JUVENILE/YOUTH LAW

Prepared by:
Melinda Hugdahl, Staff Attorney
Legal Services Advocacy Project
651-842-6907
mthugdahl@mnlsap.org

I. TRIBAL PLACEMENTS - POST TERMINATION OF PARENTAL RIGHTS
Chapter 65 (SF 250)
Amends Minn. Stat. § 260.771, subd. 3
Effective August 1, 2013

Statutorily overrules decision of the Minnesota Supreme Court in In Re Welfare of R.S., 805 N.W. 2d 44 (Minn. 2011). Requires the court, in proceedings for Indian children with original state court jurisdiction that are in a preadoptive or adoptive placement stage, to transfer jurisdiction to the tribe unless: (1) good cause is established; or (2) the tribe declines jurisdiction. Specifies that the terms "preadoptive placement" and "adoptive placement" have the meanings set forth in existing law found at Minn. Stat. § 260.755, subd. 3.

II. FAMILY REUNIFICATION ACT
Chapter 30 (SF 422)
Amends Minn. Stat. § 260C.101, subd. 2
Adds Minn. Stat. § 260C.329
Effective August 1, 2013

Note: This Act establishes a statutory procedure for, in limited circumstances the physical and legal reunification of parent and child.

A. Key Definition
Defines the term "reestablishment of the legal parent and child relationship" (reestablishment) to mean: (1) the physical reunification of a child under state guardianship and a previously terminated legal parent; and (2) the restoration of all rights, powers, privileges, immunities, duties, and obligations that were severed and terminated by the court.
Adds Minn. Stat. § 260C.329, subd. 2

B. Limitation of Who Can Bring Petition for Restoration of Rights
Limits the right to bring a petition for reestablishment to only the county attorney.
Adds Minn. Stat. § 260C.329, subd. 3

C. When Petition May Be Brought
Provides that a petition may be brought only if: (1) both the county social services agency and the county attorney agree that reestablishment is in the child's best interests; (2) the parent has corrected the conditions that led to an order terminating parental rights; (3) the parent is willing and has the capability to provide day-to-day care and maintain the health, safety, and welfare of the child; (4) the child has been in foster care for at least 36 months; (5) the child is at least 15 years of age; and (6) the child has not been adopted and is not the subject of an adoption placement agreement.
Adds Minn. Stat. § 260C.329, subd. 3

D. Circumstances Under Which a Petition May Not Be Brought
Prohibits the county attorney from bringing a petition for reestablishment if the parent has: (1) previously had parental rights terminated based on a finding in a legal proceeding of either sexual abuse or other conduct that resulted in the death of a minor; or (2) has been convicted of an "egregious harm" crime (enumerated Minn. Stat. § 260C.007, sub. 14).
Adds Minn. Stat. § 260C.329, subd. 4

E. Jurisdiction and Venue
Grants the juvenile court original and exclusive jurisdiction.
Amends Minn. Stat. § 260C.101, subd. 2

F. Venue
Mandates that the petition for reestablishment must be brought in the court that issued the order for guardianship and legal custody and conducts the reviews required under section 260C.607.
Adds Minn. Stat. § 260C.329, subd. 6

G. Procedure

1. Service
Requires service of the petition for reestablishment on: (1) the child; (2) the parent; (3) the child's guardian ad litem; and (4) the child's tribe if the child is subject to the Indian Child Welfare Act.
Adds Minn. Stat. § 260C.329, subd. 7

2. Evidentiary Standard
Permits the court to the grant the petition only if it finds by clear and convincing evidence that: (1) the threshold criteria have been met (e.g., the parent has corrected the conditions leading to termination); (2) reestablishment is in the child's best interests; and (3) the child desires to reside with the parent.
Adds Minn. Stat. § 260C.329, subd. 8

H. Effect of Reestablishment Order
Provides that, as of the effective date of a court order: (1) the child is the legal child of the parent; (2) the parent whose rights were terminated under a previous order of the court is restored to the status of legal parent; (3) the order placing the child under guardianship is dismissed; and (4) permanent legal and physical custody of the child is awarded to the parent. Clarifies that a reestablishment order has no effect on: (1) the legal rights of any other terminated parent; or (2) any legal sibling relationship.
Adds Minn. Stat. § 260C.329, subd. 11

Note: The Family Reunification Act summary was prepared by Ron Elwood, Supervising Attorney, Legal Services Advocacy Project. Phone: 651-842-6909. E-mail: relwood@mnlsap.org

III. JUVENILE DELINQUENCY RECORDS - ELECTRONIC ACCESS
Chapter 109 (HF 392)
Adds Minn. Stat. § 260B.171, subd. 9
Effective January 1, 2014 and applies to delinquency cases filed on or after that date

Prohibits public access to electronic court records in juvenile delinquency cases that have public hearings under Minn. Stat. § 260B.163, subd. 1 (i.e., felony offenses for children age 16 or older) unless: (1) a motion for certification as an adult has been filed by the prosecutor; (2) the prosecutor designated or requested prosecution as an Extended Jurisdiction Juvenile (EJJ); or (3) the juvenile was adjudicated as delinquent on a crime of violence (defined in Minn. Stat. § 624.715, subd. 5) not codified in Minnesota Statutes, Chapter 152 (drug offenses). Prohibits public access to electronic records in these cases if the prosecutor and juvenile agree.

IV. HOMELESS YOUTH ACT
Chapter 108, Article 3, Section 33 (HF 1233)
Amends Minn. Stat. § 245K.45
Effective July 1, 2013

A. Name
Changes the name of the Runaway and Homeless Youth Act to the Homeless Youth Act.

B. Grants
Establishes a Homeless Youth Act grant fund. Directs DHS to award grants to providers who work to reduce youth homelessness, including providers: (1) serving homeless youth or youth at risk of homelessness; (2) providing street and community or drop-in services; (3) providing emergency shelter; and (4) providing integrated supportive housing and transitional living. Allows flexible statewide spending depending upon areas of need.

C. Report
Requires DHS, beginning in February 2015, to report biennially to the Legislature on: (1) areas of the state with the greatest need for services and housing; (2) the distribution of grants; and (3) outcomes for youth served.

IV. HABITUAL TRUANT - COMPULSORY EDUCATION AGE
Chapter 116, Article 3, Sections 1, 2, and 31 (HF 630)
Amends Minn. Stat. §§ 120A.22, subds. 5 and 8; and 260C.007, subd. 19
Effective beginning in the 2014 - 2015 school year

Raises the minimum compulsory education age from 16 to 17. Redefines the term "habitual truant" to reflect the change in the compulsory education age.

VI. SAFE HARBOR FOR SEXUALLY EXPLOITED YOUTH

A. Definitions
Chapter 108, Article 3, Sections 37 - 40 and Section 48 (HF 1233)
Amends Minn. Stat. §§ 260B.007, subds. 6 and 16; and 260C.007, subds. 6 and 31
Repeals Minn. Stat. § 609.093
Various Effective Dates

1. Definition of Delinquent Child
Amends the definition of delinquent child to include any child, regardless of age, if the child is alleged to have engaged in conduct which would, if committed by an adult, violate any federal, state, or local law relating to being hired, offering to be hired, or agreeing to be hired by another individual to engage in sexual penetration or sexual conduct (i.e., is a sexually exploited youth).
Amends Minn. Stat. § 260B.007, subd. 6
Effective August 1, 2014, and applies to offenses committed on or after that date

2. Definition of Sexually Exploited Youth
Amends the definition of "sexually exploited youth" to include youth who are victims of criminal sexual conduct in the third degree (See Minn. Stat. § 609.344).
Amends Minn. Stat. § 260C.007, subd. 31
Effective May 24, 2013

3. Repeal of Diversion Program
Repeals the diversion program for juvenile prostitutes.
Note: This change is consistent with the overall policy to treat juvenile prostitutes as crime victims in child protection cases, rather than as criminal/delinquent offenders.
Repeals Minn. Stat. § 609.093
Effective May 24, 2013

B. Statewide Program
Chapter 108, Article 12, Sections 43 - 45; and Article 14, Sections 2 and 3 (HF 1233)
Adds Minn. Stat. §§ 145.4716; 145.4717; and 145.4718
Effective July 1, 2013

Creates a statewide "No Wrong Door Program" for sexually exploited youth.

1. Statewide Director
Creates a Statewide Director position for the program within the Department of Health. Enumerates the director's duties to include, among other things: (1) identifying best practices in serving sexually exploited youth; (2) collecting, organizing, and disseminating information on sexual exploitation and resources across the state; (3) maintaining a resource list on the Department of Health website; (4) developing and providing comprehensive training, including providing technical assistance to the regional navigators; and (5) applying for any federal anti-trafficking funds that could benefit victims in Minnesota.

2. Regional Navigator Grants
Creates Regional Navigator positions for each of six geographical regions to be established by the Department of Health. Authorizes the Statewide Director to award grants to each Regional Navigator. Requires each Regional Navigator to annually submit a report.

3. Evaluation
Requires the Statewide Director to conduct (or contract to conduct) comprehensive evaluations of Safe Harbor for Sexually Exploited Youth program. Requires: (1) the initial evaluation to be completed by June 30, 2015 and submitted to the Commissioner of the Department of Health by September 1, 2015; and (2) subsequent evaluations every two years. Requires the evaluations to consider whether: (1) the program is reaching intended sexually exploited youth; (2) services are available, accessible, and adequate; (3) identification of sexually exploited youth has increased; (4) there is coordination of investigations; (5) there is adequate access to services and housing; (6) there has been improved effectiveness of services; and (7) funds from prostitution-related forfeitures under Minn. Stat. § 609.3241 are being used for investigation, prosecution and services for sexually exploited youth.
Note: Laws 2013, Chapter 80 contains changes that direct a portion of restitution forfeitures to these services.

VII. VULNERABLE CHILDREN AND ADULTS ACT FUNDING
Chapter 108, Article 3, Section 34 (HF 1233)
Amends Minn. Stat. § 245M.40, subd. 1
Effective July 1, 2013

Freezes funding formula from the Vulnerable Children and Adults Act (formerly the CCSA fund) at the 2013 funding level. Prohibits the Department of Human Services, without first seeking public review and input, from: (1) changing the formula; or (2) seeking Legislative approval to change the formula.

NORTHSTAR CARE ACT FOR CHILDREN

Chapter 108, Articles 17, Sections 1-24 and Article 14, Section 2 (HF 1233)
Amends Minn. Stat. §§ 256.82, subds. 2 and 3; 257.85, subds. 2, 5, and 6; and 260C.446
Adds Minn. Stat. §§ 256.0112, subd. 10; 256N.001 - 256N.28; 259A.12; 260C.441; 260C.4412; and 260C.4413
Repeals Minn. Stat. §§ 256.82, subd. 4 (rulemaking for state payments); 260C.441 (payments of state/county placement costs); Minnesota Rules, part 9560.0650, subp. 1, 3, and 6; part 9560.0651; and part 9560.0655 (all address difficulty of care payments/assessments)
Effective January 1, 2015

Creates Northstar Care Act for Children, codified in a new chapter of law, Minnesota Statutes, Chapter 256N. Its central premise is to equalize payment rates between foster care, relative care assistance, and adoption assistance for children who are placed outside the home, including foster care, adoption placements, and permanent transfers of legal custody.

The Act is comprehensive, specifying lower payments for children under age 6 and including new assessment methods, new difficulty of care payments, and new background study and other requirements consistent with IV-E eligibility.

Overview
Generally, children:
• Currently in out of home placements will continue under existing programs unless the placement changes;
• Placed in family foster care (as defined by the new law) or children who change placements prior to December 31, 2014 will be in the "Pre-Northstar Program"; and
• Who enter or change placement on or after January 1, 2015 will enter the Northstar Care Program
Note: There are exceptions to these general provisions as described below.

