Intercountry Adoptions, 62321-62343 [2016-20968]

Download as PDF Vol. 81 Thursday, No. 174 September 8, 2016 Part III Department of State mstockstill on DSK3G9T082PROD with PROPOSALS2 22 CFR Part 96 Intercountry Adoptions; Proposed Rule VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\08SEP2.SGM 08SEP2 62322 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules DEPARTMENT OF STATE 22 CFR Part 96 [Public Notice: 9521] RIN 1400–AD91 Intercountry Adoptions Department of State. Proposed rule. AGENCY: ACTION: The Department of State (the Department) proposes to amend requirements for accreditation of agencies and approval of persons to provide adoption services in intercountry adoption cases. The proposed rule includes a new subpart establishing parameters for U.S. accrediting entities to authorize adoption service providers who have received accreditation or approval to provide adoption services in countries designated by the Secretary, which will be known as ‘‘country-specific authorization’’ (CSA). Adoption service providers will only be permitted to act as primary providers in a CSAdesignated country if they have received CSA for that particular country. The proposed rule also strengthens certain standards for accreditation and approval, including those related to fees and the use of foreign providers. In addition, the proposed rule enhances standards related to preparation of prospective adoptive parents so that they receive more training related to the most common challenges faced by adoptive families, and are better prepared for the needs of the specific child they are adopting. These proposed changes are intended to align the preparation of prospective adoptive parents with the current demographics of children immigrating to the United States through intercountry adoption. Finally, the proposed rule makes the mechanism to submit complaints about adoption service providers available to complainants even if they have not first addressed their complaint directly with the adoption service provider. DATES: The Department will accept comments on the proposed regulation up to November 7, 2016. ADDRESSES: • Internet: You may view this proposed rule and submit your comments by visiting the Regulations.gov Web site at www.regulations.gov, and searching for docket number DOS–2016–0056. • Mail or Delivery: You may send your paper, disk, or CD–ROM submissions to the following address: Comments on Proposed Rule 22 CFR part 96, Office of Legal Affairs, Overseas mstockstill on DSK3G9T082PROD with PROPOSALS2 SUMMARY: VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 Citizens Services, U.S. Department of State, CA/OCS/L, SA–17, Floor 10, Washington, DC 20522–1710. • All comments should include the commenter’s name and the organization the commenter represents (if applicable). If the Department is unable to read your comment for any reason, the Department might not be able to consider your comment. Please be advised that all comments will be considered public comments and might be viewed by other commenters; therefore, do not include any information you would not wish to be made public. After the conclusion of the comment period, the Secretary will publish a final rule as expeditiously as possible in which it will address relevant public comments. FOR FURTHER INFORMATION CONTACT: Technical Information: Trish Maskew, (202) 485–6024. Legal Information: Carine L. Rosalia, (202) 485–6092. SUPPLEMENTARY INFORMATION: Why is the Secretary promulgating this rule? On February 15, 2006, the Secretary published the final rule, 71 FR 8064, on the accreditation and approval of agencies and persons in accordance with the 1993 Hague Convention on Protection of Children and Co-operation in Respect of Intercountry Adoption (the Convention) and the Intercountry Adoption Act of 2000, (IAA), Public Law 106–279 (42 U.S.C. Chapter 143). The Convention and the law implementing it generally require the accreditation of agencies (private, nonprofit organizations licensed to provide adoption services in at least one State) and the approval of persons (individuals and private, for-profit entities) to provide adoption services in Convention cases. The Secretary revised these regulations with a final rule published on February 10, 2015 (80 FR 7321), to reflect the requirements of the IAA as amended by the Intercountry Adoption Universal Accreditation Act of 2012, (UAA), (Pub. L. 112–276). The Act requires that the accreditation standards developed in accordance with the Convention and the IAA, which previously only applied in Convention adoption cases, apply also in nonConvention adoption cases, known as ‘‘orphan’’ cases, based on the definition of ‘‘orphan’’ in section 101(b)(1)(F) of the Immigration and Nationality Act (INA) (8 U.S.C. 1101(b)(1)(F)). The changes proposed in this rule derive from the Secretary’s authority to promulgate regulations that prescribe the standards and procedures for the PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 accreditation of agencies and the approval of persons under section 203(a)(1) of the IAA (42 U.S.C. 14923(a)(1)). Among these changes in the proposed rule, we are reinserting a definition of ‘‘central authority function.’’ This term had been defined in the IAA, but was deleted from the regulations when we revised them in order to implement the UAA. The definition now proposed has been redrafted to include the duties carried out by a Central Authority or equivalent functions completed by a competent authority in non-Convention countries. The Secretary also revised these regulations with a final rule published on August 19, 2015 (80 FR 50195). That rule revised the accreditation regulations relating to application for renewal of accreditation found in subpart G of 22 CFR part 96, and authorizes an accrediting entity to stagger renewals and establishes criteria for selecting which agencies or persons are eligible for an extension of accreditation or approval for up to one year. Overview of Proposed Changes to the Accreditation Regulations A. Country-Specific Authorization (CSA) The Department makes every effort to secure and support intercountry adoption between the United States and foreign countries as a viable option for children in need of permanent homes. There may be instances in which the Secretary, in consultation with the Secretary of Homeland Security, would deem it necessary and beneficial to designate one or more countries for which adoption service providers (ASPs) would have to obtain CSA in order to act as a primary provider with respect to adoptions from that country. The requirement for country-specific authorization in addition to accreditation or approval would be designed to enhance existing protections in the intercountry adoption process. The following examples illustrate how CSA could be employed: Documenting Compensation and Certain Fees The revisions to 22 CFR 96.34 would only allow ASPs to compensate its employees, supervised providers, and foreign providers, or any other individual or entity involved in intercountry adoption, amounts that are ‘‘not unreasonably high in relation to the services actually rendered,’’ as opposed to the previous standard which also said that such compensation would be in relation to ‘‘norms for E:\FR\FM\08SEP2.SGM 08SEP2 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules mstockstill on DSK3G9T082PROD with PROPOSALS2 compensation within the intercountry adoption community in that country, to the extent that such norms are known to the accrediting entity.’’ Under this revised standard, the Department could determine the ranges of compensation that are reasonable for adoption-related services in specific countries. CSA would further enhance compliance with this standard, as revised in this proposed rule, by reweighting this standard in a particular CSA-designated country, from ‘‘foundational’’ to ‘‘mandatory,’’ so that ASPs would have to demonstrate full compliance with the relevant range of compensation for that country in 100 percent of cases. In addition, the standard in 22 CFR 96.40, requiring the itemization of expected fees and estimated expenses in the Country of Origin (COO), could be weighted more heavily in order to maintain substantial compliance with CSA. The Department could also require additional evidence from adoption service providers that the amount of money they require prospective adoptive parents to provide as support to orphanages or childwelfare centers in a foreign country is not unreasonably high for that particular country, for the purposes of 22 CFR 96.40(f). Requiring additional evidence as to what constitutes unreasonably high amounts would further prevent payments to orphanages or childwelfare centers from being used as inducement to place a child for adoption with a specific provider or parent. Obtaining Medical and Social Information About the Child In a Country of Origin (COO) in which the Department has concerns that reliable medical or social information about children eligible for adoption is not widely available, the Department, through CSA, may require additional evidence with regard to what constitutes reasonable efforts to obtain the child’s medical information (22 CFR 96.49(d)) and social information (22 CFR 96.49(g)). Requiring additional evidence regarding what steps have been taken to obtain the information would help create a more consistent standard within a particular country. This may be especially important if there are divergent interpretations among adoption service providers as to what constitutes reasonable efforts to obtain certain information about a child placed for adoption or as to what information is, in fact, ‘‘available.’’ Each CSA designation would be tailored to the conditions in a specific country of origin, and might combine any of the above examples, along with VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 other similar protections tailored to the conditions in a specific country. Each CSA designation would be designed to bolster confidence in adoption service providers’ activities with regard to that particular country such that CSA may also allow for the initiation or continuation of intercountry adoption where it might otherwise not be possible. Article 12 of the Convention provides: ‘‘A body accredited in one Contracting state [what U.S. authorities call an accredited agency or approved person] may act in another Contracting state only if the competent authorities of both states have authorised [sic] it to do so.’’ Authorities in countries of origin have their own procedures for providing authorization to accredited bodies from other countries, including to U.S. agencies and persons to provide adoption-related services within their country. To better reflect and address the practices that have evolved in recent years, we have added to § 96.12 a provision that would require U.S. adoption service providers to maintain authorization received from the foreign country, if required by that country, in order to be able to provide services related to intercountry adoptions in cases involving that country. Currently, in the United States, agencies or persons that are accredited or approved pursuant to section 201 of the IAA are considered to be authorized by the United States to act in intercountry adoption cases in every foreign country. The United States would continue this practice of considering accredited agencies or approved persons to be authorized to provide adoption services related to intercountry adoptions generally. However, the proposed rule would require that, only in specific countries designated by the Secretary, in consultation with the Secretary of Homeland Security, accredited agencies or approved persons must also obtain country specific-authorization in order to act as a primary provider with respect to intercountry adoption in the designated country. Under Title Two of the IAA, section 203, the Secretary, by regulation, prescribes the standards and procedures to be used by accrediting entities for the accreditation of agencies and the approval of persons. An accrediting entity, when evaluating an agency’s or person’s eligibility for accreditation or approval, evaluates an agency’s or person’s compliance with applicable standards in 22 CFR part 96 subpart F. Once accredited or approved, an agency or person may offer or provide adoption services in cases involving any foreign country to the extent permitted by the PO 00000 Frm 00003 Fmt 4701 Sfmt 4702 62323 foreign country. For each country for which CSA would be required, the Secretary, in consultation with the Secretary of Homeland Security, would propose to set forth, in a public announcement, a country specific method of determining substantial compliance with one or more of the standards in subpart F. That method may include increasing the ‘‘weight’’ assigned to one or more particular standards, and may include additional or specified evidence that the adoption service provider will need to provide to demonstrate compliance with those standards. To obtain country-specific authorization for a particular CSAdesignated country, an accredited or approved adoption service provider would need to demonstrate substantial compliance with the country specific criteria for that country. The accrediting entity, as proposed here, would evaluate the authorized agency’s or person’s substantial compliance with the accreditation and approval standards based on requirements to provide additional or specified evidence or comply with a more heavily weighted standard that has been tailored to a specific country. The Department proposes the creation of a new subpart N of 22 CFR part 96 to implement CSA. The procedures outlined in the new subpart N are based on the existing accreditation and approval procedures and requirements in 22 CFR part 96. The new subpart N would address the scope of CSA; application procedures, the length of CSA, renewal of CSA; the denial of CSA and a review of decisions of denial; complaints relating to compliance with CSA, their review by the accrediting entity, and possible referral to the Secretary or other authorities; and the decision by the accrediting entity to take CSA-related adverse actions. The standards governing accreditation, renewal of accreditation, and CSA would be the same; however, CSA may require ASPs to meet more heavily weighted standards, or show additional or specified evidence with regard to compliance with a standard. Complaints received related to CSA of an adoption service provider would be submitted through the complaint registry and may be handled as other complaints are handled. Provisions in § 96.101(b) would, however, require the accrediting entity to verify whether complainants had attempted to resolve the complaints through the provider’s established internal complaint procedures and if not, allow the accrediting entity to refer the complaints to the provider for resolution. Providing the accrediting E:\FR\FM\08SEP2.SGM 08SEP2 62324 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules mstockstill on DSK3G9T082PROD with PROPOSALS2 entity with discretion to refer such complaints first to the adoption service provider allows the accrediting entity the flexibility to determine if there are sufficient reasons not to do so, such as concerns expressed by adoptive parents still in the adoption process that an adoption service provider might retaliate against them or their child, and concerns that complaints indicating potentially illegal activities are best brought to the attention of the accrediting entity immediately. (A provision in § 96.69 discussed in part D., below, is similarly justified.) The date of expiration for CSA ordinarily would coincide with the date of expiration of the accreditation or approval cycle of the specific ASP. CSA would be granted for no less than three and no more than five years. The proposed rule would also amend sections in part 96 to include CSArelated functions as part of an accrediting entity’s accreditation and approval duties. The Department proposes to add additional definitions, explanatory language, and references to CSA, where necessary. B. Provision of Adoption Services and Fee Disclosures The proposed rule would amend part 96 to strengthen certain accreditation and approval standards, including those related to fee disclosures, and those related to the use of foreign providers. Such changes would further strengthen the provision of adoption services. These changes derive from observations and experience about the practical operation of the accreditation and approval regulations in the seven years since the regulations became effective. The proposed rule would incorporate language contained in the definitions section of the IAA, at proposed § 96.2 (Definitions, Adoption Services), in order to make explicit that ‘‘provision’’ of an adoption service includes ‘‘facilitating’’ the adoption service. For services that are subject to verification and do not require supervision as outlined in § 96.14(c)(3), the Department further proposes to limit an agency’s or person’s use of foreign providers to situations in which a primary provider has not previously worked with the foreign provider in the current or previous accreditation cycle, or where the primary provider has not accepted the case as part of a transfer plan in § 96.33(f). To increase transparency and provide the accrediting entity with an effective tool for assessing an agency’s or person’s compliance with the prohibition on child buying as articulated in § 96.36, addition of VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 provisions in § 96.36(b)(1) and (2) would have the ASP document foreign financial transactions in a way that maintains a reviewable record of what expenditures were paid and for what purposes. The proposed rule in § 96.40 also would require agencies or persons, when disclosing fees to prospective adoptive parents, to distinguish fees in the United States from those in a foreign country. In addition, as a provision in § 96.40(j) preserving consumer protections for prospective adoptive parents who may not realize the risk of waiving their approval, the proposed revisions delete previous provisions allowing adoption service providers to obtain a waiver from prospective adoptive parents such that the providers need not seek prospective adoptive parents’ specific consent for expending funds in excess of $1,000. This requirement would better encourage providers to disclose all known fees ahead of time and make it easier for prospective adoptive parents to compare fees between agencies and persons. Requiring additional itemization and distinction between fees and expenses in the United States and fees and expenses abroad would make it easier for prospective adoptive parents to compare the costs for services and provide greater transparency as to how the agency spends that money. The proposed revisions would create greater transparency with respect to the expenditure of money in intercountry adoptions. Finally, the proposed rule revisions in § 96.40(f) aim to prohibit accredited agencies or approved persons from charging prospective adoptive parents to care for a child prior to completion of the intercountry adoption process. In recent years, accredited agencies and approved persons have begun charging prospective adoptive parents monthly support fees for children where the intercountry adoption process is not complete. In some cases, these fees are significantly higher than the normal costs associated with the care of children in the foreign country. Where institutions can collect large fees for the care of a particular child, an incentive may be created to recruit children into institutions, while also providing a disincentive for expeditious processing of an adoption. These practices substantially increase the costs of adoption for prospective adoptive parents, and may result in a situation where an adoptive family pays for longterm care of a child who is not in fact eligible for intercountry adoption. PO 00000 Frm 00004 Fmt 4701 Sfmt 4702 C. Accreditation and Approval Standards Related to Training and Preparation of Prospective Adoptive Parents The Department proposes to create significant changes aimed at improving the level of preparedness of prospective adoptive parents and increasing the chances of successful and permanent adoption through the intercountry process. Increased training requirements for prospective adoptive parents may better prepare them to help their child, recently adopted through the intercountry adoption process, adjust to a new environment. The profile of many of the children currently eligible for intercountry adoption is dramatically different from the profile of children at the time when the regulations were initially published in 2006. At that time, the majority of children adopted through intercountry adoption were healthy infants or very young children. The demographics of children adopted through intercountry adoption now include a higher percentage of older children, children with special needs, and sibling groups. The proposed rule, therefore, would align intercountry adoption training requirements with the training requirements for those who wish to adopt through the child welfare systems of the various U.S. States which have long recognized the training needed for older children, sibling groups, and children with medical or other needs. Prospective adoptive parents would complete the requirements for their State of residence, information about which is available through the Department of Health and Human Service’s National Resource Center for Diligent Recruitment, https://www.nrcdr.org/ _assets/files/NRCDR-org/type-oftraining-by-state.pdf, or an equivalent. Proposed changes to 22 CFR 96.48 to 96.50 would include updated requirements related to training and preparation of prospective adoptive parents for accredited agencies and approved persons; these proposed changes seek to promote permanent placement and contribute to the prevention of disruptions of placements and dissolutions of adoptions, as well as unregulated custody transfer (also referred to as ‘‘rehoming’’). The preadoption preparation and training that accredited agencies and approved persons provide to parents pursuing intercountry adoption would increase the minimum number of hours required and expand the issues that must be addressed. Our proposed change is based on the consistent feedback from the adoption and child welfare E:\FR\FM\08SEP2.SGM 08SEP2 mstockstill on DSK3G9T082PROD with PROPOSALS2 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules community that increased training improves outcomes. The Department requests comments on the effectiveness of training and the optimal number of hours of training. The pre-adoption preparation and training regulations already include the intercountry adoption process, characteristics and needs of waiting children, and in-country conditions that affect the children; genetic, health, emotional and development risk factors; the impact of leaving familiar ties and of institutionalization on children; attachment disorders; the laws and adoption process in the country of origin; implications of becoming a multicultural family; post-placement and post-adoption reporting requirements; the child’s history and background; health risks in the child’s country of origin; and child-specific information based on available social, medical, and other background on the child. The proposed regulatory changes pertaining to the preparation and training of prospective adoption parents would require specific methods of presentation and include, in addition to existing training topics, training on grief, loss, identity, and trauma; characteristics of successful intercountry adoptive placements; exploration of the family’s individual circumstances, including past disruptions and dissolutions and previous compliance with postplacement and post-adoption reporting requirements. To directly address growing concerns about disruption, dissolution, and unregulated custody transfer, the proposed changes would require adoption service providers to include information about disruption and dissolution in training and preparation programs for prospective adoptive parents. Adoption service providers would be required to provide specific points of contact for support in the event an adoptive family faces adjustment or other difficulties that place permanency at risk. In order to provide training that encourages parents to carefully consider their ability to meet the needs of a child adopted through the intercountry adoption process before entering into a contract for adoption services, the provisions in § 96.48(a)(1) would prohibit agencies and persons from making a referral or requiring payment of fees for the specified adoption services prior to completion of certain required training. Currently, an agency can match a child to a family that has not completed its home study and training, which makes it more difficult for the agency to determine whether the family is suitable VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 for adoption and for a match with a specific child. Also, families that have already paid non-refundable fees may be less likely to self-identify as not suitable for an adoption once they learn more about the challenges an intercountry adoption may present. In accordance with the provisions in § 96.48(c)(1), after prospective adoptive parents are matched with a specific child, agencies or persons would need to discuss that child’s specific needs and circumstances and how the family will address them. Agencies or persons would be required to provide prospective adoptive parents with resources and information about how and where to seek post-adoption services and support. To address similar concerns as they relate to monitoring placements until final adoptions, in the event an adoptive family is in crisis during the postplacement phase, the proposed revisions would add an additional requirement that the ASP takes all appropriate measures to inform the parents of local and State laws and legal resources pertaining to disruption of a placement and appropriate measures for making another placement of a child, as well as providing resources to address potential future crises. D. Submission of Complaints and Other Proposed Changes The proposed rule in subpart J, § 96,69, would no longer require a complainant to first submit her/his complaint to the agency or person that is the subject of a complaint before submitting it to the complaint registry for action by the accrediting entity. Previously, complainants had to attempt to resolve their concerns directly with their provider before seeking a review of the matter by the accrediting entity. This change addresses multiple issues, including concerns expressed by adoptive parents still in the adoption process that an adoption service provider might retaliate against them or their child, and concerns that complaints indicating potentially illegal activities are best brought to the attention of the accrediting entity immediately. Changes in § 96.68 and § 96.70(b)(1) clarify that it is possible to file complaints relating to verification of certain adoption services that may be performed by foreign providers that were not supervised. A final key change found in subpart J is the change of the term ‘‘investigate’’ to ‘‘review’’ with respect to an accrediting entity’s review of complaints. This change brings the language into conformity with the IAA. The Department made minor technical edits to §§ 96.70(a), 96.71, and 96.72 PO 00000 Frm 00005 Fmt 4701 Sfmt 4702 62325 that do not have substantive impacts on the requirements. Amendments to § 96.24(c) proposed here would require an agency or person to provide an appropriate setting for interviews and review of case documents by the accrediting entity when it conducts a site visit. Some provider operations take place in close quarters such as a private home where the ability of the accrediting entity’s evaluator to carry out a discussion with employees or others or review documents is hindered. It is essential that an ASP provide a space that would allow the evaluator to carry out such interviews and reviews in order to secure pertinent information about an agency’s or person’s practices and programs. Changes to § 96.33(a) would require disclosure of remuneration paid by adoption service providers to foreign providers, making it synonymous with the requirement that they disclose payments to everyone else. Addition of § 96.33(h) would provide a list of potential sources of information that would contribute toward an effective risk assessment as the basis for determining the type and amount of professional, general, directors’ and officers’, errors and omissions, and other liability insurance for an agency or person to carry. Finally, the requirement to retain a completed FBI Form FD–258 contained in § 96.35(c)(4) and (d)(2) have been removed as this form cannot be used for the purpose stated in those provisions under current FBI guidance. E. Implementing Changes in the Proposed Rule, if Approved Some changes in the proposed rule would become effective 30 days after publication of the final rule, consistent with the Administrative Procedures Act (APA), while we envision others taking effect within three to nine months, for all agencies or persons currently accredited or approved and for those seeking accreditation or approval. Provisions in § 96.40 relating to fee disclosures would take effect 30 days after publication. To comply with the new rule, adoption service providers will need to change their fee disclosures. While the information required under the new rule should already be available to accredited or approved adoption service providers, the efforts to reflect the added specificity required by the new rule will require the APA-mandated 30-day period of implementation. Such a time frame would allow adoption service providers to review already available information, determine whether such E:\FR\FM\08SEP2.SGM 08SEP2 62326 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules fees and expenses should be characterized as fees and expenses in the United States or overseas, respectively, and begin to provide this information to prospective adoptive parents. The provisions in § 96.2 (definition of adoption services) and § 96.14 relating to supervised providers would take effect 90 days after publication. Ninety days provides sufficient time for the agency or person to appropriately vet, enter into a contractual agreement with, and begin supervising facilitators. The provisions in § 96.48 relating to training and prospective adoptive parent preparation would take effect nine months after the publication of the final rule. The Department recognizes the efforts required from accredited or approved providers to identify available training programs required by the relevant State to adopt a child through the State’s child welfare system, or an equivalent if the State program is unavailable, as well as develop new curriculum specific to intercountry adoption. The Department anticipates that provisions allowing the Secretary to designate a country as requiring CSA and the minor other changes will take effect within 30 days of publication of the final rule Regulatory Analysis Administrative Procedure Act The Department is issuing this rule as a proposed rule with a 60-day period for public comments. mstockstill on DSK3G9T082PROD with PROPOSALS2 Regulatory Flexibility Act/Executive Order 13272: Small Business The Regulatory Flexibility Act (RFA), 5 U.S.C. 601–612, requires an agency to prepare a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements under the APA or any other statute unless the agency certifies, pursuant to 5 U.S.C. 605(b), that the rule will not have a significant economic impact on a substantial number of small entities and provides a factual basis for its certification. ‘‘Small entities’’ include ‘‘small organizations,’’ which the RFA defines as any non-profit enterprise that is independently owned and operated and not dominant in its field. (5 U.S.C. 601(4), 601(6)). The Secretary has reviewed this proposed rule’s impact on small agencies and persons in accordance with the final regulatory analysis requirements of the RFA. There are currently approximately 200 accredited or approved adoption service providers, many of which are arguably ‘‘small entities’’ under the RFA that would VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 have to comply with this rulemaking. For the reasons provided below, the Secretary has determined that the impact on small entities affected by the proposed rule will not be significant. First, the effect of the proposed rule will be to allow agencies and persons the flexibility to choose to apply to obtain CSA to act as a primary provider in those countries for which the Secretary determines that CSA is required, or to act as supervised providers. Supervised providers are not required to become accredited or approved, nor are they required to obtain CSA, and thus they can largely avoid the economic impact of accreditation and approval and of obtaining CSA whenever they work under the supervision of a primary provider. Second, certain types of very small providers, specifically home study and child background study preparers, are exempted from the requirement for accreditation, even in CSA countries, because their work is reviewed and approved by an agency that is accredited. Third, with respect to revisions to accreditation standards in the proposed rule that impact all 200 accredited agencies and approved persons, such as standards relating to disclosure of fees, preparation of prospective adoption parents, and revisions clarifying the role of primary providers, the IAA and the regulations use an accreditation model, and a substantial compliance structure that provides agencies and persons with ample opportunity to correct deficiencies before accreditation or approval is denied. Thus, the accreditation model used in this proposed rule allows for the majority of the standards to be performance-based. Substantial compliance, which is typical of regulations based on an accreditation scheme, inherently provides for regulatory flexibility because entities are not required to comply perfectly with every single standard. Overall, these features of the proposed rule minimize the burden on small entities. The Secretary hereby certifies that this rule will not have a significant economic impact on a substantial number of small entities. Although the Department does not think these regulations will have a significant economic impact on a substantial number of small entities, it would like to solicit comment from the public on the following questions: (1) Will most small agencies desire to apply for CSA in countries where the Secretary has determined that CSA is required? (2) What will the cost be to small entities PO 00000 Frm 00006 Fmt 4701 Sfmt 4702 to comply with the fee disclosure provisions of the proposed rule? (3) What are accrediting entities likely to charge the agencies for the country specific authorization process? (4) What are the estimated costs agencies will have to expend to comply with the standards in Subpart N? It would be helpful if commenters would supply information and data to support their comments on these enumerated issues. The Small Business Regulatory Enforcement Fairness Act of 1996 This rule is not a major rule, as defined by 5 U.S.C. 804, for purposes of congressional review of agency rulemaking under the Small Business Regulatory Enforcement Fairness Act of 1996, Public Law 104–121. This rule will not result in an annual effect on the economy of $100 million or more; a major increase in costs or prices; or significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of U.S.-based companies to compete with foreign-based companies in domestic and import markets. The Unfunded Mandates Reform Act of 1995 Section 202 of the Unfunded Mandates Reform Act of 1995 (codified at 2 U.S.C. 1532) generally requires agencies to prepare a statement before proposing any rule that may result in an annual expenditure of $100 million or more by State, local, or tribal governments, or by the private sector. This rule will not result in any such expenditure, nor will it significantly or uniquely affect small governments or the private sector. Executive Orders 12372 and 13132: Federalism This regulation will not have substantial direct effects on the States, on the relationship between the national government and the States, or the distribution of power and responsibilities among the various levels of government. Nor will the rule have federalism implications warranting the application of Executive Orders 12372 and No. 13132. Executive Orders 12866 and 13563 The Secretary has reviewed this proposed rule to ensure its consistency with the regulatory philosophy and principles set forth in Executive Order 12866, and has determined that the benefits of this proposed regulation justify its costs. The Secretary does not consider this rulemaking to be an economically significant action within the scope of section 3(f)(1) of the E:\FR\FM\08SEP2.SGM 08SEP2 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules mstockstill on DSK3G9T082PROD with PROPOSALS2 Executive order. The estimated economic impact of implementing key changes in the proposed rule revising the intercountry adoption accreditation regulations is less than $1,000,000, and well under the $100 million threshold set by E.O. 12866 as having a significant economic impact. Furthermore, given the relatively low cost to the public, and given the high public benefit provided by the proposed rule in terms of stronger preparations of prospective adoptive parents for a successful intercountry adoption, greater transparency as to adoption fees both in the United States and abroad, and the potential for improving practices in certain countries of origin through country specific authorization that could potentially result in beginning or resuming intercountry adoption in countries of origin, this proposed rule demonstrates both the letter and the spirit of the principles embodied in E.O. 12866. 1. Country Specific Authorization (CSA) Cost to the Accrediting Entity: Almost all of the costs associated with implementing the application process to qualify for CSA for a country designated by the Secretary, would be captured in the application fee charged to each adoption service provider. The application fee would relate directly to the review of application materials relating to the requirements for CSA that are tailored to circumstances in the designated country of origin. Cost to the Adoption Service Providers: Because CSA would involve meeting new weighting or evidentiary requirements relating to existing standards, it would not likely impose significant costs on accredited and approved providers. Notwithstanding our projection that ASPs seeking CSA will be able to do so without significant additional cost to them beyond those normally associated with their accreditation, except for an application fee for CSA paid to the accrediting entity, some ASPs may believe they would incur additional costs to adapt their practices to conform with enhanced weighting and evidentiary requirements to qualify for CSA. Because the standards implicated are likely to vary with each iteration of CSA, it is not possible to project what those costs might be. The public is invited to comment on what, if any, additional costs ASPs might incur to qualify for CSA. Estimated Cost To Implement CSA: An average cost of $1,500 per applicant per CSA iteration. • An average of 15 applicants per iteration of CSA VerDate Sep<11>2014 21:52 Sep 07, 2016 Jkt 238001 • At an estimated average cost of $1,500 per applicant • Equals $22,500 per CSA iteration. Æ An average of two CSA designations per year Æ = $22,500 × 2 = $45,000 per year. Total Estimated Cost for CSA Implementation per Year: $45,000. 2. Strengthening Standards Related to Disclosure of Fees The fee disclosure provisions in the proposed rule would refine the way fees are characterized and when and how they must be disclosed. However, these providers already know what they charge prospective adoptive families to complete an adoption abroad in specific countries. Disclosing the expected fees and expenses across an array of cost categories as defined in proposed § 96.40 would not be onerous or costly. We estimate the disclosure provisions would involve minimal administrative costs and labor associated with appropriately categorizing the fees and expenses, as well as printing new documents and making changes to a Web site, and that costs to ASPs and the accrediting entity (AE) associated with putting the new fee disclosure rules in place would be minimal. As we expect these costs to be less than $500, we are using a primary average estimate of $400. Total Cost To Implement Fee Disclosure Changes: $400. 3. Training and Preparing Prospective Adoptive Parents for Successful Parenting of Children Adopted Internationally Changes in the training requirements for prospective adoptive parents in § 96.48 have three main elements: (a) 20 hours of training offered by the State of residence that is provided to families adopting from the foster care system, or an equivalent where a State program is unavailable for prospective adoptive parents who wish to complete an intercountry adoption. We see three ways for families to obtain this training: (1) States may provide the same training to intercountry adopting families as provided to families adopting from the foster care system in the State at no cost to the families. We anticipate that as many as 20 percent of adoptive families will be permitted to receive the required training through existing State training programs; Cost to Participants of Training Provided by States • This training is provided without out-of-pocket cost to prospective adoptive families, aside from the time spent in the training. PO 00000 Frm 00007 Fmt 4701 Sfmt 4702 62327 Monetizing the Time Burden of Adoptive Parent Training • Using the Bureau of Labor Statistics latest publication (June 2016) reporting average hourly wages of private, nonfarm labor, the national average for all sectors is approximately $26. Thus, 20 hours of training would equate to approximately $520 per parent. If 20 percent of the estimated 6,000 prospective adoptive parents were to engage in such training each year, the time burden would equal approximately $624,000. However, this training will not require out-of-pocket payment by prospective adoptive parents. (2) ASPs may obtain training materials and participant workbooks already developed and ready to use supplied by one of the four primary training systems used throughout the United States for approximately $800, including a training manual and training DVDs, reproducible as needed for home study preparers, who normally would provide this training, along with a participant’s manual available for $20 each. Estimated Cost of This Training Option for All Trainers (One-Time Cost) • $800 plus the cost of reproducing the training manual and training DVDs 100 copies of the training materials at $20 each = $2,000 for reproduction of training materials. • $800 + $2,000 = $2,800 for all trainers counted together. Estimated Cost for All Prospective Adoptive Parents Annually • $20 each* × 5000 = $100,000 (*estimation assumption: of 5,648 U.S. intercountry adoptions in FY 2015, two thirds were adoptions of single children by one family, and the rest were adopted as sibling groups resulting in about 5,000 total adoptive families adopting that year. $20 × 5,000 = $100,000.) Total Estimated Cost of ASPs Providing Independent Training Programs Equivalent to State Programs • $2800 + $100,000 = $102,800 per year. (3) A final option available to meet this new standard would be for an ASP to develop brand-new training materials tailored to the specific content and branding needs of individual providers. Because it is not possible to predict the cost to develop such training independently from scratch—we cannot predict the scale of users who would share in the cost, nor the extent to which the training is web-based, DVDbased, or fully human-moderated—we E:\FR\FM\08SEP2.SGM 08SEP2 62328 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules do not make a projection of the cost of this option. It seems likely that the other two options will be the preferred options for those for whom the training is required. Total Estimated Cost of Training • $102,800 per year. Total Overall Estimated Economic Impact for the First Year in Terms of Costs to Adoption Service Providers and Prospective Adoptive Parents Taken as a Whole • $45,000 (CSA) + ($400 Fee Reporting) + $102,800 (Parent Training) + $624,000 (opportunity cost of training) = $772,400. Most of this cost is not an out-of-pocket cost but represents the opportunity cost of time spent in training. Subsequent years would have similar costs minus the one-time cost of obtaining training materials for the required 20 hours of training equivalent to training offered by the State of residence that is provided to families adopting from the foster care system ($102,800). The public is invited to comment on what, if any, additional costs ASPs might incur to implement the training provisions of the proposed rule. Benefits of the Proposed Changes: The proposed changes in this rule would provide public benefit in terms of stronger preparations of prospective adoptive parents for a successful intercountry adoption, greater transparency as to adoption fees both in the United States and abroad, and the potential for improving practices in certain countries of origin through CSA that could potentially result in beginning or resuming intercountry adoption in countries of origin, mstockstill on DSK3G9T082PROD with PROPOSALS2 Executive Order 12988: Civil Justice Reform The Secretary has reviewed these regulations in light of sections 3(a) and 3(b)(2) of Executive Order 12988 to eliminate ambiguity, minimize litigation risks, establish clear legal standards, and reduce burden. The Secretary has made every reasonable effort to ensure compliance with the requirements in Executive Order 12988. