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(1) by striking ‘‘and’’ at the end of paragraph 
(23); 
(2) by striking the period at the end of para-
graph (24) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(25) provide that the State shall have in effect 
procedures for the orderly and timely interstate 
placement of children; and procedures implemented 
in accordance with an interstate compact approved 
by the Secretary, if incorporating with the proce-
dures prescribed by paragraph (26), shall be consid-
ered to satisfy the requirement of this paragraph.’’. 
SEC. 4. HOME STUDIES. 
(a) ORDERLY PROCESS.—
(1) IN GENERAL.—Section 471(a) of the Social 
Security Act (42 U.S.C. 671(a)) is further amend-
ed—
(A) by striking ‘‘and’’ at the end of para-
graph (24); 
(B) by striking the period at the end of 
paragraph (25) and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(26) provides that—
‘‘(A)(i) within 60 days after the State re-
ceives from another State a request to conduct
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a study of a home environment for purposes of 
assessing the appropriateness of placing a child 
in the home, the State shall, directly or by con-
tract—
‘‘(I) conduct and complete the study; 
and 
‘‘(II) return to the other State a re-
port on the results of the study, which 
shall address the extent to which place-
ment in the home would meet the needs of 
the child; and 
‘‘(ii) in the case of a home study begun on 
or before September 30, 2006, if the State fails 
to comply with clause (i) within the 60-day pe-
riod as a result of circumstances beyond the 
control of the State (such as a failure by a Fed-
eral agency to provide the results of a back-
ground check, or the failure by any entity to 
provide completed medical forms, requested by 
the State at least 45 days before the end of the 
60-day period), the State shall have 75 days to 
comply with clause (i) if the State documents 
the circumstances involved and certifies that 
completing the home study is in the best inter-
ests of the child; except that
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‘‘(iii) this subparagraph shall not be con-
strued to require the State to have completed, 
within the applicable period, the parts of the 
home study involving the education and train-
ing of the prospective foster or adoptive par-
ents; 
‘‘(B) the State shall treat any report de-
scribed in subparagraph (A) that is received 
from another State or an Indian tribe (or from 
a private agency under contract with another 
State) as meeting any requirements imposed by 
the State for the completion of a home study 
before placing a child in the home, unless, with-
in 14 days after receipt of the report, the State 
determines, based on grounds that are specific 
to the content of the report, that making a de-
cision in reliance on the report would be con-
trary to the welfare of the child; and 
‘‘(C) the State shall not impose any re-
striction on the ability of a State agency admin-
istering, or supervising the administration of, a 
State program operated under a State plan ap-
proved under this part to contract with a pri-
vate agency for the conduct of a home study de-
scribed in subparagraph (A).’’.
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(2) 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 
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—
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‘‘(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 
‘‘(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; 
and 
‘‘(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.
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‘‘(2) VERIFICATION OF DATA.—In determining 
the number of timely interstate home studies to be 
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—
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‘‘(A) the total of the amounts so made 
available (as so reduced); divided by 
‘‘(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—
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‘‘(i) the total of the amounts so made 
available; divided by 
‘‘(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 a study of a home environment, conducted in 
accordance with applicable requirements of the State 
in which the home is located, for the purpose of as-
sessing whether placement of a child in the home 
would be appropriate for the child.
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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 relative placement in 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 2005; 
‘‘(B) $10,000,000 for fiscal year 2006; 
‘‘(C) $10,000,000 for fiscal year 2007; and 
‘‘(D) $10,000,000 for fiscal year 2008.
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‘‘(2) 
AVAILABILITY.—Amounts 
appropriated 
under paragraph (1) are authorized to remain avail-
able until expended.’’. 
(c) REPEALER.—Effective October 1, 2008, section 
473B of the Social Security Act is repealed. 
SEC. 
5. 
REQUIREMENT 
TO 
COMPLETE 
BACKGROUND 
CHECKS BEFORE APPROVAL OF ANY FOSTER 
OR ADOPTIVE PLACEMENT AND TO CHECK 
CHILD ABUSE REGISTRIES; SUSPENSION AND 
SUBSEQUENT ELIMINATION OF OPT-OUT. 
(a) REQUIREMENT
TO
COMPLETE
BACKGROUND 
CHECKS BEFORE APPROVAL OF ANY FOSTER OR ADOP-
TIVE PLACEMENT AND TO CHECK CHILD ABUSE REG-
ISTRIES; SUSPENSION OF OPT-OUT.—
(1) REQUIREMENT
TO
CHECK
CHILD
ABUSE 
REGISTRIES.—Section 471(a)(20) of the Social Se-
curity Act (42 U.S.C. 671(a)(20)) is amended—
(A) in subparagraph (A)—
(i) in the matter preceding clause (i), 
by striking ‘‘on whose behalf foster care 
maintenance payments or adoption assist-
ance payments are to be made’’ and insert-
ing ‘‘regardless of whether foster care 
maintenance payments or adoption assist-
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ance payments are to be made on behalf of 
the child’’; 
(ii) in each of clauses (i) and (ii), by 
inserting ‘‘involving a child on whose be-
half such payments are to be so made’’ 
after ‘‘in any case’’; and 
(iii) by striking ‘‘and’’ at the end of 
clause (ii); and 
(B) by adding ‘‘and’’ at the end of sub-
paragraph (B); and 
(C) by adding at the end the following: 
‘‘(C) provides that the State shall—
‘‘(i) check any child abuse and neglect 
registry maintained by the State for infor-
mation on any prospective foster or adop-
tive parent and on any other adult living in 
the home of such a prospective parent, and 
request any other State in which any such 
prospective parent or other adult has re-
sided in the preceding 5 years, to enable 
the State to check any child abuse and ne-
glect registry maintained by such other 
State for such information, before the pro-
spective foster or adoptive parent may be 
finally approved for placement of a child,