Intercountry Adoption: Regulatory Changes to Accreditation and Approval Regulations in Intercountry Adoption, 57238-57283 [2024-14628]

Agencies

• DEPARTMENT OF STATE

[Federal Register Volume 89, Number 134 (Friday, July 12, 2024)]
[Rules and Regulations]
[Pages 57238-57283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14628]



[[Page 57237]]

Vol. 89

Friday,

No. 134

July 12, 2024

Part III





 Department of State





-----------------------------------------------------------------------





22 CFR Part 96





Intercountry Adoption: Regulatory Changes to Accreditation and Approval 
Regulations in Intercountry Adoption; Final Rule

Federal Register / Vol. 89, No. 134 / Friday, July 12, 2024 / Rules 
and Regulations

[[Page 57238]]


-----------------------------------------------------------------------

DEPARTMENT OF STATE

22 CFR Part 96

[Public Notice: 12242]
RIN 1400-AE39


Intercountry Adoption: Regulatory Changes to Accreditation and 
Approval Regulations in Intercountry Adoption

AGENCY: Department of State.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Department of State (the Department) publishes a final 
rule revising the Code of Federal Regulations to amend requirements for 
accreditation and approval by the United States to provide adoption 
services in intercountry adoption cases. This rule amends regulations 
to provide clarification, updates, or other adaptation of familiar 
accreditation and approval standards for intercountry adoption. It also 
includes a new section with alternative procedures for primary 
providers that apply in intercountry adoption by relatives. The new 
regulations for adoption by relatives simplify and streamline the 
adoption process by limiting the number of adoption services the 
primary provider must provide. The final rule emphasizes that 
accredited agencies and approved persons comply with all applicable 
laws in foreign countries where they provide adoption services.

DATES: This final rule becomes effective January 8, 2025.

FOR FURTHER INFORMATION CONTACT: 
     Technical Information: Emily Spencer, (202) 647-4000, 
[email protected].

SUPPLEMENTARY INFORMATION: 

Preamble Contents

I. Introduction
II. Overview of Major Changes and Provisions in the Final Rule
    A. Adoption by Relatives
    B. Compliance With All Applicable Laws
    C. Child Care Payments
    D. Procedures and Requirements for Adverse Action by the 
Secretary, Including for Challenges to Such Adverse Action
    E. Pausing on Revising Standards in Subpart F
    F. Other Significant Changes
III. Section-by-Section Discussion of Significant Public Comments
IV. Timeline for Implementing Changes in the Final Rule
V. Regulatory Analysis

I. Introduction

    This final rule amends 22 CFR part 96 and the changes clarify and 
update the 2006 final rule that established the regulatory framework 
for the accreditation and approval function required under the 1993 
Hague Convention on Protection of Children and Co-operation in Respect 
of Intercountry Adoption (the Convention), the Intercountry Adoption 
Act of 2000 (IAA), and the Intercountry Adoption Universal 
Accreditation Act of 2012 (UAA). The Department drew from its 17 years 
of observations and experience with the accreditation regulations to 
reflect the rule's practical operation, and from the observations of 
adoption stakeholders including, but not limited to, adoptive parents, 
adoption service providers (ASPs), Congressional offices, adult 
adoptees, and law enforcement authorities.
    On November 20, 2020, the Department published a notice of proposed 
rulemaking (NPRM, often referred in this preamble as the proposed 
rule). The proposed rule included changes to subparts A, B, E, F, L, 
and M and a new subpart R. The Department intends to examine changes to 
the remaining subparts at a later time.
    This final rule takes into account public comments received in 
response to the NPRM. The Department appreciates the extensive feedback 
received from stakeholders in response to the NPRM and notes the many 
contributions from stakeholders who recommended substantive revisions 
to the Department's changes in the proposed rule. The final rule 
incorporates many of the substantive revisions proposed by the public. 
Additionally, as explained below, this rule does not include three 
major sections of the proposed rule. The Department will consider 
consultations with stakeholders before making further regulatory 
proposals relating to these three sections.

II. Overview of Major Changes and Provisions in the Final Rule

    This section of the final rule summarizes the major differences 
between the proposed rule and the final rule. This overview is followed 
in part III by a detailed, section-by-section discussion of significant 
comments received in response to the NPRM.

A. Adoption by Relatives

    The long-anticipated \1\ new provisions on adoption by relatives 
were welcomed by most commenters, though some thought the new 
provisions did not go far enough in streamlining the required adoption 
services and should have further limited the role of primary providers 
in relative cases. Most commenters, however, welcomed the simplified 
role of the primary provider in the proposed rule requiring primary 
providers to focus on three of the six adoption services listed in the 
CFR: \2\
---------------------------------------------------------------------------

    \1\ The IAA provided in section 502(a) for establishment by 
regulation of alternative procedures for adoption of children by 
relatives. The Department did not include alternative procedures for 
adoption by relatives in its accreditation rule published in 2006, 
which this rule amends, opting to pursue it later once the new 
accreditation rule was implemented. Adoption service providers with 
clients adopting relatives asked frequently over the intervening 
years when the Department would produce alternative procedures for 
relative cases.
    \2\ 22 CFR 96.2 Definitions: Adoption service means any one of 
the following six services:
    (1) Identifying a child for adoption and arranging an adoption;
    (2) Securing the necessary consent to termination of parental 
rights and to adoption;
    (3) Performing a background study on a child or a home study on 
a prospective adoptive parent(s), and reporting on such a study;
    (4) Making non-judicial determinations of the best interests of 
a child and the appropriateness of an adoptive placement for the 
child;
    (5) Monitoring a case after a child has been placed with 
prospective adoptive parent(s) until final adoption; or
    (6) When necessary because of a disruption before final 
adoption, assuming custody and providing (including facilitating the 
provision of) child care or any other social service pending an 
alternative placement.
---------------------------------------------------------------------------

     (3) Performing a background study on a child or a home 
study on a prospective adoptive parent(s), and reporting on such a 
study;
     (5) Monitoring a case after a child has been placed with 
prospective adoptive parent(s) until final adoption; and
     (6) When necessary because of a disruption before final 
adoption, assuming custody and providing (including facilitating the 
provision of) childcare or any other social service pending an 
alternative placement.
    The new provisions in Sec.  96.100 allow a primary provider to 
develop and implement an adoption service plan addressing only three 
adoption services noted above in adoption by relatives. In all other 
intercountry adoptions, the primary provider must develop and implement 
a service plan for providing all six adoption services, in accordance 
with Sec.  96.44. The provisions in Sec.  96.100(d) require that the 
alternative procedures in Sec.  96.100 be performed in accordance with 
the Convention, the IAA, the UAA and their implementing regulations.
    Some commenters expressed the preference that post-placement 
monitoring should not be required at all in adoptions by relatives. The 
Department emphasizes that post-placement monitoring mandated in the 
IAA remains an important element of the adoption services in the final 
rule,

[[Page 57239]]

including with respect to the adoption by relatives. Adoption services 
five and six include essential services related to monitoring the 
continued well-being of the child's placement and to ensuring that the 
prospective adoptive parents can care for the particular needs of a 
child. Unlike other services that may not be applicable or made 
redundant in the context of a pre-existing relationship, services 5 and 
6 apply equally whether or not the child is related to the prospective 
adoptive parents.
    The public comments also revealed disagreement regarding how the 
term ``relative'' should be defined and to which family relationships 
the alternative procedures for primary providers should apply. Some 
commenters preferred the relationships found in the regulations of the 
Department of Homeland Security (DHS) at 8 CFR 204.309(b)(2)(iii) which 
are exempt from the prohibition on prior contact with a child's parents 
or caregivers. Section 96.2 Definitions includes a definition of 
relative relationships that applies solely to determinations of when 
those alternative procedures for primary providers in Sec.  96.100 may 
be used. Although the Department's and DHS's definitions overlap quite 
a bit, they differ enough in content and purpose that the Department 
retained its proposed definition of ``relative'' in the final rule. The 
definition of ``relative,'' and other public comments related to 
subpart R are further addressed in the section-by-section discussion in 
part III, below, and in appendix A at the end of this notice.

B. Compliance With All Applicable Laws

    In the NPRM, the Department proposed a new section 96.29 in subpart 
F identifying conduct that does not conform to the regulatory framework 
of the IAA. Commenters found the new provisions to be duplicative and 
pointed out that agencies and persons were already required to operate 
in accordance with the Convention, the IAA, the UAA, and their 
implementing regulations. They suggested that restating the principle 
again as a new standard in subpart F was not necessary. The final rule 
does not include a new section 96.29. The Department instead retained 
the provisions on compliance with applicable laws in foreign countries 
in section 96.30 and renamed that section State Licensing and 
Compliance with All Applicable Laws. For a discussion of this and other 
provisions proposed in section 96.29, see the public comment discussion 
of Sec.  96.29 in section III of this preamble.

C. Child Care Payments

    The changes to sections 96.36(a) and 96.40(c)(4) in the NPRM would 
have prohibited ASPs from charging prospective adoptive parents for the 
care of a particular child prior to the completion of the intercountry 
adoption process. Payments for specific child welfare activities, if 
permitted by the country of origin, are controversial because of the 
potential risk of diverting payments to support illicit practices such 
as recruiting children into institutions or incentivizing institutions 
to retain children longer than necessary, and as such, have been 
prohibited by many countries. The Department recognizes, however, that 
prohibiting such payments that could pay for essential needs such as 
food, medical care, and other child welfare-related services may be 
detrimental to children, particularly for children awaiting adoption 
who have special needs.
    Commenters pointed out that historically payments were allowed if 
permitted or required by the child's country of origin. Several 
commenters noted the regularity with which the health of a child with 
special needs deteriorates and medical needs increase during the time 
between the referral and the final adoption, and that preventing 
funding for such care, if permitted by the country of origin, would not 
be in the best interests of the child. As discussed in section III of 
this preamble, the Department did not retain in the final rule proposed 
changes to Sec.  96.36(a). This final rule reinforces the standard in 
Sec.  96.36(a) with changes to Sec.  96.36(b) that augment 
recordkeeping requirements on the payment of fees in connection with 
intercountry adoption. Enhanced standards for recordkeeping will 
increase the oversight of any permitted or required payments for 
specific activities related to the adoption as outlined in Sec.  
96.36(a). The recordkeeping requirements will help decrease the risk 
that payments intended to benefit children will be diverted for illicit 
purposes. It will also assist agencies and persons to effectively 
monitor and oversee payments and fees paid by their employees and 
supervised providers in connection with an intercountry adoption. In no 
instance shall permitted or required contributions be remitted as 
payment or as an inducement to release a child for adoption.

D. Procedures and Requirements for Adverse Action by the Secretary, 
Including for Challenges to Such Adverse Action

    The proposed changes to section 96.83 in subpart L impact 
provisions regarding adverse action by the Secretary leading to 
suspension or cancellation of an agency or person's accreditation or 
approval. The changes include procedural requirements for notifying 
agencies and persons of adverse actions taken by the Secretary and the 
reasons for such action. New sections 96.84(a) and (b) describe the 
administrative process by which an ASP may request withdrawal of the 
suspension or cancellation as unwarranted and the standards the 
Department will use to review such a request. The process mirrors 
provisions in Sec.  96.76 in which an ASP may provide information to an 
accrediting entity to demonstrate that an adverse action was 
unwarranted. This process is independent of a petition for relief from 
the Secretary's suspension or cancellation and is based upon the ASP's 
correction of deficiencies. A petition for relief is now addressed in 
Sec.  96.84(c) and is similar to provisions in Sec.  96.78(a).
    A number of commenters appreciated the introduction of due process 
features when the Secretary imposes adverse action of suspension or 
cancellation. Other commenters thought accrediting entities should 
adhere to such procedures when imposing adverse actions, particularly 
providing specific evidence relied on to support the adverse action. 
The discussion in the section-by-section analysis for section 96.83 
explains that some due process provisions in Sec.  96.83 go farther 
than those governing adverse action by accrediting entities in Sec.  
96.76. This is largely because of the emergent nature of the conduct 
triggering suspension or cancellation by the Secretary. Similarly, 
imposing adverse action before providing an opportunity to rebut the 
Department's conclusions is justified and often cannot wait when the 
imposition of adverse action relates to child safety or other serious 
or emergent compliance issues.
    In 2016, the Department exercised its authority for the first time 
to debar an agency and determined based on that experience that it 
would be beneficial to propose relevant details in the regulations as 
to the notice, evidentiary, and procedural requirements relating to 
debarment proceedings. Section 96.88 sets forth the procedures, 
requirements, time frames, and standards of review that apply when the 
Department

[[Page 57240]]

undertakes a debarment proceeding when prior notice is given. In Sec.  
96.89, the Department sets forth the corresponding procedures, 
requirements, time frames, and standards of review for debarment 
effective immediately, without prior notice. Some commenters objected 
to short time frames to obtain and present information in the 
proceedings and the lack of common procedural features such as 
discovery. They asserted the lack of discovery, for example, might 
prejudice the agency's or person's ability to respond fully to claims 
against it. The Department considers these and other comments relating 
to debarment proceeding procedures and requirements in the section-by-
section analysis in part III of this preamble, including appeal options 
in federal court and notification requirements when the Secretary 
debars an accredited agency or approved person.

E. Pausing on Revising Standards in Three Sections of Subpart F

    The Department received public comments expressing concern or 
disagreement about parts of the proposed changes in sections 96.40, 
96.50, and 96.54 in the proposed rule. The Department concluded that 
the issues raised in these comments warrant further consideration. This 
final rule does not include revisions to these three sections. A brief 
summary of the relevant comments and content of these sections follows:
Sec.  96.40: Fee Policies and Procedures
    Comments submitted about standards relating to adoption fees and 
expenses uniformly expressed concern with the way the Department 
characterized fees relating to intercountry adoption practice and the 
burden on adoption service providers to revise, recalculate, and report 
fee schedules conforming to the proposed changes. Commenters indicated 
the proposed rubrics failed to reflect the way agencies and persons 
structure their work as well as the flexibility needed to adapt to 
dynamic conditions.
Sec.  96.50: Placement and Post-Placement Monitoring Until Final 
Adoption in Incoming Cases
    The revisions to Sec.  96.50 in the proposed rule would have 
expanded required efforts by ASPs for taking action in the event of a 
disruption and reporting to all relevant authorities about disruption 
cases. Commenters asserted the proposed changes would require 
significant resources to implement.
Sec.  96.54: Placement Standards in Outgoing Convention Cases
    We received many comments relating to the proposed changes to this 
section. The comments were against making any of our proposed changes, 
arguing among other things that the provisions would have a negative 
impact on outgoing adoption practice.
Two Additional Sections in Subpart F Ready for Renewed Consultations
    Several commenters expressed strong interest in making changes to 
two additional sections in subpart F, sections 96.46 and 96.48.
Sec.  96.46: Using Providers in Foreign Countries
    Regarding foreign supervised providers, in the proposed rule the 
Department acknowledged there were areas of discord relating to 
oversight of foreign supervised providers. We stated our intention to 
undertake a consultative process on these issues that would consider 
the entire range of standards relating to foreign supervised providers. 
In addition to a few minor textual updates to Sec.  96.46 in the NPRM 
and in the final rule, we made changes to Sec.  96.46(b)(7) and (8) 
requiring all payments to foreign supervised providers be provided 
through the primary provider. The primary provider must also provide 
prospective adoptive parents with a written explanation about the 
return of unused funds within 60 days.
Sec.  96.48: Preparation and Training of Prospective Adoptive Parents 
in Incoming Cases
    Several commenters were disappointed that the proposed rule did not 
amend the requirements for parent preparation and training. The 
commenters expressed a need to increase the number of hours required 
for parent preparation and welcomed an opportunity to collaborate on 
the parameters of such training. No such changes are reflected in the 
final rule but further consideration will be given to these 
suggestions.

F. Other Significant Changes

Changes to Elements in Subpart A, General Provisions
    In the definitions section of the final rule, Sec.  96.2, we did 
not retain the proposed definition of ``authorization.'' Commenters 
noted this feature of the Hague Adoption Convention, Article 12, is 
already incorporated into the regulations in the many references to 
compliance with the Convention and further definition would be 
repetitive.
    In the final rule, we have kept several of the proposed changes to 
the definition of ``best interests of the child'' in Sec.  96.2. The 
definition in the final rule clarifies how U.S. accredited and approved 
providers should consider the best interests of a child when the child 
is abroad and outside the jurisdiction of a U.S. State. The NPRM only 
included a reference to the Convention in the proposed revision to the 
definition of best interests of the child. Based on public comments, 
the definition in the final rule also includes a reference to the IAA, 
the UAA, and their implementing regulations.
    We made a change from the NPRM to the definition of ``supervised 
provider,'' adding for clarity the term ``domestic or'' before the term 
``foreign entity.''
    We did not retain a definition of ``unregulated custody transfer'' 
(UCT) in the NPRM, in response to comments noting that States have 
jurisdiction over child welfare and protection matters, including what 
constitutes UCT and any practice standards relating to it.
Changes to Elements in Subpart B, Selection, Designation, and Duties of 
Accrediting Entities
    Section 96.7 of the final rule retains the proposed revision in the 
NPRM requiring accrediting entities to retain all records relating to 
accreditation decision making for a period of 10 years. In response to 
comments, this final rule provides for the Secretary to extend the time 
accrediting entities must retain documents, but not shorten it to less 
than 10 years.
    Section 96.8 of the final rule incorporates the proposed provisions 
establishing a new process for reporting accrediting entity fee 
schedule changes in the Federal Register.
    The Department retained the proposed change to Sec.  96.10 
permitting a finding that accrediting entities are out of compliance 
for approving or accrediting an agency or person when the Secretary had 
to intervene and itself impose suspension, cancellation, or debarment 
of an agency or person.
    Section 96.12 of the final rule retains the minor edits in the 
NPRM, but it remains in subpart C.
Changes to Elements in Subpart E, Evaluation of Applicants for 
Accreditation and Approval
    In tandem with changes in section 96.7 as noted above, we retained 
in the final rule the proposed change to Sec.  96.26 requiring 
accrediting entities to retain an accurate record of accreditation and 
approval decision making for at least 10 years, or longer if the 
Secretary requires it.

[[Page 57241]]

    In Sec.  96.27(e) the final rule incorporates a proposed change 
requiring accrediting entities to take into account in evaluating an 
application for accreditation or approval the reasons underlying a 
previous denial of accreditation or approval.
Changes to Standards in Subpart F, Standards for Intercountry Adoption 
Accreditation and Approval
    We did not retain proposed changes to Sec.  96.32 requiring 
agencies and persons to retain records related to the monitoring and 
oversight of supervised providers for a period of not less than 25 
years. Several commenters expressed concern with the cost of 
implementing these provisions. On balance, the cost of creating and 
retaining such records for 25 years and potentially even longer could 
not be justified by the potential benefits.
    Concerning the requirements in Sec.  96.33(e) relating to the cash 
reserve of two months operating expenses, in the final rule we did not 
retain the proposed deletion of ``financial resources'' in this 
standard. Based on several public comments, we removed the reference to 
liquid assets. To avoid possible confusion or ambiguity as to these 
terms, the Department retained the existing CFR language in Sec.  
96.33(e).
    Section 96.34 of this final rule mandates that compensation must 
not be unreasonably high but does not retain the proposed changes meant 
to take into account what services ``actually cost.'' Commenters found 
the proposed formulation too vague for accrediting entities to 
implement.
    The Department accepted the recommendation by a commenter that 
several additional training topics be added to the list of topics in 
Sec.  96.38. They relate to trauma-informed parenting, the impact of 
adoption on children already in the home, and parental support for 
children who experience discrimination based on race, physical, 
cognitive, and other disabilities.
    Addressing questions raised in comments, section 96.41 of the final 
rule establishes that a complaint may be submitted by email, must 
include the name of the complainant and must be dated.
    The final rule incorporates practical steps in Sec.  96.47 for 
withdrawal of a home study recommendation that a family be found 
suitable to adopt abroad, including timelines for notifying adoptive 
parents, primary providers, and USCIS. The final rule does not retain 
proposed changes to Sec.  96.52(a)(1) requiring extensive additional 
agency and person reporting to the Secretary and the foreign Central 
Authority about ``material facts'' of intercountry adoption cases.

III. Section-by-Section Discussion of Comments

    This section provides a detailed discussion of significant comments 
received and describes differences between the NPRM and this final 
rule.

Subpart A--General Provisions

Section 96.2 Definitions
    1. Comment: Several commenters suggest edits to the proposed 
definition of ``authorization'' to clarify that such permission from a 
Central Authority is for the ability to provide adoption services 
generally and not just for one specific adoption. The commenters also 
recommend deleting the last sentence of the definition suggesting it 
goes beyond the scope of defining the term.
    Response: The final rule does not retain the proposed definition of 
``authorization.'' It also does not establish a standard for foreign 
authorization. Where foreign countries require authorization to provide 
adoption services, agencies and persons are obliged to be in full 
compliance with the laws of that foreign country in accordance with the 
new section 96.30(e) in the final rule. For additional information, see 
the discussion relating to section 96.29, below.
    2. Comment: One commenter expresses concern that the proposed 
revision to the definition of ``best interests of the child'' does not 
sufficiently reflect the provision of section 503(a) of the IAA (42 
U.S.C. 14953(a)) that defers to State law unless such provisions are 
inconsistent with the Convention or the IAA. The commenter is concerned 
the phrase ``without reference to the law of any particular State'' is 
in direct conflict with the IAA's objective to defer to State law 
definitions whenever possible. The commenter recommends deleting this 
reference and if it is retained, that in addition to the Convention, a 
reference to the IAA should also be added. The commenter is also 
concerned that a reference to ``the object and purpose of the 
Convention'' could be interpreted to include provisions of other 
international conventions.
    Response: The Department revised the definition of ``best interests 
of the child'' in the final rule to include a reference to the IAA, the 
UAA, and their implementing regulations to clarify that the revision 
does not include reference to any other international conventions. We 
have also removed the reference to ``without reference to the law of a 
particular State'' because we believe the intent of the regulation is 
clear without this specific reference. The Department does not agree 
that the new definition is inconsistent with the IAA. The value of the 
revised definition is that it provides useful information to agencies 
and persons about how to approach making determinations of the best 
interests of a child when the child is outside of any State 
jurisdiction. The definition affirms the central concept that in cases 
in which a State has jurisdiction to decide whether a particular 
adoption or adoption-related action is in a child's best interests, 
``best interests of the child'' shall have the meaning given to it by 
the law of the State.
    3. Comment: Some commenters are concerned the definition of ``best 
interests of the child'' does not appropriately acknowledge the role 
played by central or competent authorities in making best interest 
determinations for children in countries of origin. The commenters note 
such determinations usually require judicial approval.
    Response: The revised definition does not impose duties on public 
foreign authorities, who are expected to act in accordance with their 
own laws, regulations, and practices. In this final rule, to the extent 
that accredited agencies and approved persons contribute to decisions 
or actions abroad regarding best interests of the child, the revised 
definition reinforces how the determination should be made. Section 
96.2 of the regulations specifically defines one of the six adoption 
services as ``making non-judicial determinations of the best interests 
of the child and the appropriateness of an adoptive placement for a 
child.'' The Department recognizes the role played by the competent 
authority but does not agree this definition in the final rule 
conflicts with the role played by central or competent authorities in 
making a best interest determination for children. Rather, it clarifies 
the guiding documents an agency or person should use when providing 
this adoption service outside of a State jurisdiction.
    4. Comment: One commenter proposes adding other people who could be 
party to a service agreement in accordance with Sec.  96.44 to the 
definition of ``client,'' namely, birth parents in outgoing adoption 
cases. This commenter also recommends including the child who is being 
adopted in an outgoing adoption in the definition of ``client'' in 
Sec.  96.2.
    Response: Based on the public comments, we have withdrawn the 
definition of ``client.'' We agree that

[[Page 57242]]

only referencing prospective adoptive parents in the definition of 
client with respect to a service agreement may be unnecessarily 
limiting, particularly with respect to outgoing adoptions. Given the 
possible different parties that could be included as clients for the 
services agreement with an agency or person, the Department is not 
including a definition of ``client'' in Sec.  96.2 of the final rule.
    5. Comment: Several commenters raise concerns about the addition of 
a new definition of ``complaint'' in Sec.  96.2 and its impact on Sec.  
96.41, procedures for responding to complaints and improving service 
delivery.
    Response: The final rule does not add a definition of 
``complaint.'' For comments and responses relating to the proposed 
definition of ``complaint'' together with a discussion of comments 
relating to responding to complaints and related procedures, see Sec.  
96.41, below.
    6. Comment: Two commenters note the Department proposed changes to 
the definition of ``public foreign authority'' by adding ``a court or 
regulatory'' before ``authority operated by a national or subnational 
government of a foreign country'' but did not propose similar changes 
to the definition of ``public domestic authority.'' The commenters 
object to the difference and are concerned the differences could cause 
confusion, particularly the proposed changes to the definition of 
public foreign authority.
    Response: In response to these comments the Department is not 
including in the final rule the revisions to definitions of ``public 
foreign authority'' and ``public domestic authority.'' The Department 
does not want to create confusion between the definitions of 
``competent authority'' and ``public foreign authority'' as used in 
sections 96.12 and 96.14 which could make it more difficult to 
determine which entities require supervision.
    7. Comment: Several commenters recommend the Department revise its 
definition of ``relative'' by using instead the list of relative 
relationships found in 8 CFR 204.309(b)(2)(iii).
    Response: This final rule retains the NPRM definition of 
``relative'' in Sec.  96.2. The Department believes the Sec.  96.2 
definition of relative serves a purpose entirely different from the 
definition of relative found in DHS regulations at 8 CFR 
204.309(b)(2)(iii). Although there is significant overlap in the two 
definitions, their differences are also significant. See Appendix A at 
the end of this notice showing how the two lists of relative 
relationships overlap and how they differ in approach.
    The DHS regulation at 8 CFR defines which pre-existing familial 
relationships are exempt from the prohibition on prior contact between 
a prospective adoptive parent and the prospective adoptive child's 
parents, legal custodian, or other individual or entity who is 
responsible for the child's care. Additionally, the DHS regulation 
defines such relative relationships in terms of the prospective 
adoptive parent's relationship with the parent of the child to be 
adopted. In contrast, the Department's final rule definition of 
relative addresses relationships between the prospective adoptive 
parent(s) and the child to be adopted.
    The relationships in the Department's definition of relative in 
Sec.  96.2 include first- and second-degree relatives: parents and 
siblings and grandparents, aunts, uncles, nieces and nephews as well as 
analogous relationships through marriage and adoption. These are all 
familial relationships that a primary provider can more readily 
document to determine whether a prospective adoptive parent has a 
qualifying relationship for the alternative procedures for primary 
providers in Sec.  96.100. Relatives beyond the second degree such as 
great-grandparents, great aunts, great uncles and first and second 
cousins may still adopt relatives. However, primary providers in these 
cases would be required to develop a service plan for all six adoption 
services and implement that plan in accordance with Sec.  96.44.
    8. Comment: Commenters raised the concern that adoptive parents who 
adopt a child could assert a relative relationship with that child on 
the basis of its adoption and thus avail themselves of the alternative 
procedures for adoption by relatives in Sec.  96.100.
    Response: The relationships within the definition of ``relative'' 
in Sec.  96.2 must exist between the prospective adoptive parent and 
the child prior to initiating an adoption to be able to take advantage 
of the provisions in Sec.  96.100. For greater clarity, we revised the 
definition of ``relative'' as follows: ``Relative . . . means a 
prospective adoptive parent was already, before the adoption, any of 
the following: parent, step-parent, etc. (emphasis added).''
    9. Comment: One commenter is concerned that the addition of 
``person or'' after ``foreign'' in the definition of ``supervised 
provider'' will cause ambiguity in the definition given that the phrase 
``person'' is first referred to in the definition of supervised 
provider, without specific reference to ``foreign.'' The commenter 
suggests adding a reference to ``domestic'' in addition to ``foreign'' 
to clarify the definition.
    Response: The Department has modified the definition of 
``supervised provider'' to provide clarity. We included ``domestic or'' 
before the word ``foreign.''
    10. Comment: Several commenters object to the phrase ``intent on 
severing'' in the proposed definition of ``unregulated custody 
transfer'' because it is ambiguous and does not explain how a parent's 
intention should be determined. Another commenter argues that the 
definition is unconstitutional because it treats parents by adoption 
differently from biological parents.
    Response: The final rule does not contain a definition of 
``unregulated custody transfer.'' Given that the States have 
jurisdiction over child welfare and protection matters and that some 
States have already defined UCT, we defer to the States to determine 
what constitutes UCT rather than propose a definition in this rule.

