1.1 	A bill for an act
1.2 	relating to human services; establishing public policies and priorities for child 
1.3 	welfare; establishing Northstar Care for Children; making changes to adoption 
1.4 	assistance;amending Minnesota Statutes 2008, sections 256.991; 256J.21, 
1.5 	subdivision 2; 256J.24, subdivisions 3, 4; 257.85, subdivisions 2, 5, 6; 259.67, by 
1.6 	adding subdivisions; 260B.441; 260C.331, subdivision 1; 260C.441; proposing 
1.7 	coding for new law as Minnesota Statutes, chapters 256N; 256O; repealing 
1.8 	Minnesota Statutes 2008, sections 256.82, subdivision 5; 257.85; 259.67, 
1.9 	subdivisions 1, 2, 3, 3a, 4, 5, 6, 7, 8, 9, 10; Minnesota Rules, parts 9560.0071; 
1.10 	9560.0081; 9560.0082; 9560.0083; 9560.0091; 9560.0093, subparts 1, 3, 4; 
1.11 	9560.0101; 9560.0102; 9560.0665, subparts 2, 3, 4, 5, 6, 7, 8, 9.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	Section 1. Minnesota Statutes 2008, section 256.991, is amended to read:
1.14 	256.991 RULES.
1.15 	The commissioner of human services may promulgate rules as necessary to 
1.16 	implement sections 256.01, subdivision 2; 256.82, subdivision 3;256.966, subdivision 1; 
1.17 	256D.03, subdivisions 3, 4, 6, and 7; and 261.23. The commissioner shall promulgate 
1.18 	rules to establish standards and criteria for deciding which medical assistance services 
1.19 	require prior authorization and for deciding whether a second medical opinion is required 
1.20 	for an elective surgery. The commissioner shall promulgate rules as necessary to establish 
1.21 	the methods and standards for determining inappropriate utilization of medical assistance 
1.22 	services.

1.23 	EFFECTIVE DATE. This section is effective January 1, 2011.

1.24 	Sec. 2. Minnesota Statutes 2008, section 256J.21, subdivision 2, is amended to read:
2.1 		Subd. 2.Income exclusions. The following must be excluded in determining a 
2.2 	family's available income:
2.3 	(1) payments for basic care, difficulty of care, and clothing allowances received for 
2.4 	providing family foster care to children or adults under Minnesota Rules, parts 9555.5050 
2.5 	to 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, and payments received and used 
2.6 	for care and maintenance of a third-party beneficiary who is not a household member;
2.7 	(2) reimbursements for employment training received through the Workforce 
2.8 	Investment Act of 1998, United States Code, title 20, chapter 73, section 9201;
2.9 	(3) reimbursement for out-of-pocket expenses incurred while performing volunteer 
2.10 	services, jury duty, employment, or informal carpooling arrangements directly related to 
2.11 	employment;
2.12 	(4) all educational assistance, except the county agency must count graduate student 
2.13 	teaching assistantships, fellowships, and other similar paid work as earned income and, 
2.14 	after allowing deductions for any unmet and necessary educational expenses, shall 
2.15 	count scholarships or grants awarded to graduate students that do not require teaching 
2.16 	or research as unearned income;
2.17 	(5) loans, regardless of purpose, from public or private lending institutions, 
2.18 	governmental lending institutions, or governmental agencies;
2.19 	(6) loans from private individuals, regardless of purpose, provided an applicant or 
2.20 	participant documents that the lender expects repayment;
2.21 	(7)(i) state income tax refunds; and
2.22 	(ii) federal income tax refunds;
2.23 	(8)(i) federal earned income credits;
2.24 	(ii) Minnesota working family credits;
2.25 	(iii) state homeowners and renters credits under chapter 290A; and
2.26 	(iv) federal or state tax rebates;
2.27 	(9) funds received for reimbursement, replacement, or rebate of personal or real 
2.28 	property when these payments are made by public agencies, awarded by a court, solicited 
2.29 	through public appeal, or made as a grant by a federal agency, state or local government, 
2.30 	or disaster assistance organizations, subsequent to a presidential declaration of disaster;
2.31 	(10) the portion of an insurance settlement that is used to pay medical, funeral, and 
2.32 	burial expenses, or to repair or replace insured property;
2.33 	(11) reimbursements for medical expenses that cannot be paid by medical assistance;
2.34 	(12) payments by a vocational rehabilitation program administered by the state 
2.35 	under chapter 268A, except those payments that are for current living expenses;
3.1 	(13) in-kind income, including any payments directly made by a third party to a 
3.2 	provider of goods and services;
3.3 	(14) assistance payments to correct underpayments, but only for the month in which 
3.4 	the payment is received;
3.5 	(15) payments for short-term emergency needs under section 256J.626, subdivision 
3.6 	2;
3.7 	(16) funeral and cemetery payments as provided by section 256.935;
3.8 	(17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in 
3.9 	a calendar month;
3.10 	(18) any form of energy assistance payment made through Public Law 97-35, 
3.11 	Low-Income Home Energy Assistance Act of 1981, payments made directly to energy 
3.12 	providers by other public and private agencies, and any form of credit or rebate payment 
3.13 	issued by energy providers;
3.14 	(19) Supplemental Security Income (SSI), including retroactive SSI payments and 
3.15 	other income of an SSI recipient, except as described in section 256J.37, subdivision 3b;
3.16 	(20) Minnesota supplemental aid, including retroactive payments;
3.17 	(21) proceeds from the sale of real or personal property;
3.18 	(22) state adoption assistance payments under section 259.67, adoption assistance 
3.19 	payments under chapter 256O, and up to an equal amount of county adoption assistance 
3.20 	payments;
3.21 	(23) state-funded family subsidy program payments made under section 252.32
3.22 	to help families care for children with developmental disabilities, consumer support 
3.23 	grant funds under section 256.476, and resources and services for a disabled household 
3.24 	member under one of the home and community-based waiver services programs under 
3.25 	chapter 256B;
3.26 	(24) interest payments and dividends from property that is not excluded from and 
3.27 	that does not exceed the asset limit;
3.28 	(25) rent rebates;
3.29 	(26) income earned by a minor caregiver, minor child through age 6, or a minor 
3.30 	child who is at least a half-time student in an approved elementary or secondary education 
3.31 	program;
3.32 	(27) income earned by a caregiver under age 20 who is at least a half-time student in 
3.33 	an approved elementary or secondary education program;
3.34 	(28) MFIP child care payments under section 119B.05;
3.35 	(29) all other payments made through MFIP to support a caregiver's pursuit of 
3.36 	greater economic stability;
4.1 	(30) income a participant receives related to shared living expenses;
4.2 	(31) reverse mortgages;
4.3 	(32) benefits provided by the Child Nutrition Act of 1966, United States Code, title 
4.4 	42, chapter 13A, sections 1771 to 1790;
4.5 	(33) benefits provided by the women, infants, and children (WIC) nutrition program, 
4.6 	United States Code, title 42, chapter 13A, section 1786;
4.7 	(34) benefits from the National School Lunch Act, United States Code, title 42, 
4.8 	chapter 13, sections 1751 to 1769e;
4.9 	(35) relocation assistance for displaced persons under the Uniform Relocation 
4.10 	Assistance and Real Property Acquisition Policies Act of 1970, United States Code, title 
4.11 	42, chapter 61, subchapter II, section 4636, or the National Housing Act, United States 
4.12 	Code, title 12, chapter 13, sections 1701 to 1750jj;
4.13 	(36) benefits from the Trade Act of 1974, United States Code, title 19, chapter 
4.14 	12, part 2, sections 2271 to 2322;
4.15 	(37) war reparations payments to Japanese Americans and Aleuts under United 
4.16 	States Code, title 50, sections 1989 to 1989d;
4.17 	(38) payments to veterans or their dependents as a result of legal settlements 
4.18 	regarding Agent Orange or other chemical exposure under Public Law 101-239, section 
4.19 	10405, paragraph (a)(2)(E);
4.20 	(39) income that is otherwise specifically excluded from MFIP consideration in 
4.21 	federal law, state law, or federal regulation;
4.22 	(40) security and utility deposit refunds;
4.23 	(41) American Indian tribal land settlements excluded under Public Laws 98-123, 
4.24 	98-124, and 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech 
4.25 	Lake, and Mille Lacs reservations and payments to members of the White Earth Band, 
4.26 	under United States Code, title 25, chapter 9, section 331, and chapter 16, section 1407;
4.27 	(42) all income of the minor parent's parents and stepparents when determining the 
4.28 	grant for the minor parent in households that include a minor parent living with parents or 
4.29 	stepparents on MFIP with other children;
4.30 	(43) income of the minor parent's parents and stepparents equal to 200 percent of the 
4.31 	federal poverty guideline for a family size not including the minor parent and the minor 
4.32 	parent's child in households that include a minor parent living with parents or stepparents 
4.33 	not on MFIP when determining the grant for the minor parent. The remainder of income is 
4.34 	deemed as specified in section 256J.37, subdivision 1b;
4.35 	(44) payments made to children eligible for relative custodyguardianship assistance 
4.36 	under section 257.85 chapter 256O;
5.1 	(45) vendor payments for goods and services made on behalf of a client unless the 
5.2 	client has the option of receiving the payment in cash; 
5.3 	(46) the principal portion of a contract for deed payment; and
5.4 	(47) cash payments to individuals enrolled for full-time service as a volunteer under 
5.5 	AmeriCorps programs including AmeriCorps VISTA, AmeriCorps State, AmeriCorps 
5.6 	National, and AmeriCorps NCCC.

5.7 	EFFECTIVE DATE. This section is effective January 1, 2011.

5.8 	Sec. 3. Minnesota Statutes 2008, section 256J.24, subdivision 3, is amended to read:
5.9 		Subd. 3.Individuals who must be excluded from an assistance unit. (a) The 
5.10 	following individuals who are part of the assistance unit determined under subdivision 2 
5.11 	are ineligible to receive MFIP:
5.12 	(1) individuals who are recipients of Supplemental Security Income or Minnesota 
5.13 	supplemental aid;
5.14 	(2) individuals disqualified from the food stamp or food support program or MFIP, 
5.15 	until the disqualification ends;
5.16 	(3) children on whose behalf eligible for Northstar Care for Children under chapter 
5.17 	256O when the caregiver receives federal, state or local foster care; guardianship 
5.18 	assistance; or adoption assistance payments are made for them, except as provided in 
5.19 	sections  256J.13, subdivision 2, and  256J.74, subdivision 2; and 
5.20 	(4) children receiving ongoing monthly adoption assistance payments under section 
5.21 	259.67. 
5.22 	(b) The exclusion of a person under this subdivision does not alter the mandatory 
5.23 	assistance unit composition.

5.24 	EFFECTIVE DATE. This section is effective January 1, 2011.

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

6.16 	EFFECTIVE DATE. This section is effective January 1, 2011.

6.17 	Sec. 5. [256N.01] PUBLIC POLICY.
6.18 		Subdivision 1.General. The legislature hereby declares that the public policy 
6.19 	of the state is:
6.20 	(1) first and foremost, children should be safe from harm and protected from abuse 
6.21 	and neglect;
6.22 	(2) children should be maintained safely in their homes whenever possible and 
6.23 	appropriate;
6.24 	(3) when the ability of parents to keep their children safe is compromised it is in 
6.25 	the public interest to intervene early and provide services that promote parents' protective 
6.26 	capacities, mitigate risks of harm, and strengthen and support parents in their caregiving 
6.27 	roles;
6.28 	(4) children should grow up in safe, permanent, and nurturing homes and, when it is 
6.29 	not possible for their parents to provide safety and permanency, alternative permanency 
6.30 	options must be made available to children as quickly as possible;
6.31 	(5) whenever possible, alternative permanency options should be with children's 
6.32 	relatives or kin in order to maintain family relationships and preserve connections with 
6.33 	their communities and culture; and
6.34 	(6) once permanency is achieved, children and their families should receive the 
6.35 	services and supports necessary to maintain safe, stable, and permanent homes.
7.1 		Subd. 2.Racial disparities in child welfare. It is further the policy of the state to 
7.2 	reduce racial disparities and disproportionality that exists in the child welfare system by:
7.3 	(1) identifying and addressing structural factors contributing to inequities in 
7.4 	outcomes;
7.5 	(2) identifying and implementing promising and evidence-based strategies to reduce 
7.6 	racial disparities in treatment and outcomes;
7.7 	(3) using cultural values, beliefs, and practices of families, communities, and tribes 
7.8 	to shape family assessment, case planning, case service design, and case decision-making 
7.9 	processes;
7.10 	(4) using placement and reunification strategies that maintain, honor, and support 
7.11 	relationships and connections between parents, siblings, children, kin, and significant 
7.12 	others, giving priority to kinship placements when placement is necessary; and
7.13 	(5) supporting families in the context of their communities and tribes so as to safely 
7.14 	divert them away from the child welfare system, whenever possible.

