1.1.................... moves to amend H.F. No. 1522 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 256.991, is amended to read:
1.4256.991 RULES.
1.5The commissioner of human services may promulgate rules as necessary to
1.6implement sections 256.01, subdivision 2; 256.82, subdivision 3; 256.966, subdivision 1;
1.7256D.03, subdivisions 3, 4, 6, and 7 ; and 261.23. The commissioner shall promulgate
1.8rules to establish standards and criteria for deciding which medical assistance services
1.9require prior authorization and for deciding whether a second medical opinion is required
1.10for an elective surgery. The commissioner shall promulgate rules as necessary to establish
1.11the methods and standards for determining inappropriate utilization of medical assistance
1.12services.
1.13EFFECTIVE DATE.This section is effective January 1, 2011.

1.14    Sec. 2. Minnesota Statutes 2008, section 256J.21, subdivision 2, is amended to read:
1.15    Subd. 2. Income exclusions. The following must be excluded in determining a
1.16family's available income:
1.17    (1) payments for basic care, difficulty of care, and clothing allowances received for
1.18providing family foster care to children or adults under Minnesota Rules, parts 9555.5050
1.19to 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, and payments received and used
1.20for care and maintenance of a third-party beneficiary who is not a household member;
1.21    (2) reimbursements for employment training received through the Workforce
1.22Investment Act of 1998, United States Code, title 20, chapter 73, section 9201;
1.23    (3) reimbursement for out-of-pocket expenses incurred while performing volunteer
1.24services, jury duty, employment, or informal carpooling arrangements directly related to
1.25employment;
2.1    (4) all educational assistance, except the county agency must count graduate student
2.2teaching assistantships, fellowships, and other similar paid work as earned income and,
2.3after allowing deductions for any unmet and necessary educational expenses, shall
2.4count scholarships or grants awarded to graduate students that do not require teaching
2.5or research as unearned income;
2.6    (5) loans, regardless of purpose, from public or private lending institutions,
2.7governmental lending institutions, or governmental agencies;
2.8    (6) loans from private individuals, regardless of purpose, provided an applicant or
2.9participant documents that the lender expects repayment;
2.10    (7)(i) state income tax refunds; and
2.11    (ii) federal income tax refunds;
2.12    (8)(i) federal earned income credits;
2.13    (ii) Minnesota working family credits;
2.14    (iii) state homeowners and renters credits under chapter 290A; and
2.15    (iv) federal or state tax rebates;
2.16    (9) funds received for reimbursement, replacement, or rebate of personal or real
2.17property when these payments are made by public agencies, awarded by a court, solicited
2.18through public appeal, or made as a grant by a federal agency, state or local government,
2.19or disaster assistance organizations, subsequent to a presidential declaration of disaster;
2.20    (10) the portion of an insurance settlement that is used to pay medical, funeral, and
2.21burial expenses, or to repair or replace insured property;
2.22    (11) reimbursements for medical expenses that cannot be paid by medical assistance;
2.23    (12) payments by a vocational rehabilitation program administered by the state
2.24under chapter 268A, except those payments that are for current living expenses;
2.25    (13) in-kind income, including any payments directly made by a third party to a
2.26provider of goods and services;
2.27    (14) assistance payments to correct underpayments, but only for the month in which
2.28the payment is received;
2.29    (15) payments for short-term emergency needs under section 256J.626, subdivision
2.302 ;
2.31    (16) funeral and cemetery payments as provided by section 256.935;
2.32    (17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in
2.33a calendar month;
2.34    (18) any form of energy assistance payment made through Public Law 97-35,
2.35Low-Income Home Energy Assistance Act of 1981, payments made directly to energy
3.1providers by other public and private agencies, and any form of credit or rebate payment
3.2issued by energy providers;
3.3    (19) Supplemental Security Income (SSI), including retroactive SSI payments and
3.4other income of an SSI recipient, except as described in section 256J.37, subdivision 3b;
3.5    (20) Minnesota supplemental aid, including retroactive payments;
3.6    (21) proceeds from the sale of real or personal property;
3.7    (22) state adoption assistance payments under section 259.67, adoption assistance
3.8payments under chapter 256O, and up to an equal amount of county adoption assistance
3.9payments;
3.10    (23) state-funded family subsidy program payments made under section 252.32
3.11to help families care for children with developmental disabilities, consumer support
3.12grant funds under section 256.476, and resources and services for a disabled household
3.13member under one of the home and community-based waiver services programs under
3.14chapter 256B;
3.15    (24) interest payments and dividends from property that is not excluded from and
3.16that does not exceed the asset limit;
3.17    (25) rent rebates;
3.18    (26) income earned by a minor caregiver, minor child through age 6, or a minor
3.19child who is at least a half-time student in an approved elementary or secondary education
3.20program;
3.21    (27) income earned by a caregiver under age 20 who is at least a half-time student in
3.22an approved elementary or secondary education program;
3.23    (28) MFIP child care payments under section 119B.05;
3.24    (29) all other payments made through MFIP to support a caregiver's pursuit of
3.25greater economic stability;
3.26    (30) income a participant receives related to shared living expenses;
3.27    (31) reverse mortgages;
3.28    (32) benefits provided by the Child Nutrition Act of 1966, United States Code, title
3.2942, chapter 13A, sections 1771 to 1790;
3.30    (33) benefits provided by the women, infants, and children (WIC) nutrition program,
3.31United States Code, title 42, chapter 13A, section 1786;
3.32    (34) benefits from the National School Lunch Act, United States Code, title 42,
3.33chapter 13, sections 1751 to 1769e;
3.34    (35) relocation assistance for displaced persons under the Uniform Relocation
3.35Assistance and Real Property Acquisition Policies Act of 1970, United States Code, title
4.142, chapter 61, subchapter II, section 4636, or the National Housing Act, United States
4.2Code, title 12, chapter 13, sections 1701 to 1750jj;
4.3    (36) benefits from the Trade Act of 1974, United States Code, title 19, chapter
4.412, part 2, sections 2271 to 2322;
4.5    (37) war reparations payments to Japanese Americans and Aleuts under United
4.6States Code, title 50, sections 1989 to 1989d;
4.7    (38) payments to veterans or their dependents as a result of legal settlements
4.8regarding Agent Orange or other chemical exposure under Public Law 101-239, section
4.910405, paragraph (a)(2)(E);
4.10    (39) income that is otherwise specifically excluded from MFIP consideration in
4.11federal law, state law, or federal regulation;
4.12    (40) security and utility deposit refunds;
4.13    (41) American Indian tribal land settlements excluded under Public Laws 98-123,
4.1498-124, and 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech
4.15Lake, and Mille Lacs reservations and payments to members of the White Earth Band,
4.16under United States Code, title 25, chapter 9, section 331, and chapter 16, section 1407;
4.17    (42) all income of the minor parent's parents and stepparents when determining the
4.18grant for the minor parent in households that include a minor parent living with parents or
4.19stepparents on MFIP with other children;
4.20    (43) income of the minor parent's parents and stepparents equal to 200 percent of the
4.21federal poverty guideline for a family size not including the minor parent and the minor
4.22parent's child in households that include a minor parent living with parents or stepparents
4.23not on MFIP when determining the grant for the minor parent. The remainder of income is
4.24deemed as specified in section 256J.37, subdivision 1b;
4.25    (44) payments made to children eligible for relative custody guardianship assistance
4.26under section 257.85 chapter 256O;
4.27    (45) vendor payments for goods and services made on behalf of a client unless the
4.28client has the option of receiving the payment in cash;
4.29    (46) the principal portion of a contract for deed payment; and
4.30    (47) cash payments to individuals enrolled for full-time service as a volunteer under
4.31AmeriCorps programs including AmeriCorps VISTA, AmeriCorps State, AmeriCorps
4.32National, and AmeriCorps NCCC.
4.33EFFECTIVE DATE.This section is effective January 1, 2011.

4.34    Sec. 3. Minnesota Statutes 2008, section 256J.24, subdivision 3, is amended to read:
5.1    Subd. 3. Individuals who must be excluded from an assistance unit. (a) The
5.2following individuals who are part of the assistance unit determined under subdivision 2
5.3are ineligible to receive MFIP:
5.4(1) individuals who are recipients of Supplemental Security Income or Minnesota
5.5supplemental aid;
5.6(2) individuals disqualified from the food stamp or food support program or MFIP,
5.7until the disqualification ends; and
5.8(3) children on whose behalf eligible for Northstar Care for Children under chapter
5.9256O when the caregiver receives federal, state or local foster care; guardianship
5.10assistance; or adoption assistance payments are made for them, except as provided in
5.11sections 256J.13, subdivision 2, and 256J.74, subdivision 2; and.
5.12(4) children receiving ongoing monthly adoption assistance payments under section
5.13259.67.
5.14(b) The exclusion of a person under this subdivision does not alter the mandatory
5.15assistance unit composition.
5.16EFFECTIVE DATE.This section is effective January 1, 2011.

5.17    Sec. 4. Minnesota Statutes 2008, section 256J.24, subdivision 4, is amended to read:
5.18    Subd. 4. Individuals who may elect to be included in the assistance unit. (a) The
5.19minor child's eligible caregiver may choose to be in the assistance unit, if the caregiver
5.20is not required to be in the assistance unit under subdivision 2. If the eligible caregiver
5.21chooses to be in the assistance unit, that person's spouse must also be in the unit.
5.22(b) Any minor child not related as a sibling, stepsibling, or adopted sibling to the
5.23minor child in the unit, but for whom there is an eligible caregiver may elect to be in
5.24the unit.
5.25(c) A foster care provider of a minor child who is receiving federal, state, or
5.26local foster care maintenance payments benefits for a child eligible for Northstar Care
5.27for Children under chapter 256O may elect to receive MFIP if the provider meets the
5.28definition of caregiver under section 256J.08, subdivision 11. If the provider chooses to
5.29receive MFIP, the spouse of the provider must also be included in the assistance unit with
5.30the provider. The provider and spouse are eligible for assistance MFIP even if the only
5.31minor child living in the provider's home is receiving foster care maintenance payments
5.32benefits from Northstar Care for Children.
5.33(d) The adult caregiver or caregivers of a minor parent are eligible to be a separate
5.34assistance unit from the minor parent and the minor parent's child when:
5.35(1) the adult caregiver or caregivers have no other minor children in the household;
6.1(2) the minor parent and the minor parent's child are living together with the adult
6.2caregiver or caregivers; and
6.3(3) the minor parent and the minor parent's child receive MFIP, or would be eligible
6.4to receive MFIP, if they were not receiving SSI benefits.
6.5EFFECTIVE DATE.This section is effective January 1, 2011.

6.6    Sec. 5. [256O.001] CITATION.
6.7Sections 256O.001 to 256O.270 may be cited as the "Northstar Care for Children
6.8Act." Sections 256O.001 to 256O.270 establish Northstar Care for Children, which
6.9authorizes certain benefits to support children in need who are served by the Minnesota
6.10child welfare system and who are the responsibility of the state of Minnesota, local county
6.11social service agencies, or tribal social service agencies under section 256.01, subdivision
6.1214b. A child eligible for the benefit has experienced a child welfare intervention that has
6.13resulted in the child being placed away from the child's parents' care and is receiving
6.14foster care services under chapter 260B, 260C, or 260D or is in the permanent care of
6.15relatives through a transfer of permanent legal and physical custody, or in the permanent
6.16care of adoptive parents.

6.17    Sec. 6. [256O.01] PUBLIC POLICY.
6.18(a) The legislature hereby declares that the public policy of this state is to keep
6.19children safe from harm and to ensure that when children suffer harmful or injurious
6.20experiences in their lives, appropriate services are immediately available to keep them safe.
6.21(b) Children do best in permanent, safe, nurturing homes with long-term
6.22relationships with adults. Whenever safely possible, children are best served when they
6.23can be nurtured and raised by their parents. Where services cannot be provided to allow a
6.24child to remain safely at home, an out-of-home placement may be required. When this
6.25occurs, reunification should be sought if it can be accomplished safely. When it is not
6.26possible for parents to provide safety and permanency for their children, an alternative
6.27permanent home must quickly be made available to the child, drawing from kinship
6.28sources whenever possible.
6.29(c) Minnesota understands the importance of having a comprehensive approach to
6.30temporary out-of-home care and to permanent homes for children who cannot be reunited
6.31with their families. It is critical that stable benefits be available to caregivers to ensure
6.32that the child's needs can be met whether the child's situation and best interests call for
6.33temporary foster care, transfer of permanent legal and physical custody to a relative, or
6.34adoption. Northstar Care for Children focuses on the child's needs and strengths, and
6.35the actual level of care provided by the caregiver, without consideration for the type of
7.1placement setting. In this way, caregivers are not faced with the burden of making specific
7.2long-term decisions based upon competing financial incentives.

7.3    Sec. 7. [256O.02] DEFINITIONS.
7.4    Subdivision 1. Scope. For the purposes of sections 256O.001 to 256O.270, the
7.5terms defined in this section have the meanings given them.
7.6    Subd. 2. Adoption assistance. "Adoption assistance" means financial support,
7.7medical coverage, or both, provided under agreement with the legally responsible agency
7.8and the commissioner to the parents of an adoptive child whose special needs would
7.9otherwise make it difficult to place the child for adoption, to assist with the cost of caring
7.10for the child.
7.11    Subd. 3. Assessment. "Assessment" means the process under section 256O.240 by
7.12which is determined the benefits an eligible child may receive under section 256O.250.
7.13    Subd. 4. At-risk child. "At-risk child" means a child who does not have a
7.14documented disability but who is at risk of developing a physical, mental, emotional, or
7.15behavioral disability based on being related within the first or second degree to persons
7.16who have an inheritable physical, mental, emotional, or behavioral disabling condition,
7.17or from a background which has the potential to cause the child to develop a physical,
7.18mental, emotional, or behavioral disability. The disability that the child is at risk of
7.19developing must be likely to manifest during childhood. A high-risk child under section
7.20259.67 is considered an at-risk child.
7.21    Subd. 5. Basic rate. "Basic rate" means the maintenance payment made on behalf
7.22of a child to support the costs caregivers incur to meet a child's needs consistent with the
7.23care parents customarily provide, including: food, clothing, shelter, daily supervision,
7.24school supplies, child's personal incidentals, reasonable travel to the child's home for
7.25visitation, and transportation needs associated with providing the listed items.
7.26    Subd. 6. Caregiver. "Caregiver" means the foster parent of a child in foster care
7.27who meets the requirements of emergency relative placement, a licensed foster parent
7.28under chapter 245A, or approved by the tribe; the relative custodian; or the adoptive parent
7.29who has legally adopted a child.
7.30    Subd. 7. Child-placing agency. "Child-placing agency" means an agency licensed
7.31under section 245A.03, subdivision 1, clauses (2) and (3).
7.32    Subd. 8. Commissioner. "Commissioner" means the commissioner of human
7.33services.
8.1    Subd. 9. County board. "County board" means the board of county commissioners
8.2in each county.
8.3    Subd. 10. Disability. "Disability" means a professionally documented physical,
8.4mental, emotional, or behavioral impairment that substantially limits one or more major
8.5life activity. Major life activities include, but are not limited to: thinking, walking,
8.6hearing, breathing, working, seeing, speaking, communicating, learning, developing and
8.7maintaining healthy relationships, safely caring for oneself, and performing manual tasks.
8.8The nature, duration, and severity of the impairment must be used in determining if the
8.9limitation is substantial.
8.10    Subd. 11. Foster care. "Foster care" means foster care as described either in section
8.11260B.007, subdivision 7, or 260C.007, subdivision 18.
8.12    Subd. 12. Guardianship assistance. "Guardianship assistance" means financial
8.13support, medical coverage, or both, provided under agreement with the legally responsible
8.14agency and the commissioner to a relative who has received permanent legal and physical
8.15custody of a child, to assist with the cost of caring for the child.
8.16    Subd. 13. Human services board. "Human services board" means a board
8.17established under section 402.02; Laws 1974, chapter 293; or Laws 1976, chapter 340.
8.18    Subd. 14. Legally responsible agency. "Legally responsible agency" means the
8.19Minnesota agency that is assigned responsibility for placement, care, and supervision
8.20of the child through a court order, voluntary placement agreement, or voluntary
8.21relinquishment. These agencies include both local social service agencies under section
8.22393.07 and tribal social service agencies authorized in section 256.01, subdivision 14b,
8.23and Minnesota tribes when legal responsibility is transferred to the tribal social service
8.24agency through a Minnesota district court order.
8.25    Subd. 15. Maintenance payments. "Maintenance payments" means the basic
8.26rate plus any supplemental difficulty of care rate under Northstar Care for Children. It
8.27specifically does not include the cost of initial clothing allowance, payment for social
8.28services, or administrative payments to a child-placing agency.
8.29    Subd. 16. Permanent legal and physical custody. "Permanent legal and
8.30physical custody" means permanent legal and physical custody ordered by a Minnesota
8.31juvenile court under section 260C.201, subdivision 11, or for children under tribal
8.32court jurisdiction, similar provision under tribal code which means that the individual
8.33responsible for the child has responsibility for the protection, education, care, and control
8.34of the child and decision making on behalf of the child.
9.1    Subd. 17. Reassessment. "Reassessment" means an update of the previous
9.2assessment through the process under section 256O.240 for a child who has been
9.3continuously eligible for this benefit.
9.4    Subd. 18. Relative. "Relative" as described in section 260C.007, subdivision 27,
9.5means a person related to the child by blood, marriage, or adoption, or an individual who
9.6is an important friend with whom the child has resided or had significant contact. For an
9.7Indian child, relative includes members of the extended family as defined by the law or
9.8custom of the Indian child's tribe or, in the absence of law or custom, nieces, nephews,
9.9or first or second cousins, as provided in the Indian Child Welfare Act of 1978, United
9.10States Code, title 25, section 1903.
9.11    Subd. 19. Relative custodian. "Relative custodian" means a person to whom
9.12permanent legal and physical custody of a child has been transferred under section
9.13260C.201, subdivision 11, or for children under tribal court jurisdiction, a similar
9.14provision under tribal code which means that the individual responsible for the child has
9.15responsibility for the protection, education, care, and control of the child and decision
9.16making on behalf of the child.
9.17    Subd. 20. Supplemental difficulty of care rate. "Supplemental difficulty of care
9.18rate" means the supplemental rating, if any, as determined by the legally responsible
9.19agency or the state, based upon an assessment under section 256O.240. The supplemental
9.20rate supports activities consistent with the care a parent would provide a child with special
9.21needs and not the equivalent of a purchased service. The rate considers the capacity
9.22and intensity of the activities associated with parenting duties provided in the home to
9.23nurture the child, preserve the child's connections, and support the child's functioning in
9.24the home and community.

