H. R. 5403
One Hundred Ninth Congress
of the
United States of America 
AT THE SECOND SESSION 
Begun and held at the City of Washington on Tuesday, 
the third day of January, two thousand and six 
An Act 
To improve protections for children and to hold States accountable for the safe 
and timely placement of children across State lines, and for other purposes.
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Safe and Timely Interstate 
Placement of Foster Children Act of 2006’’. 
SEC. 2. SENSE OF THE CONGRESS. 
It is the sense of the Congress that—
(1) the States should expeditiously ratify the revised Inter-
state Compact for the Placement of Children recently promul-
gated by the American Public Human Services Association; 
(2) this Act and the revised Interstate Compact for the 
Placement of Children should not apply to those seeking place-
ment in a licensed residential facility primarily to access clinical 
mental heath services; 
(3) the States should recognize and implement the dead-
lines for the completion and approval of home studies as pro-
vided in section 4 to move children more quickly into safe, 
permanent homes; and 
(4) Federal policy should encourage the safe and expedited 
placement of children into safe, permanent homes across State 
lines. 
SEC. 3. ORDERLY AND TIMELY PROCESS FOR INTERSTATE PLACEMENT 
OF CHILDREN. 
Section 471(a) of the Social Security Act (42 U.S.C. 671(a)) 
is amended—
(1) by striking ‘‘and’’ at the end of paragraph (23); 
(2) by striking the period at the end of paragraph (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, if incorporating with the procedures prescribed by 
paragraph (26), shall be considered 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 amended—
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(A) by striking ‘‘and’’ at the end of paragraph (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 receives from 
another State a request to conduct a study of a home 
environment for purposes of assessing the safety and suit-
ability of placing a child in the home, the State shall, 
directly or by contract—
‘‘(I) conduct and complete the study; and 
‘‘(II) return to the other State a report on the 
results of the study, which shall address the extent 
to which placement 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, 2008, if the State fails to comply with clause 
(i) within the 60-day period as a result of circumstances 
beyond the control of the State (such as a failure by a 
Federal agency to provide the results of a background 
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 interests of the child; except 
that 
‘‘(iii) this subparagraph shall not be construed to 
require the State to have completed, within the applicable 
period, the parts of the home study involving the education 
and training of the prospective foster or adoptive parents; 
‘‘(B) the State shall treat any report described 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, within 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 decision in reliance on the report would 
be contrary to the welfare of the child; and 
‘‘(C) the State shall not impose any restriction on the 
ability of a State agency administering, or supervising the 
administration of, a State program operated under a State 
plan approved under this part to contract with a private 
agency for the conduct of a home study described in 
subparagraph (A).’’. 
(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 Finance of the Senate a written report on—
(A) how frequently States need the extended 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;
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(B) the reasons given for utilizing the extended compli-
ance period; 
(C) the extent to which utilizing the extended compli-
ance period leads to the resolution of the circumstances 
beyond the control of the State; and 
(D) the actions taken by States and any relevant Fed-
eral agencies to resolve the need for the extended compli-
ance period. 
(3) SENSE OF THE CONGRESS.—It is the sense of the Con-
gress 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 section 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-eligible 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 
‘‘(3) based on data submitted and verified pursuant 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 sub-
section for a fiscal year if the State has provided to the Sec-
retary 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 respect to children in foster 
care under the responsibility of other States, and with 
respect to each such study, the identity of the other State 
involved; and 
‘‘(C) such other information as the Secretary may 
require in order to determine whether the State is a home 
study incentive-eligible State. 
‘‘(2) VERIFICATION OF DATA.—In determining the number 
of timely interstate home studies to be attributed to a State 
under this section, the Secretary shall check the data provided
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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 incen-
tive payment payable to a State for a fiscal 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, subject to paragraph (2). 
‘‘(2) PRO RATA ADJUSTMENT IF INSUFFICIENT FUNDS AVAIL-
ABLE.—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) payable 
under paragraph (3) of this subsection with respect to the 
preceding fiscal year), the amount of each such otherwise pay-
able incentive payment shall be reduced by a percentage equal 
to—
‘‘(A) the total of the amounts so made available (as 
so reduced); divided by 
‘‘(B) the total of such otherwise payable incentive pay-
ments. 
‘‘(3) APPROPRIATIONS AVAILABLE FOR UNPAID INCENTIVE PAY-
MENTS 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 reduc-
tions which applied to the State, subject to subparagraph 
(B) of this paragraph. 
‘‘(B) PRO
RATA
ADJUSTMENT
IF
INSUFFICIENT
FUNDS 
AVAILABLE.—If the total amount of payments otherwise 
payable under subparagraph (A) of this paragraph for a 
fiscal year exceeds the total of the amounts made available 
pursuant to subsection (h) for the fiscal year, the amount 
of each such payment shall be reduced by a percentage 
equal to—
‘‘(i) the total of the amounts so made available; 
divided by 
‘‘(ii) the total of such otherwise payable payments. 
‘‘(e) TWO-YEAR AVAILABILITY OF INCENTIVE PAYMENTS.—Pay-
ments to a State under this section in a fiscal year shall remain 
available for use by the State through the end of the next fiscal 
year. 
‘‘(f) LIMITATIONS ON USE OF INCENTIVE PAYMENTS.—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 purposes 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 conducted in accordance