Legislative Intent/Policy Purpose (Section 5)
• Public policy is to keep children safe from harm, and when they are harmed to provide immediate, appropriate service to ensure safety;
• Children do best in stable, safe, nurturing homes with lifelong relationships with adults;
• Whenever safely possible children are best served when nurtured and raised by their parents;
• When that isn't possible, an out-of-home placement may be necessary;
• If a child is removed from home, reunification should be sought if it can be accomplished safely;
• When reunification is not possible, another permanent home must be made available quickly, drawing from kinship sources whenever possible;

Larger Policy Statement/Purpose Specific to Northstar Care Payments:

"Minnesota understands the importance of having a comprehensive approach to temporary out-of-home care and to permanent homes for children who cannot be reunited with their families. It is critical that stable benefits be available to caregivers to ensure that the child's needs can be met whether the child's situation and best interests call for temporary foster care, transfer of permanent legal and physical custody to a relative, or adoption. Northstar Care for Children focuses on the child's needs and strengths, and the actual level of care provided by the caregiver, without consideration for the type of placement setting. In this way caregivers are not faced with the burden of making specific long-term decisions based upon competing financial incentives."

I. Transition to Northstar Care Act in 2015
(Sections 1-3, 7, 15, 16-20)

A. Continuance of Requirements and Benefits
Except as otherwise provided, children in foster care, adoption assistance, or relative custody prior to January 1, 2015 will continue with the same requirements and benefits unless or until: (1) their placement changes; (2) permanency is obtained; or (3) DHS initiates a transition to Northstar Care as permitted in Chapter 256N (described in more detail within information on each payment type herein).
(Section 7)

B. "Pre-Northstar Foster Care Program"
Children in family foster care on or before December 31, 2014, will be in the "Pre-Northstar Care Foster Care Program"
(Sections 3 and 20)

1. What "Family Foster Care" Includes

a. Emergency relative placements (See Minn. Stat. § 245A.035);
b. Licensed foster family or foster residence settings, or treatment foster care settings, served by a public or private child care agency; (See Minnesota Rules parts 2960.300-2960.3340 (licensing) and 9545.0755-9545.0845 (authorized agencies)
c. Family foster care homes approved by a tribe; and
d. Unlicensed, supervised settings for foster youth age 18-21.

a. Is reunified with parent or other relative;
b. Is adopted;
c. Has permanent legal and physical custody transfers;
d. Moves to a new foster care home, or experiences another event that ends the current placement episode; or
e. Reaches age 21.

3. County or Tribe Financial Responsibility
The county or tribe of financial responsibility is responsible for:

a. The local share of foster care maintenance and difficulty of care payments;
b. The initial clothing allowance;
c. Administrative payments to agencies;
d. Any other authorized supportive services payments, except as otherwise provided by law; and
e. Documenting the difficulty of care foster care and difficulty of care assessment rate (and each condition incorporated):

• Every 12 months;
• At the foster parent's request; or
• If the child's need changes in that placement.

The county/tribe of financial responsibility may continue (not an exclusive list):

a. Local funds of county money to reimburse foster parents for home damage done by a foster child, or additional insurance premiums for a foster child with a driver's license/permit; and
b. Paying fees (but not as foster care maintenance) for specific services provided by a foster care parent, based on the parent's skills, training, and experiences.

4. Payment Rates
Payment rates will be those in effect as of January 1, 2013;
(Section 3)

5. Difficulty of Care Payments
Difficulty of care payments must be maintained at the current rate (see Minnesota Rules, parts 9560.0652 and 9560.0653) and reassessed under existing reassessment tool (see Minnesota Rules part 9560.0654).

Note: When the population of children in this program is less than 10% of the 2012 population, DHS can use the assessment tool in the Northstar Care Program.

6. What Must Remain the Same in the Pre-Northstar Foster Care Program:
The following elements must remain the same in the Pre-Northstar Foster Care Program:

(1) Monthly payments to the family foster care provider;

(2) Notice and appeal procedures. (See Minnesota Rules, part 9560.0665);

(3) Medical Assistance eligibility determinations. (See Minn. Stat. § 256B.055)

7. Income to the Child in Pre-Northstar Foster Care Program

(1) If a child is eligible to receive Retirement Survivors Disability Insurance (RSDI), Supplemental Social Security (SSI) or IV-E foster care maintenance payments (see 42 USCA §§ 670-676), that income is to be used first to meet the child's needs in family foster care; and every effort must be made to security IV-E foster care funds to reimburse the county/tribe.

(2) If a child qualifies for home and community-based waiver services (community alternative care, traumatic brain injury or community alternatives for disabled individuals), those funds are not first used to meet the child's needs. In other words, they are not substituted for county/tribe funds.

(3) If waivered services are provided, assessment for both the maintenance and difficulty of care must be done by the county/tribe pursuant to Minnesota Rules, part 9560.0654 (difficulty of care assessments).
• If additional services are needed that cannot be provided by the foster care program, the needs must be referred to the waivered service program.

8. Relative Custody Assistance Transition
(Sections 16 - 18)
Statutory provisions regarding Relative Custody Assistance and Relative Custody Assistance agreements are limited to orders dated or agreements signed or in effect on or before November 26, 2014;
• If agreements were signed but not in effect on November 26, 2014 because the transfer of legal custody was not finalized, they must be renegotiated under the requirements of the Northstar Care Act provisions.

9. Adoption Assistance Agreements
(Section 19)

(1) No new adoption assistance agreements may be executed under current law after November 26, 2014; rather they must meet the requirements of the Northstar Care Act provisions.

(2) Agreements on or prior to that date must continue under existing statute and rule, unless the parents or DHS renegotiate the agreement under the Northstar Care Act. (See Minn. Stat. § 256N.28, subd. 7)

(3) Agreements that were signed on or before November 26, 2014 but the adoption was not finalized on that date must be renegotiated under the Northstar Care Act.

(4) As of November 26, 2014, children whose adoption agreements were signed and effective on or before that date will be considered to be in the Pre-Northstar Adoption Assistance Program, and existing law will also be renamed at that time.

C. Transition from Pre-Northstar Foster Care Program to Northstar Care
(Section 15, subd. 7)

1. Foster Care

a. A child in the Pre-Northstar Foster Care program who stays with the same caregiver will continue to receive Pre-Northstar Foster Care Program benefits, unless transitioned to Northstar Care;
DHS may transfer a child to Northstar Care upon the first event on or after January 1, 2015 -- See Section 8 - where the child:

(1) Moves to a different foster home or unlicensed supervised independent living setting;

(2) Has his/her legal and physical custody transferred to a relative and becomes eligible for guardianship assistance (if applicable);

(3) Is adopted and becomes eligible for adoption assistance (if applicable); or

(4) Re-enters foster care after a reunification or trial home visit.

(5) Upon eligibility, is assessed under the Northstar Care provisions (See Section 11) and its additional transition provisions (See Section 15).

 
2. Guardianship and Adoption Assistance

a. Transitioning from Pre-Northstar Foster Care Program to Northstar
DHS may seek a transition from Pre-Northstar Foster Care Program to Northstar:

(1) In accordance with the following priorities (in this order):
• Financial and budgetary constraints;
• Complying with federal regulations;
• Converting Pre-Northstar Care Relative Custody Assistance (see Minn. Stat. § 257.85) to Northstar Care Guardianship Assistance;
o Done by declaration and appropriate notice to the caregiver;
o Must not reduce the child's benefit;
• Improving a child's or children's permanency;
• Maintaining a child's or children's permanency;
• Accessing additional federal funds; and
• Administrative simplification.

(2) By offering a transition from existing adoption assistance (See Minnesota Statutes, Chapter 259A):
• Caregiver must agree to the offer before the transition can occur
• Caregiver must have a maximum of 90 days to review and accept the DHS offer;
• If the agreement is not accepted by the caregiver, the Pre-Northstar adoption assistance agreement (under Chapter 259A) continues until it terminates or another offer is accepted.

b. Terms of Transitions
(1) Transitions shall be accomplished according to procedures, deadlines, and requirements specified by DHS.

(2) Assessments will be equivalent to the most recently completed supplemental difficulty of care assessment;
• Unless DHS determines that a new assessment under Northstar Care would be more appropriate and in line with the transition priorities above.

(3) Specific Transition Rate payments for Northstar Care will be used (see Section 13, subd. 5), unless DHS determines that the regular base and supplemental difficulty of care payments would be more appropriate and consistent with the transition priorities (see above).

II. Northstar Care Act Provisions
(Sections 4-15)

A. Citation/Purpose
(Sections 4-5)
See summary sections above for these provisions.

B. Definitions
(Section 6)
Note: Definitions taken directly from Act provisions except where brackets appear.

1. Adoption Assistance
"Adoption assistance" means medical coverage as allowable under section 256B.055 and reimbursement of nonrecurring expenses associated with adoption and may include financial support provided under agreement with the financially responsible agency, the commissioner, and the parents of an adoptive child whose special needs would otherwise make it difficult to place the child for adoption to assist with the cost of caring for the child. Financial support may include a basic rate payment and a supplemental difficulty of care rate.

2. Assessment
"Assessment" means the process under section 256N.24 [Assessments] that determines the benefits an eligible child may receive under section 256N.26 [Benefits and Payments].

3. At-Risk Child
"At-risk child" means a child who does not have a documented disability but who is at risk of developing a physical, mental, emotional, or behavioral disability based on being related within the first or second degree to persons who have an inheritable physical, mental, emotional, or behavioral disabling condition, or from a background which has the potential to cause the child to develop a physical, mental, emotional, or behavioral disability that the child is at risk of developing. The disability must manifest during childhood.

4. Basic Rate
"Basic rate" means the maintenance payment made on behalf of a child to support the costs caregivers incur to provide for a child's needs consistent with the care parents customarily provide, including: food, clothing, shelter, daily supervision, school supplies, and a child's personal incidentals. It also supports typical travel to the child's home for visitation, and reasonable travel for the child to remain in the school in which the child is enrolled at the time of placement.

 
5. Caregiver
"Caregiver" means the foster parent or parents of a child in foster care who meet the requirements of emergency relative placement, licensed foster parents under chapter 245A [Licensing], or foster parents licensed or approved by a tribe; the relative custodian or custodians; or the adoptive parent or parents who have legally adopted a child.

6. Commissioner
"Commissioner" means the commissioner of human services or any employee of the Department of Human Services to whom the commissioner has delegated appropriate authority.

7. County Board
"County board" means the board of county commissioners in each county.

8. Disability
"Disability" means a physical, mental, emotional, or behavioral impairment that substantially limits one or more major life activities. Major life activities include, but are not limited to: thinking, walking, hearing, breathing, working, seeing, speaking, communicating, learning, developing and maintaining healthy relationships, safely caring for oneself, and performing manual tasks. The nature, duration, and severity of the impairment must be considered in determining if the limitation is substantial.

9. Financially Responsible Agency
"Financially responsible agency" means the agency that is financially responsible for a child. These agencies include both local social service agencies under section 393.07 [Local Service Agencies Powers and Duties] and tribal social service agencies authorized in section 256.01, subdivision 14b [American Indian Child Welfare Projects], as part of the American Indian Child Welfare Initiative, and Minnesota tribes who assume financial responsibility of children from other states. Under Northstar Care for Children, the agency that is financially responsible at the time of placement for foster care continues to be responsible under section 256N.27 [Northstar Federal, State and Local Shares] for the local share of any maintenance payments, even after finalization of the adoption of transfer of permanent legal and physical custody of a child.