9.25    Sec. 8. [256O.200] NORTHSTAR CARE FOR CHILDREN.
9.26    Subdivision 1. Eligibility. A child is eligible for Northstar Care for Children if
9.27the child is eligible for:
9.28(1) foster care under section 256O.210;
9.29(2) guardianship assistance under section 256O.220; or
9.30(3) adoption assistance under section 256O.230.
9.31    Subd. 2. Assessments and agreements. A child eligible for Northstar Care for
9.32Children shall receive an assessment under section 256O.240. For a child eligible for
9.33guardianship assistance or adoption assistance, negotiations with caregivers and the
9.34development of a written, binding agreement must be conducted under section 256O.240.
10.1    Subd. 3. Benefits and payments. A child eligible for Northstar Care for Children
10.2is entitled to benefits specified in section 256O.250, based primarily on assessments,
10.3negotiations, and agreements under section 256O.240. Although paid to the caregiver,
10.4these benefits are considered benefits of the child rather than of the caregiver.
10.5    Subd. 4. Shared cost of care. The cost of Northstar Care for Children must be
10.6shared among the federal government, state, counties of financial responsibility, and
10.7certain tribes as specified in section 256O.260.
10.8    Subd. 5. Administration and appeals. The commissioner and legally responsible
10.9agency shall administer Northstar Care for Children according to section 256O.270. The
10.10notification and fair hearing process is defined in section 256O.270.
10.11    Subd. 6. Transition. Provisions for the transition to Northstar Care for Children are
10.12specified in sections 256O.240, subdivision 13, and 256O.270, subdivisions 2 and 7 to
10.1310. Additional provisions for children in foster care are specified in section 256O.210,
10.14subdivision 5; for children in relative custody assistance under section 257.85 are specified
10.15in section 256O.220, subdivision 8; and for children in adoption assistance under section
10.16259.67 are specified in section 256O.230, subdivision 14.

10.17    Sec. 9. [256O.210] FOSTER CARE ASSISTANCE ELIGIBILITY.
10.18    Subdivision 1. General eligibility requirements. This section establishes the
10.19eligibility for benefits when children are placed in foster care.
10.20(a) A child that meets the requirements of subdivision 2 on or after January 1, 2011,
10.21is eligible for the benefit.
10.22(b) The benefit to the child under Northstar Care for Children, if any, is determined
10.23under sections 256O.240 and 256O.250.
10.24(c) When a child is eligible for additional services, subdivisions 3 and 4 govern
10.25the co-occurrence of program eligibility.
10.26(d) The child's benefit is individually assessed and the information assessment is
10.27used to determine future eligibility for guardianship assistance and adoption assistance,
10.28if needed.
10.29(e) The county of financial responsibility, or, for children in the American Indian
10.30Child Welfare Initiative, the responsible tribal social service agency authorized in section
10.31256.01, subdivision 14b, shall make a title IV-E eligibility determination for all foster
10.32children in Northstar Care for Children. To be eligible for title IV-E foster care, a child
10.33must also meet any additional criteria specified in section 472 of the Social Security Act.
10.34    Subd. 2. Placement in foster care. To be eligible for Northstar Care for Children,
10.35all of the following criteria must be met:
11.1(1) the child is placed away from the child's legal parents or guardian and a legally
11.2responsible agency has placement authority and care responsibility;
11.3(2) the legally responsible agency has authority to place the child with a voluntary
11.4placement agreement or a court order, consistent with section 260C.001, 260B.175, or
11.5260D.01, or continued eligibility consistent with section 260C.451; and
11.6(3) the child is placed in an emergency relative placement under section 245A.035,
11.7a licensed foster family setting, foster residence setting, or treatment foster care setting
11.8licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, or a family foster home
11.9approved by a tribal agency.
11.10    Subd. 3. Minor parent. A child who is a minor parent in placement with the
11.11minor parent's child in the same home is eligible for the benefit. The benefit is limited
11.12to the minor parent unless the legally responsible agency has separate legal authority
11.13for placement of the minor parent's child.
11.14    Subd. 4. Excluded activities. The basic and supplemental difficulty of care
11.15payments represent costs for activities similar in nature to those expected of parents and do
11.16not cover services rendered by the licensed foster parent or facility or any administrative
11.17cost. The county of financial responsibility, or, for children in the American Indian Child
11.18Welfare Initiative, the responsible tribal social service agency authorized in section
11.19256.01, subdivision 14b, may pay a fee for specific services provided by the licensed
11.20foster parent or facility. Any foster parent or residence setting must be able to distinguish
11.21the service from the daily care of the child, as assessed in the universal assessment under
11.22section 256O.240. Administrative costs or fees are not part of this benefit.
11.23    Subd. 5. Transition from pre-2011. All children in family foster care who are the
11.24financial responsibility of local social service agencies under section 393.07 or tribal
11.25social service agencies authorized in section 256.01, subdivision 14b, are eligible for
11.26Northstar Care for Children. All eligible foster children must be assessed according to
11.27section 256O.240 and then transitioned into Northstar Care for Children according to
11.28the process in section 256O.270.

11.29    Sec. 10. [256O.220] GUARDIANSHIP ASSISTANCE ELIGIBILITY.
11.30    Subdivision 1. General eligibility requirements. (a) To be eligible for guardianship
11.31assistance, there must be a judicial determination under section 260C.201, subdivision 11,
11.32paragraph (c), that a transfer of permanent legal and physical custody to a relative or, for
11.33a child under tribal jurisdiction, a similar provision under tribal code which means that
11.34the individual responsible for the child has responsibility for the protection, education,
12.1care, and control of the child and decision making on behalf of the child, is in the child's
12.2best interest. Additionally, a child must:
12.3(1) have been removed from the child's home pursuant to a voluntary placement
12.4agreement or court order;
12.5(2)(i) have resided in foster care for at least six consecutive months in the home
12.6of the prospective relative custodian; or
12.7(ii) have received an exemption from the requirement in item (i) from the court based
12.8on a determination that an expedited move to permanency is in the child's best interest;
12.9(3) meet the judicial determination regarding permanency requirements in
12.10subdivision 2;
12.11(4) meet the applicable citizenship and immigration requirements in subdivision
12.123; and
12.13(5) have been consulted regarding the proposed transfer of permanent legal and
12.14physical custody to a relative, if the child has attained 14 years of age or is expected to
12.15attain 14 years of age prior to the transfer of permanent legal and physical custody.
12.16(b) In addition to the requirements in paragraph (a), the child's prospective relative
12.17custodian or custodians must meet the applicable background study requirements in
12.18subdivision 4.
12.19(c) The legally responsible agency shall make a title IV-E guardianship assistance
12.20eligibility determination for each child. To be eligible for title IV-E guardianship
12.21assistance, a child must also meet any additional criteria specified in section 473(d) of
12.22the Social Security Act. A child who meets all eligibility criteria, except those specific
12.23to title IV-E guardianship assistance, is entitled to guardianship assistance paid through
12.24state funds.
12.25    Subd. 2. Judicial determinations regarding permanency. To be eligible for
12.26guardianship assistance, the following judicial determinations regarding permanency must
12.27be made for the child prior to the transfer of permanent legal and physical custody:
12.28(1) a judicial determination that reunification and adoption are not appropriate
12.29permanency options for the child; and
12.30(2) a judicial determination that the child demonstrates a strong attachment to the
12.31prospective relative custodian and the relative custodian has a strong commitment to
12.32caring permanently for the child.
12.33    Subd. 3. Citizenship and immigration status. (a) A child must be a citizen of the
12.34United States or otherwise eligible for federal public benefits according to the Personal
12.35Responsibility and Work Opportunity Reconciliation Act of 1996, as amended, in order to
12.36be eligible for title IV-E guardianship assistance.
13.1(b) A child must be a citizen of the United States or meet the qualified alien
13.2requirements as defined in the Personal Responsibility and Work Opportunity
13.3Reconciliation Act of 1996, as amended, in order to be eligible for state-funded
13.4guardianship assistance.
13.5    Subd. 4. Background study. (a) A background study must be completed on each
13.6prospective relative custodian. If a background study on the prospective relative custodian
13.7was previously completed under section 245A.04 for the purposes of foster care licensure,
13.8that background study may be used for the purposes of this section, provided that the
13.9background study is current at the time of the application for guardianship assistance.
13.10If the background study reveals:
13.11(1) a felony conviction at any time for child abuse or neglect;
13.12(2) spousal abuse;
13.13(3) a crime against children, including child pornography;
13.14(4) a crime involving violence, including rape, sexual assault, or homicide, but not
13.15including other physical assault or battery; or
13.16(5) a felony conviction within the past five years for physical assault, battery, or a
13.17drug-related offense,
13.18the prospective relative custodian is prohibited from receiving title IV-E guardianship
13.19assistance payments on behalf of an otherwise eligible child.
13.20(b) An otherwise eligible prospective relative custodian who possesses one of the
13.21felony convictions in paragraph (a) may receive state-funded guardianship assistance
13.22payments on behalf of an otherwise eligible child if the court has made a judicial
13.23determination that:
13.24(1) the legally responsible agency has thoroughly reviewed the felony conviction
13.25and has considered the impact, if any, that the conviction may have on the child's safety,
13.26well-being, and permanency;
13.27(2) the conviction likely does not pose a current or future safety risk to the child;
13.28(3) there is no other available permanency resource that is appropriate for the
13.29child; and
13.30(4) the proposed transfer of permanent legal and physical custody is in the child's
13.31best interest.
13.32    Subd. 5. Residency. A child placed in the state from another state or a tribe outside
13.33the state is not eligible for state-funded guardianship assistance through the state. A child
13.34placed in the state from another state or a tribe outside of the state may be eligible for title
13.35IV-E guardianship assistance through the state if all eligibility factors are met and there is
13.36no state agency that has responsibility for placement and care of the child.
14.1    Subd. 6. Exclusions. A child with a guardianship assistance agreement under
14.2Northstar Care for Children is not eligible for the MFIP child-only grant under section
14.3256J.88.
14.4    Subd. 7. Termination. (a) A guardianship assistance agreement terminates in any
14.5of the following circumstances:
14.6(1) the child reaches the age of 18;
14.7(2) the commissioner determines that the relative custodian is no longer legally
14.8responsible for support of the child;
14.9(3) the commissioner determines that the relative custodian is no longer providing
14.10financial support to the child;
14.11(4) death of the child; or
14.12(5) the relative custodian requests termination of the guardianship assistance
14.13agreement in writing.
14.14(b) A relative custodian is considered no longer legally responsible for support of
14.15the child in any of the following circumstances:
14.16(1) permanent legal and physical custody of the child is transferred to another
14.17individual;
14.18(2) death of the relative custodian;
14.19(3) enlistment of the child in the military;
14.20(4) marriage of the child; or
14.21(5) emancipation of the child through legal action of another state.
14.22    Subd. 8. Transitioning in from pre-2011. Effective December 31, 2010, all relative
14.23custody assistance agreements under section 257.85 must terminate. A child who has a
14.24relative custody assistance agreement executed on the child's behalf under section 257.85
14.25on or before November 24, 2010, is eligible for Northstar Care for Children beginning
14.26January 1, 2011, provided that all parties have signed the guardianship assistance
14.27agreement on or before that date. All eligible children shall be assessed according to
14.28section 256O.240 and transitioned into Northstar Care for Children according to the
14.29process in section 256O.270. Effective November 25, 2010, a child who meets the
14.30eligibility criteria for guardianship assistance in subdivision 1, may have a guardianship
14.31assistance agreement negotiated on the child's behalf according to section 256O.240,
14.32and the effective date of the agreement is January 1, 2011, or the date of the court order
14.33transferring permanent legal and physical custody, whichever is later.

