HR 5403 PCS 
(2) REPORT
TO
THE
CONGRESS.—Within 12 
months after the date of the enactment of this Act, 
the Secretary of Health and Human Services shall 
submit to the Committee on Ways and Means of the 
House of Representatives and the Committee on Fi-
nance of the Senate a written report on— 
(A) how frequently States need the ex-
tended 75-day period provided for in clause (ii) 
of section 471(a)(26)(A) of the Social Security 
Act in order to comply with clause (i) of such 
section; 
(B) the reasons given for utilizing the ex-
tended compliance period; 
(C) the extent to which utilizing the ex-
tended compliance period leads to the resolution 
of the circumstances beyond the control of the 
State; and 
(D) the actions taken by States and any 
relevant Federal agencies to resolve the need 
for the extended compliance period. 
(3) SENSE OF THE CONGRESS.—It is the sense 
of the Congress that each State should— 
(A) use private agencies to conduct home 
studies when doing so is necessary to meet the 
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requirements of section 471(a)(26) of the Social 
Security Act; and 
(B) give full faith and credit to any home 
study report completed by any other State or 
an Indian tribe with respect to the placement of 
a child in foster care or for adoption. 
(b) TIMELY INTERSTATE HOME STUDY INCENTIVE 
PAYMENTS.—Part E of title IV of the Social Security Act 
(42 U.S.C. 670–679b) is amended by inserting after sec-
tion 473A the following: 
‘‘SEC. 473B. TIMELY INTERSTATE HOME STUDY INCENTIVE 
PAYMENTS. 
‘‘(a) GRANT AUTHORITY.—The Secretary shall make 
a grant to each State that is a home study incentive-eligi-
ble State for a fiscal year in an amount equal to the timely 
interstate home study incentive payment payable to the 
State under this section for the fiscal year, which shall 
be payable in the immediately succeeding fiscal year. 
‘‘(b) HOME STUDY INCENTIVE-ELIGIBLE STATE.— 
A State is a home study incentive-eligible State for a fiscal 
year if— 
‘‘(1) the State has a plan approved under this 
part for the fiscal year; 
‘‘(2) the State is in compliance with subsection 
(c) for the fiscal year; and 
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‘‘(3) based on data submitted and verified pur-
suant to subsection (c), the State has completed a 
timely interstate home study during the fiscal year. 
‘‘(c) DATA REQUIREMENTS.— 
‘‘(1) IN GENERAL.—A State is in compliance 
with this subsection for a fiscal year if the State has 
provided to the Secretary a written report, covering 
the preceding fiscal year, that specifies— 
‘‘(A) the total number of interstate home 
studies requested by the State with respect to 
children in foster care under the responsibility 
of the State, and with respect to each such 
study, the identity of the other State involved; 
‘‘(B) the total number of timely interstate 
home studies completed by the State with re-
spect to children in foster care under the re-
sponsibility of other States, and with respect to 
each such study, the identity of the other State 
involved; and 
‘‘(C) such other information as the Sec-
retary may require in order to determine wheth-
er the State is a home study incentive-eligible 
State. 
‘‘(2) VERIFICATION OF DATA.—In determining 
the number of timely interstate home studies to be 
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attributed to a State under this section, the Sec-
retary shall check the data provided by the State 
under paragraph (1) against complementary data so 
provided by other States. 
‘‘(d) TIMELY INTERSTATE HOME STUDY INCENTIVE 
PAYMENTS.— 
‘‘(1) IN GENERAL.—The timely interstate home 
study incentive payment payable to a State for a fis-
cal year shall be $1,500, multiplied by the number 
of timely interstate home studies attributed to the 
State under this section during the fiscal year, sub-
ject to paragraph (2). 
‘‘(2) PRO RATA ADJUSTMENT IF INSUFFICIENT 
FUNDS AVAILABLE.—If the total amount of timely 
interstate home study incentive payments otherwise 
payable under this section for a fiscal year exceeds 
the total of the amounts made available pursuant to 
subsection (h) for the fiscal year (reduced (but not 
below zero) by the total of the amounts (if any) pay-
able under paragraph (3) of this subsection with re-
spect to the preceding fiscal year), the amount of 
each such otherwise payable incentive payment shall 
be reduced by a percentage equal to— 
‘‘(A) the total of the amounts so made 
available (as so reduced); divided by 
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‘‘(B) the total of such otherwise payable 
incentive payments. 
‘‘(3) APPROPRIATIONS AVAILABLE FOR UNPAID 
INCENTIVE PAYMENTS FOR PRIOR FISCAL YEARS.— 
‘‘(A) IN
GENERAL.—If payments under 
this section are reduced under paragraph (2) or 
subparagraph (B) of this paragraph for a fiscal 
year, then, before making any other payment 
under this section for the next fiscal year, the 
Secretary shall pay each State whose payment 
was so reduced an amount equal to the total 
amount of the reductions which applied to the 
State, subject to subparagraph (B) of this para-
graph. 