10. Guardianship Assistance
"Guardianship assistance" means medical coverage, as allowable under section 256B.055 [Medical Assistance Eligibility Categories], and reimbursement of nonrecurring expenses associated with obtaining permanent legal and physical custody of a child, and may include financial support provided under agreement with the financially responsible agency, the commissioner, and the relative who has received a transfer of permanent legal and physical custody of a child. Financial support may include a basic rate payment and a supplemental difficulty of care rate to assist with the cost of caring for the child.

11. Human Services Board
"Human services board" means a board established under section 402.02 [Local Boards]; Laws 1974, chapter 293; or Laws 1976, chapter 340.

12. Initial Assessment
"Initial assessment" means the assessment conducted within the first 30 days of a child's initial placement into foster care under section 256N.24, subdivisions 4 and 5 [Assessments].

13. Legally Responsible Agency
"Legally responsible agency" means the Minnesota agency that is assigned responsibility for placement, care, and supervision of the child through a court order, voluntary placement agreement, or voluntary relinquishment. These agencies include local social service agencies under section 393.07[Local Services Agencies Powers and Duties], tribal social service agencies authorized in section 256.01, subdivision 14b [American Indian Child Welfare Projects], and Minnesota tribes that assume court jurisdiction when legal responsibility is transferred to the tribal social service agency through a Minnesota district court order. A Minnesota local social service agency is otherwise financially responsible.

14. Maintenance Payments
"Maintenance payments" means the basic rate plus any supplemental difficulty of care rate under Northstar Care for Children. It specifically does not include the cost of initial clothing allowance, payment for social services, or administrative payments to a child-placing agency. Payments are paid consistent with section 256N.26 [Benefits and Payments].

15. Permanent Legal and Physical Custody
"Permanent legal and physical custody" means a transfer of permanent legal and physical custody to a relative ordered by a Minnesota juvenile court under section 260C.515, subdivision 4 [Child Protection, Disposition Order of Transfer of Legal Custody to a Relative], or for a child under jurisdiction of a tribal court, a judicial determination under a similar provision in tribal code which means that a relative will assume the duty and authority to provide care, control, and protection of a child who is residing in foster care, and to make decisions regarding the child's education, health care, and general welfare until adulthood.

16. Reassessment
"Reassessment" means an update of a previous assessment through the process under section 256N.24 [Assessments] for a child who has been continuously eligible for Northstar Care for Children, or when a child identified as an at-risk child (Level A) under guardianship or adoption assistance has manifested the disability upon which eligibility for the agreement was based according to section 256N.25, subdivision 3, paragraph (b) [Renegotiation of Adoption Assistance/Guardianship Assistance for At-Risk Children]. A reassessment may be used to update an initial assessment, a special assessment, or a previous reassessment.

17. Relative
"Relative," as described in section 260C.007, subdivision 27, means a person related to the child by blood, marriage, or adoption, or an individual who is an important friend with whom the child has resided or had significant contact. For an Indian child, relative includes members of the extended family as defined by the law or custom of the Indian child's tribe or, in the absence of law or custom, nieces, nephews or first or second cousins, as provided in the Indian Child Welfare Act of 1978, United States Code, title 25, section 1903.

18. Relative Custodian
"Relative custodian" means a person to whom permanent legal and physical custody of a child has been transferred under section 260C.515, subdivision 4 [[Child Protection, Disposition Order of Transfer of Legal Custody to a Relative], or for a child under jurisdiction of a tribal court, a judicial determination under a similar provision in tribal code, which means that a relative will assume the duty and authority to provide care, control, and protection of a child who is residing in foster care, and to make decisions regarding the child's education, health care, and general welfare until adulthood.

19. Special Assessment
"Special assessment" means an assessment performed under section 256N.24 [Assessments] that determines the benefits that an eligible child may receive under section 256N.26 [Benefits and Payments] at the time when a special assessment is required. A special assessment is used when a child's status within Northstar Care is shifted from a pre-Northstar Care program into Northstar Care for Children and when the commissioner determines that a special assessment is appropriate instead of assigning the transition child to a level under section 256N.28 [Administration and Appeals].

20. Supplemental Difficulty of Care Rate
"Supplemental difficulty of care rate" means the supplemental payment under section 256N.26 [Benefits and Payments], if any, as determined by the financially responsible agency or the state, based upon an assessment under section 256N.24 [Assessments]. The rate must support activities consistent with the care a parent provides a child with special needs and not the equivalent of a purchased service. The rate must consider the capacity and intensity of the activities associated with parenting duties provided in the home to nurture the child, preserve the child's connections, and support the child's functioning in the home and community.

C. Northstar Care - General Provisions
(Section 7)

1. Who is Covered
The Act includes cases where children receive:

a. Foster Care Assistance. (See subsequent provisions for detail)
b. Guardianship Assistance (formerly Relative Care Assistance; see subsequent provisions for detail); or
c. Adoption assistance. (See subsequent provisions for detail)

2. New Methodology for Assessments
Provides new methodology for assessments that must take place before payments are made.

3. Payments
Payments must be pursuant to a negotiated, binding agreement.

4. Program Costs
Program costs will be shared between the state, county, local and certain tribal entities.

5. Program Administration
Program will be administered by DHS and the responsible county, tribe or other entity. Notifications and appeals will be conducted pursuant to the provisions contained within Chapter 256N.

D. Northstar Care - Foster Care Eligibility
(Section 8)

A child is eligible (on or after January 1, 2015) if all of the following criteria are met:

a. The child is placed away from the parent or legal guardian.

a. The legally responsible agency has placement authority and care responsibility. This includes children ages 18-21 who remain eligible for foster care. (See Minn. Stat. § 260C.451).

b. The legally responsible agency must have legal authority to place the child with a court order or voluntary placement consistent with:

a. Delinquency dispositions; (See Minn. Stat. § 260B.198)

b. Child protection proceedings; (See Minn. Stat. § 260C.001)

c. Children in voluntary foster care for treatment (see Minn. Stat. § 260C.01); or

d. Children ages 18-21 with continued foster care eligibility (see Minn. Stat. § 260C.451); AND

c. The child must be placed in:

(1) Emergency relative placement;

(2) A licensed foster family setting, licensed foster residence setting; , or treatment foster care setting licensed under Minnesota Rules, parts 2960.3000-2960.3340;

(3) A family foster home licensed or approved by a trail agency; or

(4) For children between the ages of 18 and 21, an unlicensed supervised independent living setting approved by the agency responsible for the youth's care.

d. A minor parent with their child in the same home is eligible for foster care payments, but only on the basis of the parent in placement, unless the agency also has placement authority over the minor's child.

e. Children ages 18-21 with continued foster care eligibility (see Minn. Stat. § 260C.451) is eligible is eligible for the same level of benefits (including difficulty of care payments) as children under age 18.

f. The basic and difficulty of care payments are intended to represent costs similar in nature to parents.

(1) It does not cover costs performed by the foster parent, facility, or administrative costs or fees;

(2) The agency may pay an additional fee for such services, but they must be distinguished from the daily fee amount reach through an assessment.

g. Transition to Northstar Care - foster care cases:

(1) All children in foster care as of December 31, 2014 will be in the Pre-Northstar Foster Care Program. (See Section 3, amending existing Minn. Stat. § 256.82, and Section 20, which creates the Pre-Northstar Foster Care Program in Minn. Stat. § 260C.4411)

(2) Children will transition into the Northstar Program upon the first event on or after January 1, 2015:
• The child moves to a different foster home or unlicensed supervised independent living setting;
• Has their legal and physical custody transferred to a relative and becomes eligible for guardianship assistance (if applicable);
• Is adopted and becomes eligible for adoption assistance (if applicable); or
• Re-enters foster care after a reunification or trial home visit.

(3) Upon eligibility, the child is assessed under the Northstar Care provisions (See Section 11) and its additional transition provisions. (See Section 15)

E. Northstar Care - Guardianship Assistance Eligibility
(Section 9)

1. General Eligibility for a Child
On or after January 1, 2015, a child is eligible if:

a. There has been a judicial determination that a transfer of legal and physical custody is in the child's best interests. (See Minn. Stat. § 260C.515, subd. 4);

(1) Or, in tribal court, a transfer under similar provisions that a relative will assume the duty and authority to provide the care, control, and protection of the child, make major decisions for the child until adulthood, and "that this is in the child's best interest is considered equivalent";

b. The child has either resided with the prospective relative custodian for six months, or the court has exempted that requirement based on:
(1) Expedited permanency is in the child's best interests;
(2) Expedited permanency can't be completed without guardianship assistance; and
(3) This relative is uniquely qualified to meet the child's needs.

c. The child meets the factors for the agency's determinations regarding permanency (see details in this section);

d. The child meets the citizenship and immigration requirements (see details in this section);

e. The child is age 14 (or will become 14 prior to the transfer of custody) and has been consulted regarding the transfer of custody;

f. There is a written, binding agreement between the caregiver, financially responsible agency and DHS prior to the transfer of custody;

g. The relative custodian(s) meet all background study requirements (see details in this section); and

h. The child meets any other criteria set forth in Section 473(d) of the Social Security Act. (See 42 USC § 673 - this is Title IV-E guardianship assistance)
 
(1) For the child's sibling, if the child resides in the same household based upon the agreement of the caregiver, agency and DHS, and meets the requirements of Section 473(d), the sibling is also eligible for Title IV-E guardianship assistance. If the sibling meets all other criteria except the requirements of Section 473(d), the sibling's payments must be from guardianship assistance not paid by IV-E funds.

2. Agency Determinations Regarding Permanency

a. Prior to the transfer of custody, the agency must make the following determinations before a child is eligible for guardianship assistance:
(1) Reunification and adoption are not appropriate options for the child; and
(2) The child demonstrates a strong attachment to the prospective relative custodian and the relative has a strong commitment to permanently caring for the child.

b. Supporting documentation must be included in the case file and available for review by DHS or the financially responsible agency upon request.

3. Citizenship/Eligibility
The child must be a U.S. citizen and eligible for federal benefits. (See the Personal Responsibility Work Opportunity and Reconciliation Act, Public Law 104-193, as amended)

4. Background Study/Disqualification

a. A background study must be conducted under Minn. Stat. § 245C.33 on the proposed custodian and any adult residing in the same home.

b. A prior foster care licensure background study (See Minn. Stat. § 245C.04) may also be used to fulfill this requirement, provided it is current at the time of application for guardianship assistance.

c. A custodian is disqualified from receiving guardianship assistance if the background study reveals a felony-level conviction (for the custodian or other adult in the household):

(1) At any time for:
• child abuse or neglect;
• spousal abuse;
• a crime against a child, including child pornography; or
• a crime involving violence, including rape, sexual assault, or homicide, but not including other physical assault or battery;

(2) Within the past five years for:
• physical assault:
• battery; or
• a drug-related offense.

5. Responsibilities for Determining Guardianship Assistance Eligibility

a. DHS Determines eligibility for:

(1) A child who is under legal responsibility of a Minnesota county social services agency, who otherwise would remain in foster care;

(2) A Minnesota child under tribal court jurisdiction who would otherwise remain in foster care; and

(3) An individual assuming permanent legal and physical custody of a child placed in Minnesota by another state or tribe.

(4) The financially responsible agency must prepare an eligibility determination for DHS review and approval. The determination must:
 Be on forms prescribed and approved by DHS;
 Be completed in accordance with DHS requirements and procedures; and
 Include supporting documentation for the determination.

b. Both DHS and the agency must:

(1) Make every effort to establish IV-E guardianship assistance eligibility;

(2) If a child is eligible for guardianship assistance, both DHS and the agency must negotiate a guardianship assistance agreement. (See detail below and also Section 12)

6. Guardianship Assistance Agreements

a. When DHS is Prohibited from Entering Into Agreements
DHS is prohibited from entering into agreements with:

(1) The child's biological parent;

(2) A person assuming permanent legal and physical custody (or the tribal court equivalent) without welfare system involvement;

(3) A person assuming permanent legal and physical custody of a child placed by another state or a tribe outside of Minnesota.