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

Section 96.4 Designation of Accrediting Entities by the Secretary
    1. Comment: Several commenters are concerned the proposed addition 
of ``under Sec.  96.5(b)'' to Sec.  96.4(c) will result in adoption 
service providers losing the choice to select the accrediting entity 
that conducts their accreditation or approval.
    Response: Section 96.4(b) is unchanged in the final rule and 
permits the Secretary's designation of an accrediting entity to include 
limitations on the accrediting entity's geographic jurisdiction or 
impose other limits on the entity's jurisdiction. For clarity, the 
final rule retains the minor proposed change in Sec.  96.4(c), which 
connects the reference to a public entity in Sec.  96.4(c) to the 
requirements relating to public entities in Sec.  96.5(b).
Section 96.6 Performance Criteria for Designation as an Accrediting 
Entity
    1. Comment: One commenter suggests the Department is revising Sec.  
96.6 to accommodate a specific accrediting entity.
    Response: The Department made no changes in response to this 
comment. Rather than addressing any one specific entity, the 
requirements in Sec.  96.6 outline the performance criteria any 
accrediting entity must demonstrate to the Secretary when it is seeking 
designation as an accrediting entity. The changes to Sec.  96.6(c) and 
(d) clarify that an accrediting entity must demonstrate that it has the 
capacity to monitor and take appropriate adverse actions against 
agencies and persons, even if did not initially accredit or approve 
them. This change expands the performance criteria

[[Page 57243]]

that must be demonstrated by an entity seeking designation by the 
Department.
Section 96.7 Authorities and Responsibilities of an Accrediting Entity
    1. Comment: A commenter noted in Sec.  96.7(a)(4) that the 
Department changed the function of the accrediting entities from 
``investigating'' complaints to ``reviewing'' complaints and asked for 
clarification of what review means in this context.
    Response: The Department declines to further define ``review'' in 
the final rule. Clarification of the meaning of the term ``review'' is 
incorporated in the Memoranda of Agreement between the accrediting 
entities and the Department and figures prominently in the Department-
approved accrediting entity policies and procedures relating to 
complaints.
    2. Comment: Several commenters recommend the Department specify in 
the regulation that the Secretary could extend the time that an 
accrediting entity maintains all records related to its role as the 
accrediting entity.
    Response: In response to these comments, Sec.  96.7(a)(9) and Sec.  
96.26(d) of the final rule include a reference to ``longer if'' to 
clarify that ten years is the minimum amount of time for an accrediting 
entity to maintain its records, but the Secretary can extend it.
Section 96.8 Fees Charged by Accrediting Entities
    1. Comment: Several commenters expressed the belief that the 
Department should require more transparency of an accrediting entity's 
costs to perform functions authorized by the Secretary by requiring it 
to make available, upon request from the public, its demonstration of 
compliance with Sec.  96.8(a).
    Response: The Department is not changing the rule to mandate that 
accrediting entities demonstrate to the public compliance with Sec.  
96.8 as this regulation addresses the factors the Department will 
consider, pursuant to Section 202(d) of the IAA, in deciding whether to 
approve an accrediting entity's proposed fee schedule. The language in 
the proposed rule for Sec.  96.8(b) is the same in the final rule and 
requires the Department to publish proposed fee schedules in the 
Federal Register for public comment. The Department believes this will 
increase the transparency of an accrediting entity's fee schedules, 
particularly proposed changes, while also adhering to the requirements 
in the IAA.
    2. Comment: Several commenters suggest that fees charged by 
accrediting entities should be refundable for services not rendered. 
Several commenters also recommend the Department add a provision 
prohibiting accrediting entities from charging additional fees for 
siblings.
    Response: Section 96.8(c)(1) requires that the fees for 
accreditation and approval not be refundable. The Department is not 
changing this provision because we believe it protects an accrediting 
entity's capacity to perform its roles and functions required by law 
and its agreement with the Department, while remaining consistent with 
Section 202(d) of the IAA. The Department does not agree that a new 
provision should be added to restrict the possible fee structure for an 
accrediting entity; however, we encourage interested persons to utilize 
the public comment process outlined in Sec.  96.8(b).
Section 96.10 Suspension or Cancellation of the Designation of an 
Accrediting Entity by the Secretary
    1. Comment: Several commenters propose adding the word 
``sufficient'' in front of evidence in Sec.  96.10(c)(1).
    Response: The Department is not making any changes in response to 
this comment because we do not agree ``evidence'' needs to be qualified 
in this standard. The procedures outlined in Sec.  96.10(b) provide the 
accrediting entity with an opportunity to demonstrate that suspension 
or cancellation by the Secretary is unwarranted, in accordance with the 
agreement with the Department pursuant to Sec.  96.9.

Subpart E--Evaluation of Applicants for Accreditation and Approval

Section 96.25 Access to Information and Documents Requested by the 
Accrediting Entity
    1. Comment: One commenter is concerned the proposed change to Sec.  
96.25 is overly broad and should specify that the intent of 
``deliberate destruction of documentation'' is to prevent an 
accrediting entity from accessing the documentation. Several commenters 
indicate support for the change but are concerned an accrediting entity 
could take adverse action against an agency or person for following its 
own document retention and disposition policy. These commenters 
recommend that an accrediting entity be required to provide notice 
specifying which documentation and information the agency or person 
must retain.
    Response: Section 96.25(c) permits an accrediting entity to take 
appropriate adverse action against an agency or person based solely on 
an agency or person failing to provide requested documents or 
information to an accrediting entity. The final provision in Sec.  
96.25(c) permits an accrediting entity to take appropriate adverse 
action if the agency or person ``engages in deliberate destruction of 
documentation or provides false or misleading documents or 
information'' to an accrediting entity. An accrediting entity requires 
access to an agency or person's information and documents to perform 
its functions authorized by the Secretary. Section 96.25(a) outlines 
the access and Sec.  96.25(b) limits the accrediting entity's access to 
Convention adoption files and cases subject to the UAA, with the 
exception of first-time applicants for accreditation or approval. The 
requirements in this regulation, along with Sec.  96.42 on the 
retention, preservation, and disclosure of adoption records, provide 
sufficient information for an agency or person about the disclosure 
requirements to an accrediting entity.
    With regard to adverse action, section 96.76 outlines the 
procedures governing adverse action by an accrediting entity. These 
procedures would guide an accrediting entity's procedures for taking 
appropriate adverse action based on Sec.  96.25(c).
    The Department has modified Sec.  96.25(c) in the final rule to 
clarify that the deliberate destruction of documentation relates to the 
documents or information requested by the accrediting entity that 
requires or requests the documentation to evaluate an agency or person 
for accreditation or approval and to perform its oversight, 
enforcement, renewal, data collection, and other functions.
Section 96.26 Protection of Information and Documents by the 
Accrediting Entity
    1. Comment: Several commenters disagree with adding ``foreign'' to 
Sec.  96.26(b) because they do not think an accrediting entity should 
make disclosures of information and documents to a foreign authority 
unless such disclosure falls into a circumstance outlined in Sec.  
96.26(b). The commenters suggest such disclosures to a foreign 
authority be coordinated through the Department of State.
    Response: We have made a change to Sec.  96.26(b) by removing the 
term ``foreign'' as recommended. This change clarifies that documents 
and information may not be disclosed by an accrediting entity to a 
foreign authority unless the disclosure meets the circumstances 
outlined in Sec.  96.26(b)(1) through (3).
    2. Comment: Several commenters are concerned Sec.  96.26(d) would 
limit the requirements for an accrediting entity to

[[Page 57244]]

maintain accurate records. The commenters suggest this could weaken the 
Department of State's oversight of an accredited entity.
    Response: Section 96.26(d), formerly the last sentence of Sec.  
96.26(c), clarifies the minimum period for an accrediting entity to 
maintain complete and accurate records of all information it receives 
related to an agency or person and the basis for accrediting entity 
decisions concerning the agency or person. The Department has made a 
change to clarify that the Secretary will only lengthen, not shorten, 
the requirement for an accrediting entity to maintain a complete and 
accurate record of all information it receives related to an agency or 
person, and the basis for an accrediting entity's decisions concerning 
the agency or person.
    3. Comment: Several commenters suggest requiring an accrediting 
entity to disclose to an agency or person any information or records 
the accrediting entity uses as the basis of an adverse action.
    Response: We did not make any changes in response to this comment. 
The Department did not propose changes to subpart K, which includes 
procedures and responsibilities of an accrediting entity for decisions 
leading to the imposition of adverse action.
Section 96.27 Substantive Criteria for Evaluating Applicants for 
Accreditation or Approval
    1. Comment: Several commenters are concerned that removing the word 
``only'' from Sec.  96.27(c) would allow an accrediting entity greater 
flexibility and discretion, outside the scope of subpart F, when 
evaluating applicants for accreditation or approval.
    Response: To avoid any confusion about how the standards are 
applied, we have not included the proposed changes to Sec.  96.27(c) in 
the final rule.

Subpart F--Standards for Convention Accreditation and Approval

Section 96.29 Compliance With All Applicable Laws
    1. Comment: Commenters object to the provisions in the proposed 
Sec.  96.29(a) requiring that an agency or person has not provided any 
adoption service without accreditation or approval, or as an exempted 
or supervised provider. Commenters also object to the proposed 
requirement that an agency or person demonstrate it has not provided 
any adoption services in a foreign country without authorization. In 
addition, commenters point out that these prohibitions are not 
constrained in time, not limited in terms of pre- or post-IAA or 
Convention, nor do they contemplate how agencies and persons must 
document their compliance.
    Response: The Department is reorganizing the material in Sec.  
96.29 and has removed the proposed Sec.  96.29(a) from subpart F. The 
provisions in the proposed Sec.  96.29(b) are already included in Sec.  
96.25 where issues relating to an accrediting entity's access to 
information and documents are found. The parts of the proposed Sec.  
96.29(c) and (d) relating to compliance with the laws of jurisdictions 
where agencies and persons provide adoption services are now retained 
in Sec.  96.30(e). For information about disposition of provisions in 
the proposed Sec.  96.29 relating to foreign country authorization in 
line with Convention Article 12, see comment 4, below.
    2. Comment: Several commenters are concerned with the provisions in 
the proposed Sec.  96.29(d) concerning compliance with the laws of each 
jurisdiction in which an agency or person operates. They state that 
foreign laws are often vague or contradictory and compliance is 
difficult to achieve. Some also note that even when laws are clear, 
some countries of origin lack the infrastructure to act on them quickly 
enough to meet urgent needs of children waiting for intercountry 
adoption placements.
    Response: The requirement for agencies and persons to act in 
compliance with all applicable laws tracks closely with the minimum 
requirements of the accreditation regulations in the IAA found in 
Section 203(b)(1)(F) (42 U.S.C. 14923(b)(1)(F)): ``The agency has 
established adequate measures to comply (and to ensure compliance of 
theirs and clients) with the Convention, this chapter, and any other 
applicable law.'' To clarify the provisions relating to compliance with 
all applicable laws, the final rule includes the first sentence of the 
proposed language of Sec.  96.29(d) as new section 96.30(e).
    3. Comment: Several commenters note that even when laws in some 
countries of origin are known there may be different interpretations of 
laws as well as waivers or exceptions that may be informally permitted 
and unevenly administered. These factors make it difficult to determine 
compliance with applicable foreign laws. Commenters recommend that 
issues of compliance with foreign laws be referred to law enforcement, 
noting further their belief that it is not an accrediting entity role 
to unilaterally determine if an agency has violated a law. The 
commenters question the practicality of expecting accrediting entities 
to have and maintain expertise in domestic and foreign law.
    Response: The IAA gives accrediting entities the responsibility to 
assess agency and person substantial compliance with accreditation 
standards, which include requirements to comply with applicable foreign 
laws. Law enforcement concerns may emerge in the context of an 
accrediting entity's accreditation, approval, or monitoring and 
oversight of an agency or person and, where appropriate, the agency's 
or person's conduct may be referred to law enforcement entities for 
investigation and possible prosecution. The role of law enforcement is 
separate from that of an accrediting entity, which is to provide 
monitoring and oversight of an agency's or person's compliance with 
standards for accreditation and approval.
    4. Comment: Several commenters observe that the proposed rule 
introduces a new standard in the proposed Sec. Sec.  96.29(a), (c), and 
(d) requiring foreign country authorization to provide adoption 
services in countries requiring such authorization. They note that 
determining country of origin authorization requirements can be 
difficult.
    Response: The Department removed the specific references to foreign 
country authorization in the final rule. However, if a country of 
origin requires authorization in the context of obligations under 
Article 12, an agency or person must obtain such authorization to 
comply fully with the laws of the foreign country where they or it 
operates.
Licensing, Compliance With Applicable Laws, and Corporate Governance
Section 96.30 State Licensing and Compliance With All Applicable Laws
    The Department is revising the heading associated with this Section 
and adding Sec.  96.30(e), formerly the first half of the proposed 
Sec.  96.29(d).
Section 96.32 Internal Structure and Oversight
    1. Comment: Many commenters oppose the proposed retention 
requirements for records relating to the selection, monitoring, and 
oversight of foreign supervised providers, financial transactions to 
and from foreign countries, and records relating to complaints. The 
commenters are concerned this new requirement will significantly 
increase the costs to an agency or person to comply with the new 
standard for document retention. Several commenters note Sec.  96.42

[[Page 57245]]

includes the requirements for the retention, preservation, and 
disclosure of adoption records. The commenters note the retention 
requirement in Sec.  96.42 for adoption records defers to applicable 
State law, which may require adoption records be retained permanently. 
Several commenters are also concerned that the change to the standard 
could violate State laws in some jurisdictions.
    Response: In response to public comments, the final rule does not 
include the provision in Sec.  96.32(c) of the NPRM. The final rule 
continues to require the agency or person to keep permanent records of 
the meetings and deliberations of its governing body and of its major 
decisions affecting the delivery of adoption services.
Financial and Risk Management
Section 96.33 Budget, Audit, Insurance, and Risk Assessment 
Requirements
    1. Comment: Commenters want the term ``liquid assets'' removed from 
the proposed changes to Sec.  96.33(e) because ``liquid assets'' are 
already included in the standard, as ``liquid assets'' are a type of 
asset. The commenters suggest using the term ``or other assets,'' which 
is inclusive of liquid assets. Commenters are also concerned that 
emphasizing liquid assets will make it more difficult for smaller 
agencies and persons to keep sufficient assets liquid and in reserve.
    Response: The final rule does not include the proposed reference to 
liquid assets. Also, the final rule does not retain the proposed 
deletion of ``financial resources.'' To avoid possible confusion or 
ambiguity as to these terms, the Department retained the existing CFR 
language in Sec.  96.33(e).
    2. Comment: Several commenters recommend the reserve requirement 
should apply only to an agency or person's intercountry adoption work. 
These commenters note that it is more challenging for agencies and 
persons that operate non-adoption programs to meet the reserve 
requirement of the standard.
    Response: We have not included limiting the cash and other asset 
reserves solely to an agency or person's intercountry adoption 
programs. The reserve provisions are meant to protect prospective 
adoptive families by considering the financial viability of the entire 
organization, including where the agency or person engages in other 
work beyond intercountry adoption.
    3. Comment: One commenter requests the Department clarify why it is 
moving the last sentences of Sec.  96.33(e) to a new section, Sec.  
96.33(f). The commenter notes if an agency or person ceases to provide 
or is no longer permitted to provide adoption services in intercountry 
adoption cases, the transfer plan required by the standard is not 
enforceable. The commenter notes agencies and persons are increasingly 
unwilling to accept transfer cases due to concerns that the agency or 
person may be found out of substantial compliance with the regulations. 
The commenter suggests the Department should play a greater role 
helping agencies and persons to transfer adoption cases and records.
    Response: Section 96.33(f) remains unchanged from its formulation 
in the proposed rule. The standard requires an agency or person to have 
a plan to transfer its intercountry adoption cases if it ceases to 
provide or is no longer able to provide adoption services in 
intercountry adoption cases. Making a transfer plan benefits adoptive 
families in the process of adopting because it includes provisions for 
reimbursement to them of funds paid for services not yet rendered. For 
purposes of clarity, we have included this standard in its own section. 
The Department's role when an agency or person is unable to transfer 
its intercountry adoption cases consistent with its plan is outlined in 
Sec. Sec.  96.7 and 96.77.
Section 96.34 Compensation
    1. Comment: Several commenters request clarification about the 
meaning of a ``plan to compensate'' in Sec.  96.34(a). These commenters 
recommend that the Department use the phrase ``or offers to 
compensate'' to clarify the requirement of the standard.
    Response: We have modified Sec.  96.34(a) to clarify that any 
payment or offer of payment that includes an incentive fee or 
contingent fee for a child placed for adoption is not in compliance 
with this standard. The final rule broadens the requirement to ensure 
that any individual or entity involved in an intercountry adoption is 
not compensated with an incentive fee or contingent fee for a child 
located or placed for adoption. The final rule addresses known 
practices to circumvent this limitation on the payment of incentive and 
contingent fees.
    2. Comment: In several sections of the proposed rule commenters 
expressed uncertainty of our meaning when we inserted the term ``or 
entity'' after the word ``individual.''
    Response: The Department made no change in response to the comments 
regarding use of the terms ``individual'' or ``entity.'' In their 
common usage, the terms differentiate between a single person--an 
individual--and a group of individuals such as a corporation or 
agency--an entity. This distinction helps to clarify that the 
compensation limits in Sec.  96.34 have broad application.
    3. Comment: In Sec.  96.34(d), commenters oppose the proposed 
formulation ``what such services actually cost'' in the country for 
lack of clarity, particularly regarding who determines what services 
actually cost in every country program. The commenters also point out 
that what a service costs is influenced by many factors, and that it 
will be difficult for an accrediting entity to determine actual costs 
given the variables involved.
    Response: The standard in Sec.  96.34(d) relates to avoiding 
unreasonably high fees, wages or salaries paid to directors, officers, 
employees, and supervised providers along with any other individual, or 
entity involved on behalf of an agency or person. The Department has 
not retained the proposed phrase ``what services actually cost,'' 
including instead ``taking into account the country in which the 
services are provided and norms for compensation within the 
intercountry adoption community in that country, to the extent that 
such norms are known to the accrediting entity.'' This standard 
provides several factors to consider in making such a determination 
including, the country, the location, number, and qualifications of 
staff, workload requirements, budget, and the size of the agency or 
person (such as a for-profit organization).
Ethical Practices and Responsibilities
Section 96.35 Suitability of Agencies and Persons To Provide Adoption 
Services Consistent With the Convention
    1. Comment: A commenter requests clarification as to whether the 
new disclosure requirement in Sec.  96.35(b)(6) relates to 
investigations by foreign authorities that are known to an agency or 
person.
    Response: Section 96.35(b)(6) adds a new element to the disclosure 
requirement relating to any known past or pending investigations by 
foreign authorities.
    2. Comment: A commenter raised a concern about a disclosure 
requirement in Sec.  96.35(b)(7) that an agency of person must disclose 
``any instances where the agency or person has been found guilty of any 
crime under Federal, State, or foreign law . . .'' The commenter 
pointed out that in some criminal cases a defendant may be permitted by 
the court to enter a plea of nolo contendere resulting in a conviction, 
but without

[[Page 57246]]

admission or finding of guilt. The commenter was concerned that an 
agency or person may have been convicted of illicit activity without 
being found guilty and would not be under obligation to disclose the 
conviction.
    Response: The Department made no changes to this section. We 
decline to look behind the court's acceptance of the nolo contendere 
plea. Only those convictions in which an agency or person is found 
guilty of a crime requires disclosure under Sec.  96.35(b)(7). We note 
that other parts of Sec.  96.35, i.e., paragraphs (b)(9) and (c)(1), 
may require disclosure of conduct of concern that leads to a conviction 
even without specifying guilt, or that is inconsistent with the 
principles of the Convention.
    3. Comment: One commenter is concerned the proposed change in Sec.  
96.35(b)(9) from activities that ``are'' inconsistent with the 
principles of the Convention to activities that ``may be'' inconsistent 
could create ambiguity for an agency or person about the disclosures 
required by this standard.
    Response: The Department removed the proposed changes to ``may be'' 
in Sec. Sec.  96.35(b)(9) and 96.35(c)(4) replacing them with ``are.''
    4. Comment: Commenters are concerned in Sec.  96.35(c)(2) that the 
broader language requiring disclosure of employees with formal 
disciplinary actions or known investigations might be too broad because 
it would include employees who are not involved in the adoption 
process. One commenter suggests the new standard would require an 
agency or person to disclose to an accrediting entity any disciplinary 
actions, such as reporting late to work.
    Response: The Department has revised the standard to revert to the 
language limiting the section to senior management positions but has 
retained the language adding formal disciplinary actions. Disciplinary 
action taken against employees at any level relating to lateness for 
work would fall outside the scope of these changes because they are not 
related to financial irregularities. Furthermore, the scope of these 
changes in this section is likely to reassure prospective adoptive 
parents that agencies and persons do due diligence across their entire 
organization to detect and address financial irregularities by senior 
management.
Section 96.36 Prohibition on Child Buying and Inducement
    1. Comment: Some commenters are concerned the proposed changes to 
Sec.  96.36(a) would restrict agencies and persons from remitting 
reasonable payments for activities related to the adoption as outlined 
in the current Sec.  96.36(a) as long as such payments are permitted by 
the child's country of origin and are not remitted as a payment or 
inducement to release the child. One commenter states that this change 
would prohibit an agency or person from making reasonable payments to 
address often severe medical needs for a child who had already been 
matched with prospective adoptive parents. The commenter notes that 
prohibiting such payment could be harmful to the best interests of a 
child.
    Response: In response to these comments, the Department has revised 
Sec.  96.36(a), reintroducing the deleted portion relating to 
``reasonable payments.'' We have also retained language in Sec.  
96.36(a) clearly prohibiting agencies and persons from ``giving money 
or other consideration, directly or indirectly, to a child's parent(s), 
other individual(s), or an entity as payment for the child or as an 
inducement to release the child.'' As we noted in 71 FR 8063, February 
15, 2006, ``This standard, derived from the current, longstanding DHS 
regulations at 8 CFR 204.3, protects birth parents, children, and 
adoptive parents. Regardless of how adoption services fees are 
described, characterized, or classified, if the fee is remitted as 
payment for the child, or as an inducement to release the child, then 
the standard is violated and appropriate action may be taken against an 
agency or person.'' This standard is also consistent with DHS 
regulations at 8 CFR 204.304, which prohibit in Convention cases the 
improper inducement or influence of any decision concerning the 
placement of a child for adoption, consent to the adoption of a child, 
relinquishment of a child for purposes of adoption, or performance of 
any act by the child's parents that make the child eligible for 
classification as a Convention adoptee.
    2. Comment: Commenters point out that the term ``inducement'' 
(found in both the current and proposed regulations at Sec.  96.36(a)) 
is not defined in these regulations and suggests that the Department 
include a definition for this term that makes clear it would only be 
prohibiting ``illicit'' inducement.
    Response: The Department made no changes in response to these 
comments. Inducement in the context of this rule and in the DHS 
regulations governing the intercountry adoption of children from non-
Convention countries under section 101(b)(1)(F) of the Immigration and 
Nationality Act (INA) (8 CFR 204.3(i)) and governing Convention 
adoptions under INA 101(b)(1)(G) (8 CFR 204.304(a)) refer to ``the act 
of influencing an act or decision'' and clearly encompasses the illicit 
conduct that the IAA and the Convention seek to eradicate. Whatever 
other benign meanings the term may have clearly do not apply here. The 
heading to Sec.  96.36 already unambiguously employs the term 
``inducement,'' associating it with the term ``child buying,'' leaving 
no question that ``inducement'' here refers to illicit conduct.
    3. Comment: A commenter is concerned that the term ``agent'' has 
been too broadly interpreted and recommended we provide additional 
clarification.
    Response: To refine the standard in Sec.  96.36(b), the Department 
added the term ``supervised'' and removed the term ``and agents'' from 
the section. These changes are consistent with the definition of 
``supervised provider'' in Sec.  96.2, which makes clear that 
``agents'' are encompassed in the meaning of supervised provider.
Professional Qualifications and Training for Employees
Section 96.37 Education and Experience Requirements for Social Service 
Personnel
    1. Comment: One commenter is concerned with the reference to 
``counseling'' in Sec.  96.37(a) and recommends changing it to 
``assessment'' to more accurately reflect the services provided by 
agencies and persons.
    Response: Apart from adding a heading to Sec.  96.37(a), the 
Department did not propose a substantive change to this standard. 
Section 96.37(a) applies to employees of an agency or person with 
appropriate qualifications and credentials to perform work requiring 
application of clinical skills and judgment. This standard does not 
require that an agency or person have employees that provide all of the 
adoption-related social service functions outlined in Sec.  96.37(a), 
but it does require that if an agency or person uses employees for such 
functions, that any such employee have the appropriate qualifications 
and credentials to perform functions requiring clinical skills and 
judgment, counseling among them.
    2. Comment: A commenter suggests that the proposed change to Sec.  
96.37 adding ``training'' to the standard is duplicative of the 
training requirements for social service personnel in Sec.  96.38 and 
should be deleted.
    Response: The Department has retained the proposed change to Sec.  
96.37(c) thus expanding the existing standard to include training in 
the

[[Page 57247]]

professional delivery of intercountry adoption services for the agency 
or person's executive director, the supervisor overseeing a case, or 
the social service employee providing adoption-related social services 
that require the application of clinical skills and judgment. This 
aspect of the standard is not addressed in other areas of the 
regulations.
    3. Comment: One commenter requests clarification about why the 
Department proposes to include headings for Sec.  96.37(a), (b), and 
(c) and if the headings provide a change to the meaning of the 
standard.
    Response: Section 96.37 has four paragraphs with headings. The 
Department added headings to the other parts of the standard to enhance 
clarity, not to change the underlying meaning of the existing 
regulation.
Section 96.38 Training Requirements for Social Service Personnel
    1. Comment: One commenter seeks clarification as to whether in 
accordance with Sec.  96.38(d) an agency or person has the discretion 
to exempt newly hired employees as it relates to Sec.  96.38(b). Also, 
the commenter thinks the use of the term ``exemption'' in the context 
of this section needs clarification.
    Response: We have modified Sec.  96.38(d) to make it clear that an 
agency or person may, but is not required to, exempt newly hired 
employees from elements of the orientation and initial training 
required in paragraphs (a) and (b) of this section. Such an exemption 
is only permitted if the newly hired employee was employed by an agency 
or person within the last two years and received the training 
requirements outlined in Sec. Sec.  96.38, 96.39, and 96.40. Note that 
any exemption under Sec.  96.38(d) is made solely by the employing 
agency or person, who have no need to seek such exemptions from another 
entity. We use this term ``to exempt'' or ``exemption from'' to mean 
``relieved from requirements'' elsewhere in this or other training 
sections of the rule.
    2. Comment: A commenter suggests adding in Sec.  96.38(b) several 
new areas for training social service personnel and recommends adding 
several additional topics to the standard.
    Response: The Department revised the list of topics to include 
additional training requirements for social service personnel.
    3. Comment: A commenter asks why the Department employed the term 
``sociological . . . problems'' in Sec.  96.38(b)(7) and asked for 
clarification, particularly related to the proposed language related to 
the possibility that such problems may not be reflected in the medical 
reports transmitted to prospective adoptive parents.
    Response: The Department revised the final rule by removing the 
term ``sociological'' from Sec.  96.38(b)(7), relying on the remaining 
elements of this section to inform training relating to medical and 
psychological problems experienced by children and the possibility that 
such problems may not be reflected in the medical reports transmitted 
to prospective adoptive parents.
Information Disclosure, Fee Practices, and Quality Control Policies and 
Practices
Section 96.39 Information Disclosure and Quality Control Practices
    1. Comment: Some commenters think the new provisions in Sec.  
96.39(a)(1) are unduly burdensome for agencies and persons to disclose 
detailed fee information about supervised and exempted providers to 
prospective adoptive parent(s) on initial contact.
    Response: In response to these comments, the Department has made 
several revisions to Sec.  96.39 in the final rule. The final rule 
requires an agency or person to fully disclose to the general public 
and prospective client(s) the supervised providers in the United States 
and in the child's country of origin with whom they can expect to work 
and the usual costs associated with their services.
Responding to Complaints and Records and Report Management
Section 96.41 Procedures for Responding to Complaints and Improving 
Service Delivery
    1. Comment: Several commenters raise concerns that the new 
definition of ``complaint'' and the changes in Sec.  96.41(b) will 
increase the number of complaints and require significantly more 
disclosures to the Department pursuant to Sec.  96.41(f). Commenters 
also state that the proposed changes expand the scope of complaints and 
would require agencies and persons to accept complaints from any 
individual or entity, even about matters unrelated to their 
intercountry adoption practice.
    Response: The Department withdraws the proposed definition of 
``complaint'' and the proposed changes to Sec.  96.41(b), retaining a 
reference to written or electronic and dated complaint submissions (by 
email or facsimile) in which the complainant is clearly identified. 
These changes recognize the validity of electronic forms of complaint 
and the value of complaints from birth parents, prospective adoptive 
parents, adoptive parents, or adoptees. Tracking and summarizing the 
complaints received pursuant to Sec.  96.41(b) provides useful 
information regarding trends to agencies and persons, accrediting 
entities, and the Department.
    2. Comment: Several commenters object to removing the language in 
Sec.  96.41(b) that agencies and persons accept complaints from a 
complainant ``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.'' The commenters also raise concerns about the proposed 
definition of complaint in Sec.  96.2, noting that its formulation used 
``may raise an issue of non-compliance with the Convention, the IAA, 
the UAA, or the regulations implementing the IAA and the UAA,'' was 
different from the reference in Sec.  96.41(b) of ``he or she believes 
raise an issue of compliance.'' The commenters are concerned that the 
use of ``may raise'' in the definition along with the perception that 
individuals and entities could submit complaints directly to the 
Department would sidestep the process for filing complaints outlined in 
Sec. Sec.  96.69-71.
    Response: To improve clarity, the final rule does not include a 
definition of complaint in Sec.  96.2. The final rule includes the 
reference to and most of the revisions to Sec.  96.41(b) (as noted in 
its response to comment 1, above) returning to the formulation ``he or 
she believes raise an issue of. . . .''
    3. Comment: One commenter expresses concern that the changes to 
Sec.  96.41(b) and to the new definition of complaint would permit 
complaints filed by anyone electronically without identifying the 
complainant. As written, this commenter thinks the changes would 
encourage anonymous complaints and that agencies and persons would be 
required to, but unable to, respond to such complaints.
    Response: In the final rule, the Department provides for electronic 
submission of complaints without a written signature to facilitate use 
of electronic means of communication while at the same time adding 
clear requirements to the standard in Sec.  96.41(b) that each 
complaint must be dated and identify the complainant.
    4. Comment: A commenter believes provisions in the proposed 
complaint definition allow for filing complaints directly with an 
accrediting entity, the Department, and even the Complaint Registry, 
which would create a direct contradiction to Sec. Sec.  96.69(b) and 
96.71(b)(1). Section 96.69(b) requires complainants who are parties to 
a specific intercountry adoption case to first file a complaint and 
attempt to seek