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments The Department has determined that this rulemaking will not have tribal implications, will not impose substantial direct compliance costs on Indian tribal governments, and will not pre-empt tribal law. Accordingly, the requirements of Section 5 of Executive VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 Order 13175 do not apply to this rulemaking The Paperwork Reduction Act of 1995 In accordance with 42 U.S.C. 14953(c), this rule does not impose information collection requirements subject to the provisions of the Paperwork Reduction Act, 44 U.S.C. Chapter 35. List of Subjects in 22 CFR Part 96 Adoption, Child welfare, Children, Child immigration, Foreign persons. For the reasons stated in the preamble, the Secretary proposes to amend 22 CFR part 96 as follows: PART 96—INTERCOUNTRY ADOPTION ACCREDITATION OF AGENCIES AND APPROVAL OF PERSONS 1. The authority citation for part 96 is revised to read as follows: ■ Authority: The Convention on Protection of Children and Co-operation in Respect of Intercountry Adoption (done at The Hague, May 29, 1993), S. Treaty Doc. 105–51 (1998), 1870 U.N.T.S. 167 (Reg. No. 31922 (1993)); 42 U.S.C. 14901–14954; 42 U.S.C. 14925. Subpart A—General Provisions 2. Amend § 96.1, in the first sentence, by removing the comma and space between ‘‘106–279’’ and the closing parenthesis, and by adding a sentence to the end of the paragraph to read as follows: ■ § 96.1 Purpose. * * * Subpart N of this part establishes the general procedures for country specific authorization. § 96.2 [Amended] 3. Amend § 96.2 by: a. Adding a sentence to the end of paragraph (6) of the definition of ‘‘Adoption service’’; and ■ b. Adding definitions for ‘‘Authorization’’, ‘‘Central Authority function’’, ‘‘Country specific authorization (CSA)’’, and ‘‘USCIS’’ in alphabetical order: The additions read as follows: ■ ■ § 96.2 Definitions. * * * * * Adoption service * * * (6) * * * The term ‘‘providing,’’ with respect to an adoption service, includes facilitating the provision of the service. * * * * * Authorization means the permission from a Central Authority for an agency or person to act in a country with respect to an intercountry adoption. In the United States, accreditation or approval provides general authorization PO 00000 Frm 00008 Fmt 4701 Sfmt 4702 to act with respect to an intercountry adoption, other than in those countries for which the Secretary has also required country specific authorization (CSA). Where required, an accredited agency or approved person must also have the authorization of the relevant country to act in that country. * * * * * Central Authority function means any duty required to be carried out by a Central Authority in a Convention country, or equivalent function in a non-Convention country. * * * * * Country specific authorization (CSA) means authorization by a U.S. accrediting entity of an accredited agency or approved person in the United States to act as a primary provider under § 96.14(a) in connection with an intercountry adoption involving a specific foreign country identified by the Secretary, according to subpart N of this part. While CSA requires compliance with all requirements imposed by a foreign country in relation to intercountry adoption, CSA does not constitute authorization from a foreign government to engage in activities related to intercountry adoption, where such authorization is required. CSA ceases automatically and immediately upon the corresponding foreign country’s withdrawal or cancellation of its authorization of the agency or person. * * * * * USCIS means U.S. Citizenship and Immigration Services within the U.S. Department of Homeland Security. Subpart B—Selection, Designation, and Duties of Accrediting Entities ■ 4. Revise § 96.4(c) to read as follows: § 96.4 Designation of accrediting entities by the Secretary. * * * * * (c) A public entity, within the meaning provided in § 96.5(b), may only be designated to accredit agencies and approve persons that are located in the public entity’s State. ■ 5. Revise § 96.6(c) to read as follows: § 96.6 Performance criteria for designation as an accrediting entity. * * * * * (c) That it can monitor the performance of agencies it has accredited and persons it has approved (including their use of any supervised providers and verification of adoption services provided by foreign providers) to ensure their continued compliance with the Convention, the IAA, the UAA, and the regulations implementing the E:\FR\FM\08SEP2.SGM 08SEP2 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules IAA or UAA; it can also monitor the performance of those accredited agencies and approved persons to which it has granted country specific authorization; * * * * * ■ 6. Amend § 96.7 by: ■ a. Redesignating paragraphs (a)(3) through (8) as paragraphs (a)(4) through (9), respectively, and add new paragraph (a)(3); and ■ b. Revising newly redesignated paragraph (a)(5). The additions and revisions read as follows: § 96.7 Authorities and responsibilities of an accrediting entity. (a) * * * (3) Determining whether such agencies or persons are also eligible for country specific authorization when such authorization is sought; * * * * * (5) Reviewing complaints about accredited agencies and approved persons (including their use of supervised providers and verification of adoption services provided by foreign providers); * * * * * ■ 7. Revise § 96.8(a) and (b) to read as follows: mstockstill on DSK3G9T082PROD with PROPOSALS2 § 96.8 Fees charged by accrediting entities. (a) An accrediting entity may charge fees for accreditation or approval services and where applicable, for country specific authorization, under this part only in accordance with a schedule of fees approved by the Secretary. Before approving a schedule of fees proposed by an accrediting entity, or subsequent proposed changes to an approved schedule, the Secretary will require the accrediting entity to demonstrate: (1) That its proposed schedule of fees reflects appropriate consideration of the relative size and geographic location and volume of intercountry adoption cases of the agencies or persons it expects to serve; and (2) That the total fees the accrediting entity expects to collect under the schedule of fees will not exceed the full costs of accreditation or approval and, where applicable, for country specific authorization, under this part (including, but not limited to, costs for completing the accreditation or approval process, complaint review, routine oversight and enforcement, and other data collection and reporting activities). (b) The schedule of fees must: (1) Establish separate non-refundable fees for accreditation and approval; VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 (2) Establish separate, non-refundable fees for country specific authorization; and (3) Include in each fee for accreditation or approval or country specific authorization the costs of all activities associated with the accreditation or approval cycle or with country specific authorization, where appropriate, including but not limited to, costs for completing the accreditation or approval process, costs for completing country specific authorization, where applicable, complaint review, routine oversight and enforcement, and other data collection and reporting activities, except that separate fees based on actual costs incurred may be charged for the travel and maintenance of evaluators. * * * * * ■ 8. Revise § 96.9(c) to read as follows: § 96.9 Agreement between the Secretary and the accrediting entity. * * * * * (c) How the accrediting entity will address complaints about accredited agencies and approved persons (including their use of supervised providers and verification of adoption services provided by foreign providers) and complaints about the accrediting entity itself; * * * * * ■ 9. Revise § 96.10(c)(6) to read as follows § 96.10 Suspension or cancellation of the designation of an accrediting entity by the Secretary. * * * * * (c) * * * (6) Failing to protect information, including personally identifiable information, or documents that it receives in the course of performing its responsibilities; and * * * * * Subpart C—Accreditation and Approval Requirements for the Provision of Adoption Services 10. Amend § 96.12: a. In the introductory text of paragraph (a) by removing ‘‘once the UAA becomes effective’’ and removing ‘‘transitional’’ and adding in its place ‘‘transition’’ in both places; and ■ b. By revising paragraph (c) and adding paragraphs (d) and (e). The revisions and additions read as follows: ■ ■ § 96.12 Authorized adoption service providers. * * * * * (c) Neither conferral nor maintenance of accreditation or approval or country PO 00000 Frm 00009 Fmt 4701 Sfmt 4702 62329 specific authorization, nor status as an exempted or supervised provider, nor status as a public domestic authority shall be construed to imply, warrant, or establish that, in any specific case, an adoption service has been provided consistently with, the Convention, the IAA, the UAA, or the regulations implementing the IAA or UAA. Conferral and maintenance of accreditation or approval, and, when required, country specific authorization, under this part establishes only that the accrediting entity has concluded, in accordance with the standards and procedures of this part, that the agency or person conducts adoption services in substantial compliance with the applicable standards set forth in this part; it is not a guarantee that in any specific case the accredited agency or approved person is providing adoption services consistently with the Convention, the IAA, the UAA, the regulations implementing the IAA or UAA, or any other applicable law, whether Federal, State, or foreign. Neither the Secretary nor any accrediting entity shall be responsible for any acts of an accredited agency, approved person, exempted provider, supervised provider, or other entity providing services in connection with an intercountry adoption. (d) The agency or person must maintain authorization from the relevant foreign country, where the agency or person seeks to offer, provide, facilitate, verify or supervise the provision of adoption services in a foreign country, if required by that country. (e) The agency or person, if seeking to act as a primary provider under 96.14(a) in connection with intercountry adoptions involving a country that has been designated by the Secretary as requiring country specific authorization, must maintain that country specific authorization as provided in subpart N of this part. ■ 11. Revise § 96.14(c)(3) to read as follows: § 96.14 Providing adoption services using other providers. * * * * * (c) * * * (3) A foreign provider (agency, person, or other non-governmental entity) that is not under its supervision, where the primary provider has not previously worked with the foreign provider in the current or previous accreditation cycle, or where the primary provider has not accepted the case as part of a transfer plan in § 96.33(f), and either the foreign provider E:\FR\FM\08SEP2.SGM 08SEP2 62330 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules (i) Has secured the necessary consent to termination of parental rights and to adoption prior to an accredited agency or approved person or their supervised providers providing any adoption service(s) in the case, other than preparing a home study on prospective adoptive parents, if the primary provider verifies consent pursuant to § 96.46(c); or (ii) Has prepared a background study on a child in a case involving immigration to the United States (incoming case) or a home study on prospective adoptive parent(s) in a Convention adoption case involving emigration from the United States (outgoing case), and a report on the results of such a study prior to an accredited agency or approved person or their supervised providers providing any adoption service(s) in the case, other than preparing a home study on prospective adoptive parents, if the primary provider verifies the study and report pursuant to § 96.46(c). * * * * * ■ 12. Revise § 96.15 to read as follows: § 96.15 Examples. mstockstill on DSK3G9T082PROD with PROPOSALS2 The following examples illustrate the rules of §§ 96.12 through 96.14: Example 1. Identifying a child for adoption and arranging an adoption. Agency Y, located in the United States, takes steps to place a particular child residing in a foreign country with a particular adoptive family in the United States. Agency Y must be accredited, approved, or supervised because it is identifying a child and arranging an intercountry adoption. By contrast, Agency X, also a U.S. agency, identifies children eligible for adoption in the United States on a TV program in an effort to recruit prospective adoptive parent(s). A prospective adoptive parent residing in a foreign country calls Agency X about one of the children. Agency X refers them to an agency or person in the United States who arranges intercountry adoptions. Agency X does not require accreditation, approval, or supervision because it is not both identifying and arranging the adoption. Example 2. Foreign supervised providers. Agency X, a U.S. agency, works in a foreign country with orphanage Y, facilitator A, orphanage director B, and driver/translator C. Agency X must supervise Orphanage Y, a private, non-governmental organization in a foreign country, if Agency X has established a formal or informal relationship or arrangement whereby Orphanage Y provides information or services to help Agency X match a particular child with an adoptive family. In that case, Orphanage Y, which is not a public foreign authority or a competent authority, is providing at least one adoption service (identifying a child and arranging an adoption). Throughout the adoption process, Facilitator A and Orphanage Director B work together to prepare documentation on the child and move the adoption paperwork VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 through various ministries and government offices. Because ‘‘providing’’ an adoption service includes ‘‘facilitating’’ the provision of an adoption service, all the contributing services involved in placing a particular child with a particular family are considered the provision of an adoption service, and therefore must be supervised if not performed by the primary provider or public foreign authority. When Agency X uses foreign providers to provide adoption services, it must treat them as supervised providers in accordance with § 96.46(a) and (b), unless it is using the foreign providers in accordance with § 96.14(c)(3). By contrast, when the prospective adoptive parents arrive in the foreign country to adopt the child, Driver/Translator C drives them to various adoption-related appointments and serves as a translator. He does not, however, assist with transmitting documents, paying fees, or any other action related to the provision of adoption services. Agency X does not need to treat Driver/Translator C as a foreign supervised provider, because he is not providing or facilitating the provision of adoption services. Example 3. Foreign supervised providers. Individual Y works in Foreign Country A gathering documentation on children eligible for adoption, including reports on the child prepared by orphanages and medical reports. Agency X, a U.S. agency, sends Individual Y information on prospective adoptive parents. Individual Y takes documents for a set of prospective adoptive parents, and for an eligible child, to the Ministry with the authority to match parents and children. The Ministry reviews the proposed match and issues documentation to assign the child to the prospective adoptive parent. Agency X must treat Individual Y as a foreign supervised provider in accordance with § 96.46(a) and (b) because Individual Y is providing adoption services. Example 4. Child welfare services exemption. Doctor X evaluates the medical records and a video of Child Y. The evaluation will be used in an intercountry adoption as part of the placement of Child Y and is the only service that Doctor X provides in the United States with regard to Child Y’s adoption. Doctor X (not employed with an accredited agency or approved person) does not need to be approved or supervised because she is not providing an adoption service as defined in § 96.2. Example 5. Home study exemption. Social Worker X, in the United States, (not employed with an accredited agency or approved person) interviews Prospective Adoptive Parent Y, obtains a criminal background study, and checks the references of Prospective Adoptive Parent Y, then composes a report and submits the report to an accredited agency for use in an intercountry adoption. Social Worker X does not provide any other services to Prospective Adoptive Parent Y. Social Worker X qualifies as an exempted provider and therefore need not be approved or operate as supervised provider. In contrast, Social Worker Z, in the United States (not employed with an accredited agency or approved person) prepares a home study report for Prospective Adoptive Parent(s) W, and in addition re- PO 00000 Frm 00010 Fmt 4701 Sfmt 4702 enters the house after Child V has been placed with Prospective Adoptive Parent(s) W to assess how V and W are adjusting to life as a family. This assessment is postplacement monitoring, which is an adoption service. Therefore, Social Worker Z would need to become approved before providing this assessment for this intercountry adoption or else operate as a supervised provider. If an agency or person provides an adoption service in addition to a home study or child background study, the agency or person needs to become accredited, approved, or supervised before providing that adoption service. Example 6. Child background study exemption. An employee of Agency X, a U.S. agency, interviews Child Y in the United States and compiles a report concerning Child Y’s social and developmental history for use in an intercountry adoption. Agency X provides no other adoption services on behalf of Child Y. Agency X does not need to be accredited, approved, or supervised. Agency X is only conducting and creating a child background study, and therefore is an exempted provider. In contrast, an employee of Agency Z interviews Child W in the United States and creates a child background study for use in an intercountry adoption. Agency Z subsequently identifies prospective adoptive parent(s) and arranges a new adoption when Child W’s previous adoption is dissolved. Agency Z needs to be accredited, approved, or supervised before providing this service. If an agency or person provides an adoption service in addition to a child background study or home study, the agency or person needs to be accredited, approved, or supervised before providing the additional service. Example 7. Home study and child welfare services exemptions. Agency X, a U.S. agency, interviews Prospective Adoptive Parent Y, obtains a criminal background check, checks the references of Prospective Adoptive Parent Y, then composes a home study and submits it to an accredited agency for use in an intercountry adoption in the United States. Parent Y later joins a postadoption support group for adoptive parents sponsored by Agency X. If Agency X performs no other adoption services, Agency X does not need to be accredited, approved, or supervised. If an agency or person provides a home study or child background study as well as other services in the United States that do not require accreditation, approval, or supervision, and no other adoption services, the agency or person is an exempted provider. Example 8. Exempted provider. Agency X, a U.S. agency, interviews Prospective Adoptive Parent(s) Y, obtains a criminal background check, checks the references of Prospective Adoptive Parent(s) Y, and then composes a home study and submits the report to an accredited agency for review and approval. In addition, Agency X interviews Child Z and compiles a report concerning Child Z’s social and developmental history. All of Agency X’s work is done in the United States. Both reports will be used in an intercountry adoption. If Agency X performs no other adoption services, Agency X does not need to be accredited, approved, or E:\FR\FM\08SEP2.SGM 08SEP2 mstockstill on DSK3G9T082PROD with PROPOSALS2 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules supervised. If an agency or person provides a home study and child background study as well as other services that do not require accreditation, approval or supervision, and no other adoption services, the agency or person is an exempted provider. Example 9. Legal services exemption. Attorney X (not employed with an accredited agency or approved person) provides advice and counsel to Prospective Adoptive Parent(s) Y on filling out DHS paperwork required for an intercountry adoption. Among other papers, Attorney X prepares an affidavit of consent to termination of parental rights and to adoption of Child W to be signed by the birth mother in the United States. Attorney X must be approved or supervised because securing consent to termination of parental rights is an adoption service. In contrast, Attorney Z (not employed with an accredited agency or approved person) assists Adoptive Parent(s) T to complete an adoption in the State in which they reside, after they have been granted an adoption in Child V’s foreign country of origin. Attorney Z is exempt from approval or supervision because she is providing legal services, but no adoption services. Example 10. Post-placement monitoring. A court in a foreign country has granted custody of Child W to Prospective Adoptive Parent(s) Y pending the completion of W’s adoption. Agency X interviews both Prospective Adoptive Parent(s) Y and Child W in their home in the United States. Agency X, a U.S. agency, gathers information on the adjustment of Child W as a member of the family and inquires into the social and educational progress of Child W. Agency X must be accredited, approved, or supervised. Agency X’s activities constitute postplacement monitoring, which is an adoption service. In contrast, if Person Z provided counseling for Prospective Adoptive Parent(s) Y and/or Child W, but provided no adoption services in the United States to the family, Person Z would not need to be approved or supervised. Post-placement counseling is different than post-placement monitoring because it does not relate to evaluating the adoption placement. Postplacement counseling is not an adoption service and does not trigger the accreditation/ approval requirements of the IAA or the UAA and this part. Example 11. Post-adoption services. Foreign Country H requires that postadoption reports be completed and sent to its Central Authority every year until adopted children reach the age of 18. Agency X, a U.S. agency, provides support groups and a newsletter for U.S. parents that have adopted children from Country H and encourages parents to complete their post-adoption reports annually. Agency X does not need to be accredited, approved, or supervised because it is providing only post-adoption services. Post-adoption services are not included in the definition of adoption services, and therefore, do not trigger accreditation/approval requirements of the IAA or the UAA and this part. Example 12. Assuming custody and providing services after a disruption. Agency X provides counseling for Prospective VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 Adoptive Parent(s) Y and for Child W pending the completion of Child W’s intercountry adoption. The placement eventually disrupts. Agency X helps recruit and identify new prospective adoptive parent(s) for Child W, but it is Agency P that assumes custody of Child W and places him in foster care until an alternative adoptive placement can be found. Agency X is not required to be accredited, approved, or supervised because it is not providing an adoption service in the United States as defined in § 96.2. Agency P, on the other hand, is providing an adoption service and would have to be accredited, approved, or supervised. Example 13. Making non-judicial determinations of best interest of child and appropriateness of adoptive placement of child. Agency X, a U.S. agency, receives information about and a videotape of Child W from the institution where Child W lives in a foreign country. Based on the age, sex, and health problems of Child W. Agency X matches Prospective Adoptive Parent(s) Y with Child W. Prospective Adoptive Parent(s) Y receive a referral from Agency X and agree to accept the referral and proceed with the adoption of Child W. Agency X determines that Prospective Adoptive Parent(s) Y are a good placement for Child W and notifies the competent authority in W’s country of origin that it has found a match for Child W and will start preparing adoption paperwork. Agency X is performing an adoption service and must be accredited, approved, or supervised. Example 14. Securing necessary consent to termination of parental rights and to adoption. Facilitator Y, a foreign facilitator, is accredited by Foreign Country Z. He has contacts at several orphanages in Foreign Country Z and helps Agency X, a U.S. agency, match children eligible for adoption with prospective adoptive parent(s) in the United States. Facilitator Y works with the institution that is the legal guardian of Child W in order to get the documents showing the institution’s legal consent to the adoption of Child W. Agency X is the only U.S. agency providing adoption services in the case. If: Facilitator Y secured the necessary consent prior to Agency X’s involvement in the case, and Agency X and Facilitator Y have not worked together in the current or previous accreditation cycle or if Agency X has accepted the case as part of a transfer plan, then Agency X could proceed if it verifies the consent secured by Facilitator Y in accordance with § 96.14(c) and § 96.46(c) and would not need to treat Facilitator Y as a supervised provider in this case. However, in any case thereafter in which Agency X works with Facilitator Y, Agency X must treat Facilitator Y as a foreign supervised provider. Example 15. Parents acting on their own behalf. Prospective Adoptive Parent Y prepares and submits intercountry adoptionrelated documents to government authorities in Country A. An accredited agency or approved person must act as primary provider to ensure that all six adoption services are provided, develop and implement a service plan, and supervise any agency, person, or other non-governmental entity who assists Prospective Adoptive PO 00000 Frm 00011 Fmt 4701 Sfmt 4702 62331 Parent Y in completing any adoption service. If the consent was obtained or a report on the child written by a foreign provider (with whom the primary provider has not previously worked in the current or previous accreditation cycle) before an accredited agency, approved person, or their supervised providers provided any adoption services in the case, the primary provider is not responsible for supervising that foreign provider’s work in this case prior to the primary provider’s entry on the case. However, the primary provider must verify, in accordance with § 96.46(c), any consents obtained by any such foreign provider, and any background study on the child or home study on the Prospective Adoptive Parent Y prepared by any such foreign provider. After the primary provider’s entry on the case, any adoption services provided by the unsupervised foreign provider must be supervised. The primary provider does not need to supervise Prospective Adoptive Parent Y because prospective adoptive parents do not need to be accredited, approved, or supervised to act on their own behalf. 13. Add a sentence to the end of the paragraph in § 96.17 to read as follows: ■ § 96.17 Effective date of accreditation and approval requirements. * * * Revisions to § 96.60(b) providing for the staggering of accreditation and approval renewal applications became effective on September 18, 2015. Subpart E—Evaluation of Applicants for Accreditation and Approval 14. Amend § 96.24 by revising the introductory text of paragraph (c) to read as follows: ■ § 96.24 Procedures for evaluating applicants for accreditation or approval. * * * * * (c) The site visit(s) may include, but need not be limited to, interviews with birth parents, adoptive parent(s), prospective adoptive parent(s), and adult adoptee(s) served by the agency or person, interviews with the agency’s or person’s employees and members of its governing body, and interviews with other individuals knowledgeable about the agency’s or person’s provision of adoption services. It may also include a review of on-site documents. The agency or person must provide an appropriate setting for interviews and review of case documents. The accrediting entity must, to the extent practicable, advise the agency or person in advance of the type of documents it wishes to review during the site visit. The accrediting entity must require at least one of the evaluators to participate in each site visit. The accrediting entity must determine the number of E:\FR\FM\08SEP2.SGM 08SEP2 62332 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules evaluators that participate in a site visit in light of factors such as: * * * * * § 96.25 [Amended] 15. Amend § 96.25(c) by adding the phrase ‘‘or engages in deliberate destruction of documentation,’’ after the phrase ‘‘as requested, ’’. ■ § 96.26 [Amended] 16. Amend § 96.26(a) by removing the space within the word ‘‘performance’’ . ■ 17. Amend § 96.27 by revising paragraphs (a) and (c) through (g), and adding paragraph (h) to read as follows: ■ mstockstill on DSK3G9T082PROD with PROPOSALS2 § 96.27 Substantive criteria for evaluating applicants for accreditation or approval and for country specific authorization. (a) The accrediting entity may not grant an agency accreditation or a person approval, or permit an agency’s or person’s accreditation or approval to be maintained, unless the agency or person demonstrates to the satisfaction of the accrediting entity that it is in substantial compliance with the standards in subpart F of this part and, to the extent that the agency or person wishes to act as primary provider under § 96.14(a) in a country that requires country specific authorization, that it is in substantial compliance with subparts N and F of this part. * * * * * (c) The standards contained in subpart F of this part apply during all the stages of accreditation and approval, including, but not limited to, when the accrediting entity is evaluating an applicant for accreditation or approval, when it is deciding whether to grant an agency or person applicable country specific authorization, when it is determining whether to renew an agency’s or person’s accreditation or approval or any applicable country specific authorization(s), when it is monitoring the performance of an accredited agency or approved person, and when it is taking adverse action against an accredited agency or approved person. Except as provided in § 96.25 and paragraphs (e) and (f) of this section, the accrediting entity may only use the standards contained in subpart F of this part when determining whether an agency or person may be granted or permitted to maintain accreditation or approval, and, where applicable, country specific authorization. (d) The Secretary will ensure that each accrediting entity performs its accreditation and approval functions using only a method approved by the Secretary that is substantially the same as the method approved for use by each other accrediting entity. Each such VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 method will include: An assigned value for each standard (or element of a standard); a method of rating an agency’s or person’s compliance with each applicable standard, including any country specific criteria for compliance with that standard under subpart N of this part; and a method of evaluating whether an agency’s or person’s overall compliance with all applicable standards establishes that the agency or person is in substantial compliance with the standards and can be accredited or approved. The Secretary will ensure that the value assigned to each standard reflects the relative importance of that standard to compliance with the Convention, the IAA, and the UAA, and is consistent with the value assigned to the standard by other accrediting entities. The accrediting entity must advise applicants of the value assigned to each standard (or elements of each standard) at the time it provides applicants with the application materials. (e) If an agency or person previously has been denied accreditation or approval or country specific authorization, has withdrawn its application in anticipation of denial, or is reapplying for accreditation or approval after cancellation, refusal to renew, or temporary debarment, the accrediting entity may take the reasons underlying such actions into account when evaluating the agency or person for accreditation or approval or granting of country specific authorization, and may deny accreditation or approval or country specific authorization on the basis of the previous action. (f) If an agency or person that has an ownership or control interest in the applicant, as that term is defined in section 1124 of the Social Security Act (42 U.S.C. 1320a–3), has been debarred pursuant to § 96.85, the accrediting entity may take into account the reasons underlying the debarment when evaluating the agency or person for accreditation or approval or country specific authorization, and may deny accreditation or approval or country specific authorization or refuse to renew accreditation or approval or country specific authorization on the basis of the debarment. (g) Substantial compliance with the standards contained in subpart F of this part does not eliminate the need for an agency or person to comply fully with the laws of the jurisdictions in which it operates. An agency or person must provide adoption services in intercountry adoption cases consistent with the laws of any State in which it operates and with the Convention, the IAA, and the UAA. Persons that are PO 00000 Frm 00012 Fmt 4701 Sfmt 4702 approved to provide adoption services may only provide such services in States that do not prohibit persons from providing adoption services. Nothing in the application of subparts E and F should be construed to require a State to allow persons to provide adoption services if State law does not permit them to do so. (h) The standards contained in subpart F of this part do not eliminate the need for an agency or person to comply fully with the laws of the foreign countries in which it acts. Accredited agencies or approved persons may only provide adoption services when authorized by the foreign country to do so, where such authorization is required. Subpart F—Standards for Intercountry Adoption Accreditation and Approval 18. Amend § 96.33 by revising paragraphs (a) and (e) through (i) and adding paragraphs (j) through (l) to read as follows: ■ § 96.33 Budget, audit, insurance, and risk assessment requirements. (a) The agency or person operates under a budget approved by its governing body, if applicable, for management of its funds. The budget discloses all remuneration (including perquisites) paid to the agency’s or person’s board of directors, managers, employees, supervised providers, and foreign providers either directly or through third party contracts or other indirect means. * * * * * (e) The agency’s or person’s balance sheets show that it operates on a sound financial basis and maintains on average sufficient cash reserves, assets, or other financial resources to meet its operating expenses for two months, taking into account its projected volume of cases and its size, scope, and financial commitments. (f) The agency or person has a plan to transfer its intercountry adoption cases to an appropriate custodian if it ceases to provide or is no longer permitted to provide adoption services in intercountry adoption cases. The plan includes provisions for an organized closure and reimbursement to clients of funds paid for services not yet rendered. (g) If it accepts charitable donations, the agency or person has safeguards in place to ensure that such donations do not influence child placement decisions in any way. (h)(1)The agency or person assesses the risks it assumes, including by reviewing, among other things: (i) Compliance with legal and regulatory requirements; E:\FR\FM\08SEP2.SGM 08SEP2 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules (ii) Health and safety; (iii) Human resources practices; (iv) Contracting practices and compliance; (v) Client rights and confidentiality issues; (vi) Financial risks; and (vii) Conflicts of interest. (2) The agency or person uses the assessment to meet the requirements in paragraph (i) of this section and as the basis for determining the type and amount of professional, general, directors’ and officers’, errors and omissions, and other liability insurance to carry. (i) The agency or person maintains professional liability insurance in amounts reasonably related to its exposure to risk, but in no case in an amount less than $1,000,000 in the aggregate. (j) The agency’s or person’s chief executive officer, chief financial officer, and other officers or employees with direct responsibility for financial transactions or financial management of the agency or person are bonded. (k) Accounting records are kept up-todate and balanced on a monthly basis, as demonstrated by: (1) Timely reconciliation of the bank statement and subsidiary records to the general ledger; (2) Up-to-date posting of cash receipts and disbursements; (3) Monthly updating of the general ledger; and (4) Review of the bank reconciliation by a person other than the person who performs the reconciliation or signs checks. (l) The agency or person complies with the Foreign Corrupt Practices Act and other Federal laws. The agency or person has a system of internal controls and record keeping that ensures that funds spent directly or indirectly for performing any activity related to an intercountry adoption are executed and accounted for in accordance with the intended purpose of the payment. ■ 19. Revise § 96.34 to read as follows: mstockstill on DSK3G9T082PROD with PROPOSALS2 § 96.34 Compensation. (a) The agency or person does not compensate or contrive to compensate, directly or indirectly, any individual or entity involved in an intercountry adoption with an incentive fee or contingent fee for each child located or placed for adoption. (b) The agency or person compensates its directors, officers, employees, and supervised providers or any other agent, individual or entity involved in an intercountry adoption who provide intercountry adoption services only for services actually rendered and only on VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 a fee-for-service, hourly wage, or salary basis rather than a contingent fee basis. (c) The agency or person does not make any payments, promise payment, or give other consideration to any individual directly or indirectly involved in provision of adoption services in a particular case, except for salaries or fees for services actually rendered and reimbursement for costs incurred. This does not prohibit an agency or person from providing in-kind or other donations that are not intended to influence or affect a particular adoption. All such donations should be disclosed to the accrediting entity. (d) The fees, wages, or salaries paid to the directors, officers, employees, supervised providers, or any other agent, individual or entity involved in an intercountry adoption on behalf of the agency or person are not unreasonably high in relation to the services actually rendered, taking into account what such services actually cost in the country in which the services are provided, the location, number, and qualifications of staff; workload requirements; budget; and size of the agency or person. (e) Any other compensation paid or provided to the agency’s or person’s directors or members of its governing body is not unreasonably high in relation to the services rendered, taking into account the same factors listed in paragraph (d) of this section and its forprofit or nonprofit status. (f) The agency or person identifies all vendors to whom clients are referred for non-adoption services and discloses to the accrediting entity and the agency’s or person’s clients, any corporate or financial arrangements and any family relationships with such vendors. ■ 20. Amend § 96.35: ■ a. By revising the introductory text of paragraph (b) and paragraphs (b)(8) and (9), and adding paragraph (b)(10); ■ b. By revising the introductory text of paragraph (c) and paragraph (c)(2); and ■ c. By removing and reserving paragraphs (c)(4) and (d)(2). The additions and revisions read as follows: § 96.35 Suitability of agencies and persons to provide adoption services consistent with the Convention. * * * * * (b) In order to permit the accrediting entity to evaluate the suitability of an agency or person for accreditation or approval and any applicable country specific authorization under subpart N, the agency or person discloses to the accrediting entity the following information related to the agency or PO 00000 Frm 00013 Fmt 4701 Sfmt 4702 62333 person, under its current or any former name: * * * * * (8) For the prior five-year period, any instances where the agency or person has filed for bankruptcy; (9) Descriptions of any businesses or activities that are inconsistent with the principles of the Convention and that have been or are currently carried out by the agency or person, affiliate organizations, or by any organization in which the agency or person has an ownership or controlling interest; and (10) Any instances where any current director, officer, or employee was involved in any of the activities in paragraphs (b)(1) through (9) of this section while employed by another entity involved in providing an adoption service. (c) In order to permit the accrediting entity to evaluate the suitability of an agency or person for accreditation or approval, the agency or person (for its current or any former names) discloses to the accrediting entity the following information about its individual directors, officers, and employees (in their current or former capacities or employment): * * * * * (2) Any convictions, formal disciplinary actions or known current investigations of any such individual who is in a senior management position for acts involving financial irregularities; * * * * * ■ 21. Revise § 96.36(b) to read as follows: § 96.36 Prohibition on child buying. * * * * * (b) The agency or person has written policies and procedures in place reflecting the prohibitions in paragraph (a) of this section and reinforces them in its employee training programs. The agency’s or person’s policies and procedures require its employees and agents to retain a record of the payment or fee tendered and the purpose for which it was paid for as long as adoption records are kept in accordance with 22 CFR part 98, and provide a copy thereof to the agency or person. ■ 22. Add paragraph (h) to § 96.37 to read as follows: § 96.37 Education and experience requirements for social service personnel. * * * * * (h) The agency or person has sufficient financial resources and appropriately qualified personnel in place and assigned to appropriate duties such that the agency or person can demonstrate that the agency or person E:\FR\FM\08SEP2.SGM 08SEP2 62334 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules can provide adoption-related services that involve the application of clinical skills and judgment, including postplacement counseling and support. ■ 23. Amend § 96.38 by revising paragraphs (a)(2), (b)(1), (4), and (7), and (d) to read as follows: § 96.38 Training requirements for social service personnel. (a) * * * (2) The INA provisions applicable to the immigration of children described in INA 101(b)(1)(F) and (G); * * * * * (b) * * * (1) The factors in the foreign countries that lead to children needing adoptive families; * * * * * (4) Psychological issues facing children who have experienced trauma, including abuse or neglect, and/or whose parents’ parental rights have been terminated because of abuse or neglect; * * * * * (7) The most frequent sociological, medical, and psychological problems experienced by children from the foreign countries served by the agency or person. * * * * * (d) The agency or person exempts newly hired and current employees from elements of the orientation and initial training required in paragraphs (a) and (b) of this section only where the employee has demonstrated competence in the topics outlined in those paragraphs and knowledge of the Convention, the IAA, and the UAA. ■ 24. Amend § 96.39 by revising paragraphs (a)(1) through (3) and adding paragraphs (a)(4) through (6) to read as follows: mstockstill on DSK3G9T082PROD with PROPOSALS2 § 96.39 Information disclosure and quality control practices. (a) * * * (1) Its adoption service policies and practices, including general eligibility criteria and fees; (2) The supervised, exempted, and foreign providers with whom the prospective client(s) can expect to work in the United States and in the child’s country of origin and the usual costs associated with their services; (3) A sample written adoption services contract substantially like the one that the prospective client(s) will be expected to sign should they proceed; (4) Every country in which it is authorized by the foreign country or otherwise permitted to work; (5) Every country for which the agency or person has received country VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 specific authorization when so required by the Secretary; and (6) Any past and current adverse action. * * * * * ■ 25. Amend § 96.40 by: ■ a. Revising paragraphs (a) through (c); ■ b. Redesignating paragraphs (d) through (h) as paragraphs (g) through (k), respectively; ■ c. Adding new paragraphs (d) through (f); and ■ d. Revising newly redesignated paragraph (j). The revisions and additions read as follows: § 96.40 Fee policies and procedures. (a) In general. (1) Before prospective adoptive parent(s) contract with the agency or person for provision of adoption services, the agency or person provides: (i) To all interested prospective adoptive parents, a written schedule of expected total fees and estimated expenses conforming to the categories of adoption expenses in the United States found in paragraph (b) of this section and in foreign countries found in paragraph (c) of this section; and (ii) An explanation of the conditions under which fees or expenses may be charged, waived, reduced, or refunded if the service is not provided, and information regarding when and how the fees and expenses must be paid. (2) If prospective adoptive parent(s) contact an agency or person after initiating or completing an adoption on their own behalf, the agency or person must identify in writing which adoption service(s) it will provide, including through supervision or verification, and the expected total fees and estimated expenses for each remaining service, or the fees for acting as a primary provider. (b) Expected fees and estimated expenses in the United States: Before providing any adoption service to prospective adoptive parent(s), the agency or person itemizes and discloses in writing the expected fees and expenses in the United States in connection with an intercountry adoption including, but not limited to, the following: (1) Home study, training, preparation, post-placement and post-adoption reporting, and expenses. (i) Expected fees and estimated expenses for home study preparation and, if necessary, review and approval, whether the home study is to be prepared directly by the agency or person itself, or prepared by a supervised provider, exempted provider, or approved person and reviewed and approved as required under § 96.47(c), or if the home study is PO 00000 Frm 00014 Fmt 4701 Sfmt 4702 to be prepared by a public domestic authority and the agency or person collects the associated fees; (ii) Expected fees and estimated expenses for training and preparation for the prospective adoptive parents; (iii) Expected fees and estimated expenses for preparation of postplacement and/or post-adoption reports. (2) Medical expenses related to the child. Expected fees and estimated expenses for consultations, examinations, opinions, or certificates from medical professionals in the United States. (3) Fees to cover overhead and operating costs. (i) Operational costs that will be charged on a pro rata basis for operating programs in the foreign country, such as but not limited to the agency’s or person’s employee travel to the foreign country; (ii) Operational costs that will be charged on a pro rata basis to include personnel costs for personnel in the United States, administrative overhead, communications and publications costs, training and education for personnel, and other operational costs. (4) Legal and court fees. Expected fees and estimated expenses provided for a specific adoption: (i) For anticipated legal services in the United States; and (ii) For U.S. court or other adjudicative fees. (5) Travel expenses. If any travel, transportation, and accommodation services are to be arranged by the agency or person for the prospective adoptive parent(s), the expected fees and estimated expenses for these services; if travel and transportation services are not arranged by the agency or person for the prospective adoptive parents, an estimate of the direct cost to the prospective adoptive parents of travel, transportation, and accommodation services. (6) Fees for provision of adoption services. Expected fees and estimated expenses for providers of adoption services, including: (i) Supervised providers in the United States; and (ii) Exempted providers in the United States. (7) Translation and documentation expenses. Expected fees and estimated expenses for obtaining any necessary documents and for any translation of documents related to the adoption, along with information on whether the prospective adoptive parent(s) will be expected to pay such costs directly or to third parties, or through the agency or person. This category includes, but is not limited to, costs for obtaining, translating, or copying records or E:\FR\FM\08SEP2.SGM 08SEP2 mstockstill on DSK3G9T082PROD with PROPOSALS2 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules documents required to complete the adoption; costs for the child’s court documents, passport, adoption certificate and other documents related to the adoption; and costs for authentications, for notarizations and for certifications in the United States. (c) Expected fees and estimated expenses in a foreign country. Before providing any adoption service to prospective adoptive parent(s), the agency or person itemizes and discloses in writing the expected fees and expenses in connection with an intercountry adoption in the foreign country as follows: (1) Medical expenses related to the child. Expected fees and estimated expenses for consultations, examinations, opinions, or certificates from medical professionals in the foreign country. (2) Fees to cover overhead and operating costs. Operational costs that will be charged on a pro rata basis in the foreign country, such as overhead or operating expenses in support of the agency’s or person’s foreign activities relating to intercountry adoption in general. (3) Legal and court fees. Expected fees and estimated expenses provided for a specific adoption: (i) For anticipated legal services in the foreign country; and (ii) For foreign court or other adjudicative fees. (4) Support for child welfare. Any fixed contribution, amount or percentage that the prospective adoptive parent(s) will be expected or required to make to child protection or child welfare service programs in the foreign country, either directly or indirectly, along with an explanation of the intended use of the contribution and the manner in which the contribution will be recorded and accounted for. Any such required contribution shall comply with the requirements of paragraph (e) of this section. (5) Travel expenses. Expected fees and estimated expenses incurred in the foreign country for travel, guide, interpretation, accommodations or other services provided to the prospective adoptive parents in the foreign country and arranged by the agency or person, and for which the family would be responsible. (6) Fees for provision of adoption services. Expected fees and estimated expenses for providers of adoption services, including: (i) Supervised providers in the foreign country; and (ii) Foreign providers. (7) Fees for other individuals or entities. (i) Expected fees and estimated VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 expenses to or for the Central Authority, competent authority or public foreign authority of the government of the foreign country, including but not limited to fees charged for services rendered or for processing fees; (ii) Expected fees and estimated expenses paid to other individuals or entities in the foreign country either directly or through the agency or person or its supervised or other providers. (8) Translation and documentation expenses. Expected fees and estimated expenses for obtaining any necessary documents and for any translation of documents related to the adoption, along with information on whether the prospective adoptive parent(s) will be expected to pay such costs directly or to third parties, or through the agency or person. This category includes, but is not limited to, costs for obtaining, translating, or copying records or documents required to complete the adoption, costs for the child’s court documents, passport, adoption certificate, and other documents related to the adoption, and costs for authentications, for notarizations and for certifications in the foreign country. (d) All other fees and estimated expenses. All other fees and estimated expenses not recorded and disclosed in paragraph (c) of this section must be recorded as part of paragraph (b) of this section, including expected fees and estimated expenses charged to prospective adoptive parents residing in a third country or in the foreign country. (e) Informing the accrediting entity of expected fees and estimated expenses. Agencies and persons shall provide the accrediting entity with an itemized schedule of fees for each country for which the agency or person has an intercountry adoption program that includes the fee information established in paragraphs (b) and (c) of this section. (f) If the agency or person provides support to orphanages or child-welfare centers in a foreign country for the care of children including, but not limited to, costs for food, clothing, shelter and medical care, or foster care services: (1) The amounts paid should not be unreasonably high in relation to the services actually rendered, taking into account what such services actually cost in the country in which the services are provided; and (2) The agency or person may not require prospective adoptive parents to pay fees or make contributions that are connected to the care of a particular child or are based on the length of time an adoption takes to complete, nor may they arrange, facilitate, or encourage such payments between prospective PO 00000 Frm 00015 Fmt 4701 Sfmt 4702 62335 adoptive parents or any individual, entity or orphanage. * * * * * (j) The agency or person does not customarily charge additional fees and expenses beyond those disclosed in the adoption services contract and has a written policy to this effect. In the event that unforeseen additional fees and expenses are incurred, the agency or person or its supervised providers may charge such additional fees and expenses only under the following conditions: (1) It discloses the fees and expenses in writing to the prospective adoptive parent(s); (2) It obtains the specific consent of the prospective adoptive parent(s) prior to expending any funds in excess of $1000 for which the agency or person will hold the prospective adoptive parent(s) responsible; and (3) It provides written receipts to the prospective adoptive parent(s) for fees and expenses paid directly by the agency or person in the foreign country and retains copies of such receipts. * * * * * ■ 26. Revise § 96.41(b) to read as follows: § 96.41 Procedures for responding to complaints and improving service delivery. * * * * * (b) The agency or person permits any birth parent, prospective adoptive parent or adoptive parent, or adoptee to lodge directly with the agency or person signed and dated complaints about any of the services or activities of the agency or person including its use of supervised providers and verification of adoption services provided by foreign providers that he or she believes raise an issue of compliance with the Convention, the IAA, the UAA, or the regulations implementing the IAA or UAA, and advises such individuals of the additional procedures available to them if they are dissatisfied with the agency’s or person’s response to their complaint. * * * * * ■ 27. Amend § 96.43 by: ■ a. Revising paragraphs (b)(3)(v) through (vii) and adding paragraphs (b)(3)(viii) through (xii); ■ b. Revising paragraphs (b)(4)(v) through (vii) and adding paragraphs (b)(4)(viii) through (xii); and ■ c. Revising paragraphs (b)(5) and (6). The additions and revisions read as follows: § 96.43 Case tracking, data management, and reporting. * * * (b) * * * E:\FR\FM\08SEP2.SGM 08SEP2 * * mstockstill on DSK3G9T082PROD with PROPOSALS2 62336 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules (3) * * * (v) Citizenship of the child; (vi) Location of the child’s adoption documentation and documentation relating to the citizenship or immigration status of the child; (vii) Last known physical location of the child; (viii) Name of legal guardian(s) or physical custodian(s) of the child; (ix) The reason(s) for and resolution(s) of the disruption of the placement for adoption, including information on the child’s re-placement for adoption and final legal adoption; (x) The names of the agencies or persons that handled the placement for adoption; (xi) The plans for the child; and (xii) Which authorities have been notified of the disruption. (4) * * * (v) Citizenship of the child; (vi) Location of the child’s adoption documentation and documentation relating to the citizenship or immigration status of the child; (vii) Last known physical location of the child; (viii) Name of legal guardians or physical custodian of the child; (ix) The reason(s) for and resolution(s) of the dissolution of the adoption, to the extent known by the agency or person; (x) The names of the agencies or persons that handled the placement for adoption; (xi) The plans for the child; and (xii) Which authorities have been notified of the dissolution. (5) Information on the shortest, longest, and average length of time it takes to complete an intercountry adoption, set forth by the child’s country of origin, calculated from the time the child is matched with the prospective adoptive parent(s) until the time the adoption is finalized by a judicial or administrative body, excluding any period for appeal; (6) Information on the range of adoption fees, including the lowest, highest, average, and the median of such fees, set forth by the child’s country of origin, charged by the agency or person for intercountry adoptions involving children immigrating to the United States in connection with their adoption for each category in § 96.40(b) and (c). * * * * * ■ 28. Amend § 96.44 by adding paragraphs (c) through (e) to read as follows: § 96.44 Acting as primary provider. * * * * * (c) If applying for CSA, the agency or person demonstrates its capacity to meet all requirements for the applicable VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 country specific authorization according to subparts F and N of this part. (d) The agency or person, when acting as primary provider, ensures that the steps in the intercountry adoption process are completed in accordance with applicable State, federal, and foreign law and in a manner that does not prejudice the child’s eligibility for an immigrant visa petition approval and visa issuance under section 101(b)(1)(F) or (G) of the INA. For example, in Convention cases, this generally requires providing services so that the applicable immigrant visa petition is filed with USCIS before the petitioner completed the adoption or obtained legal custody for purposes of emigration and adoption. (See also 8 CFR 204.309(b)(1)). This section does not preclude an agency or person from acting as a primary provider in cases in which adoption services were already provided before that agency or person became involved. (e) The agency or person, when acting as a primary provider, provides adoption services in a manner that, consistent with U.S. and foreign law, collects all appropriate and required documentation to demonstrate the child’s eligibility for immigrant visa petition approval and visa