Note: Children who receive guardianship assistance under the Northstar program are expressly prohibited from being eligible for MFIP child-only grants under Minnesota Statutes, Chapter 256J.

b. Termination of Agreement
An agreement must be terminated when:

(1) The child has attained the age of 18, or up to age 21 when the child meets a condition for extension. (See detail below)

(2) The child is under 18, but the commissioner determines the relative custodian is no longer legally responsible for support of the child;

(3) DHS determines the relative custodian is no longer providing financial support to the child up to age 21;

(4) The child dies; or

(5) The relative custodian requests in writing termination of the guardianship assistance agreement.

c. When Relative Custodian No Longer Legally Responsible
A relative custodian is considered no longer legally responsible for support of the child when:

(1) Permanent legal and physical custody or guardianship of the child is transferred to another individual;

(2) The relative custodian dies;
• If that occurs, the agreement ends, but the assistance may continue if the provisions regarding court-appointed guardians in these circumstances apply. (See below)

(3) The child enlists in the military;

(4) The child gets married; or

(5) The child is legally determined to be an emancipated minor.

 
d. Court Appointed Guardians
Guardians are appointed by the court when the relative custodian dies, if DHS consents, the court can appoint a guardian, and guardianship assistance can continue.
• This does not apply if the child's custody is still with the county, tribe or child-placing agency;
• The appointment of a court-appointed guardian may only be for six months; if a permanent guardian is not found, the guardianship assistance terminates and cannot be resumed;
• Court-appointed guardianships are not eligible for assistance from Title IV-E funds.

e. Agreement Extensions for Children Between ages 18-21
Extensions for children who were younger than 16 when the guardianship assistance agreement was executed and are now between ages 18 and 21, who now;
• Remain dependent on the relative custodian for care and financial support; and

• Meet at least one of the following conditions:
o is completing a secondary education program or a program leading to an equivalent credential;
o is enrolled in an institution which provides postsecondary or vocational education;
o is participating in a program or activity designed to promote or remove barriers to employment;
o is employed for at least 80 hours per month; or
o is incapable of doing any of the activities described in items (i) to (iv) due to a medical condition where incapability is supported by professional documentation according to the requirements and procedures prescribed by the commissioner.

f. Extensions for Certain Children
Extensions for children who were not underage 16 when the agreement was executed and are now between ages 18 and 21, who now:

(1) Is dependent on the relative custodian for care and financial support; and

(2) DHS determines that the child has a physical or mental disability that impairs independent living and warrants continued financial assistance.

 
7. Beginning Guardianship Assistance under Northstar Care (New Cases)

a. Effective November 27, 2014, if a child meets the criteria for guardianship assistance under Northstar Care, an agreement may be negotiated, with an effective date of either January 1, 2015 or the date of the order transferring legal and physical custody, whichever is later.

b. Except for a child assessed at a Level A under Northstar Care, the payment rate schedules are based upon the Northstar Care rates for the child's age as of the date the agreement was signed by the proposed relative custodian.

8. Guardianship Assistance Transition to Northstar Care (existing cases)

a. Guardianship Assistance agreements executed under existing law (See Minn. Stat. § 257.85, but re-named to Pre-Northstar Care Adoption Assistance) prior to November 26, 2014 may be renegotiated by DHS under the provisions of Northstar Care.

b. DHS can waive Northstar Care requirements to facilitate these transitions.

c. Renegotiations must be in accordance with the following priorities:

(1) financial and budgetary constraints;

(2) complying with federal regulations;

(3) converting pre-Northstar Care for Children relative custody assistance under section 257.85 to the guardianship assistance component of Northstar Care for Children;

(4) improving permanency for a child or children;

(5) maintaining permanency for a child or children;

(6) accessing additional federal funds; and

(7) administrative simplification.

d. Additional process and requirements for transition for guardianship assistance are the same for adoption assistance and family foster care. (See detailed discussion of Section 15)

 
F. Northstar Care - Adoption Assistance
(Section 10)

1. General Eligibility
A child must meet all of the following:

a. Have special needs. (See requirements below)

b. Meet the following citizenship/immigration requirements:

(1) For IV-E adoption assistance, the child must be either a U.S. citizen or meet the requirements for federal public benefits under the Personal Responsibility Work Opportunity and Reconciliation Act, Public Law 104-193, as amended.

(2) For adoption assistance not paid with IV-E funds, the child must be a U.S. citizen or qualified alien under the Personal Responsibility Work Opportunity and Reconciliation Act, Public Law 104-193, as amended.

c. Meet either:

(1) Criteria for the federal adoption assistance program. (See 42 U.S.C. § 673); or

(2) Have had (1) foster care payments paid on the child's behalf while in out-of-home placement through the county or tribe, and (2) be either (i) under the guardianship of the commissioner or (ii)under the jurisdiction of a Minnesota tribe and adoption, according to tribal law, is in the child's documented permanency plan;

(3) Have a written, binding agreement (see Section 12 for requirements, etc., regarding agreements) among the adoptive parent, the financially responsible agency, and DHS established prior to the adoption finalization. If there is no financially responsible agency, the agency must be designated by DHS; and

d. The adoptive parent(s) must meet the following background study requirements:

(1) A study completed under existing law. (See Minn. Stat. § 259.41); and

(2) have no disqualifications based upon a felony-level conviction (for the custodian or other adult in the household):
• At any time for:
 child abuse or neglect;
 spousal abuse;
 a crime against a child, including child pornography; or
 a crime involving violence, including rape, sexual assault, or homicide, but not including other physical assault or battery; or
• Within the past five years for:
 physical assault;
 battery; or
 a drug-related offense
 A disqualification also serves as a basis to not approve adoption assistance payments

e. A child who meets all eligibility criteria except those specific to title IV-E adoption assistance must receive adoption assistance paid through funds other than title IV-E.

(1) Special Needs Determinations - A child will be determined to be special needs (a requirement for adoption assistance eligibility) if the child meets all of the following criteria:

a) There must be a determination that the child must not or should not be returned to the home of the child's parents as evidenced by:

(1) a court-ordered termination of parental rights;

(2) a petition to terminate parental rights;

(3) consent of parent to adoption accepted by the court under Minnesota Statutes, Chapter 260C;

(4) in circumstances when tribal law permits the child to be adopted without a termination of parental rights, a judicial determination by a tribal court indicating the valid reason why the child cannot or should not return home;

(5) a voluntary relinquishment under Minn. Stat. § 259.25 or Minn. Stat. § 259.47 or, if relinquishment occurred in another state, the applicable laws in that state; or
(6) the death of the legal parent or parents if the child has two legal parents;

b) A specific factor or condition exists which reasonably concludes that the child cannot be placed with adoptive parents without providing adoption assistance. This can be shown by:

(1) Social Security Administration determination that the child is eligible for medial or disability Supplemental Social Security Income (SSI) benefits;

(2) A documented physical, mental, emotional, or behavioral disability not covered under SSI eligibility criteria;

(3) A member of a sibling group being adopted at the same time by the same parent;

(4) An adoptive placement in the home of a parent who previously adopted a sibling for whom they receive adoption assistance; or

(5) Documentation that the child is an at-risk child; and

c) A reasonable but unsuccessful effort must have been made to place the child with adoptive parents without providing adoption assistance as evidenced by:

(1) A documented search for an appropriate adoptive placement; or

(2) DHS determines that a search is not in the best interests of the child.

d) Additionally meets all of the following additional requirements for documented searches In Special Needs Cases:
The requirement for a documented search for an appropriate adoptive placement without adoption assistance, including the registration of the child with the state adoption exchange and other recruitment methods (see below), must be waived if:
the child is being adopted by a relative and it is determined by the child-placing agency that adoption by the relative is in the best interests of the child; the child is being adopted by a foster parent with whom the child has developed significant emotional ties while in the foster parent's care as a foster child and it is determined by the child-placing agency that adoption by the foster parent is in the best interests of the child; or the child is being adopted by a parent that previously adopted a sibling of the child, and it is determined by the child-placing agency that adoption by this parent is in the best interests of the child.

f. For an Indian child covered by the Indian Child Welfare Act, a waiver must not be granted unless the child-placing agency has complied with the placement preferences required by the Indian Child Welfare Act. (See 25 U.S.C. § 1915(a))

g. To meet the requirement of a documented search for an appropriate adoptive placement for a child with a relative without adoption assistance, the child- placing agency minimally must:

(1) conduct a relative search as required by Minn. Stat. § 260C.221 and give consideration to placement with a relative, as required by Minn. Stat. § 260C.212, subdivision 2;

(2) comply with the placement preferences required by the Indian Child Welfare Act when the Indian Child Welfare Act applies. (See 25 U.S.C. § 1915(a));

(3) locate prospective adoptive families by registering the child on the state adoption exchange, (See Minn. Stat. § 259.75); and

(4) if registration with the state adoption exchange does not result in the identification of an appropriate adoptive placement, the agency must employ additional recruitment methods prescribed by DHS.

h. In addition, once the legally responsible agency has determined that placement with an identified parent is in the child's best interests and made full written disclosure about the child's social and medical history, the agency must ask the prospective adoptive parent if the prospective adoptive parent is willing to adopt the child without receiving adoption assistance under this section.

(1) If the identified parent is either unwilling or unable to adopt the child without adoption assistance, the legally responsible agency must provide documentation as prescribed by the commissioner to fulfill the requirement to make a reasonable effort to place the child without adoption assistance.

(2) If the identified parent is willing to adopt the child without adoption assistance, the parent must provide a written statement to this effect to the legally responsible agency. The statement must be also maintained in the permanent adoption record of the legally responsible agency.

(3) For children under guardianship of the commissioner, the legally responsible agency shall submit a copy of this statement to the commissioner to be maintained in the permanent adoption record.

2. Adoption Assistance Agreements

(1) DHS determines eligibility for agreements in the following cases:
• A child under the guardianship of the commissioner who would otherwise remain in foster care;
• A child who is not under the guardianship of the commissioner who meets title IV-E eligibility for adoption assistance (see 42 U.S.C. § 673) and no state agency has legal responsibility for placement and care of the child;
• A Minnesota child under tribal jurisdiction who would otherwise remain in foster care; and
• An Indian child being placed in Minnesota who meets title IV-E eligibility for adoption assistance. (See 42 U.S.C. §673)
The agency or entity assuming responsibility for the child is responsible for the nonfederal share of the adoption assistance payment.

(2) DHS is prohibited from entering into agreements with the following:
• A child's biological parent or stepparent;
• A child's relative under Minn. Stat. § 260C.007, subd. 27, with whom the child resided immediately prior to child welfare involvement unless: the child was in the custody of a Minnesota county or tribal agency pursuant to an order under chapter 260C or equivalent provisions of tribal code and the agency had placement and care responsibility for permanency planning for the child; and the child is under guardianship of the commissioner of human services (see Minn. Stat. §260C.325, subds. 1 or 3) or is a ward of a Minnesota tribal court after termination of parental rights, suspension of parental rights, or a finding by the tribal court that the child cannot safely return to the care of the parent;
• An individual adopting a child who is the subject of a direct adoptive placement (see Minn. Stat. § 259.47) or the equivalent in tribal code;
• A child's legal custodian or guardian who is now adopting the child; or
• An individual who is adopting a child who is not a citizen or resident of the United States and was either adopted in another country or brought to the United States for the purposes of adoption.