14.34    Sec. 11. [256O.230] ADOPTION ASSISTANCE ELIGIBILITY.
15.1    Subdivision 1. General eligibility requirements. (a) To be eligible for adoption
15.2assistance, a child must:
15.3(1) be determined to be a child with special needs, according to subdivision 2;
15.4(2) meet the applicable citizenship and immigration requirements in subdivision
15.53; and
15.6(3)(i) meet the criteria outlined in section 473 of the Social Security Act; or
15.7(ii) have had foster care payments paid on the child's behalf while in out-of-home
15.8placement through the county or tribe, and be either under the guardianship of the
15.9commissioner or under the jurisdiction of a Minnesota tribe and adoption according to
15.10tribal law is the child's documented permanency plan.
15.11(b) In addition to the requirements in paragraph (a), the child's adoptive parent or
15.12parents must meet the applicable background study requirements in subdivision 4.
15.13(c) The legally responsible agency shall make a title IV-E adoption assistance
15.14eligibility determination for each child. A child who meets all eligibility criteria, except
15.15those specific to title IV-E adoption assistance, shall receive adoption assistance paid
15.16through state funds.
15.17    Subd. 2. Special needs determination. (a) A child is considered a child with special
15.18needs under this section if all of the following criteria in paragraphs (b) to (d) are met.
15.19(b) There has been a determination that the child cannot or should not be returned to
15.20the home of the child's parents as evidenced by:
15.21(1) a court-ordered termination of parental rights;
15.22(2) a petition to terminate parental rights;
15.23(3) a consent to adopt accepted by the court under sections 260C.201, subdivision
15.2411, and 259.24;
15.25(4) in circumstances when tribal law permits the child to be adopted without a
15.26termination of parental rights, a judicial determination by tribal court indicating the valid
15.27reason why the child cannot or should not return home;
15.28(5) a voluntary relinquishment under section 259.25 or 259.47 or, if relinquishment
15.29occurred in another state, the applicable laws in that state; or
15.30(6) the death of the legal parent.
15.31(c) There exists a specific factor or condition because of which it is reasonable to
15.32conclude that the child cannot be placed with adoptive parents without providing adoption
15.33assistance as evidenced by:
15.34(1) a determination by the Social Security Administration that the child meets all
15.35medical or disability requirements of title XVI of the Social Security Act with respect to
15.36eligibility for Supplemental Security Income benefits;
16.1(2) a documented physical, mental, emotional, or behavioral disability not covered
16.2under clause (1);
16.3(3) membership in a sibling group being adopted at the same time by the same parent;
16.4(4) adoptive placement in the home of a parent who previously adopted another child
16.5born of the same mother or father for whom they receive adoption assistance; or
16.6(5) documentation that the child is an at-risk child according to subdivision 7.
16.7(d) A reasonable but unsuccessful effort has been made to place the child with
16.8adoptive parents without providing adoption assistance as evidenced by:
16.9(1)(i) a documented search for an appropriate adoptive placement; or
16.10(ii) a determination by the commissioner that such a search would not be in the best
16.11interests of the child; and
16.12(2) a written statement from the identified prospective adoptive parents that they are
16.13either unwilling or unable to adopt the child without adoption assistance.
16.14(e) To meet the requirement of a documented search for an appropriate adoptive
16.15placement under paragraph (d), clause (1), item (i), the placing agency minimally shall:
16.16(1) give consideration as required by section 260C.212, subdivision 5, to placement
16.17with a relative;
16.18(2) for an Indian child covered by the Indian Child Welfare Act, comply with the
16.19placement preferences identified in the Indian Child Welfare Act and the Minnesota Indian
16.20Family Preservation Act; and
16.21(3) review all families approved for adoption who are associated with the placing
16.22agency.
16.23If the review of families associated with the placing agency results in the identification
16.24of an appropriate adoptive placement for the child, the placing agency must provide
16.25documentation of the placement decision to the commissioner as part of the application
16.26for adoption assistance. If two or more appropriate families are not approved or available
16.27within the placing agency, the agency shall locate additional prospective adoptive families
16.28by registering the child with the state adoption exchange, as defined in section 259.75. If
16.29registration with the state adoption exchange does not result in an appropriate family for
16.30the child, the agency shall employ other recruitment methods as outlined in recruitment
16.31policies and procedures prescribed by the commissioner, to meet this requirement.
16.32(f) The requirement for a documented search for an appropriate adoptive placement
16.33including a review of all families approved for adoption that are associated with the
16.34placing agency, registration of the child with the state adoption exchange, and additional
16.35recruitment methods must be waived if:
16.36(1) the child is being adopted by a relative;
17.1(2) the child is being adopted by foster parents with whom the child has developed
17.2significant emotional ties while in the foster parents' care as a foster child; or
17.3(3) the child is being adopted by a family that previously adopted a child of the
17.4same mother or father;
17.5and the court determines that adoption by the identified family is in the child's best interest.
17.6For an Indian child covered by the Indian Child Welfare Act, a waiver must not be granted
17.7unless the placing agency has complied with the placement preferences identified in the
17.8Indian Child Welfare Act and the Minnesota Indian Family Preservation Act.
17.9(g) Once the placing agency has determined that placement with an identified family
17.10is in the child's best interest and made full written disclosure about the child's social and
17.11medical history, the agency must ask the prospective adoptive parents if they are willing to
17.12adopt the child without adoption assistance. If the identified family is either unwilling
17.13or unable to adopt the child without adoption assistance, they must provide a written
17.14statement to this effect to the placing agency to fulfill the requirement to make a reasonable
17.15effort to place the child without adoption assistance, and a copy of this statement shall be
17.16included in the adoption assistance application. If the identified family desires to adopt
17.17the child without adoption assistance, they must provide a written statement to this effect
17.18to the placing agency and the statement shall be maintained in the permanent adoption
17.19record of the placing agency. For children under the commissioner's guardianship, the
17.20placing agency shall submit a copy of this statement to the commissioner to be maintained
17.21in the permanent adoption record.
17.22    Subd. 3. Citizenship and immigration status. (a) A child must be a citizen of the
17.23United States or otherwise eligible for federal public benefits according to the Personal
17.24Responsibility and Work Opportunity Reconciliation Act of 1996, as amended, in order to
17.25be eligible for title IV-E adoption assistance.
17.26(b) A child must be a citizen of the United States or meet the qualified alien
17.27requirements as defined in the Personal Responsibility and Work Opportunity
17.28Reconciliation Act of 1996, as amended, in order to be eligible for state-funded adoption
17.29assistance.
17.30    Subd. 4. Background study. (a) A background study under section 259.41 must be
17.31completed on each prospective adoptive parent. If the background study reveals:
17.32(1) a felony conviction at any time for child abuse or neglect;
17.33(2) spousal abuse;
17.34(3) a crime against children, including child pornography;
17.35(4) a crime involving violence, including rape, sexual assault, or homicide, but not
17.36including other physical assault or battery; or
18.1(5) a felony conviction within the past five years for physical assault, battery, or a
18.2drug-related offense,
18.3the adoptive parent is prohibited from receiving title IV-E adoption assistance on behalf of
18.4an otherwise eligible child.
18.5(b) A prospective adoptive parent who possesses one of the felony convictions in
18.6paragraph (a) may receive state-funded adoption assistance on behalf of an otherwise
18.7eligible child if the court has made a judicial determination that:
18.8(1) the legally responsible agency has thoroughly reviewed the felony conviction
18.9and has considered the impact, if any, that the conviction may have on the child's safety,
18.10well-being, and permanency;
18.11(2) the conviction likely does not pose a current or future safety risk to the child;
18.12(3) there is no other available permanency resource that is appropriate for the
18.13child; and
18.14(4) the adoptive placement is in the child's best interest.
18.15    Subd. 5. Residency. A child placed in the state from another state or a tribe outside
18.16the state is not eligible for state-funded adoption assistance through the state. A child
18.17placed in the state from another state or a tribe outside of the state may be eligible for title
18.18IV-E adoption assistance through the state of Minnesota if all eligibility factors are met
18.19and there is no state agency that has responsibility for placement and care of the child.
18.20    Subd. 6. Exceptions and exclusions. Payments for adoption assistance must
18.21not be made to a biological parent of the child or a stepparent who adopts the child.
18.22Direct placement adoptions under section 259.47 or the equivalent in tribal code are
18.23not eligible for state-funded adoption assistance. A child who is adopted by the child's
18.24legal custodian or guardian is not eligible for state-funded adoption assistance. A child
18.25who is adopted by the child's legal custodian or guardian may be eligible for title IV-E
18.26adoption assistance if all required eligibility factors are met. International adoptions are
18.27not eligible for adoption assistance unless the adopted child has been placed into foster
18.28care through the public child welfare system subsequent to the failure of the adoption,
18.29and all required eligibility factors are met.
18.30    Subd. 7. Documentation. (a) Documentation must be provided to verify that a child
18.31meets the special needs criteria in subdivision 2.
18.32(b) Documentation of the disability is limited to evidence deemed appropriate by
18.33the commissioner.
18.34(c) To qualify as being an at-risk child, the placing agency shall provide to the
18.35commissioner one or more of the following:
19.1(1) documented information in a county or tribal social service department record or
19.2court record that a relative within the first or second degree has a medical diagnosis or
19.3medical history, including diagnosis of a significant mental health or chemical dependency
19.4issue, which could result in the child's development of a disability during childhood;
19.5(2) documented information that while in the public child welfare system, the child
19.6has experienced three or more placements with extended family or different foster homes
19.7that could affect the normal attachment process;
19.8(3) documented evidence in a county or tribal social service department record that
19.9the child experienced neglect in the first three years of life or sustained physical injury,
19.10sexual abuse, or physical disease that could have a long-term effect on physical, emotional
19.11or mental development; or
19.12(4) documented evidence in a medical or hospital record, law enforcement record,
19.13county or tribal social service department record, court record, or record of an agency
19.14under a contract with a county social service agency or the state to provide child welfare
19.15services that the birth mother used drugs or alcohol during pregnancy which could later
19.16result in the child's development of a disability.
19.17    Subd. 8. Termination. (a) An adoption assistance agreement terminates in any
19.18of the following circumstances:
19.19(1) the child attains the age of 18, unless an extension according to subdivisions 10
19.20to 13 are applied for by the adoptive parents and granted by the commissioner;
19.21(2) the commissioner determines that the adoptive parents are no longer legally
19.22responsible for support of the child;
19.23(3) the commissioner determines that the adoptive parents are no longer providing
19.24financial support to the child;
19.25(4) death of the child; or
19.26(5) the adoptive parents request termination of the adoption assistance agreement
19.27in writing.
19.28(b) An adoptive parent is considered no longer legally responsible for support of the
19.29child in any of the following circumstances:
19.30(1) parental rights to the child are legally terminated;
19.31(2) permanent legal and physical custody or guardianship of the child is transferred
19.32to another individual;
19.33(3) death of the adoptive parent;
19.34(4) enlistment of the child in the military;
19.35(5) marriage of the child; or
19.36(6) emancipation of the child through legal action of another state.
20.1    Subd. 9. Death of adoptive parent or adoption dissolution. (a) The adoption
20.2assistance agreement ends upon death or termination of parental rights of both of the
20.3adoptive parents, in the case of a two-parent adoption, or the sole adoptive parent, in the
20.4case of a single-parent adoption, but the child maintains eligibility for state-funded or title
20.5IV-E adoption assistance in a subsequent adoption if the following criteria are met:
20.6(1) the child is determined to be a child with special needs as described in
20.7subdivision 2;
20.8(2) the subsequent adoptive parents reside in the state of Minnesota; and
20.9(3) no state agency outside the state has responsibility for placement and care of the
20.10child at the time of the subsequent adoption.
20.11(b) According to federal regulations, if the child had a title IV-E adoption assistance
20.12agreement prior to the death of the adoptive parents or dissolution of the adoption, and a
20.13state agency outside of the state of Minnesota has responsibility for placement and care of
20.14the child at the time of the subsequent adoption, the state of Minnesota is not responsible
20.15for determining whether the child meets the definition of special needs, entering into the
20.16adoption assistance agreement, and making any adoption assistance payments outlined in
20.17the new agreement.
20.18(c) According to federal regulations, if the child had a title IV-E adoption assistance
20.19agreement prior to the death of the adoptive parents or dissolution of the adoption, the
20.20subsequent adoptive parents reside outside of the state of Minnesota, and no state agency
20.21has responsibility for placement and care of the child at the time of the subsequent
20.22adoption, the state of Minnesota is not responsible for determining whether the child
20.23meets the definition of special needs, entering into the adoption assistance agreement, and
20.24making any adoption assistance payments outlined in the new agreement.
20.25    Subd. 10. Extension, past age 18. Under certain limited circumstances, a child may
20.26qualify for extension of the adoption assistance agreement beyond the date the child attains
20.27age 18. An application for extension must be completed and submitted by the adoptive
20.28parent at least 90 days prior to the date the child attains age 18, unless the child's adoption
20.29is scheduled to finalize less than 90 days prior to that date, in which case the application
20.30for extension must be completed and submitted with the adoption assistance application.
20.31The application for extension shall be made on forms established by the commissioner and
20.32shall include documentation of eligibility as specified by the commissioner.
20.33    Subd. 11. Extension based on a continuing physical or mental disability. (a)
20.34Extensions based on a child's continuing physical or mental disability must be applied for
20.35prior to the date the child attains age 18. The commissioner must not grant an extension on
21.1this basis if an extension based on continued enrollment in a secondary education program
21.2or being a child whose adoption finalized after age 16 was previously granted for the child.
21.3(b) A child is eligible for extension of the adoption assistance agreement to the date
21.4the child attains age 21 if the following criteria are met:
21.5(1) the child has a mental or physical disability upon which eligibility for adoption
21.6assistance was based which warrants the continuation of assistance;
21.7(2) the child is unable to obtain self-sustaining employment due to the
21.8aforementioned mental or physical disability; and
21.9(3) the child needs significantly more care and support than what is typical for an
21.10individual of the same age.
21.11    Subd. 12. Extension based on continued enrollment in a secondary education
21.12program. (a) If a child does not qualify for extension based on a continuing physical or
21.13mental disability, or a parent chooses not to apply for an extension on that basis, the
21.14adoptive parents may make an application for continuation of adoption assistance based
21.15on enrollment in a secondary education program.
21.16(b) If a child is enrolled full time in a secondary education program or a program
21.17leading to an equivalent credential, the child is eligible for extension to the expected
21.18graduation date or the date the child attains age 19, whichever is earlier. If a child receives
21.19a school-based extension and at any time ceases to be enrolled in a full-time secondary
21.20education program or a program leading to an equivalent credential, the adoptive parents
21.21must notify the commissioner and the agreement must terminate.
21.22(c) Extensions based on continuation in a secondary education program must be paid
21.23from state funds only, unless the child meets the extension criteria in subdivision 13.
21.24    Subd. 13. Extension for children whose adoption finalized after age 16. A
21.25child who attained the age of 16 prior to finalization of the child's adoption is eligible
21.26for extension of the adoption assistance agreement to the date the child attains age 21
21.27if the child is:
21.28(1) completing a secondary education program or a program leading to an equivalent
21.29credential;
21.30(2) enrolled in an institution which provides postsecondary or vocational education;
21.31(3) participating in a program or activity designed to promote or remove barriers to
21.32employment;
21.33(4) employed for at least 80 hours per month; or
21.34(5) incapable of doing any of the activities described in clauses (1) to (4) due to a
21.35medical condition, which incapability is supported by regularly updated information in
21.36the case plan of the child.
22.1    Subd. 14. Transitioning in from pre-2011. A child who has an adoption assistance
22.2agreement executed on their behalf under section 259.67 on or before November 24, 2010,
22.3is eligible for Northstar Care for Children beginning January 1, 2011, provided that all
22.4parties have signed the renegotiated adoption assistance agreement on or before that date.
22.5The adoption assistance agreement of eligible children whose adoptive parents decide to
22.6opt in to Northstar Care for Children must be renegotiated according to the process in
22.7section 256O.270. All eligible children whose adoptive parents decide to renegotiate
22.8their adoption assistance agreement under Northstar Care for Children must be assessed
22.9according to section 256O.240 and then transitioned into Northstar Care for Children
22.10according to the process in section 256O.270. Effective November 25, 2010, a child
22.11who meets the eligibility criteria for adoption assistance in subdivision 1 may have an
22.12adoption assistance agreement negotiated on their behalf according to section 256O.240,
22.13and the effective date of the agreement is January 1, 2011, or the date of the court order
22.14finalizing the adoption, whichever is later.