[[Page 57248]]

resolution with an agency or person before filing with the Complaint 
Registry.
    Response: We have withdrawn the new definition of complaint from 
the final rule, which removes the changes noted above that the 
commenter found suggestive of being contrary to the complaint 
procedures found in Sec. Sec.  96.69 and 96.71.
Section 96.42 Retention, Preservation, and Disclosure of Adoption 
Records
    1. Comment: One commenter, while not opposed to the revision, asked 
why it was necessary to include a reference to State law in Sec.  
96.42(b).
    Response: The Department added a reference to State law because the 
proposed rule broadens the disclosure requirements by deleting ``non-
identifying'' from ``information.'' Section 401(c) of the IAA mandates 
that applicable State law govern the disclosure of adoption records and 
State law may limit the information an agency or person may make 
available to an adoptee or adoptive parent(s) of minor children.
Section 96.43 Case Tracking, Data Management, and Reporting
    1. Comment: Several commenters request the Department add 
``whenever possible . . .'' for information and reports on disruptions 
in Sec.  96.43(b)(3) as it is in the rule for dissolutions in Sec.  
96.43(b)(4). The commenters maintain obtaining the requested 
information is difficult, particularly when adoptive parents are 
unwilling to provide the information to the agency or person.
    Response: In response to public comments, the final rule reflects 
the removal of all proposed changes to Sec.  96.43. Cooperation between 
the Department, the accrediting entities, and agencies and persons in 
recent years with regard to adoption instability matters, including 
reporting on disruption cases, has proven to be robust and effective. 
The proposed expanded reporting for disrupted placements includes 
information that is often already provided by agencies and persons 
reporting on disrupted placements.
    2. Comment: Several commenters note that removing the phrase ``set 
forth in the country of origin,'' in Sec.  96.43(b)(6) significantly 
broadens the scope of information agencies and persons will be required 
to provide the Department. The commenters also note agencies and 
persons would need time to comply with the reporting requirement due to 
the proposed significant changes to Sec.  96.40.
    Response: The final rule reflects the removal of all proposed 
changes to Sec.  96.43 and continues to reflect the annual reporting 
requirement in section 104(b)(7) of the IAA. (42 U.S.C. Ch 143 Sec.  
14914 (b)(7)).
Service Planning and Delivery
Section 96.45 Using Supervised Providers in the United States
    1. Comment: Several commenters are concerned with the proposed 
changes in Sec.  96.45(a)(2) requiring supervised provider compliance 
with the Convention, the IAA, the UAA, and their implementing 
regulations. One commenter thinks the proposed regulation is overly 
broad and tantamount to requiring supervised providers to become 
accredited to comply with the standard. The commenter recommends 
limiting the provision as follows: ``In providing any adoption service, 
complies with the relevant section of the Convention, the IAA, the UAA, 
and regulations implementing the IAA and UAA for the adoption service 
being provided.''
    Response: The Department modified the final rule to reflect this 
suggested language.
    2. Comment: One commenter, pointing to proposed changes to Sec.  
96.45(b)(9), is concerned the changes would expose a supervised 
provider in the United States to requests for information from 
accrediting entities with no jurisdiction over the accreditation or 
approval of the primary provider. Such inquiries would be burdensome 
and lack authority.
    Response: In response to this comment, the Department is adding 
clarifying information about a requesting accrediting entity's 
jurisdiction. With more than one accrediting entity, an accrediting 
entity could be responsible for monitoring and oversight of a primary 
provider, even though it was not the accrediting entity to issue the 
primary provider's accreditation or approval. The final rule reflects 
this requirement for supervised providers to respond to an accrediting 
entity's request for information. However, we have modified the rule to 
add ``. . .  or an accrediting entity with jurisdiction over the 
primary provider'' to Sec.  96.45(b)(9) to clarify that the requesting 
accrediting entity must have jurisdiction over the primary provider.
Section 96.46 Using Providers in Foreign Countries
    1. Comment: Commenters remarked that the proposed rule stated the 
Department would not propose changes to the regulations relating to 
foreign supervised providers but in fact made a few changes to Sec.  
96.46.
    Response: The Department noted in its preamble to the proposed rule 
\3\ that it was not addressing regulatory changes to accreditation 
standards relating to foreign supervised providers. Instead, the 
preamble pointed to a consultative process with stakeholders to address 
a wide range of related standards. Most of the changes introduced in 
the proposed rule in Sec.  96.46 were minor corrections or 
clarifications. The one substantive change in this section, found in 
Sec.  96.46(b)(7) and (8), requires the primary provider to include in 
the agreement with foreign supervised providers that the foreign 
supervised provider's fees and expenses will be billed to and paid by 
the client(s) through the primary provider. This change prohibits 
foreign supervised providers from requiring direct payments for 
adoption services abroad from prospective adoptive parents, which would 
expose them to potential abuses such as overcharging.
---------------------------------------------------------------------------

    \3\ 85 FR 74497, November 20, 2020.
---------------------------------------------------------------------------

    2. Comment: A commenter points out the benefit of requiring all 
foreign fees to be paid through the primary provider to mitigate the 
potential for fraud and illicit financial practices, but also notes the 
need to preserve provisions lost to the removal of Sec.  96.46(b)(8), 
provisions for refundability of fees paid overseas.
    Response: The Department included in the final rule a provision in 
Sec.  96.46(b)(7) requiring the primary provider to provide a written 
explanation of how and when such fees and expenses will be refunded if 
the service is not provided or completed and will return any funds 
collected to which the client(s) may be entitled within sixty days of 
the completion of the delivery of services.
    3. Comment: Several commenters recommend removing the new 
provisions in Sec.  96.46(b)(7). They think requiring primary providers 
to bill prospective adoptive parents for and pay fees directly to 
foreign supervised providers is inefficient and would unnecessarily add 
administrative costs to prospective adoptive parents for making wire 
transfers on their behalf. The commenters observe this would limit 
families using other payment options open to them such as domestic wire 
transfers or domestic checking. These commenters recommend allowing 
prospective adoptive families to take care of their own wire transfers 
to pay for fees in country, including those due to foreign supervised 
providers. Other commenters question the stated premise on which the 
change was based, namely

[[Page 57249]]

that it was meant to protect adoptive families from transporting large 
sums of cash to countries of origin. These commenters argue that 
transporting cash to is no longer standard practice and that adoptive 
families typically use bank wire transfers instead.
    Response: The Department retained the changes in Sec.  96.46(b)(7) 
in the final rule. This standard applies only to fees and expenses 
related to providing adoption services. These services are enumerated 
in the supervisory agreement between the primary provider and the 
foreign supervisor, pursuant to Sec.  96.46(b)(1). Fees and expenses 
for other services in the country of origin may be paid for directly by 
prospective adoptive parents. The elements in this standard reinforce 
in an important way the supervisory relationship between primary 
providers and foreign supervised providers as they require active 
primary provider oversight of the receipt and expenditure of funds 
relating to adoption services provided abroad.
Standards for Cases in Which a Child Is Immigrating to the United 
States (Incoming Cases)
Section 96.47 Preparation of Home Studies in Incoming Cases
    1. Comment: A commenter recommends deleting ``counseling'' from 
Sec.  96.47(a)(3). The commenter thinks this change would bring Sec.  
96.47(a)(3) into closer alignment with 8 CFR 204.311(c)(5), (c)(8), 
(c)(9), and (g)(4).
    Response: In response to this comment, the Department revised Sec.  
96.47(a)(3) to include the language ``preparation'' in addition to 
``counseling'' and ``training.'' Counseling, where indicated, may 
inform the home study, whether provided by a home study preparer 
licensed to provided formal counseling, or when the family is referred 
to a different professional licensed to provide it. Preparation would 
include a wide variety of work provided by the home study preparer 
short of formal counseling for which a separate license would be 
required.
    2. Comment: Several commenters are concerned about the requirement 
in Sec.  96.47(e)(1) to inform the prospective adoptive parent(s) prior 
to USCIS if the agency or person withdraws its recommendation of the 
prospective adoptive parent(s) for adoption. In their view, to provide 
for the child's safety, it may be in the best interests of the child to 
notify USCIS first.
    Response: The Department made no revisions to the order in which 
agencies and persons must notify prospective adoptive families and 
USCIS of their withdrawal of a recommendation in favor of the family 
adopting. We did add the primary provider as an additional entity to 
notify, if appropriate. The notification requirements in Sec.  
96.47(b)(1) and (2) allow expeditious notification of prospective 
adoptive parents and USCIS. An agency or person is not required to wait 
five business days to provide adoptive families with written notice of 
the withdrawal, just that it do so within five business days of its 
decision to withdraw. Likewise, the regulation does not insist that an 
agency or person wait five days before notifying USCIS. In practical 
terms, once the agency or person decides to withdraw its recommendation 
of the family to adopt, it can notify the family in writing immediately 
following the decision and can notify USCIS in writing immediately 
thereafter, causing no delay that would be contrary to the best 
interests of the child.
    3. Comment: A commenter is concerned that Sec.  96.47(e) is unclear 
as to what involvement and responsibilities a primary provider would 
have if it was not the entity that conducted or approved the home 
study.
    Response: The Department is revising Sec.  96.47(e) to include 
notification of the primary provider in the case. Because the primary 
provider as identified in Sec.  96.14 is responsible for ensuring the 
six adoption services are provided in an intercountry adoption case as 
provided in Sec.  96.44, notification is essential to its ability to 
perform its overarching function in the case. We also revised Sec.  
96.47(e)(1) in the final rule to require the agency or person, if 
applicable, to make reasonable efforts to also notify the primary 
provider of its withdrawal of any approval of the home study.
    4. Comment: Many commenters recommend the Department remove ``good 
cause'' from Sec.  96.47(e)(3).
    Response: The Department removed the reference to ``good cause'' 
from the final rule and revised Sec.  96.47(e)(3) to require that an 
agency or person maintain written records of the withdrawal of its 
recommendation and/or approval, the step(s) taken prior to reaching 
such a decision, and the reasons for the withdrawal.
    5. Comment: Several commenters believe the proposed language in the 
proposed Sec.  96.47(e)(4) and (5) is repetitive of other provisions 
applicable to home studies and should be omitted.
    Response: The Department removed Sec.  96.47(e)(4) and (5) from the 
final rule in response to these comments.
Section 96.49 Provision of Medical and Social Information in Incoming 
Cases
    1. Comment: A commenter requests the Department revise the 
reference to videotape and photograph to video and photo to make it 
clear the standard also includes digital videos and photographs.
    Response: The Department replaced all references to the term 
``videotape'' with the term ``video'' in Sec.  96.49 in the final rule 
but did not revise the term ``photographs.'' The Department believes 
the term ``photographs'' is inclusive of photographs taken with film or 
digitally.
Sec.  96.51 Post-Adoption Services in Incoming Cases
    1. Comment: Several commenters are concerned that a dissolution 
could occur years after the adoption is finalized and any cost schedule 
would be obsolete. In addition, there are concerns this regulation 
would force ASPs to be experts in the laws of all 50 states where a 
dissolution could take place.
    Response: The Department did not retain a requirement to provide 
the cost for post-adoption services for all agencies and persons. The 
rule requires agencies and persons to inform prospective adoptive 
parents whether post-adoption services will be provided. Section 96.40 
requires agencies and persons, before providing any adoption services, 
to provide expected total fees and expenses for post-placement and 
post-adoption reports. The Department encourages agencies and approved 
providers to assist adoptive families by providing post-adoption 
services where possible. Section 96.51(c) requires agencies and persons 
to provide post-adoption reporting in the adoption services contract if 
such reporting is required by a child's country of origin.
Section 96.52 Performance of Communication and Coordination Functions 
in Incoming Cases
    1. Comment: Several commenters note the proposed changes in Sec.  
96.52(a)(1) would significantly increase reporting requirements for 
agencies and persons and that the new reporting requirements to U.S. 
and foreign Central Authorities are either already part of other 
reporting standards or not required by foreign authorities.
    Response: In response to the comments about the proposed changes to 
Sec.  96.52(a)(1), the final rule reflects removal of the proposed new 
requirements in Sec.  96.52(a)(1).
    2. Comment: One commenter notes the addition of ``including any 
updates

[[Page 57250]]

and amendments'' to Sec.  96.52(b)(1) should be further clarified by 
adding ``when requested or required'' by the relevant Central 
Authority. The commenter is concerned that if the Central Authority 
does not require such updates, the additional information could 
overwhelm Central Authorities and add costs for clients if the updates 
or amendments require translation.
    Response: In response to this comment, the Department revised Sec.  
96.52(b)(1) to include ``any updates required by such competent 
authorities in the child's country of origin.'' Agencies and persons 
must provide Central Authorities with the most up-to-date suitability 
information on the prospective adoptive parent(s).
    3. Comment: One commenter notes the requirements under Sec.  
96.52(b)(4) is an action performed by the Department, not the agency or 
person, and should be deleted.
    Response: The Department did not delete this section. Section 
96.52(b) retains the flexibility of the phrase ``the agency or person 
takes all appropriate measures, consistent with the procedures of the 
U.S. Central Authority and the foreign country.'' The Department has 
revised the final rule to clarify that this action could be to 
``confirm that this information has been transmitted to the foreign 
country's Central Authority or other competent authority by the U.S. 
Central Authority.'' Providing this communication and coordination is 
important to ensuring that the Convention process is followed and to 
avoid unnecessary delays in the process.
    4. Comment: One commenter observes that the requirement of Sec.  
96.52(d) is about an outdated practice related to the cost of replacing 
hard copies of home studies. The commenter notes this requirement of 
returning an original home study and/or the original child background 
study to the authorities that forwarded them is unnecessary.
    Response: The Department revised this standard in the final rule 
relying on agencies and persons to determine the appropriate course of 
action for disposition of case documents in the event the transfer of 
the child does not take place. Factors to consider include but are not 
limited to, the specific requirements, if any, of competent authorities 
in either the State or in the receiving country and the preference of 
prospective adoptive parent(s) to continue pursuing an adoption.
    5. Comment: One commenter notes Sec.  96.52(e) is overly broad and 
that a violation of any standard in Subpart F would also include a 
violation of Sec.  96.52(e).
    Response: We have made no changes in the final rule in response to 
this comment about section 96.52(e). This final rule clarifies that the 
obligation in Sec.  96.52(e) only applies to requirements that the 
Secretary has identified under existing authorities and made known 
(directly or via an accrediting entity) to agencies and persons.
Standards for Cases in Which a Child is Emigrating From the United 
States
Section 96.55 Performance of Convention Communication and Coordination 
Functions on Outgoing Convention Cases
    1. Comment: One commenter is concerned that in Sec.  96.55(c) the 
use of the word ``original'' in this context is outdated and asks why 
this standard only applies to the home study and child study and not 
other documents.
    Response: The requirement in Sec.  96.55(c) derives from Article 
19(3) of the Convention, which provides that: ``If the transfer of the 
child does not take place, the reports referred to in Articles 15 (home 
study of prospective adoptive parents) and 16 (child background study) 
are to be sent back to the authorities who forwarded them.'' The final 
rule allows accredited agencies and approved persons to meet this 
Convention obligation by considering the specific requirements, if any, 
of competent authorities in either the U.S. State or in the receiving 
country and the preference of prospective adoptive parent(s).

Subpart L--Oversight of Accredited Agencies and Approved Persons by the 
Secretary

Section 96.83 Suspension or Cancellation of Accreditation or Approval 
by the Secretary
    1. Comment: Several commenters note their support of the due 
process elements of the revisions in Sec.  96.83(b) governing 
suspension and cancellation of accreditation by the Secretary and 
requested the same due process be given to agencies and persons when an 
accrediting entity imposes adverse action.
    Response: The Department made no changes to the regulations in 
response to these comments. The circumstances associated with 
suspensions and cancellations by the Secretary under Sec.  96.83 are 
more likely to involve complex fact patterns and emergent situations 
than the broader range of adverse actions imposed by an accrediting 
entity pursuant to subpart K. The revisions to Sec.  96.83(b) include 
more detailed notice provisions warranted by the circumstances in such 
cases.
    2. Comment: Commenters point out as written, Sec.  96.83(c) 
mandates notification to entities including the Hague Permanent Bureau, 
State licensing authorities, Central Authorities where the agency or 
person operates, and other authorities as appropriate, of the 
Secretary's decision to suspend or cancel accreditation, seemingly 
before that decision has become final. Commenters request that the 
Sec.  96.83(c) notifications occur only after the disclosures made to 
the agency or person at the time of the Secretary's written notice of 
its decision to suspend or cancel and after the process in Sec.  
96.84(a) and (b) permitting rebuttal of the decision on the facts.
    Response: The Department made no changes to Sec.  96.83(a) 
requiring the Secretary to suspend or cancel the accreditation or 
approval when s/he finds the agency or person is substantially out of 
compliance with the standards in subpart F, nor to notification of 
suspension or cancellation pursuant to Sec.  96.83(c). There is no 
expectation of delay of the effect of suspension or cancellation and no 
provision similar to Sec.  96.77(a) by which the Secretary could delay 
the effect of suspension or cancellation. Furthermore, the provisions 
in Sec.  96.84 allowing for withdrawal of suspension or cancellation by 
the Secretary assume the suspension or cancellation has already been 
notified pursuant to Sec.  96.83(c) and provides for notification to 
the same authorities of the withdrawal.
Section 96.88 Procedures for Debarment With Prior Notice
    1. Comment: Commenters request that in the proposed Sec.  96.88(a), 
the Department provide additional information on the rationale for 
standard-specific non-compliance determinations.
    Response: The Department made no changes in response to these 
comments. The rationale for standard-specific non-compliance is 
demonstrated through conduct-specific information provided pursuant to 
Sec.  96.88(a)(2). The two sections 96.88(a)(2) and 96.88(a)(3), in 
conjunction, will provide sufficient notice to agencies and persons to 
provide transparency and clarity to the adverse action notification 
process.
    2. Comment: Several commenters are concerned the time allotted for 
the Department to respond to an agency's response to a notice of 
debarment hearing in the proposed Sec.  96.88(b) and (c) precludes the 
agency or person from a meaningful response and allows the Department 
to gather additional or different evidence than was originally

[[Page 57251]]

relied upon without the agency having a similar opportunity. Similarly, 
commenters wonder why agencies and persons would not be entitled to 
conduct discovery.
    Response: The Department made no changes in response to this 
comment. As noted in the proposed Sec.  96.88(c)(5), the procedures for 
debarment in Sec.  96.88 are informal and permissive; the hearing 
officer may accommodate reasonable variations in the process. 
Information developed from all sources becomes part of the record and 
is available to all parties. Although there is no right to subpoena 
witnesses or conduct discovery, the agency or person may testify in 
person, offer evidence on its own behalf, present witnesses, and make 
arguments at the hearing. Taken together, these features offer a sound 
basis for an effective and fair proceeding.
    3. Comment: One commenter is concerned that the Department, while 
permitting agencies to provide witnesses, may undermine that right by 
denying a visa to a foreign citizen willing to testify.
    Response: The Department has included the option for testifying via 
teleconference or to accept an affidavit or sworn deposition testimony 
at the discretion of the hearing officer if any witness is unable to 
appear. Obtaining a visa to appear in person should not prevent a 
witness in a foreign country from providing testimony in a debarment 
hearing. All testimony becomes part of the written record, the only 
record to be reviewed by the Secretary to make a debarment decision.
    4. Comment: Citing the intent of Congress as stated in Senate 
Report 106-276 that the Secretary may take enforcement actions only 
after the established avenue of enforcement by the accrediting entity 
has been found wanting, one commenter recommends that any written 
notice of a debarment hearing explain why the accrediting entity with 
jurisdiction is not taking action in the case.
    Response: The Department made no change to the regulation in 
response to this comment and notes that the cited Senate Report 
comments on the Secretary's authority in IAA Section 204(b) to suspend 
or cancel accreditation decisions by accrediting entities. The 
procedures in Sec.  96.88 relate to IAA Section 204(c) Debarment. 
Debarment is an exceptional proceeding outside of other enforcement 
actions established by the IAA, justified by circumstances that warrant 
exceptional action, i.e., when ``there has been a pattern of serious, 
willful, or grossly negligent failures to comply or other aggravating 
circumstances indicating that continued accreditation or approval would 
not be in the best interests of the children and families concerned.'' 
IAA Section 204(c)(1)(B), (42 U.S.C. 14924(c)(1)(B)). In this 
situation, the Congress provided authority for the Secretary to 
institute debarment proceedings on the Secretary's own initiative and 
independent of action by an accrediting entity, though an accrediting 
entity may request or recommend the Secretary debar an agency or 
person.
Section 96.90 Review of Suspension, Cancellation, or Debarment by the 
Secretary
    1. Technical Correction: The Department addresses in Sec.  96.90(b) 
judicial review of final decisions by the Secretary pursuant to IAA 
Section 204(d) (42 U.S.C. 14924(d)). We erroneously stated in our 
proposed rule that if the petition to Federal Court raises an issue 
``whether the deficiencies necessitating a suspension or cancellation 
have been corrected,'' the agency or person must first exhaust the 
procedures pursuant to Sec.  96.84(b). The referenced procedures are 
found instead in Sec.  96.84(c). We made this correction in the final 
rule.
    2. Comment: Several commenters are concerned with the provisions in 
Sec.  96.90(b) requiring, under certain conditions, that agencies and 
persons exhaust the process in Sec.  96.84(c) before seeking judicial 
review. The commenters think this requirement exceeds the Department's 
authority to limit judicial review.
    Response: The Department has made no changes to the provisions in 
Sec.  96.90(b). IAA Section 204(b) (42 U.S.C. 14924(b)) provides for 
agencies or persons to petition a Federal Court to set aside the 
Secretary's final suspension, cancellation, and debarment decisions. 
Section 96.84(a)-(b) and Sec.  96.84(c) provide two distinct processes 
to seek the Secretary's review of their suspension and cancellation 
decisions: Section 96.84(a)-(b) provides for a time-limited basis for 
filing with the Secretary a statement along with supporting materials 
as to why the decision was unwarranted and an internal review on the 
merits. Section 96.90(b) also denotes at what point a decision becomes 
final and thus reviewable in Federal Court. Section 96.84(c) is 
different in character from and operates independently of questions of 
``unwarrantedness.'' Section 96.84(c) executes the Secretary's 
authority in IAA Section 204(b)(2) (42 U.S.C. 14924(b)(2)) to terminate 
a suspension or permit reapplication in the case of cancellation, ``at 
any time when the Secretary is satisfied that the deficiencies on the 
basis of which adverse action is taken under paragraph 1 have been 
corrected. . . .'' Petitions under this section may be made regardless 
of whether the Secretary has made a final decision of suspension or 
cancellation pursuant to Sec.  96.84(a) and (b) and IAA Section 204(d) 
(42 U.S.C. 14924(d)). Far from limiting an agency or person's right to 
judicial review in such instances, Sec.  96.90(b) streamlines that 
review process by allowing the Secretary to resolve first the issue the 
IAA assigns her/him to resolve. The decision to terminate suspension or 
cancellation pursuant to Sec.  96.84(c) is not a final decision subject 
to judicial review pursuant to IAA Section 204(d).

Subpart M--Disseminating and Reporting of Information by the 
Accrediting Entities

Section 96.92 Dissemination of Information to the Public About 
Accreditation and Approval Status
    1. Comment: One commenter thinks the proposed deletion of Sec.  
96.92(b) will weaken the requirement for an accrediting entity to make 
information available to the public about an agency or person's 
accreditation and approval status. However, the commenter also notes 
the revision to Sec.  96.92(a) will require an accrediting entity to 
make information available more regularly than the current quarterly 
requirement.
    Response: Subpart M is intended to help prospective adoptive 
parent(s) make informed decisions about accredited agencies and 
approved persons. The final rule requires an accrediting entity to 
provide information about agency and person activities in Sec.  
96.92(a) more frequently, at least monthly rather than quarterly. The 
final rule retains Sec.  96.92(b), formerly Sec.  96.91(b), in order to 
maintain the requirement for an accrediting entity to provide such 
information upon specific request to individual members of the public. 
The final rule retains the addition of ``including, where relevant, the 
identity and conduct of any foreign supervised provider'' to assist 
prospective adoptive parents to make more informed decisions about the 
selection of an agency or person.

Subpart R--Alternative Procedures for Primary Providers in Intercountry 
Adoption by Relatives

Sec.  96.100 Alternative Procedures for Primary Providers in 
Intercountry Adoption by Relatives
    1. Comment: Several commenters welcome the effort to provide

[[Page 57252]]

regulations relating to adoption by relatives. Others expressed 
reservations that the proposed regulation will not produce the 
anticipated result of streamlining the process.
    Response: The Department made no changes to the proposed 
regulations in Subpart R except for withdrawing Sec.  96.100(d) and 
renumbering Section 96.100(e) to become the new Sec.  96.100(d). We 
agree with one commenter's statement that the relative adoption 
regulations balance services provided by close family members and 
services for which the primary provider is responsible. By limiting the 
required number of adoption services the primary provider must provide, 
the agencies or person's time commitment to such cases may be reduced, 
which is likely to reduce the cost of the services they provide in such 
cases.
    2. Comment: Some commenters are concerned the new provisions are 
not sufficient to overcome the perceived risks to families and to 
agencies and persons for providing limited adoption services in 
relative cases. These commenters noted that providing adoption services 
5 (post-placement monitoring) and 6 (disruption before final adoption) 
from the United States is difficult and it is unrealistic to expect an 
agency or person would have the capacity, knowledge, or relationships 
to effectively monitor a placement or be able to support the parties 
involved in a disrupted placement.
    Response: As envisioned by the IAA, adoption services 5 and 6 are 
important pieces of the regulatory process to protect the interests of 
children, birth parents, and prospective adoptive parents in 
intercountry adoption cases. Protecting those interests is no less a 
feature in the alternative procedures for intercountry adoption by 
relatives, and the final rule reflects this reality. Circumstances in 
each adoption case may vary and demand the primary provider's judgment 
and expertise with post-placement monitoring and transfer of the child 
to the custody of the adoptive family.
    3. Comment: Several commenters point out the importance of training 
for prospective adoptive parent(s) in relative adoption cases but note 
the training elements in Sec.  96.48 were not tailored to prepare 
adoptive families for adoption by relatives.
    Response: The Department made no changes to Sec.  96.48 
(preparation and training for prospective adoptive parents) in the 
final rule with respect to adoption by relatives. We agree prospective 
adoptive parent(s) adopting relatives will benefit from pre-adoptive 
training and preparation and that some parts of the training outlined 
in Sec.  96.48 may be more relevant to the relative adoption context 
than others. See the plans for review of Sec.  96.48 in paragraph II.E. 
of this preamble.

IV. Timeline for Implementing Changes in the Final Rule

    All changes in the final rule, including those related to the new 
alternative procedures for adoption by relatives abroad in subpart R, 
become effective 180 days after publication of the final rule in the 
Federal Register.

V. Regulatory Analysis

Administrative Procedure Act (APA)

    Consistent with the requirements in Section 203 of the Intercountry 
Adoption Act, as amended, the Department is issuing this final rule 
after having provided a period of public notice and comment on the rule 
in an NPRM published November 20, 2020.

Regulatory Flexibility Act/Executive Order 13272: Small Business

    This section considers the cost to small business entities of the 
changes to the accreditation regulations in this final rule as required 
by the Regulatory Flexibility Act (RFA, 5 U.S.C. et seq., Pub. L. 96-
354) as amended by the Small Business Regulatory Enforcement Fairness 
Act of 1996 (SBREFA). The RFA generally requires an agency to prepare a 
regulatory flexibility analysis of any rule subject to notice and 
comment rulemaking requirements under 5 U.S.C. 553(b). The IAA in 
section 203(a)(3) (42 U.S.C. 14923(a)(3)) provides that subsections 
(b), (c), and (d) of 5 U.S.C. 553 apply to this rulemaking. Consistent 
with the Regulatory Flexibility Act, we prepared a final regulatory 
flexibility analysis, which requires the following elements:
(1) A Statement About the Need for and Objectives of the Rule
    We refer the reader to the supplemental information on the final 
rule at the top of this preamble, which summarizes what we set out to 
accomplish in this final rule.