(3) The financially responsible agency must:
• Prepare an eligibility determination for DHS review and approval. The determination must:
Be on forms prescribed and approved by DHS;
Be completed in accordance with DHS requirements and procedures; and
Include supporting and verified documentation establishing the child as a special needs child.
Documentation from a qualified expert of a disability is limited to evidence deemed appropriate by DHS. Examples of appropriate documentation include, but are not limited to, medical records, psychological assessments, educational or early childhood
evaluations, court findings, and social and medical history.
Documentation that the child is at risk of developing physical, mental, emotional, or behavioral disabilities must be submitted according to policies and procedures prescribed by DHS.
• If there is no financially responsible agency, another agency must be designated by DHS.

(4) Both DHS and the agency must:
• Make every effort to establish IV-E adoption assistance eligibility;
• If a child is eligible for adoption assistance, both DHS and the agency must negotiate an adoption assistance agreement. (See Section 12)

 
3. Termination of Adoption Assistance Agreements

a. Adoption assistance agreements must terminate when:

(1) The child reaches age 18, or up to age 21 when the child meets a condition for extension; (See below)

(2) The child has not attained the age of 18, but DHS determines the adoptive parent is no longer legally responsible for support of the child;

(3) DHS determines the adoptive parent is no longer providing financial support to the child up to age 21;

(4) The child dies; or

(5) The adoptive parent requests in writing the termination of the adoption assistance agreement.

b. An adoptive parent is considered no longer legally responsible for support of the child in any of the following circumstances:

(1) Parental rights to the child are legally terminated or a court accepted the parent's consent to adoption under Minnesota Statutes, chapter 260C;

(2) Permanent legal and physical custody or guardianship of the child is transferred to another individual;

(3) Death of the adoptive parent;
Note: If there is no adoptive parent, generally the adoption assistance agreement ends, but the adoption assistance may continue if there is a subsequent adoption. (See below)

(4) The child enlists in the military;

(5) The child gets married; or

(6) The child is legally determined an emancipated minor.

c. Subsequent adoption when the adoptive parent(s) die.

(1) The child remains eligible for IV-E adoption assistance if all of the following criteria are met:
 The child is determined to be a child with special needs; and
 The subsequent adoptive parent resides in Minnesota.

(2) If IV-E adoption assistance was in place before the adoptive parent died (or the adoption dissolved), and the new adoptive parent resides outside of Minnesota, DHS has no responsibility for the case unless a Minnesota agency has care and placement responsibility at the time of subsequent adoption. If no Minnesota agency is involved at the point of the subsequent adoption, the case will be handled in the state of the newly-adoptive parent's residence.

d. Court-appointed guardian/custodian upon the adoptive parent's death.

(1) Unless custody of the child is with a state agency, if the child no longer has an adoptive parent, DHS may approve continued adoption assistance to a court- appointed guardian or custodian.

(2) The appointment is up to six months and upon terms set by DHS.

(3) Adoption assistance terminates if the child is not adopted at the end of the six month period, or the court hasn't appointed another permanent guardian. (See Minn. Stat. § 260C.325 (governing (Guardianship after termination of parental rights), Minn. Stat. § 525.5-313, or similar law of another jurisdiction).

e. Adoption assistance paid to court-appointed guardians/custodians must not be paid from Title IV-E funds.

4. Extension of Adoption Assistance for Children ages 18-21

a. If Child Was Age 16 Prior to Adoption Assistance Agreement
If a child was age 16 prior to the adoption assistance agreement, the assistance may be extended to age 21 if the child is: (1) dependent on the adoptive parent for care and financial support; and (2) meets one of the following:

(1) Is completing a secondary education program or a program leading to an equivalent credential;

(2) Is enrolled in an institution that provides postsecondary or vocational education;

(3) Is participating in a program or activity designed to promote or remove barriers to employment;

(4) Is employed for at least 80 hours per month; or

 
(5) Is incapable of doing any of the activities described in items the above due to a medical condition where incapability is supported by documentation from an expert according to the requirements and procedures prescribed by the commissioner.

b. If Child Was Under Age 16 Prior to Adoption Assistance Agreement
If a child was under age 16 prior to the adoption assistance agreement, the assistance may be extended to age 21 if the child is dependent on the adoptive parent for care and financial support and either:

(1) Is enrolled in a secondary education program or a program leading to the equivalent; or

(2) Possesses a physical or mental disability that impairs the capacity for independent living and DHS determines warrants continuation of financial assistance.

c. Requirements and Timing for Extension of Adoption Assistance

(1) Request for extension must be made to DHS within 60 days of current agreement's expiration.

(2) Must be in writing and on forms prescribed by DHS (including supporting documentation needed).

(3) The extended agreement must be executed by the parent and DHS at least ten business days prior to the expiration of the current adoption assistance agreement.

(4) If requested by an agency for a child that will turn 18 within sixty days of the first submission for adoption assistance, an application for extension (with all required documentation) must be submitted with the adoption assistance application.

5. Adoption Assistance Transitions to Northstar Care

a. New Cases between November 27, 2014 and January 1, 2015
Agreements will be negotiated under the terms of Northstar Care agreements. (See Section 12)
Must be effective the later of January 1, 2015 or the date of the court order finalizing the adoption;
Unless the child is determined to be an "at risk child" assessed as Level A, the maximum rate schedule will be pursuant to the basic payment under Northstar Care (see Section 13) based on the age of the child on the date the agreement is signed by the adoptive parent;

If a child is assessed at Level A as an at-risk child, the payment rate is set at the special rate for at-risk children. (See Section 12)

b. Existing cases
With respect to agreements negotiated under Chapter 259A of existing law prior to November 27, 2014:

(1) DHS can offer an adoption assistance agreement under the Northstar Care provisions on or before November 26, 2014;

(2) To facilitate this process, DHS can waive any Northstar Care eligibility requirement;

(3) Maximum rates must be in accordance with Pre-Northstar Care rates. (See Section 15, subd. 7)

G. Assessments (Including Special Assessments and Reassessments)
(Section 11)
Except as specified below, each child eligible for Northstar Care foster care, guardianship assistance or adoption assistance must be assessed to determine the amount and level of benefits for that child.

1. Assessment Tool
DHS will establish the assessment tool to determine the basic and supplemental difficulty of care payment, and the process and documentation required for assessment and re-assessments.

a. DHS must develop an assessment tool that takes the child's strengths and needs and the extra parenting provided by the caregiver into consideration.

b. DHS must also consider the caregiver's need for child care, with greater consideration for younger children.
• If child care is needed through Northstar, the payment levels will be adjusted. (See discussion below)
• If a caregiver receives child care assistance under Chapter 119B, the caregiver is not eligible for child care payments under Northstar.

c. If an assessment is required, a child must be assessed at the basic level, level B, or one of ten supplemental difficulty of care levels, levels C to L. (See chart in Section 13)]

d. An assessment must not be completed for:

(1) A child eligible for Northstar guardianship assistance or adoption assistance who is determined to be an at-risk child.
• A child under this clause must be assigned level A under Minn. Stat. § 256N.26, subdivision 1; and

(2) A child transitioning into Northstar Care for Children from the Pre-Northstar program (see Section 15, subd. 7), unless DHS determines an assessment is appropriate.

e. Foster care initial assessments:

(1) For a child entering Northstar foster care, the initial assessment must be completed by the financially responsible agency (in consultation with the legally responsible agency, if different) within 30 days of placement. The assessment must be completed in consultation with the caregiver, including face-to-face contact with the caregiver.

(2) If the foster parent is unable or unwilling to participate in the assessment, the child must be assessed at the basic level, Level B. (See Section 13). The foster parent must be given notice. (See notice discussion below)

(3) In cases where the emergency foster care rate is used in an initial placement (see Section 13), the agency has up to 30 days to complete the initial assessment;

f. Assessment Tool - Extraordinary Levels

(1) As part of developing the assessment tool, requires DHS to also create "extraordinary levels" which are five levels that can be added to a child's difficulty of care levels available under Northstar. (See Section 13)

(2) The extraordinary levels will be available when all of the following apply:
• The child has extraordinary needs as determined by the assessment tool developed by DHS, and the child meets other requirements established by DHS, such as a minimum score on the assessment tool;
• The child's extraordinary needs require extraordinary care and intense supervision provided by the child's caregiver as part of the parental duties as defined in the supplemental difficulty of care rate. (See Section 6, subd. 21).

• This extraordinary care is required so that the child can be safely cared for in the home and community, and prevents residential placement;
• The child is physically living in a foster family setting (see Minnesota Rules, part 2960.3010, subp. 23), or physically living in the home with the adoptive parent or relative custodian; and
• The child is receiving the services for which the child is eligible through medical assistance programs or other programs that provide necessary services for children with disabilities or other medical and behavioral conditions to live with the child's family, but the agency with caregiver's input has identified a specific support gap that cannot be met through home and community support waivers or other programs that are designed to provide support for children with special needs.

(3) What the agency must document as part of the assessment that suggests an extraordinary level of care (must meet all):
• The assessment tool that determined that the child's needs or disabilities require extraordinary care and intense supervision;
• A summary of the extraordinary care and intense supervision that is provided by the caregiver as part of the parental duties as defined in the supplemental difficulty of care rate. (See Section 6, subd. 21);
• Confirmation that the child is currently physically residing in the foster family setting or in the home with the adoptive parent or relative custodian;
• The efforts of the agency, caregiver, parents, and others to request support services in the home and community that would ease the degree of parental duties provided by the
caregiver for the care and supervision of the child.

This includes documentation of:
(1) services provided for the child's needs or disabilities; and
(2) the services that were denied or not available from the local social service agency, community agency, the local school district, local public health department, the parent or child's medical insurance provider;
• The specific support gap identified that places the child's safety and well-being at risk in the home or community and is necessary to prevent residential placement; and
• The extraordinary care and intense supervision provided by the foster, adoptive, or guardianship caregivers to maintain the child safely in the child's home and prevent residential placement
• Must also show that the care and supervision cannot be supported by medical assistance or other programs that provide services, necessary care for children with disabilities, or other medical or behavioral conditions in the home or community.

(3) The agency is seeking a determination of extraordinary care; they must forward the underlying assessment tool with the appropriate documentation for the assessment and determination of extraordinary care to DHS. If approved, the payment level is retroactive to the date the assessment was forwarded to DHS.

g. Assessment Tool - Child Care

(1) When the caregiver's need for child care must be included as part of the assessment:

(2) The child is under age 13;

(3) All available adult caregivers are employed or attending educational or vocational training programs; and

(4) The caregiver does not receive child care assistance for the child under Chapter 119B.

(5) For children younger than seven years of age, the level determined by the non-child care portions of the assessment must be adjusted based on the average number of hours child care is needed each week due to employment or attending a training or educational program as follows:
• No adjustment if fewer than ten hours or if the caregiver is participating in the child care assistance program under Chapter 119B;
• Increase one level if ten to 19 hours or if needed during school summer vacation or equivalent only;
• Increase two levels if 20 to 29 hours;
• Increase three levels if 30 to 39 hours; and
• Increase four levels for 40 or more hours, increase four levels.

(6) For children ages 7-12, the level determined by the non-child care portions of the assessment must be adjusted based on the average number of hours child care is needed each week due to employment or attending a training or educational program as follows:
• No adjustment if fewer than 20 hours, needed during school summer vacation or equivalent only, or if the caregiver is participating in the child care assistance program under Chapter 119B;
• Increase one level if 20 to 39 hours; and
• Increase two levels if 40 or more hours.
• In addition, when the child attains the age of seven, the child care allowance must be reduced by reducing the level to that available for children ages 7-12 who need child care.
• For children in foster care, benefits (see Section 15 - includes base payments, difficulty of care, etc.) must be automatically reduced when the child turns seven.
• For children who receive guardianship assistance or adoption assistance, agreements must include similar provisions to ensure that the benefit provided to these children does not exceed the benefit provided to children in foster care.
(7) When the child attains the age of 13, the child care allowance must be eliminated by reducing the level to that available prior to any consideration of the caregiver's need for child care.
• For children in foster care, benefits (see Section 15 - includes base payments, difficulty of care, etc.) must be automatically reduced when the child attains the age of 13.
• For children who receive guardianship assistance or adoption assistance, agreements must include similar provisions to ensure that the benefit provided to these children does not exceed the benefit provided to children in foster care.