issuance under section 101(b)(1)(F) or (G) of the INA. ■ 29. Amend § 96.46 by revising paragraphs (b)(4) and (c)(1) through (3) to read as follows: § 96.46 Using providers in foreign countries. * * * * * (b) * * * (4) Requires the foreign supervised provider to compensate its directors, officers, and employees or agents who perform any activity related to an intercountry adoption on a fee-forservice, hourly wage, or salary basis, rather than based on whether a child is placed for adoption, located for an adoptive placement, or on a similar contingent fee basis; * * * * * (c) * * * (1) Any necessary consent to termination of parental rights or to adoption obtained by the foreign provider was obtained in accordance with applicable U.S. law, foreign law and, in Convention countries, Article 4 of the Convention; in non-Convention countries, any necessary consents should be obtained consistent with Article 4 of the Convention. (2) Any background study and report on a child in a case involving immigration to the United States (an incoming case) performed by the foreign PO 00000 Frm 00016 Fmt 4701 Sfmt 4702 provider was performed in accordance with applicable U.S. law, foreign law and, in Convention countries, Article 16 of the Convention; in non-Convention countries, such background study and report should be performed consistent with Article 16 of the Convention. (3) Any home study and report on prospective adoptive parent(s) in a case involving emigration from the United States (an outgoing Convention adoption case) performed by the foreign provider was performed in accordance with applicable U.S. law, foreign law and Article 15 of the Convention. ■ 30. Add paragraph (e) to § 96.47 to read as follows: § 96.47 Preparation of home studies in incoming cases. * * * * * (e) If, based on new information relating to paragraph (a)(1) of this section or 8 CFR 204.311, the agency or person withdraws its recommendation of the prospective adoptive parent(s) for adoption or the agency that reviewed and approved a home study withdraws any such approval of the home study required under paragraph (c) of this section, the agency or person must: (1) Notify the prospective adoptive parent(s), and if applicable, the home study preparer, of its withdrawal and the reasons for its withdrawal, in writing, within five business days of the decision, and prior to notifying USCIS; (2) Notify USCIS of its withdrawal of its recommendation and/or approval and the reasons for its withdrawal, in writing, and within five business days of notifying the prospective adoptive parent(s), in accordance with the agency’s or person’s ethical practices and responsibilities under § 96.35(a); (3) Maintain written records of the withdrawal of its recommendation and/ or approval and the good cause reasons for the withdrawal; (4) Handle fees for services not yet performed in accordance with § 96.40(a); and (5) Comply with any applicable State law requirements and notifies any State competent authority discussed in 8 CFR 204.311(t). ■ 31. Revise § 96.48 to read as follows: § 96.48 Preparation and training of prospective adoptive parent(s) in incoming cases. (a)(1) The agency or person verifies that prospective adoptive parent(s) have satisfactorily completed the training required by their State of actual or proposed residence in the United States to adopt a child through the State’s child welfare system, or an equivalent where a State program is unavailable for E:\FR\FM\08SEP2.SGM 08SEP2 mstockstill on DSK3G9T082PROD with PROPOSALS2 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules prospective adoptive parent(s) who wish to complete an intercountry adoption. The agency or person shall not refer a child or charge for or contractually obligate the prospective adoptive parent(s) to pay for the following adoption services until the training required under this paragraph has been completed: (i) Identifying a child for adoption and arranging an adoption; (ii) Monitoring of a case after a child has been placed with prospective adoptive parent(s) until final adoption; and (iii) Where made necessary by disruption before final adoption, assuming custody and providing (including facilitating provision of) child care or any other social service pending an alternative placement. (2) This section does not preclude an agency or person from providing adoption services in cases in which that agency or person was not involved prior to the identification of a particular child or in cases where documented, compelling, urgent, and extraordinary circumstances involving the child’s best interests require an expedited referral. Upon referral in such cases, the primary provider will be required to ensure the necessary training has been completed in a reasonable time. (b) The agency or person also provides the prospective adoptive parent(s) with at least seven additional hours (independent of the home study) of preparation and training, as described in this paragraph, designed to promote a successful intercountry adoption. The agency or person provides such training before the prospective adoptive parent(s) travel to adopt the child or the child is placed with the prospective adoptive parent(s) for adoption. The preparation and training provided by the agency or person includes a combination of interactive discussion, counseling, and development of solution-oriented strategies to address the following topics: (1) The intercountry adoption process, the general characteristics and needs of children awaiting adoption, and the incountry conditions that affect children in the foreign country from which the prospective adoptive parent(s) plan to adopt; (2) The effects and long-term impact on children of the behavioral, medical, and emotional difficulties that may be prevalent in children who have faced the following: (i) Malnutrition, relevant environmental toxins, maternal substance abuse, any other known genetic, health, emotional, and developmental risk factors associated VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 with children from the expected country of origin; (ii) Leaving familiar ties and surroundings and the grief, loss, and identity issues that children may experience in intercountry adoption; (iii) Institutionalization, including the effect on children of the length of time spent in an institution and of the type of care provided in the expected country of origin; (iv) Attachment disorders and other emotional problems that institutionalized or traumatized children and children with a history of multiple caregivers may experience, before and after their adoption; (3) The general characteristics of successful intercountry adoptive placements, including information on the financial resources, time, and insurance coverage necessary for handling the child’s and family’s adjustment and medical, therapeutic, and educational needs, including language acquisition; (4) The family’s experience with adoption and discussion of any previous intercountry or domestic adoptions, anticipated future plans for bringing additional children into the family, the prospective adoptive parent(s) past and present parenting experience, the number and ages of other children, prior home study approvals and denials, past compliance with post-placement reporting required by the country of origin, and any medical, educational, or therapeutic needs of the current members of the family; (5) Post-placement and post-adoption services that may assist the family to respond effectively to adjustment, behavioral, and other difficulties that may arise after the child is placed with the adoptive parent(s); (6) General information about disruption of placement and dissolution of adoption and discussion of issues that may lead to disruption or dissolution, including how parent(s) may locate appropriate resources and specific points of contact for support; (7) Any disrupted placements or dissolved adoptions in which the prospective adoptive parent(s) were involved, reasons for the past disruption or dissolution, and information about the welfare and whereabouts of any previously adopted children; (8) The laws and adoption processes of the expected country or countries of origin, including foreseeable delays and impediments to finalization of an adoption; U.S. immigration processes and procedures relevant to the expected country (or countries) of origin; and the prospective adoptive parent(s)’ rights and responsibilities in the event they PO 00000 Frm 00017 Fmt 4701 Sfmt 4702 62337 determine not to proceed after arriving in the child’s country of origin; (9) The long-term implications for a family that has become multicultural through intercountry adoption; (10) For prospective adoptive parent(s) seeking approval to adopt two or more unrelated children, the differing needs of such children based on their respective ages, backgrounds, length of time outside of family care, and the time management requirements and other challenges that may be presented in such an adoption plan; and (11) Any reporting requirements associated with intercountry adoptions, including any post-placement or postadoption reports required by the expected country of origin. (c)(1) In order to prepare prospective adoptive parent(s) as fully as possible for the adoption of a particular child, the agency or person provides: (i) At least three additional hours of training that: (A) Take place after identification of a particular child and prior to acceptance of the referral by the prospective adoptive parent(s); and (B) Include counseling on: (1) The child’s history and cultural, racial, religious, ethnic, and linguistic background; (2) The known health risks in the specific region or country where the child resides; and (3) Any other medical, social, background, birth history, educational data, developmental history, or any other data known about the particular child; and (ii) A statement from the primary provider suitable for submission with the immigrant petition signed under penalty of perjury under United States law, indicating that all of the preparation and training provided for in § 96.48 has been completed. (2) This section does not preclude an agency or person from providing adoption services in cases in which that agency or person was not involved prior to the identification of a particular child. If the child was referred prior to the involvement of an agency or person, the agency or person must complete this training requirement within a reasonable time after the agency or person is engaged to provide adoption services or must verify that it has already been completed. The agency or person may not continue to provide adoption services if a reasonable time has elapsed without completing the training. (d) The agency or person provides such training through a combination of appropriate methods, including: E:\FR\FM\08SEP2.SGM 08SEP2 mstockstill on DSK3G9T082PROD with PROPOSALS2 62338 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules (1) Collaboration among agencies or persons to share resources to meet the training needs of prospective adoptive parents; (2) Group seminars offered by the agency or person or other agencies or training entities; (3) Individual counseling sessions; and (4) Video, computer-assisted, or distance learning methods using standardized curricula; not to exceed 25 percent of the total training time for prospective adoptive parent(s) residing in the United States. (e) The agency or person provides additional in-person, individualized counseling and preparation, as needed, to meet the needs of the prospective adoptive parent(s) in light of the particular child to be adopted and his or her special needs, and any other training or counseling needed in light of the child background study or the home study. (f) The agency or person provides the prospective adoptive parent(s) with additional training or counseling, if requested by the prospective adoptive parent(s), and information about print, internet, and other resources available for continuing to acquire information about common behavioral, medical, and other issues; connecting with parent support groups, adoption clinics and experts; crisis intervention and respite care; and seeking appropriate help when needed, including points of contact for assistance to disrupt a placement for adoption or dissolve an adoption in a manner that ensures the best interests of the child. (g) The agency or person shall not exempt prospective adoptive parent(s) from all or part of the verification requirements in paragraph (a)(1) of this section, from the training requirements in paragraph (c)(1)(i) of this section, or from the certification requirements in paragraph (c)(1)(ii) of this section, but may exempt prospective adoptive parents from completing all or part of the training requirements referenced in paragraphs (a) and (b) of this section when: (1) The agency or person confirms that no more than 24 months have elapsed since the prospective adoptive parent(s) satisfactorily completed identical training; and (2) The agency or person determines that such previous training was adequate. (h) The agency or person records the dates, nature, and extent of the training and preparation provided to the prospective adoptive parent(s) including, but not limited to, all of the training required in paragraphs (a) VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 through (c) and (e) and (f) of this section in the adoption record. ■ 32. Revise § 96.50(c), (d), and (h) to read as follows: § 96.50 Placement and post-placement monitoring until final adoption in incoming cases. * * * * * (c) When a placement for adoption is in crisis in the post-placement phase, the agency or person takes all appropriate measures to provide or arrange for counseling by an individual or entity with appropriate skills to assist the family in dealing with the problems that have arisen; informs the parents of local and State laws and legal resources pertaining to disruption of placements and dissolution of adoptions and appropriate measures for making another placement of the child; explains potential risks to the child; and provides resources for addressing potential future crises including dissolution. (d) If counseling does not succeed in resolving the crisis and the placement is disrupted, the agency or person assuming custody of the child assumes responsibility for making another placement of the child, in accordance with the agency’s or person’s written policy for handling disruptions. * * * * * (h) The agency or person takes steps to: (1) Ensure that an order declaring the adoption as final is sought by the prospective adoptive parent(s), and in Convention adoptions is entered in compliance with section 301(c) of the IAA (42 U.S.C. 14931(c)); and (2)(i) Notify the Secretary of the finalization of the adoption within thirty days of the entry of the order; or (ii) Notify the Secretary of the disruption of, or where appropriate, the intent to disrupt, the placement within 24 hours, and sooner than that if possible, upon learning of such information. ■ 33. Revise § 96.51(b), (c), and (d) to read as follows: § 96.51 Post-adoption services in incoming cases. * * * * * (b) The agency or person informs the prospective adoptive parent(s) whether post-adoption services, including any post-adoption reporting, are included in the agency’s or person’s fees and, if not, enumerates the cost the agency or person would charge for such services. The agency or person also informs the prospective adoptive parent(s) in the adoption services contract whether it will provide services if an adoption is dissolved, and, if it indicates it will, it PO 00000 Frm 00018 Fmt 4701 Sfmt 4702 provides a plan describing the agency’s or person’s responsibilities or if it will not, provides information about local, State, and other entities that may be consulted for assistance in the event an adoption is dissolved. (c) When post-adoption reports are required by the child’s country of origin, the agency or person includes a requirement for such reports in the adoption services contract and takes all appropriate measures to encourage adoptive parent(s) to provide such reports, and notifies the Secretary in the event an adoptive parent(s) refuses to comply with such requirements. (d) The agency or person notifies the Secretary of the dissolution of, or where appropriate, the intent to dissolve a final adoption immediately upon discovering such information. The agency or person does not return from the United States an adopted child whose adoption has been dissolved unless the Central Authority of the country of origin and the Secretary have approved the return in writing. ■ 34. Amend § 96.52 by revising paragraph (b)(1) and adding paragraph (f) to read as follows: § 96.52 Performance of Convention communication and coordination functions in incoming cases. * * * * * (b) * * * (1) Transmit on a timely basis the home study, including any updates and amendments, to the Central Authority or other competent authority of the child’s country of origin; * * * * * (f) The agency or person will notify the Secretary of the disruption of a placement or dissolution of an adoption immediately, or within 24 hours, and sooner than that if possible, upon discovering such information and, in consultation with the Secretary, take appropriate steps to notify the Central Authority or other competent authority in the child’s country of origin. § 96.53 [Amended] 35. Amend § 96.53(a)(2) by removing the semicolon from the end of the paragraph and adding a semicolon after ‘‘section’’. ■ 36. Amend § 96.60(b) by adding a sentence to the end of the paragraph to read as follows: ■ § 96.60 Length of accreditation or approval period. * * * * * (b) * * * For agencies and persons that meet these two criteria, the Secretary, in his or her discretion, may consider additional factors in deciding E:\FR\FM\08SEP2.SGM 08SEP2 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules upon an extension including, but not limited to, the agency’s or person’s volume of intercountry adoption cases in the year preceding the application for renewal or extension, the agency’s or person’s State licensure record, and the number of extensions available. Subpart I—Routine Oversight by Accrediting Entities 37. Amend § 96.66: a. In paragraph (a) by removing ‘‘investigate’’ from the last sentence and adding in its place ‘‘review’’; and ■ b. By revising paragraph (b) and adding paragraph (d). The additions and revisions read as follows: ■ ■ § 96.66 Oversight of accredited agencies and approved persons by the accrediting entity. * * * * (b) An accrediting entity may, on its own initiative, conduct site visits to inspect an agency’s or person’s premises or programs, with or without advance notice, for purposes of random verification of its continued compliance or to review a complaint. The accrediting entity may consider any information about the agency or person that becomes available to it about the compliance of the agency or person. The provisions of §§ 96.25 and 96.26 govern requests for and use of information. If an agency or person fails to provide requested documents or information within a reasonable time, or to make employees available as requested, or engages in deliberate destruction of documentation during the accreditation process or any subsequent investigation or review, the accrediting entity may deny accreditation or approval or, in the case of an accredited agency or approved person, take appropriate adverse action against the agency or person solely on that basis. * * * * * (d) The accrediting entity must require accredited agencies and approved persons to self-report significant changes and occurrences, pursuant to the accrediting entity’s policies and procedures, to demonstrate their ongoing compliance with the standards and to maintain up to date contact information and data. mstockstill on DSK3G9T082PROD with PROPOSALS2 * Subpart J—Oversight Through Review of Complaints ■ 38. Revise § 96.68 to read as follows: § 96.68 Scope. The provisions in this subpart establish the procedures that will be used for reviewing complaints against VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 accredited agencies and approved persons (including complaints concerning their use of supervised providers and verification of adoption services of foreign providers) that raise an issue of compliance with the Convention, the IAA, the UAA, or the regulations implementing the IAA or UAA, as determined by the accrediting entity or the Secretary, and that are therefore relevant to the oversight functions of the accrediting entity or the Secretary. ■ 39. Revise § 96.69(b) to read as follows: § 96.69 Filing of complaints against accredited agencies and approved persons. * * * * * (b) Complaints against accredited agencies and approved persons that raise an issue of compliance with the Convention, the IAA, the UAA, or the regulations implementing the IAA or UAA by parties to specific intercountry adoption cases and relating to that case may first be submitted by the complainant in writing to the primary provider and to the agency or person providing adoption services, if a U.S. provider is different from the primary provider, or the complaint may be filed immediately with the Complaint Registry in accordance with § 96.70. If the complainant considers that a complaint that was submitted to the complaint processes of the primary provider or the agency or person providing the services (if different) has not been resolved through that process, or if a complaint that it so submitted is resolved by an agreement to take action but the primary provider or the agency or person providing the service (if different) fails to take such action within thirty days of agreeing to do so, the complaint may also be filed with the Complaint Registry in accordance with § 96.70. * * * * * ■ 40. Amend § 96.70: ■ a. In paragraph (a) by removing ‘‘establish’’ from the first sentence and adding in its place ‘‘maintain’’; and ■ b. By revising paragraph (b)(1) to read as follows: § 96.70 Operation of the Complaint Registry. * * * * * (b) * * * (1) Receive and maintain records of complaints about accredited agencies and approved persons, including complaints concerning their use of supervised providers and verification of adoption services provided by foreign providers and complaints regarding compliance with CSA, and make such PO 00000 Frm 00019 Fmt 4701 Sfmt 4702 62339 complaints available to the appropriate accrediting entity and the Secretary. * * * * * § 96.71 [Amended] 41. Amend § 96.71: a. In paragraph (a) by removing ‘‘investigating’’ from the first sentence and adding in its place ‘‘reviewing’’; ■ b. In paragraph (b)(1) by removing ‘‘that’’ and adding in its place ‘‘whether’’; and ■ c. In paragraph (c) by removing ‘‘investigation’’ from the first sentence, and adding in its place ‘‘review’’. ■ 42. Revise § 96.72(b)(2) to read as follows: ■ ■ § 96.72 Referral of complaints to the Secretary and other authorities. * * * * * (b) * * * (2) In violation of the INA (8 U.S.C. 1101 et seq.); or * * * * * Subpart K—Adverse Action by the Accrediting Entity § 96.77 [Amended] 43. Amend § 96.77 by removing ‘‘§§ 96.33(e)’’ and adding in its place ‘‘§§ 96.33(f)’’, in paragraphs (b) and (c). ■ § 96.79 [Amended] 44. Amend § 96.79(c) by removing the words ‘‘The United States district court shall review the adverse action in accordance with 5 U.S.C. 706.’’ ■ § 96.87 [Amended] 45. Amend § 96.87 by removing ‘‘§§ 96.33(e)’’ and adding in its place ‘‘§§ 96.33(f)’’. ■ 46. Add subpart N to read as follows: ■ Subpart N—Country Specific Authorization Sec. 96.95 Scope. 96.96 Country specific authorization determined by the Secretary. 96.97 Application for CSA, length of CSA, reapplication. 96.98 Renewal of CSA; transfer of cases when renewal not sought. 96.99 Oversight of CSA by the accrediting entity. 96.100 Oversight of CSA through filing of complaints against accredited agencies and approved persons. 96.101 Review by the accrediting entity of complaints relating to compliance with CSA against accredited agencies and approved persons. 96.102 Referral of complaints relating to CSA to the Secretary and other authorities. 96.103 Adverse action against accredited agencies or approved persons not in substantial compliance with CSA. E:\FR\FM\08SEP2.SGM 08SEP2 62340 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules 96.104 Procedures governing CSA-related adverse action by the accrediting entity. 96.105 Responsibilities of the accredited agency, approved person, and accrediting entity following CSA-related adverse action by the accrediting entity. 96.106 Accrediting entity procedures to terminate CSA-related adverse action. 96.107 Administrative or judicial review of adverse action relating to CSA by the accrediting entity. 96.108 Oversight and monitoring of CSA by the Secretary. 96.109 Effective dates; transition. § 96.95 Scope. This subpart applies when the Secretary, in his or her discretion, and in consultation with the Secretary of Homeland Security, determines that it is necessary to designate one or more countries for which an accredited agency or approved person must have country-specific authorization (CSA) in addition to accreditation or approval to act as primary provider under § 96.14(a) in connection with an intercountry adoption in those specified countries. Accreditation or approval is required for all agencies or persons who offer, provide, or facilitate the provision of any adoption service in the United States in connection with an intercountry adoption case, unless such agencies or persons are acting as supervised providers or exempted providers in that case. CSA is required for accredited agencies or approved persons to offer, provide, facilitate, verify, or supervise the provision of adoption services, except as a supervised provider or an exempted provider, in intercountry adoption cases with respect to a particular country designated for CSA. mstockstill on DSK3G9T082PROD with PROPOSALS2 § 96.96 Country specific authorization determined by the Secretary. (a) The Secretary may, in his or her discretion, in consultation with the Secretary of Homeland Security, determine that CSA is required for accredited agencies or approved persons to act as a primary provider in intercountry adoption cases with a particular foreign country. The Secretary will publish in the Federal Register a list of countries for which CSA is required. Changes to that list will also be announced via a Federal Register notice. (b) An accredited agency or approved person that has received CSA from an accrediting entity and meets the requirements of § 96.97, may act as a primary provider in intercountry adoption cases with respect to the specific foreign country. (c) In each intercountry adoption case with a country designated by the VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 Secretary as requiring CSA, an accredited agency or approved person with the applicable CSA must act as the primary provider. (d) CSA does not constitute authorization from a foreign government to engage in activities related to intercountry adoption. However, CSA ceases automatically and immediately upon the corresponding foreign country’s withdrawal or cancellation of its authorization of the agency or person. (e) To receive CSA, accrediting entities may also require an accredited agency or approved person to demonstrate that it is in substantial compliance with one or more selected accreditation and approval standards in subpart F of this part, as determined using a method approved by the Secretary, in consultation with the Secretary of Homeland Security, that may include: (1) Increasing the weight of selected standards from subpart F; and (2) Requiring the provision of additional or specified evidence to support compliance with selected standards from subpart F. § 96.97 Application for CSA, length of CSA, reapplication. (a) Application procedures. The accrediting entity will establish application procedures for CSA. The procedures must be consistent with this section and be approved by the Secretary. Application for CSA is subject to any relevant provisions of an accrediting entity’s fee schedule. CSA is governed by the relevant terms of the accrediting entity’s rating method in § 96.27(d) and any applicable addenda thereto that contain country specific compliance criteria, published by the accrediting entity and approved by the Secretary. (b) Timing of application for CSA. The application procedures for CSA may provide that application occurs, to the extent possible, concurrently with the initial application for accreditation or approval in accordance with subpart D or at renewal pursuant to the process outlined in subpart H. These procedures must also establish the process for an accredited agency or approved person to apply for CSA for a foreign country after its initial application for accreditation or approval or its renewal application. (c) The accrediting entity must routinely inform applicants in writing of its decisions on their CSA applications—whether an application has been granted or denied—when those decisions are finalized. The accrediting entity must routinely provide this information to the Secretary in writing. PO 00000 Frm 00020 Fmt 4701 Sfmt 4702 (d) The accrediting entity may, in its discretion, communicate with agencies and persons that have applied for CSA about the status of their pending applications to afford them an opportunity to correct deficiencies that may hinder or prevent approval of CSA. (e) Length of CSA. The initial period of CSA will extend from the date CSA is granted until the end of the agency’s or person’s current period of accreditation or approval, except that a grant of CSA will not be for less than three years and will not exceed five years. In cases where an agency’s accreditation or a person’s approval will end before the minimum three years for CSA has passed, CSA will be suspended until the accreditation or approval has been renewed. Notwithstanding the CSA period granted, the CSA period ends upon the suspension or cancellation of the agency’s accreditation or person’s approval or the agency’s or person’s debarment by the Secretary. (f) Review of decisions to deny CSA. (1) There is no administrative or judicial review of an accrediting entity’s decision to deny an application for CSA. As provided in § 96.107, the decision to deny includes: (i) A denial of the agency’s or person’s initial application for CSA; (ii) A denial of an application made after cancellation or refusal to renew by the accrediting entity; and (iii) A denial of an application made after cancellation or debarment by the Secretary. (2) The agency or person may petition the accrediting entity for reconsideration of a denial. The accrediting entity must establish internal review procedures that provide an opportunity for an agency or person to petition for reconsideration of the denial. § 96.98 Renewal of CSA; transfer of cases when renewal not sought. (a) The accrediting entity must advise accredited agencies and approved persons that it monitors the date by which they should seek renewal of CSA so that the renewal process can reasonably be completed prior to the expiration of the agency’s or person’s current accreditation or approval. Consistent with § 96.63, if the accredited agency or approved person does not wish to renew CSA, it must immediately notify the accrediting entity and take all necessary steps to complete its intercountry adoption cases and to transfer its pending intercountry adoption cases and adoption records to other accredited agencies or approved persons with the applicable CSA, or a E:\FR\FM\08SEP2.SGM 08SEP2 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules State archive, as appropriate, under the oversight of the accrediting entity, before its CSA expires. (b) The accredited agency or approved person may seek renewal of CSA from a different accrediting entity than the one that handled its prior application. If it changes accrediting entities, the accredited agency or approved person must so notify the accrediting entity that handled its prior application by the date on which the agency or person must (pursuant to paragraph (a) of this section) seek renewal of its status. The accredited agency or approved person must follow the new accrediting entity’s instructions when submitting a request for renewal and preparing documents and other information for the new accrediting entity to review in connection with the renewal request. (c) The accrediting entity must process the request for CSA renewal in a timely fashion. Before deciding whether to renew CSA, the accrediting entity may, in its discretion, advise the agency or person of any deficiencies that may hinder or prevent its renewal and defer a decision to allow the agency or person to correct the deficiencies. The accrediting entity must notify the accredited agency, approved person, and the Secretary in writing when it renews or refuses to renew an agency’s or person’s CSA. (d) Sections 96.24, 96.25, and 96.26, which relate to evaluation procedures and to requests for and use of information, and § 96.27, which relates to the procedures and substantive criteria for evaluating applicants for accreditation or approval or CSA will govern determinations about whether to renew accreditation or approval or make a CSA determination. mstockstill on DSK3G9T082PROD with PROPOSALS2 § 96.99 Oversight of CSA by the accrediting entity. (a) The accrediting entity must monitor agencies to whom it has granted CSA at least annually to ensure that they are in substantial compliance with the compliance criteria for the standards in subpart F of this part, as determined using a method approved by the Secretary in accordance with § 96.27(d). The accrediting entity must review complaints about accredited agencies and approved persons, as provided in subpart J of this part. (b) An accrediting entity may, on its own initiative, conduct site visits to inspect an agency’s or person’s premises or programs, with or without advance notice, for purposes of random verification of its continued compliance with respect to CSA or to investigate a complaint relating to compliance with CSA. The accrediting entity may VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 consider any information about the agency or person that becomes available to it about the compliance of the agency or person. The provisions of §§ 96.25 and 96.26 govern requests for and use of information. (c) The accrediting entity must require accredited agencies or approved persons to attest annually that they have remained in substantial compliance with applicable CSA criteria and to provide supporting documentation to indicate such ongoing compliance with the applicable standards in subpart F of this part. § 96.100 Oversight of CSA through filing of complaints against accredited agencies and approved persons. (a) Complaints relating to CSA will be subject to review by the accrediting entity pursuant to § 96.101, when submitted as provided in this section and § 96.70. (b) Complaints related to compliance with CSA against accredited agencies and approved persons that raise an issue of compliance with one or more of the accreditation and approval standards in subpart F of this part may be submitted in accordance with § 96.69. (c) An individual who is not party to a specific intercountry adoption case but who has information about an accredited agency or approved person may provide that information by filing it in the form of a complaint with the Complaint Registry in accordance with § 96.70. (d) A Federal, State, or local government official or a foreign Central Authority may file a complaint with the Complaint Registry in accordance with § 96.70, or may raise the matter in writing directly with the accrediting entity, who will record the complaint in the Complaint Registry, or with the Secretary, who will record the complaint in the Complaint Registry, if appropriate, and refer it to the accrediting entity for review pursuant to § 96.71 or take such other action as the Secretary deems appropriate. § 96.101 Review by the accrediting entity of complaints relating to compliance with CSA against accredited agencies and approved persons. (a) The accrediting entity must establish written procedures, including deadlines, for recording, reviewing, and acting upon complaints relating to compliance with CSA that it receives pursuant to §§ 96.69 and 96.70(b)(1). The procedures must be consistent with this section and be approved by the Secretary. The accrediting entity must make written information about its complaint procedures available upon request. PO 00000 Frm 00021 Fmt 4701 Sfmt 4702 62341 (b) If the accrediting entity determines that a complaint relating to CSA raises an issue of compliance with one or more of the accreditation and approval standards in subpart F of this part: (1) The accrediting entity must verify whether the complainant has already attempted to resolve the complaint as described in § 96.69(b) and, if not, may refer the complaint to the agency or person, or to the primary provider, for attempted resolution through its internal complaint procedures; (2) The accrediting entity may conduct whatever investigative activity (including site visits) it considers necessary to determine whether any relevant accredited agency or approved person holding CSA may maintain CSA as provided in § 96.27. The provisions of §§ 96.25 and 96.26 govern requests for and use of information. The accrediting entity must give priority to complaints submitted pursuant to § 96.69(d); and (3) If the accrediting entity determines that the agency or person may not maintain CSA, it must take adverse action pursuant to section § 96.103. (c) When the accrediting entity has completed its complaint review process, it must provide written notification of the outcome of its investigation, and any actions taken, to the complainant, or to any other entity that referred the information. (d) The accrediting entity will enter information about the outcomes of its investigations and its actions on complaints into the Complaint Registry as provided in its agreement with the Secretary. (e) The accrediting entity may not take any action to discourage an individual from, or retaliate against an individual for, making a complaint, expressing a grievance, questioning the conduct of, or expressing an opinion about the performance related to compliance with CSA of an accredited agency, an approved person, or the accrediting entity. § 96.102 Referral of complaints relating to CSA to the Secretary and other authorities. (a) An accrediting entity must report promptly to the Secretary any substantiated complaint related to compliance with CSA that: (1) Reveals that an accredited agency or approved person has engaged in a pattern of serious, willful, grossly negligent, or repeated failures to comply with the increased evidentiary requirements and weight of standards in subpart F of this part; or (2) Indicates that continued CSA would not be in the best interests of the children and families concerned. E:\FR\FM\08SEP2.SGM 08SEP2 62342 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules (b) An accrediting entity must, after consultation with the Secretary, refer, as appropriate, to a State licensing authority, the Attorney General, or other law enforcement authorities any substantiated complaints related to compliance with CSA that involve conduct that is: (1) Subject to the civil or criminal penalties imposed by section 404 of the IAA (42 U.S.C. 14944); (2) In violation of the INA (8 U.S.C. 1101 et seq.); or (3) Otherwise in violation of Federal, State, or local law. (c) When an accrediting entity makes a report pursuant to paragraph (a) or (b) of this section, it must indicate whether it is recommending that the Secretary take action to debar the agency or person, either temporarily or permanently. § 96.103 Adverse action against accredited agencies or approved persons not in substantial compliance with CSA. mstockstill on DSK3G9T082PROD with PROPOSALS2 (a) The accrediting entity must take adverse action when it determines that an accredited agency or approved person with CSA may not maintain CSA as provided in § 96.27(d). The accrediting entity is authorized to take any of the following actions against an accredited agency or approved person whose compliance the entity oversees. Each of these actions by an accrediting entity is considered a CSA-related adverse action for purposes of the regulations in this part: (1) Suspending CSA; (2) Canceling CSA; (3) Refusing to renew CSA; (4) Requiring an accredited agency or approved person to take a specific corrective action with respect to CSA to bring itself into compliance; and (5) Imposing other sanctions including, but not limited to, requiring an accredited agency or approved person to cease providing adoption services in a particular case or in a specific foreign country. (b) A CSA-related adverse action taken under this section relates only to an agency’s or person’s CSA. Such adverse action may be relevant to, but is not controlling of, adverse action related to accreditation and approval under § 96.75. § 96.104 Procedures governing CSArelated adverse action by the accrediting entity. (a) The accrediting entity must decide which CSA-related adverse action to take based on the seriousness and type of violation and on the extent to which the accredited agency or approved person has corrected or failed to correct VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 deficiencies of which it has been previously informed. The accrediting entity must notify an accredited agency or approved person in writing of its decision to take a CSA-related adverse action against the agency or person. The accrediting entity’s written notice must identify the deficiencies prompting imposition of the CSA-related adverse action. (b) Before taking a CSA-related adverse action, the accrediting entity may, in its discretion, advise an accredited agency or approved person in writing of any deficiencies in its performance that may warrant a CSArelated adverse action and provide it with an opportunity to demonstrate that a CSA-related adverse action would be unwarranted before the CSA-related adverse action is imposed. If the accrediting entity takes the CSA-related adverse action without such prior notice, it must provide a similar opportunity to demonstrate that the CSA-related adverse action was unwarranted after the CSA-related adverse action is imposed, and may withdraw the CSA-related adverse action based on the information provided. (c) The provisions in §§ 96.25 and 96.26 govern requests for and use of information. § 96.105 Responsibilities of the accredited agency, approved person, and accrediting entity following CSA-related adverse action by the accrediting entity. (a) If the accrediting entity takes a CSA-related adverse action against an agency or person, the action will take effect immediately unless the accrediting entity agrees to a later effective date. (b) If the accrediting entity suspends or cancels the agency’s or person’s CSA, the agency or person must immediately, or by any later effective date set by the accrediting entity, cease to provide adoption services in all intercountry adoption cases relating to the corresponding foreign country. All procedures in § 96.77(b) governing the transfer of cases apply, except that the accredited agencies or approved persons that assume responsibility for transferred cases must have the applicable CSA. (c) If the accrediting entity refuses to renew the CSA of an agency or person, the agency or person must cease to provide adoption services in all foreign countries corresponding to that CSA by the expiration of the earlier of either the agency’s or person’s CSA or the agency’s or person’s accreditation or approval. It must take all necessary steps to complete its intercountry adoption cases PO 00000 Frm 00022 Fmt 4701 Sfmt 4702 in those foreign countries before its CSA expires. All procedures in § 96.77(c) governing the transfer of cases apply, except that, to the extent possible, the accredited agencies or approved persons that assume responsibility for transferred cases must have the applicable CSA. (d) The accrediting entity must notify the Secretary, in accordance with procedures established in its agreement with the Secretary, when it takes an adverse action that changes the CSA status of an agency or person. The accrediting entity must also notify the relevant State licensing authority as provided in the agreement. § 96.106 Accrediting entity procedures to terminate CSA-related adverse action. (a) The accrediting entity must maintain internal petition procedures, approved by the Secretary, to give accredited agencies and approved persons an opportunity to terminate CSA-related adverse actions on the grounds that the deficiencies necessitating the adverse action have been corrected. The accrediting entity must inform the agency or person of these procedures when it informs them of the CSA-related adverse action pursuant to § 96.104(a). An accrediting entity is not required to maintain procedures to terminate CSA-related adverse actions on any other grounds, or to maintain procedures to review its CSA-related adverse actions, and must obtain the consent of the Secretary if it wishes to make such procedures available. (b) An accrediting entity may terminate a CSA-related adverse action it has taken only if the agency or person demonstrates to the satisfaction of the accrediting entity that the deficiencies that led to the CSA-related adverse action have been corrected. The accrediting entity must notify an agency or person in writing of its decision on the petition to terminate the CSArelated adverse action. (c) If the accrediting entity described in paragraph (b) of this section is no longer providing accreditation or approval services, the agency or person may petition any accrediting entity with jurisdiction over its application. (d) If the accrediting entity cancels or refuses to renew CSA, and does not terminate the CSA-related adverse action pursuant to paragraph (b) of this section, the agency or person may reapply for CSA. Before doing so, the agency or person must request and obtain permission to make a new application from the accrediting entity that cancelled or refused to renew its CSA or, if such entity is no longer E:\FR\FM\08SEP2.SGM 08SEP2 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Proposed Rules designated as an accrediting entity, from any alternate accrediting entity designated by the Secretary to give such permission. The accrediting entity may grant such permission only if the agency or person demonstrates to the satisfaction of the accrediting entity that the specific deficiencies that led to the CSA cancellation or refusal to renew CSA have been corrected. (e) If the accrediting entity grants the agency or person permission to reapply, the agency or person may file an application with that accrediting entity in accordance with subpart D of this part. (f) Nothing in this section shall be construed to prevent an accrediting entity from withdrawing a CSA-related adverse action if it concludes that the action was based on a mistake of fact or was otherwise in error. Upon taking such action, the accrediting entity will take appropriate steps to notify the Secretary and the Secretary will take appropriate steps to notify the relevant authorities or entities. mstockstill on DSK3G9T082PROD with PROPOSALS2 § 96.107 Administrative or judicial review of adverse action relating to CSA by the accrediting entity. (a) Except to the extent provided by the procedures in § 96.106, a CSArelated adverse action by an accrediting entity shall not be subject to administrative review. (b) Section 202(c)(3) of the IAA (42 U.S.C. 14922(c)(3)) provides for judicial review in Federal court of adverse actions by an accrediting entity, regardless of whether the entity is described in § 96.5(a) or (b). When any petition brought under section 202(c)(3) raises as an issue whether the deficiencies necessitating the CSArelated adverse action have been corrected, the procedures maintained by the accrediting entity pursuant to § 96.106 must first be exhausted. CSArelated adverse actions are only those actions listed in § 96.103. There is no judicial review of an accrediting entity’s decision to deny CSA, including: (1) A denial of an initial application; (2) A denial of an application made after cancellation or refusal to renew by the accrediting entity; and (3) A denial of an application made after cancellation or debarment by the Secretary. (c) In accordance with section 202(c)(3) of the IAA (42 U.S.C. 14922(c)(3)), an accredited agency or approved person that is the subject of a CSA-related adverse action by an accrediting entity may petition the United States district court in the judicial district in which the agency is located or the person resides to set aside VerDate Sep<11>2014 20:24 Sep 07, 2016 Jkt 238001 the adverse action imposed by the accrediting entity. When an accredited agency or approved person petitions a United States district court to review the CSA-related adverse action of an accrediting entity, the accrediting entity will be considered an agency as defined in 5 U.S.C. 701 for the purpose of judicial review of the adverse action. § 96.108 Oversight and monitoring of CSA by the Secretary. (a) The Secretary’s response to CSA related actions by the accrediting entity. There is no administrative review by the Secretary of an accrediting entity’s decision to deny CSA, or of any decision by an accrediting entity to take CSA-related adverse action. (b) Suspension or cancellation of CSA by the Secretary. (1) The Secretary must suspend or cancel the CSA granted by an accrediting entity when the Secretary finds, in the Secretary’s discretion, that the agency or person is substantially out of compliance with the relevant standards in subpart F of this part and that the accrediting entity has failed or refused, after consultation with the Secretary, to take action. (2) The Secretary may suspend or cancel CSA granted by an accrediting entity if the Secretary finds that such action: (i) Will protect the interests of children; (ii) Will further U.S. foreign policy or national security interests; or (iii) Will protect the ability of U.S. citizens to adopt children. (3) If the Secretary suspends or cancels the CSA of an agency or person, the Secretary will take appropriate steps to notify the accrediting entity, the Permanent Bureau of the Hague Conference on Private International Law, and the applicable foreign country, as appropriate. (c) Reinstatement of CSA after suspension or cancellation by the Secretary. (1) An agency or person may petition the Secretary for relief from the Secretary’s suspension or cancellation of CSA on the grounds that the deficiencies necessitating the suspension or cancellation have been corrected. If the Secretary is satisfied that the deficiencies that led to the suspension or cancellation have been corrected, the Secretary shall, in the case of a suspension, terminate the suspension or, in the case of a cancellation, notify the agency or person that it may reapply for CSA to the same accrediting entity that handled its prior application for accreditation or approval. If that accrediting entity is no longer providing accreditation or approval services, the agency or person PO 00000 Frm 00023 Fmt 4701 Sfmt 9990 62343 may reapply to any accrediting entity with jurisdiction over its application. If the Secretary terminates a suspension or permits an agency or person to reapply for CSA, the Secretary will so notify the appropriate accrediting entity as well as the applicable foreign country, as appropriate. (2) Nothing in this section shall be construed to prevent the Secretary from withdrawing a cancellation or suspension if the Secretary concludes that the action was based on a mistake of fact or was otherwise in error. Upon taking such action, the Secretary will take appropriate steps to notify the accrediting entity, the Permanent Bureau of the Hague Conference on Private International Law, and the applicable foreign country, as appropriate. § 96.109 Effective dates; transition. (a) When the Secretary designates a country for CSA, the Secretary, in consultation with the Secretary of Homeland Security, will establish and announce through a Federal Register notice an effective date by which CSA for that country is required. (b) On and after the effective date described in paragraph (a) of this section, CSA is required in accordance with this subpart, except: (1) In the case of a child immigrating to the United States, CSA is not required if the prospective adoptive parents of the child filed the applicable immigration related application or petition as prescribed by USCIS before the effective date described in paragraph (a) of this section, and the Secretary, in consultation with the Secretary of Homeland Security, determines that the circumstances underlying CSA do not compel requiring CSA for that case; or (2) In the case of a child emigrating from the United States, CSA is not required if the prospective adoptive parents of the child initiated the adoption process in their country of residence with the filing of an appropriate application before the effective date described in paragraph (a) of this section and the Secretary determines that the circumstances underlying CSA do not compel requiring CSA for that case. Dated: August 23, 2016. David T. Donahue, Acting Assistant Secretary for Consular Affairs, U.S. Department of State. [FR Doc. 2016–20968 Filed 9–7–16; 8:45 am] BILLING CODE 4710–06–P E:\FR\FM\08SEP2.SGM 08SEP2