(2) A Statement of the Significant Issues Raised by the Public Comments 
in Response to the Initial Regulatory Flexibility Analysis (IRFA), a 
Statement of the Assessment of the Agency of Such Issues, and a 
Statement of any Changes Made in the Proposed Rule as a Result of Such 
Comments

    The public comments addressed the content of our IRFA, both in 
general terms and in comments directed to specific proposed changes. 
Some commenters were concerned that the cumulative impact of the 
proposed changes to our accreditation rule would result in increased 
costs to agencies and to fees charged to families. This was the most 
consistent concern. Some commenters thought that our estimated costs of 
implementation were low or did not consider some of the tasks they felt 
were essential to implementing the proposed changes. Of the 
Department's roughly 170 proposed edits and substantive changes to the 
accreditation rule, nearly half received no public comments. For the 
most part, these were minor edits or corrections to the regulation 
text, with no impact on the cost of implementation. We incorporated 
these changes into the final rule.
    For the proposed changes about which stakeholders provided 
comments, we evaluated them first on the basis of substance, i.e., what 
was the commenter trying to communicate about the proposed rule, and 
how did that align with our underlying statute, the IAA, and the 
Convention? Did the commenter propose a change we had not previously 
considered? How did the proposed change impact other parts of the 
regulations?
    Subsequent to these considerations on substance we considered the 
cost to agencies and persons of implementing the commenter-proposed 
regulatory changes: If a proposed change was incremental, was the cost 
to implement also small? Or would a proposed change increase 
implementation costs but significantly enhance the regulation's ability 
to promote the child and family protection objectives of the IAA and 
the Convention? These inquiries helped us balance the impact of 
commenter-proposed changes on substance and costs in our final rule. 
The section-by-section discussion of significant comments in preamble 
section III demonstrates this analytical approach.
    Significant Comments: Here are a few examples of significant public 
comments by commenters seeking relief from changes to the accreditation 
regulations they found too costly, too burdensome to implement.
(a) Standards Related to Adoption Placement Disruption Reporting
    In section 96.50, which deals with agency and person 
responsibilities when a placement disrupts prior to the final adoption, 
our proposed changes strengthened standards for agency or person action 
when a disruption occurs.
    Commenters recommended reducing or eliminating many of the changes, 
which they found overly burdensome to implement. Our policy priority 
remains to enhance protection of children who

[[Page 57253]]

are the most vulnerable when a disruption occurs. We believe it may be 
possible to develop a more streamlined standard on disruption reporting 
that minimizes costs while enhancing protection for children in these 
cases. We withdrew proposed changes to Sec.  96.50 to gain a better 
understanding of stakeholder perspectives through consultation before 
proposing changes relating to disruption reporting.
(b) Standards Relating to Making Direct Payments to Orphanages or Other 
Entities for Children Pending Adoption
    In the proposed rule in section 96.36 (a), we prohibited direct 
payments to birth parents, individuals, orphanages, or other 
institutions for the benefit of specific children and birth parents. 
Direct support payments by adoption service providers, their employees, 
and agents for specific child welfare activities, if permitted by the 
country of origin, has long been the subject of deep controversy among 
international child welfare and adoption experts. Our challenge is to 
sufficiently regulate the financial aspects of intercountry adoption to 
best mitigate the risk of these payments being diverted to support 
illicit practices directly or indirectly. Illicit practices we seek to 
avoid include, among others, recruiting children into institutions or 
child buying for purposes of intercountry adoption, or incentivizing 
institutions to retain children longer than necessary. Commenters 
argued strongly that this approach would be prejudicial to the best 
interests and wellbeing of children and noted in particular the 
importance of supporting children with medical conditions that require 
immediate attention that might not otherwise be possible without direct 
financial support. We found these arguments to be persuasive but remain 
deeply concerned about the possible diversion of these funds to illicit 
practices, which threaten the viability of intercountry adoption as a 
whole in addition to putting at risk the best interests and wellbeing 
of children. Our solution was to withdraw the prohibitions against 
making payments for child welfare and child protective services, while 
at the same time enhancing the standards for recordkeeping to increase 
oversight of the use of those funds. On balance, we wanted to respect 
the views of commenters about the value of providing targeted funds for 
child welfare and protective services in the period between matching 
and adoption, while imposing effective controls tracking the use of 
those funds.
(c) Standards Relating to Disclosure of Fees To Be Paid by Prospective 
Adoptive Parents
    We decided to withdraw, pending further stakeholder consultation, 
proposed changes in section 96.40 that would broadly restructure the 
way adoption service providers report fees to the public. The public 
comments argued strongly not to implement these changes because of the 
high cost associated with implementation. Many commenters thought the 
new structure did not adequately represent the way adoption service 
providers categorize fees and estimated expenses for prospective 
adoptive parent(s), nor did it address practical barriers to 
implementing the new structure. We believe strongly in achieving 
greater transparency in adoption service provider fees while taking 
seriously concerns that the cost of implementation would be higher than 
we had assessed. This is another area in which we believe additional 
stakeholder consultations are required to identify viable solutions 
before moving forward with any changes to the regulations.
(3) A Description of the Comments Filed by SBA
    The Chief Counsel for Advocacy of the Small Business Administration 
did not provide comments to our proposed rule.
(4) A Description and Estimate of the Number of Small Entities to Which 
the Rule Will Apply
    Table 1 summarizes the number of adoption service providers 
accredited or approved to provide adoption services in intercountry 
adoption cases. As of July 2022, there were 84 accredited or approved 
firms. Of those firms, 72 are small business entities according to the 
definition of the North American Industry Classification System 
(NAICS), which the SBA relies on to define small business firms. 
Different industries define small business firms differently. NAICS 
Code 624110 is the industry code for Child and Youth Services and 
includes establishments such as adoption agencies or entities that 
provide child adoption services. NAICS code 624110 defines small firms 
as those with gross revenues of up to $15.5 million. We established 
agency and person annual gross revenues or receipts from their public 
filings of IRS form 990. Six firms are not small business entities 
because their annual gross receipts exceeded $15.5 million. For six 
adoption service providers we have no gross receipts data (a small 
number of firms are not required to file form 990). Table 1 shows the 
distribution of gross receipts for the remaining 72 small firms.

  Table 1--U.S. Accredited and Approved Adoption Service Provider Firms
      Grouped by Annual Gross Receipts, NAICS Industry Code 624110
------------------------------------------------------------------------
                                             Number of
  Firms grouped by self-reported gross       adoption      Percentage of
                receipts                      service       small firms
                                             providers
------------------------------------------------------------------------
Other Firms:
    Firms with Gross Receipts over                     6             N/A
     $15.5M.............................
All Small Firms:
    Small Firms with Gross Receipts up                72            100%
     to $15.5M..........................
    Firms with Gross Receipts over $5M                 7             10%
     and up to $15.5M...................
    Firms with Gross Receiptsover $2M                 12             17%
     and up to $5M......................
    Firms with Gross Receiptsover $1M                 11             15%
     and up to $2M......................
    Firms with Gross Receiptsover $500K               14             19%
     and up to $1M......................
    Firms with Gross Receiptsover $0 and              28             39%
     up to $500K........................
Firms for Which We Have No Financial                   6             N/A
 Data...................................
    Total Number of U.S.Accredited and                84             N/A
     Approved Adoption Service Providers
------------------------------------------------------------------------


[[Page 57254]]

(5) A Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements of the Rule, Including Estimation of the 
Classes of Small Business Entities That Will Be Subject to the 
Requirements and the Types of Skills Necessary for Preparation of the 
Report or Record
    Several of the new provisions in the final rule require additional 
record-keeping or reporting. The skills needed to perform the 
recordkeeping and reporting aspects of these changes to the regulation 
include planning for the form such recordkeeping will take, tracking of 
funds possibly provided using Excel or similar spreadsheet software, 
collecting information in a word processing document in some cases, and 
planning for receipt and review of reporting. Examples of increased 
recordkeeping and reporting:
     Proposed changes to section 96.32 include a new 
requirement for agencies and persons to disclose to the accrediting 
entities business relationships with organizations having interlocking 
leadership or whose leaders share family relationships. This 
requirement will apply to all agencies or persons, regardless of size. 
The standard will require ASPs to maintain lists and to report them to 
the accrediting entities. It will also require keeping the lists 
updated, which will result in some, though modest, ongoing 
implementation costs, after the first year.
     Section 96.36 concerns the prohibition on child buying and 
inducement. As discussed above, this final rule does not contain the 
prohibition on certain reasonable payments proposed in the NPRM. At the 
same time, we introduced greater accountability for all payments 
through record-keeping requirements for payments made or fees paid in 
connection with an intercountry adoption. Accounting for such payments 
will help decrease the risk of payments intended to benefit children 
being diverted to support illicit practices. The record-keeping 
requirements mentioned here apply to agency and person employees and 
supervised providers who must retain a record of all payments provided 
in connection with an intercountry adoption and the purposes for which 
they were paid.
     Changes to section 96.46 provide that fees and expenses 
paid to foreign supervised providers for adoption services abroad will 
be billed to and paid by adoptive families through the primary 
provider. This new requirement will mean agencies and persons will 
transfer some funds to foreign supervised providers that families may 
have been providing themselves. Agencies and persons already have 
strong oversight responsibilities and supervision requirements with 
respect to foreign supervised providers, which are reinforced by these 
changes. The primary provider in the case is obliged under these 
changes to provide a written explanation of how and when such fees and 
expenses will be refunded if not used for the purpose intended. This 
process will require greater awareness and accountability on the part 
of the primary provider regarding how funds provided for use abroad are 
dispersed and accounted for.
     In some cases, an agency or person becomes aware of new 
information related to suitability and may withdraw its recommendation 
of the prospective adoptive parents in the home study or approval of a 
home study. When this occurs, the new provisions in section 96.47(e) 
require the agency or person to notify appropriate parties, including 
USCIS, the primary provider, and the prospective adoptive parents. 
These disclosure requirements must be accomplished in a timely fashion. 
All disclosures can be made electronically to facilitate the urgency of 
the decision-making in the case and to limit the cost of disclosures.
     Finally, in section 96.51, which addresses post-adoption 
services, including dissolution of an adoption, we included a new 
requirement that agencies and persons that do not provide post-adoption 
services provide clients information about potential sources of post-
adoption support services where they live.
(6) Description of the Steps the Agency Took To Minimize the 
Significant Adverse Economic Impact on Small Entities, Organizations, 
or Small Government Jurisdictions
    As noted, the Department diligently considered the concerns of 
agencies and persons about the cost of these changes to the 
regulations. The Department's primary concern was to meet the 
obligations of the statute on which the regulations are based and the 
treaty obligations under the Convention. We undertook to balance those 
interests with the practical realities of implementing changes to the 
regulations by the regulated entities. Part of this process was to try 
to determine what the cost of implementation would be. In our proposed 
rule, we provided the calculations we used to determine these costs, 
including the sources of information relating to national wage averages 
for the various categories of work with appropriate skill sets. The 
Department relied on the extensive public record of regional and 
national wage earner salaries found in Department of Labor 
publications. These data offered the most thoroughgoing estimates of 
what workers such as social workers, trainers, bookkeeping clerks, and 
auditors earn on average nationally, along with descriptions of what 
kinds of work they perform.
    In Table 2, we summarize the implementation costs associated with 
significant changes found in the final rule. As noted before, we 
withdrew some proposed changes and accepted some recommendations from 
public commenters to alter other proposed changes, all of which had the 
result of significantly reducing projected implementation costs of this 
final rule. We estimated average cost of implementing the proposed 
changes in the proposed rule was over $14,000 for each small firm in 
the first year. The current estimate for implementing the changes in 
the final rule is just over $4,000 for a single firm in the first year.

     Table 2--Projected Costs To Implement Changes in the Final Rule
------------------------------------------------------------------------
 
------------------------------------------------------------------------
             Projected Implementation Costs for Small Firms
------------------------------------------------------------------------
 
A. Estimated Average First Year Costs for each Small           $4,164.50
 Firm...................................................
    * For subsequent year average costs, see the bottom
     of this table.
------------------------------------------------------------------------
 Projected Implementation Costs for the Total Costs for all Small Firms
                  and the Total of all Firms--all Sizes
------------------------------------------------------------------------
 
B. Total Estimated Average First Year Costs for all             $299,844
 Small Firms............................................
    = A. x 72 small firms...............................
C. Total Estimated Average First Year Costs for all             $349,818
 Firms--all Sizes.......................................
    = A. x 84 firms of all sizes........................
------------------------------------------------------------------------


[[Page 57255]]


----------------------------------------------------------------------------------------------------------------
                                                                                   B. Estimated
                                                                   A. Estimated     average 1st    C. Estimated
  New regulatory elements and computation of estimated average      average 1st   year $ costs --   average 1st
                        first year costs                           year $ costs      all small    year $ costs --
                                                                  per small firm       firms         all firms
----------------------------------------------------------------------------------------------------------------
1. Sec.   96.32(e)(4): ASP discloses to the AE any orgs that                $310         $22,320         $26,040
 share with it any leadership, officers, boards, or family
 relationships, and whether it provides services to or receives
 payment from the agency or person..............................
----------------------------------------------------------------------------------------------------------------
     Creating and maintaining needed information:.......................................................
        [cir] 10 hours @$31/hour................................................................................
Estimated annual first year cost: $310..........................................................................
----------------------------------------------------------------------------------------------------------------
2. Sec.   96.34: No incentive or contingent fees or plans to                 180          12,924          15,078
 compensate formally or informally for locating or placing
 children.......................................................
----------------------------------------------------------------------------------------------------------------
     Updating Policies and Procedures:..................................................................
        [cir] 1-4 hours @$31/hour...............................................................................
        [cir] Min./Max. cost: $31/$124..........................................................................
        [cir] Average estimated cost: $77.50....................................................................
     Training:..........................................................................................
        [cir] 1-5 hours @$34/hour...............................................................................
        [cir] Min/Max cost: $65/$294............................................................................
        [cir] Average estimated cost: $102......................................................................
Estimated annual first year cost: $179.50.......................................................................
----------------------------------------------------------------------------------------------------------------
3. Sec.   96.36(b): Requires employees and supervised providers            1,228          88,380         103,110
 to record all payments or fees tendered and the purpose for
 which they were paid...........................................
----------------------------------------------------------------------------------------------------------------
     Updating Policies and Procedures:..................................................................
        [cir] 1-6 hours @$31/hour...............................................................................
        [cir] Min/Max Cost: $31/$186............................................................................
        [cir] Average Estimated Cost: $108.50...................................................................
     Training:..........................................................................................
        [cir] 1-5 hours @$34/hour...............................................................................
        [cir] Min/Max Cost: $34/$170............................................................................
        [cir] Average Estimated Cost: $102......................................................................
     Financial Recordkeeping:...........................................................................
        [cir] 2-4 hrs./month @$23/hour (x 12)...................................................................
        [cir] Min/Max Cost: $552/$1104..........................................................................
        [cir] Average Estimated Cost: $828......................................................................
     Auditor/Defining Data Set:.........................................................................
        [cir] 1-8 hours @$42/hour...............................................................................
        [cir] Min/Max Cost: $42/$336............................................................................
        [cir] Average Estimated Cost: $189......................................................................
Estimated annual first year cost: $1,227.50.....................................................................
----------------------------------------------------------------------------------------------------------------
4. Sec.   96.37(c): Social service personnel/supervisors require             130           9,360          10,920
 experience or training in professional delivery of adoption
 services.......................................................
----------------------------------------------------------------------------------------------------------------
     Updating Policies and Procedures:..................................................................
        [cir] 2 hours @$31/hour.................................................................................
        [cir] Estimated cost: $62...............................................................................
     Training:..........................................................................................
        [cir] 2 hours @$34/hour.................................................................................
        [cir] Estimated cost: $68...............................................................................
Estimated annual first year cost: $130..........................................................................
----------------------------------------------------------------------------------------------------------------
5. Sec.   96.38(b): Topics relating to intercountry adoption                 272          19,584          22,848
 about which agency social service personnel require training...
----------------------------------------------------------------------------------------------------------------
     Training:..........................................................................................
        [cir] 1-15 hours @$34/hour..............................................................................
        [cir] Min/Max Cost: $34/$510............................................................................
Estimated annual first year cost: $272..........................................................................
----------------------------------------------------------------------------------------------------------------
6. Sec.   96.38(d): Exemption from training for newly hired                97.50           7,020           8,190
 social service staff in certain circumstances..................
----------------------------------------------------------------------------------------------------------------
     Updating Policies and Procedures:..................................................................
        [cir] 1-2 hours @$31/hour...............................................................................
        [cir] Min/Max Cost: $31/$62.............................................................................
        [cir] Average Estimated Cost: $46.50....................................................................
     Training:..........................................................................................
        [cir] 1-2 hours @$34/hour...............................................................................
        [cir] Min/Max Cost: $34/$68.............................................................................
        [cir] Average Estimated Cost: $51.......................................................................
Estimated annual first year cost: $97.50........................................................................
----------------------------------------------------------------------------------------------------------------
7. Sec.   96.41(b): Permits any birth parent, PAP, adoptive                   82           5,904           6,888
 parent, or adoptee to lodge electronic complaints and clarifies
 that all complaints must clearly identify the complainant and
 the date of the complaint......................................
----------------------------------------------------------------------------------------------------------------
     Updating Policies and Procedures...................................................................
        [cir] 1 hour @$31/hour..................................................................................
        [cir] Estimated cost: $31...............................................................................
     Training:..........................................................................................
        [cir] 1-2 hours @$34/hour...............................................................................
        [cir] Min/Max Cost: $34/$68.............................................................................

[[Page 57256]]

 
        [cir] Average Estimated Cost: $51.......................................................................
Estimated annual first year cost: $82...........................................................................
----------------------------------------------------------------------------------------------------------------
8. Sec.   96.46(b)(7): Prohibits PAP direct payments to foreign           729.50          52,524          61,278
 supervised providers for adoption services. Primary providers
 bill clients and pay fees and expenses due to the foreign
 supervised providers...........................................
----------------------------------------------------------------------------------------------------------------
     Updating Policies and Procedures:..................................................................
        [cir] 1-6 hours @$31/hour...............................................................................
        [cir] Min/Max Cost: $31/$186............................................................................
        [cir] Average Estimated Cost: $109......................................................................
     Training:..........................................................................................
        [cir] 1-5 hours @$34/hour...............................................................................
        [cir] Min/Max Cost: $34/$170............................................................................
        [cir] Average Estimated Cost: $102......................................................................
     Financial Recordkeeping:...........................................................................
        [cir] 1-2 hrs./month @$23/hour (x 12)...................................................................
        [cir] Min/Max Cost: $276/$552...........................................................................
        [cir] Average Estimated Cost: $414......................................................................
     Auditor/Defining Data Set:.........................................................................
        [cir] 1-4 hours @$42/hour...............................................................................
        [cir] Min/Max Cost: $42/$168............................................................................
        [cir] Average Estimated Cost: $189......................................................................
Estimated annual first year cost: $729.50.......................................................................
----------------------------------------------------------------------------------------------------------------
9. Sec.   96.47(e): Procedures for withdrawal of home study               326.50          23,508          27,426
 approval including notification to USCIS, the primary provider,
 and others as appropriate......................................
----------------------------------------------------------------------------------------------------------------
     Updating Policies and Procedures; Notifying Prospective Adoptive Parents, USCIS, and the Department
     as Needed:.................................................................................................
        [cir] 1-8 hours @$31/hour...............................................................................
        [cir] Min/Max Cost: $31/$248............................................................................
        [cir] Average Estimated Cost: $139.50...................................................................
     Training:..........................................................................................
        [cir] 1-10 hours @$34/hour..............................................................................
        [cir] Min/Max Cost: $34/$340............................................................................
        [cir] Average Estimated Cost: $189......................................................................
Estimated annual first year cost: $326.50.......................................................................
----------------------------------------------------------------------------------------------------------------
10. Sec.   96.51: Clarifies ASP role in post-adoption services               365          26,280          30,660
 in incoming cases and requires providing sources of support in
 the event of dissolution if the ASP does not provide post
 adoption services..............................................
----------------------------------------------------------------------------------------------------------------
     Updating Policies and Procedures:..................................................................
        [cir] 1-5 hours @$31/hour...............................................................................
        [cir] Min/Max Cost: $31/$155............................................................................
        [cir] Average Estimated Cost: $93.......................................................................
     Training:..........................................................................................
        [cir] 1-15 hours @$34/hour..............................................................................
        [cir] Min/Max Cost: $34/$510............................................................................
        [cir] Average Estimated Cost: $272......................................................................
Estimated annual first year cost: $365..........................................................................
----------------------------------------------------------------------------------------------------------------
11. Additional Costs............................................             445          32,040          37,380
----------------------------------------------------------------------------------------------------------------
     Executive Director's time:.........................................................................
        [cir] 5 hours/year @$89/hour: $445......................................................................
     Cost of Archiving Electronic Information:..........................................................
        [cir] There may be some archiving costs to store the new information to be collected in the final rule.
         Costs will vary according to the ASP's electronic processing needs, how it organizes its electronic
         records, and any excess capacity on hand to absorb the additional information. Given these factors, we
         are unable to estimate this additional cost............................................................
Estimated annual first year cost: $445..........................................................................
----------------------------------------------------------------------------------------------------------------
    Total Estimated Average Costs for the First Year............        4,164.50         299,844         349,818
----------------------------------------------------------------------------------------------------------------


 
                                                                                    B. Average
                                                                    A. Average      subsequent      C. Average
  New regulatory elements and computation of estimated average      subsequent    year $ costs --   subsequent
                      subsequent year costs                        year $ costs      all small    year $ costs --
                                                                  per small firm       firms         all firms
----------------------------------------------------------------------------------------------------------------
1. Sec.   96.32(e)(4): Subsequent years average costs for                     62           4,464           5,208
 maintaining lists and disclosure to the accrediting entities of
 any orgs that share with it any leadership, officers, boards,
 or family relationships and whether it provides services to or
 receives payment from the agency or person.....................
----------------------------------------------------------------------------------------------------------------
     Maintaining the information:.......................................................................
        [cir] 2 hours @$31/hour.................................................................................
Estimated annual subsequent year cost for small firms: $62......................................................
----------------------------------------------------------------------------------------------------------------


[[Page 57257]]


----------------------------------------------------------------------------------------------------------------
                                                                                    B. Average
                                                                    A. Average      subsequent      C. Average
  New regulatory elements and computation of estimated average      subsequent    year $ costs --   subsequent
                      subsequent year costs                        year $ costs      all small    year $ costs --
                                                                  per small firm       firms         all firms
----------------------------------------------------------------------------------------------------------------
2. Sec.   96.36(b): (Subsequent year average costs for the                   828          59,616          69,552
 enhanced recordkeeping of fees and payments made in connection
 with intercountry adoption.)...................................
----------------------------------------------------------------------------------------------------------------
     Financial Recordkeeping:...........................................................................
        [cir] 2-4 hrs./month @23/hour...........................................................................
        [cir] Min/Max cost: $552/$1,104.........................................................................
Estimated average annual subsequent year cost for small firms: $828.............................................
----------------------------------------------------------------------------------------------------------------
    Total Average Costs for Subsequent Years....................             890          64,080          74,760
----------------------------------------------------------------------------------------------------------------


 
   Wage categories with national average wage rates from the may 2022
 bureau of labor statistics occupational employment and wage statistics
                               data tables
-------------------------------------------------------------------------
                                                             National
          ASP staff roles               Performed by      average hourly
                                                               rate
------------------------------------------------------------------------
Financial Recordkeeping...........  Bookkeeping Clerk               @$23
                                     (Occupation
                                     category 43-3031).
Updating Policies and Procedures;   Social Worker                    @31
 Notifying Prospective Adoptive      (Occupation
 Parents, USCIS, and the             category 21-1029).
 Department as Needed.
Training..........................  Training Officer                 @34
                                     (Occupation
                                     category 13-1151).
Auditor/Data Set Defining.........  Auditor (Occupation              @42
                                     category 13-2011).
Chief Executives..................  Executive Director/              @89
                                     CEO (Occupation
                                     category 11-1011).
------------------------------------------------------------------------

    Table 3 illustrates the estimated annual cost of implementation 
expressed as a percentage of gross receipts of agencies and persons. 
For nearly all accredited agencies and approved persons, the cost of 
implementation represents less than one percent, and in no case more 
than 1.6% of gross receipts, as reported in IRS Form 990. We also 
expect that agencies and persons will benefit from economies generated 
by sharing information related to implementation, which may result in 
cost savings, particularly relating to tasks such as updating policies 
and procedures and preparing internal and external training related to 
new or revised standards.

      Table 3--Revenue Test for Accredited or Approved Adoption Service Providers' Cost of Implementation as a Percentage of Annual Gross Receipts
                                             [NAICS Industry Code 624110--Up to $15.5 Million = Small Firm]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Number of                                                    Average $ cost
                                          Average annual     adoption      Percentage of  Average $ cost                    per firm in
      Firm size (by gross receipts)           gross $         service       small firms     per firm in   Revenue test %    sub-sequent   Revenue test %
                                             receipts     provider firms                    first year                         years
--------------------------------------------------------------------------------------------------------------------------------------------------------
Firms with Gross Receipts over $15.5M...      26,375,544               6             N/A           4,165              <1             890              <1
Small Firms:
    Gross Receipts--All Small Firms $0         2,883,831              72             100           4,165              <1             890              <1
     up to $15.5M.......................
    Firms with Gross Receipts over $5M         8,550,186               7              10           4,165              <1             890              <1
     and up to $15.5M...................
    Firms with Gross Receipts over $2M         3,577,609              12              17           4,165              <1             890              <1
     and up to $5M......................
    Firms with Gross Receipts over $1M         1,351,564              11              15           4,165              <1             890              <1
     and up to $2M......................
    Firms with Gross Receipts over $500K         677,821              14              19           4,165              <1             890              <1
     and up to $1M......................
    Firms with Gross Receipts over $0K           261,977              28              39           4,165             1.6             890              <1
     and up to $500K....................
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of Adoption Service Provider Firms about which We Have No Financial Data: 6.
--------------------------------------------------------------------------------------------------------------------------------------------------------

Congressional Review Act

    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) 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

    While States traditionally have regulated adoptions and will have 
an interest in this rule, the Department does not believe this 
regulation will have substantial direct effects on the States, on the 
relationship between the national government and the States, or the 
distribution of power and

[[Page 57258]]

responsibilities among the various levels of government. The rule does 
not impose any obligations on State governments or have federalism 
implications warranting the application of Executive Orders 12372 and 
13132.

Executive Orders 12866, 14094, and 13563

    The Department has reviewed this final rule to ensure its 
consistency with the regulatory philosophy and principles set forth in 
Executive Order 12866, as amended by Executive Order 14094. The cost to 
accredited agencies and approved persons for implementing the changes 
in the final rule are modest and reflect an effort to maximize desired 
outcomes at minimized cost. The obligation to determine whether the 
benefits of the proposed revision to the accreditation regulation 
outweigh the costs of achieving them is made more difficult by the fact 
that the benefits, which primarily relate to protecting the best 
interests of the child, as well as providing certain consumer 
protections for prospective adoptive parents, are difficult to quantify 
economically. That makes a strict cost-benefit analysis difficult to 
accomplish. Nonetheless, we believe the benefits apparent from this 
qualitative discussion of costs and benefits support our conclusion 
that the costs associated with the proposed changes are justified and 
conclude they deliver significant benefits on several levels. The 
benefits to children, to adoptive families, to society in general, and 
to the institution of intercountry adoption in terms of its world-wide 
viability, outweigh the dollar costs of implementing the proposed 
changes.
    We discussed earlier in this preamble why we pursued revisions to 
the accreditation rule and why we introduced new elements. We noted 
qualitative factors informing the process and our estimates of average 
dollar costs to implement them. In parts II and III of this preamble, 
we highlighted changes included in this final rule responsive to 
adoption service provider comments addressing both the cost and the 
effectiveness of our proposed revisions to the rule. The following 
discussion summarizes the categories of benefits driving changes 
incorporated in the final rule.
    Because this final rule concerns standards for agencies and persons 
providing adoption services in intercountry adoption and the 
accreditation and oversight process authorizing them to do so, our 
cost-benefit analysis relies on categories of benefits that are both 
nonmonetizable and nonquantifiable. The qualitative character of the 
resulting cost-benefit analysis closely reflects the qualitative 
outcomes essential to carrying out our statutory accreditation scheme 
in service of each side of the adoption triad: children, birth 
families, and adoptive families.
    As part of the cost-benefit analysis responsive to Executive Orders 
12866, as amended, and E.O. 13563 we weighed possible changes to the 
final rule against several categories of qualitative benefits 
summarized in Table 4.

                       Table 4--Benefit Categories
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
Benefit Category 1--Efficiency.
Benefit Category 2--Clarity and Transparency.
Benefit Category 3--Payment Accountability.
Benefit Category 4--Enhanced Expertise of Social Service Personnel.
Benefit Category 5--Preserving Due Process Protections.
------------------------------------------------------------------------

    Benefit category 1--Efficiency. This category represents maximizing 
the effective use of resources in a standard or process. The new 
provisions relating to adoption by relatives are illustrative as they 
provide a streamlined process limiting primary provider services while 
leveraging the experience of in-country relatives. The resulting 
savings in time and expense promises to make adoption by relatives a 
more accessible option for adoptive families.
    Benefit Category 2--Clarity and Transparency. The revised 
regulations provide processes that address persistent questions raised 
by adoption service providers and accrediting entities, such as 
requirements for notification regarding changes in prospective adoptive 
parent suitability. This benefit category is also embodied in the 
revision to best interests of the child and in clarifying the 
requirements of the submission of complaints to adoption service 
providers.
    Benefit Category 3--Payment Accountability. In the final rule we 
introduce enhanced recordkeeping practices for payments and fees made 
in connection with an intercountry adoption. In addition, we added a 
standard that prohibits foreign supervised providers from directly 
billing prospective adoptive parents for the provision of adoption 
services abroad. These changes will increase transparency between 
primary providers and foreign supervised providers in a child's country 
of origin and better protect prospective adoptive parents from price 
gouging and from imposition of unexpected additional fees in the 
adoption process abroad.
    Benefit Category 4--Enhanced Expertise of Social Service Personnel. 
We enhanced social worker training standards to incorporate new 
elements relating to trauma-informed parenting and assisting children 
with special needs. Agencies and persons utilize initial and ongoing 
training to keep newly hired and current employees well prepared and 
highly knowledgeable. Duties assigned to social service personnel 
include providing adoptive families adoption-related social services 
that involve the application of clinical skills and judgment.
    Benefit Category 5--Preserving Due Process Protections. The 
accreditation regulations include procedures for holding agencies and 
persons accountable for misconduct through adverse action proceedings. 
In the final rule we introduce new procedural safeguards applicable 
when the Secretary suspends or cancels accreditation or approval, 
including how to overcome the suspension or cancellation either because 
the adverse action was unwarranted or because the deficiencies leading 
to suspension or cancellation have been corrected. These changes also 
enhance clarity and transparency for adoption service providers faced 
with a loss of accreditation or approval. The new procedures for use in 
debarment proceedings, likewise, provide clarity and transparency while 
also effectively protecting the due process rights of agencies and 
persons accused of the most egregious abuses and facing the most severe 
penalties.
    Taken as a whole, the changes in this final rule represent 
essential revisions to make the accreditation regulations more 
effective given the purposes of the Convention and implementing 
legislation, noted above, working for the best interests of children 
and enhanced viability of intercountry adoption worldwide.