7.15 	Sec. 6. [256N.02] PUBLIC PRIORITIES.
7.16 	A broad continuum of services and a reform of practice are necessary across 
7.17 	Minnesota to keep children safe from abuse and neglect, prevent the trauma associated 
7.18 	with removing a child from their family home, and provide families with the necessary 
7.19 	supports and services to protect and nurture their children. Successful implementation 
7.20 	of state policy must result in improved outcomes for children and families and must be 
7.21 	measured by:
7.22 	(1) improved timeliness to initial investigations;
7.23 	(2) increased monthly caseworker visits with children in out-of-home placement;
7.24 	(3) reduced out-of-home placements;
7.25 	(4) reduced re-entry;
7.26 	(5) reduced recidivism;
7.27 	(6) reduced number of children aging out of foster care without achieving 
7.28 	permanency;
7.29 	(7) improved rate of relative care;
7.30 	(8) improved stability in foster care; and
7.31 	(9) reduced racial and ethnic disparities and disproportionality.

7.32 	Sec. 7. [256O.001] CITATION.
7.33 	Sections 256O.001 to 256O.270 may be cited as the "Northstar Care for Children 
7.34 	Act." Sections 256O.001 to 256O.270 establish Northstar Care for Children, which 
8.1 	authorizes certain benefits to support children in need who are served by the Minnesota 
8.2 	child welfare system and who are the responsibility of the state of Minnesota, local county 
8.3 	social service agencies, or tribal social service agencies under section 256.01, subdivision 
8.4 	14b. A child eligible for the benefit has experienced a child welfare intervention that 
8.5 	has resulted in the child being placed away from the child's parents' care and is in the 
8.6 	permanent care of relatives through a transfer of permanent legal and physical custody, or 
8.7 	in the permanent care of adoptive parents.

8.8 	Sec. 8. [256O.01] PUBLIC POLICY.
8.9 	(a) The legislature hereby declares that the public policy of this state is to keep 
8.10 	children safe from harm and to ensure that when children suffer harmful or injurious 
8.11 	experiences in their lives, appropriate services are immediately available to keep them safe.
8.12 	(b) Children do best in permanent, safe, nurturing homes with long-term 
8.13 	relationships with adults. Whenever safely possible, children are best served when they 
8.14 	can be nurtured and raised by their parents. Where services cannot be provided to allow a 
8.15 	child to remain safely at home, an out-of-home placement may be required. When this 
8.16 	occurs, reunification should be sought if it can be accomplished safely. When it is not 
8.17 	possible for parents to provide safety and permanency for their children, an alternative 
8.18 	permanent home must quickly be made available to the child, drawing from kinship 
8.19 	sources whenever possible.
8.20 	(c) Minnesota understands the importance of having a comprehensive approach to 
8.21 	temporary out-of-home care and to permanent homes for children who cannot be reunited 
8.22 	with their families. It is critical that stable benefits be available to caregivers to ensure 
8.23 	that the child's needs can be met whether the child's situation and best interests call for 
8.24 	transfer of permanent legal and physical custody to a relative or adoption. Northstar 
8.25 	Care for Children focuses on the child's needs and strengths, and the actual level of care 
8.26 	provided by the caregiver, without consideration for the type of placement setting. In this 
8.27 	way, caregivers are not faced with the burden of making specific long-term decisions 
8.28 	based upon competing financial incentives.

8.29 	Sec. 9. [256O.02] DEFINITIONS.
8.30 		Subdivision 1.Scope. For the purposes of sections 256O.001 to 256O.270, the 
8.31 	terms defined in this section have the meanings given them.
8.32 		Subd. 2.Adoption assistance. "Adoption assistance" means financial support, 
8.33 	medical coverage, or both, provided under agreement with the legally responsible agency 
8.34 	and the commissioner to the parents of an adoptive child whose special needs would 
9.1 	otherwise make it difficult to place the child for adoption, to assist with the cost of caring 
9.2 	for the child.
9.3 		Subd. 3.Assessment. "Assessment" means the process under section 256O.240 by 
9.4 	which is determined the benefits an eligible child may receive under section 256O.250.
9.5 		Subd. 4.At-risk child. "At-risk child" means a child who does not have a 
9.6 	documented disability but who is at risk of developing a physical, mental, emotional, or 
9.7 	behavioral disability based on being related within the first or second degree to persons 
9.8 	who have an inheritable physical, mental, emotional, or behavioral disabling condition, 
9.9 	or from a background which has the potential to cause the child to develop a physical, 
9.10 	mental, emotional, or behavioral disability. The disability that the child is at risk of 
9.11 	developing must be likely to manifest during childhood. A high-risk child under section 
9.12 	259.67 is considered an at-risk child.
9.13 		Subd. 5.Basic rate. "Basic rate" means the maintenance payment made on behalf 
9.14 	of a child to support the costs caregivers incur to meet a child's needs consistent with the 
9.15 	care parents customarily provide, including: food, clothing, shelter, daily supervision, 
9.16 	school supplies, child's personal incidentals, reasonable travel to the child's home for 
9.17 	visitation, and transportation needs associated with providing the listed items.
9.18 		Subd. 6.Caregiver. "Caregiver" means the tribe, relative custodian, or the adoptive 
9.19 	parent who has legally adopted a child.
9.20 		Subd. 7.Child-placing agency. "Child-placing agency" means an agency licensed 
9.21 	under section 245A.03, subdivision 1, clauses (2) and (3).
9.22 		Subd. 8.Commissioner. "Commissioner" means the commissioner of human 
9.23 	services.
9.24 		Subd. 9.County board. "County board" means the board of county commissioners 
9.25 	in each county.
9.26 		Subd. 10.Disability. "Disability" means a professionally documented physical, 
9.27 	mental, emotional, or behavioral impairment that substantially limits one or more major 
9.28 	life activity. Major life activities include, but are not limited to: thinking, walking, 
9.29 	hearing, breathing, working, seeing, speaking, communicating, learning, developing and 
9.30 	maintaining healthy relationships, safely caring for oneself, and performing manual tasks. 
9.31 	The nature, duration, and severity of the impairment must be used in determining if the 
9.32 	limitation is substantial.
9.33 		Subd. 11.Foster care. "Foster care" means foster care as described either in section 
9.34 	260B.007, subdivision 7, or 260C.007, subdivision 18.
9.35 		Subd. 12.Guardianship assistance. "Guardianship assistance" means financial 
9.36 	support, medical coverage, or both, provided under agreement with the legally responsible 
10.1 	agency and the commissioner to a relative who has received permanent legal and physical 
10.2 	custody of a child, to assist with the cost of caring for the child.
10.3 		Subd. 13.Human services board. "Human services board" means a board 
10.4 	established under section 402.02; Laws 1974, chapter 293; or Laws 1976, chapter 340.
10.5 		Subd. 14.Legally responsible agency. "Legally responsible agency" means the 
10.6 	Minnesota agency that is assigned responsibility for placement, care, and supervision 
10.7 	of the child through a court order, voluntary placement agreement, or voluntary 
10.8 	relinquishment. These agencies include both local social service agencies under section 
10.9 	393.07 and tribal social service agencies authorized in section 256.01, subdivision 14b, 
10.10 	and Minnesota tribes when legal responsibility is transferred to the tribal social service 
10.11 	agency through a Minnesota district court order.
10.12 		Subd. 15.Maintenance payments. "Maintenance payments" means the basic 
10.13 	rate plus any supplemental difficulty of care rate under Northstar Care for Children. It 
10.14 	specifically does not include the cost of initial clothing allowance, payment for social 
10.15 	services, or administrative payments to a child-placing agency.
10.16 		Subd. 16.Permanent legal and physical custody. "Permanent legal and 
10.17 	physical custody" means permanent legal and physical custody ordered by a Minnesota 
10.18 	juvenile court under section 260C.201, subdivision 11, or for children under tribal 
10.19 	court jurisdiction, similar provision under tribal code which means that the individual 
10.20 	responsible for the child has responsibility for the protection, education, care, and control 
10.21 	of the child and decision making on behalf of the child.
10.22 		Subd. 17.Reassessment. "Reassessment" means an update of the previous 
10.23 	assessment through the process under section 256O.240 for a child who has been 
10.24 	continuously eligible for this benefit.
10.25 		Subd. 18.Relative. "Relative" as described in section 260C.007, subdivision 27, 
10.26 	means a person related to the child by blood, marriage, or adoption, or an individual who 
10.27 	is an important friend with whom the child has resided or had significant contact. For an 
10.28 	Indian child, relative includes members of the extended family as defined by the law or 
10.29 	custom of the Indian child's tribe or, in the absence of law or custom, nieces, nephews, 
10.30 	or first or second cousins, as provided in the Indian Child Welfare Act of 1978, United 
10.31 	States Code, title 25, section 1903.
10.32 		Subd. 19.Relative custodian. "Relative custodian" means a person to whom 
10.33 	permanent legal and physical custody of a child has been transferred under section 
10.34 	260C.201, subdivision 11, or for children under tribal court jurisdiction, a similar 
10.35 	provision under tribal code which means that the individual responsible for the child has 
11.1 	responsibility for the protection, education, care, and control of the child and decision 
11.2 	making on behalf of the child.
11.3 		Subd. 20.Supplemental difficulty of care rate. "Supplemental difficulty of care 
11.4 	rate" means the supplemental rating, if any, as determined by the legally responsible 
11.5 	agency or the state, based upon an assessment under section 256O.240. The supplemental 
11.6 	rate supports activities consistent with the care a parent would provide a child with special 
11.7 	needs and not the equivalent of a purchased service. The rate considers the capacity 
11.8 	and intensity of the activities associated with parenting duties provided in the home to 
11.9 	nurture the child, preserve the child's connections, and support the child's functioning in 
11.10 	the home and community.

11.11 	Sec. 10. [256O.200] NORTHSTAR CARE FOR CHILDREN.
11.12 		Subdivision 1.Eligibility. A child is eligible for Northstar Care for Children if 
11.13 	the child is eligible for:
11.14 	(1) guardianship assistance under section 256O.220; or
11.15 	(2) adoption assistance under section 256O.230.
11.16 		Subd. 2.Assessments and agreements. A child eligible for Northstar Care for 
11.17 	Children shall receive an assessment under section 256O.240. For a child eligible for 
11.18 	guardianship assistance or adoption assistance, negotiations with caregivers and the 
11.19 	development of a written, binding agreement must be conducted under section 256O.240.
11.20 		Subd. 3.Benefits and payments. A child eligible for Northstar Care for Children 
11.21 	is entitled to benefits specified in section 256O.250, based primarily on assessments, 
11.22 	negotiations, and agreements under section 256O.240. Although paid to the caregiver, 
11.23 	these benefits are considered benefits of the child rather than of the caregiver.
11.24 		Subd. 4.Shared cost of care. The cost of Northstar Care for Children must be 
11.25 	shared among the federal government, state, counties of financial responsibility, and 
11.26 	certain tribes as specified in section 256O.260.
11.27 		Subd. 5.Administration and appeals. The commissioner and legally responsible 
11.28 	agency shall administer Northstar Care for Children according to section 256O.270. The 
11.29 	notification and fair hearing process is defined in section 256O.270.
11.30 		Subd. 6.Transition. Provisions for the transition to Northstar Care for Children are 
11.31 	specified in sections 256O.240, subdivision 13, and 256O.270, subdivisions 2 and 7 to 10. 
11.32 	Additional provisions for children in relative custody assistance under section 257.85 are 
11.33 	specified in section 256O.220, subdivision 8; and for children in adoption assistance under 
11.34 	section 259.67 are specified in section 256O.230, subdivision 14.