(8) The child care allowance is not available to caregivers who receive child care assistance under Chapter 119B.
• The caregiver must notify DHS if they subsequently receive child care assistance, and the level must be reduced to the level assessed prior to consideration for the need for child care.

(9) DHS must design the overall assessment tool so that the levels applicable to the non-child care portions of the assessment
at a given age accommodate the requirements and adjustments for child care payments.

2. Special Assessments

a. Required for guardianship assistance agreement when:

(1) The child was not placed in foster care with the prospective relative custodian prior to the negotiation of the guardianship assistance agreement; or

(2) Any requirement for reassessment is met. (See requirements below)

b. Required for adoption assistance agreement when:

(1) The child was not placed in foster care with the prospective adoptive parent or parents prior to the negotiation of the adoption assistance agreement; or

(2) Any requirement for reassessment is met. (See requirements below)

c. The special assessment must be completed prior to the establishment of a guardianship assistance or adoption assistance agreement on behalf of the child.

d. A special assessment is also required when:

(1) A child transitions from a pre-Northstar Foster Care for Children program into Northstar Care for Children; and

(2) DHS determines that a special assessment is appropriate instead of assigning the transition child to a level for children transitioning from Pre-Northstar Foster Care Program to Northstar programs. (See Section 15, subd. 6)

e. Completion:

(1) Must be completed by the financially responsible agency in consultation with the child's caregiver, but face-to-face contact is not required.

(2) If a new special assessment is required prior to the effective date of the guardianship assistance agreement, it must be completed by the financially responsible agency (in consultation with the legally responsible agency if different).
• If the prospective relative custodian is unable or unwilling to cooperate with the special assessment process, the child shall be assigned the basic level, level B. (See Section 13, subd. 3)
• However, if the child is known to be an at-risk child, the child shall be assigned level A. (See Section 13, subd. 1)

(3) If a special assessment is required prior to the effective date of the adoption assistance agreement, it must be completed by the financially responsible agency (in consultation with the legally responsible agency if different).
• If there is no financially responsible agency, the special assessment must be completed by the agency designated by DHS.
• If the prospective adoptive parent is unable or unwilling to cooperate with the special assessment process, the child must be assigned the basic level, level B. (See Section 13, subd. 3)
However, if the child is known to be an at-risk child, the child shall be assigned level A. (See Section 13, subd. 1)

(4) Notice to the prospective relative custodians or prospective adoptive parents must be provided. (See requirements below)

3. Reassessments

a. Reassessments for an eligible child must be completed within 30 days of any of the following events:

(1) For a child in continuous foster care:
• When six months have elapsed since completion of the last assessment; or
• A change of placement location;

(2) For a child in foster care, at the request of the financially responsible agency or legally responsible agency;

(3) At the request of DHS; or

(4) At the request of the caregiver. (See below)

b. Caregiver requests for Reassessment

(1) Must be made in writing to the financially responsible
agency
• If there is no financially responsible agency, the agency designated by DHS;
• The written request must include the reason for the request and the name, address, and contact information of the caregivers.

• Guardianship Assistance/Adoption Assistance cases:
Reassessment may be requested if at least six months have elapsed since any previously requested review;
• Foster Care Assistance cases:
 A foster parent may request reassessment in less than six months with written documentation that there have been significant changes in the child's needs that necessitate an earlier reassessment.
• At-risk child cases:
 If the caregiver has satisfied DHS with written documentation from a qualified expert that the potential disability upon which eligibility for the agreement was based has manifested itself, consistent requirements for renegotiating agreements for at-risk children. (See Section 12, subd. 3, paragraph (b))

(2) If the reassessment cannot be completed within 30 days of the caregiver's request, the agency responsible for reassessment must notify the caregiver of the reason for the delay and a reasonable estimate of when the reassessment can be completed.

c. Reassessments must be completed in consultation with the child's caregiver, but face-to-face contact with the caregiver is not required to complete the reassessment.

d. For foster children eligible for foster care benefits (see Section 8), reassessments must be completed by the financially responsible agency, in consultation with the legally responsible agency if different.

e. If reassessment is required after the effective date of the guardianship assistance agreement, the reassessment must be completed by the financially responsible agency.

(1) If a reassessment is required after the effective date of the adoption assistance agreement, it must be completed by the financially responsible agency or, if there is no financially responsible agency, the agency designated by DHS.

• If the child's caregiver is unable or unwilling to cooperate with the reassessment, the child must be assessed at level B. (See Section 13, subd. 3) However, if the child has an adoption assistance or guardianship assistance agreement in place and is known to be an at-risk child, in which case the child must be assessed at level A. (See Section 13, subd. 1).

4. Approval - all assessments

a. An agency completing initial assessments, special assessments, or reassessments must designate one or more supervisors or other staff to examine and approve assessments completed by others in the agency using the assessment tool. The agency person approving an assessment must not be the case manager or staff member completing that assessment.

b. In cases where a special assessment or reassessment at a caregiver's request for guardian assistance and adoption assistance is required, DHS shall review and approve the assessment as part of the eligibility determination process for guardianship assistance (see Section 9), or for adoption assistance (see Section 10).
(1) The assessment determines the maximum for the negotiated agreement amount. (See Section 12)

c. The new rate is effective the calendar month that the assessment is approved, or the effective date of the agreement, whichever is later.

5. Rates - after assessments

a. The assessment tool established by DHS determines the monthly benefit level for children in foster care.

b. The monthly payment for guardian assistance or adoption assistance may be negotiated up to the monthly benefit level under foster care for those children eligible for a benefit for medical assistance, basic rate or a difficult of care payment. (See Section 13, subd. 1)

6. Notices Required - Initial Assessments/Reassessments:

a. Written notice must be given by the agency completing the initial assessment or reassessment.

b. Initial assessment notices must be sent within 15 days of completion of the initial assessment and must minimally include the following:

(1) Summary of the child's completed individual assessment used to determine the initial rating;

(2) Statement of rating and benefit level;

(3) Statement of the circumstances under which the agency must reassess the child;

(4) Procedure to seek reassessment;

(5) Notice that the caregiver has the right to a fair hearing review of the assessment and how to request a fair hearing, consistent with Minn. Stat. § 256.045, subd. 3; and

(6) Name, telephone number, and e-mail, if available, of a contact person at the agency completing the assessment.

c. Reassessment notices must be sent within 15 days after the completion of the reassessment and must minimally include the following:

(1) Summary of the child's individual assessment used to determine the new rating;

(2) Any change in rating and its effective date;

(3) Procedure to seek reassessment;

(4) Notice that if a change in rating results in a reduction of benefits, the caregiver has the right to a fair hearing review of the assessment and how to request a fair hearing consistent with Minn. Stat. § 256.045, subd. 3;

(5) Notice that a caregiver who requests a fair hearing of the reassessed rating within ten days may continue at the current rate pending the hearing, but the agency may recover any overpayment; and

(6) Name, telephone number, and e-mail, if available, of a contact person at the agency completing the reassessment.

7. Notices Required - Special Assessments

a. Notice is not required for special assessments since the notice is part of the guardianship assistance or adoption assistance negotiated agreement (See Section 12 for terms and requirements for agreements).

H. Agreements for Guardianship and Adoption Assistance
(Section 12)

1. Establishment of Agreement
An agreement between the caregiver, financially responsible agency (or other agency designated by DHS if no such agency exists) and DHS must be established prior to adoption or a transfer of legal and physical custody for the caregiver to receive Guardianship Assistance or Adoption Assistance.

2. Requirements for an Approved Agreement
Requirements for an approved agreement:

a. Must be on the forms approved by DHS;

b. Must specify:

(1) The duration of the agreement;

(2) The nature and amount of any payment, services, and assistance to be provided under such agreement;

(3) The child's eligibility for Medicaid services;

(4) The terms of the payment, including any child care portion (see Section 11, subd. 3 for child care portion determination);

(5) Eligibility for reimbursement of nonrecurring expenses associated with adopting or obtaining permanent legal and physical custody of the child, to the extent that the total cost does not exceed $2,000 per child;

(6) That the agreement must remain in effect regardless of the state of which the adoptive parents or relative custodians are residents at any given time;

(7) Provisions for modification of the terms of the agreement, including renegotiation of the agreement; and

(8) The effective date of the agreement;

c. Must be signed by all parties to the agreement;

(1) Initially, the agreement is signed by the agency and the caregiver. The agency forwards the agreement with the eligibility determinations and any required supporting documentation to DHS for review, approval and signature.

(2) After signed by all parties, a copy must be given to each party; and

(3) DHS maintains the official record of the signed agreement.
• The effective date of the guardianship assistance agreement must be the date of the court order that transfers permanent legal and physical custody to the relative.
• The effective date of the adoption assistance agreement is the date of the finalized adoption decree.

3. Conditions that Void the Agreement
Termination or disruption of the preadoptive placement or the foster care placement prior to assignment of custody makes the agreement with that caregiver void.

4. At-Risk Children: Establishment of Payment Amounts

a. Generally, a monthly payment will be made pursuant to the agreement (and unless otherwise specified, based upon the assessment tool and the payment levels in Section 13).

(1) If the child is determined to be an at-risk child, the special at-risk monthly payment will be made (see Section 13, subd. 7) until the caregiver provides written documentation from a qualified expert that the potential disability upon which at-risk eligibility was based has manifested itself. DHS has discretion to determine what documentation is appropriate.

Note: Essentially, it appears that under these provisions, the agreement for at-risk children is the special at risk payment under Level A, which provides a monthly payment of $1 (see Section 13, subds. 4 and 7). This arrangement appears to also essentially claim the future ability to receive additional funds, up to Northstar Care payments for the applicable adoption assistance, guardianship assistance or foster care payment for that child if and when a condition manifests itself.

b. If the at-risk behavior manifests itself, the caregiver has the right to request reassessment and renegotiation.

5. Guardianship Assistance Agreements

a. The initial amount of the monthly guardianship assistance payment must be equivalent to either:

 
(1) The foster care rate in effect at the time that the agreement is signed less any offsets for income attributable to the child (See Section 13, subd. 11_; or
(2) A lesser negotiated amount if agreed to by the prospective relative custodian and specified in that agreement, unless:
• The child is identified as at-risk; or
• The guardianship assistance agreement is entered into when a child is under the age of six.

b. An at-risk child must be assigned level A and receive the special at-risk monthly payment (See Section 13, subds. 4 and 7, and is a $1 per month payment) unless and until the potential disability manifests itself, as documented by a qualified expert, and DHS modifies and approves the agreement accordingly; and

c. The amount of the monthly payment for a guardianship assistance agreement for a child under the age of six must be the alternate rate set forth in Section 13, subd. 5.