‘‘(B) PRO RATA ADJUSTMENT IF INSUFFI-
CIENT FUNDS AVAILABLE.—If the total amount 
of payments otherwise payable under subpara-
graph (A) of this paragraph for a fiscal year ex-
ceeds the total of the amounts made available 
pursuant to subsection (h) for the fiscal year, 
the amount of each such payment shall be re-
duced by a percentage equal to— 
‘‘(i) the total of the amounts so made 
available; divided by 
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‘‘(ii) the total of such otherwise pay-
able payments. 
‘‘(e) TWO-YEAR AVAILABILITY OF INCENTIVE PAY-
MENTS.—Payments to a State under this section in a fis-
cal year shall remain available for use by the State 
through the end of the next fiscal year. 
‘‘(f) LIMITATIONS
ON USE
OF INCENTIVE PAY-
MENTS.—A State shall not expend an amount paid to the 
State under this section except to provide to children or 
families any service (including post-adoption services) that 
may be provided under part B or E. Amounts expended 
by a State in accordance with the preceding sentence shall 
be disregarded in determining State expenditures for pur-
poses of Federal matching payments under sections 423, 
434, and 474. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) HOME
STUDY.—The term ‘home study’ 
means an evaluation of a home environment con-
ducted in accordance with applicable requirements of 
the State in which the home is located, to determine 
whether a proposed placement of a child would meet 
the individual needs of the child, including the 
child’s safety, permanency, health, well-being, and 
mental, emotional, and physical development. 
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‘‘(2) INTERSTATE
HOME
STUDY.—The term 
‘interstate home study’ means a home study con-
ducted by a State at the request of another State, 
to facilitate an adoptive or foster placement in the 
State of a child in foster care under the responsi-
bility of the State. 
‘‘(3) TIMELY INTERSTATE HOME STUDY.—The 
term ‘timely interstate home study’ means an inter-
state home study completed by a State if the State 
provides to the State that requested the study, with-
in 30 days after receipt of the request, a report on 
the results of the study. The preceding sentence 
shall not be construed to require the State to have 
completed, within the 30-day period, the parts of the 
home study involving the education and training of 
the prospective foster or adoptive parents. 
‘‘(h) LIMITATIONS ON AUTHORIZATION OF APPRO-
PRIATIONS.— 
‘‘(1) IN GENERAL.—For payments under this 
section, there are authorized to be appropriated to 
the Secretary— 
‘‘(A) $10,000,000 for fiscal year 2007; 
‘‘(B) $10,000,000 for fiscal year 2008; 
‘‘(C) $10,000,000 for fiscal year 2009; and 
‘‘(D) $10,000,000 for fiscal year 2010. 
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‘‘(2) 
AVAILABILITY.—Amounts 
appropriated 
under paragraph (1) are authorized to remain avail-
able until expended.’’. 
(c) REPEALER.—Effective October 1, 2010, section 
473B of the Social Security Act is repealed. 
SEC. 5. SENSE OF THE CONGRESS. 
It is the sense of the Congress that State agencies 
should fully cooperate with any court which has authority 
with respect to the placement of a child in foster care or 
for adoption, for the purpose of locating a parent of the 
child, and such cooperation should include making avail-
able all information obtained from the Federal Parent Lo-
cator Service. 
SEC. 6. CASEWORKER VISITS. 
(a) PURCHASE OF SERVICES IN INTERSTATE PLACE-
MENT CASES.—Section 475(5)(A)(ii) of the Social Secu-
rity Act (42 U.S.C. 675(5)(A)(ii)) is amended by striking 
‘‘or of the State in which the child has been placed’’ and 
inserting ‘‘of the State in which the child has been placed, 
or of a private agency under contract with either such 
State’’. 
(b) INCREASED VISITS.—Section 475(5)(A)(ii) of 
such Act (42 U.S.C. 675(5)(A)(ii)) is amended by striking 
‘‘12’’ and inserting ‘‘6’’. 
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SEC. 7. HEALTH AND EDUCATION RECORDS. 
Section 475 of the Social Security Act (42 U.S.C. 
675) is amended— 
(1) in paragraph (1)(C)— 
(A) by striking ‘‘To the extent available 
and accessible, the’’ and inserting ‘‘The’’; and 
(B) by inserting ‘‘the most recent informa-
tion available regarding’’ after ‘‘including’’; and 
(2) in paragraph (5)(D)— 
(A) by inserting ‘‘a copy of the record is’’ 
before ‘‘supplied’’; and 
(B) by inserting ‘‘, and is supplied to the 
child at no cost at the time the child leaves fos-
ter care if the child is leaving foster care by 
reason of having attained the age of majority 
under State law’’ before the semicolon. 
SEC. 8. RIGHT TO BE HEARD IN FOSTER CARE PRO-
CEEDINGS. 