Agencies

[Federal Register Volume 81, Number 174 (Thursday, September 8, 2016)]
[Proposed Rules]
[Pages 62321-62343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20968]



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Vol. 81

Thursday,

No. 174

September 8, 2016

Part III





Department of State





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22 CFR Part 96





Intercountry Adoptions; Proposed Rule

Federal Register / Vol. 81 , No. 174 / Thursday, September 8, 2016 / 
Proposed Rules

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DEPARTMENT OF STATE

22 CFR Part 96

[Public Notice: 9521]
RIN 1400-AD91


Intercountry Adoptions

AGENCY: Department of State.

ACTION: Proposed rule.

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SUMMARY: The Department of State (the Department) proposes to amend 
requirements for accreditation of agencies and approval of persons to 
provide adoption services in intercountry adoption cases. The proposed 
rule includes a new subpart establishing parameters for U.S. 
accrediting entities to authorize adoption service providers who have 
received accreditation or approval to provide adoption services in 
countries designated by the Secretary, which will be known as 
``country-specific authorization'' (CSA). Adoption service providers 
will only be permitted to act as primary providers in a CSA-designated 
country if they have received CSA for that particular country. The 
proposed rule also strengthens certain standards for accreditation and 
approval, including those related to fees and the use of foreign 
providers. In addition, the proposed rule enhances standards related to 
preparation of prospective adoptive parents so that they receive more 
training related to the most common challenges faced by adoptive 
families, and are better prepared for the needs of the specific child 
they are adopting. These proposed changes are intended to align the 
preparation of prospective adoptive parents with the current 
demographics of children immigrating to the United States through 
intercountry adoption. Finally, the proposed rule makes the mechanism 
to submit complaints about adoption service providers available to 
complainants even if they have not first addressed their complaint 
directly with the adoption service provider.

DATES: The Department will accept comments on the proposed regulation 
up to November 7, 2016.

ADDRESSES: 
     Internet: You may view this proposed rule and submit your 
comments by visiting the Regulations.gov Web site at 
www.regulations.gov, and searching for docket number DOS-2016-0056.
     Mail or Delivery: You may send your paper, disk, or CD-ROM 
submissions to the following address: Comments on Proposed Rule 22 CFR 
part 96, Office of Legal Affairs, Overseas Citizens Services, U.S. 
Department of State, CA/OCS/L, SA-17, Floor 10, Washington, DC 20522-
1710.
     All comments should include the commenter's name and the 
organization the commenter represents (if applicable). If the 
Department is unable to read your comment for any reason, the 
Department might not be able to consider your comment. Please be 
advised that all comments will be considered public comments and might 
be viewed by other commenters; therefore, do not include any 
information you would not wish to be made public. After the conclusion 
of the comment period, the Secretary will publish a final rule as 
expeditiously as possible in which it will address relevant public 
comments.

FOR FURTHER INFORMATION CONTACT: 
    Technical Information: Trish Maskew, (202) 485-6024.
    Legal Information: Carine L. Rosalia, (202) 485-6092.

SUPPLEMENTARY INFORMATION: 

Why is the Secretary promulgating this rule?