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

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

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

31.4 	Sec. 14. [256O.250] BENEFITS AND PAYMENTS.
31.5 		Subdivision 1.Benefits. There are three potential benefits available under Northstar 
31.6 	Care for Children: medical assistance, basic payment, and supplemental difficulty of care 
31.7 	payment. An eligible child receives medical assistance under subdivision 2. An eligible 
31.8 	child receives the basic payment under subdivision 3, except for those assigned level A 
31.9 	because they are determined to be at-risk children in guardianship assistance or adoption 
31.10 	assistance. An eligible child may receive an additional supplemental difficulty of care 
31.11 	payment under subdivision 4, as determined by the assessment under section 256O.240.
31.12 		Subd. 2.Medical assistance. Eligibility for medical assistance under this chapter 
31.13 	continues to be determined according to section 256B.055.
31.14 		Subd. 3.Basic monthly rate. For the period January 1, 2011, to June 30, 2012, the 
31.15 	basic monthly rate is according to the following schedule:

31.16		Ages 0-5
	$500 per month
	
31.17		Ages 6-12
	$600 per month
	
31.18		Ages 13 and older
	$713 per month.
	
31.19 		Subd. 4.Difficulty of care supplemental monthly rate. For the period January 1, 
31.20 	2011, to June 30, 2012, the difficulty of care supplemental monthly rate is according to 
31.21 	the following schedule:

31.22		level B
	none
	
31.23		level C
	$55 per month
	
31.24		level D
	$110 per month
	
31.25		level E
	$165 per month
	
31.26		level F
	$220 per month
	
31.27		level G
	$275 per month
	
31.28		level H
	$330 per month
	
31.29		level I
	$385 per month
	
31.30		level J
	$440 per month
	
31.31		level K
	$495 per month
	
31.32		level L
	$550 per month.
	
31.33 	A child assigned level B is still eligible for basic monthly rate under subdivision 3.
31.34 		Subd. 5.Daily rates. The commissioner shall establish prorated daily rates to the 
31.35 	nearest cent for the monthly rates under subdivisions 3 and 4. Daily rates must be routinely 
31.36 	used when a partial month is involved for guardianship assistance and adoption assistance.
32.1 		Subd. 6.Revision. By April 1, 2013, for fiscal year 2013, and by each subsequent 
32.2 	April 1 for each subsequent fiscal year, the commissioner shall review and revise the 
32.3 	rates under subdivisions 3, 4, and 5 based on United States Department of Agriculture 
32.4 	Estimates of the Cost of Raising a Child, published by the United States Department of 
32.5 	Agriculture, Agricultural Resources Service, Publication 1411. The revision must be the 
32.6 	average percentage by which costs increase for the age ranges represented in the United 
32.7 	States Department of Agriculture Estimates of the Cost of Raising a Child. The monthly 
32.8 	rates must be revised to the nearest dollar and the daily rates to the nearest cent.
32.9 		Subd. 7.Home and vehicle modifications. A child who is eligible for an adoption 
32.10 	assistance agreement based on the child's physical disability or a child who is eligible 
32.11 	for a guardianship assistance agreement who possesses a physical disability must have 
32.12 	reimbursement of home and vehicle modifications necessary to accommodate the child's 
32.13 	physical disability included as part of the negotiation of the agreement under section 
32.14 	256O.240, subdivision 11. The total of all modifications must not exceed $25,000 and the 
32.15 	modifications must be requested during the first six months that the adoption assistance or 
32.16 	guardianship assistance agreement is in effect. The type and cost of each modification 
32.17 	must be preapproved by the commissioner. The type of home and vehicle modifications is 
32.18 	limited to those specified by the commissioner. The commissioner shall ensure that the 
32.19 	modifications are necessary to incorporate the child into the family and that the cost 
32.20 	is reasonable. Application for and reimbursement of modifications must be completed 
32.21 	according to a process specified by the commissioner.
32.22 		Subd. 8.Child income or income attributable to the child. (a) A monthly 
32.23 	adoption assistance or guardianship assistance payment must be considered income and 
32.24 	resource attributable to the child and must be inalienable by any assignment or transfer 
32.25 	and exempt from garnishment under the laws of the state.
32.26 	(b) Consideration of income and resources attributable to the child must be part of 
32.27 	the negotiation process in section 256O.240, subdivision 11. In some circumstances, the 
32.28 	receipt of other income on behalf of the child may impact the amount of the monthly 
32.29 	payment received by the adoptive parent or relative custodian on behalf of the child 
32.30 	through Northstar Care for Children. Supplemental Security Income (SSI), Retirement, 
32.31 	Survivors, and Disability Insurance (RSDI), veteran's benefits, railroad retirement benefits, 
32.32 	and black lung benefits are considered income and resources attributable to the child.
32.33 		Subd. 9.Treatment of RSDI, veteran's benefits, railroad retirement benefits, 
32.34 	and black lung benefits. (a) If it is anticipated that a child will be eligible to receive 
32.35 	RSDI, veteran's benefits, railroad retirement benefits, or black lung benefits after 
32.36 	finalization of the adoption or assignment of permanent legal and physical custody, the 
33.1 	permanent caregiver shall apply to be the payee of those benefits on the child's behalf. The 
33.2 	monthly amount of the other benefits must be considered an offset to the amount of the 
33.3 	payment the child is determined eligible for under Northstar Care for Children.
33.4 	(b) If a child becomes eligible for RSDI, veteran's benefits, railroad retirement 
33.5 	benefits, or black lung benefits after the initial amount of the payment under Northstar 
33.6 	Care for Children is finalized, the permanent caregiver shall contact the commissioner 
33.7 	to renegotiate the payment under Northstar Care for Children. The monthly amount of 
33.8 	the other benefits must be considered an offset to the amount of the payment the child is 
33.9 	determined eligible for under Northstar Care for Children.
33.10 	(c) If a child ceases to be eligible for RSDI, veteran's benefits, railroad retirement 
33.11 	benefits, or black lung benefits after the initial amount of the payment under Northstar 
33.12 	Care for Children is finalized, the permanent caregiver shall contact the commissioner to 
33.13 	renegotiate the payment under Northstar Care for Children. The monthly amount of the 
33.14 	payment under Northstar Care for Children must be the amount the child was determined 
33.15 	to be eligible for prior to consideration of any offset.
33.16 	(d) If the monthly payment received on behalf of the child under RSDI, veteran's 
33.17 	benefits, railroad retirement benefits, or black lung benefits changes after the adoption 
33.18 	assistance or guardianship assistance agreement is finalized, the permanent caregiver shall 
33.19 	notify the commissioner as to the new monthly payment amount, regardless of the amount 
33.20 	of the change in payment. If the monthly payment changes by $75 or more, even if the 
33.21 	change occurs incrementally over the duration of the term of the adoption assistance 
33.22 	or guardianship assistance agreement, the monthly payment under Northstar Care for 
33.23 	Children must be renegotiated to reflect the amount of the increase or decrease in the 
33.24 	offset amount. Any subsequent change to the payment must be reported and handled in 
33.25 	the same manner. A change of monthly payments of less than $75 is not a permissible 
33.26 	reason to renegotiate the adoption assistance or guardianship assistance agreement under 
33.27 	section 256O.240, subdivision 12.
33.28 		Subd. 10.Treatment of child support and MFIP. (a) In cases where the child 
33.29 	qualifies for Northstar Care for Children by meeting the adoption assistance eligibility 
33.30 	criteria or the guardianship assistance eligibility criteria, any court-ordered child support 
33.31 	must not be considered income attributable to the child and must have no impact on the 
33.32 	monthly payment.
33.33 	(b) Consistent with section 256J.24, children eligible for and receiving a payment 
33.34 	from Northstar Care for Children are excluded from a MFIP assistance unit.
33.35 		Subd. 11.Payments. (a) Payments to caregivers under Northstar Care for Children 
33.36 	must be made monthly.
34.1 	(b) The commissioner shall pay caregivers for eligible children in guardianship 
34.2 	assistance and adoption assistance. Payments must commence when the commissioner 
34.3 	receives the required documentation from the court, the legally responsible agency, or the 
34.4 	caregiver. In guardianship assistance or adoption assistance cases, monthly payments must 
34.5 	be prorated according to subdivision 5 based on the effective date of the agreement.
34.6 		Subd. 12.Effect of benefit on other aid. Payments received under this section shall 
34.7 	not be considered as income for child care assistance under chapter 119B or any other 
34.8 	financial benefit. Consistent with section 256J.24, all children receiving a maintenance 
34.9 	payment under Northstar Care for Children are excluded from any MFIP assistance unit.
34.10 		Subd. 13.Overpayments. The commissioner has the authority to collect any 
34.11 	amount of adoption assistance and guardianship assistance paid to a caregiver in excess of 
34.12 	the payment due. Payments covered by this subdivision include basic maintenance needs 
34.13 	payments, supplemental difficulty of care payments, and reimbursement of home and 
34.14 	vehicle modifications under subdivision 7. Prior to any collection, the commissioner or 
34.15 	the commissioner's designee shall notify the caregiver in writing, including:
34.16 	(1) the amount of the overpayment and an explanation of the cause of overpayment;
34.17 	(2) clarification of the corrected amount;
34.18 	(3) a statement of the legal authority for the decision;
34.19 	(4) information about how the caregiver can correct the overpayment;
34.20 	(5) if repayment is required, when the payment is due and a person to contact to 
34.21 	review a repayment plan;
34.22 	(6) a statement that the caregiver is entitled to a fair hearing review by the 
34.23 	department; and
34.24 	(7) the procedure for seeking the review in clause (6).
34.25 		Subd. 14.Payee. For adoption assistance and guardianship assistance cases, 
34.26 	the payment may only be made to the adoptive parent or relative custodian specified 
34.27 	on the agreement. If there is more than one adoptive parent or relative custodian, both 
34.28 	parties must be listed as the payee unless otherwise specified in writing according to 
34.29 	policies outlined by the commissioner. In the event of divorce or separation of the 
34.30 	caregivers, a change of payee may be made in writing according to policies outlined by 
34.31 	the commissioner. If both caregivers are in agreement as to the change, it may be made 
34.32 	according to a process outlined by the commissioner. If there is not agreement as to the 
34.33 	change, a court order indicating the party who is to receive the payment is needed before a 
34.34 	change can be processed. If the change of payee is disputed, the commissioner may 
34.35 	withhold the payment until agreement is reached. A noncustodial caregiver may request 
34.36 	notice in writing of review, modification, or termination of the adoption assistance or 
35.1 	guardianship assistance agreement. In the event of the death of a payee, a change of payee 
35.2 	consistent with sections 256O.220 and 256O.230 may be made in writing according 
35.3 	to policies outlined by the commissioner.
35.4 		Subd. 15.Notification of change. (a) Parents or relative custodians who have an 
35.5 	adoption assistance agreement or guardianship assistance agreement in place shall keep 
35.6 	the agency administering the program informed of the parent's or custodian's address and 
35.7 	circumstances which would make them ineligible for the payments or eligible for the 
35.8 	payments in a different amount.
35.9 	(b) For the duration of the agreement, the adoptive parent or relative custodian 
35.10 	agrees to notify the agency administering the program in writing within 30 days of the 
35.11 	following changes:
35.12 	(1) change in the family's address;
35.13 	(2) change in the legal custody status of the child;
35.14 	(3) child's completion of high school, if this occurs after the child attains age 18;
35.15 	(4) date of termination of the parental rights of the adoptive parent, transfer of 
35.16 	permanent legal and physical custody to another person, or other determination that the 
35.17 	adoptive parent or relative custodian is no longer legally responsible for support of the 
35.18 	child;
35.19 	(5) date the adoptive parent or relative custodian is no longer providing support to 
35.20 	the child;
35.21 	(6) date of death of the child;
35.22 	(7) date of death of the adoptive parent or relative custodian;
35.23 	(8) date the child enlists in the military;
35.24 	(9) date of marriage of the child;
35.25 	(10) date the child becomes an emancipated minor through legal action of another 
35.26 	state;
35.27 	(11) separation or divorce of the adoptive parent or relative custodian;
35.28 	(12) change of the caregiver's employment or educational enrollment status, if the 
35.29 	child has not attained age 13 and the child care component of the assessment under section 
35.30 	256O.240, subdivision 2, was used to determine the assessment level; and
35.31 	(13) residence of the child outside the home for a period of more than 30 consecutive 
35.32 	days.
35.33 		Subd. 16.Termination notice for caregiver. The responsible agency must provide 
35.34 	a child's caregiver written notice of termination of payment. Termination notices must be 
35.35 	sent at least 15 days before the final payment or in the case of an unplanned termination, 
36.1 	the notice is sent within three days of the end of the payment. The written notice must 
36.2 	minimally include the following:
36.3 	(1) the date payment will end;
36.4 	(2) the reason payments will end and the event that is the basis to terminate payment;
36.5 	(3) a statement that the provider is entitled to a fair hearing review by the department 
36.6 	consistent with section 256.045, subdivision 3;
36.7 	(4) the procedure to request a fair hearing; and
36.8 	(5) name, telephone number, and, if available, an electronic contact address of a 
36.9 	contact person at the county or state.