6. Adoption Assistance Agreements

a. For a child in foster care with the prospective adoptive parent immediately prior to adoptive placement, the initial amount of the monthly adoption assistance payment must be:

(1) Equivalent to the foster care rate in effect at the time that the agreement is signed less any offsets for income attributable to the child (See Section 13, subd. 11), or

(2) A lesser negotiated amount if agreed to by the prospective adoptive parents and specified in that agreement;
• Unless the child is identified as at-risk or the adoption assistance agreement is entered into when a child is under the age of six;

b. An at-risk child must be assigned level A and receive the special at-risk monthly payment (see Section 13, subds. 4 and 7, and is a $1 per month payment) unless and until the potential disability manifests itself, as documented by a qualified expert, and DHS modifies and approves the agreement accordingly.

c. The amount of the monthly payment for a guardianship assistance agreement for a child under the age of six must be the alternate rate set forth in Section 13, subd. 5;

d. For a child who was in the guardianship assistance program immediately prior to adoptive placement, the initial amount of the adoption assistance payment must be:

(1) Equivalent to the guardianship assistance payment in effect at the time that the adoption assistance agreement is signed; or
(2) A lesser amount if agreed to by the prospective adoptive parent and specified in that agreement; and

e. For a child who is not in foster care placement or the guardianship assistance program immediately prior to adoptive placement or negotiation of the adoption assistance agreement, the initial amount of the adoption assistance agreement must be determined using the assessment tool and process in this section and the corresponding payment amount outlined in section 13.

7. Renegotiation of Agreements (Guardianship and Adoption Assistance)

a. May be requested by the custodian/parent when there is a change in the child's needs or the family's circumstances.

(1) When a relative custodian or adoptive parent requests renegotiation of the agreement, a reassessment of the child must be completed (see Section 11, subds. 9 and 10);

(2) If the reassessment indicates that the child's level has changed, the financially responsible agency (or other agency designated by DHS if there is no financially responsible agency) and the caregiver must renegotiate the agreement that includes payment consistent with the level determined through the reassessment;

(3) The agreement must not be renegotiated unless DHS, the financially responsible agency, and the caregiver mutually agree to the changes;

(4) The effective date of any renegotiated agreement must be determined by DHS;

(5) However, for an at-risk child, a relative custodian or adoptive parent of an at-risk child may request renegotiation of the agreement for a payment above the special at-risk monthly payment (see Section 13, subd. 7 - the special at-risk monthly payment is $1), if:
• The caregiver has written documentation from a qualified expert that the potential disability upon which eligibility for the agreement was based has manifested itself; documentation of the disability must be limited to evidence deemed appropriate by DHS;
• Prior to renegotiating the agreement, a reassessment of the child must be conducted to negotiate an appropriate payment amount;
• The agreement must not be renegotiated unless DHS, the financially responsible agency, and the caregiver mutually agree to the changes; and
• The effective date of any renegotiated agreement must be determined by DHS.

(6) Renegotiation must occur (see Section 13, subd. 13) if a child becomes, or is no longer eligible for:
• Retirement Survivor's Disability Insurance (RSDI);
• Veteran's Benefits;
• Railroad Retirement Benefits; or
• Black Lung Benefits.

I. Benefits and Payments
(Section 13)

1. Benefit Types
Generally, there are three benefit types under Northstar Care:

a. Medical Assistance Payments;
(1) Eligibility is determined under Minn. Stat. § 256B.055.

b. Basic Payment;
(1) The amount varies based upon the age of the child (see Section 13, subd. 3).
• Except that at-risk children are only eligible for a $1 payment per month. (See detail below)

c. Supplemental Difficulty of Care Payment
(1) These payment amounts are determined by assessments.
(2) The payments are set in levels, from Level A - Level Q. (See Section 13, subd. 4 for payment amounts for each level)

2. Alternative Payment Rates
Alternative payment rates apply to:

a. Children under age 6 entering Northstar Care guardianship assistance or adoption assistance.
(1) The child receives 50% of what s/he otherwise would have received through the basic rate and/or the difficulty of care rate.

b. A child transitioning in from the Pre-Northstar Foster Care Program to Northstar Care must receive basic and difficulty of care supplemental payments according to those provisions.

(1) Except that children whose transition from the Pre-Northstar Foster Care Program to Northstar Care is by DHS' specific declaration. (See Section 15, subd. 7 for transition; Section 13, subd. 5 for alternate payment rate provision)
• In these cases, the child receives 50% of what they otherwise would have received through the basic rate and/or the difficulty of care rate.

 
c. Emergency Initial Foster Care Placements.

(1) Amount of payment
• The appropriate basic rate (based on the child's age); plus
• Supplemental Difficulty of Care Level D.

(2) Payment can only be up to 30 days.
• If the child remains in placement, an assessment must be conducted, but payments stop in the interim.

(3) Requirements for payments:
• Child placed by court order or immediate custody by a police officer. (See Minn. Stat. § 260C.175, subds. 1 and 2, or equivalent tribal code provision)
• At least one of the following conditions must also be met to receive this payment:
 The child's initial foster care placement must be in Minnesota;
 The child's previous placement was more than two years ago; or
 The child's previous placement was for fewer than 30 days and an assessment was not completed by an agency listed in Section 11 (Assessments);

(4) Assessment while in Emergency Placement
• The financially responsible agency, in consultation with the legally responsible agency (if different) may replace the emergency foster care rate at any time by completing an initial assessment on which a revised difficulty of care supplemental monthly rate would be based.
• A caregiver may request a reassessment in writing for an initial assessment to replace the emergency foster
care rate. This written request would initiate an initial assessment. (See Section 11, subdivision 5)
• If the revised difficulty of care supplemental level based on the initial assessment is higher than level D, then the revised higher rate shall apply retroactively to the beginning of the placement.
• If the revised level is lower, the lower rate shall apply on the date the initial assessment was completed.

d. At-Risk Children in Guardianship and Adoption Assistance cases - Payments (Section 13, subd. 7)
(1) Receives a special at-risk monthly payment of $1 per month basic;
(2) Unless and until the potential disability manifests itself and the agreement is renegotiated to include reimbursement;
 
(3) Such an at-risk child shall receive neither a supplemental difficulty of care monthly rate under subdivision 4 nor home and vehicle modifications under subdivision 10;
• However, the child must be considered for medical assistance under subdivision 2.

3. Daily Rates

a. DHS must establish prorated daily rates to the nearest cent for the monthly rates for (subds. 3-7):
(1) Basic rates;
(2) Supplemental Difficulty of Care Rates
(3) Rates for children under age 6;
(4) Rates for children transitioning into Northstar via DHS declaration;
(5) Emergency Foster Care rates; and
(6) At-Risk children special rates.

b. Daily rates must be routinely used when a partial month is involved for foster care, guardianship assistance, or adoption assistance.

c. A full month payment is permitted if:
(1) A foster child is temporarily absent from the foster home;
(2) The brief absence does not exceed 14 days; and
(3) The child's placement continues with the same caregiver.

4. Rate Schedule Adjustments by DHS

a. Beginning April 1, 2016, and each subsequent April 1, DHS must review and revise the following rates:
(1) Basic rates;
(2) Supplemental Difficulty of Care Rates
(3) Rates for children under age 6;
(4) Rates for children transitioning into Northstar via DHS declaration;
(5) Emergency Foster Care rates; and
(6) At-Risk children special rates.

b. The revisions must be based on USDA Estimates of the Cost of Raising a Child (USDA Publication 1411).

(1) The revision shall be the average percentage by which costs increase for the age ranges represented in the USDA costs;
• Except that no increase can be more than three percent;

c. The monthly rates must be revised to the nearest dollar and the daily rates to the nearest cent.

 
5. Reimbursement for Home and Vehicle Modifications

a. A child eligible for an adoption assistance agreement may have reimbursement of home and vehicle modifications necessary to accommodate the child's special needs upon which eligibility for adoption assistance was based and included as part of the negotiation of the adoption assistance agreement.

(1) The modifications must be:
• Necessary for the specific special needs that established eligibility for adoption assistance; and
• Included in negotiating the completed adoption assistance agreement.

b. At-risk children are only eligible for home and vehicle modification reimbursements if the potential disability manifests itself and the agreement is renegotiated to include reimbursement.

c. Application for and reimbursement of modifications must be completed according to a process specified by DHS.

d. DHS must preapprove the type and cost of each modification.

e. The type of home and vehicle modifications must be limited to those specified by DHS.

f. Reimbursement for home modifications as outlined is limited to once every five years per child.

g. Reimbursement for vehicle modifications is limited to once every five years per family.

6. Child Income/Income Attributable to the Child

a. Consideration of income and resources attributable to the child must be part of the negotiation process for agreements for foster care, guardianship or adoption assistance payments (see Section 12, subd. 2).

b. Guardianship or Adoption Assistance Payments:
(1) Considered income and resources attributable to the child
(2) Cannot be garnished
• Except as permitted by state law where the child resides.

c. Foster Care
(1) Income and resources attributable to the child are determined under existing law. (See Minn. Stat. §§ 252.27, 260C.331, and 260B.331)

d. Supplemental Security Income (SSI) is income attributable to the child.

e. Retirement Survivor's Disability Insurance (RSDI) is income attributable to the child.

f. Veteran's Benefits are income attributable to the child.

g. Railroad Retirement Benefits are income attributable to the child.

h. Black Lung Benefits are income attributable to the child.

i. Child Support:

(1) Foster Care - is redirected to the financially responsible agency.

(2) Northstar Adoption or Guardianship Assistance - is not income attributable to the child and has no impact on payments.

j. Minnesota Family Investment Plan (MFIP)

(1) A child placed and eligible for Northstar payments is excluded from the household assistance unit. (See Minn. Stat. § 256J.24)

k. In some circumstances, the receipt of other income on behalf of the child may impact the amount of the monthly payment received by the relative custodian or adoptive parent on behalf of the child through Northstar Care for Children.

7. Handling of Payments of Income Attributable to the Child

a. SSI Income:

(1) Foster Care:
• The financially responsible agency may apply to be the payee for the child for the duration of the child's placement in foster care.

(2) Adoption or Transfer of Legal and Physical Custody and Receiving Adoption or Guardianship Assistance under Northstar:
• A permanent caregiver may choose to receive payment from both SSI and Northstar simultaneously
• The permanent caregiver is responsible to report the amount of the Northstar payment to the Social Security Administration and the SSI payment will be reduced as required by the Social Security Administration.

b. RSDI, Veteran's Benefits, Railroad Retirement, and Black Lung Benefits:

(1) Foster Care:
• The financially responsible agency may apply to be the payee for the child for the duration of the child's placement in foster care.

(2) Adoption or Transfer of Legal and Physical Custody:
• If it is anticipated that a child will be eligible to receive benefits after finalization of the adoption or assignment of permanent legal and physical custody, the permanent caregiver must apply to be the payee of those benefits on the child's behalf.
• The monthly amount of the other benefits must be considered an offset to the amount of the payment the child is determined eligible for under Northstar Care for Children.

(3) If a child becomes eligible for benefits, after the initial amount of the payment under Northstar Care for Children is finalized, the permanent caregiver must contact DHS to redetermine the payment under Northstar Care for Children;
• The monthly amount of the other benefits must be considered an offset to the amount of the payment the child is determined eligible for under Northstar Care for Children.

(4) If a child ceases to be eligible for RSDI, veteran's benefits, railroad retirement benefits, or black lung benefits after the initial amount of the payment under Northstar Care for Children is finalized, the permanent caregiver must contact DHS to redetermine the payment under Northstar Care for Children.
• The monthly amount of the payment under Northstar Care for Children must be the amount the child was determined to be eligible for prior to consideration of any offset.

(5) If the monthly payment received on behalf of the child under RSDI, veteran's benefits, railroad retirement benefits, or black lung benefits changes after the adoption assistance or guardianship assistance agreement is finalized, the permanent caregiver must notify DHS as to the new monthly payment amount, regardless of the amount of the change in payment.
• If the monthly payment changes by $75 or more, even if the change occurs incrementally over the duration of the term of the adoption assistance or guardianship assistance agreement, the monthly payment under Northstar Care for Children must be adjusted without further consent to reflect the amount of the increase or decrease in the offset amount.
• Any subsequent change to the payment must be reported and handled in the same manner.
• A change of monthly payments of less than $75 is not a permissible reason to renegotiate the adoption
assistance or guardianship assistance agreement. (See Section 12, subd. 3 - renegotiations)
• DHS must review and revise the limit at which the adoption assistance or guardian assistance agreement must be renegotiated in accordance with the provisions for annual rate revisions.