    On February 15, 2006, the Secretary published the final rule, 71 FR 
8064, on the accreditation and approval of agencies and persons in 
accordance with the 1993 Hague Convention on Protection of Children and 
Co-operation in Respect of Intercountry Adoption (the Convention) and 
the Intercountry Adoption Act of 2000, (IAA), Public Law 106-279 (42 
U.S.C. Chapter 143). The Convention and the law implementing it 
generally require the accreditation of agencies (private, non-profit 
organizations licensed to provide adoption services in at least one 
State) and the approval of persons (individuals and private, for-profit 
entities) to provide adoption services in Convention cases. The 
Secretary revised these regulations with a final rule published on 
February 10, 2015 (80 FR 7321), to reflect the requirements of the IAA 
as amended by the Intercountry Adoption Universal Accreditation Act of 
2012, (UAA), (Pub. L. 112-276). The Act requires that the accreditation 
standards developed in accordance with the Convention and the IAA, 
which previously only applied in Convention adoption cases, apply also 
in non-Convention adoption cases, known as ``orphan'' cases, based on 
the definition of ``orphan'' in section 101(b)(1)(F) of the Immigration 
and Nationality Act (INA) (8 U.S.C. 1101(b)(1)(F)). The changes 
proposed in this rule derive from the Secretary's authority to 
promulgate regulations that prescribe the standards and procedures for 
the accreditation of agencies and the approval of persons under section 
203(a)(1) of the IAA (42 U.S.C. 14923(a)(1)). Among these changes in 
the proposed rule, we are reinserting a definition of ``central 
authority function.'' This term had been defined in the IAA, but was 
deleted from the regulations when we revised them in order to implement 
the UAA. The definition now proposed has been redrafted to include the 
duties carried out by a Central Authority or equivalent functions 
completed by a competent authority in non-Convention countries.
    The Secretary also revised these regulations with a final rule 
published on August 19, 2015 (80 FR 50195). That rule revised the 
accreditation regulations relating to application for renewal of 
accreditation found in subpart G of 22 CFR part 96, and authorizes an 
accrediting entity to stagger renewals and establishes criteria for 
selecting which agencies or persons are eligible for an extension of 
accreditation or approval for up to one year.

Overview of Proposed Changes to the Accreditation Regulations

A. Country-Specific Authorization (CSA)

    The Department makes every effort to secure and support 
intercountry adoption between the United States and foreign countries 
as a viable option for children in need of permanent homes. There may 
be instances in which the Secretary, in consultation with the Secretary 
of Homeland Security, would deem it necessary and beneficial to 
designate one or more countries for which adoption service providers 
(ASPs) would have to obtain CSA in order to act as a primary provider 
with respect to adoptions from that country. The requirement for 
country-specific authorization in addition to accreditation or approval 
would be designed to enhance existing protections in the intercountry 
adoption process. The following examples illustrate how CSA could be 
employed:
Documenting Compensation and Certain Fees
    The revisions to 22 CFR 96.34 would only allow ASPs to compensate 
its employees, supervised providers, and foreign providers, or any 
other individual or entity involved in intercountry adoption, amounts 
that are ``not unreasonably high in relation to the services actually 
rendered,'' as opposed to the previous standard which also said that 
such compensation would be in relation to ``norms for

[[Page 62323]]

compensation within the intercountry adoption community in that 
country, to the extent that such norms are known to the accrediting 
entity.'' Under this revised standard, the Department could determine 
the ranges of compensation that are reasonable for adoption-related 
services in specific countries.
    CSA would further enhance compliance with this standard, as revised 
in this proposed rule, by re-weighting this standard in a particular 
CSA-designated country, from ``foundational'' to ``mandatory,'' so that 
ASPs would have to demonstrate full compliance with the relevant range 
of compensation for that country in 100 percent of cases. In addition, 
the standard in 22 CFR 96.40, requiring the itemization of expected 
fees and estimated expenses in the Country of Origin (COO), could be 
weighted more heavily in order to maintain substantial compliance with 
CSA. The Department could also require additional evidence from 
adoption service providers that the amount of money they require 
prospective adoptive parents to provide as support to orphanages or 
child-welfare centers in a foreign country is not unreasonably high for 
that particular country, for the purposes of 22 CFR 96.40(f). Requiring 
additional evidence as to what constitutes unreasonably high amounts 
would further prevent payments to orphanages or child-welfare centers 
from being used as inducement to place a child for adoption with a 
specific provider or parent.
Obtaining Medical and Social Information About the Child
    In a Country of Origin (COO) in which the Department has concerns 
that reliable medical or social information about children eligible for 
adoption is not widely available, the Department, through CSA, may 
require additional evidence with regard to what constitutes reasonable 
efforts to obtain the child's medical information (22 CFR 96.49(d)) and 
social information (22 CFR 96.49(g)). Requiring additional evidence 
regarding what steps have been taken to obtain the information would 
help create a more consistent standard within a particular country. 
This may be especially important if there are divergent interpretations 
among adoption service providers as to what constitutes reasonable 
efforts to obtain certain information about a child placed for adoption 
or as to what information is, in fact, ``available.''
    Each CSA designation would be tailored to the conditions in a 
specific country of origin, and might combine any of the above 
examples, along with other similar protections tailored to the 
conditions in a specific country. Each CSA designation would be 
designed to bolster confidence in adoption service providers' 
activities with regard to that particular country such that CSA may 
also allow for the initiation or continuation of intercountry adoption 
where it might otherwise not be possible.
    Article 12 of the Convention provides: ``A body accredited in one 
Contracting state [what U.S. authorities call an accredited agency or 
approved person] may act in another Contracting state only if the 
competent authorities of both states have authorised [sic] it to do 
so.'' Authorities in countries of origin have their own procedures for 
providing authorization to accredited bodies from other countries, 
including to U.S. agencies and persons to provide adoption-related 
services within their country. To better reflect and address the 
practices that have evolved in recent years, we have added to Sec.  
96.12 a provision that would require U.S. adoption service providers to 
maintain authorization received from the foreign country, if required 
by that country, in order to be able to provide services related to 
intercountry adoptions in cases involving that country. Currently, in 
the United States, agencies or persons that are accredited or approved 
pursuant to section 201 of the IAA are considered to be authorized by 
the United States to act in intercountry adoption cases in every 
foreign country. The United States would continue this practice of 
considering accredited agencies or approved persons to be authorized to 
provide adoption services related to intercountry adoptions generally. 
However, the proposed rule would require that, only in specific 
countries designated by the Secretary, in consultation with the 
Secretary of Homeland Security, accredited agencies or approved persons 
must also obtain country specific-authorization in order to act as a 
primary provider with respect to intercountry adoption in the 
designated country.
    Under Title Two of the IAA, section 203, the Secretary, by 
regulation, prescribes the standards and procedures to be used by 
accrediting entities for the accreditation of agencies and the approval 
of persons. An accrediting entity, when evaluating an agency's or 
person's eligibility for accreditation or approval, evaluates an 
agency's or person's compliance with applicable standards in 22 CFR 
part 96 subpart F. Once accredited or approved, an agency or person may 
offer or provide adoption services in cases involving any foreign 
country to the extent permitted by the foreign country. For each 
country for which CSA would be required, the Secretary, in consultation 
with the Secretary of Homeland Security, would propose to set forth, in 
a public announcement, a country specific method of determining 
substantial compliance with one or more of the standards in subpart F. 
That method may include increasing the ``weight'' assigned to one or 
more particular standards, and may include additional or specified 
evidence that the adoption service provider will need to provide to 
demonstrate compliance with those standards. To obtain country-specific 
authorization for a particular CSA-designated country, an accredited or 
approved adoption service provider would need to demonstrate 
substantial compliance with the country specific criteria for that 
country. The accrediting entity, as proposed here, would evaluate the 
authorized agency's or person's substantial compliance with the 
accreditation and approval standards based on requirements to provide 
additional or specified evidence or comply with a more heavily weighted 
standard that has been tailored to a specific country.
    The Department proposes the creation of a new subpart N of 22 CFR 
part 96 to implement CSA. The procedures outlined in the new subpart N 
are based on the existing accreditation and approval procedures and 
requirements in 22 CFR part 96. The new subpart N would address the 
scope of CSA; application procedures, the length of CSA, renewal of 
CSA; the denial of CSA and a review of decisions of denial; complaints 
relating to compliance with CSA, their review by the accrediting 
entity, and possible referral to the Secretary or other authorities; 
and the decision by the accrediting entity to take CSA-related adverse 
actions. The standards governing accreditation, renewal of 
accreditation, and CSA would be the same; however, CSA may require ASPs 
to meet more heavily weighted standards, or show additional or 
specified evidence with regard to compliance with a standard.
    Complaints received related to CSA of an adoption service provider 
would be submitted through the complaint registry and may be handled as 
other complaints are handled. Provisions in Sec.  96.101(b) would, 
however, require the accrediting entity to verify whether complainants 
had attempted to resolve the complaints through the provider's 
established internal complaint procedures and if not, allow the 
accrediting entity to refer the complaints to the provider for 
resolution. Providing the accrediting

[[Page 62324]]

entity with discretion to refer such complaints first to the adoption 
service provider allows the accrediting entity the flexibility to 
determine if there are sufficient reasons not to do so, such as 
concerns expressed by adoptive parents still in the adoption process 
that an adoption service provider might retaliate against them or their 
child, and concerns that complaints indicating potentially illegal 
activities are best brought to the attention of the accrediting entity 
immediately. (A provision in Sec.  96.69 discussed in part D., below, 
is similarly justified.)
    The date of expiration for CSA ordinarily would coincide with the 
date of expiration of the accreditation or approval cycle of the 
specific ASP. CSA would be granted for no less than three and no more 
than five years.
    The proposed rule would also amend sections in part 96 to include 
CSA-related functions as part of an accrediting entity's accreditation 
and approval duties. The Department proposes to add additional 
definitions, explanatory language, and references to CSA, where 
necessary.

B. Provision of Adoption Services and Fee Disclosures

    The proposed rule would amend part 96 to strengthen certain 
accreditation and approval standards, including those related to fee 
disclosures, and those related to the use of foreign providers. Such 
changes would further strengthen the provision of adoption services. 
These changes derive from observations and experience about the 
practical operation of the accreditation and approval regulations in 
the seven years since the regulations became effective. The proposed 
rule would incorporate language contained in the definitions section of 
the IAA, at proposed Sec.  96.2 (Definitions, Adoption Services), in 
order to make explicit that ``provision'' of an adoption service 
includes ``facilitating'' the adoption service. For services that are 
subject to verification and do not require supervision as outlined in 
Sec.  96.14(c)(3), the Department further proposes to limit an agency's 
or person's use of foreign providers to situations in which a primary 
provider has not previously worked with the foreign provider in the 
current or previous accreditation cycle, or where the primary provider 
has not accepted the case as part of a transfer plan in Sec.  96.33(f).
    To increase transparency and provide the accrediting entity with an 
effective tool for assessing an agency's or person's compliance with 
the prohibition on child buying as articulated in Sec.  96.36, addition 
of provisions in Sec.  96.36(b)(1) and (2) would have the ASP document 
foreign financial transactions in a way that maintains a reviewable 
record of what expenditures were paid and for what purposes.
    The proposed rule in Sec.  96.40 also would require agencies or 
persons, when disclosing fees to prospective adoptive parents, to 
distinguish fees in the United States from those in a foreign country. 
In addition, as a provision in Sec.  96.40(j) preserving consumer 
protections for prospective adoptive parents who may not realize the 
risk of waiving their approval, the proposed revisions delete previous 
provisions allowing adoption service providers to obtain a waiver from 
prospective adoptive parents such that the providers need not seek 
prospective adoptive parents' specific consent for expending funds in 
excess of $1,000. This requirement would better encourage providers to 
disclose all known fees ahead of time and make it easier for 
prospective adoptive parents to compare fees between agencies and 
persons. Requiring additional itemization and distinction between fees 
and expenses in the United States and fees and expenses abroad would 
make it easier for prospective adoptive parents to compare the costs 
for services and provide greater transparency as to how the agency 
spends that money. The proposed revisions would create greater 
transparency with respect to the expenditure of money in intercountry 
adoptions.
    Finally, the proposed rule revisions in Sec.  96.40(f) aim to 
prohibit accredited agencies or approved persons from charging 
prospective adoptive parents to care for a child prior to completion of 
the intercountry adoption process. In recent years, accredited agencies 
and approved persons have begun charging prospective adoptive parents 
monthly support fees for children where the intercountry adoption 
process is not complete. In some cases, these fees are significantly 
higher than the normal costs associated with the care of children in 
the foreign country. Where institutions can collect large fees for the 
care of a particular child, an incentive may be created to recruit 
children into institutions, while also providing a disincentive for 
expeditious processing of an adoption. These practices substantially 
increase the costs of adoption for prospective adoptive parents, and 
may result in a situation where an adoptive family pays for long-term 
care of a child who is not in fact eligible for intercountry adoption.

C. Accreditation and Approval Standards Related to Training and 
Preparation of Prospective Adoptive Parents

    The Department proposes to create significant changes aimed at 
improving the level of preparedness of prospective adoptive parents and 
increasing the chances of successful and permanent adoption through the 
intercountry process. Increased training requirements for prospective 
adoptive parents may better prepare them to help their child, recently 
adopted through the intercountry adoption process, adjust to a new 
environment. The profile of many of the children currently eligible for 
intercountry adoption is dramatically different from the profile of 
children at the time when the regulations were initially published in 
2006. At that time, the majority of children adopted through 
intercountry adoption were healthy infants or very young children. The 
demographics of children adopted through intercountry adoption now 
include a higher percentage of older children, children with special 
needs, and sibling groups. The proposed rule, therefore, would align 
intercountry adoption training requirements with the training 
requirements for those who wish to adopt through the child welfare 
systems of the various U.S. States which have long recognized the 
training needed for older children, sibling groups, and children with 
medical or other needs. Prospective adoptive parents would complete the 
requirements for their State of residence, information about which is 
available through the Department of Health and Human Service's National 
Resource Center for Diligent Recruitment, https://www.nrcdr.org/_assets/files/NRCDR-org/type-of-training-by-state.pdf, or an equivalent.
    Proposed changes to 22 CFR 96.48 to 96.50 would include updated 
requirements related to training and preparation of prospective 
adoptive parents for accredited agencies and approved persons; these 
proposed changes seek to promote permanent placement and contribute to 
the prevention of disruptions of placements and dissolutions of 
adoptions, as well as unregulated custody transfer (also referred to as 
``rehoming''). The pre-adoption preparation and training that 
accredited agencies and approved persons provide to parents pursuing 
intercountry adoption would increase the minimum number of hours 
required and expand the issues that must be addressed. Our proposed 
change is based on the consistent feedback from the adoption and child 
welfare

[[Page 62325]]

community that increased training improves outcomes. The Department 
requests comments on the effectiveness of training and the optimal 
number of hours of training.
    The pre-adoption preparation and training regulations already 
include the intercountry adoption process, characteristics and needs of 
waiting children, and in-country conditions that affect the children; 
genetic, health, emotional and development risk factors; the impact of 
leaving familiar ties and of institutionalization on children; 
attachment disorders; the laws and adoption process in the country of 
origin; implications of becoming a multicultural family; post-placement 
and post-adoption reporting requirements; the child's history and 
background; health risks in the child's country of origin; and child-
specific information based on available social, medical, and other 
background on the child. The proposed regulatory changes pertaining to 
the preparation and training of prospective adoption parents would 
require specific methods of presentation and include, in addition to 
existing training topics, training on grief, loss, identity, and 
trauma; characteristics of successful intercountry adoptive placements; 
exploration of the family's individual circumstances, including past 
disruptions and dissolutions and previous compliance with post-
placement and post-adoption reporting requirements. To directly address 
growing concerns about disruption, dissolution, and unregulated custody 
transfer, the proposed changes would require adoption service providers 
to include information about disruption and dissolution in training and 
preparation programs for prospective adoptive parents. Adoption service 
providers would be required to provide specific points of contact for 
support in the event an adoptive family faces adjustment or other 
difficulties that place permanency at risk. In order to provide 
training that encourages parents to carefully consider their ability to 
meet the needs of a child adopted through the intercountry adoption 
process before entering into a contract for adoption services, the 
provisions in Sec.  96.48(a)(1) would prohibit agencies and persons 
from making a referral or requiring payment of fees for the specified 
adoption services prior to completion of certain required training. 
Currently, an agency can match a child to a family that has not 
completed its home study and training, which makes it more difficult 
for the agency to determine whether the family is suitable for adoption 
and for a match with a specific child. Also, families that have already 
paid non-refundable fees may be less likely to self-identify as not 
suitable for an adoption once they learn more about the challenges an 
intercountry adoption may present. In accordance with the provisions in 
Sec.  96.48(c)(1), after prospective adoptive parents are matched with 
a specific child, agencies or persons would need to discuss that 
child's specific needs and circumstances and how the family will 
address them. Agencies or persons would be required to provide 
prospective adoptive parents with resources and information about how 
and where to seek post-adoption services and support.
    To address similar concerns as they relate to monitoring placements 
until final adoptions, in the event an adoptive family is in crisis 
during the post-placement phase, the proposed revisions would add an 
additional requirement that the ASP takes all appropriate measures to 
inform the parents of local and State laws and legal resources 
pertaining to disruption of a placement and appropriate measures for 
making another placement of a child, as well as providing resources to 
address potential future crises.

D. Submission of Complaints and Other Proposed Changes

    The proposed rule in subpart J, Sec.  96,69, would no longer 
require a complainant to first submit her/his complaint to the agency 
or person that is the subject of a complaint before submitting it to 
the complaint registry for action by the accrediting entity. 
Previously, complainants had to attempt to resolve their concerns 
directly with their provider before seeking a review of the matter by 
the accrediting entity. This change addresses multiple issues, 
including concerns expressed by adoptive parents still in the adoption 
process that an adoption service provider might retaliate against them 
or their child, and concerns that complaints indicating potentially 
illegal activities are best brought to the attention of the accrediting 
entity immediately. Changes in Sec.  96.68 and Sec.  96.70(b)(1) 
clarify that it is possible to file complaints relating to verification 
of certain adoption services that may be performed by foreign providers 
that were not supervised. A final key change found in subpart J is the 
change of the term ``investigate'' to ``review'' with respect to an 
accrediting entity's review of complaints. This change brings the 
language into conformity with the IAA. The Department made minor 
technical edits to Sec. Sec.  96.70(a), 96.71, and 96.72 that do not 
have substantive impacts on the requirements.
    Amendments to Sec.  96.24(c) proposed here would require an agency 
or person to provide an appropriate setting for interviews and review 
of case documents by the accrediting entity when it conducts a site 
visit. Some provider operations take place in close quarters such as a 
private home where the ability of the accrediting entity's evaluator to 
carry out a discussion with employees or others or review documents is 
hindered. It is essential that an ASP provide a space that would allow 
the evaluator to carry out such interviews and reviews in order to 
secure pertinent information about an agency's or person's practices 
and programs.
    Changes to Sec.  96.33(a) would require disclosure of remuneration 
paid by adoption service providers to foreign providers, making it 
synonymous with the requirement that they disclose payments to everyone 
else. Addition of Sec.  96.33(h) would provide a list of potential 
sources of information that would contribute toward an effective risk 
assessment as the basis for determining the type and amount of 
professional, general, directors' and officers', errors and omissions, 
and other liability insurance for an agency or person to carry.
    Finally, the requirement to retain a completed FBI Form FD-258 
contained in Sec.  96.35(c)(4) and (d)(2) have been removed as this 
form cannot be used for the purpose stated in those provisions under 
current FBI guidance.

E. Implementing Changes in the Proposed Rule, if Approved

    Some changes in the proposed rule would become effective 30 days 
after publication of the final rule, consistent with the Administrative 
Procedures Act (APA), while we envision others taking effect within 
three to nine months, for all agencies or persons currently accredited 
or approved and for those seeking accreditation or approval. Provisions 
in Sec.  96.40 relating to fee disclosures would take effect 30 days 
after publication. To comply with the new rule, adoption service 
providers will need to change their fee disclosures. While the 
information required under the new rule should already be available to 
accredited or approved adoption service providers, the efforts to 
reflect the added specificity required by the new rule will require the 
APA-mandated 30-day period of implementation. Such a time frame would 
allow adoption service providers to review already available 
information, determine whether such

[[Page 62326]]

fees and expenses should be characterized as fees and expenses in the 
United States or overseas, respectively, and begin to provide this 
information to prospective adoptive parents.
    The provisions in Sec.  96.2 (definition of adoption services) and 
Sec.  96.14 relating to supervised providers would take effect 90 days 
after publication. Ninety days provides sufficient time for the agency 
or person to appropriately vet, enter into a contractual agreement 
with, and begin supervising facilitators. The provisions in Sec.  96.48 
relating to training and prospective adoptive parent preparation would 
take effect nine months after the publication of the final rule. The 
Department recognizes the efforts required from accredited or approved 
providers to identify available training programs required by the 
relevant State to adopt a child through the State's child welfare 
system, or an equivalent if the State program is unavailable, as well 
as develop new curriculum specific to intercountry adoption. The 
Department anticipates that provisions allowing the Secretary to 
designate a country as requiring CSA and the minor other changes will 
take effect within 30 days of publication of the final rule

Regulatory Analysis

Administrative Procedure Act

    The Department is issuing this rule as a proposed rule with a 60-
day period for public comments.

Regulatory Flexibility Act/Executive Order 13272: Small Business

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires an 
agency to prepare a regulatory flexibility analysis of any rule subject 
to notice and comment rulemaking requirements under the APA or any 
other statute unless the agency certifies, pursuant to 5 U.S.C. 605(b), 
that the rule will not have a significant economic impact on a 
substantial number of small entities and provides a factual basis for 
its certification. ``Small entities'' include ``small organizations,'' 
which the RFA defines as any non-profit enterprise that is 
independently owned and operated and not dominant in its field. (5 
U.S.C. 601(4), 601(6)).
    The Secretary has reviewed this proposed rule's impact on small 
agencies and persons in accordance with the final regulatory analysis 
requirements of the RFA. There are currently approximately 200 
accredited or approved adoption service providers, many of which are 
arguably ``small entities'' under the RFA that would have to comply 
with this rulemaking. For the reasons provided below, the Secretary has 
determined that the impact on small entities affected by the proposed 
rule will not be significant.
    First, the effect of the proposed rule will be to allow agencies 
and persons the flexibility to choose to apply to obtain CSA to act as 
a primary provider in those countries for which the Secretary 
determines that CSA is required, or to act as supervised providers. 
Supervised providers are not required to become accredited or approved, 
nor are they required to obtain CSA, and thus they can largely avoid 
the economic impact of accreditation and approval and of obtaining CSA 
whenever they work under the supervision of a primary provider.
    Second, certain types of very small providers, specifically home 
study and child background study preparers, are exempted from the 
requirement for accreditation, even in CSA countries, because their 
work is reviewed and approved by an agency that is accredited.
    Third, with respect to revisions to accreditation standards in the 
proposed rule that impact all 200 accredited agencies and approved 
persons, such as standards relating to disclosure of fees, preparation 
of prospective adoption parents, and revisions clarifying the role of 
primary providers, the IAA and the regulations use an accreditation 
model, and a substantial compliance structure that provides agencies 
and persons with ample opportunity to correct deficiencies before 
accreditation or approval is denied. Thus, the accreditation model used 
in this proposed rule allows for the majority of the standards to be 
performance-based. Substantial compliance, which is typical of 
regulations based on an accreditation scheme, inherently provides for 
regulatory flexibility because entities are not required to comply 
perfectly with every single standard. Overall, these features of the 
proposed rule minimize the burden on small entities.
    The Secretary hereby certifies that this rule will not have a 
significant economic impact on a substantial number of small entities. 
Although the Department does not think these regulations will have a 
significant economic impact on a substantial number of small entities, 
it would like to solicit comment from the public on the following 
questions: (1) Will most small agencies desire to apply for CSA in 
countries where the Secretary has determined that CSA is required? (2) 
What will the cost be to small entities to comply with the fee 
disclosure provisions of the proposed rule? (3) What are accrediting 
entities likely to charge the agencies for the country specific 
authorization process? (4) What are the estimated costs agencies will 
have to expend to comply with the standards in Subpart N? It would be 
helpful if commenters would supply information and data to support 
their comments on these enumerated issues.

The Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule, as defined by 5 U.S.C. 804, for 
purposes of congressional review of agency rulemaking under the Small 
Business Regulatory Enforcement Fairness Act of 1996, Public Law 104-
121. This rule will not result in an annual effect on the economy of 
$100 million or more; a major increase in costs or prices; or 
significant adverse effects on competition, employment, investment, 
productivity, innovation, or on the ability of U.S.-based companies to 
compete with foreign-based companies in domestic and import markets.

The Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995 (codified 
at 2 U.S.C. 1532) generally requires agencies to prepare a statement 
before proposing any rule that may result in an annual expenditure of 
$100 million or more by State, local, or tribal governments, or by the 
private sector. This rule will not result in any such expenditure, nor 
will it significantly or uniquely affect small governments or the 
private sector.

Executive Orders 12372 and 13132: Federalism

    This regulation will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or the distribution of power and responsibilities among the 
various levels of government. Nor will the rule have federalism 
implications warranting the application of Executive Orders 12372 and 
No. 13132.

Executive Orders 12866 and 13563

    The Secretary has reviewed this proposed rule to ensure its 
consistency with the regulatory philosophy and principles set forth in 
Executive Order 12866, and has determined that the benefits of this 
proposed regulation justify its costs. The Secretary does not consider 
this rulemaking to be an economically significant action within the 
scope of section 3(f)(1) of the

[[Page 62327]]

Executive order. The estimated economic impact of implementing key 
changes in the proposed rule revising the intercountry adoption 
accreditation regulations is less than $1,000,000, and well under the 
$100 million threshold set by E.O. 12866 as having a significant 
economic impact. Furthermore, given the relatively low cost to the 
public, and given the high public benefit provided by the proposed rule 
in terms of stronger preparations of prospective adoptive parents for a 
successful intercountry adoption, greater transparency as to adoption 
fees both in the United States and abroad, and the potential for 
improving practices in certain countries of origin through country 
specific authorization that could potentially result in beginning or 
resuming intercountry adoption in countries of origin, this proposed 
rule demonstrates both the letter and the spirit of the principles 
embodied in E.O. 12866.
1. Country Specific Authorization (CSA)
    Cost to the Accrediting Entity: Almost all of the costs associated 
with implementing the application process to qualify for CSA for a 
country designated by the Secretary, would be captured in the 
application fee charged to each adoption service provider. The 
application fee would relate directly to the review of application 
materials relating to the requirements for CSA that are tailored to 
circumstances in the designated country of origin.
    Cost to the Adoption Service Providers: Because CSA would involve 
meeting new weighting or evidentiary requirements relating to existing 
standards, it would not likely impose significant costs on accredited 
and approved providers. Notwithstanding our projection that ASPs 
seeking CSA will be able to do so without significant additional cost 
to them beyond those normally associated with their accreditation, 
except for an application fee for CSA paid to the accrediting entity, 
some ASPs may believe they would incur additional costs to adapt their 
practices to conform with enhanced weighting and evidentiary 
requirements to qualify for CSA. Because the standards implicated are 
likely to vary with each iteration of CSA, it is not possible to 
project what those costs might be. The public is invited to comment on 
what, if any, additional costs ASPs might incur to qualify for CSA.
    Estimated Cost To Implement CSA: An average cost of $1,500 per 
applicant per CSA iteration.

 An average of 15 applicants per iteration of CSA
 At an estimated average cost of $1,500 per applicant
 Equals $22,500 per CSA iteration.
    [cir] An average of two CSA designations per year
    [cir] = $22,500 x 2 = $45,000 per year.

    Total Estimated Cost for CSA Implementation per Year: $45,000.
2. Strengthening Standards Related to Disclosure of Fees
    The fee disclosure provisions in the proposed rule would refine the 
way fees are characterized and when and how they must be disclosed. 
However, these providers already know what they charge prospective 
adoptive families to complete an adoption abroad in specific countries. 
Disclosing the expected fees and expenses across an array of cost 
categories as defined in proposed Sec.  96.40 would not be onerous or 
costly. We estimate the disclosure provisions would involve minimal 
administrative costs and labor associated with appropriately 
categorizing the fees and expenses, as well as printing new documents 
and making changes to a Web site, and that costs to ASPs and the 
accrediting entity (AE) associated with putting the new fee disclosure 
rules in place would be minimal. As we expect these costs to be less 
than $500, we are using a primary average estimate of $400.
    Total Cost To Implement Fee Disclosure Changes: $400.
3. Training and Preparing Prospective Adoptive Parents for Successful 
Parenting of Children Adopted Internationally
    Changes in the training requirements for prospective adoptive 
parents in Sec.  96.48 have three main elements:
    (a) 20 hours of training offered by the State of residence that is 
provided to families adopting from the foster care system, or an 
equivalent where a State program is unavailable for prospective 
adoptive parents who wish to complete an intercountry adoption. We see 
three ways for families to obtain this training:
    (1) States may provide the same training to intercountry adopting 
families as provided to families adopting from the foster care system 
in the State at no cost to the families. We anticipate that as many as 
20 percent of adoptive families will be permitted to receive the 
required training through existing State training programs;
Cost to Participants of Training Provided by States
     This training is provided without out-of-pocket cost to 
prospective adoptive families, aside from the time spent in the 
training.
Monetizing the Time Burden of Adoptive Parent Training
     Using the Bureau of Labor Statistics latest publication 
(June 2016) reporting average hourly wages of private, non-farm labor, 
the national average for all sectors is approximately $26. Thus, 20 
hours of training would equate to approximately $520 per parent. If 20 
percent of the estimated 6,000 prospective adoptive parents were to 
engage in such training each year, the time burden would equal 
approximately $624,000. However, this training will not require out-of-
pocket payment by prospective adoptive parents.
    (2) ASPs may obtain training materials and participant workbooks 
already developed and ready to use supplied by one of the four primary 
training systems used throughout the United States for approximately 
$800, including a training manual and training DVDs, reproducible as 
needed for home study preparers, who normally would provide this 
training, along with a participant's manual available for $20 each.
Estimated Cost of This Training Option for All Trainers (One-Time Cost)
     $800 plus the cost of reproducing the training manual and 
training DVDs 100 copies of the training materials at $20 each = $2,000 
for reproduction of training materials.
     $800 + $2,000 = $2,800 for all trainers counted together.
Estimated Cost for All Prospective Adoptive Parents Annually
     $20 each* x 5000 = $100,000

(*estimation assumption: of 5,648 U.S. intercountry adoptions in FY 
2015, two thirds were adoptions of single children by one family, and 
the rest were adopted as sibling groups resulting in about 5,000 total 
adoptive families adopting that year. $20 x 5,000 = $100,000.)
Total Estimated Cost of ASPs Providing Independent Training Programs 
Equivalent to State Programs
     $2800 + $100,000 = $102,800 per year.
    (3) A final option available to meet this new standard would be for 
an ASP to develop brand-new training materials tailored to the specific 
content and branding needs of individual providers. Because it is not 
possible to predict the cost to develop such training independently 
from scratch--we cannot predict the scale of users who would share in 
the cost, nor the extent to which the training is web-based, DVD-based, 
or fully human-moderated--we

[[Page 62328]]

do not make a projection of the cost of this option. It seems likely 
that the other two options will be the preferred options for those for 
whom the training is required.
Total Estimated Cost of Training
     $102,800 per year.
Total Overall Estimated Economic Impact for the First Year in Terms of 
Costs to Adoption Service Providers and Prospective Adoptive Parents 
Taken as a Whole
     $45,000 (CSA) + ($400 Fee Reporting) + $102,800 (Parent 
Training) + $624,000 (opportunity cost of training) = $772,400. Most of 
this cost is not an out-of-pocket cost but represents the opportunity 
cost of time spent in training.
    Subsequent years would have similar costs minus the one-time cost 
of obtaining training materials for the required 20 hours of training 
equivalent to training offered by the State of residence that is 
provided to families adopting from the foster care system ($102,800). 
The public is invited to comment on what, if any, additional costs ASPs 
might incur to implement the training provisions of the proposed rule.
    Benefits of the Proposed Changes: The proposed changes in this rule 
would provide public benefit in terms of stronger preparations of 
prospective adoptive parents for a successful intercountry adoption, 
greater transparency as to adoption fees both in the United States and 
abroad, and the potential for improving practices in certain countries 
of origin through CSA that could potentially result in beginning or 
resuming intercountry adoption in countries of origin,

Executive Order 12988: Civil Justice Reform

    The Secretary has reviewed these regulations in light of sections 
3(a) and 3(b)(2) of Executive Order 12988 to eliminate ambiguity, 
minimize litigation risks, establish clear legal standards, and reduce 
burden. The Secretary has made every reasonable effort to ensure 
compliance with the requirements in Executive Order 12988.