22.15    Sec. 12. [256O.240] ASSESSMENTS AND AGREEMENTS.
22.16    Subdivision 1. Assessment. Every child eligible under sections 256O.210,
22.17256O.220, and 256O.230 must be assessed to determine the benefits the child may receive
22.18under section 256O.250 according to the tool, process, and requirements specified in
22.19subdivision 2. A child eligible for guardianship assistance under section 256O.220 or
22.20adoption assistance under section 256O.230 who is determined to be an at-risk child
22.21must be assessed at level A under section 256O.250, subdivision 1. All other children
22.22shall be assessed at the basic level, level B, or one of ten supplemental difficulty of care
22.23levels, levels C to L.
22.24    Subd. 2. Commissioner to establish the assessment tool, process, and
22.25requirements. Consistent with sections 256O.001 to 256O.270, the commissioner
22.26shall establish the tool to be used and the process to be followed, including appropriate
22.27documentation and other requirements, when conducting the assessment of children
22.28entering or continuing in Northstar Care for Children. The assessment tool must take
22.29into consideration the needs of the child and the ability of the caregiver to meet the
22.30child's needs.
22.31    Subd. 3. Child care component of the assessment. (a) The assessment tool
22.32established under subdivision 2 must include consideration of the caregiver's need
22.33for child care according to this subdivision. Prior to including consideration of the
22.34caregiver's need for child care on the child's assessment, prospective adoptive parents or
22.35relative custodians shall apply to the child care assistance program under chapter 119B.
23.1Foster parents are not required to apply to the child care assistance program to have the
23.2caregiver's need for child care considered as part of the foster child's assessment.
23.3(b) The child's assessment must include consideration of the caregiver's need for
23.4child care if all the following criteria are met:
23.5(1) the child has not attained the age of 13;
23.6(2) all available adult caregivers are employed or attending training or educational
23.7programs;
23.8(3) the caregiver has applied for the child care assistance program under paragraph
23.9(a); and
23.10(4) child care assistance under chapter 119B is not received for the child.
23.11Consideration of the caregiver's need for child care may be included on the child's
23.12assessment for caregivers who are wait-listed for child care assistance or are eligible for
23.13child care assistance but choose not to receive it.
23.14(c) The level determined by the balance of the assessment must be adjusted based on
23.15the number of hours of child care needed each week due to employment or attending a
23.16training or educational program as follows:
23.17(1) less than ten hours or if the caregiver is participating in the child care assistance
23.18program under chapter 119B, no adjustment;
23.19(2) ten to 19 hours, increase one level;
23.20(3) 20 to 29 hours, increase two levels;
23.21(4) 30 to 39 hours, increase three levels; and
23.22(5) 40 or more hours, increase four levels.
23.23(d) When the child attains the age of 13, the level shall revert to the level assessed
23.24for the child prior to any consideration of the caregiver's need for child care.
23.25    Subd. 4. Timing of initial assessment. For an eligible child entering Northstar
23.26Care for Children who is not part of the transition group under subdivision 13, the initial
23.27assessment must be completed within 30 days of placement for children in foster care and
23.28prior to the establishment of a guardianship assistance or adoption assistance agreement
23.29on behalf of the child, if an initial assessment is required under subdivision 5.
23.30    Subd. 5. Completing the assessment. (a) The assessment must be completed in
23.31consultation with the child's caregiver. Face-to-face contact with the caregiver is not
23.32required to complete the assessment.
23.33(b) For foster children eligible under section 256O.210, the initial assessment must
23.34be completed by the county of financial responsibility or, for children in the American
23.35Indian Child Welfare Initiative, the responsible tribal social service agency authorized
23.36in section 256.01, subdivision 14b, within 30 days of the child's placement in foster
24.1care. Reassessments must be completed by the legally responsible agency according to
24.2subdivision 7. If the foster parent is unable or unwilling to cooperate with the assessment
24.3process, the child must be assessed at the basic level, level B under section 256O.250,
24.4subdivision 3. Notice to the foster parent must be provided as specified in subdivision 9.
24.5(c) For children eligible for guardianship assistance under section 256O.220, a
24.6new assessment is required as part of the negotiation of the guardianship assistance
24.7agreement if:
24.8(1) the child is determined to be an at-risk child;
24.9(2) the child was not placed in foster care with the proposed relative custodian
24.10immediately prior to the negotiation of the guardianship assistance agreement under
24.11subdivision 10; or
24.12(3) any requirement for reassessment under subdivision 7 is met.
24.13If a new assessment is required prior to the effective date of the guardianship assistance
24.14agreement, the new assessment must be completed by the county of financial responsibility
24.15or, for children in the American Indian Child Welfare Initiative, the responsible tribal
24.16social service agency authorized in section 256.01, subdivision 14b. If reassessment
24.17is required after the effective date of the guardianship assistance agreement, the new
24.18assessment must be completed by the commissioner or the commissioner's designee. If
24.19the proposed relative custodian is unable or unwilling to cooperate with the assessment
24.20process, the child must be assessed at the basic level, level B under section 256O.250,
24.21subdivision 3, unless the child is known to be an at-risk child, in which case, the child
24.22must be assessed at level A under section 256O.250, subdivision 1. Notice to the proposed
24.23relative custodian must be provided as specified in subdivision 9.
24.24(d) For children eligible for adoption assistance under section 256O.230, a new
24.25assessment is required as part of the negotiation of the adoption assistance agreement if:
24.26(1) the child is determined to be an at-risk child;
24.27(2) the child was not placed in foster care with the prospective adoptive parent
24.28immediately prior to the negotiation of the adoption assistance agreement under
24.29subdivision 10; or
24.30(3) any requirement for reassessment under subdivision 7 is met.
24.31If a new assessment is required prior to the effective date of the adoption assistance
24.32agreement, it must be completed by the county of financial responsibility or, for children
24.33in the American Indian Child Welfare Initiative, the responsible tribal social service
24.34agency authorized in section 256.01, subdivision 14b. If there is no county of financial
24.35responsibility and the child is not in the American Indian Child Welfare Initiative, or the
24.36financially responsible agency is not a county social service or tribal agency in the state,
25.1the assessment must be completed by the agency designated by the commissioner. If
25.2reassessment is required after the effective date of the adoption assistance agreement, it
25.3must be completed by the commissioner or the commissioner's designee. If the prospective
25.4adoptive parent is unable or unwilling to cooperate with the assessment process, the child
25.5must be assessed at the basic level, level B under section 256O.250, subdivision 3, unless
25.6the child is known to be an at-risk child, in which case, the child shall be assessed at level
25.7A under section 256O.250, subdivision 1. Notice to the prospective adoptive parent must
25.8be provided as specified in subdivision 9.
25.9    Subd. 6. Approval of assessments and reassessments. Each legally responsible
25.10agency shall designate one or more staff to examine and approve completed assessments
25.11and reassessments. The staff person approving the assessments and reassessments must
25.12not be the case manger or staff member completing the forms. The new rate is effective
25.13the calendar month that the assessment is approved or the effective date of the agreement,
25.14whichever is later.
25.15    Subd. 7. Timing of reassessments and requests for reassessments. For an eligible
25.16child, reassessments must be completed within 30 days of any of the following events:
25.17(1) for a child in continuous foster care, six months since completion of the last
25.18assessment;
25.19(2) for a child in continuous foster care, at a change of placement location;
25.20(3) for a child in foster care, at the request of the legally responsible agency;
25.21(4) at the request of the commissioner; or
25.22(5) at the request of the caregiver under subdivision 8.
25.23    Subd. 8. Caregiver requests for reassessments. (a) For an eligible child, a
25.24caregiver may initiate a reassessment request in writing to the county of financial
25.25responsibility, or, for children in the American Indian Child Welfare Initiative, the
25.26responsible tribal social service agency authorized in section 256.01, subdivision 14b,
25.27for foster care cases, or the commissioner, or the commissioner's designee for adoption
25.28assistance and guardianship assistance cases. The written request must include the
25.29reason for the request and the name, address, and contact information of the caregivers.
25.30For an eligible child with a guardianship assistance or adoption assistance agreement,
25.31the caregiver may request a reassessment if at least six months have elapsed since any
25.32previously requested review. A caregiver for a foster child may request reassessment in
25.33less than six months with written documentation that there have been significant changes
25.34in the child's needs that necessitate an earlier reassessment.
25.35(b) A caregiver may request a reassessment of an at-risk child for whom a
25.36guardianship assistance or adoption assistance agreement has been executed if the
26.1caregiver has written professional documentation that the potential disability upon which
26.2eligibility for the agreement was based has manifested itself.
26.3(c) If the reassessment cannot be completed within 30 days of the caregiver's request,
26.4the agency responsible for reassessment shall notify the caregiver of the reason for the
26.5delay and a reasonable estimate of when the reassessment can be completed.
26.6(d) If the child's caregiver is unable or unwilling to cooperate with the reassessment,
26.7the child must be assessed at level B under section 256O.250, subdivision 3, unless the
26.8child has an adoption assistance or guardianship assistance agreement in place and is
26.9known to be an at-risk child, in which case, the child shall be assessed at level A under
26.10section 256O.250, subdivision 1. Within 60 days of the caregiver demonstrating they are
26.11able or willing to cooperate with the assessment or reassessment process, the reassessment
26.12for the child must be completed.
26.13    Subd. 9. Notice for caregiver. (a) The agency responsible for completing the
26.14assessment shall provide the child's caregiver with written notice of the initial assessment
26.15or reassessment.
26.16(b) Initial assessment notices must be sent within 15 days of completion of the initial
26.17assessment and must minimally include the following:
26.18(1) a summary of the completed child's individual assessment used to determine
26.19the rating;
26.20(2) statement of rating and benefit level;
26.21(3) statement of the circumstances under which the agency shall reassess the child;
26.22(4) procedure to seek reassessment;
26.23(5) notice that the caregiver has the right to a fair hearing review of the assessment
26.24and how to request a fair hearing, consistent with section 256.045, subdivision 3; and
26.25(6) name, telephone number, and, if available, electronic address of a contact person
26.26at the responsible agency or state.
26.27(c) Reassessment notices must be sent within 15 days of the completion of the
26.28reassessment and must minimally include the following:
26.29(1) a summary of the completed child's individual assessment used to determine
26.30the new rating;
26.31(2) any change in rating and its effective date;
26.32(3) procedure to seek reassessment;
26.33(4) notice that if a change in rating results in a reduction of benefits, the caregiver
26.34has the right to a fair hearing review of the assessment and how to request a fair hearing
26.35consistent with section 256.045, subdivision 3;
27.1(5) notice that a caregiver who requests a fair hearing of the reassessed rating within
27.2ten days may continue at the current rate pending the hearing, but the agency may recover
27.3any overpayment; and
27.4(6) name, telephone number, and, if available, electronic address of a contact person
27.5at the responsible agency or state.
27.6    Subd. 10. Agreements. (a) In order to receive guardianship assistance or adoption
27.7assistance benefits, a written, binding agreement on a form approved by the commissioner
27.8must be established prior to finalization of the adoption or a transfer of permanent legal
27.9and physical custody. The agreement must be negotiated with the caregivers according
27.10to subdivision 11. The caregivers and the commissioner or the commissioner's designee
27.11must sign the agreement. A copy of the signed agreement must be given to each party.
27.12Termination or disruption of the preadoptive placement or the foster care placement
27.13preceding assignment of custody makes the agreement with that family void.
27.14(b) The agreement must specify the following:
27.15(1) duration of the agreement;
27.16(2) the nature and amount of any payment, services, and assistance to be provided
27.17under such agreement;
27.18(3) the child's eligibility for Medicaid services;
27.19(4) the terms of the payment;
27.20(5) eligibility for reimbursement of nonrecurring expenses associated with adopting
27.21or obtaining permanent legal and physical custody of the child, to the extent that the
27.22total cost does not exceed $2,000 per child;
27.23(6) that the agreement must remain in effect regardless of the state of which the
27.24adoptive parents or relative custodians are residents at any given time;
27.25(7) provisions for modification of the terms of the agreement; and
27.26(8) the effective date of the agreement.
27.27(c) The effective date of the guardianship assistance agreement is the date of the
27.28court order that transfers permanent legal and physical custody to the relative.
27.29(d)(1) For a child who receives Supplementary Security Income (SSI), Retirement,
27.30Survivors, and Disability Insurance (RSDI), veteran's benefits, railroad retirement benefits,
27.31or black lung benefits, the effective date of the adoption assistance agreement is the date
27.32that the adoption is finalized.
27.33(2) For a child who does not receive SSI, RSDI, veteran's benefits, railroad
27.34retirement benefits, or black lung benefits, and who has been in the prospective adoptive
27.35parents' home as a foster child for at least six consecutive months prior to adoption
28.1placement, the effective date of the agreement is the date of adoptive placement or the
28.2date that the agreement is signed by all parties, whichever is later.
28.3(3) For a child who does not receive SSI, RSDI, veteran's benefits, railroad
28.4retirement benefits, or black lung benefits, and who has been in the prospective adoptive
28.5parents' home as a foster child for less than six consecutive months prior to adoptive
28.6placement, the effective date of the agreement is the date that the child has resided in the
28.7prospective adoptive parents' home as a foster child for at least six consecutive months
28.8or the date the adoption is finalized, whichever is earlier.
28.9    Subd. 11. Negotiation of the agreement. (a) A monthly payment is provided
28.10as part of the adoption assistance or guardianship assistance agreement to support the
28.11care of children who have manifested special needs. The amount of the payment made
28.12on behalf of children eligible for guardianship assistance or adoption assistance is
28.13determined through agreement between the relative custodian or the adoptive parent and
28.14the commissioner or the commissioner's designee, using the assessment tool established
28.15by the commissioner in subdivision 2 and the associated benefit and payments in section
28.16256O.250. The assessment tool establishes the monthly benefit level for a child in foster
28.17care. The monthly payment under a guardianship assistance agreement or adoption
28.18assistance agreement may be negotiated up to the monthly benefit level under foster care.
28.19In no case may the amount of the payment under a guardianship assistance agreement or
28.20adoption assistance agreement exceed the foster care maintenance payment which would
28.21have been paid during the month if the child with respect to whom the guardianship
28.22assistance or adoption assistance payment is made had been in a foster family home
28.23in the state. The income of the relative custodian or adoptive parent must not be taken
28.24into consideration when determining eligibility for guardianship assistance or adoption
28.25assistance or the amount of the payments under section 256O.250. With the concurrence
28.26of the relative custodian or adoptive parent, the amount of the payment may be adjusted
28.27periodically using the assessment tool established by the commissioner in subdivision 2
28.28and the agreement renegotiated under subdivision 12 when there is a change in the child's
28.29needs or the family's circumstances.
28.30(b) The guardianship assistance or adoption assistance agreement of a child who
28.31is identified as an at-risk child must not include a monthly payment unless and until the
28.32potential disability manifests itself, as documented by an appropriate professional, and
28.33the commissioner authorizes commencement of payment by modifying the agreement
28.34accordingly. A relative custodian or adoptive parent of an at-risk child with a guardianship
28.35assistance or adoption assistance agreement may request a reassessment of the child under
28.36subdivision 8 and renegotiation of the guardianship assistance or adoption assistance
29.1agreement under subdivision 12 to include a monthly payment, if the caregiver has written
29.2professional documentation that the potential disability upon which eligibility for the
29.3agreement was based has manifested itself. Documentation of the disability must be
29.4limited to evidence deemed appropriate by the commissioner.
29.5(c)(1) The initial amount of the monthly guardianship assistance payment must be
29.6equivalent to the foster care rate in effect at the time that the agreement is signed less
29.7any offsets in section 256O.250, subdivision 8, or a lesser negotiated amount if agreed
29.8to by the prospective relative custodian and specified in that agreement, unless the child
29.9is identified as an at-risk child.
29.10(2) An at-risk child must be assigned level A according to section 256O.250
29.11and there shall be no monthly guardianship assistance payment unless and until the
29.12potential disability manifests itself, as documented by an appropriate professional, and
29.13the commissioner authorizes commencement of payment by modifying the agreement
29.14accordingly.
29.15(d)(1) For a child in foster care with the prospective adoptive parent immediately
29.16prior to adoptive placement, the initial amount of the monthly adoption assistance payment
29.17must be equivalent to the foster care rate in effect at the time that the agreement is signed
29.18less any offsets in section 256O.250, subdivision 8, or a lesser negotiated amount if agreed
29.19to by the prospective adoptive parents and specified in that agreement, unless the child
29.20is identified as an at-risk child.
29.21(2) An at-risk child must be assigned level A according to section 256O.250 and there
29.22must be no monthly adoption assistance payment unless and until the potential disability
29.23manifests itself, as documented by an appropriate professional, and the commissioner
29.24authorizes commencement of payment by modifying the agreement accordingly.
29.25(3) For children who are in the guardianship assistance program immediately prior
29.26to adoptive placement, the initial amount of the adoption assistance payment must be
29.27equivalent to the guardianship assistance payment in effect at the time that the adoption
29.28assistance agreement is signed or a lesser amount if agreed to by the prospective adoptive
29.29parent and specified in that agreement.
29.30(4) For children who are not in foster care placement or the guardianship assistance
29.31program immediately prior to adoptive placement or negotiation of the adoption assistance
29.32agreement, the initial amount of the adoption assistance agreement must be determined
29.33using the assessment tool and process in this section and the corresponding payment
29.34amount in section 256O.250.
29.35    Subd. 12. Renegotiation of the agreement. (a) A relative custodian or adoptive
29.36parent of a child with a guardianship assistance or adoption assistance agreement may
30.1request renegotiation of the agreement when there is a change in the needs of the child
30.2or in the family's circumstances. When a relative custodian or adoptive parent requests
30.3renegotiation of the agreement, a reassessment of the child must be completed. If the
30.4reassessment indicates that the child's level has changed, the commissioner or the
30.5commissioner's designee and the caregiver shall renegotiate the agreement to include a
30.6payment with the level determined through the reassessment process. The agreement
30.7must not be renegotiated unless the commissioner and the caregiver mutually agree to
30.8the changes. The effective date of any renegotiated agreement must be determined by
30.9the commissioner.
30.10(b) A relative custodian or adoptive parent of an at-risk child with a guardianship
30.11assistance or adoption assistance agreement may request renegotiation of the agreement to
30.12include a monthly payment, if the caregiver has written professional documentation that
30.13the potential disability upon which eligibility for the agreement was based has manifested
30.14itself. Documentation of the disability must be limited to evidence deemed appropriate by
30.15the commissioner. Prior to renegotiating the agreement, a reassessment of the child must
30.16be conducted according to subdivision 8. The reassessment must be used to renegotiate
30.17the agreement to include an appropriate monthly payment. The agreement shall not be
30.18renegotiated unless the commissioner and the caregiver mutually agree to the changes.
30.19The effective date of any renegotiated agreement shall be determined by the commissioner.
30.20    Subd. 13. Transition assessments. (a) For a child who might transition into
30.21Northstar Care for Children under section 256O.210 subdivision 5; 256O.220, subdivision
30.228; or 256O.230, subdivision 14, initial transition assessments must be completed between
30.23May 1, 2010, and December 31, 2010.
30.24(b) Transition assessments for a child in foster care completed between May 1,
30.252010, and August 31, 2010, must be considered valid under subdivision 7 until April 1,
30.262011, and those completed between September 1, 2010, and December 31, 2010, must be
30.27considered valid under subdivision 7 until July 1, 2011.
30.28(c) Children with relative custody assistance agreements under section 257.85 that
30.29are effective prior to May 1, 2010, shall have initial transition assessments completed
30.30between May 1 and December 31, 2010. Children with relative custody assistance
30.31agreements between May 1, 2010, and November 24, 2010, shall have an initial transition
30.32assessment completed as the agreement is being established in conjunction with the
30.33supplemental maintenance needs assessment and other required relative custody assistance
30.34paperwork under section 257.85.
30.35(d) Children with adoption assistance agreements negotiated under section
30.36259.67 and submitted to the commissioner for review and approval on or before April
31.130, 2010, who might transition into Northstar Care for Children, shall have initial
31.2transition assessments completed by August 31, 2010. Children with adoption assistance
31.3agreements negotiated under section 259.67 and submitted to the commissioner for
31.4review and approval between May 1, 2010, and November 24, 2010, shall have an initial
31.5transition assessment completed in conjunction with the supplemental maintenance needs
31.6assessment and other required adoption assistance paperwork under section 259.67.
31.7(e) If the child's caregiver is unable or unwilling to cooperate with the initial
31.8transition assessment process, the child shall be assessed at the basic level, level B under
31.9section 256O.250, subdivision 3, unless the child is known to be an at-risk child, in
31.10which case the child shall be assessed at level A under section 256O.250, subdivision 1.
31.11Within 60 days of the caregiver indicating they are able or willing to cooperate with the
31.12assessment process, the commissioner or the commissioner's designee shall complete a
31.13reassessment for the child.
31.14(f) If the child's caregiver cannot be located to complete the initial transition
31.15assessment process according to the time frames outlined in this section, the child shall
31.16be assessed at the basic level, level B under section 256O.250, subdivision 3, unless the
31.17child is known to be an at-risk child, in which case the child shall be assessed at level A
31.18under section 256O.250, subdivision 1. Within 60 days of locating the caregiver, the
31.19commissioner or the commissioner's designee shall complete a reassessment for the child.

31.20    Sec. 13. [256O.250] BENEFITS AND PAYMENTS.
31.21    Subdivision 1. Benefits. There are three potential benefits available under Northstar
31.22Care for Children: medical assistance, basic payment, and supplemental difficulty of care
31.23payment. An eligible child receives medical assistance under subdivision 2. An eligible
31.24child receives the basic payment under subdivision 3, except for those assigned level A
31.25because they are determined to be at-risk children in guardianship assistance or adoption
31.26assistance. An eligible child may receive an additional supplemental difficulty of care
31.27payment under subdivision 4, as determined by the assessment under section 256O.240.
31.28    Subd. 2. Medical assistance. Eligibility for medical assistance under this chapter
31.29continues to be determined according to section 256B.055.
31.30    Subd. 3. Basic monthly rate. For the period January 1, 2011, to June 30, 2012, the
31.31basic monthly rate is according to the following schedule:

31.32		Ages 0-5	$500 per month
31.33		Ages 6-12	$625 per month
31.34		Ages 13 and older	$750 per month.

32.1    Subd. 4. Difficulty of care supplemental monthly rate. For the period January 1,
32.22011, to June 30, 2012, the difficulty of care supplemental monthly rate is according to
32.3the following schedule:

32.4		level B	none
32.5		level C	$60 per month
32.6		level D	$120 per month
32.7		level E	$180 per month
32.8		level F	$240 per month
32.9		level G	$300 per month
32.10		level H	$360 per month
32.11		level I	$420 per month
32.12		level J	$480 per month
32.13		level K	$540 per month
32.14		level L	$600 per month.