36.10 	Sec. 15. [256O.260] FEDERAL SHARE, STATE SHARE, LOCAL SHARE.
36.11 		Subdivision 1.Federal share. For a child who qualifies for guardianship assistance 
36.12 	or adoption assistance, the county of financial responsibility or, for children in the 
36.13 	American Indian Child Welfare Initiative, the responsible tribal social service agency 
36.14 	authorized in section 256.01, subdivision 14b, shall use the eligibility requirements 
36.15 	outlined in section 473 of the Social Security Act. In each case, the agency paying the 
36.16 	maintenance payments must be reimbursed for the costs from the federal money available 
36.17 	for this purpose.
36.18 		Subd. 2.State share. The commissioner shall pay the state share of the maintenance 
36.19 	payments as determined under subdivision 4, and an identical share of the pre-Northstar 
36.20 	Care adoption assistance program under section 259.67. The commissioner may transfer 
36.21 	funds into the account if a deficit occurs.
36.22 		Subd. 3.Local share. The county of financial responsibility under section 256G.02 
36.23 	or tribal social service agency authorized in section 256.01, subdivision 14b, at the time 
36.24 	of finalization of the agreement for guardianship assistance or adoption assistance, shall 
36.25 	pay the local share of the maintenance payments as determined under subdivision 4, and 
36.26 	an identical share of the pre-Northstar Care adoption assistance program under section 
36.27 	259.67. The county of financial responsibility under section 256G.02 or tribal social 
36.28 	service agency authorized in section 256.01, subdivision 14b, shall pay the entire cost of 
36.29 	any initial clothing allowance, child-placing agency administrative payments, or other 
36.30 	support services it authorizes, except as provided under other provisions of law. In cases of 
36.31 	federally required adoption assistance where there is no county of financial responsibility, 
36.32 	or, for children in the American Indian Child Welfare Initiative, the responsible tribal 
36.33 	social service agency authorized in section 256.01, subdivision 14b, as provided in section 
36.34 	256O.240, subdivision 5, the commissioner shall pay the local share.
37.1 		Subd. 4.Nonfederal share. The commissioner shall establish a percentage share 
37.2 	of the maintenance payments, reduced by federal reimbursements under title IV-E of the 
37.3 	Social Security Act, to be paid by the state and to be paid by the county of financial 
37.4 	responsibility under section 256G.02 or tribal social service agency authorized in section 
37.5 	256.01, subdivision 14b. These state and local shares shall initially be calculated based 
37.6 	on the ratio of the average appropriate expenditures made by the state and all counties 
37.7 	and tribal social service agencies authorized in section 256.01, subdivision 14b, during 
37.8 	state fiscal years 2008, 2009, and 2010.For purposes of this calculation, appropriate 
37.9 	expenditures for the state must include adoption assistance and relative custody assistance, 
37.10 	reduced by federal reimbursements. For each of the periods January 1, 2011, to June 
37.11 	30, 2012, and fiscal years 2013 and 2014, the commissioner shall adjust this initial 
37.12 	percentage of state and local shares to reflect the relative expenditure trends during state 
37.13 	fiscal years 2008, 2009, and 2010. The fiscal year 2014 set of percentages must be used 
37.14 	for all subsequent years.
37.15 		Subd. 5.Adjustments for proportionate shares among legally responsible 
37.16 	agencies. For children who transition into Northstar Care for Children under section 
37.17 	256O.270, subdivision 7, and for children on the pre-Northstar Care adoption assistance 
37.18 	program under section 259.67, the commissioner shall adjust the expenditures by each 
37.19 	county or tribal social service agency so that its relative share is proportional to its foster 
37.20 	care expenditures as determined under subdivision 4 for state fiscal years 2008, 2009, and 
37.21 	2010 compared with similar costs of all county or tribal social service agencies.

37.22 	Sec. 16. [256O.270] ADMINISTRATION.
37.23 		Subdivision 1.Responsibilities. (a) Subject to commissioner approval, the legally 
37.24 	responsible agency shall determine the eligibility for Northstar Care for Children for 
37.25 	children in guardianship assistance under section 256O.220 and children in adoption 
37.26 	assistance under section 256O.230, and for those children determined eligible, shall 
37.27 	further determine each child's eligibility for title IV-E of the Social Security Act.
37.28 	(b) The legally responsible agency is responsible for the administration of Northstar 
37.29 	Care for Children and for assisting the commissioner with the administration of Northstar 
37.30 	Care for Children for children in guardianship assistance and adoption assistance by 
37.31 	conducting assessments, reassessments, negotiations, and other activities as specified 
37.32 	by the commissioner under subdivision 2.
37.33 		Subd. 2.Procedures, requirements, and deadlines. The commissioner shall 
37.34 	specify procedures, requirements, and deadlines for the administration of Northstar Care 
37.35 	for Children according to sections 256O.001 to 256O.270, including for transitioning 
38.1 	children into Northstar Care for Children under subdivision 7. The commissioner shall 
38.2 	periodically review all such procedures, requirements, and deadlines, including the 
38.3 	assessment tool and process under section 256O.240, in consultation with counties, tribes, 
38.4 	and representatives of caregivers and may alter them as needed.
38.5 		Subd. 3.Administration of title IV-E programs. The title IV-E guardianship 
38.6 	assistance and adoption assistance programs shall operate within the statutes and rules 
38.7 	set forth by the federal government in the Social Security Act and Code of Federal 
38.8 	Regulations.
38.9 		Subd. 4.Reporting. The commissioner shall specify required fiscal and statistical 
38.10 	reports under section 256.01, subdivision 2, paragraph (q), and other reports as necessary.
38.11 		Subd. 5.Promotion of programs. The commissioner or the commissioner's 
38.12 	designee shall actively seek ways to promote the guardianship assistance and adoption 
38.13 	assistance programs, including informing prospective relative custodians of eligible 
38.14 	children of the availability of guardianship assistance and prospective adoptive parents of 
38.15 	eligible children under the commissioner's guardianship of the availability of adoption 
38.16 	assistance. All families who adopt children under the commissioner's guardianship must 
38.17 	be informed as to the adoption tax credit.
38.18 		Subd. 6.Appeals and fair hearings. (a) A caregiver has the right to appeal to the 
38.19 	commissioner pursuant to section 256.045 when eligibility for Northstar Care for Children 
38.20 	is denied, and when payment or the agreement for eligible child is modified or terminated.
38.21 	(b) A relative custodian or adoptive parent has additional rights to appeal to 
38.22 	the commissioner under section 256.045. The rights include when the commissioner 
38.23 	terminates or modifies the guardianship assistance or adoption assistance agreement or 
38.24 	when the commissioner denies an application for guardianship assistance or adoption 
38.25 	assistance. A prospective relative custodian or adoptive parent who disagrees with a 
38.26 	decision by the commissioner prior to transfer of permanent legal and physical custody or 
38.27 	finalization of the adoption may request review of the decision by the commissioner or 
38.28 	may appeal the decision under section 256.045. A guardianship assistance or adoption 
38.29 	assistance agreement must be signed and in effect prior to the court order that transfers 
38.30 	permanent legal and physical custody or the adoption finalization, however in some cases, 
38.31 	there may be extenuating circumstances as to why an agreement was not entered into prior 
38.32 	to the finalization of permanency for the child. Caregivers who believe that extenuating 
38.33 	circumstances exist in the case of the caregiver's child may request a fair hearing. 
38.34 	Caregivers have the responsibility of proving that extenuating circumstances exist. 
38.35 	Caregivers are required to provide written documentation of each eligibility criterion at 
38.36 	the fair hearing. Examples of extenuating circumstances include: relevant facts regarding 
39.1 	the child were known by the placing agency and not presented to the caregiver prior to 
39.2 	transfer of permanent legal and physical custody or finalization of the adoption, failure by 
39.3 	the commissioner or the commissioner's designee to advise potential caregivers about the 
39.4 	availability of guardianship assistance or adoption assistance for children in the state foster 
39.5 	care system. If an appeals judge finds through the fair hearing process that extenuating 
39.6 	circumstances existed and that the child met all eligibility criteria at the time the transfer 
39.7 	of permanent legal and physical custody was ordered or the adoption was finalized, the 
39.8 	effective date and any associated federal financial participation must be retroactive to 
39.9 	the date of the request for a fair hearing.
39.10 		Subd. 7.Transition; timelines; assessments. (a) All eligible children shall 
39.11 	participate in an initial assessment under section 256O.240, subdivision 3.
39.12 	(b) All children in relative custody assistance or adoption assistance are eligible for 
39.13 	Northstar Care for Children as specified in sections 256O.220 and 256O.230. All children 
39.14 	receiving relative custody assistance under section 257.85 on December 31, 2010, must be 
39.15 	transitioned into Northstar Care for Children as of January 1, 2011. Children in adoption 
39.16 	assistance under section 259.67 on December 31, 2010, whose caregivers sign no later 
39.17 	than November 24, 2010, an agreement to transition to Northstar Care for Children as 
39.18 	provided under sections 256O.230 and 256O.240 must be added to Northstar Care for 
39.19 	Children as of January 1, 2011. A child receiving adoption assistance under section 
39.20 	259.67 whose caregivers sign an agreement to transition to Northstar Care for Children as 
39.21 	provided under sections 256O.230 and 256O.240 between December 1, 2010, and March 
39.22 	31, 2011, must be added to Northstar Care for Children for the first calendar month at 
39.23 	least 31 calendar days after the date of the signing of the agreement. A child receiving 
39.24 	adoption assistance under section 259.67 whose caregivers do not sign an agreement 
39.25 	to transition to Northstar Care for Children by March 31, 2011, must remain on the 
39.26 	pre-Northstar Care adoption assistance program under section 259.67 until the child is no 
39.27 	longer eligible for the program.
39.28 		Subd. 8.Transition; distribution of program information. Between May 1, 
39.29 	2010, and June 30, 2010, all relative custodians with executed or signed relative custody 
39.30 	assistance agreements, adoptive parents with executed or signed adoption assistance 
39.31 	agreements, and preadoptive parents with a preadoptive placement in the parents' home 
39.32 	shall receive written information about Northstar Care for Children. Relative custodians 
39.33 	who sign a relative custody assistance agreement and prospective adoptive parents who 
39.34 	sign an adoption assistance agreement subsequent to June 30, 2010, shall receive written 
39.35 	information about Northstar Care for Children no later than when the relative custody 
39.36 	assistance agreement or the adoption assistance agreement is signed by the caregiver.
40.1 	(1) The agency responsible for providing the relative custody assistance payment 
40.2 	shall mail, electronically distribute, or personally provide relative custodians with relative 
40.3 	custody assistance agreements with written information about Northstar Care for Children 
40.4 	when the relative custodians' mail or email address is known. The responsible social 
40.5 	service agency shall make reasonable efforts to locate relative custodians with signed or 
40.6 	executed relative custody assistance agreements whose mail or email address is known.
40.7 	(2) For cases where the adoption assistance agreement is executed or submitted to 
40.8 	the commissioner for review and approval prior to May 1, 2010, the commissioner shall 
40.9 	mail or electronically distribute information about Northstar Care for Children to the 
40.10 	adoptive parent. The commissioner shall make reasonable efforts to locate the adoptive 
40.11 	parent whose mail or email address is unknown. For cases where the adoption assistance 
40.12 	agreement is executed or submitted to the commissioner for review on or after May 1, 
40.13 	2010, and on or before November 24, 2010, the responsible social service agency shall 
40.14 	mail, electronically distribute, or personally provide preadoptive parents with written 
40.15 	information about Northstar Care for Children.
40.16 	(3) Information must minimally include a summary of the provisions of the new 
40.17 	program, an overview of the assessment process, the transition time frame, and actions 
40.18 	required by the relative custodian or adoptive parent during the transition period, including 
40.19 	the procedure to opt in to Northstar Care for Children and renegotiate the adoption 
40.20 	assistance agreement for adoption assistance cases.
40.21 		Subd. 9.Transition; renegotiation of adoption assistance agreements. Adoptive 
40.22 	parents shall provide written notice to the commissioner of the adoptive parents' intent 
40.23 	to renegotiate their adoption assistance program or remain on the pre-Northstar Care 
40.24 	adoption assistance program according to section 259.67 within 60 days of receiving 
40.25 	the written notice in subdivision 8. The commissioner may extend this time frame if 
40.26 	it is determined that the adoptive parent has good cause to warrant extension of this 
40.27 	consideration period. If adoptive parents decide to opt in to Northstar Care for Children, 
40.28 	the adoptive parents' adoption assistance agreement must be renegotiated according to 
40.29 	section 256O.240, subdivision 10. If an adoptive parent would like to opt in to Northstar 
40.30 	Care for Children, but does not believe that the assessment under section 256O.240 was 
40.31 	completed accurately, the adoptive parent shall indicate this in writing to the commissioner 
40.32 	and must be given an extension of the consideration period while a reassessment is 
40.33 	completed. The commissioner may not extend the time frame to renegotiate adoption 
40.34 	assistance agreements after March 31, 2011. All adoption assistance agreements under 
40.35 	Northstar Care for Children for children transitioning from the adoption assistance 
40.36 	program under section 259.67 must be renegotiated and signed by all parties no later than 
41.1 	March 31, 2011. The commissioner may establish additional requirements or deadlines 
41.2 	for implementing the transition.
41.3 		Subd. 10.Effective date of payment rates. The new rates for payment under 
41.4 	Northstar Care for Children must be determined under section 256O.250 and effective 
41.5 	according to the timelines in subdivision 7, paragraph (b).
41.6 		Subd. 11.Purchase of child-specific adoption services. The commissioner may 
41.7 	reimburse the placing agency for appropriate adoption services for children eligible under 
41.8 	section 259.67, subdivision 35.

