not more than 10 demonstration projects under paragraph (1) in each of fiscal years 1998 through 2002. “(3) Certain types of proposals required to be considered.— “(A) If an appropriate application therefor is submitted, the Secretary shall consider authorizing a demonstration project which is designed to identify and address barriers 111 STAT. 2128that result in delays to adoptive placements for children in foster care. “(B) If an appropriate application therefor is submitted, the Secretary shall consider authorizing a demonstration project which is designed to identify and address parental substance abuse problems that endanger children and result in the placement of children in foster care, including through the placement of children with their parents in residential treatment facilities (including residential treatment facilities for post-partum depression) that are specifically designed to serve parents and children together in order to promote family reunification and that can ensure the health and safety of the children in such placements. “(C) If an appropriate application therefor is submitted, the Secretary shall consider authorizing a demonstration project which is designed to address kinship care. “(4) Limitation on eligibility.—The Secretary may not authorize a State to conduct a demonstration project under this section if the State fails to provide health insurance coverage to any child with special needs (as determined under section 473(c)) for whom there is in effect an adoption assistance agreement between a State and an adoptive parent or parents. “(5) Requirement to consider effect of project on terms and conditions of certain court orders.—In considering an application to conduct a demonstration project under this section that has been submitted by a State in which there is in effect a court order determining that the State’s child welfare program has failed to comply with the provisions of part B or E of title IV, or with the Constitution of the United States, the Secretary shall take into consideration the effect of approving the proposed project on the terms and conditions of the court order related to the failure to comply.”. (b)Rule of Construction.—Nothing in the amendment made by subsection (a) shall be construed as affecting the terms and conditions of any demonstration project approved under section 1130 of the Social Security Act (42 U.S.C. 1320a–9) before the date of the enactment of this Act. (c) Authority To Extend Duration of Demonstrations.—Section 1130(d) of such Act (42 U.S.C. 1320a–9(d)) is amended by inserting “, unless in the judgment of the Secretary, the demonstration project should be allowed to continue” before the period.