32.15A child assigned level B is still eligible for basic monthly rate under subdivision 3.
32.16    Subd. 5. Daily rates. The commissioner shall establish prorated daily rates to
32.17the nearest cent for the monthly rates under subdivisions 3 and 4. Daily rates must be
32.18routinely used when a partial month is involved for foster care, guardianship assistance,
32.19and adoption assistance.
32.20    Subd. 6. Revision. By April 1, 2013, for fiscal year 2013, and by each subsequent
32.21April 1 for each subsequent fiscal year, the commissioner shall review and revise the
32.22rates under subdivisions 3, 4, and 5 based on United States Department of Agriculture
32.23Estimates of the Cost of Raising a Child, published by the United States Department of
32.24Agriculture, Agricultural Resources Service, Publication 1411. The revision must be the
32.25average percentage by which costs increase for the age ranges represented in the United
32.26States Department of Agriculture Estimates of the Cost of Raising a Child. The monthly
32.27rates must be revised to the nearest dollar and the daily rates to the nearest cent.
32.28    Subd. 7. Home and vehicle modifications. A child who is eligible for an adoption
32.29assistance agreement based on the child's physical disability or a child who is eligible
32.30for a guardianship assistance agreement who possesses a physical disability must have
32.31reimbursement of home and vehicle modifications necessary to accommodate the child's
32.32physical disability included as part of the negotiation of the agreement under section
32.33256O.240, subdivision 11. The total of all modifications must not exceed $25,000 and the
32.34modifications must be requested during the first six months that the adoption assistance or
32.35guardianship assistance agreement is in effect. The type and cost of each modification
32.36must be preapproved by the commissioner. The type of home and vehicle modifications is
32.37limited to those specified by the commissioner. The commissioner shall ensure that the
33.1modifications are necessary to incorporate the child into the family and that the cost
33.2is reasonable. Application for and reimbursement of modifications must be completed
33.3according to a process specified by the commissioner.
33.4    Subd. 8. Child income or income attributable to the child. (a) A monthly
33.5adoption assistance or guardianship assistance payment must be considered income and
33.6resource attributable to the child and must be inalienable by any assignment or transfer
33.7and exempt from garnishment under the laws of the state.
33.8(b) When a child is placed into foster care, any income and resources attributable
33.9to the child must be handled according to sections 252.27 and 260C.331 or 260B.331, if
33.10applicable to the child being placed.
33.11(c) Consideration of income and resources attributable to the child must be part of
33.12the negotiation process in section 256O.240, subdivision 11. In some circumstances, the
33.13receipt of other income on behalf of the child may impact the amount of the monthly
33.14payment received by the adoptive parent or relative custodian on behalf of the child
33.15through Northstar Care for Children. Supplemental Security Income (SSI), Retirement,
33.16Survivors, and Disability Insurance (RSDI), veteran's benefits, railroad retirement benefits,
33.17and black lung benefits are considered income and resources attributable to the child.
33.18    Subd. 9. Treatment of Supplemental Security Income. If a child placed in
33.19foster care receives benefits through Supplemental Security Income (SSI) at the time of
33.20foster care placement or subsequent to placement in foster care, the county of financial
33.21responsibility, or, for children in the American Indian Child Welfare Initiative, the
33.22responsible tribal social service agency authorized in section 256.01, subdivision 14b,
33.23may apply to be the payee for the child for the duration of the child's placement in foster
33.24care. If a child continues to be eligible for SSI after finalization of the adoption or transfer
33.25of permanent legal and physical custody and is determined to be eligible for a payment
33.26under Northstar Care for Children, a permanent caregiver may choose to receive payment
33.27from both programs simultaneously. If the payment under Northstar Care for Children
33.28is a title IV-E payment, the permanent caregiver is responsible to report the amount of
33.29the payment to the Social Security Administration and the SSI payment will be reduced
33.30by the amount of the payment under Northstar Care for Children, as required by the
33.31Social Security Administration.
33.32    Subd. 10. Treatment of RSDI, veteran's benefits, railroad retirement benefits,
33.33and black lung benefits. (a) If a child placed in foster care receives RSDI, veteran's
33.34benefits, railroad retirement benefits, or black lung benefits at the time of foster care
33.35placement or subsequent to placement in foster care, the county of financial responsibility,
33.36or, for children in the American Indian Child Welfare Initiative, the responsible tribal
34.1social service agency authorized in section 256.01, subdivision 14b, may apply to be
34.2the payee for the child for the duration of the child's placement in foster care. If it is
34.3anticipated that a child will be eligible to receive RSDI, veteran's benefits, railroad
34.4retirement benefits, or black lung benefits after finalization of the adoption or assignment
34.5of permanent legal and physical custody, the permanent caregiver shall apply to be the
34.6payee of those benefits on the child's behalf. The monthly amount of the other benefits
34.7must be considered an offset to the amount of the payment the child is determined eligible
34.8for under Northstar Care for Children.
34.9(b) If a child becomes eligible for RSDI, veteran's benefits, railroad retirement
34.10benefits, or black lung benefits after the initial amount of the payment under Northstar
34.11Care for Children is finalized, the permanent caregiver shall contact the commissioner
34.12to renegotiate the payment under Northstar Care for Children. The monthly amount of
34.13the other benefits must be considered an offset to the amount of the payment the child is
34.14determined eligible for under Northstar Care for Children.
34.15(c) If a child ceases to be eligible for RSDI, veteran's benefits, railroad retirement
34.16benefits, or black lung benefits after the initial amount of the payment under Northstar
34.17Care for Children is finalized, the permanent caregiver shall contact the commissioner to
34.18renegotiate the payment under Northstar Care for Children. The monthly amount of the
34.19payment under Northstar Care for Children must be the amount the child was determined
34.20to be eligible for prior to consideration of any offset.
34.21(d) If the monthly payment received on behalf of the child under RSDI, veteran's
34.22benefits, railroad retirement benefits, or black lung benefits changes after the adoption
34.23assistance or guardianship assistance agreement is finalized, the permanent caregiver shall
34.24notify the commissioner as to the new monthly payment amount, regardless of the amount
34.25of the change in payment. If the monthly payment changes by $75 or more, even if the
34.26change occurs incrementally over the duration of the term of the adoption assistance
34.27or guardianship assistance agreement, the monthly payment under Northstar Care for
34.28Children must be renegotiated to reflect the amount of the increase or decrease in the
34.29offset amount. Any subsequent change to the payment must be reported and handled in
34.30the same manner. A change of monthly payments of less than $75 is not a permissible
34.31reason to renegotiate the adoption assistance or guardianship assistance agreement under
34.32section 256O.240, subdivision 12.
34.33    Subd. 11. Treatment of child support and MFIP. (a) If a child placed in foster
34.34care receives child support, the child support payment may be redirected to the county of
34.35financial responsibility, or, for children in the American Indian Child Welfare Initiative,
34.36the responsible tribal social service agency authorized in section 256.01, subdivision
35.114b, for the duration of the child's placement in foster care. In cases where the child
35.2qualifies for Northstar Care for Children by meeting the adoption assistance eligibility
35.3criteria or the guardianship assistance eligibility criteria, any court-ordered child support
35.4must not be considered income attributable to the child and must have no impact on the
35.5monthly payment.
35.6(b) Consistent with section 256J.24, children eligible for and receiving a payment
35.7from Northstar Care for Children are excluded from a MFIP assistance unit.
35.8    Subd. 12. Payments. (a) Payments to caregivers under Northstar Care for Children
35.9must be made monthly.
35.10(b) The county of financial responsibility, or, for children in the American Indian
35.11Child Welfare Initiative, the responsible tribal social service agency authorized in section
35.12256.01, subdivision 14b, shall pay foster parents for eligible children in foster care.
35.13(c) The commissioner shall pay caregivers for eligible children in guardianship
35.14assistance and adoption assistance. Payments must commence when the commissioner
35.15receives the required documentation from the court, the legally responsible agency, or the
35.16caregiver. In guardianship assistance or adoption assistance cases, monthly payments must
35.17be prorated according to subdivision 5 based on the effective date of the agreement.
35.18    Subd. 13. Effect of benefit on other aid. Payments received under this section shall
35.19not be considered as income for child care assistance under chapter 119B or any other
35.20financial benefit. Consistent with section 256J.24, all children receiving a maintenance
35.21payment under Northstar Care for Children are excluded from any MFIP assistance unit.
35.22    Subd. 14. Waivered service plans. A child in foster care may qualify for home and
35.23community-based waivered services, consistent with section 256B.092 for developmental
35.24disabilities, or section 256B.49 for community alternative care, community alternatives
35.25for disabled individuals, or traumatic brain injury waivers. A waiver service must not be
35.26substituted for the foster care program. When the child is eligible for waivered services
35.27and eligible for this benefit, the local social service agency must assess and provide basic
35.28and supplemental difficulty of care rates as determined by the universal assessment under
35.29section 256O.240. If it is determined that additional services are needed to meet the child's
35.30needs in the home that is not or cannot be met by the foster care program, the need would
35.31be referred to the waivered service program.
35.32    Subd. 15. Overpayments. The commissioner has the authority to collect any
35.33amount of foster care, adoption assistance, and guardianship assistance paid to a
35.34caregiver in excess of the payment due. Payments covered by this subdivision include
35.35basic maintenance needs payments, supplemental difficulty of care payments, and
35.36reimbursement of home and vehicle modifications under subdivision 7. Prior to any
36.1collection, the commissioner or the commissioner's designee shall notify the caregiver in
36.2writing, including:
36.3(1) the amount of the overpayment and an explanation of the cause of overpayment;
36.4(2) clarification of the corrected amount;
36.5(3) a statement of the legal authority for the decision;
36.6(4) information about how the caregiver can correct the overpayment;
36.7(5) if repayment is required, when the payment is due and a person to contact to
36.8review a repayment plan;
36.9(6) a statement that the caregiver is entitled to a fair hearing review by the
36.10department; and
36.11(7) the procedure for seeking the review in clause (6).
36.12    Subd. 16. Payee. For adoption assistance and guardianship assistance cases,
36.13the payment may only be made to the adoptive parent or relative custodian specified
36.14on the agreement. If there is more than one adoptive parent or relative custodian, both
36.15parties must be listed as the payee unless otherwise specified in writing according to
36.16policies outlined by the commissioner. In the event of divorce or separation of the
36.17caregivers, a change of payee may be made in writing according to policies outlined by
36.18the commissioner. If both caregivers are in agreement as to the change, it may be made
36.19according to a process outlined by the commissioner. If there is not agreement as to the
36.20change, a court order indicating the party who is to receive the payment is needed before a
36.21change can be processed. If the change of payee is disputed, the commissioner may
36.22withhold the payment until agreement is reached. A noncustodial caregiver may request
36.23notice in writing of review, modification, or termination of the adoption assistance or
36.24guardianship assistance agreement. In the event of the death of a payee, a change of payee
36.25consistent with sections 256O.220 and 256O.230 may be made in writing according
36.26to policies outlined by the commissioner.
36.27    Subd. 17. Notification of change. (a) Parents or relative custodians who have an
36.28adoption assistance agreement or guardianship assistance agreement in place shall keep
36.29the agency administering the program informed of the parent's or custodian's address and
36.30circumstances which would make them ineligible for the payments or eligible for the
36.31payments in a different amount.
36.32(b) For the duration of the agreement, the adoptive parent or relative custodian
36.33agrees to notify the agency administering the program in writing within 30 days of the
36.34following changes:
36.35(1) change in the family's address;
36.36(2) change in the legal custody status of the child;
37.1(3) child's completion of high school, if this occurs after the child attains age 18;
37.2(4) date of termination of the parental rights of the adoptive parent, transfer of
37.3permanent legal and physical custody to another person, or other determination that the
37.4adoptive parent or relative custodian is no longer legally responsible for support of the
37.5child;
37.6(5) date the adoptive parent or relative custodian is no longer providing support to
37.7the child;
37.8(6) date of death of the child;
37.9(7) date of death of the adoptive parent or relative custodian;
37.10(8) date the child enlists in the military;
37.11(9) date of marriage of the child;
37.12(10) date the child becomes an emancipated minor through legal action of another
37.13state;
37.14(11) separation or divorce of the adoptive parent or relative custodian;
37.15(12) change of the caregiver's employment or educational enrollment status, if the
37.16child has not attained age 13 and the child care component of the assessment under section
37.17256O.240, subdivision 2, was used to determine the assessment level; and
37.18(13) residence of the child outside the home for a period of more than 30 consecutive
37.19days.
37.20    Subd. 18. Termination notice for caregiver. The responsible agency must provide
37.21a child's caregiver written notice of termination of payment. Termination notices must be
37.22sent at least 15 days before the final payment or in the case of an unplanned termination,
37.23the notice is sent within three days of the end of the payment. The written notice must
37.24minimally include the following:
37.25(1) the date payment will end;
37.26(2) the reason payments will end and the event that is the basis to terminate payment;
37.27(3) a statement that the provider is entitled to a fair hearing review by the department
37.28consistent with section 256.045, subdivision 3;
37.29(4) the procedure to request a fair hearing; and
37.30(5) name, telephone number, and, if available, an electronic contact address of a
37.31contact person at the county or state.

37.32    Sec. 14. [256O.260] FEDERAL SHARE, STATE SHARE, LOCAL SHARE.
37.33    Subdivision 1. Federal share. For the purposes of determining a child's eligibility
37.34under title IV-E of the Social Security Act for a child in foster care, the county of
37.35financial responsibility or, for children in the American Indian Child Welfare Initiative,
38.1the responsible tribal social service agency authorized in section 256.01, subdivision 14b,
38.2shall use the eligibility requirements outlined in section 472 of the Social Security Act.
38.3For a child who qualifies for guardianship assistance or adoption assistance, the county of
38.4financial responsibility or, for children in the American Indian Child Welfare Initiative,
38.5the responsible tribal social service agency authorized in section 256.01, subdivision 14b,
38.6shall use the eligibility requirements outlined in section 473 of the Social Security Act.
38.7In each case, the agency paying the maintenance payments must be reimbursed for the
38.8costs from the federal money available for this purpose.
38.9    Subd. 2. State share. The commissioner shall pay the state share of the maintenance
38.10payments as determined under subdivision 4, and an identical share of the pre-Northstar
38.11Care adoption assistance program under section 259.67. The commissioner may transfer
38.12funds into the account if a deficit occurs.
38.13    Subd. 3. Local share. The county of financial responsibility under section 256G.02
38.14or tribal social service agency authorized in section 256.01, subdivision 14b, at the
38.15time of placement for foster care or finalization of the agreement for guardianship
38.16assistance or adoption assistance, shall pay the local share of the maintenance payments as
38.17determined under subdivision 4, and an identical share of the pre-Northstar Care adoption
38.18assistance program under section 259.67. The county of financial responsibility under
38.19section 256G.02 or tribal social service agency authorized in section 256.01, subdivision
38.2014b, shall pay the entire cost of any initial clothing allowance, child-placing agency
38.21administrative payments, or other support services it authorizes, except as provided under
38.22other provisions of law. In cases of federally required adoption assistance where there is
38.23no county of financial responsibility, or, for children in the American Indian Child Welfare
38.24Initiative, the responsible tribal social service agency authorized in section 256.01,
38.25subdivision 14b, as provided in section 256O.240, subdivision 5, the commissioner shall
38.26pay the local share.
38.27    Subd. 4. Nonfederal share. The commissioner shall establish a percentage share
38.28of the maintenance payments, reduced by federal reimbursements under title IV-E of the
38.29Social Security Act, to be paid by the state and to be paid by the county of financial
38.30responsibility under section 256G.02 or tribal social service agency authorized in section
38.31256.01, subdivision 14b. These state and local shares shall initially be calculated based
38.32on the ratio of the average appropriate expenditures made by the state and all counties
38.33and tribal social service agencies authorized in section 256.01, subdivision 14b, during
38.34state fiscal years 2008, 2009, and 2010. For purposes of this calculation, appropriate
38.35expenditures for the counties and tribal social service agencies shall include basic and
38.36difficulty of care payments for foster care, not including any initial clothing allowance,
39.1child-placing agency administrative payments, child care, or other ancillary expenditures,
39.2reduced by federal reimbursements. For purposes of this calculation, appropriate
39.3expenditures for the state must include adoption assistance and relative custody assistance,
39.4reduced by federal reimbursements. For each of the periods January 1, 2011, to June
39.530, 2012, and fiscal years 2013 and 2014, the commissioner shall adjust this initial
39.6percentage of state and local shares to reflect the relative expenditure trends during state
39.7fiscal years 2008, 2009, and 2010. The fiscal year 2014 set of percentages must be used
39.8for all subsequent years.
39.9    Subd. 5. Adjustments for proportionate shares among legally responsible
39.10agencies. For children who transition into Northstar Care for Children under section
39.11256O.270, subdivision 7, and for children on the pre-Northstar Care adoption assistance
39.12program under section 259.67, the commissioner shall adjust the expenditures by each
39.13county or tribal social service agency so that its relative share is proportional to its foster
39.14care expenditures as determined under subdivision 4 for state fiscal years 2008, 2009, and
39.152010 compared with similar costs of all county or tribal social service agencies.