41.9 	Sec. 17. Minnesota Statutes 2008, section 257.85, subdivision 2, is amended to read:
41.10 		Subd. 2.Scope. The provisions of this section apply to those situations in which 
41.11 	the legal and physical custody of a child is established with a relative or important friend 
41.12 	with whom the child has resided or had significant contact according to section 260C.201, 
41.13 	subdivision 11, by a district court order issued on or after July 1, 1997, and on or before 
41.14 	November 24, 2010, or a tribal court order issued on or after July 1, 2005, and on or 
41.15 	before November 24, 2010, when the child has been removed from the care of the parent 
41.16 	by previous district or tribal court order.

41.17 	EFFECTIVE DATE. This section is effective August 1, 2009.

41.18 	Sec. 18. Minnesota Statutes 2008, section 257.85, subdivision 5, is amended to read:
41.19 		Subd. 5.Relative custody assistance agreement. (a) A relative custody assistance 
41.20 	agreement will not be effective, unless it is signed by the local agency and the relative 
41.21 	custodian no later than 30 days after the date of the order establishing permanent legal and 
41.22 	physical custody, and on or before November 24, 2010, except that a local agency may 
41.23 	enter into a relative custody assistance agreement with a relative custodian more than 30 
41.24 	days after the date of the order if it certifies that the delay in entering the agreement was 
41.25 	through no fault of the relative custodian and the agreement is signed and in effect on or 
41.26 	before November 24, 2010. There must be a separate agreement for each child for whom 
41.27 	the relative custodian is receiving relative custody assistance.
41.28 	(b) Regardless of when the relative custody assistance agreement is signed by the 
41.29 	local agency and relative custodian, the effective date of the agreement shall be the date of 
41.30 	the order establishing permanent legal and physical custody.
41.31 	(c) If MFIP is not the applicable program for a child at the time that a relative 
41.32 	custody assistance agreement is entered on behalf of the child, when MFIP becomes 
41.33 	the applicable program, if the relative custodian had been receiving custody assistance 
41.34 	payments calculated based upon a different program, the amount of relative custody 
42.1 	assistance payment under subdivision 7 shall be recalculated under the Minnesota family 
42.2 	investment program.
42.3 	(d) The relative custody assistance agreement shall be in a form specified by the 
42.4 	commissioner and shall include provisions relating to the following:
42.5 	(1) the responsibilities of all parties to the agreement;
42.6 	(2) the payment terms, including the financial circumstances of the relative 
42.7 	custodian, the needs of the child, the amount and calculation of the relative custody 
42.8 	assistance payments, and that the amount of the payments shall be reevaluated annually;
42.9 	(3) the effective date of the agreement, which shall also be the anniversary date for 
42.10 	the purpose of submitting the annual affidavit under subdivision 8;
42.11 	(4) that failure to submit the affidavit as required by subdivision 8 will be grounds 
42.12 	for terminating the agreement;
42.13 	(5) the agreement's expected duration, which shall not extend beyond the child's 
42.14 	eighteenth birthday;
42.15 	(6) any specific known circumstances that could cause the agreement or payments 
42.16 	to be modified, reduced, or terminated and the relative custodian's appeal rights under 
42.17 	subdivision 9;
42.18 	(7) that the relative custodian must notify the local agency within 30 days of any of 
42.19 	the following:
42.20 	(i) a change in the child's status;
42.21 	(ii) a change in the relationship between the relative custodian and the child;
42.22 	(iii) a change in composition or level of income of the relative custodian's family;
42.23 	(iv) a change in eligibility or receipt of benefits under MFIP, or other assistance 
42.24 	program; and
42.25 	(v) any other change that could affect eligibility for or amount of relative custody 
42.26 	assistance;
42.27 	(8) that failure to provide notice of a change as required by clause (7) will be 
42.28 	grounds for terminating the agreement;
42.29 	(9) that the amount of relative custody assistance is subject to the availability of state 
42.30 	funds to reimburse the local agency making the payments;
42.31 	(10) that the relative custodian may choose to temporarily stop receiving payments 
42.32 	under the agreement at any time by providing 30 days' notice to the local agency and may 
42.33 	choose to begin receiving payments again by providing the same notice but any payments 
42.34 	the relative custodian chooses not to receive are forfeit; and
43.1 	(11) that the local agency will continue to be responsible for making relative custody 
43.2 	assistance payments under the agreement regardless of the relative custodian's place of 
43.3 	residence.

43.4 	EFFECTIVE DATE. This section is effective August 1, 2009.

43.5 	Sec. 19. Minnesota Statutes 2008, section 257.85, subdivision 6, is amended to read:
43.6 		Subd. 6.Eligibility criteria. (a) A local agency shall enter into a relative custody 
43.7 	assistance agreement under subdivision 5 if it certifies that the following criteria are met:
43.8 	(1) the juvenile court has determined or is expected to determine that the child, 
43.9 	under the former or current custody of the local agency, cannot return to the home of 
43.10 	the child's parents;
43.11 	(2) the court, upon determining that it is in the child's best interests, has issued 
43.12 	or is expected to issue an order transferring permanent legal and physical custody of 
43.13 	the child; and
43.14 	(3) the child either:
43.15 	(i) is a member of a sibling group to be placed together; or
43.16 	(ii) has a physical, mental, emotional, or behavioral disability that will require 
43.17 	financial support.
43.18 	When the local agency bases its certification that the criteria in clause (1) or (2) are 
43.19 	met upon the expectation that the juvenile court will take a certain action, the relative 
43.20 	custody assistance agreement does not become effective until and unless the court acts as 
43.21 	expected.
43.22 	(b) After November 24, 2010, no new relative custody assistance agreements shall 
43.23 	be executed. Agreements that were signed on or before November 24, 2010, and were not 
43.24 	in effect because the proposed transfer of permanent legal and physical custody of the 
43.25 	child did not occur on or before November 24, 2010, must be renegotiated according to 
43.26 	the terms of Northstar Care for Children in chapter 256O.

43.27 	EFFECTIVE DATE. This section is effective August 1, 2009.

43.28 	Sec. 20. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
43.29 	to read:
43.30 		Subd. 11.Purpose and general eligibility requirements. (a) The purpose of the 
43.31 	adoption assistance program is to help make adoption possible for children who would 
43.32 	otherwise remain in foster care.
43.33 	(b) To be eligible for adoption assistance, a child must:
44.1 	(1) be determined to be a child with special needs, according to subdivision 12;
44.2 	(2) meet the applicable citizenship and immigration requirements in subdivision 
44.3 	13; and
44.4 	(3)(i) meet the criteria outlined in section 473 of the Social Security Act; or
44.5 	(ii) have had foster care payments paid on the child's behalf while in out-of-home 
44.6 	placement through the county or tribe, and be either under the guardianship of the 
44.7 	commissioner or under the jurisdiction of a Minnesota tribe, with adoption in accordance 
44.8 	with tribal law as the child's documented permanency plan.
44.9 	(c) In addition to the requirements in paragraph (b), the child's adoptive parents must 
44.10 	meet the applicable background study requirements outlined in subdivision 14.
44.11 	(d) The legally responsible agency shall make a title IV-E adoption assistance 
44.12 	eligibility determination for each child. Children who meet all eligibility criteria except 
44.13 	those specific to title IV-E adoption assistance shall receive adoption assistance paid 
44.14 	through state funds.

