To require the Secretary of Health and Human Services to develop recommendations for proposed model adoption legislation and procedures.

Directs the Secretary of Health and Human Services to: (1) issue proposed model adoption legislation and procedures and publish such proposal in the Federal Register for comment; and (2) after soliciting and considering comments of interested parties, issue and publish model adoption legislation and procedures, which shall not conflict with the provisions of any interstate compact in operation pursuant to which States are making, supervising, or regulating placements of children.

Requires such model legislation and procedures to: (1) provide that the principal consideration in an adoption proceeding is providing for the best interest of the child; and (2) contain provisions regarding the best interests of children with special needs.

Directs the Secretary to appoint an advisory panel to: (1) review current conditions, practices, and laws relating to adoption, with special reference to their effect on facilitating or impeding the location of suitable adoptive homes for children who would benefit by adoption and the completion of suitable adoptions for such children; and (2) propose to the Secretary model legislation and procedures relating to adoption (including an adoption assistance agreement) designed to facilitate adoption by families of all economic levels.