[[Page 57259]]

Total Cost Estimates
    Table 5 summarizes the financial impacts of the proposed rule. 
Total monetized costs of the proposed rule include the aggregated 
average cost of implementing the proposed changes to the accreditation 
rule summarized in Table 2. The 10-year discounted cost of the proposed 
rule in 2023 dollars would range from $953,000 to $994,000 (with three 
and seven percent discount rates, respectively). The annualized costs 
of the proposed rule would range from $95,000 to $99,000 (with three 
and seven percent discount rates, respectively).

Table 5--Costs of the Proposed Rule in 2023 $ (Thousands) With Three and
                      Seven Percent Discount Rates
------------------------------------------------------------------------
                                                         All adoption
                                                       service provider
                     Fiscal year                       firms regardless
                                                            of size
------------------------------------------------------------------------
2024................................................                 350
2025................................................                  75
2026................................................                  75
2027................................................                  75
2028................................................                  75
2029................................................                  75
2030................................................                  75
2031................................................                  75
2032................................................                  75
2033................................................                  75
                                                     -------------------
    Undiscounted Total..............................              $1,025
                                                     -------------------
    Total with 3% discounting.......................                $994
                                                     -------------------
    Total with 7% discounting.......................                $953
                                                     -------------------
        Annualized, 3% discount rate, 10 years......                 $99
                                                     -------------------
        Annualized, 7% discount rate, 10 years......                 $95
------------------------------------------------------------------------

Executive Order 12988: Civil Justice Reform

    The Department 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 Department 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

    Accreditation, Administrative practice and procedure, Intercountry 
adoption, Reporting and recordkeeping requirements, Standards, 
Treaties.

    For the reasons stated in the preamble, the Department of State 
amends 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 continues 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)); The Intercountry Adoption Act of 2000, 42 U.S.C. 
14901-14954; The Intercountry Adoption Universal Accreditation Act 
of 2012, Pub. L. 112-276, 42 U.S.C. 14925.


0
2. Revise subpart A to read as follows:
Subpart A--General Provisions
Sec.
96.1 Purpose.
96.2 Definitions.
96.3 [Reserved]

Subpart A--General Provisions


Sec.  96.1   Purpose.

    This part provides for the accreditation and approval of agencies 
and persons pursuant to the Intercountry Adoption Act of 2000 (42 
U.S.C. 14901-14954, Pub. L. 106-279), which implements the 1993 Hague 
Convention on the Protection of Children and Co-operation in Respect of 
Intercountry Adoption, U.S. Senate Treaty Doc. 105-51, Multilateral 
Treaties in Force as of January 1, 2016, p. 9; and the Intercountry 
Adoption Universal Accreditation Act of 2012 (42 U.S.C. 14925, Pub. L. 
112-276).


Sec.  96.2   Definitions.

    As used in this part, the term:
    Accredited agency means an agency that has been accredited by an 
accrediting entity, in accordance with the standards in subpart F of 
this part, to provide adoption services in the United States in 
intercountry adoption cases.
    Accrediting entity means an entity that has been designated by the 
Secretary to accredit agencies and/or to approve persons for purposes 
of providing adoption services in the United States in intercountry 
adoption cases.
    Adoption means the judicial or administrative act that establishes 
a permanent legal parent-child relationship between a minor and an 
adult who is not already the minor's legal parent and terminates the 
legal

[[Page 57260]]

parent-child relationship between the adoptive child and any former 
parent(s).
    Adoption record means any record, information, or item related to a 
specific intercountry adoption of a child received or maintained by an 
agency, person, or public domestic authority, including, but not 
limited to, photographs, videos, correspondence, personal effects, 
medical and social information, and any other information about the 
child.
    Adoption service means any one of the following six services:
    (1) Identifying a child for adoption and arranging an adoption;
    (2) Securing the necessary consent to termination of parental 
rights and to adoption;
    (3) Performing a background study on a child or a home study on a 
prospective adoptive parent(s), and reporting on such a study;
    (4) Making non-judicial determinations of the best interests of a 
child and the appropriateness of an adoptive placement for the child;
    (5) Monitoring a case after a child has been placed with 
prospective adoptive parent(s) until final adoption; or
    (6) When necessary because of a disruption before final adoption, 
assuming custody and providing (including facilitating the provision 
of) child care or any other social service pending an alternative 
placement.
    Agency means a private, nonprofit organization licensed to provide 
adoption services in at least one State. (For-profit entities and 
individuals that provide adoption services are considered ``persons'' 
as defined in this section.)
    Approved home study means a review of the home environment of the 
child's prospective adoptive parent(s) that has been:
    (1) Completed by an accredited agency; or
    (2) Approved by an accredited agency.
    Approved person means a person that has been approved, in 
accordance with the standards in subpart F of this part, by an 
accrediting entity to provide adoption services in the United States in 
intercountry adoption cases.
    Best interests of the child, in cases in which a State has 
jurisdiction to decide whether a particular adoption or adoption-
related action is in a child's best interests, shall have the meaning 
given to it by the law of the State. In all other cases, including any 
case in which a child is outside the United States at the time the ASP 
considers the best interests of the child in connection with any 
decision or action, best interests of the child shall be interpreted in 
light of the object and purpose of the Convention, the IAA, the UAA, 
and their implementing regulations.
    Case Registry means the tracking system jointly established by the 
Secretary and DHS to comply with section 102(e) of the IAA (42 U.S.C. 
14912).
    Central Authority means the entity designated as such under Article 
6(1) of the Convention by any Convention country, or, in the case of 
the United States, the United States Department of State. In countries 
that are not Convention countries, Central Authority means the relevant 
``competent authority'' as defined in this section.
    Child welfare services means services, other than those defined as 
``adoption services'' in this section, that are designed to promote and 
protect the well-being of a family or child. Such services include, but 
are not limited to, providing temporary foster care for a child in 
connection with an intercountry adoption or providing educational, 
social, cultural, medical, psychological assessment, mental health, or 
other health-related services for a child or family in an intercountry 
adoption case.
    Competent authority means a court or governmental authority of a 
foreign country that has jurisdiction and authority to make decisions 
in matters of child welfare, including adoption.
    Complaint Registry means the system created by the Secretary 
pursuant to Sec.  96.70 to receive, distribute, and monitor complaints 
relevant to the accreditation or approval status of agencies and 
persons.
    Convention means the Convention on Protection of Children and Co-
operation in Respect of Intercountry Adoption done at The Hague on May 
29, 1993.
    Convention adoption means the adoption of a child resident in a 
Convention country by a United States citizen, or an adoption of a 
child resident in the United States by an individual or individuals 
residing in a Convention country, when, in connection with the 
adoption, the child has moved or will move between the United States 
and the Convention country.
    Convention country means a country that is a party to the 
Convention and with which the Convention is in force for the United 
States.
    Country of origin means the country in which a child is a resident 
and from which a child is emigrating in connection with his or her 
adoption.
    Debarment means the loss of accreditation or approval by an agency 
or person as a result of an order of the Secretary under which the 
agency or person is temporarily or permanently barred from 
accreditation or approval.
    DHS means the U.S. Department of Homeland Security and encompasses 
the former Immigration and Naturalization Service (INS) or any 
successor entity designated by the Secretary of Homeland Security to 
assume the functions vested in the Attorney General by the IAA relating 
to the INS's responsibilities.
    Disruption means the interruption of a placement for adoption 
during the post-placement period.
    Dissolution means the termination of the adoptive parent(s)' 
parental rights after an adoption.
    Exempted provider means a social work professional or organization 
that performs a home study on prospective adoptive parent(s) or a child 
background study (or both) in the United States in connection with an 
intercountry adoption (including any reports or updates), but that is 
not currently providing and has not previously provided any other 
adoption service in the case.
    IAA means the Intercountry Adoption Act of 2000, Public Law 106-279 
(2000) (42 U.S.C. 14901-14954), as amended from time to time.
    INA means the Immigration and Nationality Act (8 U.S.C. 1101 et 
seq.), as amended.
    Intercountry adoption means a Convention adoption of a child 
described in INA section 101(b)(1)(G) or the adoption of a child 
described in INA section 101(b)(1)(F).
    Legal custody means having legal responsibility for a child under 
the order of a court of law, a public domestic authority, competent 
authority, public foreign authority, or by operation of law.
    Legal services means services, other than those defined in this 
section as ``adoption services,'' that relate to the provision of legal 
advice and information and to the drafting of legal instruments. Such 
services include, but are not limited to, drawing up contracts, powers 
of attorney, and other legal instruments; providing advice and counsel 
to adoptive parent(s) on completing DHS or Central Authority forms; and 
providing advice and counsel to accredited agencies, approved persons, 
or prospective adoptive parent(s) on how to comply with the Convention, 
the IAA, the UAA, and the regulations implementing the IAA and the UAA.
    Person means an individual or a private, for-profit entity 
(including a corporation, company, association, firm, partnership, 
society, or joint stock company) providing adoption services.

[[Page 57261]]

It does not include public domestic authorities or public foreign 
authorities.
    Post-adoption means after an adoption; in cases in which an 
adoption occurs in a foreign country and is followed by a re-adoption 
in the United States, it means after the adoption in the foreign 
country.
    Post-placement means after a grant of legal custody or guardianship 
of the child to the prospective adoptive parent(s), or to a custodian 
for the purpose of escorting the child to the identified prospective 
adoptive parent(s), and before an adoption.
    Primary provider means the accredited agency or approved person 
that is identified pursuant to Sec.  96.14 as responsible for ensuring 
that all six adoption services are provided and for supervising and 
being responsible for supervised providers where used.
    Public domestic authority means an authority operated by a State, 
local, or Tribal government within the United States.
    Public foreign authority means an authority operated by a national 
or subnational government of a foreign country.
    Relative, for the purposes of the alternative procedures for 
primary providers in intercountry adoption by relatives found in 
subpart R of this part, means a prospective adoptive parent was 
already, before the adoption, any of the following: parent, step-
parent, brother, step-brother, sister, step-sister, grandparent, aunt, 
uncle, half-brother to the child's parent, half-sister to the child's 
parent, half-brother, half-sister, or the U.S. citizen spouse of the 
person with one of these qualifying relationships with the child. The 
relationship can exist by virtue of blood, marriage, or adoption.
    Secretary means the Secretary of State, the Assistant Secretary of 
State for Consular Affairs, or any other Department of State official 
exercising the Secretary of State's authority under the Convention, the 
IAA, the UAA, or any regulations implementing the IAA and the UAA, 
pursuant to a delegation of authority.
    State means the 50 States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, and the U.S. Virgin Islands.
    Supervised provider means any agency, person, or other non-
governmental entity, including any domestic or foreign entity, 
regardless of whether it is called a facilitator, agent, attorney, or 
by any other name, that is providing one or more adoption services in 
an intercountry adoption case under the supervision and responsibility 
of an accredited agency or approved person that is acting as the 
primary provider in the case.
    UAA means the Intercountry Adoption Universal Accreditation Act of 
2012 (42 U.S.C. 14925, Pub. L. 112-276 (2012)).
    USCIS means U.S. Citizenship and Immigration Services within the 
U.S. Department of Homeland Security.


Sec.  96.3   [Reserved]

0
3. Revise subpart B to read as follows:
Subpart B--Selection, Designation, and Duties of Accrediting Entities
Sec.
96.4 Designation of accrediting entities by the Secretary.
96.5 Requirement that accrediting entity be a nonprofit or public 
entity.
96.6 Performance criteria for designation as an accrediting entity.
96.7 Authorities and responsibilities of an accrediting entity.
96.8 Fees charged by accrediting entities.
96.9 Agreement between the Secretary and the accrediting entity.
96.10 Suspension or cancellation of the designation of an 
accrediting entity by the Secretary.
96.11 [Reserved]

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


Sec.  96.4  Designation of accrediting entities by the Secretary.

    (a) The Secretary, in the Secretary's discretion, will designate 
one or more entities that meet the criteria set forth in Sec.  96.5 to 
perform the accreditation and/or approval functions. Each accrediting 
entity's designation will be set forth in an agreement between the 
Secretary and the accrediting entity. The agreement will govern the 
accrediting entity's operations. The agreements will be published in 
the Federal Register.
    (b) The Secretary's designation may authorize an accrediting entity 
to accredit agencies, to approve persons, or to both accredit agencies 
and approve persons. The designation may also limit the accrediting 
entity's geographic jurisdiction or impose other limits on the entity's 
jurisdiction.
    (c) A public entity under Sec.  96.5(b) may only be designated to 
accredit agencies and approve persons that are located in the public 
entity's State.


Sec.  96.5   Requirement that accrediting entity be a nonprofit or 
public entity.

    An accrediting entity must qualify as either:
    (a) An organization described in section 501(c)(3) of the Internal 
Revenue Code of 1986, as amended (26 CFR 1.501(c)(3)-1), that has 
expertise in developing and administering standards for entities 
providing child welfare services; or
    (b) A public entity (other than a Federal entity), including, but 
not limited to, any State or local government or governmental unit or 
any political subdivision, agency, or instrumentality thereof, that has 
expertise in developing and administering standards for entities 
providing child welfare services.


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

    An entity that seeks to be designated as an accrediting entity must 
demonstrate to the Secretary:
    (a) That it has a governing structure, the human and financial 
resources, and systems of control adequate to ensure its reliability;
    (b) That it is capable of performing the accreditation or approval 
functions or both on a timely basis and of administering any renewal 
cycle authorized under Sec.  96.60;
    (c) That it can monitor the performance of accredited agencies and 
approved persons (including their use of any supervised providers) to 
ensure their continued compliance with the Convention, the IAA, the 
UAA, and the regulations implementing the IAA and the UAA;
    (d) That it has the capacity to take appropriate adverse actions 
against accredited agencies and approved persons;
    (e) That it can perform the required data collection, reporting, 
and other similar functions;
    (f) Except in the case of a public entity, that it operates 
independently of any agency or person that provides adoption services, 
and of any membership organization that includes agencies or persons 
that provide adoption services;
    (g) That it has the capacity to conduct its accreditation and 
approval functions fairly and impartially;
    (h) That it can comply with any conflict of interest prohibitions 
set by the Secretary;
    (i) That it prohibits conflicts of interest with agencies or 
persons or with any membership organization that includes agencies or 
persons that provide adoption services; and
    (j) That it prohibits its employees or other individuals acting as 
site evaluators, including, but not limited to, volunteer site 
evaluators, from becoming employees or supervised providers of an 
accredited agency or approved person for at least one year after they 
have evaluated such agency or person for accreditation or approval.

[[Page 57262]]

Sec.  96.7   Authorities and responsibilities of an accrediting entity.

    (a) An accrediting entity may be authorized by the Secretary to 
perform some or all of the following functions:
    (1) Determining whether agencies are eligible for accreditation;
    (2) Determining whether persons are eligible for approval;
    (3) Overseeing accredited agencies and/or approved persons by 
monitoring their compliance with applicable requirements;
    (4) Reviewing and responding to complaints about accredited 
agencies and approved persons (including their use of supervised 
providers);
    (5) Taking adverse action against an accredited agency or approved 
person, and/or referring an accredited agency or approved person for 
possible action by the Secretary;
    (6) Determining whether accredited agencies and approved persons 
are eligible for renewal of their accreditation or approval on a cycle 
consistent with Sec.  96.60;
    (7) Collecting data from accredited agencies and approved persons, 
maintaining records, and reporting information to the Secretary, State 
courts, and other entities; and
    (8) Assisting the Secretary in taking appropriate action to help an 
agency or person in transferring its intercountry adoption cases and 
adoption records.
    (9) Maintaining all records related to its role as an accrediting 
entity for a period of at least ten years, or longer if otherwise set 
forth in its agreement with the Secretary.
    (b) The Secretary may require the accrediting entity:
    (1) To utilize the Complaint Registry as provided in subpart J of 
this part; and
    (2) To fund a portion of the costs of operating the Complaint 
Registry with fees collected by the accrediting entity pursuant to the 
schedule of fees approved by the Secretary as provided in Sec.  96.8.
    (c) An accrediting entity must perform all responsibilities in 
accordance with the Convention, the IAA, the UAA, the regulations 
implementing the IAA and the UAA, and its agreement with the Secretary.


Sec.  96.8   Fees charged by accrediting entities.

    (a) An accrediting entity may charge fees for accreditation or 
approval services 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 the 
accrediting entity functions the Secretary has authorized it to perform 
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 Secretary shall publish in the Federal Register a notice of 
the proposed fee schedule along with a summary of the information 
provided by the accrediting entity and a general statement explaining 
their basis. After notice required by this section, the Secretary shall 
give interested persons an opportunity to participate in the proposed 
fee schedule setting through submission of written data, views, or 
arguments with or without opportunity for oral presentation. After 
consideration of the relevant matter presented, the Secretary shall, 
following approval of the final schedule of fees, publish the final 
schedule of fees and a concise general statement of their basis.
    (c) The schedule of fees must:
    (1) Establish separate, non-refundable fees for accreditation and 
approval; and
    (2) Include in each fee the costs of all activities associated with 
such fee, 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, 
except that separate fees based on actual costs incurred may be charged 
for the travel and maintenance of evaluators.
    (d) An accrediting entity must make its approved schedule of fees 
available to the public, including prospective applicants for 
accreditation or approval, upon request. At the time of application, 
the accrediting entity must specify the fees to be charged to the 
applicant in a contract between the parties and must provide notice to 
the applicant that no portion of the fee will be refunded if the 
applicant fails to become accredited or approved.
    (e) Nothing in this section shall be construed to provide a private 
right of action to challenge any fee charged by an accrediting entity 
pursuant to a schedule of fees approved by the Secretary.


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

    An accrediting entity must perform its functions pursuant to a 
written agreement with the Secretary that will be published in the 
Federal Register. The agreement will address:
    (a) The responsibilities and duties of the accrediting entity;
    (b) The method by which the costs of delivering the authorized 
accrediting entity functions may be recovered through the collection of 
fees from those seeking accreditation or approval, and how the entity's 
schedule of fees will be approved;
    (c) How the accrediting entity will address complaints about 
accredited agencies and approved persons (including their use of 
supervised providers) and complaints about the accrediting entity 
itself;
    (d) Data collection requirements;
    (e) Matters of communication and accountability between both the 
accrediting entity and the applicant(s) and between the accrediting 
entity and the Secretary; and
    (f) Other matters upon which the parties have agreed.


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

    (a) The Secretary will suspend or cancel the designation of an 
accrediting entity if the Secretary concludes that it is substantially 
out of compliance with the Convention, the IAA, the UAA, the 
regulations implementing the IAA and the UAA, other applicable laws, or 
the agreement with the Secretary. Complaints regarding the performance 
of the accrediting entity may be submitted to the Department of State, 
Bureau of Consular Affairs. The Secretary will consider complaints in 
determining whether an accrediting entity's designation should be 
suspended or canceled.
    (b) The Secretary will notify an accrediting entity in writing of 
any deficiencies in the accrediting entity's performance that could 
lead to the suspension or cancellation of its designation and will 
provide the accrediting entity with an opportunity to demonstrate that 
suspension or cancellation is unwarranted, in accordance with 
procedures established in the agreement entered into pursuant to Sec.  
96.9.
    (c) An accrediting entity may be considered substantially out of 
compliance under circumstances that include, but are not limited to:
    (1) Failing to act in a timely manner when presented with evidence 
that an accredited agency or approved person is

[[Page 57263]]

substantially out of compliance with the standards in subpart F of this 
part;
    (2) Accrediting or approving an agency or person whose performance 
results in intervention of the Secretary for the purpose of suspension, 
cancellation, or debarment;
    (3) Failing to perform its responsibilities fairly and objectively;
    (4) Violating prohibitions on conflicts of interest;
    (5) Failing to meet its reporting requirements;
    (6) Failing to protect information, including personally 
identifiable information, or documents that it receives in the course 
of performing its responsibilities; and
    (7) Failing to monitor frequently and carefully the compliance of 
accredited agencies and approved persons with the Convention, the IAA, 
the UAA, and the regulations implementing the IAA and the UAA, 
including the home study requirements of the Convention, section 
203(b)(1)(A)(ii) of the IAA (42 U.S.C. 14923(b)(1)(A)(ii)), and Sec.  
96.47.
    (d) An accrediting entity that is subject to a final action of 
suspension or cancellation may petition the United States District 
Court for the District of Columbia or the United States district court 
in the judicial district in which the accrediting entity is located to 
set aside the action as provided in section 204(d) of the IAA (42 
U.S.C. 14924(d)).


Sec.  96.11   [Reserved]

0
4. Revise Sec.  96.12 to read as follows:


Sec.  96.12   Authorized adoption service providers.

    (a) Except as provided in section 505(b) of the IAA (relating to 
transition cases) and section 2(c) of the UAA (relating to transition 
cases), an agency or person may not offer, provide, or facilitate the 
provision of any adoption service in connection with an intercountry 
adoption unless it is:
    (1) An accredited agency or an approved person;
    (2) A supervised provider; or
    (3) An exempted provider, if the exempted provider's home study or 
child background study will be reviewed and approved by an accredited 
agency pursuant to Sec.  96.47(c) or Sec.  96.53(b).
    (b) A public domestic authority may also offer, provide, or 
facilitate the provision of any such adoption service.
    (c) Neither conferral nor maintenance of accreditation or approval, 
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 and the UAA. Conferral and maintenance 
of accreditation or approval under this part establishes only that the 
accrediting entity has concluded, in accordance with the standards and 
procedures of this part, that the accredited agency or approved person 
provides 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 and the 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.

0
5. Revise subpart E to read as follows:
Subpart E--Evaluation of Applicants for Accreditation and Approval
Sec.
96.23 Scope.
96.24 Procedures for evaluating applicants for accreditation or 
approval.
96.25 Access to information and documents requested by the 
accrediting entity.
96.26 Protection of information and documents by the accrediting 
entity.
96.27 Substantive criteria for evaluating applicants for 
accreditation or approval.

Subpart E--Evaluation of Applicants for Accreditation and Approval


Sec.  96.23   Scope.

    The provisions in this subpart govern the evaluation of agencies 
and persons for accreditation or approval.


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

    (a) The accrediting entity must designate at least two evaluators 
to evaluate an agency or person for accreditation or approval. The 
accrediting entity's evaluators must have expertise in intercountry 
adoption, standards evaluation, finance or accounting, or have 
experience with the management or oversight of child welfare 
organizations and must also meet any additional qualifications required 
by the Secretary in the agreement with the accrediting entity.
    (b) To evaluate the agency's or person's eligibility for 
accreditation or approval, the accrediting entity must:
    (1) Review the agency's or person's written application and 
supporting documentation;
    (2) Verify the information provided by the agency or person by 
examining underlying documentation;
    (3) Consider any complaints received by the accrediting entity 
pursuant to subpart J of this part; and
    (4) Conduct site visit(s).
    (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 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 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 evaluators 
that participate in a site visit in light of factors such as:
    (1) The agency's or person's size;
    (2) The number of adoption cases it handles;
    (3) The number of sites the accrediting entity decides to visit; 
and
    (4) The number of individuals working at each site.
    (d) Before deciding whether to accredit an agency or approve a 
person, the accrediting entity may, in its discretion, advise the 
agency or person of any deficiencies that may hinder or prevent its 
accreditation or approval and defer a decision to allow the agency or 
person to correct the deficiencies.


Sec.  96.25   Access to information and documents requested by the 
accrediting entity.

    (a) The agency or person must give the accrediting entity access to 
information and documents, including adoption case files and 
proprietary information, that it requires or requests to evaluate an 
agency or person for accreditation or approval and to perform its 
oversight, enforcement, renewal, data collection, and other functions. 
The agency or person must also cooperate with the accrediting entity by 
making employees available for interviews upon request.
    (b) Accrediting entity review of adoption case files pursuant to 
paragraph (a) of this section shall be limited to Convention adoption 
case files and cases subject to the UAA, except that, in the case of 
first-time applicants for accreditation or approval, the accrediting 
entity may review adoption case files related to other non-

[[Page 57264]]

Convention cases for purposes of assessing the agency's or person's 
capacity to comply with record-keeping and data-management standards in 
subpart F of this part. The accrediting entity shall permit the agency 
or person to redact names and other information that identifies birth 
parent(s), prospective adoptive parent(s), and adoptee(s) from such 
non-Convention adoption case files not subject to the UAA prior to 
their inspection by the accrediting entity.
    (c) If an agency or person fails to provide requested documents or 
information, or to make employees available as requested, or engages in 
deliberate destruction of requested documentation or information, or 
provides false or misleading documents or information, 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.


Sec.  96.26   Protection of information and documents by the 
accrediting entity.

    (a) The accrediting entity must protect from unauthorized use and 
disclosure all documents and information about the agency or person it 
receives including, but not limited to, documents and proprietary 
information about the agency's or person's finances, management, and 
professional practices received in connection with the performance of 
its accreditation or approval, oversight, enforcement, renewal, data 
collection, or other functions under its agreement with the Secretary 
and this part.
    (b) The documents and information received may not be disclosed to 
the public and may be used only for the purpose of performing the 
accrediting entity's accreditation or approval functions, monitoring 
and oversight, and related tasks under its agreement with the Secretary 
and this part, or to provide information to the Secretary, the 
Complaint Registry, or an appropriate Federal, State, tribal, or local 
authority, including, but not limited to, a public domestic authority 
or local law enforcement authority unless:
    (1) Otherwise authorized by the agency or person in writing;
    (2) Otherwise required under Federal or State laws; or
    (3) Required pursuant to subpart M of this part.
    (c) Unless the names and other information that identifies the 
birth parent(s), prospective adoptive parent(s), and adoptee(s) are 
requested by the accrediting entity for an articulated reason, the 
agency or person may withhold from the accrediting entity such 
information and substitute individually assigned codes in the documents 
it provides. The accrediting entity must have appropriate safeguards to 
protect from unauthorized use and disclosure of any information in its 
files that identifies birth parent(s), prospective adoptive parent(s), 
and adoptee(s). The accrediting entity must ensure that its officers, 
employees, contractors, and evaluators who have access to information 
or documents provided by the agency or person have signed a non-
disclosure agreement reflecting the requirements of paragraphs (a) and 
(b) of this section.
    (d) The accrediting entity must maintain a complete and accurate 
record of all information it receives related to an agency or person, 
and the basis for the accrediting entity's decisions concerning the 
agency or person for a period of at least ten years, or longer if 
otherwise set forth in its agreement with the Secretary.


Sec.  96.27   Substantive criteria for evaluating applicants for 
accreditation or approval.

    (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.
    (b) When the agency or person makes its initial application for 
accreditation or approval, the accrediting entity may measure the 
capacity of the agency or person to achieve substantial compliance with 
the standards in subpart F of this part where relevant evidence of its 
actual performance is not yet available. Once the agency or person has 
been accredited or approved pursuant to this part, the accrediting 
entity must, for the purposes of monitoring, renewal, enforcement, and 
reapplication after adverse action, consider the agency's or person's 
actual performance in deciding whether the agency or person is in 
substantial compliance with the standards in subpart F of this part, 
unless the accrediting entity determines that it is still necessary to 
measure capacity because services have not yet been provided and thus 
adequate evidence of actual performance is not available.
    (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 determining whether to renew an 
agency's or person's accreditation or approval, 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.
    (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; 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, 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 must 
take the reasons underlying such actions into account when evaluating 
the agency or person for accreditation or approval, and may deny 
accreditation or approval 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 must take into account the 
reasons underlying the debarment when evaluating the agency or person 
for accreditation or approval, and may deny accreditation or approval 
or refuse to

[[Page 57265]]

renew accreditation or approval on the basis of the debarment.
    (g) 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 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 this subpart E and subpart F of this part should be 
construed to require a State to allow persons to provide adoption 
services if State law does not permit them to do so.


Sec.  96.28  [Reserved]

0
6. Revise subpart F to read as follows:
Subpart F--Standards for Intercountry Adoption Accreditation and 
Approval
Sec.
96.29 Scope.

Licensing, Compliance With Applicable Laws, and Corporate 
Governance

96.30 State licensing and compliance with all applicable laws.
96.31 Corporate structure.
96.32 Internal structure and oversight.

Financial and Risk Management

96.33 Budget, audit, insurance, and risk assessment requirements.
96.34 Compensation.

Ethical Practices and Responsibilities

96.35 Suitability of agencies and persons to provide adoption 
services.
96.36 Prohibition on child buying and inducement.

Professional Qualifications and Training for Employees

96.37 Education and experience requirements for social service 
personnel.
96.38 Training requirements for social service personnel.