44.15 	EFFECTIVE DATE. This section is effective July 1, 2009.

44.16 	Sec. 21. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
44.17 	to read:
44.18 		Subd. 12.Special needs determination. (a) A child is considered a child with 
44.19 	special needs under this section if all of the requirements in paragraphs (b) to (g) are met.
44.20 	(b) There has been a determination that the child cannot or should not be returned to 
44.21 	the home of the child's parents as evidenced by:
44.22 	(1) a court-ordered termination of parental rights;
44.23 	(2) a petition to terminate parental rights;
44.24 	(3) a consent to adopt accepted by the court under sections 260C.201, subdivision 
44.25 	11, and 259.24;
44.26 	(4) in circumstances when tribal law permits the child to be adopted without a 
44.27 	termination of parental rights, a judicial determination by tribal court indicating the valid 
44.28 	reason why the child cannot or should not return home;
44.29 	(5) a voluntary relinquishment under section 259.25 or 259.47 or, if relinquishment 
44.30 	occurred in another state, the applicable laws in that state; or
44.31 	(6) the death of the legal parent.
44.32 	(c) There exists a specific factor or condition because of which it is reasonable to 
44.33 	conclude that the child cannot be placed with adoptive parents without providing adoption 
44.34 	assistance as evidenced by:
45.1 	(1) a determination by the Social Security Administration that the child meets all 
45.2 	medical or disability requirements of title XVI of the Social Security Act with respect to 
45.3 	eligibility for Supplemental Security Income benefits;
45.4 	(2) a documented physical, mental, emotional, or behavioral disability not covered 
45.5 	under clause (1);
45.6 	(3) membership in a sibling group being adopted at the same time by the same parent;
45.7 	(4) adoptive placement in the home of a parent who previously adopted another child 
45.8 	born of the same mother or father for whom they receive adoption assistance; or
45.9 	(5) documentation that the child is a high-risk child, according to subdivision 17.
45.10 	(d) A reasonable but unsuccessful effort must have been made to place the child 
45.11 	with adoptive parents without providing adoption assistance as evidenced by:
45.12 	(1)(i) a documented search for an appropriate adoptive placement; or 
45.13 	(ii) a determination by the commissioner that such a search would not be in the best 
45.14 	interests of the child; and
45.15 	(2) a written statement from the identified prospective adoptive parents that they are 
45.16 	either unwilling or unable to adopt the child without adoption assistance.
45.17 	(e) To meet the requirement of a documented search for an appropriate adoptive 
45.18 	placement under paragraph (d), clause (1), item (i), the placing agency minimally must:
45.19 	(1) give consideration, as required by section 260C.212, subdivision 5, to placement 
45.20 	with a relative;
45.21 	(2) for an Indian child covered by the Indian Child Welfare Act, comply with the 
45.22 	placement preferences identified in the Indian Child Welfare Act and the Minnesota Indian 
45.23 	Family Preservation Act; and 
45.24 	(3) review all families approved for adoption who are associated with the placing 
45.25 	agency.
45.26 	If the review of families associated with the placing agency results in the 
45.27 	identification of an appropriate adoptive placement for the child, the placing agency must 
45.28 	provide documentation of the placement decision to the commissioner as part of the 
45.29 	application for adoption assistance.
45.30 	If two or more appropriate families are not approved or available within the placing 
45.31 	agency, the agency shall locate additional prospective adoptive families by registering the 
45.32 	child with the State Adoption Exchange, as required under section 259.75. If registration 
45.33 	with the State Adoption Exchange does not result in an appropriate family for the child, 
45.34 	the agency shall employ other recruitment methods, as outlined in recruitment policies and 
45.35 	procedures prescribed by the commissioner, to meet this requirement.
46.1 	(f) The requirement for a documented search for an appropriate adoptive placement 
46.2 	under paragraph (d), including review of all families approved for adoption that are 
46.3 	associated with the placing agency, registration of the child with the State Adoption 
46.4 	Exchange, and additional recruitment methods, must be waived if:
46.5 	(1) the child is being adopted by a relative;
46.6 	(2) the child is being adopted by foster parents with whom the child has developed 
46.7 	significant emotional ties while in their care as a foster child;
46.8 	(3) the child is being adopted by a family that previously adopted a child of the 
46.9 	same mother or father; or
46.10 	(4) the court determines that adoption by the identified family is in the child's best 
46.11 	interest.
46.12 	For an Indian child covered by the Indian Child Welfare Act, a waiver must not be 
46.13 	granted unless the placing agency has complied with the placement preferences identified 
46.14 	in the Indian Child Welfare Act and the Minnesota Indian Family Preservation Act.
46.15 	(g) Once the placing agency has determined that placement with an identified family 
46.16 	is in the child's best interest and made full written disclosure about the child's social 
46.17 	and medical history, the agency must ask the prospective adoptive parents if they are 
46.18 	willing to adopt the child without adoption assistance. If the identified family is either 
46.19 	unwilling or unable to adopt the child without adoption assistance, they must provide a 
46.20 	written statement to this effect to the placing agency to fulfill the requirement to make 
46.21 	a reasonable effort to place the child without adoption assistance, and a copy of this 
46.22 	statement shall be included in the adoption assistance application. If the identified family 
46.23 	desires to adopt the child without adoption assistance, the family must provide a written 
46.24 	statement to this effect to the placing agency and the statement must be maintained in the 
46.25 	permanent adoption record of the placing agency. For children under the commissioner's 
46.26 	guardianship, the placing agency shall submit a copy of this statement to the commissioner 
46.27 	to be maintained in the permanent adoption record.

46.28 	EFFECTIVE DATE. This section is effective July 1, 2009.

46.29 	Sec. 22. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
46.30 	to read:
46.31 		Subd. 13.Citizenship and immigration status. (a) A child must be a citizen of the 
46.32 	United States or otherwise eligible for federal public benefits according to the Personal 
46.33 	Responsibility and Work Opportunity Reconciliation Act of 1996, as amended, in order to 
46.34 	be eligible for title IV-E adoption assistance.
47.1 	(b) A child must be a citizen of the United States or meet the qualified alien 
47.2 	requirements as defined in the Personal Responsibility and Work Opportunity 
47.3 	Reconciliation Act of 1996, as amended, in order to be eligible for state-funded adoption 
47.4 	assistance.

47.5 	EFFECTIVE DATE. This section is effective July 1, 2009.

47.6 	Sec. 23. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
47.7 	to read:
47.8 		Subd. 14.Background study. (a) A background study under section 259.41 must 
47.9 	be completed on each prospective adoptive parent. If the background study reveals:
47.10 	(1) a felony conviction at any time for child abuse or neglect;
47.11 	(2) spousal abuse;
47.12 	(3) a crime against children, including child pornography;
47.13 	(4) a crime involving violence, including rape, sexual assault, or homicide, but not 
47.14 	including other physical assault or battery; or
47.15 	(5) a felony conviction within the past five years for physical assault, battery, or a 
47.16 	drug-related offense, 
47.17 	the adoptive parent is prohibited from receiving title IV-E adoption assistance on behalf of 
47.18 	an otherwise eligible child.
47.19 	(b) A prospective adoptive parent who possesses one of the felony convictions in 
47.20 	paragraph (a) may receive state-funded adoption assistance on behalf of an otherwise 
47.21 	eligible child if the court has made a judicial determination that:
47.22 	(1) the legally responsible agency has thoroughly reviewed the felony conviction 
47.23 	and has considered the impact, if any, that the conviction may have on the child's safety, 
47.24 	well-being, and permanency;
47.25 	(2) the conviction likely does not pose a current or future safety risk to the child;
47.26 	(3) there is no other available permanency resource that is appropriate for the 
47.27 	child; and 
47.28 	(4) the adoptive placement is in the child's best interest.

47.29 	EFFECTIVE DATE. This section is effective July 1, 2009.

47.30 	Sec. 24. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
47.31 	to read:
47.32 		Subd. 15.Residency. A child placed in the state from another state or a tribe outside 
47.33 	of the state is not eligible for state-funded adoption assistance through the state. A child 
48.1 	placed in the state from another state or a tribe outside of the state may be eligible for title 
48.2 	IV-E adoption assistance through the state of Minnesota if all eligibility factors are met 
48.3 	and there is no state agency that has responsibility for placement and care of the child.

48.4 	EFFECTIVE DATE. This section is effective July 1, 2009.

48.5 	Sec. 25. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
48.6 	to read:
48.7 		Subd. 16.Exceptions and exclusions. Payments for adoption assistance shall 
48.8 	not be made to a biological parent of the child or a stepparent who adopts the child. 
48.9 	Direct placement adoptions under section 259.47 or the equivalent in tribal code are 
48.10 	not eligible for state-funded adoption assistance. A child who is adopted by the child's 
48.11 	legal custodian or guardian is not eligible for state-funded adoption assistance. A child 
48.12 	who is adopted by the child's legal custodian or guardian may be eligible for title IV-E 
48.13 	adoption assistance if all required eligibility factors are met. International adoptions are 
48.14 	not eligible for adoption assistance unless the adopted child has been placed into foster 
48.15 	care through the public child welfare system subsequent to the failure of the adoption 
48.16 	and all required eligibility factors are met.

48.17 	EFFECTIVE DATE. This section is effective July 1, 2009.

48.18 	Sec. 26. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
48.19 	to read:
48.20 		Subd. 17.Documentation. Documentation must be provided to verify that a child 
48.21 	meets the special needs criteria outlined in subdivision 12.
48.22 	(a) Documentation of a disability is limited to evidence deemed appropriate by 
48.23 	the commissioner.
48.24 	(b) To qualify as being a high-risk child, the placing agency must provide to the 
48.25 	commissioner one or more of the following:
48.26 	(1) documented information in a county or tribal social service department record 
48.27 	or court record that a relative within the first or second degree of the child has a medical 
48.28 	diagnosis or medical history, including diagnosis of a significant mental health or 
48.29 	chemical dependency issue, which could result in the child's development of a disability 
48.30 	during childhood;
48.31 	(2) documented information that while in the public child welfare system, the child 
48.32 	has experienced three or more placements with extended family or different foster homes 
48.33 	that could affect the normal attachment process;
49.1 	(3) documented evidence in a county or tribal social service department record 
49.2 	that the child experienced neglect in the first three years of life, or sustained physical 
49.3 	injury, sexual abuse, or physical disease that could have a long-term effect on physical, 
49.4 	emotional, or mental development; or
49.5 	(4) documented evidence in a medical or hospital record, law enforcement record, 
49.6 	county or tribal social service department record, court record, or record of an agency 
49.7 	under a contract with a county social service agency or the state to provide child welfare 
49.8 	services that the birth mother used drugs or alcohol during pregnancy which could later 
49.9 	result in the child's development of a disability.

49.10 	EFFECTIVE DATE. This section is effective July 1, 2009.

49.11 	Sec. 27. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
49.12 	to read:
49.13 		Subd. 18.Termination. (a) An adoption assistance agreement shall terminate in 
49.14 	any of the following circumstances:
49.15 	(1) the child attains the age of 18, unless an extension as outlined in subdivisions 20 
49.16 	to 23, is applied for by the adoptive parents and granted by the commissioner;
49.17 	(2) the commissioner determines that the adoptive parents are no longer legally 
49.18 	responsible for support of the child;
49.19 	(3) the commissioner determines that the adoptive parents are no longer providing 
49.20 	financial support to the child;
49.21 	(4) death of the child; or
49.22 	(5) the adoptive parents request termination of the adoption assistance agreement 
49.23 	in writing.
49.24 	(b) An adoptive parent is considered no longer legally responsible for support of the 
49.25 	child in any of the following circumstances:
49.26 	(1) parental rights to the child are legally terminated;
49.27 	(2) permanent legal and physical custody or guardianship of the child is transferred 
49.28 	to another individual;
49.29 	(3) death of the adoptive parent;
49.30 	(4) enlistment of the child in the military;
49.31 	(5) marriage of the child; or
49.32 	(6) emancipation of the child through legal action of another state.