Executive Order 13175: Consultation and Coordination With Indian Tribal 
Governments

    The Department has determined that this rulemaking will not have 
tribal implications, will not impose substantial direct compliance 
costs on Indian tribal governments, and will not pre-empt tribal law. 
Accordingly, the requirements of Section 5 of Executive Order 13175 do 
not apply to this rulemaking

The Paperwork Reduction Act of 1995

    In accordance with 42 U.S.C. 14953(c), this rule does not impose 
information collection requirements subject to the provisions of the 
Paperwork Reduction Act, 44 U.S.C. Chapter 35.

List of Subjects in 22 CFR Part 96

    Adoption, Child welfare, Children, Child immigration, Foreign 
persons.

    For the reasons stated in the preamble, the Secretary proposes to 
amend 22 CFR part 96 as follows:

PART 96--INTERCOUNTRY ADOPTION ACCREDITATION OF AGENCIES AND 
APPROVAL OF PERSONS

0
1. The authority citation for part 96 is revised to read as follows:

    Authority: The Convention on Protection of Children and Co-
operation in Respect of Intercountry Adoption (done at The Hague, 
May 29, 1993), S. Treaty Doc. 105-51 (1998), 1870 U.N.T.S. 167 (Reg. 
No. 31922 (1993)); 42 U.S.C. 14901-14954; 42 U.S.C. 14925.

Subpart A--General Provisions

0
 2. Amend Sec.  96.1, in the first sentence, by removing the comma and 
space between ``106-279'' and the closing parenthesis, and by adding a 
sentence to the end of the paragraph to read as follows:


Sec.  96.1   Purpose.

    * * * Subpart N of this part establishes the general procedures for 
country specific authorization.


Sec.  96.2  [Amended]

0
 3. Amend Sec.  96.2 by:
0
 a. Adding a sentence to the end of paragraph (6) of the definition of 
``Adoption service''; and
0
 b. Adding definitions for ``Authorization'', ``Central Authority 
function'', ``Country specific authorization (CSA)'', and ``USCIS'' in 
alphabetical order:
    The additions read as follows:


Sec.  96.2  Definitions.

* * * * *
    Adoption service * * *
    (6) * * * The term ``providing,'' with respect to an adoption 
service, includes facilitating the provision of the service.
* * * * *
    Authorization means the permission from a Central Authority for an 
agency or person to act in a country with respect to an intercountry 
adoption. In the United States, accreditation or approval provides 
general authorization to act with respect to an intercountry adoption, 
other than in those countries for which the Secretary has also required 
country specific authorization (CSA). Where required, an accredited 
agency or approved person must also have the authorization of the 
relevant country to act in that country.
* * * * *
    Central Authority function means any duty required to be carried 
out by a Central Authority in a Convention country, or equivalent 
function in a non-Convention country.
* * * * *
    Country specific authorization (CSA) means authorization by a U.S. 
accrediting entity of an accredited agency or approved person in the 
United States to act as a primary provider under Sec.  96.14(a) in 
connection with an intercountry adoption involving a specific foreign 
country identified by the Secretary, according to subpart N of this 
part. While CSA requires compliance with all requirements imposed by a 
foreign country in relation to intercountry adoption, CSA does not 
constitute authorization from a foreign government to engage in 
activities related to intercountry adoption, where such authorization 
is required. CSA ceases automatically and immediately upon the 
corresponding foreign country's withdrawal or cancellation of its 
authorization of the agency or person.
* * * * *
    USCIS means U.S. Citizenship and Immigration Services within the 
U.S. Department of Homeland Security.

Subpart B--Selection, Designation, and Duties of Accrediting 
Entities

0
 4. Revise Sec.  96.4(c) to read as follows:


Sec.  96.4   Designation of accrediting entities by the Secretary.

* * * * *
    (c) A public entity, within the meaning provided in Sec.  96.5(b), 
may only be designated to accredit agencies and approve persons that 
are located in the public entity's State.
0
 5. Revise Sec.  96.6(c) to read as follows:


Sec.  96.6  Performance criteria for designation as an accrediting 
entity.

* * * * *
    (c) That it can monitor the performance of agencies it has 
accredited and persons it has approved (including their use of any 
supervised providers and verification of adoption services provided by 
foreign providers) to ensure their continued compliance with the 
Convention, the IAA, the UAA, and the regulations implementing the

[[Page 62329]]

IAA or UAA; it can also monitor the performance of those accredited 
agencies and approved persons to which it has granted country specific 
authorization;
* * * * *
0
 6. Amend Sec.  96.7 by:
0
 a. Redesignating paragraphs (a)(3) through (8) as paragraphs (a)(4) 
through (9), respectively, and add new paragraph (a)(3); and
0
 b. Revising newly redesignated paragraph (a)(5).
    The additions and revisions read as follows:


Sec.  96.7  Authorities and responsibilities of an accrediting entity.

    (a) * * *
    (3) Determining whether such agencies or persons are also eligible 
for country specific authorization when such authorization is sought;
* * * * *
    (5) Reviewing complaints about accredited agencies and approved 
persons (including their use of supervised providers and verification 
of adoption services provided by foreign providers);
* * * * *
0
 7. Revise Sec.  96.8(a) and (b) to read as follows:


Sec.  96.8  Fees charged by accrediting entities.

    (a) An accrediting entity may charge fees for accreditation or 
approval services and where applicable, for country specific 
authorization, under this part only in accordance with a schedule of 
fees approved by the Secretary. Before approving a schedule of fees 
proposed by an accrediting entity, or subsequent proposed changes to an 
approved schedule, the Secretary will require the accrediting entity to 
demonstrate:
    (1) That its proposed schedule of fees reflects appropriate 
consideration of the relative size and geographic location and volume 
of intercountry adoption cases of the agencies or persons it expects to 
serve; and
    (2) That the total fees the accrediting entity expects to collect 
under the schedule of fees will not exceed the full costs of 
accreditation or approval and, where applicable, for country specific 
authorization, under this part (including, but not limited to, costs 
for completing the accreditation or approval process, complaint review, 
routine oversight and enforcement, and other data collection and 
reporting activities).
    (b) The schedule of fees must:
    (1) Establish separate non-refundable fees for accreditation and 
approval;
    (2) Establish separate, non-refundable fees for country specific 
authorization; and
    (3) Include in each fee for accreditation or approval or country 
specific authorization the costs of all activities associated with the 
accreditation or approval cycle or with country specific authorization, 
where appropriate, including but not limited to, costs for completing 
the accreditation or approval process, costs for completing country 
specific authorization, where applicable, complaint review, routine 
oversight and enforcement, and other data collection and reporting 
activities, except that separate fees based on actual costs incurred 
may be charged for the travel and maintenance of evaluators.
* * * * *
0
 8. Revise Sec.  96.9(c) to read as follows:


Sec.  96.9  Agreement between the Secretary and the accrediting entity.

* * * * *
    (c) How the accrediting entity will address complaints about 
accredited agencies and approved persons (including their use of 
supervised providers and verification of adoption services provided by 
foreign providers) and complaints about the accrediting entity itself;
* * * * *
0
 9. Revise Sec.  96.10(c)(6) to read as follows


Sec.  96.10   Suspension or cancellation of the designation of an 
accrediting entity by the Secretary.

* * * * *
    (c) * * *
    (6) Failing to protect information, including personally 
identifiable information, or documents that it receives in the course 
of performing its responsibilities; and
* * * * *

Subpart C--Accreditation and Approval Requirements for the 
Provision of Adoption Services

0
 10. Amend Sec.  96.12:
0
 a. In the introductory text of paragraph (a) by removing ``once the 
UAA becomes effective'' and removing ``transitional'' and adding in its 
place ``transition'' in both places; and
0
 b. By revising paragraph (c) and adding paragraphs (d) and (e).
    The revisions and additions read as follows:


Sec.  96.12  Authorized adoption service providers.

* * * * *
    (c) Neither conferral nor maintenance of accreditation or approval 
or country specific authorization, nor status as an exempted or 
supervised provider, nor status as a public domestic authority shall be 
construed to imply, warrant, or establish that, in any specific case, 
an adoption service has been provided consistently with, the 
Convention, the IAA, the UAA, or the regulations implementing the IAA 
or UAA. Conferral and maintenance of accreditation or approval, and, 
when required, country specific authorization, under this part 
establishes only that the accrediting entity has concluded, in 
accordance with the standards and procedures of this part, that the 
agency or person conducts adoption services in substantial compliance 
with the applicable standards set forth in this part; it is not a 
guarantee that in any specific case the accredited agency or approved 
person is providing adoption services consistently with the Convention, 
the IAA, the UAA, the regulations implementing the IAA or UAA, or any 
other applicable law, whether Federal, State, or foreign. Neither the 
Secretary nor any accrediting entity shall be responsible for any acts 
of an accredited agency, approved person, exempted provider, supervised 
provider, or other entity providing services in connection with an 
intercountry adoption.
    (d) The agency or person must maintain authorization from the 
relevant foreign country, where the agency or person seeks to offer, 
provide, facilitate, verify or supervise the provision of adoption 
services in a foreign country, if required by that country.
    (e) The agency or person, if seeking to act as a primary provider 
under 96.14(a) in connection with intercountry adoptions involving a 
country that has been designated by the Secretary as requiring country 
specific authorization, must maintain that country specific 
authorization as provided in subpart N of this part.
0
 11. Revise Sec.  96.14(c)(3) to read as follows:


Sec.  96.14  Providing adoption services using other providers.

* * * * *
    (c) * * *
    (3) A foreign provider (agency, person, or other non-governmental 
entity) that is not under its supervision, where the primary provider 
has not previously worked with the foreign provider in the current or 
previous accreditation cycle, or where the primary provider has not 
accepted the case as part of a transfer plan in Sec.  96.33(f), and 
either the foreign provider

[[Page 62330]]

    (i) Has secured the necessary consent to termination of parental 
rights and to adoption prior to an accredited agency or approved person 
or their supervised providers providing any adoption service(s) in the 
case, other than preparing a home study on prospective adoptive 
parents, if the primary provider verifies consent pursuant to Sec.  
96.46(c); or
    (ii) Has prepared a background study on a child in a case involving 
immigration to the United States (incoming case) or a home study on 
prospective adoptive parent(s) in a Convention adoption case involving 
emigration from the United States (outgoing case), and a report on the 
results of such a study prior to an accredited agency or approved 
person or their supervised providers providing any adoption service(s) 
in the case, other than preparing a home study on prospective adoptive 
parents, if the primary provider verifies the study and report pursuant 
to Sec.  96.46(c).
* * * * *
0
 12. Revise Sec.  96.15 to read as follows:


Sec.  96.15  Examples.

    The following examples illustrate the rules of Sec. Sec.  96.12 
through 96.14:

    Example 1. Identifying a child for adoption and arranging an 
adoption. Agency Y, located in the United States, takes steps to 
place a particular child residing in a foreign country with a 
particular adoptive family in the United States. Agency Y must be 
accredited, approved, or supervised because it is identifying a 
child and arranging an intercountry adoption. By contrast, Agency X, 
also a U.S. agency, identifies children eligible for adoption in the 
United States on a TV program in an effort to recruit prospective 
adoptive parent(s). A prospective adoptive parent residing in a 
foreign country calls Agency X about one of the children. Agency X 
refers them to an agency or person in the United States who arranges 
intercountry adoptions. Agency X does not require accreditation, 
approval, or supervision because it is not both identifying and 
arranging the adoption.
    Example 2. Foreign supervised providers. Agency X, a U.S. 
agency, works in a foreign country with orphanage Y, facilitator A, 
orphanage director B, and driver/translator C. Agency X must 
supervise Orphanage Y, a private, non-governmental organization in a 
foreign country, if Agency X has established a formal or informal 
relationship or arrangement whereby Orphanage Y provides information 
or services to help Agency X match a particular child with an 
adoptive family. In that case, Orphanage Y, which is not a public 
foreign authority or a competent authority, is providing at least 
one adoption service (identifying a child and arranging an 
adoption). Throughout the adoption process, Facilitator A and 
Orphanage Director B work together to prepare documentation on the 
child and move the adoption paperwork through various ministries and 
government offices. Because ``providing'' an adoption service 
includes ``facilitating'' the provision of an adoption service, all 
the contributing services involved in placing a particular child 
with a particular family are considered the provision of an adoption 
service, and therefore must be supervised if not performed by the 
primary provider or public foreign authority. When Agency X uses 
foreign providers to provide adoption services, it must treat them 
as supervised providers in accordance with Sec.  96.46(a) and (b), 
unless it is using the foreign providers in accordance with Sec.  
96.14(c)(3). By contrast, when the prospective adoptive parents 
arrive in the foreign country to adopt the child, Driver/Translator 
C drives them to various adoption-related appointments and serves as 
a translator. He does not, however, assist with transmitting 
documents, paying fees, or any other action related to the provision 
of adoption services. Agency X does not need to treat Driver/
Translator C as a foreign supervised provider, because he is not 
providing or facilitating the provision of adoption services.
    Example 3. Foreign supervised providers. Individual Y works in 
Foreign Country A gathering documentation on children eligible for 
adoption, including reports on the child prepared by orphanages and 
medical reports. Agency X, a U.S. agency, sends Individual Y 
information on prospective adoptive parents. Individual Y takes 
documents for a set of prospective adoptive parents, and for an 
eligible child, to the Ministry with the authority to match parents 
and children. The Ministry reviews the proposed match and issues 
documentation to assign the child to the prospective adoptive 
parent. Agency X must treat Individual Y as a foreign supervised 
provider in accordance with Sec.  96.46(a) and (b) because 
Individual Y is providing adoption services.
    Example 4. Child welfare services exemption. Doctor X evaluates 
the medical records and a video of Child Y. The evaluation will be 
used in an intercountry adoption as part of the placement of Child Y 
and is the only service that Doctor X provides in the United States 
with regard to Child Y's adoption. Doctor X (not employed with an 
accredited agency or approved person) does not need to be approved 
or supervised because she is not providing an adoption service as 
defined in Sec.  96.2.
    Example 5. Home study exemption. Social Worker X, in the United 
States, (not employed with an accredited agency or approved person) 
interviews Prospective Adoptive Parent Y, obtains a criminal 
background study, and checks the references of Prospective Adoptive 
Parent Y, then composes a report and submits the report to an 
accredited agency for use in an intercountry adoption. Social Worker 
X does not provide any other services to Prospective Adoptive Parent 
Y. Social Worker X qualifies as an exempted provider and therefore 
need not be approved or operate as supervised provider. In contrast, 
Social Worker Z, in the United States (not employed with an 
accredited agency or approved person) prepares a home study report 
for Prospective Adoptive Parent(s) W, and in addition re-enters the 
house after Child V has been placed with Prospective Adoptive 
Parent(s) W to assess how V and W are adjusting to life as a family. 
This assessment is post-placement monitoring, which is an adoption 
service. Therefore, Social Worker Z would need to become approved 
before providing this assessment for this intercountry adoption or 
else operate as a supervised provider. If an agency or person 
provides an adoption service in addition to a home study or child 
background study, the agency or person needs to become accredited, 
approved, or supervised before providing that adoption service.
    Example 6. Child background study exemption. An employee of 
Agency X, a U.S. agency, interviews Child Y in the United States and 
compiles a report concerning Child Y's social and developmental 
history for use in an intercountry adoption. Agency X provides no 
other adoption services on behalf of Child Y. Agency X does not need 
to be accredited, approved, or supervised. Agency X is only 
conducting and creating a child background study, and therefore is 
an exempted provider. In contrast, an employee of Agency Z 
interviews Child W in the United States and creates a child 
background study for use in an intercountry adoption. Agency Z 
subsequently identifies prospective adoptive parent(s) and arranges 
a new adoption when Child W's previous adoption is dissolved. Agency 
Z needs to be accredited, approved, or supervised before providing 
this service. If an agency or person provides an adoption service in 
addition to a child background study or home study, the agency or 
person needs to be accredited, approved, or supervised before 
providing the additional service.
    Example 7. Home study and child welfare services exemptions. 
Agency X, a U.S. agency, interviews Prospective Adoptive Parent Y, 
obtains a criminal background check, checks the references of 
Prospective Adoptive Parent Y, then composes a home study and 
submits it to an accredited agency for use in an intercountry 
adoption in the United States. Parent Y later joins a post-adoption 
support group for adoptive parents sponsored by Agency X. If Agency 
X performs no other adoption services, Agency X does not need to be 
accredited, approved, or supervised. If an agency or person provides 
a home study or child background study as well as other services in 
the United States that do not require accreditation, approval, or 
supervision, and no other adoption services, the agency or person is 
an exempted provider.
    Example 8. Exempted provider. Agency X, a U.S. agency, 
interviews Prospective Adoptive Parent(s) Y, obtains a criminal 
background check, checks the references of Prospective Adoptive 
Parent(s) Y, and then composes a home study and submits the report 
to an accredited agency for review and approval. In addition, Agency 
X interviews Child Z and compiles a report concerning Child Z's 
social and developmental history. All of Agency X's work is done in 
the United States. Both reports will be used in an intercountry 
adoption. If Agency X performs no other adoption services, Agency X 
does not need to be accredited, approved, or

[[Page 62331]]

supervised. If an agency or person provides a home study and child 
background study as well as other services that do not require 
accreditation, approval or supervision, and no other adoption 
services, the agency or person is an exempted provider.
    Example 9. Legal services exemption. Attorney X (not employed 
with an accredited agency or approved person) provides advice and 
counsel to Prospective Adoptive Parent(s) Y on filling out DHS 
paperwork required for an intercountry adoption. Among other papers, 
Attorney X prepares an affidavit of consent to termination of 
parental rights and to adoption of Child W to be signed by the birth 
mother in the United States. Attorney X must be approved or 
supervised because securing consent to termination of parental 
rights is an adoption service. In contrast, Attorney Z (not employed 
with an accredited agency or approved person) assists Adoptive 
Parent(s) T to complete an adoption in the State in which they 
reside, after they have been granted an adoption in Child V's 
foreign country of origin. Attorney Z is exempt from approval or 
supervision because she is providing legal services, but no adoption 
services.
    Example 10. Post-placement monitoring. A court in a foreign 
country has granted custody of Child W to Prospective Adoptive 
Parent(s) Y pending the completion of W's adoption. Agency X 
interviews both Prospective Adoptive Parent(s) Y and Child W in 
their home in the United States. Agency X, a U.S. agency, gathers 
information on the adjustment of Child W as a member of the family 
and inquires into the social and educational progress of Child W. 
Agency X must be accredited, approved, or supervised. Agency X's 
activities constitute post-placement monitoring, which is an 
adoption service. In contrast, if Person Z provided counseling for 
Prospective Adoptive Parent(s) Y and/or Child W, but provided no 
adoption services in the United States to the family, Person Z would 
not need to be approved or supervised. Post-placement counseling is 
different than post-placement monitoring because it does not relate 
to evaluating the adoption placement. Post-placement counseling is 
not an adoption service and does not trigger the accreditation/
approval requirements of the IAA or the UAA and this part.
    Example 11. Post-adoption services. Foreign Country H requires 
that post-adoption reports be completed and sent to its Central 
Authority every year until adopted children reach the age of 18. 
Agency X, a U.S. agency, provides support groups and a newsletter 
for U.S. parents that have adopted children from Country H and 
encourages parents to complete their post-adoption reports annually. 
Agency X does not need to be accredited, approved, or supervised 
because it is providing only post-adoption services. Post-adoption 
services are not included in the definition of adoption services, 
and therefore, do not trigger accreditation/approval requirements of 
the IAA or the UAA and this part.
    Example 12. Assuming custody and providing services after a 
disruption. Agency X provides counseling for Prospective Adoptive 
Parent(s) Y and for Child W pending the completion of Child W's 
intercountry adoption. The placement eventually disrupts. Agency X 
helps recruit and identify new prospective adoptive parent(s) for 
Child W, but it is Agency P that assumes custody of Child W and 
places him in foster care until an alternative adoptive placement 
can be found. Agency X is not required to be accredited, approved, 
or supervised because it is not providing an adoption service in the 
United States as defined in Sec.  96.2. Agency P, on the other hand, 
is providing an adoption service and would have to be accredited, 
approved, or supervised.
    Example 13. Making non-judicial determinations of best interest 
of child and appropriateness of adoptive placement of child. Agency 
X, a U.S. agency, receives information about and a videotape of 
Child W from the institution where Child W lives in a foreign 
country. Based on the age, sex, and health problems of Child W. 
Agency X matches Prospective Adoptive Parent(s) Y with Child W. 
Prospective Adoptive Parent(s) Y receive a referral from Agency X 
and agree to accept the referral and proceed with the adoption of 
Child W. Agency X determines that Prospective Adoptive Parent(s) Y 
are a good placement for Child W and notifies the competent 
authority in W's country of origin that it has found a match for 
Child W and will start preparing adoption paperwork. Agency X is 
performing an adoption service and must be accredited, approved, or 
supervised.
    Example 14. Securing necessary consent to termination of 
parental rights and to adoption. Facilitator Y, a foreign 
facilitator, is accredited by Foreign Country Z. He has contacts at 
several orphanages in Foreign Country Z and helps Agency X, a U.S. 
agency, match children eligible for adoption with prospective 
adoptive parent(s) in the United States. Facilitator Y works with 
the institution that is the legal guardian of Child W in order to 
get the documents showing the institution's legal consent to the 
adoption of Child W. Agency X is the only U.S. agency providing 
adoption services in the case. If: Facilitator Y secured the 
necessary consent prior to Agency X's involvement in the case, and 
Agency X and Facilitator Y have not worked together in the current 
or previous accreditation cycle or if Agency X has accepted the case 
as part of a transfer plan, then Agency X could proceed if it 
verifies the consent secured by Facilitator Y in accordance with 
Sec.  96.14(c) and Sec.  96.46(c) and would not need to treat 
Facilitator Y as a supervised provider in this case. However, in any 
case thereafter in which Agency X works with Facilitator Y, Agency X 
must treat Facilitator Y as a foreign supervised provider.
    Example 15. Parents acting on their own behalf. Prospective 
Adoptive Parent Y prepares and submits intercountry adoption-related 
documents to government authorities in Country A. An accredited 
agency or approved person must act as primary provider to ensure 
that all six adoption services are provided, develop and implement a 
service plan, and supervise any agency, person, or other non-
governmental entity who assists Prospective Adoptive Parent Y in 
completing any adoption service. If the consent was obtained or a 
report on the child written by a foreign provider (with whom the 
primary provider has not previously worked in the current or 
previous accreditation cycle) before an accredited agency, approved 
person, or their supervised providers provided any adoption services 
in the case, the primary provider is not responsible for supervising 
that foreign provider's work in this case prior to the primary 
provider's entry on the case. However, the primary provider must 
verify, in accordance with Sec.  96.46(c), any consents obtained by 
any such foreign provider, and any background study on the child or 
home study on the Prospective Adoptive Parent Y prepared by any such 
foreign provider. After the primary provider's entry on the case, 
any adoption services provided by the unsupervised foreign provider 
must be supervised. The primary provider does not need to supervise 
Prospective Adoptive Parent Y because prospective adoptive parents 
do not need to be accredited, approved, or supervised to act on 
their own behalf.
0
 13. Add a sentence to the end of the paragraph in Sec.  96.17 to read 
as follows:


Sec.  96.17   Effective date of accreditation and approval 
requirements.

    * * * Revisions to Sec.  96.60(b) providing for the staggering of 
accreditation and approval renewal applications became effective on 
September 18, 2015.

Subpart E--Evaluation of Applicants for Accreditation and Approval

0
 14. Amend Sec.  96.24 by revising the introductory text of paragraph 
(c) to read as follows:


Sec.  96.24   Procedures for evaluating applicants for accreditation or 
approval.

* * * * *
    (c) The site visit(s) may include, but need not be limited to, 
interviews with birth parents, adoptive parent(s), prospective adoptive 
parent(s), and adult adoptee(s) served by the agency or person, 
interviews with the agency's or person's employees and members of its 
governing body, and interviews with other individuals knowledgeable 
about the agency's or person's provision of adoption services. It may 
also include a review of on-site documents. The agency or person must 
provide an appropriate setting for interviews and review of case 
documents. The accrediting entity must, to the extent practicable, 
advise the agency or person in advance of the type of documents it 
wishes to review during the site visit. The accrediting entity must 
require at least one of the evaluators to participate in each site 
visit. The accrediting entity must determine the number of

[[Page 62332]]

evaluators that participate in a site visit in light of factors such 
as:
* * * * *


Sec.  96.25  [Amended]

0
 15. Amend Sec.  96.25(c) by adding the phrase ``or engages in 
deliberate destruction of documentation,'' after the phrase ``as 
requested, ''.


Sec.  96.26   [Amended]

0
 16. Amend Sec.  96.26(a) by removing the space within the word 
``performance'' .
0
 17. Amend Sec.  96.27 by revising paragraphs (a) and (c) through (g), 
and adding paragraph (h) to read as follows:


Sec.  96.27  Substantive criteria for evaluating applicants for 
accreditation or approval and for country specific authorization.

    (a) The accrediting entity may not grant an agency accreditation or 
a person approval, or permit an agency's or person's accreditation or 
approval to be maintained, unless the agency or person demonstrates to 
the satisfaction of the accrediting entity that it is in substantial 
compliance with the standards in subpart F of this part and, to the 
extent that the agency or person wishes to act as primary provider 
under Sec.  96.14(a) in a country that requires country specific 
authorization, that it is in substantial compliance with subparts N and 
F of this part.
* * * * *
    (c) The standards contained in subpart F of this part apply during 
all the stages of accreditation and approval, including, but not 
limited to, when the accrediting entity is evaluating an applicant for 
accreditation or approval, when it is deciding whether to grant an 
agency or person applicable country specific authorization, when it is 
determining whether to renew an agency's or person's accreditation or 
approval or any applicable country specific authorization(s), when it 
is monitoring the performance of an accredited agency or approved 
person, and when it is taking adverse action against an accredited 
agency or approved person. Except as provided in Sec.  96.25 and 
paragraphs (e) and (f) of this section, the accrediting entity may only 
use the standards contained in subpart F of this part when determining 
whether an agency or person may be granted or permitted to maintain 
accreditation or approval, and, where applicable, country specific 
authorization.
    (d) The Secretary will ensure that each accrediting entity performs 
its accreditation and approval functions using only a method approved 
by the Secretary that is substantially the same as the method approved 
for use by each other accrediting entity. Each such method will 
include: An assigned value for each standard (or element of a 
standard); a method of rating an agency's or person's compliance with 
each applicable standard, including any country specific criteria for 
compliance with that standard under subpart N of this part; and a 
method of evaluating whether an agency's or person's overall compliance 
with all applicable standards establishes that the agency or person is 
in substantial compliance with the standards and can be accredited or 
approved. The Secretary will ensure that the value assigned to each 
standard reflects the relative importance of that standard to 
compliance with the Convention, the IAA, and the UAA, and is consistent 
with the value assigned to the standard by other accrediting entities. 
The accrediting entity must advise applicants of the value assigned to 
each standard (or elements of each standard) at the time it provides 
applicants with the application materials.
    (e) If an agency or person previously has been denied accreditation 
or approval or country specific authorization, has withdrawn its 
application in anticipation of denial, or is reapplying for 
accreditation or approval after cancellation, refusal to renew, or 
temporary debarment, the accrediting entity may take the reasons 
underlying such actions into account when evaluating the agency or 
person for accreditation or approval or granting of country specific 
authorization, and may deny accreditation or approval or country 
specific authorization on the basis of the previous action.
    (f) If an agency or person that has an ownership or control 
interest in the applicant, as that term is defined in section 1124 of 
the Social Security Act (42 U.S.C. 1320a-3), has been debarred pursuant 
to Sec.  96.85, the accrediting entity may take into account the 
reasons underlying the debarment when evaluating the agency or person 
for accreditation or approval or country specific authorization, and 
may deny accreditation or approval or country specific authorization or 
refuse to renew accreditation or approval or country specific 
authorization on the basis of the debarment.
    (g) Substantial compliance with the standards contained in subpart 
F of this part does not eliminate the need for an agency or person to 
comply fully with the laws of the jurisdictions in which it operates. 
An agency or person must provide adoption services in intercountry 
adoption cases consistent with the laws of any State in which it 
operates and with the Convention, the IAA, and the UAA. Persons that 
are approved to provide adoption services may only provide such 
services in States that do not prohibit persons from providing adoption 
services. Nothing in the application of subparts E and F should be 
construed to require a State to allow persons to provide adoption 
services if State law does not permit them to do so.
    (h) The standards contained in subpart F of this part do not 
eliminate the need for an agency or person to comply fully with the 
laws of the foreign countries in which it acts. Accredited agencies or 
approved persons may only provide adoption services when authorized by 
the foreign country to do so, where such authorization is required.

Subpart F--Standards for Intercountry Adoption Accreditation and 
Approval

0
 18. Amend Sec.  96.33 by revising paragraphs (a) and (e) through (i) 
and adding paragraphs (j) through (l) to read as follows:


Sec.  96.33  Budget, audit, insurance, and risk assessment 
requirements.

    (a) The agency or person operates under a budget approved by its 
governing body, if applicable, for management of its funds. The budget 
discloses all remuneration (including perquisites) paid to the agency's 
or person's board of directors, managers, employees, supervised 
providers, and foreign providers either directly or through third party 
contracts or other indirect means.
* * * * *
    (e) The agency's or person's balance sheets show that it operates 
on a sound financial basis and maintains on average sufficient cash 
reserves, assets, or other financial resources to meet its operating 
expenses for two months, taking into account its projected volume of 
cases and its size, scope, and financial commitments.
    (f) The agency or person has a plan to transfer its intercountry 
adoption cases to an appropriate custodian if it ceases to provide or 
is no longer permitted to provide adoption services in intercountry 
adoption cases. The plan includes provisions for an organized closure 
and reimbursement to clients of funds paid for services not yet 
rendered.
    (g) If it accepts charitable donations, the agency or person has 
safeguards in place to ensure that such donations do not influence 
child placement decisions in any way.
    (h)(1)The agency or person assesses the risks it assumes, including 
by reviewing, among other things:
    (i) Compliance with legal and regulatory requirements;

[[Page 62333]]

    (ii) Health and safety;
    (iii) Human resources practices;
    (iv) Contracting practices and compliance;
    (v) Client rights and confidentiality issues;
    (vi) Financial risks; and
    (vii) Conflicts of interest.
    (2) The agency or person uses the assessment to meet the 
requirements in paragraph (i) of this section and as the basis for 
determining the type and amount of professional, general, directors' 
and officers', errors and omissions, and other liability insurance to 
carry.
    (i) The agency or person maintains professional liability insurance 
in amounts reasonably related to its exposure to risk, but in no case 
in an amount less than $1,000,000 in the aggregate.
    (j) The agency's or person's chief executive officer, chief 
financial officer, and other officers or employees with direct 
responsibility for financial transactions or financial management of 
the agency or person are bonded.
    (k) Accounting records are kept up-to-date and balanced on a 
monthly basis, as demonstrated by:
    (1) Timely reconciliation of the bank statement and subsidiary 
records to the general ledger;
    (2) Up-to-date posting of cash receipts and disbursements;
    (3) Monthly updating of the general ledger; and
    (4) Review of the bank reconciliation by a person other than the 
person who performs the reconciliation or signs checks.
    (l) The agency or person complies with the Foreign Corrupt 
Practices Act and other Federal laws. The agency or person has a system 
of internal controls and record keeping that ensures that funds spent 
directly or indirectly for performing any activity related to an 
intercountry adoption are executed and accounted for in accordance with 
the intended purpose of the payment.
0
 19. Revise Sec.  96.34 to read as follows:


Sec.  96.34  Compensation.