Information Disclosure, Fee Practices, and Quality Control Policies 
and Practices

96.39 Information disclosure and quality control practices.
96.40 Fee policies and procedures.

Responding to Complaints and Records and Reports Management

96.41 Procedures for responding to complaints and improving service 
delivery.
96.42 Retention, preservation, and disclosure of adoption records.
96.43 Case tracking, data management, and reporting.

Service Planning and Delivery

96.44 Acting as primary provider.
96.45 Using supervised providers in the United States.
96.46 Using providers in foreign countries.

Standards for Cases in Which a Child Is Immigrating to the United 
States (Incoming Cases)

96.47 Preparation of home studies in incoming cases.
96.48 Preparation and training of prospective adoptive parent(s) in 
incoming cases.
96.49 Provision of medical and social information in incoming cases.
96.50 Placement and post-placement monitoring until final adoption 
in incoming cases.
96.51 Post-adoption services in incoming cases.
96.52 Performance of communication and coordination functions in 
incoming cases.

Standards for Convention Cases in Which a Child Is Emigrating From 
the United States (Outgoing Cases)

96.53 Background studies on the child and consents in outgoing 
Convention cases.
96.54 Placement standards in outgoing Convention cases.
96.55 Performance of Convention communication and coordination 
functions in outgoing Convention cases.
96.56 [Reserved]

Subpart F--Standards for Intercountry Adoption Accreditation and 
Approval


Sec.  96.29  Scope.

    The provisions in this subpart provide the standards for 
accrediting agencies and approving persons.

Licensing, Compliance with Applicable Laws, and Corporate Governance


Sec.  96.30  State licensing and compliance with all applicable laws.

    (a) The agency or person is properly licensed or otherwise 
authorized by State law to provide adoption services in at least one 
State.
    (b) The agency or person follows applicable State licensing and 
regulatory requirements in all jurisdictions in which it provides 
adoption services.
    (c) If it provides adoption services in a State in which it is not 
itself licensed or authorized to provide such services, the agency or 
person does so only:
    (1) Through agencies or persons that are licensed or authorized by 
State law to provide adoption services in that State and that are 
exempted providers or acting as supervised providers; or
    (2) Through public domestic authorities.
    (d) In the case of a person, the individual or for-profit entity is 
not prohibited by State law from providing adoption services in any 
State where it is providing adoption services, and does not provide 
adoption services in foreign countries that prohibit individuals or 
for-profit entities from providing adoption services.
    (e) The agency or person complies with applicable laws in all 
foreign countries in which it provides adoption services.


Sec.  96.31  Corporate structure.

    (a) The agency qualifies for nonprofit tax treatment under section 
501(c)(3) of the Internal Revenue Code of 1986, as amended, or 
qualifies for nonprofit status under the laws of any State.
    (b) The person is an individual or is a for-profit entity organized 
as a corporation, company, association, firm, partnership, society, or 
joint stock company, or other legal entity under the laws of any State.


Sec.  96.32  Internal structure and oversight.

    (a) The agency or person has (or, in the case of an individual, is) 
a chief executive officer or equivalent official who is qualified by 
education, adoption service experience, and management credentials to 
ensure effective use of resources and coordinated delivery of the 
services provided by the agency or person, and has authority and 
responsibility for management and oversight of the staff and any 
supervised providers in carrying out the adoption-related functions of 
the organization.
    (b) The agency or person has a board of directors or a similar 
governing body that establishes and approves its mission, policies, 
budget, and programs; provides leadership to secure the resources 
needed to support its programs; includes one or more individuals with 
experience in adoption, including but not limited to, adoptees, birth 
parents, prospective adoptive parent(s), and adoptive parents; and 
appoints and oversees the performance of its chief executive officer or 
equivalent official. This standard does not apply where the person is 
an individual practitioner.
    (c) The agency or person keeps permanent records of the meetings 
and deliberations of its governing body and of its major decisions 
affecting the delivery of adoption services.
    (d) The agency or person has in place procedures and standards, 
pursuant to Sec. Sec.  96.45 and 96.46, for the selection, monitoring, 
and oversight of supervised providers.
    (e) The agency or person discloses to the accrediting entity the 
following information:
    (1) Any other names by which the agency or person is or has been 
known, under either its current or any former form of organization, and 
the addresses

[[Page 57266]]

and phone numbers used when such names were used;
    (2) The name, address, and phone number of each current director, 
manager, and employee of the agency or person, and, for any such 
individual who previously served as a director, manager, or employee of 
another provider of adoption services, the name, address, and phone 
number of such other provider;
    (3) The name, address, and phone number of any entity it uses or 
intends to use as a supervised provider; and
    (4) The name, address, and phone number of all agencies or persons, 
non-profit organizations, or for-profit organizations that share with 
it any leadership, officers, board of directors, or family 
relationships, if such agency, person, or organization provides any 
service to, or receives any payment from, the agency or person.

Financial and Risk Management


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, and supervised 
providers.
    (b) The agency's or person's finances are subject to annual 
internal review and oversight and are subject to independent audits 
every four years. The agency or person submits copies of internal 
financial review reports for inspection by the accrediting entity each 
year.
    (c) The agency or person submits copies of each audit, as well as 
any accompanying management letter or qualified opinion letter, for 
inspection by the accrediting entity.
    (d) The agency or person meets the financial reporting requirements 
of Federal and State laws and regulations.
    (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 accredited agency or approved person 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 transfer 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) The agency or person assesses the risks it assumes, including 
by reviewing information on the availability of insurance coverage for 
intercountry adoption-related activities. 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.


Sec.  96.34  Compensation.

    (a) The agency or person does not compensate or offer to compensate 
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, supervised providers, individuals, and entities involved in 
an intercountry adoption 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 or entity 
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 not 
intended to influence or affect a particular adoption.
    (d) The fees, wages, or salaries paid to the directors, officers, 
employees, supervised providers, individuals, or entities 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 the country in which the services are provided and norms 
for compensation within the intercountry adoption community in that 
country, to the extent that such norms are known to the accrediting 
entity; the location, number, and qualifications of staff; workload 
requirements; budget; and size of the agency or person.
    (e) Any other compensation paid or offered 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.

Ethical Practices and Responsibilities


Sec.  96.35  Suitability of agencies and persons to provide adoption 
services.

    (a) The agency or person provides adoption services ethically and 
in accordance with the Convention's principles of:
    (1) Ensuring that intercountry adoptions take place in the best 
interests of children; and
    (2) Preventing the abduction, exploitation, sale, or trafficking of 
children.
    (b) In order to permit the accrediting entity to evaluate the 
suitability of an agency or person for accreditation or approval, 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:
    (1) Any instances in which the agency or person has lost the right 
to provide adoption services in any State or country, including the 
basis for such action(s);
    (2) Any instances in which the agency or person was debarred or 
otherwise denied the authority to provide adoption services in any 
State or country, including the basis and disposition of such 
action(s);
    (3) Any licensing suspensions for cause or other negative sanctions 
by oversight bodies against the agency or person, including the basis 
and disposition of such action(s);
    (4) For the prior ten-year period, any disciplinary action(s) 
against the agency or person by a licensing or accrediting body, 
including the basis and disposition of such action(s);
    (5) For the prior ten-year period, any written complaint(s) related 
to the

[[Page 57267]]

provision of adoption-related services, including the basis and 
disposition of such complaints, against the agency or person filed with 
any State or Federal or foreign regulatory body or court and of which 
the agency or person was notified;
    (6) For the prior ten-year period, any known past or pending 
investigation(s) by Federal authorities, public domestic authorities, 
or by foreign authorities, criminal charge(s), child abuse charge(s), 
or lawsuit(s) against the agency or person, related to the provision of 
child welfare or adoption-related services, and the basis and 
disposition of such action(s);
    (7) Any instances where the agency or person has been found guilty 
of any crime under Federal, State, or foreign law or has been found to 
have committed any civil or administrative violation involving 
financial irregularities under Federal, State, or foreign law;
    (8) For the prior five-year period, any instances where the agency 
or person has filed for bankruptcy; and
    (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.
    (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:
    (1) For the prior ten-year period, any conduct by any such 
individual related to the provision of adoption-related services that 
was subject to external disciplinary proceeding(s);
    (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;
    (3) The results of a State criminal background check and a child 
abuse clearance for any such individual in the United States in a 
senior management position or who works directly with parent(s) and/or 
children (unless such checks have been included in the State licensing 
process); and
    (4) Descriptions of any businesses or activities that are 
inconsistent with the principles of the Convention and that are known 
to have been or are currently carried out by current individual 
directors, officers, or employees of the agency or person.
    (d) In order to permit the accrediting entity to evaluate the 
suitability of a person who is an individual practitioner for approval, 
the individual:
    (1) Provides the results of a State criminal background check and a 
child abuse clearance to the accrediting entity;
    (2) If a lawyer, for every jurisdiction in which he or she has ever 
been admitted to the Bar, provides a certificate of good standing or an 
explanation of why he or she is not in good standing, accompanied by 
any relevant documentation, and immediately reports to the accrediting 
entity any disciplinary action considered by a State bar association, 
regardless of whether the action relates to intercountry adoption; and
    (3) If a social worker, for every jurisdiction in which he or she 
has been licensed, provides a certificate of good standing or an 
explanation of why he or she is not in good standing, accompanied by 
any relevant documentation.
    (e) In order to permit the accrediting entity to monitor the 
suitability of an agency or person, the agency or person must disclose 
any changes in the information required by this section within 30 
business days of becoming aware of the change.


Sec.  96.36  Prohibition on child buying and inducement.

    (a) The agency or person prohibits its employees and agents from 
giving money or other consideration, directly or indirectly, to a 
child's parent(s), other individual(s), or an entity as payment for the 
child or as an inducement to release the child. If permitted or 
required by the child's country of origin, an agency or person may 
remit reasonable payments for activities related to the adoption 
proceedings, pre-birth and birth medical costs, the care of the child, 
the care of the birth mother while pregnant and immediately following 
birth of the child, or the provision of child welfare and child 
protection services generally. Permitted or required contributions 
shall not be remitted as payment for the child or as an inducement to 
release the child.
    (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. In order to monitor 
compliance, the agency's or person's policies and procedures require 
its employees and supervised providers to retain a record of all 
payments or fees tendered in connection with an intercountry adoption 
and the purposes for which they were paid for as long as adoption 
records are kept in accordance with Sec.  96.42, and provide a copy 
thereof to the agency or person.

Professional Qualifications and Training for Employees


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

    (a) Appropriate qualifications and credentials. The agency or 
person only uses employees with appropriate qualifications and 
credentials to perform, in connection with an intercountry adoption, 
adoption-related social service functions that require the application 
of clinical skills and judgment (home studies, child background 
studies, counseling, parent preparation, post-placement, and other 
similar services).
    (b) State licensing, regulatory requirements. The agency's or 
person's employees meet any State licensing or regulatory requirements 
for the services they are providing.
    (c) Application of clinical skills and judgment, training, or 
experience. The agency's or person's executive director, the supervisor 
overseeing a case, or the social service employee providing adoption-
related social services that require the application of clinical skills 
and judgment (home studies, child background studies, counseling, 
parent preparation, post-placement, and other similar services) has 
training or experience in the professional delivery of intercountry 
adoption services.
    (d) Supervisors. The agency's or person's social work supervisors 
have prior experience in family and children's services, adoption, or 
intercountry adoption and either:
    (1) A master's degree from an accredited program of social work;
    (2) A master's degree (or doctorate) in a related human service 
field, including, but not limited to, psychology, psychiatry, 
psychiatric nursing, counseling, rehabilitation counseling, or pastoral 
counseling; or
    (3) In the case of a social work supervisor who was an incumbent at 
the time the Convention entered into force for the United States, the 
supervisor had significant skills and experience in intercountry 
adoption and had regular access for consultation purposes to an 
individual with the qualifications listed in paragraphs (d)(1) or 
(d)(2) of this section.
    (e) Non-supervisory employees. The agency's or person's non-
supervisory employees providing adoption-related social services that 
require the application of clinical skills and

[[Page 57268]]

judgment other than home studies or child background studies have 
either:
    (1) A master's degree from an accredited program of social work or 
in another human service field; or
    (2) A bachelor's degree from an accredited program of social work; 
or a combination of a bachelor's degree in any field and prior 
experience in family and children's services, adoption, or intercountry 
adoption; and
    (3) Are supervised by an employee of the agency or person who meets 
the requirements for supervisors in paragraph (d) of this section.
    (f) Home studies. The agency's or person's employees who conduct 
home studies:
    (1) Are authorized or licensed to complete a home study under the 
laws of the States in which they practice;
    (2) Meet the requirements for home study preparers in 8 CFR 
204.301; and
    (3) Are supervised by an employee of the agency or person who meets 
the requirements in paragraph (d) of this section.
    (g) Child background studies. The agency's or person's employees 
who prepare child background studies:
    (1) Are authorized or licensed to complete a child background study 
under the laws of the States in which they practice; and
    (2) Are supervised by an employee of the agency or person who meets 
the requirements in paragraph (d) of this section.


Sec.  96.38  Training requirements for social service personnel.

    (a) The agency or person provides newly hired employees who have 
adoption-related responsibilities involving the application of clinical 
skills and judgment (home studies, child background studies, counseling 
services, parent preparation, post-placement, and other similar 
services) with a comprehensive orientation to intercountry adoption 
that includes training on:
    (1) The requirements of the Convention, the IAA, the UAA, the 
regulations implementing the IAA and the UAA, and other applicable 
Federal regulations;
    (2) The INA provisions applicable to the immigration of children 
described in INA 101(b)(1)(F) and (G) and the applicable regulations 
contained in 8 CFR 204.3 and 204.300 through 204.314;
    (3) The adoption laws of any foreign country where the agency or 
person provides adoption services;
    (4) Relevant State laws;
    (5) Ethical considerations in intercountry adoption and 
prohibitions on child-buying;
    (6) The agency's or person's goals, ethical and professional 
guidelines, organizational lines of accountability, policies, and 
procedures; and
    (7) The cultural diversity of the population(s) served by the 
agency or person.
    (b) In addition to the orientation training required under 
paragraph (a) of this section, the agency or person provides initial 
training to newly hired or current employees whose responsibilities 
include providing adoption-related social services that involve the 
application of clinical skills and judgment (home studies, child 
background studies, counseling services, parent preparation, post-
placement, and other similar services) that addresses:
    (1) The factors in the countries of origin that lead to children 
needing adoptive families;
    (2) Feelings of separation, grief, and loss experienced by the 
child with respect to the family of origin;
    (3) Adverse childhood experiences, and attachment and post-
traumatic stress disorders;
    (4) Trauma-informed parenting;
    (5) Physical, psychological, cognitive, and emotional issues facing 
children who have experienced trauma, abuse, including sexual abuse, or 
neglect, and/or whose parents' parental rights have been terminated;
    (6) The long-term impact of institutionalization on child 
development;
    (7) Outcomes for children placed for adoption internationally and 
the benefits of permanent family placements over other forms of 
government care;
    (8) The impact of adoption on other children already in the home;
    (9) How adoptive parents can support children who experience racism 
and discrimination;
    (10) How adoptive parents can support and advocate for children 
discriminated against due to physical, cognitive, and other 
disabilities;
    (11) The most frequent medical, and psychological problems 
experienced by children from the countries of origin served by the 
agency or person, and the possibility that such problems may not be 
reflected in the medical reports transmitted to prospective adoptive 
parents;
    (12) The process of developing emotional ties to an adoptive 
family;
    (13) Acculturation and assimilation issues, including those arising 
from factors such as race, ethnicity, religion, and culture and the 
impact of having been adopted internationally; and
    (14) Child, adolescent, and adult development as affected by 
adoption.
    (c) The agency or person ensures that employees who provide 
adoption-related social services that involve the application of 
clinical skills and judgment (home studies, child background studies, 
counseling services, parent preparation, post-placement, and other 
similar services) also receive, in addition to the orientation and 
initial training described in paragraphs (a) and (b) of this section, 
no less than 30 hours of training every two years, or more if required 
by State law, on current and emerging adoption practice issues through 
participation in seminars, conferences, documented distance learning 
courses, and other similar programs. Continuing education hours 
required under State law may count toward the 30 hours of training as 
long as the training is related to current and emerging adoption 
practice issues.
    (d) The agency or person may exempt newly hired employees from 
elements of the orientation and initial training required in paragraphs 
(a) and (b) of this section if the newly hired individual was, within 
the previous two years, employed by an accredited or approved adoption 
service provider where they had received orientation training pursuant 
to paragraphs (a) and (b) of this section and Sec. Sec.  96.39 and 
96.40.

Information Disclosure, Fee Practices, and Quality Control Policies and 
Practices


Sec.  96.39  Information disclosure and quality control practices.

    (a) The agency or person fully discloses in writing to the general 
public upon request and to prospective client(s) upon initial contact:
    (1) Its adoption service policies and practices, including general 
eligibility criteria and fees;
    (2) The supervised 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; and
    (3) A sample written adoption services contract substantially like 
the one that the prospective client(s) will be expected to sign should 
they proceed.
    (b) The agency or person discloses to client(s) and prospective 
client(s) that the following information is available upon request and 
makes such information available when requested:
    (1) The number of its adoption placements per year for the prior 
three calendar years, and the number and percentage of those placements 
that remain intact, are disrupted, or have been dissolved as of the 
time the information is provided;

[[Page 57269]]

    (2) The number of parents who apply to adopt on a yearly basis, 
based on data for the prior three calendar years; and
    (3) The number of children eligible for adoption and awaiting an 
adoptive placement referral via the agency or person.
    (c) The agency or person does not give preferential treatment to 
its board members, contributors, volunteers, employees, agents, 
consultants, or independent contractors with respect to the placement 
of children for adoption and has a written policy to this effect.
    (d) The agency or person requires a client to sign a waiver of 
liability as part of the adoption service contract only where that 
waiver complies with applicable State law and these regulations. Any 
waiver required is limited and specific, based on risks that have been 
discussed and explained to the client in the adoption services 
contract.
    (e) The agency or person cooperates with reviews, inspections, and 
audits by the accrediting entity or the Secretary.
    (f) The agency or person uses the internet in the placement of 
individual children eligible for adoption only where:
    (1) Such use is not prohibited by applicable State or Federal law 
or by the laws of the child's country of origin;
    (2) Such use is subject to controls to avoid misuse and links to 
any sites that reflect practices that involve the sale, abduction, 
exploitation, or trafficking of children;
    (3) Such use, if it includes photographs, is designed to identify 
children either who are currently waiting for adoption or who have 
already been adopted or placed for adoption (and who are clearly so 
identified); and
    (4) Such use does not serve as a substitute for the direct 
provision of adoption services, including services to the child, the 
prospective adoptive parent(s), and/or the birth parent(s).


Sec.  96.40  Fee policies and procedures.

    (a) The agency or person provides to all applicants, prior to 
application, a written schedule of expected total fees and estimated 
expenses and an explanation of the conditions under which fees or 
expenses may be charged, waived, reduced, or refunded and when and how 
the fees and expenses must be paid.
    (b) Before providing any adoption service to prospective adoptive 
parent(s), the agency or person itemizes and discloses in writing the 
following information for each separate category of fees and estimated 
expenses that the prospective adoptive parent(s) will be charged in 
connection with an intercountry adoption:
    (1) Home Study. The expected total fees and estimated expenses for 
home study preparation 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 
approved as required under Sec.  96.47;
    (2) Adoption expenses in the United States. The expected total fees 
and estimated expenses for all adoption services other than the home 
study that will be provided in the United States. This category 
includes, but is not limited to, personnel costs, administrative 
overhead, operational costs, training and education, communications and 
publications costs, and any other costs related to providing adoption 
services in the United States;
    (3) Foreign Country Program Expenses. The expected total fees and 
estimated expenses for all adoption services that will be provided in 
the child's country of origin. This category includes, but is not 
limited to, costs for personnel, administrative overhead, training, 
education, legal services, and communications, and any other costs 
related to providing adoption services, in the child's Convention 
country;
    (4) Care of the Child. The expected total fees and estimated 
expenses charged to prospective adoptive parent(s) for the care of the 
child in the country of origin prior to adoption, including, but not 
limited to, costs for food, clothing, shelter and medical care; foster 
care services; orphanage care; and any other services provided directly 
to the child;
    (5) Translation and document expenses. The expected total 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, either in the 
United States or in the child's country of origin, 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 notarizations and certifications;
    (6) Contributions. 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 
child's country of origin country or in the United States, along with 
an explanation of the intended use of the transaction and the manner in 
which the contribution will be recorded and accounted for; and
    (7) Post-placement and post-adoption reports. The expected total 
fees and estimated expenses for any post-placement or post-adoption 
reports that the agency or person or parent(s) must prepare in light of 
any requirements of the expected country of origin.
    (c) If the following fees and estimated expenses were not disclosed 
as part of the categories identified in paragraph (b) of this section, 
the agency or person itemizes and discloses in writing any:
    (1) Third party fees. The expected total fees and estimated 
expenses for services that the prospective adoptive parent(s) will be 
responsible to pay directly to a third party. Such third party fees 
include, but are not limited to, fees to competent authorities for 
services rendered or Central Authority processing fees; and
    (2) Travel and accommodation expenses. The expected total fees and 
estimated expenses for any travel, transportation, and accommodation 
services arranged by the agency or person for the prospective adoptive 
parent(s).
    (d) The agency or person also specifies in its adoption services 
contract when and how funds advanced to cover fees or expenses will be 
refunded if adoption services are not provided.
    (e) When the agency or person uses part of its fees to provide 
special services, such as cultural programs for adoptee(s), 
scholarships or other services, it discloses this policy to the 
prospective adoptive parent(s) in advance of providing any adoption 
services and gives the prospective adoptive parent(s) a general 
description of the programs supported by such funds.
    (f) The agency or person has mechanisms in place for transferring 
funds to foreign countries when the financial institutions of the 
foreign country so permit and for obtaining written receipts for such 
transfers, so that direct cash transactions by the prospective adoptive 
parent(s) to pay for adoption services provided in the Convention 
country are minimized or unnecessary.
    (g) 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 in the foreign

[[Page 57270]]

country, the agency or person charges 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 $1,000 for which 
the agency or person will hold the prospective adoptive parent(s) 
responsible or gives the prospective adoptive parent(s) the opportunity 
to waive the notice consent requirement in advance. If the prospective 
adoptive parent(s) has the opportunity to waive the notice and consent 
requirement in advance, this policy is reflected in the written 
policies and procedures of the agency or person; 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.
    (h) The agency or person returns any funds to which the prospective 
adoptive parent(s) may be entitled within 60 days of the completion of 
the delivery of services.

Responding to Complaints and Records and Reports Management


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

    (a) The agency or person has written complaint policies and 
procedures that incorporate the standards in paragraphs (b) through (h) 
of this section and provides a copy of such policies and procedures, 
including contact information for the Complaint Registry, to client(s) 
at the time the adoption services contract is signed.
    (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 dated written or electronic (including by email or 
facsimile) complaints about any of the services or activities of the 
agency or person (including its use of supervised 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 under 
subpart J of this part and the accrediting entity's policies and 
procedures if they are dissatisfied with the agency's or person's 
response to their complaint. All complaints must include the name of 
the complainant.
    (c) The agency or person responds in writing to complaints received 
pursuant to paragraph (b) of this section within 30 days of receipt and 
provides expedited review of such complaints that are time-sensitive or 
that involve allegations of fraud.
    (d) The agency or person maintains a written record of each 
complaint received pursuant to paragraph (b) of this section and the 
steps taken to investigate and respond to it and makes this record 
available to the accrediting entity or the Secretary upon request.
    (e) The agency or person does not take any action to discourage a 
client or prospective client from, or retaliate against a client or 
prospective client for making a complaint; expressing a grievance; 
providing information in writing or interviews to an accrediting entity 
on the agency's or person's performance; or questioning the conduct of 
or expressing an opinion about the performance of an agency or person.
    (f) The agency or person provides to the accrediting entity and the 
Secretary, on a semi-annual basis, a summary of all complaints received 
pursuant to paragraph (b) of this section during the preceding six 
months (including the number of complaints received and how each 
complaint was resolved) and an assessment of any discernible patterns 
in complaints received against the agency or person pursuant to 
paragraph (b) of this section, along with information about what 
systemic changes, if any, were made or are planned by the agency or 
person in response to such patterns.
    (g) The agency or person provides any information about complaints 
received pursuant to paragraph (b) of this section as may be requested 
by the accrediting entity or the Secretary.
    (h) The agency or person has a quality improvement program 
appropriate to its size and circumstances through which it makes 
systematic efforts to improve its adoption services as needed. The 
agency or person uses quality improvement methods such as reviewing 
complaint data, using client satisfaction surveys, or comparing the 
agency's or person's practices and performance against the data 
contained in the Secretary's annual reports to Congress on intercountry 
adoptions.


Sec.  96.42  Retention, preservation, and disclosure of adoption 
records.

    (a) The agency or person retains or archives adoption records in a 
safe, secure, and retrievable manner for the period of time required by 
applicable State law.
    (b) The agency or person makes readily available to the adoptee and 
the adoptive parent(s) of minor children upon request all information 
in its custody about the adoptee's health history or background, to the 
extent permitted by State law.
    (c) The agency or person ensures that personal data gathered or 
transmitted in connection with an adoption is used only for the 
purposes for which the information was gathered and safeguards 
sensitive individual information.
    (d) The agency or person has a plan that is consistent with the 
provisions of this section, the plan required under Sec.  96.33, and 
applicable State law for transferring custody of adoption records that 
are subject to retention or archival requirements to an appropriate 
custodian, and ensuring the accessibility of those adoption records, in 
the event that the agency or person ceases to provide or is no longer 
permitted to provide adoption services in intercountry adoption cases.
    (e) The agency or person notifies the accrediting entity and the 
Secretary in writing within 30 days of the time it ceases to provide or 
is no longer permitted to provide adoption services and provides 
information about the transfer of its adoption records.


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

    (a) When acting as the primary provider, the agency or person 
maintains all the data required in this section in a format approved by 
the accrediting entity and provides it to the accrediting entity on an 
annual basis.
    (b) When acting as the primary provider, the agency or person 
routinely generates and maintains reports as follows:
    (1) For cases involving children immigrating to the United States, 
information and reports on the total number of Convention and non-
Convention adoptions undertaken by the agency or person each year and, 
for each case:
    (i) The foreign country from which the child emigrated;
    (ii) The State to which the child immigrated;
    (iii) The State or foreign country in which the adoption was 
finalized;
    (iv) The age of the child; and
    (v) The date of the child's placement for adoption.
    (2) For cases involving children emigrating from the United States, 
information and reports on the total number of Convention and non-
Convention adoptions undertaken by the agency or person each year and, 
for each case:
    (i) The State from which the child emigrated;
    (ii) The foreign country to which the child immigrated;

[[Page 57271]]

    (iii) The State or foreign country in which the adoption was 
finalized;
    (iv) The age of the child; and
    (v) The date of the child's placement for adoption.
    (3) For each disrupted placement involving an intercountry 
adoption, information and reports about the disruption, including 
information on:
    (i) The foreign country from which the child emigrated;
    (ii) The State to which the child immigrated;
    (iii) The age of the child;
    (iv) The date of the child's placement for adoption;
    (v) 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;
    (vi) The names of the agencies or persons that handled the 
placement for adoption; and
    (vii) The plans for the child;
    (4) Wherever possible, for each dissolution of an intercountry 
adoption, information and reports on the dissolution, including 
information on:
    (i) The foreign country from which the child emigrated;
    (ii) The State to which the child immigrated;
    (iii) The age of the child;
    (iv) The date of the child's placement for adoption;
    (v) The reason(s) for and resolution(s) of the dissolution of the 
adoption, to the extent known by the agency or person;
    (vi) The names of the agencies or persons that handled the 
placement for adoption; and
    (vii) The plans for the child.
    (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 court, 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.
    (c) If the agency or person provides adoption services in cases not 
subject to the Convention that involve a child emigrating from the 
United States for the purpose of adoption or after an adoption has been 
finalized, it provides such information as required by the Secretary 
directly to the Secretary and demonstrates to the accrediting entity 
that it has provided this information.
    (d) The agency or person provides any of the information described 
in paragraphs (a) through (c) of this section to the accrediting entity 
or the Secretary within thirty days of request.

Service Planning and Delivery


Sec.  96.44  Acting as primary provider.

    (a) When required by Sec.  96.14(a), the agency or person acts as 
primary provider and adheres to the provisions in Sec.  96.14(b) 
through (e). When acting as the primary provider, the agency or person 
develops and implements a service plan for providing all adoption 
services and provides all such services, either directly or through 
arrangements with supervised providers, exempted providers, public 
domestic authorities, competent authorities, Central Authorities, 
public foreign authorities, or, to the extent permitted by Sec.  
96.14(c), other foreign providers (agencies, persons, or other non-
governmental entities).
    (b) The agency or person has an organizational structure, financial 
and personnel resources, and policies and procedures in place that 
demonstrate that the agency or person is capable of acting as a primary 
provider in any intercountry adoption case and, when acting as 0the 
primary provider, provides appropriate supervision to supervised 
providers, and verifies the work of other foreign providers in 
accordance with Sec. Sec.  96.45 and 96.46.


Sec.  96.45  Using supervised providers in the United States.