49.33 	EFFECTIVE DATE. This section is effective July 1, 2009.

50.1 	Sec. 28. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
50.2 	to read:
50.3 		Subd. 19.Death of adoptive parent or adoption dissolution. (a) The adoption 
50.4 	assistance agreement ends upon death or termination of parental rights of both the adoptive 
50.5 	parents in the case of a two-parent adoption, or the sole adoptive parent in the case of a 
50.6 	single-parent adoption, but the child maintains eligibility for state-funded or title IV-E 
50.7 	adoption assistance in a subsequent adoption if the following criteria are met:
50.8 	(1) the child is determined to be a child with special needs as outlined in subdivision 
50.9 	12;
50.10 	(2) the subsequent adoptive parents reside in Minnesota; and
50.11 	(3) no state agency outside of Minnesota has responsibility for placement and care 
50.12 	of the child at the time of the subsequent adoption.
50.13 	(b) According to federal regulations, if the child had a title IV-E adoption assistance 
50.14 	agreement prior to the death of the adoptive parents or dissolution of the adoption, and a 
50.15 	state agency outside of the state of Minnesota has responsibility for placement and care of 
50.16 	the child at the time of the subsequent adoption, the state of Minnesota is not responsible 
50.17 	for determining whether the child meets the definition of special needs, entering into the 
50.18 	adoption assistance agreement, and making any adoption assistance payments outlined in 
50.19 	the new agreement.
50.20 	(c) According to federal regulations, if the child had a title IV-E adoption assistance 
50.21 	agreement prior to the death of the adoptive parents or dissolution of the adoption, the 
50.22 	subsequent adoptive parents reside outside of the state of Minnesota, and no state agency 
50.23 	has responsibility for placement and care of the child at the time of the subsequent 
50.24 	adoption, the state of Minnesota is not responsible for determining whether the child 
50.25 	meets the definition of special needs, entering into the adoption assistance agreement, and 
50.26 	making any adoption assistance payments outlined in the new agreement.

50.27 	EFFECTIVE DATE. This section is effective July 1, 2009.

50.28 	Sec. 29. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
50.29 	to read:
50.30 		Subd. 20.Extension, past age 18. Under certain limited circumstances a child 
50.31 	may qualify for extension of the adoption assistance agreement beyond the date the 
50.32 	child attains age 18. An application for extension must be completed and submitted by 
50.33 	the adoptive parent at least 90 days prior to the date the child attains age 18, unless the 
50.34 	child's adoption is scheduled to finalize less than 90 days prior to that date in which 
50.35 	case the application for extension must be completed and submitted with the adoption 
51.1 	assistance application. The application for extension must be made according to policies 
51.2 	and procedures prescribed by the commissioner, including documentation of eligibility, 
51.3 	and on forms prescribed by the commissioner.

51.4 	EFFECTIVE DATE. This section is effective July 1, 2009.

51.5 	Sec. 30. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
51.6 	to read:
51.7 		Subd. 21.Extension based on a continuing physical or mental disability. (a) 
51.8 	Extensions based on a child's continuing physical or mental disability must be applied 
51.9 	for prior to the date the child attains age 18 and according to the requirements under 
51.10 	subdivision 20. The commissioner must not grant an extension on this basis if an extension 
51.11 	based on continued enrollment in a secondary education or being a child whose adoption 
51.12 	finalized after age 16 was previously granted for the child.
51.13 	(b) A child is eligible for extension of the adoption assistance agreement up to the 
51.14 	date the child attains age 21 if the following criteria are met:
51.15 	(1) the child has a mental or physical disability upon which eligibility for adoption 
51.16 	assistance was based which warrants the continuation of assistance;
51.17 	(2) the child is unable to obtain self-sustaining employment due to the 
51.18 	aforementioned mental or physical disability; and 
51.19 	(3) the child needs significantly more care and support than what is typical for an 
51.20 	individual of the same age.

51.21 	EFFECTIVE DATE. This section is effective July 1, 2009.

51.22 	Sec. 31. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
51.23 	to read:
51.24 		Subd. 22.Extension based on continued enrollment in a secondary education 
51.25 	program. (a) If a child does not qualify for extension based on a continuing physical or 
51.26 	mental disability or a parent chooses not to apply for such extension, the adoptive parents 
51.27 	may make an application for continuation of adoption assistance based on enrollment in 
51.28 	a secondary education program.
51.29 	(b) If a child is enrolled full-time in a secondary education program or a program 
51.30 	leading to an equivalent credential, the child is eligible for extension to the expected 
51.31 	gradation date or the date the child attains age 19, whichever is earlier. If a child receives 
51.32 	a school-based extension and at any time ceases to be enrolled in a full-time secondary 
52.1 	education program or a program leading to an equivalent credential, the adoptive parents 
52.2 	are responsible to notify the commissioner and the agreement must terminate.
52.3 	(c) Extensions based on continuation in a secondary education program must be paid 
52.4 	from state funds only, unless the child meets the extension criteria outlined in subdivision 
52.5 	23.

52.6 	EFFECTIVE DATE. This section is effective July 1, 2009.

52.7 	Sec. 32. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
52.8 	to read:
52.9 		Subd. 23.Extension for children whose adoption finalized after age 16. A child 
52.10 	who attained the age of 16 prior to finalization of their adoption is eligible for extension of 
52.11 	the adoption assistance agreement to the date the child attains age 21 if the child is:
52.12 	(1) completing a secondary education program or a program leading to an equivalent 
52.13 	credential;
52.14 	(2) enrolled in an institution which provides postsecondary or vocational education;
52.15 	(3) participating in a program or activity designed to promote or remove barriers to 
52.16 	employment;
52.17 	(4) employed for at least 80 hours per month; or
52.18 	(5) incapable of doing any of the activities described in clauses (1) to (4) due to a 
52.19 	medical condition, which incapability is supported by regularly updated information in 
52.20 	the case plan of the child.

52.21 	EFFECTIVE DATE. This section is effective October 1, 2010.

52.22 	Sec. 33. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
52.23 	to read:
52.24 		Subd. 24.Adoption assistance certification. The placing agency shall certify a 
52.25 	child as eligible for adoption assistance according to policies and procedures, and on 
52.26 	a form or forms, prescribed by the commissioner. Professional documentation must 
52.27 	be submitted with the certification, and when applicable, the supplemental adoption 
52.28 	assistance needs assessment, to establish eligibility for the amount of payment requested. 
52.29 	This form must be submitted with the adoption assistance agreement under subdivision 25.

52.30 	EFFECTIVE DATE. This section is effective July 1, 2009.

52.31 	Sec. 34. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
52.32 	to read:
53.1 		Subd. 25.Adoption assistance agreement. (a) In order to receive adoption 
53.2 	assistance benefits, a written, binding agreement on a form approved by the commissioner 
53.3 	must be established and completed by the placing agency prior to finalization of the 
53.4 	adoption. The agreement must be negotiated with the parents, in the case of a two-parent 
53.5 	adoption, or the adoptive parent, in the case of a single-parent adoption, as required in 
53.6 	subdivision 26. The parents, an approved representative from the placing agency, and 
53.7 	the commissioner or the commissioner's designee must sign the agreement prior to the 
53.8 	effective date of the adoption decree. The adoption assistance certification and agreement 
53.9 	must be granted or denied by the commissioner no later than 15 working days after receipt 
53.10 	of a complete and correct certification and agreement. A fully executed copy of the signed 
53.11 	agreement must be given to each party. Termination or disruption of the preadoptive 
53.12 	placement preceding adoption finalization makes the agreement with that family void.
53.13 	(b) The agreement must specify the following:
53.14 	(1) duration of the agreement;
53.15 	(2) the nature and amount of any payment, services, and assistance to be provided 
53.16 	under such agreement;
53.17 	(3) the child's eligibility for Medicaid services;
53.18 	(4) the terms of the payment;
53.19 	(5) eligibility for reimbursement of nonrecurring expenses associated with adopting 
53.20 	the child, to the extent that the total cost does not exceed $2,000 per child;
53.21 	(6) that the agreement must remain in effect regardless of the state of which the 
53.22 	adoptive parents are residents at any given time;
53.23 	(7) provisions for modification of the terms of the agreement; and
53.24 	(8) the effective date of the agreement.
53.25 	(c) The agreement is effective the date of the adoption decree.

53.26 	EFFECTIVE DATE. This section is effective July 1, 2009.

53.27 	Sec. 35. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
53.28 	to read:
53.29 		Subd. 26.Negotiation of the agreement. (a) A monthly payment is provided 
53.30 	as part of the adoption assistance agreement to support the care of a child who has 
53.31 	manifested special needs. The amount of the payment made on behalf of a child eligible 
53.32 	for adoption assistance is determined through agreement between the adoptive parents 
53.33 	and the commissioner or the commissioner's designee. The agreement shall take into 
53.34 	consideration the circumstances of the adopting parents and the needs of the child being 
53.35 	adopted. The income of the adoptive parents must not be taken into consideration when 
54.1 	determining eligibility for adoption assistance or the amount of the payments under 
54.2 	subdivision 28. At the written request of the adoptive parents, the amount of the payment 
54.3 	in the agreement may be renegotiated when there is a change in the child's needs or the 
54.4 	family's circumstances.
54.5 	(b) The adoption assistance agreement of a child who is identified as a high-risk child 
54.6 	must not include a monthly payment unless and until the potential disability manifests 
54.7 	itself, as documented by an appropriate professional, and the commissioner authorizes 
54.8 	commencement of payment by modifying the agreement accordingly. An adoptive parent 
54.9 	of a high-risk child with an adoption assistance agreement may request a renegotiation of 
54.10 	the adoption assistance agreement under subdivision 27 to include a monthly payment, 
54.11 	if the parent has written professional documentation that the potential disability upon 
54.12 	which eligibility for the agreement was based has manifested itself. Documentation of the 
54.13 	disability shall be limited to evidence deemed appropriate by the commissioner.

54.14 	EFFECTIVE DATE. This section is effective July 1, 2009.

54.15 	Sec. 36. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
54.16 	to read:
54.17 		Subd. 27.Renegotiation of the agreement. (a) An adoptive parent of a child 
54.18 	with an adoption assistance agreement may request renegotiation of the agreement when 
54.19 	there is a change in the needs of the child or in the family's circumstances. When an 
54.20 	adoptive parent requests renegotiation of the agreement, a reassessment of the child must 
54.21 	be completed consistent with subdivision 28. If the reassessment indicates that the child's 
54.22 	level has changed, the commissioner or the commissioner's designee and the parent shall 
54.23 	renegotiate the agreement to include a payment with the level determined appropriate 
54.24 	through the reassessment process. The agreement must not be renegotiated unless the 
54.25 	commissioner and the parent mutually agree to the changes. The effective date of any 
54.26 	renegotiated agreement must be determined by the commissioner.
54.27 	(b) An adoptive parent of a high-risk child with an adoption assistance agreement 
54.28 	may request renegotiation of the agreement to include a monthly payment, if the parent 
54.29 	has written professional documentation that the potential disability upon which eligibility 
54.30 	for the agreement was based has manifested itself. Documentation of the disability must 
54.31 	be limited to evidence deemed appropriate by the commissioner. Prior to renegotiating 
54.32 	the agreement, a reassessment of the child must be conducted. The reassessment must 
54.33 	be used to renegotiate the agreement to include an appropriate monthly payment. The 
54.34 	agreement must not be renegotiated unless the commissioner and the adoptive parent 
55.1 	mutually agree to the changes. The effective date of any renegotiated agreement must be 
55.2 	determined by the commissioner.