    (a) The agency or person does not compensate or contrive to 
compensate, directly or indirectly, any individual or entity involved 
in an intercountry adoption with an incentive fee or contingent fee for 
each child located or placed for adoption.
    (b) The agency or person compensates its directors, officers, 
employees, and supervised providers or any other agent, individual or 
entity involved in an intercountry adoption who provide intercountry 
adoption services only for services actually rendered and only on a 
fee-for-service, hourly wage, or salary basis rather than a contingent 
fee basis.
    (c) The agency or person does not make any payments, promise 
payment, or give other consideration to any individual directly or 
indirectly involved in provision of adoption services in a particular 
case, except for salaries or fees for services actually rendered and 
reimbursement for costs incurred. This does not prohibit an agency or 
person from providing in-kind or other donations that are not intended 
to influence or affect a particular adoption. All such donations should 
be disclosed to the accrediting entity.
    (d) The fees, wages, or salaries paid to the directors, officers, 
employees, supervised providers, or any other agent, individual or 
entity involved in an intercountry adoption on behalf of the agency or 
person are not unreasonably high in relation to the services actually 
rendered, taking into account what such services actually cost in the 
country in which the services are provided, the location, number, and 
qualifications of staff; workload requirements; budget; and size of the 
agency or person.
    (e) Any other compensation paid or provided to the agency's or 
person's directors or members of its governing body is not unreasonably 
high in relation to the services rendered, taking into account the same 
factors listed in paragraph (d) of this section and its for-profit or 
nonprofit status.
    (f) The agency or person identifies all vendors to whom clients are 
referred for non-adoption services and discloses to the accrediting 
entity and the agency's or person's clients, any corporate or financial 
arrangements and any family relationships with such vendors.
0
 20. Amend Sec.  96.35:
0
 a. By revising the introductory text of paragraph (b) and paragraphs 
(b)(8) and (9), and adding paragraph (b)(10);
0
 b. By revising the introductory text of paragraph (c) and paragraph 
(c)(2); and
0
 c. By removing and reserving paragraphs (c)(4) and (d)(2).
    The additions and revisions read as follows:


Sec.  96.35  Suitability of agencies and persons to provide adoption 
services consistent with the Convention.

* * * * *
    (b) In order to permit the accrediting entity to evaluate the 
suitability of an agency or person for accreditation or approval and 
any applicable country specific authorization under subpart N, the 
agency or person discloses to the accrediting entity the following 
information related to the agency or person, under its current or any 
former name:
* * * * *
    (8) For the prior five-year period, any instances where the agency 
or person has filed for bankruptcy;
    (9) Descriptions of any businesses or activities that are 
inconsistent with the principles of the Convention and that have been 
or are currently carried out by the agency or person, affiliate 
organizations, or by any organization in which the agency or person has 
an ownership or controlling interest; and
    (10) Any instances where any current director, officer, or employee 
was involved in any of the activities in paragraphs (b)(1) through (9) 
of this section while employed by another entity involved in providing 
an adoption service.
    (c) In order to permit the accrediting entity to evaluate the 
suitability of an agency or person for accreditation or approval, the 
agency or person (for its current or any former names) discloses to the 
accrediting entity the following information about its individual 
directors, officers, and employees (in their current or former 
capacities or employment):
* * * * *
    (2) Any convictions, formal disciplinary actions or known current 
investigations of any such individual who is in a senior management 
position for acts involving financial irregularities;
* * * * *
0
 21. Revise Sec.  96.36(b) to read as follows:


Sec.  96.36   Prohibition on child buying.

* * * * *
    (b) The agency or person has written policies and procedures in 
place reflecting the prohibitions in paragraph (a) of this section and 
reinforces them in its employee training programs. The agency's or 
person's policies and procedures require its employees and agents to 
retain a record of the payment or fee tendered and the purpose for 
which it was paid for as long as adoption records are kept in 
accordance with 22 CFR part 98, and provide a copy thereof to the 
agency or person.
0
 22. Add paragraph (h) to Sec.  96.37 to read as follows:


Sec.  96.37  Education and experience requirements for social service 
personnel.

* * * * *
    (h) The agency or person has sufficient financial resources and 
appropriately qualified personnel in place and assigned to appropriate 
duties such that the agency or person can demonstrate that the agency 
or person

[[Page 62334]]

can provide adoption-related services that involve the application of 
clinical skills and judgment, including post-placement counseling and 
support.
0
 23. Amend Sec.  96.38 by revising paragraphs (a)(2), (b)(1), (4), and 
(7), and (d) to read as follows:


Sec.  96.38  Training requirements for social service personnel.

    (a) * * *
    (2) The INA provisions applicable to the immigration of children 
described in INA 101(b)(1)(F) and (G);
* * * * *
    (b) * * *
    (1) The factors in the foreign countries that lead to children 
needing adoptive families;
* * * * *
    (4) Psychological issues facing children who have experienced 
trauma, including abuse or neglect, and/or whose parents' parental 
rights have been terminated because of abuse or neglect;
* * * * *
    (7) The most frequent sociological, medical, and psychological 
problems experienced by children from the foreign countries served by 
the agency or person.
* * * * *
    (d) The agency or person exempts newly hired and current employees 
from elements of the orientation and initial training required in 
paragraphs (a) and (b) of this section only where the employee has 
demonstrated competence in the topics outlined in those paragraphs and 
knowledge of the Convention, the IAA, and the UAA.
0
 24. Amend Sec.  96.39 by revising paragraphs (a)(1) through (3) and 
adding paragraphs (a)(4) through (6) to read as follows:


Sec.  96.39  Information disclosure and quality control practices.

    (a) * * *
    (1) Its adoption service policies and practices, including general 
eligibility criteria and fees;
    (2) The supervised, exempted, and foreign providers with whom the 
prospective client(s) can expect to work in the United States and in 
the child's country of origin and the usual costs associated with their 
services;
    (3) A sample written adoption services contract substantially like 
the one that the prospective client(s) will be expected to sign should 
they proceed;
    (4) Every country in which it is authorized by the foreign country 
or otherwise permitted to work;
    (5) Every country for which the agency or person has received 
country specific authorization when so required by the Secretary; and
    (6) Any past and current adverse action.
* * * * *
0
 25. Amend Sec.  96.40 by:
0
 a. Revising paragraphs (a) through (c);
0
 b. Redesignating paragraphs (d) through (h) as paragraphs (g) through 
(k), respectively;
0
 c. Adding new paragraphs (d) through (f); and
0
 d. Revising newly redesignated paragraph (j).
    The revisions and additions read as follows:


Sec.  96.40   Fee policies and procedures.

    (a) In general. (1) Before prospective adoptive parent(s) contract 
with the agency or person for provision of adoption services, the 
agency or person provides:
    (i) To all interested prospective adoptive parents, a written 
schedule of expected total fees and estimated expenses conforming to 
the categories of adoption expenses in the United States found in 
paragraph (b) of this section and in foreign countries found in 
paragraph (c) of this section; and
    (ii) An explanation of the conditions under which fees or expenses 
may be charged, waived, reduced, or refunded if the service is not 
provided, and information regarding when and how the fees and expenses 
must be paid.
    (2) If prospective adoptive parent(s) contact an agency or person 
after initiating or completing an adoption on their own behalf, the 
agency or person must identify in writing which adoption service(s) it 
will provide, including through supervision or verification, and the 
expected total fees and estimated expenses for each remaining service, 
or the fees for acting as a primary provider.
    (b) Expected fees and estimated expenses in the United States: 
Before providing any adoption service to prospective adoptive 
parent(s), the agency or person itemizes and discloses in writing the 
expected fees and expenses in the United States in connection with an 
intercountry adoption including, but not limited to, the following:
    (1) Home study, training, preparation, post-placement and post-
adoption reporting, and expenses. (i) Expected fees and estimated 
expenses for home study preparation and, if necessary, review and 
approval, whether the home study is to be prepared directly by the 
agency or person itself, or prepared by a supervised provider, exempted 
provider, or approved person and reviewed and approved as required 
under Sec.  96.47(c), or if the home study is to be prepared by a 
public domestic authority and the agency or person collects the 
associated fees;
    (ii) Expected fees and estimated expenses for training and 
preparation for the prospective adoptive parents;
    (iii) Expected fees and estimated expenses for preparation of post-
placement and/or post-adoption reports.
    (2) Medical expenses related to the child. Expected fees and 
estimated expenses for consultations, examinations, opinions, or 
certificates from medical professionals in the United States.
    (3) Fees to cover overhead and operating costs. (i) Operational 
costs that will be charged on a pro rata basis for operating programs 
in the foreign country, such as but not limited to the agency's or 
person's employee travel to the foreign country;
    (ii) Operational costs that will be charged on a pro rata basis to 
include personnel costs for personnel in the United States, 
administrative overhead, communications and publications costs, 
training and education for personnel, and other operational costs.
    (4) Legal and court fees. Expected fees and estimated expenses 
provided for a specific adoption:
    (i) For anticipated legal services in the United States; and
    (ii) For U.S. court or other adjudicative fees.
    (5) Travel expenses. If any travel, transportation, and 
accommodation services are to be arranged by the agency or person for 
the prospective adoptive parent(s), the expected fees and estimated 
expenses for these services; if travel and transportation services are 
not arranged by the agency or person for the prospective adoptive 
parents, an estimate of the direct cost to the prospective adoptive 
parents of travel, transportation, and accommodation services.
    (6) Fees for provision of adoption services. Expected fees and 
estimated expenses for providers of adoption services, including:
    (i) Supervised providers in the United States; and
    (ii) Exempted providers in the United States.
    (7) Translation and documentation expenses. Expected fees and 
estimated expenses for obtaining any necessary documents and for any 
translation of documents related to the adoption, along with 
information on whether the prospective adoptive parent(s) will be 
expected to pay such costs directly or to third parties, or through the 
agency or person. This category includes, but is not limited to, costs 
for obtaining, translating, or copying records or

[[Page 62335]]

documents required to complete the adoption; costs for the child's 
court documents, passport, adoption certificate and other documents 
related to the adoption; and costs for authentications, for 
notarizations and for certifications in the United States.
    (c) Expected fees and estimated expenses in a foreign country. 
Before providing any adoption service to prospective adoptive 
parent(s), the agency or person itemizes and discloses in writing the 
expected fees and expenses in connection with an intercountry adoption 
in the foreign country as follows:
    (1) Medical expenses related to the child. Expected fees and 
estimated expenses for consultations, examinations, opinions, or 
certificates from medical professionals in the foreign country.
    (2) Fees to cover overhead and operating costs. Operational costs 
that will be charged on a pro rata basis in the foreign country, such 
as overhead or operating expenses in support of the agency's or 
person's foreign activities relating to intercountry adoption in 
general.
    (3) Legal and court fees. Expected fees and estimated expenses 
provided for a specific adoption:
    (i) For anticipated legal services in the foreign country; and
    (ii) For foreign court or other adjudicative fees.
    (4) Support for child welfare. Any fixed contribution, amount or 
percentage that the prospective adoptive parent(s) will be expected or 
required to make to child protection or child welfare service programs 
in the foreign country, either directly or indirectly, along with an 
explanation of the intended use of the contribution and the manner in 
which the contribution will be recorded and accounted for. Any such 
required contribution shall comply with the requirements of paragraph 
(e) of this section.
    (5) Travel expenses. Expected fees and estimated expenses incurred 
in the foreign country for travel, guide, interpretation, 
accommodations or other services provided to the prospective adoptive 
parents in the foreign country and arranged by the agency or person, 
and for which the family would be responsible.
    (6) Fees for provision of adoption services. Expected fees and 
estimated expenses for providers of adoption services, including:
    (i) Supervised providers in the foreign country; and
    (ii) Foreign providers.
    (7) Fees for other individuals or entities. (i) Expected fees and 
estimated expenses to or for the Central Authority, competent authority 
or public foreign authority of the government of the foreign country, 
including but not limited to fees charged for services rendered or for 
processing fees;
    (ii) Expected fees and estimated expenses paid to other individuals 
or entities in the foreign country either directly or through the 
agency or person or its supervised or other providers.
    (8) Translation and documentation expenses. Expected fees and 
estimated expenses for obtaining any necessary documents and for any 
translation of documents related to the adoption, along with 
information on whether the prospective adoptive parent(s) will be 
expected to pay such costs directly or to third parties, or through the 
agency or person. This category includes, but is not limited to, costs 
for obtaining, translating, or copying records or documents required to 
complete the adoption, costs for the child's court documents, passport, 
adoption certificate, and other documents related to the adoption, and 
costs for authentications, for notarizations and for certifications in 
the foreign country.
    (d) All other fees and estimated expenses. All other fees and 
estimated expenses not recorded and disclosed in paragraph (c) of this 
section must be recorded as part of paragraph (b) of this section, 
including expected fees and estimated expenses charged to prospective 
adoptive parents residing in a third country or in the foreign country.
    (e) Informing the accrediting entity of expected fees and estimated 
expenses. Agencies and persons shall provide the accrediting entity 
with an itemized schedule of fees for each country for which the agency 
or person has an intercountry adoption program that includes the fee 
information established in paragraphs (b) and (c) of this section.
    (f) If the agency or person provides support to orphanages or 
child-welfare centers in a foreign country for the care of children 
including, but not limited to, costs for food, clothing, shelter and 
medical care, or foster care services:
    (1) The amounts paid should not be unreasonably high in relation to 
the services actually rendered, taking into account what such services 
actually cost in the country in which the services are provided; and
    (2) The agency or person may not require prospective adoptive 
parents to pay fees or make contributions that are connected to the 
care of a particular child or are based on the length of time an 
adoption takes to complete, nor may they arrange, facilitate, or 
encourage such payments between prospective adoptive parents or any 
individual, entity or orphanage.
* * * * *
    (j) The agency or person does not customarily charge additional 
fees and expenses beyond those disclosed in the adoption services 
contract and has a written policy to this effect. In the event that 
unforeseen additional fees and expenses are incurred, the agency or 
person or its supervised providers may charge such additional fees and 
expenses only under the following conditions:
    (1) It discloses the fees and expenses in writing to the 
prospective adoptive parent(s);
    (2) It obtains the specific consent of the prospective adoptive 
parent(s) prior to expending any funds in excess of $1000 for which the 
agency or person will hold the prospective adoptive parent(s) 
responsible; and
    (3) It provides written receipts to the prospective adoptive 
parent(s) for fees and expenses paid directly by the agency or person 
in the foreign country and retains copies of such receipts.
* * * * *
0
 26. Revise Sec.  96.41(b) to read as follows:


Sec.  96.41   Procedures for responding to complaints and improving 
service delivery.

* * * * *
    (b) The agency or person permits any birth parent, prospective 
adoptive parent or adoptive parent, or adoptee to lodge directly with 
the agency or person signed and dated complaints about any of the 
services or activities of the agency or person including its use of 
supervised providers and verification of adoption services provided by 
foreign providers that he or she believes raise an issue of compliance 
with the Convention, the IAA, the UAA, or the regulations implementing 
the IAA or UAA, and advises such individuals of the additional 
procedures available to them if they are dissatisfied with the agency's 
or person's response to their complaint.
* * * * *
0
 27. Amend Sec.  96.43 by:
0
 a. Revising paragraphs (b)(3)(v) through (vii) and adding paragraphs 
(b)(3)(viii) through (xii);
0
 b. Revising paragraphs (b)(4)(v) through (vii) and adding paragraphs 
(b)(4)(viii) through (xii); and
0
 c. Revising paragraphs (b)(5) and (6).
    The additions and revisions read as follows:


Sec.  96.43  Case tracking, data management, and reporting.

* * * * *
    (b) * * *

[[Page 62336]]

    (3) * * *
    (v) Citizenship of the child;
    (vi) Location of the child's adoption documentation and 
documentation relating to the citizenship or immigration status of the 
child;
    (vii) Last known physical location of the child;
    (viii) Name of legal guardian(s) or physical custodian(s) of the 
child;
    (ix) The reason(s) for and resolution(s) of the disruption of the 
placement for adoption, including information on the child's re-
placement for adoption and final legal adoption;
    (x) The names of the agencies or persons that handled the placement 
for adoption;
    (xi) The plans for the child; and
    (xii) Which authorities have been notified of the disruption.
    (4) * * *
    (v) Citizenship of the child;
    (vi) Location of the child's adoption documentation and 
documentation relating to the citizenship or immigration status of the 
child;
    (vii) Last known physical location of the child;
    (viii) Name of legal guardians or physical custodian of the child;
    (ix) The reason(s) for and resolution(s) of the dissolution of the 
adoption, to the extent known by the agency or person;
    (x) The names of the agencies or persons that handled the placement 
for adoption;
    (xi) The plans for the child; and
    (xii) Which authorities have been notified of the dissolution.
    (5) Information on the shortest, longest, and average length of 
time it takes to complete an intercountry adoption, set forth by the 
child's country of origin, calculated from the time the child is 
matched with the prospective adoptive parent(s) until the time the 
adoption is finalized by a judicial or administrative body, excluding 
any period for appeal;
    (6) Information on the range of adoption fees, including the 
lowest, highest, average, and the median of such fees, set forth by the 
child's country of origin, charged by the agency or person for 
intercountry adoptions involving children immigrating to the United 
States in connection with their adoption for each category in Sec.  
96.40(b) and (c).
* * * * *
0
 28. Amend Sec.  96.44 by adding paragraphs (c) through (e) to read as 
follows:


Sec.  96.44  Acting as primary provider.

* * * * *
    (c) If applying for CSA, the agency or person demonstrates its 
capacity to meet all requirements for the applicable country specific 
authorization according to subparts F and N of this part.
    (d) The agency or person, when acting as primary provider, ensures 
that the steps in the intercountry adoption process are completed in 
accordance with applicable State, federal, and foreign law and in a 
manner that does not prejudice the child's eligibility for an immigrant 
visa petition approval and visa issuance under section 101(b)(1)(F) or 
(G) of the INA. For example, in Convention cases, this generally 
requires providing services so that the applicable immigrant visa 
petition is filed with USCIS before the petitioner completed the 
adoption or obtained legal custody for purposes of emigration and 
adoption. (See also 8 CFR 204.309(b)(1)). This section does not 
preclude an agency or person from acting as a primary provider in cases 
in which adoption services were already provided before that agency or 
person became involved.
    (e) The agency or person, when acting as a primary provider, 
provides adoption services in a manner that, consistent with U.S. and 
foreign law, collects all appropriate and required documentation to 
demonstrate the child's eligibility for immigrant visa petition 
approval and visa issuance under section 101(b)(1)(F) or (G) of the 
INA.
0
 29. Amend Sec.  96.46 by revising paragraphs (b)(4) and (c)(1) through 
(3) to read as follows:


Sec.  96.46  Using providers in foreign countries.

* * * * *
    (b) * * *
    (4) Requires the foreign supervised provider to compensate its 
directors, officers, and employees or agents who perform any activity 
related to an intercountry adoption on a fee-for-service, hourly wage, 
or salary basis, rather than based on whether a child is placed for 
adoption, located for an adoptive placement, or on a similar contingent 
fee basis;
* * * * *
    (c) * * *
    (1) Any necessary consent to termination of parental rights or to 
adoption obtained by the foreign provider was obtained in accordance 
with applicable U.S. law, foreign law and, in Convention countries, 
Article 4 of the Convention; in non-Convention countries, any necessary 
consents should be obtained consistent with Article 4 of the 
Convention.
    (2) Any background study and report on a child in a case involving 
immigration to the United States (an incoming case) performed by the 
foreign provider was performed in accordance with applicable U.S. law, 
foreign law and, in Convention countries, Article 16 of the Convention; 
in non-Convention countries, such background study and report should be 
performed consistent with Article 16 of the Convention.
    (3) Any home study and report on prospective adoptive parent(s) in 
a case involving emigration from the United States (an outgoing 
Convention adoption case) performed by the foreign provider was 
performed in accordance with applicable U.S. law, foreign law and 
Article 15 of the Convention.
0
 30. Add paragraph (e) to Sec.  96.47 to read as follows:


Sec.  96.47  Preparation of home studies in incoming cases.

* * * * *
    (e) If, based on new information relating to paragraph (a)(1) of 
this section or 8 CFR 204.311, the agency or person withdraws its 
recommendation of the prospective adoptive parent(s) for adoption or 
the agency that reviewed and approved a home study withdraws any such 
approval of the home study required under paragraph (c) of this 
section, the agency or person must:
    (1) Notify the prospective adoptive parent(s), and if applicable, 
the home study preparer, of its withdrawal and the reasons for its 
withdrawal, in writing, within five business days of the decision, and 
prior to notifying USCIS;
    (2) Notify USCIS of its withdrawal of its recommendation and/or 
approval and the reasons for its withdrawal, in writing, and within 
five business days of notifying the prospective adoptive parent(s), in 
accordance with the agency's or person's ethical practices and 
responsibilities under Sec.  96.35(a);
    (3) Maintain written records of the withdrawal of its 
recommendation and/or approval and the good cause reasons for the 
withdrawal;
    (4) Handle fees for services not yet performed in accordance with 
Sec.  96.40(a); and
    (5) Comply with any applicable State law requirements and notifies 
any State competent authority discussed in 8 CFR 204.311(t).
0
 31. Revise Sec.  96.48 to read as follows:


Sec.  96.48  Preparation and training of prospective adoptive parent(s) 
in incoming cases.

    (a)(1) The agency or person verifies that prospective adoptive 
parent(s) have satisfactorily completed the training required by their 
State of actual or proposed residence in the United States to adopt a 
child through the State's child welfare system, or an equivalent where 
a State program is unavailable for

[[Page 62337]]

prospective adoptive parent(s) who wish to complete an intercountry 
adoption. The agency or person shall not refer a child or charge for or 
contractually obligate the prospective adoptive parent(s) to pay for 
the following adoption services until the training required under this 
paragraph has been completed:
    (i) Identifying a child for adoption and arranging an adoption;
    (ii) Monitoring of a case after a child has been placed with 
prospective adoptive parent(s) until final adoption; and
    (iii) Where made necessary by disruption before final adoption, 
assuming custody and providing (including facilitating provision of) 
child care or any other social service pending an alternative 
placement.
    (2) This section does not preclude an agency or person from 
providing adoption services in cases in which that agency or person was 
not involved prior to the identification of a particular child or in 
cases where documented, compelling, urgent, and extraordinary 
circumstances involving the child's best interests require an expedited 
referral. Upon referral in such cases, the primary provider will be 
required to ensure the necessary training has been completed in a 
reasonable time.
    (b) The agency or person also provides the prospective adoptive 
parent(s) with at least seven additional hours (independent of the home 
study) of preparation and training, as described in this paragraph, 
designed to promote a successful intercountry adoption. The agency or 
person provides such training before the prospective adoptive parent(s) 
travel to adopt the child or the child is placed with the prospective 
adoptive parent(s) for adoption. The preparation and training provided 
by the agency or person includes a combination of interactive 
discussion, counseling, and development of solution-oriented strategies 
to address the following topics:
    (1) The intercountry adoption process, the general characteristics 
and needs of children awaiting adoption, and the in-country conditions 
that affect children in the foreign country from which the prospective 
adoptive parent(s) plan to adopt;
    (2) The effects and long-term impact on children of the behavioral, 
medical, and emotional difficulties that may be prevalent in children 
who have faced the following:
    (i) Malnutrition, relevant environmental toxins, maternal substance 
abuse, any other known genetic, health, emotional, and developmental 
risk factors associated with children from the expected country of 
origin;
    (ii) Leaving familiar ties and surroundings and the grief, loss, 
and identity issues that children may experience in intercountry 
adoption;
    (iii) Institutionalization, including the effect on children of the 
length of time spent in an institution and of the type of care provided 
in the expected country of origin;
    (iv) Attachment disorders and other emotional problems that 
institutionalized or traumatized children and children with a history 
of multiple caregivers may experience, before and after their adoption;
    (3) The general characteristics of successful intercountry adoptive 
placements, including information on the financial resources, time, and 
insurance coverage necessary for handling the child's and family's 
adjustment and medical, therapeutic, and educational needs, including 
language acquisition;
    (4) The family's experience with adoption and discussion of any 
previous intercountry or domestic adoptions, anticipated future plans 
for bringing additional children into the family, the prospective 
adoptive parent(s) past and present parenting experience, the number 
and ages of other children, prior home study approvals and denials, 
past compliance with post-placement reporting required by the country 
of origin, and any medical, educational, or therapeutic needs of the 
current members of the family;
    (5) Post-placement and post-adoption services that may assist the 
family to respond effectively to adjustment, behavioral, and other 
difficulties that may arise after the child is placed with the adoptive 
parent(s);
    (6) General information about disruption of placement and 
dissolution of adoption and discussion of issues that may lead to 
disruption or dissolution, including how parent(s) may locate 
appropriate resources and specific points of contact for support;
    (7) Any disrupted placements or dissolved adoptions in which the 
prospective adoptive parent(s) were involved, reasons for the past 
disruption or dissolution, and information about the welfare and 
whereabouts of any previously adopted children;
    (8) The laws and adoption processes of the expected country or 
countries of origin, including foreseeable delays and impediments to 
finalization of an adoption; U.S. immigration processes and procedures 
relevant to the expected country (or countries) of origin; and the 
prospective adoptive parent(s)' rights and responsibilities in the 
event they determine not to proceed after arriving in the child's 
country of origin;
    (9) The long-term implications for a family that has become 
multicultural through intercountry adoption;
    (10) For prospective adoptive parent(s) seeking approval to adopt 
two or more unrelated children, the differing needs of such children 
based on their respective ages, backgrounds, length of time outside of 
family care, and the time management requirements and other challenges 
that may be presented in such an adoption plan; and
    (11) Any reporting requirements associated with intercountry 
adoptions, including any post-placement or post-adoption reports 
required by the expected country of origin.
    (c)(1) In order to prepare prospective adoptive parent(s) as fully 
as possible for the adoption of a particular child, the agency or 
person provides:
    (i) At least three additional hours of training that:
    (A) Take place after identification of a particular child and prior 
to acceptance of the referral by the prospective adoptive parent(s); 
and
    (B) Include counseling on:
    (1) The child's history and cultural, racial, religious, ethnic, 
and linguistic background;
    (2) The known health risks in the specific region or country where 
the child resides; and
    (3) Any other medical, social, background, birth history, 
educational data, developmental history, or any other data known about 
the particular child; and
    (ii) A statement from the primary provider suitable for submission 
with the immigrant petition signed under penalty of perjury under 
United States law, indicating that all of the preparation and training 
provided for in Sec.  96.48 has been completed.
    (2) This section does not preclude an agency or person from 
providing adoption services in cases in which that agency or person was 
not involved prior to the identification of a particular child. If the 
child was referred prior to the involvement of an agency or person, the 
agency or person must complete this training requirement within a 
reasonable time after the agency or person is engaged to provide 
adoption services or must verify that it has already been completed. 
The agency or person may not continue to provide adoption services if a 
reasonable time has elapsed without completing the training.
    (d) The agency or person provides such training through a 
combination of appropriate methods, including:

[[Page 62338]]

    (1) Collaboration among agencies or persons to share resources to 
meet the training needs of prospective adoptive parents;
    (2) Group seminars offered by the agency or person or other 
agencies or training entities;
    (3) Individual counseling sessions; and
    (4) Video, computer-assisted, or distance learning methods using 
standardized curricula; not to exceed 25 percent of the total training 
time for prospective adoptive parent(s) residing in the United States.
    (e) The agency or person provides additional in-person, 
individualized counseling and preparation, as needed, to meet the needs 
of the prospective adoptive parent(s) in light of the particular child 
to be adopted and his or her special needs, and any other training or 
counseling needed in light of the child background study or the home 
study.
    (f) The agency or person provides the prospective adoptive 
parent(s) with additional training or counseling, if requested by the 
prospective adoptive parent(s), and information about print, internet, 
and other resources available for continuing to acquire information 
about common behavioral, medical, and other issues; connecting with 
parent support groups, adoption clinics and experts; crisis 
intervention and respite care; and seeking appropriate help when 
needed, including points of contact for assistance to disrupt a 
placement for adoption or dissolve an adoption in a manner that ensures 
the best interests of the child.
    (g) The agency or person shall not exempt prospective adoptive 
parent(s) from all or part of the verification requirements in 
paragraph (a)(1) of this section, from the training requirements in 
paragraph (c)(1)(i) of this section, or from the certification 
requirements in paragraph (c)(1)(ii) of this section, but may exempt 
prospective adoptive parents from completing all or part of the 
training requirements referenced in paragraphs (a) and (b) of this 
section when:
    (1) The agency or person confirms that no more than 24 months have 
elapsed since the prospective adoptive parent(s) satisfactorily 
completed identical training; and
    (2) The agency or person determines that such previous training was 
adequate.
    (h) The agency or person records the dates, nature, and extent of 
the training and preparation provided to the prospective adoptive 
parent(s) including, but not limited to, all of the training required 
in paragraphs (a) through (c) and (e) and (f) of this section in the 
adoption record.
0
 32. Revise Sec.  96.50(c), (d), and (h) to read as follows:


Sec.  96.50   Placement and post-placement monitoring until final 
adoption in incoming cases.

* * * * *
    (c) When a placement for adoption is in crisis in the post-
placement phase, the agency or person takes all appropriate measures to 
provide or arrange for counseling by an individual or entity with 
appropriate skills to assist the family in dealing with the problems 
that have arisen; informs the parents of local and State laws and legal 
resources pertaining to disruption of placements and dissolution of 
adoptions and appropriate measures for making another placement of the 
child; explains potential risks to the child; and provides resources 
for addressing potential future crises including dissolution.
    (d) If counseling does not succeed in resolving the crisis and the 
placement is disrupted, the agency or person assuming custody of the 
child assumes responsibility for making another placement of the child, 
in accordance with the agency's or person's written policy for handling 
disruptions.
* * * * *
    (h) The agency or person takes steps to:
    (1) Ensure that an order declaring the adoption as final is sought 
by the prospective adoptive parent(s), and in Convention adoptions is 
entered in compliance with section 301(c) of the IAA (42 U.S.C. 
14931(c)); and
    (2)(i) Notify the Secretary of the finalization of the adoption 
within thirty days of the entry of the order; or
    (ii) Notify the Secretary of the disruption of, or where 
appropriate, the intent to disrupt, the placement within 24 hours, and 
sooner than that if possible, upon learning of such information.
0
 33. Revise Sec.  96.51(b), (c), and (d) to read as follows:


Sec.  96.51  Post-adoption services in incoming cases.