39.16    Sec. 15. [256O.270] ADMINISTRATION.
39.17    Subdivision 1. Responsibilities. (a) The county of financial responsibility or,
39.18for children in the American Indian Child Welfare Initiative, the responsible tribal
39.19social service agency authorized in section 256.01, subdivision 14b, shall determine
39.20the eligibility for Northstar Care for Children for children in foster care under section
39.21256O.210, and for those children determined eligible, shall further determine each child's
39.22eligibility for title IV-E of the Social Security Act.
39.23(b) Subject to commissioner approval, the legally responsible agency shall determine
39.24the eligibility for Northstar Care for Children for children in guardianship assistance under
39.25section 256O.220 and children in adoption assistance under section 256O.230, and for
39.26those children determined eligible, shall further determine each child's eligibility for title
39.27IV-E of the Social Security Act.
39.28(c) The legally responsible agency is responsible for the administration of Northstar
39.29Care for Children for children in foster care, and for assisting the commissioner with the
39.30administration of Northstar Care for Children for children in guardianship assistance and
39.31adoption assistance by conducting assessments, reassessments, negotiations, and other
39.32activities as specified by the commissioner under subdivision 2.
39.33    Subd. 2. Procedures, requirements, and deadlines. The commissioner shall
39.34specify procedures, requirements, and deadlines for the administration of Northstar Care
39.35for Children according to sections 256O.001 to 256O.270, including for transitioning
40.1children into Northstar Care for Children under subdivision 7. The commissioner shall
40.2periodically review all such procedures, requirements, and deadlines, including the
40.3assessment tool and process under section 256O.240, in consultation with counties, tribes,
40.4and representatives of caregivers and may alter them as needed.
40.5    Subd. 3. Administration of title IV-E programs. The title IV-E foster care,
40.6guardianship assistance, and adoption assistance programs shall operate within the statutes
40.7and rules set forth by the federal government in the Social Security Act and Code of
40.8Federal Regulations.
40.9    Subd. 4. Reporting. The commissioner shall specify required fiscal and statistical
40.10reports under section 256.01, subdivision 2, paragraph (q), and other reports as necessary.
40.11    Subd. 5. Promotion of programs. The commissioner or the commissioner's
40.12designee shall actively seek ways to promote the guardianship assistance and adoption
40.13assistance programs, including informing prospective relative custodians of eligible
40.14children of the availability of guardianship assistance and prospective adoptive parents of
40.15eligible children under the commissioner's guardianship of the availability of adoption
40.16assistance. All families who adopt children under the commissioner's guardianship must
40.17be informed as to the adoption tax credit.
40.18    Subd. 6. Appeals and fair hearings. (a) A caregiver has the right to appeal to the
40.19commissioner pursuant to section 256.045 when eligibility for Northstar Care for Children
40.20is denied, and when payment or the agreement for eligible child is modified or terminated.
40.21(b) A relative custodian or adoptive parent has additional rights to appeal to
40.22the commissioner under section 256.045. The rights include when the commissioner
40.23terminates or modifies the guardianship assistance or adoption assistance agreement or
40.24when the commissioner denies an application for guardianship assistance or adoption
40.25assistance. A prospective relative custodian or adoptive parent who disagrees with a
40.26decision by the commissioner prior to transfer of permanent legal and physical custody or
40.27finalization of the adoption may request review of the decision by the commissioner or
40.28may appeal the decision under section 256.045. A guardianship assistance or adoption
40.29assistance agreement must be signed and in effect prior to the court order that transfers
40.30permanent legal and physical custody or the adoption finalization, however in some cases,
40.31there may be extenuating circumstances as to why an agreement was not entered into prior
40.32to the finalization of permanency for the child. Caregivers who believe that extenuating
40.33circumstances exist in the case of the caregiver's child may request a fair hearing.
40.34Caregivers have the responsibility of proving that extenuating circumstances exist.
40.35Caregivers are required to provide written documentation of each eligibility criterion at
40.36the fair hearing. Examples of extenuating circumstances include: relevant facts regarding
41.1the child were known by the placing agency and not presented to the caregiver prior to
41.2transfer of permanent legal and physical custody or finalization of the adoption, failure by
41.3the commissioner or the commissioner's designee to advise potential caregivers about the
41.4availability of guardianship assistance or adoption assistance for children in the state foster
41.5care system. If an appeals judge finds through the fair hearing process that extenuating
41.6circumstances existed and that the child met all eligibility criteria at the time the transfer
41.7of permanent legal and physical custody was ordered or the adoption was finalized, the
41.8effective date and any associated federal financial participation must be retroactive to
41.9the date of the request for a fair hearing.
41.10    Subd. 7. Transition; timelines; assessments. (a) All eligible children shall
41.11participate in an initial assessment under section 256O.240, subdivision 3.
41.12(b) All children in foster care, relative custody assistance, or adoption assistance are
41.13eligible for Northstar Care for Children as specified in sections 256O.210, 256O.220, and
41.14256O.230. All children in foster care or receiving relative custody assistance under section
41.15257.85 on December 31, 2010, must be transitioned into Northstar Care for Children as of
41.16January 1, 2011. Children in adoption assistance under section 259.67 on December 31,
41.172010, whose caregivers sign no later than November 24, 2010, an agreement to transition
41.18to Northstar Care for Children as provided under sections 256O.230 and 256O.240 must
41.19be added to Northstar Care for Children as of January 1, 2011. A child receiving adoption
41.20assistance under section 259.67 whose caregivers sign an agreement to transition to
41.21Northstar Care for Children as provided under sections 256O.230 and 256O.240 between
41.22December 1, 2010, and March 31, 2011, must be added to Northstar Care for Children
41.23for the first calendar month at least 31 calendar days after the date of the signing of the
41.24agreement. A child receiving adoption assistance under section 259.67 whose caregivers
41.25do not sign an agreement to transition to Northstar Care for Children by March 31, 2011,
41.26must remain on the pre-Northstar Care adoption assistance program under section 259.67
41.27until the child is no longer eligible for the program.
41.28    Subd. 8. Transition; distribution of program information. Between May 1, 2010,
41.29and June 30, 2010, all foster parents with a child placed in the foster parents' home, relative
41.30custodians with executed or signed relative custody assistance agreements, adoptive
41.31parents with executed or signed adoption assistance agreements, and preadoptive parents
41.32with a preadoptive placement in the parents' home shall receive written information about
41.33Northstar Care for Children. Foster parents with a child placed in the foster parents' home
41.34between July 1, 2010, and December 31, 2010, shall receive written information about
41.35Northstar Care for Children at the time of the child's placement. Relative custodians
41.36who sign a relative custody assistance agreement and prospective adoptive parents who
42.1sign an adoption assistance agreement subsequent to June 30, 2010, shall receive written
42.2information about Northstar Care for Children no later than when the relative custody
42.3assistance agreement or the adoption assistance agreement is signed by the caregiver.
42.4(1) The legally responsible agency shall mail, electronically distribute, or personally
42.5provide foster parents with placed children with written information about Northstar
42.6Care for Children.
42.7(2) The agency responsible for providing the relative custody assistance payment
42.8shall mail, electronically distribute, or personally provide relative custodians with relative
42.9custody assistance agreements with written information about Northstar Care for Children
42.10when the relative custodians' mail or email address is known. The responsible social
42.11service agency shall make reasonable efforts to locate relative custodians with signed or
42.12executed relative custody assistance agreements whose mail or email address is known.
42.13(3) For cases where the adoption assistance agreement is executed or submitted to
42.14the commissioner for review and approval prior to May 1, 2010, the commissioner shall
42.15mail or electronically distribute information about Northstar Care for Children to the
42.16adoptive parent. The commissioner shall make reasonable efforts to locate the adoptive
42.17parent whose mail or email address is unknown. For cases where the adoption assistance
42.18agreement is executed or submitted to the commissioner for review on or after May 1,
42.192010, and on or before November 24, 2010, the responsible social service agency shall
42.20mail, electronically distribute, or personally provide preadoptive parents with written
42.21information about Northstar Care for Children.
42.22(4) Information must minimally include a summary of the provisions of the new
42.23program, an overview of the assessment process, the transition time frame, and actions
42.24required by the foster parent, relative custodian, or adoptive parent during the transition
42.25period, including the procedure to opt in to Northstar Care for Children and renegotiate
42.26the adoption assistance agreement for adoption assistance cases.
42.27    Subd. 9. Transition; renegotiation of adoption assistance agreements. Adoptive
42.28parents shall provide written notice to the commissioner of the adoptive parents' intent
42.29to renegotiate their adoption assistance program or remain on the pre-Northstar Care
42.30adoption assistance program according to section 259.67 within 60 days of receiving
42.31the written notice in subdivision 8. The commissioner may extend this time frame if
42.32it is determined that the adoptive parent has good cause to warrant extension of this
42.33consideration period. If adoptive parents decide to opt in to Northstar Care for Children,
42.34the adoptive parents' adoption assistance agreement must be renegotiated according to
42.35section 256O.240, subdivision 10. If an adoptive parent would like to opt in to Northstar
42.36Care for Children, but does not believe that the assessment under section 256O.240 was
43.1completed accurately, the adoptive parent shall indicate this in writing to the commissioner
43.2and must be given an extension of the consideration period while a reassessment is
43.3completed. The commissioner may not extend the time frame to renegotiate adoption
43.4assistance agreements after March 31, 2011. All adoption assistance agreements under
43.5Northstar Care for Children for children transitioning from the adoption assistance
43.6program under section 259.67 must be renegotiated and signed by all parties no later than
43.7March 31, 2011. The commissioner may establish additional requirements or deadlines
43.8for implementing the transition.
43.9    Subd. 10. Effective date of payment rates. The new rates for payment under
43.10Northstar Care for Children must be determined under section 256O.250 and effective
43.11according to the timelines in subdivision 7, paragraph (b).
43.12    Subd. 11. Purchase of child-specific adoption services. The commissioner may
43.13reimburse the placing agency for appropriate adoption services for children eligible under
43.14section 259.67, subdivision 35.

43.15    Sec. 16. Minnesota Statutes 2008, section 257.85, subdivision 2, is amended to read:
43.16    Subd. 2. Scope. The provisions of this section apply to those situations in which
43.17the legal and physical custody of a child is established with a relative or important friend
43.18with whom the child has resided or had significant contact according to section 260C.201,
43.19subdivision 11 , by a district court order issued on or after July 1, 1997, and on or before
43.20November 24, 2010, or a tribal court order issued on or after July 1, 2005, and on or
43.21before November 24, 2010, when the child has been removed from the care of the parent
43.22by previous district or tribal court order.
43.23EFFECTIVE DATE.This section is effective August 1, 2009.

43.24    Sec. 17. Minnesota Statutes 2008, section 257.85, subdivision 5, is amended to read:
43.25    Subd. 5. Relative custody assistance agreement. (a) A relative custody assistance
43.26agreement will not be effective, unless it is signed by the local agency and the relative
43.27custodian no later than 30 days after the date of the order establishing permanent legal and
43.28physical custody, and on or before November 24, 2010, except that a local agency may
43.29enter into a relative custody assistance agreement with a relative custodian more than 30
43.30days after the date of the order if it certifies that the delay in entering the agreement was
43.31through no fault of the relative custodian and the agreement is signed and in effect on or
43.32before November 24, 2010. There must be a separate agreement for each child for whom
43.33the relative custodian is receiving relative custody assistance.
44.1(b) Regardless of when the relative custody assistance agreement is signed by the
44.2local agency and relative custodian, the effective date of the agreement shall be the date of
44.3the order establishing permanent legal and physical custody.
44.4(c) If MFIP is not the applicable program for a child at the time that a relative
44.5custody assistance agreement is entered on behalf of the child, when MFIP becomes
44.6the applicable program, if the relative custodian had been receiving custody assistance
44.7payments calculated based upon a different program, the amount of relative custody
44.8assistance payment under subdivision 7 shall be recalculated under the Minnesota family
44.9investment program.
44.10(d) The relative custody assistance agreement shall be in a form specified by the
44.11commissioner and shall include provisions relating to the following:
44.12(1) the responsibilities of all parties to the agreement;
44.13(2) the payment terms, including the financial circumstances of the relative
44.14custodian, the needs of the child, the amount and calculation of the relative custody
44.15assistance payments, and that the amount of the payments shall be reevaluated annually;
44.16(3) the effective date of the agreement, which shall also be the anniversary date for
44.17the purpose of submitting the annual affidavit under subdivision 8;
44.18(4) that failure to submit the affidavit as required by subdivision 8 will be grounds
44.19for terminating the agreement;
44.20(5) the agreement's expected duration, which shall not extend beyond the child's
44.21eighteenth birthday;
44.22(6) any specific known circumstances that could cause the agreement or payments
44.23to be modified, reduced, or terminated and the relative custodian's appeal rights under
44.24subdivision 9;
44.25(7) that the relative custodian must notify the local agency within 30 days of any of
44.26the following:
44.27(i) a change in the child's status;
44.28(ii) a change in the relationship between the relative custodian and the child;
44.29(iii) a change in composition or level of income of the relative custodian's family;
44.30(iv) a change in eligibility or receipt of benefits under MFIP, or other assistance
44.31program; and
44.32(v) any other change that could affect eligibility for or amount of relative custody
44.33assistance;
44.34(8) that failure to provide notice of a change as required by clause (7) will be
44.35grounds for terminating the agreement;
45.1(9) that the amount of relative custody assistance is subject to the availability of state
45.2funds to reimburse the local agency making the payments;
45.3(10) that the relative custodian may choose to temporarily stop receiving payments
45.4under the agreement at any time by providing 30 days' notice to the local agency and may
45.5choose to begin receiving payments again by providing the same notice but any payments
45.6the relative custodian chooses not to receive are forfeit; and
45.7(11) that the local agency will continue to be responsible for making relative custody
45.8assistance payments under the agreement regardless of the relative custodian's place of
45.9residence.
45.10EFFECTIVE DATE.This section is effective August 1, 2009.

45.11    Sec. 18. Minnesota Statutes 2008, section 257.85, subdivision 6, is amended to read:
45.12    Subd. 6. Eligibility criteria. (a) A local agency shall enter into a relative custody
45.13assistance agreement under subdivision 5 if it certifies that the following criteria are met:
45.14(1) the juvenile court has determined or is expected to determine that the child,
45.15under the former or current custody of the local agency, cannot return to the home of
45.16the child's parents;
45.17(2) the court, upon determining that it is in the child's best interests, has issued
45.18or is expected to issue an order transferring permanent legal and physical custody of
45.19the child; and
45.20(3) the child either:
45.21(i) is a member of a sibling group to be placed together; or
45.22(ii) has a physical, mental, emotional, or behavioral disability that will require
45.23financial support.
45.24When the local agency bases its certification that the criteria in clause (1) or (2) are
45.25met upon the expectation that the juvenile court will take a certain action, the relative
45.26custody assistance agreement does not become effective until and unless the court acts as
45.27expected.
45.28(b) After November 24, 2010, no new relative custody assistance agreements shall
45.29be executed. Agreements that were signed on or before November 24, 2010, and were not
45.30in effect because the proposed transfer of permanent legal and physical custody of the
45.31child did not occur on or before November 24, 2010, must be renegotiated according to
45.32the terms of Northstar Care for Children in chapter 256O.
45.33EFFECTIVE DATE.This section is effective August 1, 2009.

46.1    Sec. 19. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
46.2to read:
46.3    Subd. 11. Purpose and general eligibility requirements. (a) The purpose of the
46.4adoption assistance program is to help make adoption possible for children who would
46.5otherwise remain in foster care.
46.6(b) To be eligible for adoption assistance, a child must:
46.7(1) be determined to be a child with special needs, according to subdivision 12;
46.8(2) meet the applicable citizenship and immigration requirements in subdivision
46.913; and
46.10(3)(i) meet the criteria outlined in section 473 of the Social Security Act; or
46.11(ii) have had foster care payments paid on the child's behalf while in out-of-home
46.12placement through the county or tribe, and be either under the guardianship of the
46.13commissioner or under the jurisdiction of a Minnesota tribe, with adoption in accordance
46.14with tribal law as the child's documented permanency plan.
46.15(c) In addition to the requirements in paragraph (b), the child's adoptive parents must
46.16meet the applicable background study requirements outlined in subdivision 14.
46.17(d) The legally responsible agency shall make a title IV-E adoption assistance
46.18eligibility determination for each child. Children who meet all eligibility criteria except
46.19those specific to title IV-E adoption assistance shall receive adoption assistance paid
46.20through state funds.
46.21EFFECTIVE DATE.This section is effective July 1, 2009.

46.22    Sec. 20. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
46.23to read:
46.24    Subd. 12. Special needs determination. (a) A child is considered a child with
46.25special needs under this section if all of the requirements in paragraphs (b) to (g) are met.
46.26(b) There has been a determination that the child cannot or should not be returned to
46.27the home of the child's parents as evidenced by:
46.28(1) a court-ordered termination of parental rights;
46.29(2) a petition to terminate parental rights;
46.30(3) a consent to adopt accepted by the court under sections 260C.201, subdivision
46.3111, and 259.24;
46.32(4) in circumstances when tribal law permits the child to be adopted without a
46.33termination of parental rights, a judicial determination by tribal court indicating the valid
46.34reason why the child cannot or should not return home;
47.1(5) a voluntary relinquishment under section 259.25 or 259.47 or, if relinquishment
47.2occurred in another state, the applicable laws in that state; or
47.3(6) the death of the legal parent.
47.4(c) There exists a specific factor or condition because of which it is reasonable to
47.5conclude that the child cannot be placed with adoptive parents without providing adoption
47.6assistance as evidenced by:
47.7(1) a determination by the Social Security Administration that the child meets all
47.8medical or disability requirements of title XVI of the Social Security Act with respect to
47.9eligibility for Supplemental Security Income benefits;
47.10(2) a documented physical, mental, emotional, or behavioral disability not covered
47.11under clause (1);
47.12(3) membership in a sibling group being adopted at the same time by the same parent;
47.13(4) adoptive placement in the home of a parent who previously adopted another child
47.14born of the same mother or father for whom they receive adoption assistance; or
47.15(5) documentation that the child is a high-risk child, according to subdivision 17.
47.16(d) A reasonable but unsuccessful effort must have been made to place the child
47.17with adoptive parents without providing adoption assistance as evidenced by:
47.18(1)(i) a documented search for an appropriate adoptive placement; or
47.19(ii) a determination by the commissioner that such a search would not be in the best
47.20interests of the child; and
47.21(2) a written statement from the identified prospective adoptive parents that they are
47.22either unwilling or unable to adopt the child without adoption assistance.
47.23(e) To meet the requirement of a documented search for an appropriate adoptive
47.24placement under paragraph (d), clause (1), item (i), the placing agency minimally must:
47.25(1) give consideration, as required by section 260C.212, subdivision 5, to placement
47.26with a relative;
47.27(2) for an Indian child covered by the Indian Child Welfare Act, comply with the
47.28placement preferences identified in the Indian Child Welfare Act and the Minnesota Indian
47.29Family Preservation Act; and
47.30(3) review all families approved for adoption who are associated with the placing
47.31agency.
47.32If the review of families associated with the placing agency results in the
47.33identification of an appropriate adoptive placement for the child, the placing agency must
47.34provide documentation of the placement decision to the commissioner as part of the
47.35application for adoption assistance.
48.1If two or more appropriate families are not approved or available within the placing
48.2agency, the agency shall locate additional prospective adoptive families by registering the
48.3child with the State Adoption Exchange, as required under section 259.75. If registration
48.4with the State Adoption Exchange does not result in an appropriate family for the child,
48.5the agency shall employ other recruitment methods, as outlined in recruitment policies and
48.6procedures prescribed by the commissioner, to meet this requirement.
48.7(f) The requirement for a documented search for an appropriate adoptive placement
48.8under paragraph (d), including review of all families approved for adoption that are
48.9associated with the placing agency, registration of the child with the State Adoption
48.10Exchange, and additional recruitment methods, must be waived if:
48.11(1) the child is being adopted by a relative;
48.12(2) the child is being adopted by foster parents with whom the child has developed
48.13significant emotional ties while in their care as a foster child;
48.14(3) the child is being adopted by a family that previously adopted a child of the
48.15same mother or father; or
48.16(4) the court determines that adoption by the identified family is in the child's best
48.17interest.
48.18For an Indian child covered by the Indian Child Welfare Act, a waiver must not be
48.19granted unless the placing agency has complied with the placement preferences identified
48.20in the Indian Child Welfare Act and the Minnesota Indian Family Preservation Act.
48.21(g) Once the placing agency has determined that placement with an identified family
48.22is in the child's best interest and made full written disclosure about the child's social
48.23and medical history, the agency must ask the prospective adoptive parents if they are
48.24willing to adopt the child without adoption assistance. If the identified family is either
48.25unwilling or unable to adopt the child without adoption assistance, they must provide a
48.26written statement to this effect to the placing agency to fulfill the requirement to make
48.27a reasonable effort to place the child without adoption assistance, and a copy of this
48.28statement shall be included in the adoption assistance application. If the identified family
48.29desires to adopt the child without adoption assistance, the family must provide a written
48.30statement to this effect to the placing agency and the statement must be maintained in the
48.31permanent adoption record of the placing agency. For children under the commissioner's
48.32guardianship, the placing agency shall submit a copy of this statement to the commissioner
48.33to be maintained in the permanent adoption record.
48.34EFFECTIVE DATE.This section is effective July 1, 2009.

49.1    Sec. 21. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
49.2to read:
49.3    Subd. 13. Citizenship and immigration status. (a) A child must be a citizen of the
49.4United States or otherwise eligible for federal public benefits according to the Personal
49.5Responsibility and Work Opportunity Reconciliation Act of 1996, as amended, in order to
49.6be eligible for title IV-E adoption assistance.
49.7(b) A child must be a citizen of the United States or meet the qualified alien
49.8requirements as defined in the Personal Responsibility and Work Opportunity
49.9Reconciliation Act of 1996, as amended, in order to be eligible for state-funded adoption
49.10assistance.
49.11EFFECTIVE DATE.This section is effective July 1, 2009.