    (a) The agency or person, when acting as the primary provider and 
using supervised providers in the United States to provide adoption 
services, ensures that each such supervised provider:
    (1) Is in compliance with applicable State licensing and regulatory 
requirements in all jurisdictions in which it provides adoption 
services;
    (2) In providing any adoption service, complies with the relevant 
section of the Convention, the IAA, the UAA, and regulations 
implementing the IAA and the UAA for the particular adoption service 
being provided;
    (3) Does not engage in practices inconsistent with the Convention's 
principles of furthering the best interests of the child and preventing 
the sale, abduction, exploitation, or trafficking of children; and
    (4) Before entering into an agreement with the primary provider for 
the provision of adoption services, discloses to the primary provider 
the suitability information listed in Sec.  96.35.
    (b) The agency or person, when acting as the primary provider and 
using supervised providers in the United States to provide adoption 
services, ensures that each such supervised provider operates under a 
written agreement with the primary provider that:
    (1) Identifies clearly the adoption service(s) to be provided by 
the supervised provider and requires that the service(s) be provided in 
accordance with the applicable service standard(s) for accreditation 
and approval (for example: home study (Sec.  96.47); parent training 
(Sec.  96.48); child background studies and consent (Sec.  96.53));
    (2) Requires the supervised provider to comply with the following 
standards regardless of the type of adoption services it is providing: 
Sec.  96.36 (prohibition on child buying), Sec.  96.34 (compensation), 
Sec.  96.38 (employee training), Sec.  96.39(d) (waivers of liability), 
and Sec.  96.41(b) through (e) (complaints);
    (3) Identifies specifically the lines of authority between the 
primary provider and the supervised provider, the employee of the 
primary provider who will be responsible for supervision, and the 
employee of the supervised provider who will be responsible for 
ensuring compliance with the written agreement;
    (4) States clearly the compensation arrangement for the services to 
be provided and the fees and expenses to be charged by the supervised 
provider;
    (5) Specifies whether the supervised provider's fees and expenses 
will be billed to and paid by the client(s) directly or billed to the 
client through the primary provider;
    (6) Provides that, if billing the client(s) directly for its 
service, the supervised provider will give the client(s) an itemized 
bill of all fees and expenses to be paid, with a written explanation of 
how and when such fees and expenses will be refunded if the service is 
not completed, and will return any funds collected to which the 
client(s) may be entitled within 60 days of the completion of the 
delivery of services;
    (7) Requires the supervised provider to meet the same personnel 
qualifications as accredited agencies and approved persons, as provided 
for in Sec.  96.37, except that, for purposes of Sec.  96.37(e)(3), 
(f)(3), and (g)(2), the work of the employee must be supervised by an 
employee of an accredited agency or approved person;
    (8) Requires the supervised provider to limit the use of and 
safeguard personal data gathered or transmitted in connection with an 
adoption, as provided for in Sec.  96.42;

[[Page 57272]]

    (9) Requires the supervised provider to respond within a reasonable 
period of time to any request for information from the primary 
provider, the Secretary, or an accrediting entity with jurisdiction 
over the primary provider;
    (10) Requires the supervised provider to provide the primary 
provider on a timely basis any data that is necessary to comply with 
the primary provider's reporting requirements;
    (11) Requires the supervised provider to disclose promptly to the 
primary provider any changes in the suitability information required by 
Sec.  96.35; and
    (12) Permits suspension or termination of the agreement on 
reasonable notice if the primary provider has grounds to believe that 
the supervised provider is not in compliance with the agreement or the 
requirements of this section.


Sec.  96.46  Using providers in foreign countries.

    (a) The agency or person, when acting as the primary provider and 
using foreign supervised providers to provide adoption services in 
foreign countries, ensures that each such foreign supervised provider:
    (1) Is in compliance with the laws of the foreign country in which 
it operates;
    (2) Does not engage in practices inconsistent with the Convention's 
principles of furthering the best interests of the child and preventing 
the sale, abduction, exploitation, or trafficking of children;
    (3) Before entering into an agreement with the primary provider for 
the provision of adoption services, discloses to the primary provider 
the suitability information listed in Sec.  96.35, taking into account 
the authorities in the foreign country that are analogous to the 
authorities identified in that section;
    (4) Does not have a pattern of licensing suspensions or other 
sanctions and has not lost the right to provide adoption services in 
any jurisdiction for reasons germane to the Convention or the 
Convention's principles of furthering the best interests of the child 
and preventing the abduction, exploitation, sale, or trafficking of 
children; and
    (5) Is accredited in the foreign country in which it operates, if 
such accreditation is required by the laws of that foreign country to 
perform the adoption services it is providing.
    (b) The agency or person, when acting as the primary provider and 
using foreign supervised providers to provide adoption services in 
foreign countries, ensures that each such foreign supervised provider 
operates under a written agreement with the primary provider that:
    (1) Identifies clearly the adoption service(s) to be provided by 
the foreign supervised provider;
    (2) Requires the foreign supervised provider, if responsible for 
obtaining medical or social information on the child, to comply with 
the standards in Sec.  96.49(d) through (j);
    (3) Requires the foreign supervised provider to adhere to the 
standard in Sec.  96.36(a) prohibiting child buying and to have written 
policies and procedures in place reflecting the prohibitions in Sec.  
96.36(a) and to reinforce them in training programs for its employees 
and agents;
    (4) Requires the foreign supervised provider to compensate its 
directors, officers, and employees who provide intercountry adoption 
services 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;
    (5) Identifies specifically the lines of authority between the 
primary provider and the foreign supervised provider, the employee of 
the primary provider who will be responsible for supervision, and the 
employee of the supervised provider who will be responsible for 
ensuring compliance with the written agreement;
    (6) States clearly the compensation arrangement for the services to 
be provided and the fees and expenses to be charged by the foreign 
supervised provider;
    (7) Specifies that the foreign supervised provider's fees and 
expenses will be billed to and paid by the client(s) through the 
primary provider. The primary provider provides a written explanation 
of how and when such fees and expenses will be refunded if the service 
is not provided or completed, and will return any funds collected to 
which the client(s) may be entitled within 60 days of the completion of 
the delivery of services;
    (8) Requires the foreign supervised provider to respond within a 
reasonable period of time to any request for information from the 
primary provider, the Secretary, or the accrediting entity that issued 
the primary provider's accreditation or approval;
    (9) Requires the foreign supervised provider to provide the primary 
provider on a timely basis any data that is necessary to comply with 
the primary provider's reporting requirements;
    (10) Requires the foreign supervised provider to disclose promptly 
to the primary provider any changes in the suitability information 
required by Sec.  96.35; and
    (11) Permits suspension or termination of the agreement on 
reasonable notice if the primary provider has grounds to believe that 
the foreign supervised provider is not in compliance with the agreement 
or the requirements of this section.
    (c) The agency or person, when acting as the primary provider and, 
in accordance with Sec.  96.14, using foreign providers that are not 
under its supervision, verifies, through review of the relevant 
documentation and other appropriate steps, that:
    (1) Any necessary consent to termination of parental rights or to 
adoption obtained by the foreign provider was obtained in accordance 
with applicable foreign law and 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 foreign 
law and 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 case) 
performed by the foreign provider was performed in accordance with 
applicable foreign law and Article 15 of the Convention.

Standards for Cases in Which a Child Is Immigrating to the United 
States (Incoming Cases)


Sec.  96.47  Preparation of home studies in incoming cases.

    (a) The agency or person ensures that a home study on the 
prospective adoptive parent(s) (which for purposes of this section 
includes the initial report and any supplemental update(s) submitted to 
DHS) is completed that includes the following:
    (1) Information about the identity, eligibility and suitability of 
the prospective adoptive parent(s) to adopt, background, family and 
medical history, social environment, reasons for adoption, ability to 
undertake an intercountry adoption, and the characteristics of the 
children for whom the prospective adoptive parent(s) would be qualified 
to care (specifying in particular whether they are willing and able to 
care for a child with special needs);
    (2) A determination of the eligibility and suitability of the 
prospective adoptive parent(s) to adopt;
    (3) A statement describing the counseling, preparation, and 
training provided to the prospective adoptive parent(s);
    (4) The results of a criminal background check on the prospective

[[Page 57273]]

adoptive parent(s) and any other individual for whom a check is 
required by 8 CFR 204.311;
    (5) A full and complete statement of all facts relevant to the 
eligibility and suitability of the prospective adoptive parent(s) to 
adopt a child under any specific requirements identified to the 
Secretary by the Central Authority of the child's country of origin; 
and
    (6) A statement in each copy of the home study that it is a true 
and accurate copy of the home study that was provided to the 
prospective adoptive parent(s) or DHS.
    (b) The agency or person ensures that the home study is performed 
in accordance with 8 CFR 204.311 and any applicable State law.
    (c) Where the home study is not performed in the first instance by 
an accredited agency, the agency or person ensures that the home study 
is reviewed and approved in writing by an accredited agency. The 
written approval must include a determination that the home study:
    (1) Includes all of the information required by paragraph (a) of 
this section and is performed in accordance with 8 CFR 204.311, and 
applicable State law; and
    (2) Was performed by an individual who meets the requirements in 
Sec.  96.37(f), or, if the individual is an exempted provider, ensures 
that the individual meets the requirements for home study providers 
established by 8 CFR 204.301.
    (d) The agency or person takes all appropriate measures to ensure 
the timely transmission of the same home study that was provided to the 
prospective adoptive parent(s) or to DHS to the Central Authority of 
the child's country of origin (or to an alternative authority 
designated by that Central Authority).
    (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 and primary provider, of its withdrawal of its 
recommendation and/or approval and the reasons for its withdrawal, in 
writing, within 5 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 5 
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); and
    (3) Maintain written records of the withdrawal of its 
recommendation and/or approval, the step(s) taken to reach such 
decision, and the reasons for the withdrawal.


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

    (a) The agency or person provides prospective adoptive parent(s) 
with at least ten hours (independent of the home study) of preparation 
and training, as described in paragraphs (b) and (c) of this section, 
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.
    (b) The training provided by the agency or person addresses 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 on children of malnutrition, relevant environmental 
toxins, maternal substance abuse, and of any other known genetic, 
health, emotional, and developmental risk factors associated with 
children from the expected country of origin;
    (3) Information about the impact on a child of leaving familiar 
ties and surroundings, as appropriate to the expected age of the child;
    (4) Data on institutionalized children and the impact of 
institutionalization on children, 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;
    (5) Information on 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;
    (6) Information on the laws and adoption processes of the expected 
country of origin, including foreseeable delays and impediments to 
finalization of an adoption;
    (7) Information on the long-term implications for a family that has 
become multicultural through intercountry adoption; and
    (8) An explanation of any reporting requirements associated with 
intercountry adoptions, including any post-placement or post-adoption 
reports required by the expected country of origin.
    (c) The agency or person also provides the prospective adoptive 
parent(s) with training that allows them to be as fully prepared as 
possible for the adoption of a particular child. This includes 
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.
    (d) The agency or person provides such training through appropriate 
methods, including:
    (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;
    (4) Video, computer-assisted, or distance learning methods using 
standardized curricula; or
    (5) In cases where training cannot otherwise be provided, an 
extended home study process, with a system for evaluating the 
thoroughness with which the topics have been covered.
    (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 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; and seeking appropriate help when 
needed.
    (g) The agency or person exempts prospective adoptive parent(s) 
from all or part of the training and preparation that would normally be 
required for a specific adoption only when the agency or person 
determines that the

[[Page 57274]]

prospective adoptive parent(s) have received adequate prior training or 
have prior experience as parent(s) of children adopted from abroad.
    (h) The agency or person records the nature and extent of the 
training and preparation provided to the prospective adoptive parent(s) 
in the adoption record.


Sec.  96.49  Provision of medical and social information in incoming 
cases.

    (a) The agency or person provides a copy of the child's medical 
records (including, to the fullest extent practicable, a correct and 
complete English-language translation of such records) to the 
prospective adoptive parent(s) as early as possible, but no later than 
two weeks before either the adoption or placement for adoption, or the 
date on which the prospective adoptive parent(s) travel to the foreign 
country to complete all procedures in such country relating to the 
adoption or placement for adoption, whichever is earlier.
    (b) Where any medical record provided pursuant to paragraph (a) of 
this section is a summary or compilation of other medical records, the 
agency or person includes those underlying medical records in the 
medical records provided pursuant to paragraph (a) of this section if 
they are available.
    (c) The agency or person provides the prospective adoptive 
parent(s) with any untranslated medical reports or video or other 
reports and provides an opportunity for the client(s) to arrange for 
their own translation of the records, including a translation into a 
language other than English, if needed.
    (d) The agency or person itself uses reasonable efforts, or 
requires its supervised provider in the child's country of origin who 
is responsible for obtaining medical information about the child on 
behalf of the agency or person to use reasonable efforts, to obtain 
available information, including in particular:
    (1) The date that the foreign country or other child welfare 
authority assumed custody of the child and the child's condition at 
that time;
    (2) History of any significant illnesses, hospitalizations, special 
needs, and changes in the child's condition since the foreign country 
or other child welfare authority assumed custody of the child;
    (3) Growth data, including prenatal and birth history, and 
developmental status over time and current developmental data at the 
time of the child's referral for adoption; and
    (4) Specific information on the known health risks in the specific 
region or country where the child resides.
    (e) When the agency or person provides medical information, other 
than the information provided by public foreign authorities, to the 
prospective adoptive parent(s) from an examination by a physician or 
from an observation of the child by someone who is not a physician, the 
agency or person uses reasonable efforts to include the following:
    (1) The name and credentials of the physician who performed the 
examination or the individual who observed the child;
    (2) The date of the examination or observation; how the report's 
information was retained and verified; and if anyone directly 
responsible for the child's care has reviewed the report;
    (3) If the medical information includes references, descriptions, 
or observations made by any individual other than the physician who 
performed the examination or the individual who performed the 
observation, the identity of that individual, the individual's 
training, and information on what data and perceptions the individual 
used to draw his or her conclusions;
    (4) A review of hospitalizations, significant illnesses, and other 
significant medical events, and the reasons for them;
    (5) Information about the full range of any tests performed on the 
child, including tests addressing known risk factors in the child's 
country of origin; and
    (6) Current health information.
    (f) The agency or person itself uses reasonable efforts, or 
requires its supervised provider in the child's country of origin who 
is responsible for obtaining social information about the child on 
behalf of the agency or person to use reasonable efforts, to obtain 
available information, including in particular:
    (1) Information about the child's birth family and prenatal history 
and cultural, racial, religious, ethnic, and linguistic background;
    (2) Information about all of the child's past and current 
placements prior to adoption, including, but not limited to any social 
work or court reports on the child and any information on who assumed 
custody and provided care for the child; and
    (3) Information about any birth siblings whose existence is known 
to the agency or person, or its supervised provider, including 
information about such siblings' whereabouts.
    (g) Where any of the information listed in paragraphs (d), (e), and 
(f) of this section cannot be obtained, the agency or person documents 
in the adoption record the efforts made to obtain the information and 
why it was not obtainable. The agency or person continues to use 
reasonable efforts to secure those medical or social records that could 
not be obtained up until the adoption is finalized.
    (h) Where available, the agency or person provides information for 
contacting the examining physician or the individual who made the 
observations to any physician engaged by the prospective adoptive 
parent(s), upon request.
    (i) The agency or person ensures that any video and photographs of 
the child taken by the agency or person (including by their supervised 
providers) are identified by the date on which the video or photograph 
was recorded or taken and that they were made in compliance with the 
laws in the country where recorded or taken.
    (j) The agency or person does not withhold from or misrepresent to 
the prospective adoptive parent(s) any available medical, social, or 
other pertinent information concerning the child.
    (k) The agency or person does not withdraw a referral until the 
prospective adoptive parent(s) have had two weeks (unless extenuating 
circumstances involving the child's best interests require a more 
expedited decision) to consider the needs of the child and their 
ability to meet those needs, and to obtain physician review of medical 
information and other descriptive information, including video of the 
child if available.


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

    (a) The agency or person takes all appropriate measures to ensure 
that the transfer of the child takes place in secure and appropriate 
circumstances, with properly trained and qualified escorts, if used, 
and, if possible, in the company of the prospective adoptive parent(s).
    (b) In the post-placement phase, the agency or person monitors and 
supervises the child's placement to ensure that the placement remains 
in the best interests of the child, and ensures that at least the 
number of home visits required by State law or by the child's country 
of origin are performed, whichever is greater.
    (c) When a placement for adoption is in crisis in the post-
placement phase, the agency or person makes an effort to provide or 
arrange for counseling by an individual with appropriate skills to

[[Page 57275]]

assist the family in dealing with the problems that have arisen.
    (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.
    (e) The agency or person acts promptly and in accord with any 
applicable legal requirements to remove the child when the placement 
may no longer be in the child's best interests, to provide temporary 
care, to find an eventual adoptive placement for the child, and, in 
consultation with the Secretary, to inform the Central Authority of the 
child's country of origin about any new prospective adoptive parent(s).
    (1) In all cases where removal of a child from a placement is 
considered, the agency or person considers the child's views when 
appropriate in light of the child's age and maturity and, when required 
by State law, obtains the consent of the child prior to removal.
    (2) The agency or person does not return from the United States a 
child placed for adoption in the United States unless the Central 
Authority of the country of origin and the Secretary have approved the 
return in writing.
    (f) The agency or person includes in the adoption services contract 
with the prospective adoptive parent(s) a plan describing the agency's 
or person's responsibilities if a placement for adoption is disrupted. 
This plan addresses:
    (1) Who will have legal and financial responsibility for transfer 
of custody in an emergency or in the case of impending disruption and 
for the care of the child;
    (2) If the disruption takes place after the child has arrived in 
the United States, under what circumstances the child will, as a last 
resort, be returned to the child's country of origin, if that is 
determined to be in the child's best interests;
    (3) How the child's wishes, age, length of time in the United 
States, and other pertinent factors will be taken into account; and
    (4) How the Central Authority of the child's country of origin and 
the Secretary will be notified.
    (g) The agency or person provides post-placement reports until 
final adoption of a child to the foreign country when required by the 
foreign country. Where such reports are required, the agency or person:
    (1) Informs the prospective adoptive parent(s) in the adoption 
services contract of the requirement prior to the referral of the child 
for adoption;
    (2) Informs the prospective adoptive parent(s) that they will be 
required to provide all necessary information for the report(s); and
    (3) Discloses who will prepare the reports and the fees that will 
be charged.
    (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) Notify the Secretary of the finalization of the adoption within 
thirty days of the entry of the order.


Sec.  96.51   Post-adoption services in incoming cases.

    (a) The agency or person takes all appropriate measures to ensure 
that the transfer of the child takes place in secure and appropriate 
circumstances, with properly trained and qualified escorts, if used, 
and, if possible, in the company of the adoptive parent(s).
    (b) The agency or person informs the prospective adoptive parent(s) 
in the adoption services contract whether the agency or person will or 
will not provide any post-adoption 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 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 makes good-faith efforts to 
encourage adoptive parent(s) to provide such reports.
    (d) 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.


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

    (a) The agency or person keeps the Central Authority of the foreign 
country and the Secretary informed as necessary about the adoption 
process and the measures taken to complete it, as well as about the 
progress of the placement if a probationary period is required.
    (b) The agency or person takes all appropriate measures, consistent 
with the procedures of the U.S. Central Authority and of the foreign 
country, to:
    (1) Transmit on a timely basis to the Central Authority or other 
competent authority in the child's country of origin the home study, 
including any updates required by such competent authority in the 
child's country of origin;
    (2) Obtain the child background study, proof that the necessary 
consents to the child's adoption have been obtained, and the necessary 
determination that the prospective placement is in the child's best 
interests, from the Central Authority or other competent authority in 
the child's country of origin;
    (3) Provide confirmation that the prospective adoptive parent(s) 
agree to the adoption to the Central Authority or other competent 
authority in the child's country of origin; and
    (4) Transmit the determination that the child is or will be 
authorized to enter and reside permanently in the United States to the 
Central Authority or other competent authority in the child's country 
of origin, or confirm that this information has been transmitted to the 
foreign country's Central Authority or other competent authority by the 
U.S. Central Authority.
    (c) The agency or person takes all necessary and appropriate 
measures, consistent with the procedures of the foreign country, to 
obtain permission for the child to leave his or her country of origin 
and to enter and reside permanently in the United States.
    (d) When the transfer of the child does not take place, the agency 
or person must consider the specific requirements, if any, of competent 
authorities in the State and/or in the child's country of origin and 
the preference of prospective adoptive parents in its determination of 
the disposition of the home study on the prospective adoptive parent(s) 
and/or the child background study.
    (e) The agency or person takes all necessary and appropriate 
measures to perform any tasks in an intercountry adoption case that the 
Secretary has identified, consistent with this part, as required to 
comply with the Convention, the IAA, the UAA, or any regulations 
implementing the IAA and the UAA.

Standards for Convention Cases in Which a Child Is Emigrating From the 
United States (Outgoing Cases)


Sec.  96.53   Background studies on the child and consents in outgoing 
Convention cases.

    (a) The agency or person takes all appropriate measures to ensure 
that a child background study is performed

[[Page 57276]]

that includes information about the child's identity, adoptability, 
background, social environment, family history, medical history 
(including that of the child's family), and any special needs of the 
child. The child background study must include the following:
    (1) Information that demonstrates that consents were obtained in 
accordance with paragraph (c) of this section;
    (2) Information that demonstrates consideration of the child's 
wishes and opinions in accordance with paragraph (d) of this section; 
and
    (3) Information that confirms that the child background study was 
prepared either by an exempted provider or by an individual who meets 
the requirements set forth in Sec.  96.37(g).
    (b) Where the child background study is not prepared in the first 
instance by an accredited agency, the agency or person ensures that the 
child background study is reviewed and approved in writing by an 
accredited agency. The written approval must include a determination 
that the background study includes all the information required by 
paragraph (a) of this section.
    (c) The agency or person takes all appropriate measures to ensure 
that consents have been obtained as follows:
    (1) The persons, institutions, and authorities whose consent is 
necessary for adoption have been counseled as necessary and duly 
informed of the effects of their consent, in particular, whether or not 
an adoption will result in the termination of the legal relationship 
between the child and his or her family of origin;
    (2) All such persons, institutions, and authorities have given 
their consents;
    (3) The consents have been expressed or evidenced in writing in the 
required legal form, have been given freely, were not induced by 
payments or compensation of any kind, and have not been withdrawn;
    (4) The consent of the mother, where required, was executed after 
the birth of the child;
    (5) The child, as appropriate in light of his or her age and 
maturity, has been counseled and duly informed of the effects of the 
adoption and of his or her consent to the adoption; and
    (6) The child's consent, where required, has been given freely, in 
the required legal form, and expressed or evidenced in writing and not 
induced by payment or compensation of any kind.
    (d) If the child is 12 years of age or older, or as otherwise 
provided by State law, the agency or person gives due consideration to 
the child's wishes or opinions before determining that an intercountry 
placement is in the child's best interests.
    (e) The agency or person prior to the child's adoption takes all 
appropriate measures to transmit to the Central Authority or other 
competent authority or accredited bodies of the Convention country the 
child background study, proof that the necessary consents have been 
obtained, and the reasons for its determination that the placement is 
in the child's best interests. In doing so, the agency or person, as 
required by Article 16(2) of the Convention, does not reveal the 
identity of the mother or the father if these identities may not be 
disclosed under State law.


Sec.  96.54   Placement standards in outgoing Convention cases.

    (a) Except in the case of adoption by relatives or in the case in 
which the birth parent(s) have identified specific prospective adoptive 
parent(s) or in other special circumstances accepted by the State court 
with jurisdiction over the case, the agency or person makes reasonable 
efforts to find a timely adoptive placement for the child in the United 
States by:
    (1) Disseminating information on the child and his or her 
availability for adoption through print, media, and internet resources 
designed to communicate with potential prospective adoptive parent(s) 
in the United States;
    (2) Listing information about the child on a national or State 
adoption exchange or registry for at least 60 calendar days after the 
birth of the child;
    (3) Responding to inquiries about adoption of the child; and
    (4) Providing a copy of the child background study to potential 
U.S. prospective adoptive parent(s).
    (b) The agency or person demonstrates to the satisfaction of the 
State court with jurisdiction over the adoption that sufficient 
reasonable efforts (including no efforts, when in the best interests of 
the child) to find a timely and qualified adoptive placement for the 
child in the United States were made.
    (c) In placing the child for adoption, the agency or person:
    (1) To the extent consistent with State law, gives significant 
weight to the placement preferences expressed by the birth parent(s) in 
all voluntary placements;
    (2) To the extent consistent with State law, makes diligent efforts 
to place siblings together for adoption and, where placement together 
is not possible, to arrange for contact between separated siblings, 
unless it is in the best interests of one of the siblings that such 
efforts or contact not take place; and
    (3) Complies with all applicable requirements of the Indian Child 
Welfare Act.
    (d) The agency or person complies with any State law requirements 
pertaining to the provision and payment of independent legal counsel 
for birth parents. If State law requires full disclosure to the birth 
parent(s) that the child is to be adopted by parent(s) who reside 
outside the United States, the agency or person provides such 
disclosure.
    (e) The agency or person takes all appropriate measures to give due 
consideration to the child's upbringing and to his or her ethnic, 
religious, and cultural background.
    (f) When particular prospective adoptive parent(s) in a Convention 
country have been identified, the agency or person takes all 
appropriate measures to determine whether the envisaged placement is in 
the best interests of the child, on the basis of the child background 
study and the home study on the prospective adoptive parent(s).
    (g) The agency or person thoroughly prepares the child for the 
transition to the Convention country, using age-appropriate services 
that address the child's likely feelings of separation, grief, and loss 
and difficulties in making any cultural, religious, racial, ethnic, or 
linguistic adjustment.
    (h) The agency or person takes all appropriate measures to ensure 
that the transfer of the child takes place in secure and appropriate 
circumstances, with properly trained and qualified escorts, if used, 
and, if possible, in the company of the adoptive parent(s) or the 
prospective adoptive parent(s).
    (i) Before the placement for adoption proceeds, the agency or 
person identifies the entity in the receiving country that will provide 
post-placement supervision and reports, if required by State law, and 
ensures that the child's adoption record contains the information 
necessary for contacting that entity.
    (j) The agency or person ensures that the child's adoption record 
includes the order granting the adoption or legal custody for the 
purpose of adoption in the Convention country.
    (k) The agency or person consults with the Secretary before 
arranging for the return to the United States of any child who has 
emigrated to a Convention country in connection with the child's 
adoption.

[[Page 57277]]

Sec.  96.55   Performance of Convention communication and coordination 
functions in outgoing Convention cases.

    (a) The agency or person keeps the Central Authority of the 
Convention country and the Secretary informed as necessary about the 
adoption process and the measures taken to complete it, as well as 
about the progress of the placement if a probationary period is 
required.
    (b) The agency or person ensures that:
    (1) Copies of all documents from the State court proceedings, 
including the order granting the adoption or legal custody, are 
provided to the Secretary;
    (2) Any additional information on the adoption is transmitted to 
the Secretary promptly upon request; and
    (3) It otherwise facilitates, as requested, the Secretary's ability 
to provide the certification that the child has been adopted or that 
custody has been granted for the purpose of adoption, in accordance 
with the Convention and the IAA.
    (c) When transfer of the child does not take place, the agency or 
person must consider the specific requirements, if any, of competent 
authorities in either the State or in the receiving country and the 
preference of the prospective adoptive parents in its determination of 
the disposition of the home study on the prospective adoptive parent(s) 
and/or the child background study.
    (d) The agency or person provides to the State court with 
jurisdiction over the adoption:
    (1) Proof that consents have been given as required in Sec.  
96.53(c);
    (2) A copy in English or certified English translation of the home 
study on the prospective adoptive parent(s) in the Convention country, 
and the determination by the agency or person that the placement with 
the prospective adoptive parent(s) is in the child's best interests;
    (3) Evidence that the prospective adoptive parent(s) in the 
Convention country agree to the adoption;
    (4) Evidence that the child will be authorized to enter and reside 
permanently in the Convention country or on the same basis as that of 
the prospective adoptive parent(s); and
    (5) Evidence that the Central Authority of the Convention country 
has agreed to the adoption, if such consent is necessary under its laws 
for the adoption to become final.
    (e) The agency or person makes the showing required by Sec.  
96.54(b) to the State court with jurisdiction over the adoption.
    (f) The agency or person takes all necessary and appropriate 
measures to perform any tasks in a Convention adoption case that the 
Secretary has identified, consistent with this Part, as required to 
comply with the Convention, the IAA, or any regulations implementing 
the IAA.


Sec.  96.56   [Reserved]

0
7. Revise subpart L to read as follows:
Subpart L--Oversight of Accredited Agencies and Approved Persons by the 
Secretary
Sec.
96.81 Scope.
96.82 The Secretary's response to actions by the accrediting entity.
96.83 Suspension or cancellation of accreditation or approval by the 
Secretary.
96.84 Reinstatement of accreditation or approval after suspension or 
cancellation by the Secretary.
96.85 Temporary and permanent debarment by the Secretary.
96.86 Length of debarment period and reapplication after temporary 
debarment.
96.87 Responsibilities of the accredited agency, approved person, 
and accrediting entity following suspension, cancellation, or 
debarment by the Secretary.
96.88 Procedures for debarment with prior notice.
96.89 Procedures for debarment effective immediately.
96.90 Review of suspension, cancellation, or debarment by the 
Secretary.

Subpart L--Oversight of Accredited Agencies and Approved Persons by 
the Secretary


Sec.  96.81   Scope.

    The provisions in this subpart establish the procedures governing 
adverse action by the Secretary against accredited agencies and 
approved persons.


Sec.  96.82   The Secretary's response to actions by the accrediting 
entity.

