This report, 1 in a series of 10, contains the results of research on the law, literature, and interstate compacts pertinent to out-of-state placement of children. The report is organized into six chapters. Following an overview of the study in chapter 1, a synthesis of articles, books, and news stories in chapter 2 provides a historical perspective on out-of-state home care and changes in public attitude about out-of-state placement of children. Chapter 3 investigates the constitutionality of interstate placements and the legal authority of state laws for interstate placements. Chapter 4 describes the substantive and procedural elements of each of the three interstate compacts relating to the movement of children across state lines. In chapter 5, information on the case studies drawn during the project is provided, including why the case-study states were selected, the organization of services in each agency studied, and a summary of key findings and recommendations. Out-of-state placement policies, practices, and issues are also summarized, and pros and cons of current policies are examined. The final chapter draws together all major findings of this research on the out-of-state placement of children. It also summarizes the contents of the third volume produced by the study, which consists of policy essays commissioned by national studies within the overall project. (KC)