* * * * *
    (b) The agency or person informs the prospective adoptive parent(s) 
whether post-adoption services, including any post-adoption reporting, 
are included in the agency's or person's fees and, if not, enumerates 
the cost the agency or person would charge for such services. The 
agency or person also informs the prospective adoptive parent(s) in the 
adoption services contract whether it will provide services if an 
adoption is dissolved, and, if it indicates it will, it provides a plan 
describing the agency's or person's responsibilities or if it will not, 
provides information about local, State, and other entities that may be 
consulted for assistance in the event an adoption is dissolved.
    (c) When post-adoption reports are required by the child's country 
of origin, the agency or person includes a requirement for such reports 
in the adoption services contract and takes all appropriate measures to 
encourage adoptive parent(s) to provide such reports, and notifies the 
Secretary in the event an adoptive parent(s) refuses to comply with 
such requirements.
    (d) The agency or person notifies the Secretary of the dissolution 
of, or where appropriate, the intent to dissolve a final adoption 
immediately upon discovering such information. The agency or person 
does not return from the United States an adopted child whose adoption 
has been dissolved unless the Central Authority of the country of 
origin and the Secretary have approved the return in writing.
0
 34. Amend Sec.  96.52 by revising paragraph (b)(1) and adding 
paragraph (f) to read as follows:


Sec.  96.52   Performance of Convention communication and coordination 
functions in incoming cases.

* * * * *
    (b) * * *
    (1) Transmit on a timely basis the home study, including any 
updates and amendments, to the Central Authority or other competent 
authority of the child's country of origin;
* * * * *
    (f) The agency or person will notify the Secretary of the 
disruption of a placement or dissolution of an adoption immediately, or 
within 24 hours, and sooner than that if possible, upon discovering 
such information and, in consultation with the Secretary, take 
appropriate steps to notify the Central Authority or other competent 
authority in the child's country of origin.


Sec.  96.53  [Amended]

0
 35. Amend Sec.  96.53(a)(2) by removing the semicolon from the end of 
the paragraph and adding a semicolon after ``section''.
0
 36. Amend Sec.  96.60(b) by adding a sentence to the end of the 
paragraph to read as follows:


Sec.  96.60  Length of accreditation or approval period.

* * * * *
    (b) * * * For agencies and persons that meet these two criteria, 
the Secretary, in his or her discretion, may consider additional 
factors in deciding

[[Page 62339]]

upon an extension including, but not limited to, the agency's or 
person's volume of intercountry adoption cases in the year preceding 
the application for renewal or extension, the agency's or person's 
State licensure record, and the number of extensions available.

Subpart I--Routine Oversight by Accrediting Entities

0
 37. Amend Sec.  96.66:
0
 a. In paragraph (a) by removing ``investigate'' from the last sentence 
and adding in its place ``review''; and
0
 b. By revising paragraph (b) and adding paragraph (d).
    The additions and revisions read as follows:


Sec.  96.66   Oversight of accredited agencies and approved persons by 
the accrediting entity.

* * * * *
    (b) An accrediting entity may, on its own initiative, conduct site 
visits to inspect an agency's or person's premises or programs, with or 
without advance notice, for purposes of random verification of its 
continued compliance or to review a complaint. The accrediting entity 
may consider any information about the agency or person that becomes 
available to it about the compliance of the agency or person. The 
provisions of Sec. Sec.  96.25 and 96.26 govern requests for and use of 
information. If an agency or person fails to provide requested 
documents or information within a reasonable time, or to make employees 
available as requested, or engages in deliberate destruction of 
documentation during the accreditation process or any subsequent 
investigation or review, the accrediting entity may deny accreditation 
or approval or, in the case of an accredited agency or approved person, 
take appropriate adverse action against the agency or person solely on 
that basis.
* * * * *
    (d) The accrediting entity must require accredited agencies and 
approved persons to self-report significant changes and occurrences, 
pursuant to the accrediting entity's policies and procedures, to 
demonstrate their ongoing compliance with the standards and to maintain 
up to date contact information and data.

Subpart J--Oversight Through Review of Complaints

0
 38. Revise Sec.  96.68 to read as follows:


Sec.  96.68   Scope.

    The provisions in this subpart establish the procedures that will 
be used for reviewing complaints against accredited agencies and 
approved persons (including complaints concerning their use of 
supervised providers and verification of adoption services of foreign 
providers) that raise an issue of compliance with the Convention, the 
IAA, the UAA, or the regulations implementing the IAA or UAA, as 
determined by the accrediting entity or the Secretary, and that are 
therefore relevant to the oversight functions of the accrediting entity 
or the Secretary.
0
 39. Revise Sec.  96.69(b) to read as follows:


Sec.  96.69  Filing of complaints against accredited agencies and 
approved persons.

* * * * *
    (b) Complaints against accredited agencies and approved persons 
that raise an issue of compliance with the Convention, the IAA, the 
UAA, or the regulations implementing the IAA or UAA by parties to 
specific intercountry adoption cases and relating to that case may 
first be submitted by the complainant in writing to the primary 
provider and to the agency or person providing adoption services, if a 
U.S. provider is different from the primary provider, or the complaint 
may be filed immediately with the Complaint Registry in accordance with 
Sec.  96.70. If the complainant considers that a complaint that was 
submitted to the complaint processes of the primary provider or the 
agency or person providing the services (if different) has not been 
resolved through that process, or if a complaint that it so submitted 
is resolved by an agreement to take action but the primary provider or 
the agency or person providing the service (if different) fails to take 
such action within thirty days of agreeing to do so, the complaint may 
also be filed with the Complaint Registry in accordance with Sec.  
96.70.
* * * * *
0
 40. Amend Sec.  96.70:
0
 a. In paragraph (a) by removing ``establish'' from the first sentence 
and adding in its place ``maintain''; and
0
 b. By revising paragraph (b)(1) to read as follows:


Sec.  96.70   Operation of the Complaint Registry.

* * * * *
    (b) * * *
    (1) Receive and maintain records of complaints about accredited 
agencies and approved persons, including complaints concerning their 
use of supervised providers and verification of adoption services 
provided by foreign providers and complaints regarding compliance with 
CSA, and make such complaints available to the appropriate accrediting 
entity and the Secretary.
* * * * *


Sec.  96.71  [Amended]

0
 41. Amend Sec.  96.71:
0
 a. In paragraph (a) by removing ``investigating'' from the first 
sentence and adding in its place ``reviewing'';
0
 b. In paragraph (b)(1) by removing ``that'' and adding in its place 
``whether''; and
0
 c. In paragraph (c) by removing ``investigation'' from the first 
sentence, and adding in its place ``review''.
0
 42. Revise Sec.  96.72(b)(2) to read as follows:


Sec.  96.72   Referral of complaints to the Secretary and other 
authorities.

* * * * *
    (b) * * *
    (2) In violation of the INA (8 U.S.C. 1101 et seq.); or
* * * * *

Subpart K--Adverse Action by the Accrediting Entity


Sec.  96.77   [Amended]

0
 43. Amend Sec.  96.77 by removing ``Sec. Sec.  96.33(e)'' and adding 
in its place ``Sec. Sec.  96.33(f)'', in paragraphs (b) and (c).


Sec.  96.79  [Amended]

0
 44. Amend Sec.  96.79(c) by removing the words ``The United States 
district court shall review the adverse action in accordance with 5 
U.S.C. 706.''


 Sec.  96.87  [Amended]

0
 45. Amend Sec.  96.87 by removing ``Sec. Sec.  96.33(e)'' and adding 
in its place ``Sec. Sec.  96.33(f)''.
0
 46. Add subpart N to read as follows:

Subpart N--Country Specific Authorization

Sec.
96.95 Scope.
96.96 Country specific authorization determined by the Secretary.
96.97 Application for CSA, length of CSA, reapplication.
96.98 Renewal of CSA; transfer of cases when renewal not sought.
96.99 Oversight of CSA by the accrediting entity.
96.100 Oversight of CSA through filing of complaints against 
accredited agencies and approved persons.
96.101 Review by the accrediting entity of complaints relating to 
compliance with CSA against accredited agencies and approved 
persons.
96.102 Referral of complaints relating to CSA to the Secretary and 
other authorities.
96.103 Adverse action against accredited agencies or approved 
persons not in substantial compliance with CSA.

[[Page 62340]]

96.104 Procedures governing CSA-related adverse action by the 
accrediting entity.
96.105 Responsibilities of the accredited agency, approved person, 
and accrediting entity following CSA-related adverse action by the 
accrediting entity.
96.106 Accrediting entity procedures to terminate CSA-related 
adverse action.
96.107 Administrative or judicial review of adverse action relating 
to CSA by the accrediting entity.
96.108 Oversight and monitoring of CSA by the Secretary.
96.109 Effective dates; transition.

Sec.  96.95   Scope.

    This subpart applies when the Secretary, in his or her discretion, 
and in consultation with the Secretary of Homeland Security, determines 
that it is necessary to designate one or more countries for which an 
accredited agency or approved person must have country-specific 
authorization (CSA) in addition to accreditation or approval to act as 
primary provider under Sec.  96.14(a) in connection with an 
intercountry adoption in those specified countries. Accreditation or 
approval is required for all agencies or persons who offer, provide, or 
facilitate the provision of any adoption service in the United States 
in connection with an intercountry adoption case, unless such agencies 
or persons are acting as supervised providers or exempted providers in 
that case. CSA is required for accredited agencies or approved persons 
to offer, provide, facilitate, verify, or supervise the provision of 
adoption services, except as a supervised provider or an exempted 
provider, in intercountry adoption cases with respect to a particular 
country designated for CSA.


Sec.  96.96   Country specific authorization determined by the 
Secretary.

    (a) The Secretary may, in his or her discretion, in consultation 
with the Secretary of Homeland Security, determine that CSA is required 
for accredited agencies or approved persons to act as a primary 
provider in intercountry adoption cases with a particular foreign 
country. The Secretary will publish in the Federal Register a list of 
countries for which CSA is required. Changes to that list will also be 
announced via a Federal Register notice.
    (b) An accredited agency or approved person that has received CSA 
from an accrediting entity and meets the requirements of Sec.  96.97, 
may act as a primary provider in intercountry adoption cases with 
respect to the specific foreign country.
    (c) In each intercountry adoption case with a country designated by 
the Secretary as requiring CSA, an accredited agency or approved person 
with the applicable CSA must act as the primary provider.
    (d) CSA does not constitute authorization from a foreign government 
to engage in activities related to intercountry adoption. However, CSA 
ceases automatically and immediately upon the corresponding foreign 
country's withdrawal or cancellation of its authorization of the agency 
or person.
    (e) To receive CSA, accrediting entities may also require an 
accredited agency or approved person to demonstrate that it is in 
substantial compliance with one or more selected accreditation and 
approval standards in subpart F of this part, as determined using a 
method approved by the Secretary, in consultation with the Secretary of 
Homeland Security, that may include:
    (1) Increasing the weight of selected standards from subpart F; and
    (2) Requiring the provision of additional or specified evidence to 
support compliance with selected standards from subpart F.


Sec.  96.97   Application for CSA, length of CSA, reapplication.

    (a) Application procedures. The accrediting entity will establish 
application procedures for CSA. The procedures must be consistent with 
this section and be approved by the Secretary. Application for CSA is 
subject to any relevant provisions of an accrediting entity's fee 
schedule. CSA is governed by the relevant terms of the accrediting 
entity's rating method in Sec.  96.27(d) and any applicable addenda 
thereto that contain country specific compliance criteria, published by 
the accrediting entity and approved by the Secretary.
    (b) Timing of application for CSA. The application procedures for 
CSA may provide that application occurs, to the extent possible, 
concurrently with the initial application for accreditation or approval 
in accordance with subpart D or at renewal pursuant to the process 
outlined in subpart H. These procedures must also establish the process 
for an accredited agency or approved person to apply for CSA for a 
foreign country after its initial application for accreditation or 
approval or its renewal application.
    (c) The accrediting entity must routinely inform applicants in 
writing of its decisions on their CSA applications--whether an 
application has been granted or denied--when those decisions are 
finalized. The accrediting entity must routinely provide this 
information to the Secretary in writing.
    (d) The accrediting entity may, in its discretion, communicate with 
agencies and persons that have applied for CSA about the status of 
their pending applications to afford them an opportunity to correct 
deficiencies that may hinder or prevent approval of CSA.
    (e) Length of CSA. The initial period of CSA will extend from the 
date CSA is granted until the end of the agency's or person's current 
period of accreditation or approval, except that a grant of CSA will 
not be for less than three years and will not exceed five years. In 
cases where an agency's accreditation or a person's approval will end 
before the minimum three years for CSA has passed, CSA will be 
suspended until the accreditation or approval has been renewed. 
Notwithstanding the CSA period granted, the CSA period ends upon the 
suspension or cancellation of the agency's accreditation or person's 
approval or the agency's or person's debarment by the Secretary.
    (f) Review of decisions to deny CSA. (1) There is no administrative 
or judicial review of an accrediting entity's decision to deny an 
application for CSA. As provided in Sec.  96.107, the decision to deny 
includes:
    (i) A denial of the agency's or person's initial application for 
CSA;
    (ii) A denial of an application made after cancellation or refusal 
to renew by the accrediting entity; and
    (iii) A denial of an application made after cancellation or 
debarment by the Secretary.
    (2) The agency or person may petition the accrediting entity for 
reconsideration of a denial. The accrediting entity must establish 
internal review procedures that provide an opportunity for an agency or 
person to petition for reconsideration of the denial.


Sec.  96.98  Renewal of CSA; transfer of cases when renewal not sought.

    (a) The accrediting entity must advise accredited agencies and 
approved persons that it monitors the date by which they should seek 
renewal of CSA so that the renewal process can reasonably be completed 
prior to the expiration of the agency's or person's current 
accreditation or approval. Consistent with Sec.  96.63, if the 
accredited agency or approved person does not wish to renew CSA, it 
must immediately notify the accrediting entity and take all necessary 
steps to complete its intercountry adoption cases and to transfer its 
pending intercountry adoption cases and adoption records to other 
accredited agencies or approved persons with the applicable CSA, or a

[[Page 62341]]

State archive, as appropriate, under the oversight of the accrediting 
entity, before its CSA expires.
    (b) The accredited agency or approved person may seek renewal of 
CSA from a different accrediting entity than the one that handled its 
prior application. If it changes accrediting entities, the accredited 
agency or approved person must so notify the accrediting entity that 
handled its prior application by the date on which the agency or person 
must (pursuant to paragraph (a) of this section) seek renewal of its 
status. The accredited agency or approved person must follow the new 
accrediting entity's instructions when submitting a request for renewal 
and preparing documents and other information for the new accrediting 
entity to review in connection with the renewal request.
    (c) The accrediting entity must process the request for CSA renewal 
in a timely fashion. Before deciding whether to renew CSA, the 
accrediting entity may, in its discretion, advise the agency or person 
of any deficiencies that may hinder or prevent its renewal and defer a 
decision to allow the agency or person to correct the deficiencies. The 
accrediting entity must notify the accredited agency, approved person, 
and the Secretary in writing when it renews or refuses to renew an 
agency's or person's CSA.
    (d) Sections 96.24, 96.25, and 96.26, which relate to evaluation 
procedures and to requests for and use of information, and Sec.  96.27, 
which relates to the procedures and substantive criteria for evaluating 
applicants for accreditation or approval or CSA will govern 
determinations about whether to renew accreditation or approval or make 
a CSA determination.


Sec.  96.99  Oversight of CSA by the accrediting entity.

    (a) The accrediting entity must monitor agencies to whom it has 
granted CSA at least annually to ensure that they are in substantial 
compliance with the compliance criteria for the standards in subpart F 
of this part, as determined using a method approved by the Secretary in 
accordance with Sec.  96.27(d). The accrediting entity must review 
complaints about accredited agencies and approved persons, as provided 
in subpart J of this part.
    (b) An accrediting entity may, on its own initiative, conduct site 
visits to inspect an agency's or person's premises or programs, with or 
without advance notice, for purposes of random verification of its 
continued compliance with respect to CSA or to investigate a complaint 
relating to compliance with CSA. The accrediting entity may consider 
any information about the agency or person that becomes available to it 
about the compliance of the agency or person. The provisions of 
Sec. Sec.  96.25 and 96.26 govern requests for and use of information.
    (c) The accrediting entity must require accredited agencies or 
approved persons to attest annually that they have remained in 
substantial compliance with applicable CSA criteria and to provide 
supporting documentation to indicate such ongoing compliance with the 
applicable standards in subpart F of this part.


Sec.  96.100   Oversight of CSA through filing of complaints against 
accredited agencies and approved persons.

    (a) Complaints relating to CSA will be subject to review by the 
accrediting entity pursuant to Sec.  96.101, when submitted as provided 
in this section and Sec.  96.70.
    (b) Complaints related to compliance with CSA against accredited 
agencies and approved persons that raise an issue of compliance with 
one or more of the accreditation and approval standards in subpart F of 
this part may be submitted in accordance with Sec.  96.69.
    (c) An individual who is not party to a specific intercountry 
adoption case but who has information about an accredited agency or 
approved person may provide that information by filing it in the form 
of a complaint with the Complaint Registry in accordance with Sec.  
96.70.
    (d) A Federal, State, or local government official or a foreign 
Central Authority may file a complaint with the Complaint Registry in 
accordance with Sec.  96.70, or may raise the matter in writing 
directly with the accrediting entity, who will record the complaint in 
the Complaint Registry, or with the Secretary, who will record the 
complaint in the Complaint Registry, if appropriate, and refer it to 
the accrediting entity for review pursuant to Sec.  96.71 or take such 
other action as the Secretary deems appropriate.


Sec.  96.101  Review by the accrediting entity of complaints relating 
to compliance with CSA against accredited agencies and approved 
persons.

    (a) The accrediting entity must establish written procedures, 
including deadlines, for recording, reviewing, and acting upon 
complaints relating to compliance with CSA that it receives pursuant to 
Sec. Sec.  96.69 and 96.70(b)(1). The procedures must be consistent 
with this section and be approved by the Secretary. The accrediting 
entity must make written information about its complaint procedures 
available upon request.
    (b) If the accrediting entity determines that a complaint relating 
to CSA raises an issue of compliance with one or more of the 
accreditation and approval standards in subpart F of this part:
    (1) The accrediting entity must verify whether the complainant has 
already attempted to resolve the complaint as described in Sec.  
96.69(b) and, if not, may refer the complaint to the agency or person, 
or to the primary provider, for attempted resolution through its 
internal complaint procedures;
    (2) The accrediting entity may conduct whatever investigative 
activity (including site visits) it considers necessary to determine 
whether any relevant accredited agency or approved person holding CSA 
may maintain CSA as provided in Sec.  96.27. The provisions of 
Sec. Sec.  96.25 and 96.26 govern requests for and use of information. 
The accrediting entity must give priority to complaints submitted 
pursuant to Sec.  96.69(d); and
    (3) If the accrediting entity determines that the agency or person 
may not maintain CSA, it must take adverse action pursuant to section 
Sec.  96.103.
    (c) When the accrediting entity has completed its complaint review 
process, it must provide written notification of the outcome of its 
investigation, and any actions taken, to the complainant, or to any 
other entity that referred the information.
    (d) The accrediting entity will enter information about the 
outcomes of its investigations and its actions on complaints into the 
Complaint Registry as provided in its agreement with the Secretary.
    (e) The accrediting entity may not take any action to discourage an 
individual from, or retaliate against an individual for, making a 
complaint, expressing a grievance, questioning the conduct of, or 
expressing an opinion about the performance related to compliance with 
CSA of an accredited agency, an approved person, or the accrediting 
entity.


Sec.  96.102   Referral of complaints relating to CSA to the Secretary 
and other authorities.

    (a) An accrediting entity must report promptly to the Secretary any 
substantiated complaint related to compliance with CSA that:
    (1) Reveals that an accredited agency or approved person has 
engaged in a pattern of serious, willful, grossly negligent, or 
repeated failures to comply with the increased evidentiary requirements 
and weight of standards in subpart F of this part; or
    (2) Indicates that continued CSA would not be in the best interests 
of the children and families concerned.

[[Page 62342]]

    (b) An accrediting entity must, after consultation with the 
Secretary, refer, as appropriate, to a State licensing authority, the 
Attorney General, or other law enforcement authorities any 
substantiated complaints related to compliance with CSA that involve 
conduct that is:
    (1) Subject to the civil or criminal penalties imposed by section 
404 of the IAA (42 U.S.C. 14944);
    (2) In violation of the INA (8 U.S.C. 1101 et seq.); or
    (3) Otherwise in violation of Federal, State, or local law.
    (c) When an accrediting entity makes a report pursuant to paragraph 
(a) or (b) of this section, it must indicate whether it is recommending 
that the Secretary take action to debar the agency or person, either 
temporarily or permanently.


Sec.  96.103  Adverse action against accredited agencies or approved 
persons not in substantial compliance with CSA.

    (a) The accrediting entity must take adverse action when it 
determines that an accredited agency or approved person with CSA may 
not maintain CSA as provided in Sec.  96.27(d). The accrediting entity 
is authorized to take any of the following actions against an 
accredited agency or approved person whose compliance the entity 
oversees. Each of these actions by an accrediting entity is considered 
a CSA-related adverse action for purposes of the regulations in this 
part:
    (1) Suspending CSA;
    (2) Canceling CSA;
    (3) Refusing to renew CSA;
    (4) Requiring an accredited agency or approved person to take a 
specific corrective action with respect to CSA to bring itself into 
compliance; and
    (5) Imposing other sanctions including, but not limited to, 
requiring an accredited agency or approved person to cease providing 
adoption services in a particular case or in a specific foreign 
country.
    (b) A CSA-related adverse action taken under this section relates 
only to an agency's or person's CSA. Such adverse action may be 
relevant to, but is not controlling of, adverse action related to 
accreditation and approval under Sec.  96.75.


Sec.  96.104  Procedures governing CSA-related adverse action by the 
accrediting entity.

    (a) The accrediting entity must decide which CSA-related adverse 
action to take based on the seriousness and type of violation and on 
the extent to which the accredited agency or approved person has 
corrected or failed to correct deficiencies of which it has been 
previously informed. The accrediting entity must notify an accredited 
agency or approved person in writing of its decision to take a CSA-
related adverse action against the agency or person. The accrediting 
entity's written notice must identify the deficiencies prompting 
imposition of the CSA-related adverse action.
    (b) Before taking a CSA-related adverse action, the accrediting 
entity may, in its discretion, advise an accredited agency or approved 
person in writing of any deficiencies in its performance that may 
warrant a CSA-related adverse action and provide it with an opportunity 
to demonstrate that a CSA-related adverse action would be unwarranted 
before the CSA-related adverse action is imposed. If the accrediting 
entity takes the CSA-related adverse action without such prior notice, 
it must provide a similar opportunity to demonstrate that the CSA-
related adverse action was unwarranted after the CSA-related adverse 
action is imposed, and may withdraw the CSA-related adverse action 
based on the information provided.
    (c) The provisions in Sec. Sec.  96.25 and 96.26 govern requests 
for and use of information.


Sec.  96.105  Responsibilities of the accredited agency, approved 
person, and accrediting entity following CSA-related adverse action by 
the accrediting entity.

    (a) If the accrediting entity takes a CSA-related adverse action 
against an agency or person, the action will take effect immediately 
unless the accrediting entity agrees to a later effective date.
    (b) If the accrediting entity suspends or cancels the agency's or 
person's CSA, the agency or person must immediately, or by any later 
effective date set by the accrediting entity, cease to provide adoption 
services in all intercountry adoption cases relating to the 
corresponding foreign country. All procedures in Sec.  96.77(b) 
governing the transfer of cases apply, except that the accredited 
agencies or approved persons that assume responsibility for transferred 
cases must have the applicable CSA.
    (c) If the accrediting entity refuses to renew the CSA of an agency 
or person, the agency or person must cease to provide adoption services 
in all foreign countries corresponding to that CSA by the expiration of 
the earlier of either the agency's or person's CSA or the agency's or 
person's accreditation or approval. It must take all necessary steps to 
complete its intercountry adoption cases in those foreign countries 
before its CSA expires. All procedures in Sec.  96.77(c) governing the 
transfer of cases apply, except that, to the extent possible, the 
accredited agencies or approved persons that assume responsibility for 
transferred cases must have the applicable CSA.
    (d) The accrediting entity must notify the Secretary, in accordance 
with procedures established in its agreement with the Secretary, when 
it takes an adverse action that changes the CSA status of an agency or 
person. The accrediting entity must also notify the relevant State 
licensing authority as provided in the agreement.


Sec.  96.106  Accrediting entity procedures to terminate CSA-related 
adverse action.

    (a) The accrediting entity must maintain internal petition 
procedures, approved by the Secretary, to give accredited agencies and 
approved persons an opportunity to terminate CSA-related adverse 
actions on the grounds that the deficiencies necessitating the adverse 
action have been corrected. The accrediting entity must inform the 
agency or person of these procedures when it informs them of the CSA-
related adverse action pursuant to Sec.  96.104(a). An accrediting 
entity is not required to maintain procedures to terminate CSA-related 
adverse actions on any other grounds, or to maintain procedures to 
review its CSA-related adverse actions, and must obtain the consent of 
the Secretary if it wishes to make such procedures available.
    (b) An accrediting entity may terminate a CSA-related adverse 
action it has taken only if the agency or person demonstrates to the 
satisfaction of the accrediting entity that the deficiencies that led 
to the CSA-related adverse action have been corrected. The accrediting 
entity must notify an agency or person in writing of its decision on 
the petition to terminate the CSA-related adverse action.
    (c) If the accrediting entity described in paragraph (b) of this 
section is no longer providing accreditation or approval services, the 
agency or person may petition any accrediting entity with jurisdiction 
over its application.
    (d) If the accrediting entity cancels or refuses to renew CSA, and 
does not terminate the CSA-related adverse action pursuant to paragraph 
(b) of this section, the agency or person may reapply for CSA. Before 
doing so, the agency or person must request and obtain permission to 
make a new application from the accrediting entity that cancelled or 
refused to renew its CSA or, if such entity is no longer

[[Page 62343]]

designated as an accrediting entity, from any alternate accrediting 
entity designated by the Secretary to give such permission. The 
accrediting entity may grant such permission only if the agency or 
person demonstrates to the satisfaction of the accrediting entity that 
the specific deficiencies that led to the CSA cancellation or refusal 
to renew CSA have been corrected.
    (e) If the accrediting entity grants the agency or person 
permission to reapply, the agency or person may file an application 
with that accrediting entity in accordance with subpart D of this part.
    (f) Nothing in this section shall be construed to prevent an 
accrediting entity from withdrawing a CSA-related adverse action if it 
concludes that the action was based on a mistake of fact or was 
otherwise in error. Upon taking such action, the accrediting entity 
will take appropriate steps to notify the Secretary and the Secretary 
will take appropriate steps to notify the relevant authorities or 
entities.


Sec.  96.107  Administrative or judicial review of adverse action 
relating to CSA by the accrediting entity.

    (a) Except to the extent provided by the procedures in Sec.  
96.106, a CSA-related adverse action by an accrediting entity shall not 
be subject to administrative review.
    (b) Section 202(c)(3) of the IAA (42 U.S.C. 14922(c)(3)) provides 
for judicial review in Federal court of adverse actions by an 
accrediting entity, regardless of whether the entity is described in 
Sec.  96.5(a) or (b). When any petition brought under section 202(c)(3) 
raises as an issue whether the deficiencies necessitating the CSA-
related adverse action have been corrected, the procedures maintained 
by the accrediting entity pursuant to Sec.  96.106 must first be 
exhausted. CSA-related adverse actions are only those actions listed in 
Sec.  96.103. There is no judicial review of an accrediting entity's 
decision to deny CSA, including:
    (1) A denial of an initial application;
    (2) A denial of an application made after cancellation or refusal 
to renew by the accrediting entity; and
    (3) A denial of an application made after cancellation or debarment 
by the Secretary.
    (c) In accordance with section 202(c)(3) of the IAA (42 U.S.C. 
14922(c)(3)), an accredited agency or approved person that is the 
subject of a CSA-related adverse action by an accrediting entity may 
petition the United States district court in the judicial district in 
which the agency is located or the person resides to set aside the 
adverse action imposed by the accrediting entity. When an accredited 
agency or approved person petitions a United States district court to 
review the CSA-related adverse action of an accrediting entity, the 
accrediting entity will be considered an agency as defined in 5 U.S.C. 
701 for the purpose of judicial review of the adverse action.


Sec.  96.108  Oversight and monitoring of CSA by the Secretary.

    (a) The Secretary's response to CSA related actions by the 
accrediting entity. There is no administrative review by the Secretary 
of an accrediting entity's decision to deny CSA, or of any decision by 
an accrediting entity to take CSA-related adverse action.
    (b) Suspension or cancellation of CSA by the Secretary. (1) The 
Secretary must suspend or cancel the CSA granted by an accrediting 
entity when the Secretary finds, in the Secretary's discretion, that 
the agency or person is substantially out of compliance with the 
relevant standards in subpart F of this part and that the accrediting 
entity has failed or refused, after consultation with the Secretary, to 
take action.
    (2) The Secretary may suspend or cancel CSA granted by an 
accrediting entity if the Secretary finds that such action:
    (i) Will protect the interests of children;
    (ii) Will further U.S. foreign policy or national security 
interests; or
    (iii) Will protect the ability of U.S. citizens to adopt children.
    (3) If the Secretary suspends or cancels the CSA of an agency or 
person, the Secretary will take appropriate steps to notify the 
accrediting entity, the Permanent Bureau of the Hague Conference on 
Private International Law, and the applicable foreign country, as 
appropriate.
    (c) Reinstatement of CSA after suspension or cancellation by the 
Secretary. (1) An agency or person may petition the Secretary for 
relief from the Secretary's suspension or cancellation of CSA on the 
grounds that the deficiencies necessitating the suspension or 
cancellation have been corrected. If the Secretary is satisfied that 
the deficiencies that led to the suspension or cancellation have been 
corrected, the Secretary shall, in the case of a suspension, terminate 
the suspension or, in the case of a cancellation, notify the agency or 
person that it may reapply for CSA to the same accrediting entity that 
handled its prior application for accreditation or approval. If that 
accrediting entity is no longer providing accreditation or approval 
services, the agency or person may reapply to any accrediting entity 
with jurisdiction over its application. If the Secretary terminates a 
suspension or permits an agency or person to reapply for CSA, the 
Secretary will so notify the appropriate accrediting entity as well as 
the applicable foreign country, as appropriate.
    (2) Nothing in this section shall be construed to prevent the 
Secretary from withdrawing a cancellation or suspension if the 
Secretary concludes that the action was based on a mistake of fact or 
was otherwise in error. Upon taking such action, the Secretary will 
take appropriate steps to notify the accrediting entity, the Permanent 
Bureau of the Hague Conference on Private International Law, and the 
applicable foreign country, as appropriate.


Sec.  96.109  Effective dates; transition.

    (a) When the Secretary designates a country for CSA, the Secretary, 
in consultation with the Secretary of Homeland Security, will establish 
and announce through a Federal Register notice an effective date by 
which CSA for that country is required.
    (b) On and after the effective date described in paragraph (a) of 
this section, CSA is required in accordance with this subpart, except:
    (1) In the case of a child immigrating to the United States, CSA is 
not required if the prospective adoptive parents of the child filed the 
applicable immigration related application or petition as prescribed by 
USCIS before the effective date described in paragraph (a) of this 
section, and the Secretary, in consultation with the Secretary of 
Homeland Security, determines that the circumstances underlying CSA do 
not compel requiring CSA for that case; or
    (2) In the case of a child emigrating from the United States, CSA 
is not required if the prospective adoptive parents of the child 
initiated the adoption process in their country of residence with the 
filing of an appropriate application before the effective date 
described in paragraph (a) of this section and the Secretary determines 
that the circumstances underlying CSA do not compel requiring CSA for 
that case.

    Dated: August 23, 2016.
David T. Donahue,
Acting Assistant Secretary for Consular Affairs, U.S. Department of 
State.
[FR Doc. 2016-20968 Filed 9-7-16; 8:45 am]
 BILLING CODE 4710-06-P
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