    (a) There is no administrative review by the Secretary of an 
accrediting entity's decision to deny accreditation or approval, nor of 
any decision by an accrediting entity to take an adverse action.
    (b) When informed by an accrediting entity that an agency has been 
accredited or a person has been approved, the Secretary will take 
appropriate steps to ensure that relevant information about the 
accredited agency or approved person is provided to the Permanent 
Bureau of the Hague Conference on Private International Law. When 
informed by an accrediting entity that it has taken an adverse action 
that impacts an agency's or person's accreditation or approval status, 
the Secretary will take appropriate steps to inform the Permanent 
Bureau of the Hague Conference on Private International Law.


Sec.  96.83   Suspension or cancellation of accreditation or approval 
by the Secretary.

    (a) The Secretary must suspend or cancel the accreditation or 
approval 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 standards in subpart F of this part and that 
the accrediting entity has failed or refused, after consultation with 
the Secretary, to take appropriate enforcement action.
    (b) The agency or person shall be provided with written notice of 
cancellation or suspension by the Secretary, which shall include:
    (1) The reasons for the suspension or cancellation in terms 
sufficient to put the agency or person on notice of the conduct or 
transaction(s) upon which it is based;
    (2) The standards in subpart F of this part with which the agency 
or person is out of compliance;
    (3) The effect of the suspension or cancellation, including the 
agency's or person's responsibility to cease providing adoption 
services and, if applicable, its responsibilities with respect to the 
transfer of cases and the return of fees; and
    (4) Copies of any evidence relied on by the Department in support 
of the suspension or cancellation.
    (c) If the Secretary suspends or cancels the accreditation or 
approval of an agency or person, the Secretary will take appropriate 
steps to notify the accrediting entity(ies), USCIS, the Permanent 
Bureau of the Hague Conference on Private International Law, State 
licensing authorities, the Central Authorities in the countries where 
the agency or person operates, and other authorities as appropriate.


Sec.  96.84   Reinstatement of accreditation or approval after 
suspension or cancellation by the Secretary.

    (a) An agency or person who has been the subject of a suspension or 
cancellation by the Secretary may, within 30 days after receipt of the 
notice of suspension or cancellation, submit a written statement 
including any reasons why it believes the adverse action is 
unwarranted. Such statement must include any supporting materials that 
the agency or person wishes to be considered in support of its 
submission. If the agency or person does not submit such a statement 
within 30 days, the Department's decision will become final.
    (b) Upon review and consideration of the agency or person's 
submission and

[[Page 57278]]

the evidence relied on by the Department, the Secretary shall determine 
whether to withdraw the cancellation or suspension. The Secretary shall 
withdraw the suspension or cancellation if he or she finds that the 
determination that the agency or person is substantially out of 
compliance with applicable requirements is not supported by substantial 
evidence. The agency or person will be notified of this decision within 
30 days of the Department's receipt of the written statement described 
in paragraph (a) of this section. If the Secretary withdraws a 
suspension or cancellation under this paragraph, the Secretary will 
also take appropriate steps to notify the entities referenced in Sec.  
96.83(c).
    (c) An agency or person may petition the Secretary for relief from 
the Secretary's suspension or cancellation of its accreditation or 
approval 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 accreditation or 
approval 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 accreditation or approval, the 
Secretary will so notify the appropriate accrediting entity. If the 
Secretary terminates a suspension, the Secretary will also take 
appropriate steps to notify the entities referenced in Sec.  96.83(c).
    (d) 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(ies) and the 
entities referenced in Sec.  96.83(c).


Sec.  96.85   Temporary and permanent debarment by the Secretary.

    (a) The Secretary may temporarily or permanently debar an agency 
from accreditation or a person from approval on the Secretary's own 
initiative, at the request of DHS, or at the request of an accrediting 
entity. An agency or person that is debarred pursuant to this section 
ceases to be accredited or approved.
    (b) The Secretary may issue a debarment order only if the 
Secretary, in the Secretary's discretion, determines that:
    (1) There is substantial evidence that the agency or person is out 
of compliance with the standards in subpart F of this part; and
    (2) There has been a pattern of serious, willful, or grossly 
negligent failures to comply with the standards in subpart F of this 
part, or there are other aggravating circumstances indicating that 
continued accreditation or approval would not be in the best interests 
of the children and families concerned. For purposes of this paragraph:
    (i) ``The children and families concerned'' include any children 
and any families whose interests have been or may be affected by the 
agency's or person's actions.
    (ii) In determining whether the agency's or person's continued 
accreditation or approval would not be in the best interests of the 
children and families concerned, the Secretary may consider whether the 
agency's or person's continued accreditation would be detrimental to 
the ability of U.S. citizens to adopt children through intercountry 
adoption in the future.
    (3) A failure to comply with Sec.  96.47 (home study requirements) 
shall constitute a ``serious failure to comply'' unless it is shown by 
clear and convincing evidence that such noncompliance had neither the 
purpose nor the effect of determining the outcome of a decision or 
proceeding by a court or other competent authority in the United States 
or the child's country of origin; and
    (i) Repeated serious, willful, or grossly negligent failures to 
comply with Sec.  96.47 (home study requirements) by an agency or 
person after consultation between the Secretary and the accrediting 
entity with respect to previous noncompliance by such agency or person 
shall constitute a pattern of serious, willful, or grossly negligent 
failures to comply.
    (ii) [Reserved].
    (c) The Secretary shall initiate a debarment proceeding by notice 
of proposed debarment, in accordance with the procedures in Sec.  
96.88, unless the Secretary finds that it is necessary that debarment 
be effective immediately because the agency's or person's continued 
accreditation would pose a substantial risk of significant harm to 
children or families. If the Secretary finds that it is necessary that 
debarment be effective immediately, the procedures in Sec.  96.89 shall 
govern such debarment.


Sec.  96.86   Length of debarment period and reapplication after 
temporary debarment.

    (a) In the case of a temporary debarment order, the order will take 
effect on the date specified in the order and will specify a date, not 
earlier than three years later, on or after which the agency or person 
may petition the Secretary for withdrawal of the temporary debarment. 
If the Secretary withdraws the temporary debarment, the agency or 
person may then reapply for accreditation or approval 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 apply to 
any accrediting entity with jurisdiction over its application.
    (b) In the case of a permanent debarment order, the order will take 
effect on the date specified in the order. The agency or person will 
not be permitted to apply again to an accrediting entity for 
accreditation or approval, or to the Secretary for termination of the 
debarment.
    (c) Nothing in this section shall be construed to prevent the 
Secretary from withdrawing a debarment 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(ies) and the entities referenced in Sec.  
96.83(c).


Sec.  96.87   Responsibilities of the accredited agency, approved 
person, and accrediting entity following suspension, cancellation, or 
debarment by the Secretary.

    If the Secretary suspends or cancels the accreditation or approval 
of an agency or person, or debars an agency or person, the agency or 
person must cease to provide adoption services in all intercountry 
adoption cases. In the case of suspension, the agency or person must 
consult with the accrediting entity about whether to transfer its 
intercountry adoption cases and adoption records. In the case of 
cancellation or debarment, the agency or person must execute the plans 
required by Sec. Sec.  96.33(f) and 96.42(d) under the oversight of the 
accrediting entity, and transfer its intercountry adoption cases and 
adoption records to other accredited agencies or approved persons or, 
where required by State law, to the State repository for such records.
    (a) When the agency or person does not transfer such intercountry 
adoption cases or adoption records in accordance with the plans or as 
otherwise agreed by the accrediting entity, the accrediting entity will 
so advise the Secretary who,

[[Page 57279]]

with the assistance of the accrediting entity, will coordinate efforts 
to identify other accredited agencies or approved persons to assume 
responsibility for the cases, and to transfer the records to other 
accredited agencies or approved persons, or to public domestic 
authorities, as appropriate.
    (b) If the Secretary cancels the accreditation or approval of an 
agency or person, or debars an agency or person, the accrediting entity 
shall refuse to renew any pending applications for renewal of 
accreditation or approval.


Sec.  96.88   Procedures for debarment with prior notice.

    Unless the Secretary finds that it is necessary that debarment be 
effective immediately because the agency's or person's continued 
accreditation would risk significant harm to children or families, an 
agency or person shall be provided with notice of the proposed 
debarment and an opportunity to contest the proposed debarment, in 
accordance with the provisions of this section:
    (a) A debarment proceeding shall be initiated by notice from the 
Department to the agency or person that includes:
    (1) A statement that debarment is being considered under Sec.  
96.85;
    (2) The reasons for the proposed debarment in terms sufficient to 
put the agency or person on notice of the conduct or transaction(s) 
upon which it is based;
    (3) The standards in subpart F of this part with which the 
Secretary believes the agency or person is out of compliance;
    (4) The provisions of this section and any other procedures, if 
applicable, governing the debarment proceedings, including specifically 
the right to request a hearing, when applicable; and
    (5) The potential effect of a debarment, including the agency's or 
person's responsibilities with respect to ceasing to provide adoption 
services, transferring cases, and returning fees.
    (b) If the agency or person elects to contest the proposed 
debarment, it may do so in accordance with the following procedures:
    (1) Within 45 days after receipt of the notice of proposed 
debarment, the agency or person may submit a written statement in 
opposition to the proposed debarment. Such statement may include any 
evidence on which the agency or person intends to rely in opposition to 
the proposed debarment. Such statement may also include a request for a 
hearing. If a request for a hearing is not included with agency or 
person's statement, no hearing will be held, and the Secretary's 
debarment decision will be based upon his or her review of the written 
record only.
    (2) Within 45 days after its receipt of the agency's or person's 
written statement, the Department will give the agency or person copies 
of the evidence relied on in support of the debarment action. In 
addition, the Department may choose to provide a written statement in 
response to the agency's or person's submission.
    (3) If a hearing was not timely requested in accordance with 
paragraph (b)(1) of this section, then the agency or person may, within 
45 days of its receipt of the Department's response described in 
paragraph (b)(2) of this section, submit a further statement in reply, 
which may, if appropriate, include additional evidence.
    (4) If a hearing was requested in accordance with paragraph (b)(1) 
of this section, then the agency or person will, within 30 days of its 
receipt of the Department's response described in paragraph (b)(2) of 
this section, produce to the Department all physical or documentary 
evidence on which it will rely at the hearing.
    (5) The statements described in this paragraph, and any evidence 
submitted therewith, will be made part of the record of the proceeding, 
and if no hearing was timely requested, will constitute the entire 
record of the proceeding.
    (c) If a hearing was timely requested in accordance with paragraph 
(b)(1) of this section, the Department will, within 60 days of its 
receipt of the written statement described in paragraph (b)(1) of this 
section, give the agency or person written notice of the date, time, 
and place of the hearing. The proposed date of the hearing must be at 
least 30 days after the agency or person has received the evidence 
described in paragraph (b)(2) of this section, and at least 30 days 
after the agency or person has received the written notice described in 
this paragraph. The Department will make reasonable efforts to hold the 
hearing within 120 days of the date the Department receives the 
agency's or person's written request.
    (1) The Department will name a hearing officer, who will generally 
be a Department employee. The hearing officer will make only 
preliminary findings of fact and submit recommendations based on the 
record of the proceeding to the Secretary.
    (2) The hearing shall take place in Washington, DC. The agency or 
person may appear in person (if an individual), or be represented by an 
organizational representative (if an agency), or with or through an 
attorney admitted to practice in any State of the United States, the 
District of Columbia, or any territory or possession of the United 
States. The agency or person is responsible for all costs associated 
with attending the hearing.
    (3) There is no right to subpoena witnesses or to conduct discovery 
in connection with the hearing. However, the agency or person may 
testify in person, offer evidence on its own behalf, present witnesses, 
and make arguments at the hearing. The agency or person is responsible 
for all costs associated with the presentation of its case. The 
Department may present witnesses, offer evidence, and make arguments on 
its behalf. The Department is responsible for all costs associated with 
the presentation of its case.
    (4) Any evidence not produced in accordance with paragraph (b) of 
this section will not be considered by the hearing officer or be made 
part of the record of the proceeding, unless the hearing officer, in 
his or her discretion, elects to accept it. The hearing officer shall 
state his or her reasons for accepting evidence under this 
subparagraph. The hearing officer shall not accept under this 
subparagraph any evidence offered by a party that could have been 
produced by that party in accordance with paragraph (b) of this 
section.
    (5) The hearing is informal and permissive. As such, the provisions 
of 5 U.S.C. 554 et seq. do not apply to the hearing. Formal rules of 
evidence also do not apply; however, the hearing officer may impose 
reasonable restrictions on relevancy, materiality, and competency of 
evidence presented. Testimony will be under oath or by affirmation 
under penalty of perjury. The hearing officer may not consider any 
information that is not also made available to the agency or person and 
made a part of the record of the proceeding.
    (6) If any witness is unable to appear, the hearing officer may, in 
his or her discretion, permit the witness to testify via teleconference 
or accept an affidavit or sworn deposition testimony of the witness, 
the cost for which will be the responsibility of the requesting party, 
subject to such limits as the hearing officer deems appropriate.
    (7) A qualified reporter will make a complete verbatim transcript 
of the hearing. The agency or person may review and purchase a copy of 
the transcript directly from the reporter. The hearing transcript and 
all the information and documents received by the hearing officer, 
whether or not deemed relevant, will be made part of the record of the 
proceeding. The

[[Page 57280]]

hearing officer's preliminary findings and recommendations are 
deliberative and shall not be considered part of the record unless 
adopted by the Secretary.
    (d) Upon review and consideration of the complete record of the 
proceeding and the preliminary findings of fact and recommendations of 
the hearing officer, if applicable, the Secretary shall determine 
whether or not to impose the debarment. The Secretary shall render his 
or her decision within a reasonable period of time after the date for 
submission of the agency's or person's reply statement described in 
paragraph (b)(3) of this section, if no hearing was requested; or after 
the close of the hearing described in paragraph (c) of this section, if 
a hearing was held.
    (1) The standard of proof applicable to a debarment proceeding 
under this subpart is substantial evidence. The Department bears the 
burden to establish that substantial evidence exists:
    (i) That the agency or person is out of compliance with some or all 
of the standards identified in the notice of proposed debarment; and
    (ii) That there is either a pattern of serious, willful, or grossly 
negligent failures to comply, or other aggravating circumstances 
indicating that continued accreditation or approval would not be in the 
best interests of the children and families concerned.
    (2) The Secretary is not limited to the specific conduct or 
transactions identified in the notice of proposed debarment, but may 
consider any evidence in the record of the proceeding that supplies 
substantial evidence of a violation of the standards identified in the 
notice of proposed debarment.
    (e) If the Secretary decides to impose debarment, the agency or 
person shall be given prompt notice:
    (1) Referring to the notice of proposed debarment;
    (2) Specifying the reasons for debarment;
    (3) Stating the effect of debarment, including the debarred 
agency's or person's responsibilities with respect to ceasing to 
provide adoption services, transferring cases, and returning fees; and
    (4) Stating the period of debarment, including effective dates.
    (f) The decision of the Secretary is final and is not subject to 
further administrative review.
    (g) If the Secretary decides not to impose debarment, the agency or 
person shall be given prompt notice of that decision. A decision not to 
impose debarment shall be without prejudice to any adverse action 
imposed, or that may be imposed, on the agency or person by an 
accrediting entity.


Sec.  96.89   Procedures for debarment effective immediately.

    If the Secretary finds that the agency's or person's continued 
accreditation or approval would risk significant harm to children or 
families, and that debarment should be effective immediately, the 
Secretary shall debar the agency or person from accreditation or 
approval by providing written notice of debarment to the agency or 
person.
    (a) The notice of debarment shall include:
    (1) A statement that the agency or person is debarred in accordance 
with Sec.  96.85;
    (2) The reasons for the debarment in terms sufficient to put the 
agency or person on notice of the conduct or transaction(s) upon which 
it is based;
    (3) The standards in subpart F of this part with which the 
Secretary believes the agency or person is out of compliance;
    (4) The period of the debarment, including effective dates;
    (5) The effect of the debarment, including the debarred agency's or 
person's obligations; and
    (6) The provisions of this section and any other procedures, if 
applicable, governing proceedings to contest the debarment action, 
including specifically the right to request a hearing, when applicable.
    (b) If the agency or person elects to contest the Department's 
debarment action, it may do so in accordance with the following 
procedures:
    (1) Within 30 days after receipt of the notice of debarment, the 
debarred agency or person may submit a written statement in opposition 
to the debarment. Such statement may include any evidence on which the 
debarred agency or person intends to rely in opposition to the 
debarment. Such statement may also include a request for a hearing. If 
a request for hearing is not included with the agency or person's 
statement, no hearing will be held, and the Secretary's debarment 
decision will be based upon his or her review of the written record 
only.
    (2) Within 30 days after its receipt of the agency's or person's 
written statement, the Department will give the debarred agency or 
person copies of the evidence relied on in support of the debarment 
action. In addition, the Department may choose to provide a written 
statement in response to the debarred agency's or person's submission.
    (3) The debarred agency or person may, within 30 days of its 
receipt of the Department's response described in paragraph (b)(2) of 
this section, submit a further statement in reply. The debarred agency 
or person will include with its reply, or will produce to the 
Department if it elects not to submit a reply, any additional physical 
or documentary evidence on which it will rely at the hearing.
    (4) The statements described in this paragraph, and any evidence 
submitted therewith, will be made part of the record of the proceeding, 
and if no hearing was timely requested, will constitute the entire 
record of the proceeding.
    (c) If a hearing was timely requested in accordance with paragraph 
(b)(1) of this section, the provisions of Sec.  96.88(c) shall apply, 
except that the Department will give notice of the date, time, and 
place of the hearing within 30 days of its receipt of the debarred 
agency's or person's written statement described in paragraph (b)(1) of 
this section, and will make reasonable efforts to hold the hearing 
within 90 days of such receipt.
    (d) Upon review and consideration of the complete record of the 
proceeding and the preliminary findings of fact and recommendations of 
the hearing officer, the Secretary shall confirm the debarment, if he 
or she determines that it is supported by substantial evidence, or 
shall withdraw the debarment, if he or she determines that it is not 
supported by substantial evidence. The Secretary shall render his or 
her decision within 30 days of the date for submission of the debarred 
agency's or person's reply statement described in paragraph (b)(3) of 
this section, if no hearing was requested; or within 45 days of the 
close of the hearing, if a hearing was held.
    (1) The Department bears the burden to establish that substantial 
evidence exists:
    (i) That the debarred agency or person is out of compliance with 
some, or all of the standards identified in the notice of debarment; 
and
    (ii) That there is either a pattern of serious, willful, or grossly 
negligent failures to comply, or other aggravating circumstances 
indicating that continued accreditation or approval would not be in the 
best interests of the children and families concerned.
    (2) The Secretary is not limited to the specific conduct or 
transactions identified in the notice of debarment, but may consider 
any evidence in the record of the proceeding that supplies substantial 
evidence of a violation of the standards identified in the notice of 
debarment.

[[Page 57281]]

    (3) If the Secretary decides to confirm the debarment, the agency 
or person shall be given prompt notice:
    (i) Referring to the notice of debarment;
    (ii) Stating that the debarment is confirmed;
    (iii) Specifying the reasons for the decision to confirm the 
debarment; and
    (iv) Stating the period, including effective dates, of the 
debarment, if different from those set forth in the notice of 
debarment.
    (e) The decision of the Secretary is final and is not subject to 
further administrative review.
    (f) If the Secretary decides to withdraw the debarment, the agency 
or person shall be given prompt notice of that decision. A decision not 
to confirm the debarment shall be without prejudice to any adverse 
action imposed, or that may be imposed, on the agency or person by an 
accrediting entity.


Sec.  96.90   Review of suspension, cancellation, or debarment by the 
Secretary.

    (a) Except to the extent provided by the procedures in Sec. Sec.  
96.84, 96.88, and 96.89, an adverse action by the Secretary shall not 
be subject to administrative review.
    (b) Section 204(d) of the IAA (42 U.S.C. 14924(d)) provides for 
judicial review of final actions by the Secretary. When any petition 
brought under section 204(d) raises as an issue whether the 
deficiencies necessitating a suspension or cancellation of 
accreditation or approval have been corrected, procedures maintained by 
the Secretary pursuant to Sec.  96.84(c) must first be exhausted. A 
suspension or cancellation of accreditation or approval and a debarment 
(whether temporary or permanent) by the Secretary are final actions 
subject to judicial review. Other actions by the Secretary are not 
final actions and are not subject to judicial review.
    (c) In accordance with section 204(d) of the IAA (42 U.S.C. 
14924(d)), an agency or person that has been suspended, cancelled, or 
temporarily or permanently debarred by the Secretary may petition the 
United States District Court for the District of Columbia, or the 
United States district court in the judicial district in which the 
person resides or the agency is located, pursuant to 5 U.S.C. 706, to 
set aside the action.

0
8. Revise subpart M to read as follows:

Subpart M--Dissemination and Reporting of Information by 
Accrediting Entities

Sec.
96.91 Scope.
96.92 Dissemination of information to the public about accreditation 
and approval status.
96.93 Dissemination of information to the public about complaints 
against accredited agencies and approved persons.
96.94 Reports to the Secretary about accredited agencies and 
approved persons and their activities.
96.95-96.99 [Reserved].

Subpart M--Dissemination and Reporting of Information by 
Accrediting Entities


Sec.  96.91   Scope.

    The provisions in this subpart govern the dissemination and 
reporting of information on accredited agencies and approved persons by 
accrediting entities.


Sec.  96.92   Dissemination of information to the public about 
accreditation and approval status.

    (a) Each accrediting entity must maintain and make available to the 
public at least monthly the following information:
    (1) The name, address, and contact information for each agency and 
person that has been accredited or approved;
    (2) The names of agencies and persons that have been denied 
accreditation or approval that have not subsequently been accredited or 
approved;
    (3) The names of agencies and persons that have been subject to 
suspension, cancellation, refusal to renew accreditation or approval, 
or debarment by an accrediting entity or the Secretary; and
    (4) Other information specifically authorized in writing by the 
accredited agency or approved person to be disclosed to the public.
    (b) Each accrediting entity must make the following information 
available to individual members of the public upon specific request:
    (1) Confirmation of whether or not a specific agency or person has 
a pending application for accreditation or approval, and, if so, the 
date of the application and whether it is under active consideration or 
whether a decision on the application has been deferred; and
    (2) If an agency or person has been subject to suspension, 
cancellation, refusal to renew accreditation or approval, or debarment, 
a brief statement of the reasons for the action, including, where 
relevant, the identity and conduct of any foreign supervised providers.


Sec.  96.93   Dissemination of information to the public about 
complaints against accredited agencies and approved persons.

    Each accrediting entity must maintain a written record documenting 
each complaint received and the steps taken in response to it. This 
information may be disclosed to the public as follows:
    (a) Each accrediting entity must confirm, upon inquiry from a 
member of the public, whether there have been any substantiated 
complaints against an accredited agency or approved person, and if so, 
provide information about the status and nature of any such complaints.
    (b) Each accrediting entity must have procedures for disclosing 
information about complaints that are substantiated.


Sec.  96.94   Reports to the Secretary about accredited agencies and 
approved persons and their activities.

    (a) Each accrediting entity must make annual reports to the 
Secretary on the information it collects from accredited agencies and 
approved persons pursuant to Sec.  96.43. Each accrediting entity must 
make semi-annual reports to the Secretary that summarize for the 
preceding six-month period the following information:
    (1) The accreditation and approval status of its applicants, 
accredited agencies, and approved persons;
    (2) Any instances where it has denied accreditation or approval;
    (3) Any adverse actions it has taken against an accredited agency 
or approved person;
    (4) All substantiated complaints against its accredited agencies 
and approved persons and the impact of such complaints on their 
accreditation or approval status;
    (5) The number, nature, and outcome of complaint reviews carried 
out by the accrediting entity as well as the shortest, longest, 
average, and median length of time expended to complete complaint 
reviews;
    (6) Any discernible patterns in complaints it has received about 
specific agencies or persons, as well as any discernible patterns of 
complaints in the aggregate;
    (7) A list of cases involving disruption, dissolution, unregulated 
custody transfer, and serious harm to the child, by agency or person 
and by country or origin, and any discernible patterns in these cases; 
and
    (8) A summary of unsubstantiated complaints, and those which the 
accrediting entity declined to review.
    (b) In addition to the reporting requirements contained in Sec.  
96.72, an

[[Page 57282]]

accrediting entity must immediately notify the Secretary in writing:
    (1) When it learns an accredited agency or approved person has:
    (i) Ceased to provide adoption services;
    (ii) Transferred its intercountry adoption cases and adoption 
records; or
    (iii) Withdrawn a pending application for renewal of accreditation 
or approval;
    (2) When it accredits an agency or approves a person;
    (3) When it renews the accreditation or approval of an agency or 
person; or
    (4) When it takes an adverse action against an accredited agency or 
approved person that impacts its accreditation or approval status.


Sec. Sec.  96.95-96.99   [Reserved]

0
9. Add reserved subparts N, O, P, and Q.

Subparts N, O, P, and Q [Reserved]

0
10. Add subpart R to read as follows:

Subpart R--Alternative Procedures for Primary Providers in 
Intercountry Adoption by Relatives

Sec.
96.100 Alternative procedures for primary providers in intercountry 
adoption by relatives.
96.101 Effective date for alternative procedures for primary 
providers in intercountry adoption by relatives.

Subpart R--Alternative Procedures for Primary Providers in 
Intercountry Adoption by Relatives


Sec.  96.100   Alternative procedures for primary providers in 
intercountry adoption by relatives.

    In a case where the child is being adopted by a relative as defined 
in Sec.  96.2:
    (a) The primary provider, in accordance with Sec.  96.44, develops 
and implements a service plan for providing adoption service 3 
(performing and reporting on the home study and child background study, 
according to the provisions in Sec. Sec.  96.47 and 96.53), adoption 
service 5 (monitoring a case after a child has been placed with 
prospective adoptive parent(s) until final adoption), and adoption 
service 6 (when necessary because of a disruption before final 
adoption, assuming custody and providing child care or any other social 
service pending an alternative placement, according to the provisions 
in Sec. Sec.  96.50 and 96.51), and provides all such services in 
accordance with Sec.  96.44.
    (b) The primary provider includes in the service plan any 
additional adoption services found in the definition of adoption 
services in Sec.  96.2 only if they will be provided by the primary 
provider or one of its supervised providers.
    (c) The primary provider verifies that the prospective adoptive 
parents have met the training requirements outlined in Sec.  96.48 in 
incoming cases before the finalization of the adoption or the granting 
of legal custody for purposes of emigration and adoption in the United 
States. In cases where the adoption or legal custody grant occurred 
prior to the primary provider's involvement in the case, the primary 
provider must verify such training requirements have been met as soon 
as practicable.
    (d) All services provided pursuant to this section must be 
performed in accordance with the Convention, the IAA, the UAA, and the 
regulations implementing the IAA and the UAA.


Sec.  96.101   Effective date for alternative procedures for primary 
providers in intercountry adoption by relatives.

    The provisions of this subpart become effective January 8, 2025.
    Note: The following appendix will not appear in the Code of Federal 
Regulations:

   Appendix A--Relative Relationships as Defined in 8 CFR and 22 CFR--
    Overlapping Familial Relationships in Two Definitions of Relative
------------------------------------------------------------------------
          Column A                  Column B              Column C
------------------------------------------------------------------------
                               Converted familial   Prospective adoptive
 Prospective adoptive parent    relationships in       parent familial
 familial relationships with      Column A for       relationships with
 the parent of the child to      comparison with       the child to be
 be adopted as defined in 8     relationships in     adopted as defined
   CFR 204.309(b)(2)(iii)           Column C           in 22 CFR 96.2
------------------------------------------------------------------------
                                 To compare the         (Overlapping
                                 relationships in    equivalent familial
                               column A with those    relationships are
                                 in column C, the         in bold.)
                                 terms need to be
                                 equivalent. This
                                 column shows the
                                  conversion of
                                   prospective
                                 adoptive parent
                                 relationships to
                                the PARENT of the
                                child in column A
                                  to prospective
                                 adoptive parent
                                 relationships to
                                  the CHILD her/
                                  himself as in
                                     column C
former parent/mother or       grandparent.........  grandparent.
 father-in-law/stepparent/
 parent.
former wife or husband/       parent/stepparent...  parent/stepparent.
 husband or wife.
daughter-in-law/stepdaughter/ sister/stepsister/    sister/stepsister/
 daughter.                     half-sister.          half-sister.
son-in-law/stepson/son......  brother/stepbrother/  brother/stepbrother/
                               half-brother.         half-brother.
half-sister/sister-in-law/    aunt................  aunt.
 stepsister/sister.
half-brother/brother-in-law/  uncle...............  uncle.
 stepbrother/brother.
aunt........................  great aunt..........  not included.*
uncle.......................  great uncle.........  not included.*
niece.......................  1st cousin..........  not included.*
nephew......................  1st cousin..........  not included.*
1st cousin..................  1st cousin once       not included.*
                               removed.
2nd cousin..................  2nd cousin once       not included.*
                               removed.
------------------------------------------------------------------------
* The definition of relative in 22 CFR includes first- and second-degree
  family relationships. The definition in 8 CFR includes third and some
  fourth-degree relationships such as great aunts and uncles and first
  and second cousins. Prospective adoptive parents with relationships
  beyond the second-degree may adopt relatives but not under the
  alternative procedures for primary providers found in 22 CFR 96.100.



[[Page 57283]]

Rena Bitter,
Assistant Secretary, Bureau of Consular Affairs, Department of State.
[FR Doc. 2024-14628 Filed 7-11-24; 8:45 am]
BILLING CODE 4710-25-P