8. Rights and Duties of Providers and Caregivers (including payments):

a. Rights of Caregivers:

(1) Caregivers under Northstar Care must be paid monthly;
• For adoption assistance and guardianship assistance cases, payment must only be made to the parent or relative custodian specified on the agreement.
• If more than one person is listed, both will be listed as the payee. Unless otherwise specified in writing according to DHS policies
• In the event of divorce or separation of the caregivers, a change of payee must be made in writing according to policies outlined by DHS. If both caregivers are in agreement as to the change, it may be made according to a process outlined by DHS. If there is not agreement as to the change, a court order indicating the party who is to receive the payment is needed before a change can be processed. If the change of payee is disputed, DHS may withhold the payment until agreement is reached. A noncustodial caregiver may request notice in writing of review, modification, or termination of the adoption assistance or guardianship assistance agreement.
• In the event of the death of a payee, a change of payee consistent may be made in writing according to policies outlined by DHS. (See Sections 9 and 10 for requirements for Guardianship and Adoption Assistance).
• Caregivers must also be given 15 days written notice from the financially responsible agency upon completion of an assessment or reassessment.

b. Caregiver Responsibilities - Adoption or Guardianship Assistance

(1) Caregivers must keep the agency administering the program informed of changes in status or circumstances which would make the child ineligible for the payments or eligible for payments in a different amount.

(2) For the duration of the agreement, the caregiver agrees to notify the agency administering the program in writing within 30 days of any of the following:
• a change in the child's or caregiver's legal name;
• a change in the family's address;
• a change in the child's legal custody status;
• the child's completion of high school, if this occurs after the child attains age 18;
• the end of the caregiver's legal responsibility to support the child based on termination of parental rights of the caregiver, transfer of guardianship to another person, or transfer of permanent legal and physical custody to another person;
• the end of the caregiver's financial support of the child;
• the death of the child;
• the death of the caregiver; the child enlists in the military;
• the child gets married;
• the child becomes an emancipated minor through legal action;
• the caregiver separates or divorces; and
• the child is residing outside the caregiver's home for a period of more than 30 consecutive days.

(3) Caregivers must be investigated for fraud if:
• The caregiver reports information the caregiver knows is untrue;
• The caregiver fails to notify the commissioner of changes that may affect eligibility; or
• The agency administering the program receives relevant information that the caregiver did not report.

9. Payments under Northstar - impact on other benefit programs

a. Payments received under Section 13 must not be considered as income for child care assistance (see Minnesota Statutes, Chapter 119B) or any other financial benefit.

b. Consistent with Minn. Stat. § 256J.24, a child receiving a maintenance payment under Northstar Care for Children is excluded from any MFIIP assistance unit.

10. Home and Community Based Waivers

a. A child in foster care may qualify for home and community-based waivered services, consistent with Minn. Stat. § 256B.092 for developmental disabilities, or Minn. Stat. § 256B.49 for community alternative care, community alternatives for disabled individuals, or traumatic brain injury waivers.

b. A waiver service must not be substituted for the foster care program.

c. When the child is simultaneously eligible for waivered services and benefits under Northstar Care for Children, the financially responsible agency must assess and provide basic and supplemental difficulty of care rates as determined by the assessment.

d. If it is determined that additional services are needed to meet the child's needs in the home that is not or cannot be met by the foster care program, the need would be referred to the local waivered service program.
(1) In summary, if the child is eligible for both waivered services and Northstar benefits, the agency provides payment rates as needed. If additional services are needed to meet needs that aren't met by the foster care program, those are referred to the local waivered service program.

11. Overpayments

a. DHS has the authority to collect any amount of foster care payment, adoption assistance, or guardianship assistance paid to a caregiver in excess of the payment due.

b. Payments covered include basic maintenance needs payments, supplemental difficulty of care payments, and reimbursement of home and vehicle modifications under subdivision 10;

c. Prior to any collection, DHS shall notify the caregiver in writing, including:

(1) the amount of the overpayment and an explanation of the cause of overpayment;

(2) clarification of the corrected amount;

(3) a statement of the legal authority for the decision;

(4) information about how the caregiver can correct the overpayment;

(5) if repayment is required, when the payment is due and a person to contact to review a repayment plan;

(6) a statement that the caregiver has a right to a fair hearing review by the department; and

(7) the procedure for seeking a fair hearing review by the department.

J. Federal, State and Local Share of Payment/Reimbursement
(Section 15)

1. Federal:

a. The financially responsible agency must use the federal IV-E eligibility criteria (see 42 U.S.C. § 673) to determine a child's eligibility for federal reimbursement - including guardianship assistance and adoption assistance payments. Any reimbursements from federal funds must be made to the agency making payments.

2. State:

a. Pays a percentage of the cost after federal IV-E reimbursement; and

b. Pays an identical percentage share for the Pre-Northstar foster care, adoption assistance and guardianship assistance program costs.

(1) These are the state's proportion of the "nonfederal share" that is split with the local agency (typically the county).

(2) The formula for determining the nonfederal share percentages is set forth in Section 15, Subd. 4(b).

c. Pays the entire non-federal share (pays the state and local share) in cases of federally-required adoption assistance, but there is no financially responsible agency (this is for children assessed with "extraordinary levels" above the existing difficulty of care levels. (See Section 11, subd. 4)

3. Local:

a. Pays the remaining share of cost reimbursement after federal and state payments (i.e. what is left of the "nonfederal share"); and

b. Pays the entire cost of:
(1) Initial clothing allowances;
(2) Payments to child caring agencies (as defined in Minn. Stat. §317A.907) or other agencies providing support services authorized by the local agency.

4. Nonfederal Share - Indian Children

a. For Indian Children
(1) Eligible under Title IV-E (See 42 U.S.C. §673(b));
(2) Being placed in Minnesota; and
(3) Eligible for Adoption Assistance or Guardianship Assistance;

b. The agency or entity assuming responsibility for the child is responsible for the entire non-federal share (what is not reimbursed through Title IV-E reimbursement payments).

K. Northstar Care Program Administration and Appeals
(Section 15)

1. Responsibilities - Administration of Program

a. Financially Responsible Agency:

(1) Determine a child's eligibility for Northstar Care foster care.

(2) Determine a child's eligibility for IV-E foster care funds. (This assumes the agency has authority under the state's IV-E state plan.)

(3) Prepare eligibility determinations for DHS review for a child's eligibility for Northstar Care Guardianship Assistance or Northstar Care Adoption Assistance.

Note: The AFDC relatedness determination, when required for IV-E funding, can only be completed by an agency authorized by DHS.

(4) Administering Northstar Care for children in foster care.

(5) Assisting and consulting with DHS, as designated by DHS, in administering Northstar Care for children receiving guardianship assistance or adoption assistance. This can include conducting assessments, reassessments, and negotiating agreements, or other activities requested by DHS.

b. DHS:

(1) Specify procedures, requirements and deadlines for the administration of all Northstar Care programs and for children who transition from Pre-Northstar Foster Care Program to Northstar Care.

(2) Periodically review:
• General procedures, requirements, and deadlines for program administration, and
• Assessment tools and procedures;
• Review must include consultation with counties, tribes and representatives for caregivers; DHS has authority to make alterations as needed.

(3) Specify required county fiscal and statistical reports. (See Minn. Stat. § 256.01, subd. 2(q))

(4) Promote the Guardianship Assistance and Adoption Assistance programs.

(5) Informing prospective parents of children under the commissioner's guardian ship of available adoption tax credits. (This is likely also a county responsibility.)

(6) Operating programs funded by Title IV-E in accordance with federal statutes, rules and policies.

Note: While the statute doesn't specifically assign this to DHS, in reality, DHS is ultimately responsible for the IV-E state plan approved at the federal level. However, in the broader sense, it is likely a DHS and local agency responsibility.

(7) Reimbursing counties for specified costs and service agreements. (See Minn. Stat. § 259A.75)

2. Appeals and Fair Hearing Process

a. All Caregivers:
(1) Right to DHS appeal (see Minn. Stat. § 256.045) for:
• Denial of Northstar Care eligibility; or
• Modification or terminations of payments or agreements.

b. Relative Custodians and Adoptive Parents:

(1) Right to DHS appeal (see Minn. Stat. § 256.045) upon:
• DHS modification of a guardianship or adoption assistance agreement;
• DHS denies application for guardianship or adoption assistance.

(2) DHS Review - may be requested by relative custodian or adoptive parent before transfer of permanent legal and physical custody or finalization of adoption. (The Appeal process is set forth in Minn. Stat. § 256.045.)

(3) Fair Hearings - Extenuating circumstances

• Generally:
 If a case is in the DHS review or appeal process, there is not a signed guardianship or adoption assistance agreement; and
 A signed agreement must be in effect prior to a court order transferring custody or finalizing an adoption.

• However, if there are "extenuating circumstances" permanency (i.e. transfer of custody or adoption) may be finalized by the court without a signed, effective agreement.

• Caregivers may request a fair hearing in the DHS appeal process to establish extenuating circumstances exist.

• At hearing, the caregiver has the burden to establish that extenuating circumstances exist.

• Examples of extenuating circumstances include:
 Relevant facts regarding the child were known by the placing agency and not presented to the caregivers before transfer of permanent legal and physical custody or finalization of the adoption; or
 Failure by the commissioner or a designee to advise potential caregivers about the availability of guardianship assistance or adoption assistance for children in the state foster care system.

• The effective date of an agreement and any associated federal financial participation are retroactive to the date of the Fair Hearing request if
the appeals judge (fair hearings process) finds both:
 Extenuating circumstances existed; and
 The child met all eligibility criteria at the time that custody was transferred or the adoption finalized.

III. Provisions Applicable to both Pre-Northstar and Northstar Care in 2015
(Sections 21-22 - Effective January 1, 2015)

A. Payments for Foster Care Residential Placements
(Section 21)

For children placed in foster care group residential settings (see Minn. Rules parts 2960.0020 - 2960.0710) foster care maintenance payments must be made to cover the cost of providing the child's:

1. Food;
2. Clothing;
3. Shelter;
4. Daily supervision, which includes:

 
B. Initial Clothing Allowance
(Section 22)

1. An initial clothing allowance must be available to children in:

a. Pre-Northstar Care Programs;
b. Northstar Care Programs; and
c. Foster child group residential setting
(1) Where setting based on the child's individual needs during the first 60 days of the child's initial placement.
d. The agency must consider the parent's ability to provide for a child's clothing needs and the residential facility contracts.

2. Clothing allowance is approved by either:

a. County of financial responsibility (see Minn. Stat. §256G.02); or
b. Tribal agency authorized under section 256.01, subd.14b.

3. Amount must:

a. Be consistent with the child's needs; and
b. Not exceed the Northstar Care monthly basic rate for the child's age group. (See Section 13, subd. 3)

IV. Repealers
Sections 23 -24
Effective January 1, 2015

A. The following statutes and rule provisions are repealed:

1. Minn. Stat. § 256.82, subd. 4 - Existing rulemaking authority regarding foster care payments;

2. Minn. Stat. § 260C.441 - Child Protection Costs and Payments

3. Minnesota Rules, part 9560.0650, subparts 1, 3, and 6;

a. Subpart 1 - Foster Care - Basic Payment schedule;
b. Subpart 3 - Foster Care - Agency Contract Care payments;
c. Subpart 6 - Foster Care - Reassessments;

4. Minnesota Rules, part 9560.0651 - Foster Care - Difficulty of Care Assessments and Payments; and

5. Minnesota Rules, part 9560.0655 - Foster Care - Difficulty of Care Payment Rate.