49.12    Sec. 22. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
49.13to read:
49.14    Subd. 14. Background study. (a) A background study under section 259.41 must
49.15be completed on each prospective adoptive parent. If the background study reveals:
49.16(1) a felony conviction at any time for child abuse or neglect;
49.17(2) spousal abuse;
49.18(3) a crime against children, including child pornography;
49.19(4) a crime involving violence, including rape, sexual assault, or homicide, but not
49.20including other physical assault or battery; or
49.21(5) a felony conviction within the past five years for physical assault, battery, or a
49.22drug-related offense,
49.23the adoptive parent is prohibited from receiving title IV-E adoption assistance on behalf of
49.24an otherwise eligible child.
49.25(b) A prospective adoptive parent who possesses one of the felony convictions in
49.26paragraph (a) may receive state-funded adoption assistance on behalf of an otherwise
49.27eligible child if the court has made a judicial determination that:
49.28(1) the legally responsible agency has thoroughly reviewed the felony conviction
49.29and has considered the impact, if any, that the conviction may have on the child's safety,
49.30well-being, and permanency;
49.31(2) the conviction likely does not pose a current or future safety risk to the child;
49.32(3) there is no other available permanency resource that is appropriate for the
49.33child; and
49.34(4) the adoptive placement is in the child's best interest.
49.35EFFECTIVE DATE.This section is effective July 1, 2009.

50.1    Sec. 23. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
50.2to read:
50.3    Subd. 15. Residency. A child placed in the state from another state or a tribe outside
50.4of the state is not eligible for state-funded adoption assistance through the state. A child
50.5placed in the state from another state or a tribe outside of the state may be eligible for title
50.6IV-E adoption assistance through the state of Minnesota if all eligibility factors are met
50.7and there is no state agency that has responsibility for placement and care of the child.
50.8EFFECTIVE DATE.This section is effective July 1, 2009.

50.9    Sec. 24. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
50.10to read:
50.11    Subd. 16. Exceptions and exclusions. Payments for adoption assistance shall
50.12not be made to a biological parent of the child or a stepparent who adopts the child.
50.13Direct placement adoptions under section 259.47 or the equivalent in tribal code are
50.14not eligible for state-funded adoption assistance. A child who is adopted by the child's
50.15legal custodian or guardian is not eligible for state-funded adoption assistance. A child
50.16who is adopted by the child's legal custodian or guardian may be eligible for title IV-E
50.17adoption assistance if all required eligibility factors are met. International adoptions are
50.18not eligible for adoption assistance unless the adopted child has been placed into foster
50.19care through the public child welfare system subsequent to the failure of the adoption
50.20and all required eligibility factors are met.
50.21EFFECTIVE DATE.This section is effective July 1, 2009.

50.22    Sec. 25. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
50.23to read:
50.24    Subd. 17. Documentation. Documentation must be provided to verify that a child
50.25meets the special needs criteria outlined in subdivision 12.
50.26(a) Documentation of a disability is limited to evidence deemed appropriate by
50.27the commissioner.
50.28(b) To qualify as being a high-risk child, the placing agency must provide to the
50.29commissioner one or more of the following:
50.30(1) documented information in a county or tribal social service department record
50.31or court record that a relative within the first or second degree of the child has a medical
50.32diagnosis or medical history, including diagnosis of a significant mental health or
50.33chemical dependency issue, which could result in the child's development of a disability
50.34during childhood;
51.1(2) documented information that while in the public child welfare system, the child
51.2has experienced three or more placements with extended family or different foster homes
51.3that could affect the normal attachment process;
51.4(3) documented evidence in a county or tribal social service department record
51.5that the child experienced neglect in the first three years of life, or sustained physical
51.6injury, sexual abuse, or physical disease that could have a long-term effect on physical,
51.7emotional, or mental development; or
51.8(4) documented evidence in a medical or hospital record, law enforcement record,
51.9county or tribal social service department record, court record, or record of an agency
51.10under a contract with a county social service agency or the state to provide child welfare
51.11services that the birth mother used drugs or alcohol during pregnancy which could later
51.12result in the child's development of a disability.
51.13EFFECTIVE DATE.This section is effective July 1, 2009.

51.14    Sec. 26. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
51.15to read:
51.16    Subd. 18. Termination. (a) An adoption assistance agreement shall terminate in
51.17any of the following circumstances:
51.18(1) the child attains the age of 18, unless an extension as outlined in subdivisions 20
51.19to 23, is applied for by the adoptive parents and granted by the commissioner;
51.20(2) the commissioner determines that the adoptive parents are no longer legally
51.21responsible for support of the child;
51.22(3) the commissioner determines that the adoptive parents are no longer providing
51.23financial support to the child;
51.24(4) death of the child; or
51.25(5) the adoptive parents request termination of the adoption assistance agreement
51.26in writing.
51.27(b) An adoptive parent is considered no longer legally responsible for support of the
51.28child in any of the following circumstances:
51.29(1) parental rights to the child are legally terminated;
51.30(2) permanent legal and physical custody or guardianship of the child is transferred
51.31to another individual;
51.32(3) death of the adoptive parent;
51.33(4) enlistment of the child in the military;
51.34(5) marriage of the child; or
51.35(6) emancipation of the child through legal action of another state.
52.1EFFECTIVE DATE.This section is effective July 1, 2009.

52.2    Sec. 27. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
52.3to read:
52.4    Subd. 19. Death of adoptive parent or adoption dissolution. (a) The adoption
52.5assistance agreement ends upon death or termination of parental rights of both the adoptive
52.6parents in the case of a two-parent adoption, or the sole adoptive parent in the case of a
52.7single-parent adoption, but the child maintains eligibility for state-funded or title IV-E
52.8adoption assistance in a subsequent adoption if the following criteria are met:
52.9(1) the child is determined to be a child with special needs as outlined in subdivision
52.1012;
52.11(2) the subsequent adoptive parents reside in Minnesota; and
52.12(3) no state agency outside of Minnesota has responsibility for placement and care
52.13of the child at the time of the subsequent adoption.
52.14(b) According to federal regulations, if the child had a title IV-E adoption assistance
52.15agreement prior to the death of the adoptive parents or dissolution of the adoption, and a
52.16state agency outside of the state of Minnesota has responsibility for placement and care of
52.17the child at the time of the subsequent adoption, the state of Minnesota is not responsible
52.18for determining whether the child meets the definition of special needs, entering into the
52.19adoption assistance agreement, and making any adoption assistance payments outlined in
52.20the new agreement.
52.21(c) According to federal regulations, if the child had a title IV-E adoption assistance
52.22agreement prior to the death of the adoptive parents or dissolution of the adoption, the
52.23subsequent adoptive parents reside outside of the state of Minnesota, and no state agency
52.24has responsibility for placement and care of the child at the time of the subsequent
52.25adoption, the state of Minnesota is not responsible for determining whether the child
52.26meets the definition of special needs, entering into the adoption assistance agreement, and
52.27making any adoption assistance payments outlined in the new agreement.
52.28EFFECTIVE DATE.This section is effective July 1, 2009.

52.29    Sec. 28. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
52.30to read:
52.31    Subd. 20. Extension, past age 18. Under certain limited circumstances a child
52.32may qualify for extension of the adoption assistance agreement beyond the date the
52.33child attains age 18. An application for extension must be completed and submitted by
52.34the adoptive parent at least 90 days prior to the date the child attains age 18, unless the
53.1child's adoption is scheduled to finalize less than 90 days prior to that date in which
53.2case the application for extension must be completed and submitted with the adoption
53.3assistance application. The application for extension must be made according to policies
53.4and procedures prescribed by the commissioner, including documentation of eligibility,
53.5and on forms prescribed by the commissioner.
53.6EFFECTIVE DATE.This section is effective July 1, 2009.

53.7    Sec. 29. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
53.8to read:
53.9    Subd. 21. Extension based on a continuing physical or mental disability. (a)
53.10Extensions based on a child's continuing physical or mental disability must be applied
53.11for prior to the date the child attains age 18 and according to the requirements under
53.12subdivision 20. The commissioner must not grant an extension on this basis if an extension
53.13based on continued enrollment in a secondary education or being a child whose adoption
53.14finalized after age 16 was previously granted for the child.
53.15(b) A child is eligible for extension of the adoption assistance agreement up to the
53.16date the child attains age 21 if the following criteria are met:
53.17(1) the child has a mental or physical disability upon which eligibility for adoption
53.18assistance was based which warrants the continuation of assistance;
53.19(2) the child is unable to obtain self-sustaining employment due to the
53.20aforementioned mental or physical disability; and
53.21(3) the child needs significantly more care and support than what is typical for an
53.22individual of the same age.
53.23EFFECTIVE DATE.This section is effective July 1, 2009.

53.24    Sec. 30. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
53.25to read:
53.26    Subd. 22. Extension based on continued enrollment in a secondary education
53.27program. (a) If a child does not qualify for extension based on a continuing physical or
53.28mental disability or a parent chooses not to apply for such extension, the adoptive parents
53.29may make an application for continuation of adoption assistance based on enrollment in
53.30a secondary education program.
53.31(b) If a child is enrolled full-time in a secondary education program or a program
53.32leading to an equivalent credential, the child is eligible for extension to the expected
53.33gradation date or the date the child attains age 19, whichever is earlier. If a child receives
53.34a school-based extension and at any time ceases to be enrolled in a full-time secondary
54.1education program or a program leading to an equivalent credential, the adoptive parents
54.2are responsible to notify the commissioner and the agreement must terminate.
54.3(c) Extensions based on continuation in a secondary education program must be paid
54.4from state funds only, unless the child meets the extension criteria outlined in subdivision
54.523.
54.6EFFECTIVE DATE.This section is effective July 1, 2009.

54.7    Sec. 31. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
54.8to read:
54.9    Subd. 23. Extension for children whose adoption finalized after age 16. A child
54.10who attained the age of 16 prior to finalization of their adoption is eligible for extension of
54.11the adoption assistance agreement to the date the child attains age 21 if the child is:
54.12(1) completing a secondary education program or a program leading to an equivalent
54.13credential;
54.14(2) enrolled in an institution which provides postsecondary or vocational education;
54.15(3) participating in a program or activity designed to promote or remove barriers to
54.16employment;
54.17(4) employed for at least 80 hours per month; or
54.18(5) incapable of doing any of the activities described in clauses (1) to (4) due to a
54.19medical condition, which incapability is supported by regularly updated information in
54.20the case plan of the child.
54.21EFFECTIVE DATE.This section is effective July 1, 2009.

54.22    Sec. 32. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
54.23to read:
54.24    Subd. 24. Adoption assistance certification. The placing agency shall certify a
54.25child as eligible for adoption assistance according to policies and procedures, and on
54.26forms, prescribed by the commissioner. Professional documentation must be submitted
54.27with the certification, and when applicable, the supplemental adoption assistance needs
54.28assessment, to establish eligibility for the amount of payment requested. This form must
54.29be submitted with the adoption assistance agreement under subdivision 25.
54.30EFFECTIVE DATE.This section is effective July 1, 2009.

54.31    Sec. 33. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
54.32to read:
55.1    Subd. 25. Adoption assistance agreement. (a) In order to receive adoption
55.2assistance benefits, a written, binding agreement on a form approved by the commissioner
55.3must be established and completed by the placing agency prior to finalization of the
55.4adoption. The agreement must be negotiated with the parents, in the case of a two-parent
55.5adoption, or the adoptive parent, in the case of a single-parent adoption, as required in
55.6subdivision 26. The parents, an approved representative from the placing agency, and
55.7the commissioner or the commissioner's designee must sign the agreement prior to the
55.8effective date of the adoption decree. The adoption assistance certification and agreement
55.9must be granted or denied by the commissioner no later than 15 working days after receipt.
55.10A fully executed copy of the signed agreement must be given to each party. Termination
55.11or disruption of the preadoptive placement preceding adoption finalization makes the
55.12agreement with that family void.
55.13(b) The agreement must specify the following:
55.14(1) duration of the agreement;
55.15(2) the nature and amount of any payment, services, and assistance to be provided
55.16under such agreement;
55.17(3) the child's eligibility for Medicaid services;
55.18(4) the terms of the payment;
55.19(5) eligibility for reimbursement of nonrecurring expenses associated with adopting
55.20the child, to the extent that the total cost does not exceed $2,000 per child;
55.21(6) that the agreement must remain in effect regardless of the state of which the
55.22adoptive parents are residents at any given time;
55.23(7) provisions for modification of the terms of the agreement; and
55.24(8) the effective date of the agreement.
55.25(c) The agreement is effective the date of the adoption decree.
55.26EFFECTIVE DATE.This section is effective July 1, 2009.

55.27    Sec. 34. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
55.28to read:
55.29    Subd. 26. Negotiation of the agreement. (a) A monthly payment is provided
55.30as part of the adoption assistance agreement to support the care of a child who has
55.31manifested special needs. The amount of the payment made on behalf of a child eligible
55.32for adoption assistance is determined through agreement between the adoptive parents
55.33and the commissioner or the commissioner's designee. The agreement shall take into
55.34consideration the circumstances of the adopting parents and the needs of the child being
55.35adopted. The income of the adoptive parents must not be taken into consideration when
56.1determining eligibility for adoption assistance or the amount of the payments under
56.2subdivision 28. At the written request of the adoptive parents, the amount of the payment
56.3in the agreement may be renegotiated when there is a change in the child's needs or the
56.4family's circumstances.
56.5(b) The adoption assistance agreement of a child who is identified as a high-risk child
56.6must not include a monthly payment unless and until the potential disability manifests
56.7itself, as documented by an appropriate professional, and the commissioner authorizes
56.8commencement of payment by modifying the agreement accordingly. An adoptive parent
56.9of a high-risk child with an adoption assistance agreement may request a renegotiation of
56.10the adoption assistance agreement under subdivision 27 to include a monthly payment,
56.11if the parent has written professional documentation that the potential disability upon
56.12which eligibility for the agreement was based has manifested itself. Documentation of the
56.13disability shall be limited to evidence deemed appropriate by the commissioner.
56.14EFFECTIVE DATE.This section is effective July 1, 2009.

56.15    Sec. 35. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
56.16to read:
56.17    Subd. 27. Renegotiation of the agreement. (a) An adoptive parent of a child
56.18with an adoption assistance agreement may request renegotiation of the agreement when
56.19there is a change in the needs of the child or in the family's circumstances. When an
56.20adoptive parent requests renegotiation of the agreement, a reassessment of the child
56.21must be completed. If the reassessment indicates that the child's level has changed,
56.22the commissioner or the commissioner's designee and the parent shall renegotiate the
56.23agreement to include a payment with the level determined appropriate through the
56.24reassessment process. The agreement must not be renegotiated unless the commissioner
56.25and the parent mutually agree to the changes. The effective date of any renegotiated
56.26agreement must be determined by the commissioner.
56.27(b) An adoptive parent of a high-risk child with an adoption assistance agreement
56.28may request renegotiation of the agreement to include a monthly payment, if the parent
56.29has written professional documentation that the potential disability upon which eligibility
56.30for the agreement was based has manifested itself. Documentation of the disability must
56.31be limited to evidence deemed appropriate by the commissioner. Prior to renegotiating
56.32the agreement, a reassessment of the child must be conducted. The reassessment must
56.33be used to renegotiate the agreement to include an appropriate monthly payment. The
56.34agreement must not be renegotiated unless the commissioner and the adoptive parent
57.1mutually agree to the changes. The effective date of any renegotiated agreement must be
57.2determined by the commissioner.
57.3EFFECTIVE DATE.This section is effective July 1, 2009.

57.4    Sec. 36. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
57.5to read:
57.6    Subd. 28. Benefits and payments. (a) Eligibility for medical assistance for children
57.7receiving adoption assistance is as specified in section 256B.055.
57.8(b) The basic maintenance payments must be made according to the following
57.9schedule for all children except those eligible for adoption assistance based on high risk of
57.10developing a disability:

57.11		Birth through age five	up to $247 per month
57.12		Age six through age 11	up to $277 per month
57.13		Age 12 through age 14	up to $307 per month
57.14		Age 15 and older	up to $337 per month

57.15A child must receive the maximum payment amount for the child's age, unless a lesser
57.16amount is negotiated with and agreed to by the prospective adoptive parent.
57.17(c) Supplemental adoption assistance needs payments, in addition to basic
57.18maintenance payments, are available for a child whose disability necessitates care,
57.19supervision, and structure beyond that ordinarily provided in a family setting to persons
57.20of the same age. These payments are related to the severity of a child's disability and
57.21the level of parenting required to care for the child, and must be made according to the
57.22following schedule:

57.23		Level I	up to $150 per month
57.24		Level II	up to $275 per month
57.25		Level III	up to $400 per month
57.26		Level IV	up to $500 per month

57.27A child's level shall be assessed on a supplemental maintenance needs assessment form
57.28prescribed by the commissioner. A child must receive the maximum payment amount for
57.29the child's assessed level, unless a lesser amount is negotiated with and agreed to by
57.30the prospective adoptive parent.
57.31(d) Reimbursement for special nonmedical expenses is available to all children
57.32except those eligible for adoption assistance based on high risk of developing a disability.
57.33Reimbursements under this paragraph will be made only after the adoptive parents
57.34document that an application for the applicable service was denied by the local social
57.35service agency, community agencies, local school district, local public health department,
57.36the parent's insurance provider, or the child's Medicaid program. Reimbursements must
58.1be made according to the policies and procedures prescribed by the commissioner and
58.2are limited to:
58.3(1) child care;
58.4(2) respite care;
58.5(3) camping program;
58.6(4) home and vehicle modifications;
58.7(5) family counseling;
58.8(6) postadoption counseling;
58.9(7) services to children under age three who are developmentally delayed;
58.10(8) specialized communication equipment; and
58.11(9) burial expenses.
58.12EFFECTIVE DATE.This section is effective July 1, 2009.

