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.

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 
    Interstate Compact for the Placement of Children recently 
    promulgated 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 placement 
    in a licensed residential facility primarily to access clinical 
    mental heath services;
        (3) the States should recognize and implement the deadlines for 
    the completion and approval of home studies as provided 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--
            (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 
        suitability 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;
            (B) the reasons given for utilizing the extended compliance 
        period;
            (C) the extent to which utilizing the extended 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 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 
    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 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 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 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 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) payable under paragraph (3) of this subsection 
    with respect 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
            ``(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 
        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.--Payments 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 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.
        ``(2) Interstate home study.--The term `interstate home study' 
    means a home study conducted 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 responsibility of the State.
        ``(3) Timely interstate home study.--The term `timely 
    interstate home study' means an interstate home study completed by 
    a State if the State provides to the State that requested the 
    study, within 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 Appropriations.--
        ``(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.
        ``(2) Availability.--Amounts appropriated under paragraph (1) 
    are authorized to remain available 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 available all information obtained from the Federal Parent 
Locator Service.

SEC. 6. CASEWORKER VISITS.

    (a) Purchase of Services in Interstate Placement Cases.--Section 
475(5)(A)(ii) of the Social Security 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''.

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 information 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 foster 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 PROCEEDINGS.

    (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''.
    (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 ensure 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 subparagraph (C); and
        (2) by adding at the end the following:
            ``(E) that determine the best strategy to use to expedite 
        the interstate placement of children, including--
                ``(i) requiring courts in different States to cooperate 
            in the sharing of information;
                ``(ii) authorizing courts to obtain information and 
            testimony from agencies and parties in other States without 
            requiring interstate travel by the agencies and parties; 
            and
                ``(iii) permitting the participation of parents, 
            children, other necessary parties, and attorneys in cases 
            involving interstate placement without requiring their 
            interstate travel; and''.

SEC. 10. REASONABLE EFFORTS.

    (a) In General.--Section 471(a)(15)(C) of the Social Security Act 
(42 U.S.C. 671(a)(15)(C)) is amended by inserting ``(including, if 
appropriate, through an interstate 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'' before the period.

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 options,'' 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 inserting 
    ``make'';
        (2) by inserting ``(including through contracts for the 
    purchase of services)'' after ``resources''; and
        (3) by inserting ``, and shall eliminate legal barriers,'' 
    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.
    (b) Delay Permitted If State Legislation Required.--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 additional 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 enactment of this Act. If the State has a 2-year legislative 
session, each year of the session is deemed to be a separate regular 
session of the State legislature.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary: Safe and Timely Interstate Placement of Foster Children Act of 2006 - Amends the Social Security Act to require each state plan for foster care and adoption assistance to provide that the state shall: (1) have in effect procedures for orderly and timely interstate placement of children; (2) complete home studies requested by another state within a specified period; (3) accept such studies received from another state; and (4) not impose any restrictions on contracting with a private agency to conduct such a study.

Directs the Secretary of Health and Human Services to make grants for timely interstate home study incentive payments to states that have approved plans and that have completed, and provided the Secretary a report on, such studies.

Expresses the sense of Congress that state agencies should cooperate with courts which have 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.

 Amends the definition of "case review system" to: (1) increase the required frequency of state caseworker visits to a child who is placed in foster care outside the state in which the child's parents reside; (2) require a child's health and education record to be supplied to the child at no cost when he/she leaves foster care by reason of having attained the age of majority under state law; and (3) provide for a foster parent's right (currently, opportunity) to be heard in any proceeding (currently, review or hearing) respecting their foster child. Requires state courts to ensure that foster parents, pre-adoptive parents, and relative caregivers of a child in foster care are notified of any such proceedings.

Includes among the purposes of grants to the highest state courts the assessment of the court's role in carrying out state laws requiring proceedings that determine the best strategy to use to expedite the interstate placement of children.

Provides for consideration of out-of-state placements in permanency hearings, case plans, and case reviews.

Requires each plan for child welfare services to include the assurance that the state will eliminate legal barriers to facilitate timely adoptive or permanent placements for children.