(a) IN GENERAL.—Section 475(5)(G) of the Social 
Security Act (42 U.S.C. 675(5)(G)) is amended— 
(1) by striking ‘‘an opportunity’’ and inserting 
‘‘a right’’; 
(2) by striking ‘‘and opportunity’’ and inserting 
‘‘and right’’; and 
(3) by striking ‘‘review or hearing’’ each place 
it appears and inserting ‘‘proceeding’’. 
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(b) NOTICE
OF PROCEEDING.—Section 438(b) of 
such Act (42 U.S.C. 638(b)) is amended by inserting 
‘‘shall have in effect a rule requiring State courts to en-
sure that foster parents, pre-adoptive parents, and relative 
caregivers of a child in foster care under the responsibility 
of the State are notified of any proceeding to be held with 
respect to the child, and’’ after ‘‘highest State court’’. 
SEC. 9. COURT IMPROVEMENT. 
Section 438(a)(1) of the Social Security Act (42 
U.S.C. 629h(a)(1)) is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (C); and 
(2) by adding at the end the following: 
‘‘(E) that determine the best strategy to 
use to expedite the interstate placement of chil-
dren, including— 
‘‘(i) requiring courts in different 
States to cooperate in the sharing of infor-
mation; 
‘‘(ii) authorizing courts to obtain in-
formation and testimony from agencies 
and parties in other States without requir-
ing interstate travel by the agencies and 
parties; and 
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‘‘(iii) permitting the participation of 
parents, children, other necessary parties, 
and attorneys in cases involving interstate 
placement without requiring their inter-
state travel; and’’. 
SEC. 10. REASONABLE EFFORTS. 
(a) IN GENERAL.—Section 471(a)(15)(C) of the So-
cial Security Act (42 U.S.C. 671(a)(15)(C)) is amended 
by inserting ‘‘(including, if appropriate, through an inter-
state placement)’’ after ‘‘accordance with the permanency 
plan’’. 
(b) 
PERMANENCY
HEARING.—Section 
471(a)(15)(E)(i) of such Act (42 U.S.C. 671(a)(15)(E)(i)) 
is amended by inserting ‘‘, which considers in-State and 
out-of-State permanent placement options for the child,’’ 
before ‘‘shall’’. 
(c) 
CONCURRENT
PLANNING.—Section 
471(a)(15)(F) of such Act (42 U.S.C. 671(a)(15)(F)) is 
amended by inserting ‘‘, including identifying appropriate 
in-State and out-of-State placements’’ before ‘‘may’’. 
SEC. 11. CASE PLANS. 
Section 475(1)(E) of the Social Security Act (42 
U.S.C. 675(1)(E)) is amended by inserting ‘‘to facilitate 
orderly and timely in-State and interstate placements’’ be-
fore the period. 
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SEC. 12. CASE REVIEW SYSTEM. 
Section 475(5)(C) of the Social Security Act (42 
U.S.C. 675(5)(C) is amended— 
(1) by inserting ‘‘, in the case of a child who 
will not be returned to the parent, the hearing shall 
consider in-State and out-of-State placement op-
tions,’’ after ‘‘living arrangement’’; and 
(2) by inserting ‘‘the hearing shall determine’’ 
before ‘‘whether the’’. 
SEC. 13. USE OF INTERJURISDICTIONAL RESOURCES. 
Section 422(b)(12) of the Social Security Act (42 
U.S.C. 622(b)(12)) is amended— 
(1) by striking ‘‘develop plans for the’’ and in-
serting ‘‘make’’; 
(2) by inserting ‘‘(including through contracts 
for the purchase of services)’’ after ‘‘resources’’; and 
(3) by inserting ‘‘, and shall eliminate legal bar-
riers,’’ before ‘‘to facilitate’’. 
SEC. 14. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as otherwise provided in 
this section, the amendments made by this Act shall take 
effect on October 1, 2006, and shall apply to payments 
under parts B and E of title IV of the Social Security 
Act for calendar quarters beginning on or after such date, 
without regard to whether regulations to implement the 
amendments are promulgated by such date. 
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(b) DELAY PERMITTED IF STATE LEGISLATION RE-
QUIRED.—If the Secretary of Health and Human Services 
determines that State legislation (other than legislation 
appropriating funds) is required in order for a State plan 
under part B or E of title IV of the Social Security Act 
to meet the additional requirements imposed by the 
amendments made by a provision of this Act, the plan 
shall not be regarded as failing to meet any of the addi-
tional requirements before the 1st day of the 1st calendar 
quarter beginning after the first regular session of the 
State legislature that begins after the date of the enact-
ment of this Act. If the State has a 2-year legislative ses-
sion, each year of the session is deemed to be a separate 
regular session of the State legislature. 
Passed the House of Representatives May 24, 2006. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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Calendar No. 463 
109TH CONGRESS 
2D SESSION 
H. R. 5403 
AN ACT 
To improve protections for children and to hold 
States accountable for the safe and timely place-
ment of children across State lines, and for other 
purposes. 
JUNE 5, 2006 
Read the second time and placed on the calendar 
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