58.13    Sec. 37. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
58.14to read:
58.15    Subd. 29. Child income or income attributable to the child. If a child for whom a
58.16parent is receiving adoption assistance is also receiving Supplemental Security Income
58.17(SSI) or Retirement, Survivors, Disability Insurance (RSDI), the certifying agency shall
58.18inform the adoptive parents that the child's adoption assistance must be reported to the
58.19Social Security Administration.
58.20EFFECTIVE DATE.This section is effective July 1, 2009.

58.21    Sec. 38. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
58.22to read:
58.23    Subd. 30. Payments. (a) Payments to parents under adoption assistance must
58.24be made monthly.
58.25(b) Payments must commence when the commissioner receives the adoption decree
58.26from the court, the legally responsible agency, or the parent. Payments must be made
58.27according to policies and procedures prescribed by the commissioner.
58.28EFFECTIVE DATE.This section is effective July 1, 2009.

58.29    Sec. 39. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
58.30to read:
58.31    Subd. 31. Overpayments. (a) The commissioner has the authority to collect any
58.32amount of adoption assistance paid to a parent in excess of the payment due. Payments
58.33covered by this subdivision include basic maintenance needs payments, supplemental
59.1maintenance needs payments, and reimbursements of nonmedical expenses under
59.2subdivision 28. Prior to any collection, the commissioner or designee shall notify the
59.3parent in writing, including:
59.4(1) the amount of the overpayment and an explanation of the cause of overpayment;
59.5(2) clarification of the corrected amount;
59.6(3) a statement of the legal authority for the decision;
59.7(4) information about how the parent can correct the overpayment;
59.8(5) if repayment is required, when the payment is due and a person to contact to
59.9review a repayment plan;
59.10(6) a statement that the parent has a right to a fair hearing review by the department;
59.11and
59.12(7) the procedure for seeking such a review.
59.13EFFECTIVE DATE.This section is effective July 1, 2009.

59.14    Sec. 40. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
59.15to read:
59.16    Subd. 32. Payee. For adoption assistance cases, the payment may only be made to
59.17the adoptive parent specified on the agreement. If there is more than one adoptive parent,
59.18both parties must be listed as the payee unless otherwise specified in writing according
59.19to policies and procedures prescribed by the commissioner. In the event of divorce or
59.20separation of the parents, a change of payee may be made in writing according to policies
59.21and procedures prescribed by the commissioner. If both parents are in agreement as to
59.22the change, it may be made according to a process prescribed by the commissioner. If
59.23there is not agreement as to the change, a court order indicating the party who is to receive
59.24the payment is needed before a change can be processed. In the event of the death of the
59.25payee, a change of payee consistent with subdivision 19 may be made in writing according
59.26to policies and procedures prescribed by the commissioner.
59.27EFFECTIVE DATE.This section is effective July 1, 2009.

59.28    Sec. 41. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
59.29to read:
59.30    Subd. 33. Notification of change. (a) An adoptive parent who has an adoption
59.31assistance agreement in place shall keep the agency administering the program informed
59.32of the parent's address and circumstances which would make them ineligible for the
59.33payments or eligible for the payments in a different amount.
60.1(b) For the duration of the agreement, the adoptive parent agrees to notify the agency
60.2administering the program in writing within 30 days of the following changes:
60.3(1) change in the family's address;
60.4(2) change in the legal custody status of the child;
60.5(3) child's completion of high school, if this occurs after the child attains age 18;
60.6(4) date of termination of the parental rights of the adoptive parent, transfer of
60.7permanent legal and physical custody to another person, or other determination that the
60.8adoptive parent is no longer legally responsible for the support of the child;
60.9(5) date the adoptive parent is not longer providing support to the child;
60.10(6) date of death of the child;
60.11(7) date of death of the adoptive parent;
60.12(8) date the child enlists in the military;
60.13(9) date of marriage of the child;
60.14(10) date the child becomes an emancipated minor through legal action of another
60.15state;
60.16(11) separation or divorce of the adoptive parent; and
60.17(12) residence of the child outside the home for a period of more than 30 consecutive
60.18days.
60.19EFFECTIVE DATE.This section is effective July 1, 2009.

60.20    Sec. 42. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
60.21to read:
60.22    Subd. 34. Termination notice for parent. The commissioner shall provide the
60.23child's parent written notice of termination of payment. Termination notices must be sent
60.24at least 15 days before the final payment or in the case of an unplanned termination,
60.25the notice is sent within three days of the end of the payment. The written notice must
60.26minimally include the following:
60.27(1) the date payment will end;
60.28(2) the reason payments will end and the event that is the basis to terminate payment;
60.29(3) a statement that the parent has a right to a fair hearing review by the department
60.30consistent with section 256.045, subdivision 3;
60.31(4) the procedure to request a fair hearing; and
60.32(5) the agency name and address to which a fair hearing request must be sent.
60.33EFFECTIVE DATE.This section is effective July 1, 2009.

61.1    Sec. 43. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
61.2to read:
61.3    Subd. 35. Reimbursement of costs through purchase of service. (a) Subject
61.4to policies and procedures prescribed by the commissioner and the provisions of this
61.5subdivision, a child-placing agency licensed in Minnesota or any other state, or local
61.6or tribal social services agency shall receive a reimbursement from the commissioner
61.7equal to 100 percent of the reasonable and appropriate cost of providing child-specific
61.8adoption services. Adoption services under this subdivision may include child-specific
61.9recruitment, child-specific training and home studies for prospective adoptive parents,
61.10and placement services.
61.11(b) An eligible child must have a goal of adoption, which may include an adoption
61.12according to tribal law, and meet one of the following criteria:
61.13(1) is a ward of the Minnesota commissioner of human services or a ward of a
61.14Minnesota tribal court under section 260.755, subdivision 20, who meets one of the
61.15criteria under subdivision 12, paragraph (b), and one of the criteria under subdivision 12,
61.16paragraph (c), clauses (1) to (5); or
61.17(2) is under the guardianship of a Minnesota-licensed child-placing agency who
61.18meets one of the eligibility criteria under subdivision 12, paragraph (b), and one of the
61.19criteria in subdivision 12, paragraph (c), clauses (1) to (4).
61.20(c) A child-placing agency licensed in Minnesota or any other state shall receive
61.21reimbursement for adoption services it purchase for or directly provides to an eligible
61.22child. Tribal social services shall receive reimbursement for adoption services it purchases
61.23for or directly provides to an eligible child. A local social services agency shall receive
61.24reimbursement only for adoption services it purchases for an eligible child.
61.25(d) Before providing adoption services for which reimbursement is sought under this
61.26subdivision, a reimbursement agreement, on the forms prescribed by the commissioner,
61.27must be signed by the commissioner. No reimbursement under this subdivision must
61.28be made to an agency for services provided prior to signatures by all required parties
61.29on a reimbursement agreement. Separate reimbursement agreements must be made for
61.30each child and separate records must be kept on each child for whom a reimbursement
61.31agreement is made. Reimbursement shall not be made unless the commissioner of
61.32human services agrees that the reimbursement costs are reasonable and appropriate. The
61.33commissioner may spend up to $16,000 for each purchase of service agreement per
61.34child. Only one agreement per child is allowed, unless an exception is granted by the
61.35commissioner and agreed to in writing by the commissioner prior to commencement of
62.1services. Funds encumbered and obligated under such an agreement for the child remain
62.2available until the terms of the agreement are fulfilled or the agreement is terminated.
62.3(e) The commissioner shall make reimbursement payments directly to the agency
62.4providing the service if direct reimbursement is specified by the purchase of service
62.5agreement and if the request for reimbursement is submitted by the local or tribal social
62.6services agency along with verification on a form prescribed by the commissioner that
62.7the service was provided.
62.8(f) The commissioner shall set aside an amount not to exceed five percent of the
62.9total amount of fiscal year appropriation from the state of Minnesota for the adoption
62.10assistance program to reimburse placing agencies for adoption services. When adoption
62.11assistance payments for children's needs exceed 95 percent of the total amount of fiscal
62.12year appropriation from the state of Minnesota for the adoption assistance program, the
62.13amount of reimbursement available to placing agencies for adoption services is reduced
62.14correspondingly.
62.15EFFECTIVE DATE.This section is effective July 1, 2009.

62.16    Sec. 44. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
62.17to read:
62.18    Subd. 36. Indian children. A child certified as eligible for adoption assistance
62.19under this section who is protected under the Federal Indian Child Welfare Act of 1978
62.20should, whenever possible, be served by the tribal governing body, tribal courts, or a
62.21licensed Indian child-placing agency.
62.22EFFECTIVE DATE.This section is effective July 1, 2009.

62.23    Sec. 45. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
62.24to read:
62.25    Subd. 37. Administration responsibilities. (a) Subject to commissioner approval,
62.26the legally responsible agency shall determine the eligibility for adoption assistance under
62.27this section, and for those children determined eligible, shall further determine each child's
62.28eligibility for title IV-E of the Social Security Act.
62.29(b) The legally responsible agency is responsible for assisting the commissioner with
62.30the administration of the adoption assistance by conducting assessments, reassessments,
62.31negotiations, and other activities as specified by the commissioner under this section.
62.32(c) The certifying agency shall notify an adoptive parent of a child's eligibility
62.33for Medicaid in their state of residence. The certifying agency shall refer the adoptive
62.34parent to apply for Medicaid in the financial office in their county of residence. The
63.1certifying agency shall inform adoptive parents of the requirement to comply with the
63.2rules of the applicable Medicaid program.
63.3EFFECTIVE DATE.This section is effective July 1, 2009.

63.4    Sec. 46. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
63.5to read:
63.6    Subd. 38. Procedures, requirements, and deadlines. The commissioner shall
63.7specify procedures, requirements, and deadlines for the administration of adoption
63.8assistance in accordance with this section. As needed, the commissioner shall review all
63.9procedures, requirements, and deadlines, including the designated forms, in consultation
63.10with counties, tribes, and representatives of parents, and may alter them as needed.
63.11EFFECTIVE DATE.This section is effective July 1, 2009.

63.12    Sec. 47. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
63.13to read:
63.14    Subd. 39. Administration of title IV-E programs. The title IV-E adoption
63.15assistance program shall operate within the statute and rules set forth by the federal
63.16government in the Social Security Act and Code of Federal Regulations.
63.17EFFECTIVE DATE.This section is effective July 1, 2009.

63.18    Sec. 48. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
63.19to read:
63.20    Subd. 40. Reporting. The commissioner shall specify required fiscal and statistical
63.21reports under section 256.01, subdivision 2, paragraph (q), and other reports as necessary.
63.22EFFECTIVE DATE.This section is effective July 1, 2009.

63.23    Sec. 49. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
63.24to read:
63.25    Subd. 41. Promotion of programs. The commissioner or the commissioner's
63.26designee shall actively seek ways to promote the adoption assistance program, including
63.27informing prospective adoptive parents of eligible children under the commissioner's
63.28guardianship of the availability of adoption assistance. All families who adopt children
63.29under the commissioner's guardianship must be informed as to the adoption tax credit.
63.30EFFECTIVE DATE.This section is effective July 1, 2009.

64.1    Sec. 50. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
64.2to read:
64.3    Subd. 42. Appeals and fair hearings. (a) A prospective adoptive parent has the
64.4right to appeal to the commissioner under section 256.045 when eligibility for adoption
64.5assistance is denied, and when payment or the agreement for an eligible child is modified
64.6or terminated.
64.7(b) An adoptive parent has additional rights to appeal to the commissioner under
64.8section 256.045. These include when the commissioner terminates or modifies the
64.9adoption assistance agreement or when the commissioner denies an application for
64.10adoption assistance. A prospective adoptive parent who disagrees with a decision by the
64.11commissioner prior to finalization of the adoption may request review of the decision
64.12by the commissioner, or may appeal the decision under section 256.045. An adoption
64.13assistance agrement must be signed and in effect prior to the court order that finalizes the
64.14adoption; however, in some cases, there may be extenuating circumstances as to why an
64.15agreement was not entered into prior to the adoption finalization. An adoptive parent who
64.16believes that extenuating circumstances exist in the case of an adoption finalizing prior to
64.17entering of an adoption assistance agreement may request a fair hearing. Parents have
64.18the responsibility of proving that extenuating circumstances exist. Parents are required to
64.19provide written documentation of each eligibility criterion at the fair hearing. Examples
64.20of extenuating circumstances include: relevant facts regarding the child were known by
64.21the placing agency and not presented to the parent prior to finalization of the adoption, or
64.22failure by the commissioner or the commissioner's designee to advise a potential parent
64.23about the availability of adoption assistance for a child in the state foster care system. If
64.24an appeals judge finds through the fair hearing process that extenuating circumstances
64.25existed and that the child met all eligibility criteria at the time the adoption was finalized,
64.26the effective date and any associated federal financial participation shall be retroactive to
64.27the date of the request for a fair hearing.
64.28EFFECTIVE DATE.This section is effective July 1, 2009.

64.29    Sec. 51. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
64.30to read:
64.31    Subd. 43. No new executions of adoption assistance agreements. After November
64.3224, 2010, no new adoption assistance agreements must be executed under this section.
64.33Agreements that were signed on or before November 24, 2010, and were not in effect
64.34because the adoption finalization of the child did not occur on or before November 24,
64.352010, must be renegotiated according to the terms of Northstar Care for Children under
65.1section 256O.001 to 256O.270. Agreements signed and in effect on or before November
65.224, 2010, must continue according to the terms of this section and applicable rules for
65.3the duration of the agreement, unless the adoptive parents choose to renegotiate their
65.4agreement in accordance with the terms of Northstar Care for Children. After November
65.524, 2010, this section and associated rules must apply to a child whose adoption assistance
65.6agreements were in effect on or before November 24, 2010, and whose adoptive parents
65.7have chosen not to renegotiate their agreement according to the terms of Northstar Care
65.8for Children.
65.9EFFECTIVE DATE.This section is effective July 1, 2009.

65.10    Sec. 52. Minnesota Statutes 2008, section 260B.441, is amended to read:
65.11260B.441 COST, PAYMENT FOR FOSTER CARE, RESIDENTIAL
65.12PLACEMENT, AND CLOTHING ALLOWANCE.
65.13    Subdivision 1. Responsibility for placement costs. In addition to the usual
65.14care and services given by public and private agencies, the necessary cost incurred by
65.15the commissioner of human services in providing care for such child shall be paid by
65.16the county committing such child which, subject to uniform rules established by the
65.17commissioner of human services, may receive a reimbursement not exceeding one-half of
65.18such costs from funds made available for this purpose by the legislature during the period
65.19beginning July 1, 1985, and ending December 31, 1985. Beginning January 1, 1986, the
65.20necessary cost incurred by the commissioner of human services in providing care for
65.21the child must be paid by the county committing the child. Chapter 256O establishes
65.22the responsibility for cost and payment for eligible children placed in family foster
65.23care settings or in permanent placement with a relative custodian or adoptive parent.
65.24Responsibility for placement costs and payment in any other setting is with the county,
65.25consistent with chapter 256G, or the tribes authorized in section 256.01, subdivision 14b.
65.26    Subd. 2. Federal title IV-E. Foster care maintenance payments under title IV-E of
65.27the Social Security Act are defined in subdivisions 4 and 5 and section 256O.020. Every
65.28effort must be made to establish a child's eligibility for title IV-E, using the criteria in the
65.29Social Security Act, United States Code, title 42, sections 670 to 676. Payment of title
65.30IV-E funds in Northstar Care for Children is specified in section 256O.260. In all other
65.31circumstances, the county or tribal agency authorized in section 256.01, subdivision 14b,
65.32responsible for payment of the maintenance costs must be reimbursed from the federal
65.33funds available for the purpose.
65.34    Subd. 3. Child resources. Where such When a child in foster care is eligible to
65.35receive a grant of Minnesota family investment program Retirement, Survivors, and
66.1Disability Insurance (RSDI), or Supplemental Security Income for the aged, blind, and
66.2disabled, or a foster care maintenance payment under title IV-E of the Social Security Act,
66.3United States Code, title 42, sections 670 to 676, the child's needs shall be met through
66.4these programs.
66.5    Subd. 4. Group residential maintenance payments. When a child is placed in
66.6a group residential setting, foster care maintenance payments are payments made on
66.7behalf of a child to cover the cost of providing food, clothing, shelter, daily supervision,
66.8school supplies, child's personal incidentals, and transportation needs associated with
66.9providing the items listed, including transportation to the child's home for visitation.
66.10Daily supervision in group residential settings includes routine day-to-day direction
66.11and arrangements to ensure the well-being and safety of the child. It may also include
66.12reasonable costs of administration and operation of the facility.
66.13    Subd. 5. Initial clothing allowance. An initial clothing allowance must be available
66.14to all children eligible for Northstar Care for Children under section 256O.210 and foster
66.15children placed in group residential settings based on the child's individual needs during
66.16the first 60 days of the initial placement. The agency shall consider the parent's ability
66.17to provide for the child's clothing needs and the residential facility contracts. A clothing
66.18allowance must be approved that is consistent with the child's needs. The amount of
66.19the initial clothing allowance must not exceed the monthly basic rate for the child's age
66.20group under section 256O.260.
66.21EFFECTIVE DATE.This section is effective January 1, 2011.

66.22    Sec. 53. REPEALER.
66.23(a) Minnesota Statutes 2008, sections 256.82, subdivisions 2, 3, 4, and 5; and
66.24257.85, are repealed effective January 1, 2011.
66.25(b) Minnesota Statutes 2008, section 259.67, subdivisions 1, 2, 3, 3a, 4, 5, 6, 7, 8, 9,
66.26and 10, are repealed effective July 1, 2009.
66.27(c) Minnesota Rules, parts 9560.0521, subparts 7 and 10; 9560.0650, subparts 1, 3,
66.28and 6; 9560.0651; 9560.0652; 9560.0653; 9560.0654; 9560.0655; 9560.0656; 9560.0657;
66.29and 9560.0665, subparts 2, 3, 4, 5, 6, 7, 8, and 9, are repealed effective January 1, 2011.
66.30(d) Minnesota Rules, parts 9560.0071; 9560.0081; 9560.0082; 9560.0083;
66.319560.0091; 9560.0093, subparts 1, 3, and 4; 9560.0101; and 9560.0102, are repealed
66.32effective July 1, 2009."
66.33Renumber the sections in sequence and correct the internal references
66.34Amend the title accordingly