55.3 	EFFECTIVE DATE. This section is effective July 1, 2009.

55.4 	Sec. 37. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
55.5 	to read:
55.6 		Subd. 28.Benefits and payments. (a) Eligibility for medical assistance for children 
55.7 	receiving adoption assistance is as specified in section 256B.055.
55.8 	(b) The basic maintenance payments must be made according to the following 
55.9 	schedule for all children except those eligible for adoption assistance based on high risk of 
55.10 	developing a disability:

55.11		Birth through age five
	up to $247 per month
	
55.12		Age six through age 11
	up to $277 per month
	
55.13		Age 12 through age 14
	up to $307 per month
	
55.14		Age 15 and older
	up to $337 per month
	
55.15 	A child must receive the maximum payment amount for the child's age, unless a lesser 
55.16 	amount is negotiated with and agreed to by the prospective adoptive parent.
55.17 	(c) Supplemental adoption assistance needs payments, in addition to basic 
55.18 	maintenance payments, are available for a child whose disability necessitates care, 
55.19 	supervision, and structure beyond that ordinarily provided in a family setting to persons 
55.20 	of the same age. These payments are related to the severity of a child's disability and 
55.21 	the level of parenting required to care for the child, and must be made according to the 
55.22 	following schedule:

55.23		Level I
	up to $150 per month
	
55.24		Level II
	up to $275 per month
	
55.25		Level III
	up to $400 per month
	
55.26		Level IV
	up to $500 per month
	
55.27 	A child's level shall be assessed on a supplemental maintenance needs assessment form 
55.28 	prescribed by the commissioner. The adoptive parent may request a reassessment if at 
55.29 	least six months has elapsed since the previously requested review. A child must receive 
55.30 	the maximum payment amount for the child's assessed level, unless a lesser amount is 
55.31 	negotiated with and agreed to by the prospective adoptive parent.
55.32 	(d) Reimbursement for special nonmedical expenses is available to all children 
55.33 	except those eligible for adoption assistance based on high risk of developing a disability. 
55.34 	Reimbursements under this paragraph will be made only after the adoptive parents 
55.35 	document that an application for the applicable service was denied by the local social 
56.1 	service agency, community agencies, local school district, local public health department, 
56.2 	the parent's insurance provider, or the child's Medicaid program. Reimbursements must 
56.3 	be made according to the policies and procedures prescribed by the commissioner and 
56.4 	are limited to:
56.5 	(1) child care;
56.6 	(2) respite care;
56.7 	(3) camping program;
56.8 	(4) home and vehicle modifications;
56.9 	(5) family counseling;
56.10 	(6) postadoption counseling;
56.11 	(7) services to children under age three who are developmentally delayed;
56.12 	(8) specialized communication equipment; and
56.13 	(9) burial expenses.

56.14 	EFFECTIVE DATE. This section is effective July 1, 2009.

56.15 	Sec. 38. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
56.16 	to read:
56.17 		Subd. 29.Child income or income attributable to the child. If a child for whom a 
56.18 	parent is receiving adoption assistance is also receiving Supplemental Security Income 
56.19 	(SSI) or Retirement, Survivors, Disability Insurance (RSDI), the certifying agency shall 
56.20 	inform the adoptive parents that the child's adoption assistance must be reported to the 
56.21 	Social Security Administration.

56.22 	EFFECTIVE DATE. This section is effective July 1, 2009.

56.23 	Sec. 39. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
56.24 	to read:
56.25 		Subd. 30.Payments. (a) Payments to parents under adoption assistance must 
56.26 	be made monthly.
56.27 	(b) Payments must commence when the commissioner receives the adoption decree 
56.28 	from the court, the legally responsible agency, or the parent. Payments must be made 
56.29 	according to policies and procedures prescribed by the commissioner.

56.30 	EFFECTIVE DATE. This section is effective July 1, 2009.

56.31 	Sec. 40. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
56.32 	to read:
57.1 		Subd. 31.Overpayments. (a) The commissioner has the authority to collect any 
57.2 	amount of adoption assistance paid to a parent in excess of the payment due. Payments 
57.3 	covered by this subdivision include basic maintenance needs payments, supplemental 
57.4 	maintenance needs payments, and reimbursements of nonmedical expenses under 
57.5 	subdivision 28. Prior to any collection, the commissioner or designee shall notify the 
57.6 	parent in writing, including:
57.7 	(1) the amount of the overpayment and an explanation of the cause of overpayment;
57.8 	(2) clarification of the corrected amount;
57.9 	(3) a statement of the legal authority for the decision;
57.10 	(4) information about how the parent can correct the overpayment;
57.11 	(5) if repayment is required, when the payment is due and a person to contact to 
57.12 	review a repayment plan;
57.13 	(6) a statement that the parent has a right to a fair hearing review by the department; 
57.14 	and
57.15 	(7) the procedure for seeking such a review.

57.16 	EFFECTIVE DATE. This section is effective July 1, 2009.

57.17 	Sec. 41. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
57.18 	to read:
57.19 		Subd. 32.Payee. For adoption assistance cases, the payment may only be made to 
57.20 	the adoptive parent specified on the agreement. If there is more than one adoptive parent, 
57.21 	both parties must be listed as the payee unless otherwise specified in writing according 
57.22 	to policies and procedures prescribed by the commissioner. In the event of divorce or 
57.23 	separation of the parents, a change of payee may be made in writing according to policies 
57.24 	and procedures prescribed by the commissioner. If both parents are in agreement as to 
57.25 	the change, it may be made according to a process prescribed by the commissioner. If 
57.26 	there is not agreement as to the change, a court order indicating the party who is to receive 
57.27 	the payment is needed before a change can be processed. In the event of the death of the 
57.28 	payee, a change of payee consistent with subdivision 19 may be made in writing according 
57.29 	to policies and procedures prescribed by the commissioner.

57.30 	EFFECTIVE DATE. This section is effective July 1, 2009.

57.31 	Sec. 42. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
57.32 	to read:
58.1 		Subd. 33.Notification of change. (a) An adoptive parent who has an adoption 
58.2 	assistance agreement in place shall keep the agency administering the program informed 
58.3 	of the parent's address and circumstances which would make them ineligible for the 
58.4 	payments or eligible for the payments in a different amount.
58.5 	(b) For the duration of the agreement, the adoptive parent agrees to notify the agency 
58.6 	administering the program in writing within 30 days of the following changes:
58.7 	(1) change in the family's address;
58.8 	(2) change in the legal custody status of the child;
58.9 	(3) child's completion of high school, if this occurs after the child attains age 18;
58.10 	(4) date of termination of the parental rights of the adoptive parent, transfer of 
58.11 	permanent legal and physical custody to another person, guardianship to another person, 
58.12 	or other determination that the adoptive parent is no longer legally responsible for the 
58.13 	support of the child;
58.14 	(5) date the adoptive parent is no longer providing support to the child;
58.15 	(6) date of death of the child;
58.16 	(7) date of death of the adoptive parent;
58.17 	(8) date the child enlists in the military;
58.18 	(9) date of marriage of the child;
58.19 	(10) date the child becomes an emancipated minor through legal action of another 
58.20 	state;
58.21 	(11) separation or divorce of the adoptive parent; and
58.22 	(12) residence of the child outside the home for a period of more than 30 consecutive 
58.23 	days.

58.24 	EFFECTIVE DATE. This section is effective July 1, 2009.

58.25 	Sec. 43. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
58.26 	to read:
58.27 		Subd. 34.Termination notice for parent. The commissioner shall provide the 
58.28 	child's parent written notice of termination of payment. Termination notices must be sent 
58.29 	at least 15 days before the final payment or in the case of an unplanned termination, 
58.30 	the notice is sent within three days of the end of the payment. The written notice must 
58.31 	minimally include the following:
58.32 	(1) the date payment will end;
58.33 	(2) the reason payments will end and the event that is the basis to terminate payment;
58.34 	(3) a statement that the parent has a right to a fair hearing review by the department 
58.35 	consistent with section 256.045, subdivision 3;
59.1 	(4) the procedure to request a fair hearing; and
59.2 	(5) the agency name and address to which a fair hearing request must be sent.

59.3 	EFFECTIVE DATE. This section is effective July 1, 2009.

59.4 	Sec. 44. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
59.5 	to read:
59.6 		Subd. 35.Reimbursement of costs through purchase of service. (a) Subject 
59.7 	to policies and procedures prescribed by the commissioner and the provisions of this 
59.8 	subdivision, a child-placing agency licensed in Minnesota or any other state, or local 
59.9 	or tribal social services agency shall receive a reimbursement from the commissioner 
59.10 	equal to 100 percent of the reasonable and appropriate cost of providing child-specific 
59.11 	adoption services. Adoption services under this subdivision may include child-specific 
59.12 	recruitment, child-specific training and home studies for prospective adoptive parents, 
59.13 	and placement services.
59.14 	(b) An eligible child must have a goal of adoption, which may include an adoption 
59.15 	according to tribal law, and meet one of the following criteria:
59.16 	(1) is a ward of the Minnesota commissioner of human services or a ward of a 
59.17 	Minnesota tribal court under section 260.755, subdivision 20, who meets one of the 
59.18 	criteria under subdivision 12, paragraph (b), and one of the criteria under subdivision 12, 
59.19 	paragraph (c), clauses (1) to (5); or
59.20 	(2) is under the guardianship of a Minnesota-licensed child-placing agency who 
59.21 	meets one of the eligibility criteria under subdivision 12, paragraph (b), and one of the 
59.22 	criteria in subdivision 12, paragraph (c), clauses (1) to (4).
59.23 	(c) A child-placing agency licensed in Minnesota or any other state shall receive 
59.24 	reimbursement for adoption services it purchase for or directly provides to an eligible 
59.25 	child. Tribal social services shall receive reimbursement for adoption services it purchases 
59.26 	for or directly provides to an eligible child. A local social services agency shall receive 
59.27 	reimbursement only for adoption services it purchases for an eligible child.
59.28 	(d) Before providing adoption services for which reimbursement is sought under this 
59.29 	subdivision, a reimbursement agreement, on the forms prescribed by the commissioner, 
59.30 	must be signed by the commissioner. No reimbursement under this subdivision must 
59.31 	be made to an agency for services provided prior to signatures by all required parties 
59.32 	on a reimbursement agreement. Separate reimbursement agreements must be made for 
59.33 	each child and separate records must be kept on each child for whom a reimbursement 
59.34 	agreement is made. Reimbursement shall not be made unless the commissioner of 
59.35 	human services agrees that the reimbursement costs are reasonable and appropriate. The 
60.1 	commissioner may spend up to $16,000 for each purchase of service agreement per 
60.2 	child. Only one agreement per child is allowed, unless an exception is granted by the 
60.3 	commissioner and agreed to in writing by the commissioner prior to commencement of 
60.4 	services. Funds encumbered and obligated under such an agreement for the child remain 
60.5 	available until the terms of the agreement are fulfilled or the agreement is terminated.
60.6 	(e) The commissioner shall make reimbursement payments directly to the agency 
60.7 	providing the service if direct reimbursement is specified by the purchase of service 
60.8 	agreement and if the request for reimbursement is submitted by the local or tribal social 
60.9 	services agency along with verification on a form prescribed by the commissioner that 
60.10 	the service was provided.
60.11 	(f) The commissioner shall set aside an amount not to exceed five percent of the 
60.12 	total amount of fiscal year appropriation from the state of Minnesota for the adoption 
60.13 	assistance program to reimburse placing agencies for adoption services. When adoption 
60.14 	assistance payments for children's needs exceed 95 percent of the total amount of fiscal 
60.15 	year appropriation from the state of Minnesota for the adoption assistance program, the 
60.16 	amount of reimbursement available to placing agencies for adoption services is reduced 
60.17 	correspondingly.

60.18 	EFFECTIVE DATE. This section is effective July 1, 2009.

60.19 	Sec. 45. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
60.20 	to read:
60.21 		Subd. 36.Indian children. A child certified as eligible for adoption assistance 
60.22 	under this section who is protected under the Federal Indian Child Welfare Act of 1978 
60.23 	should, whenever possible, be served by the tribal governing body, tribal courts, or a 
60.24 	licensed Indian child-placing agency.

60.25 	EFFECTIVE DATE. This section is effective July 1, 2009.

60.26 	Sec. 46. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
60.27 	to read:
60.28 		Subd. 37.Administration responsibilities. (a) Subject to commissioner approval, 
60.29 	the legally responsible agency shall determine the eligibility for adoption assistance under 
60.30 	this section, and for those children determined eligible, shall further determine each child's 
60.31 	eligibility for title IV-E of the Social Security Act.
61.1 	(b) The legally responsible agency is responsible for assisting the commissioner with 
61.2 	the administration of the adoption assistance by conducting assessments, reassessments, 
61.3 	negotiations, and other activities as specified by the commissioner under this section.
61.4 	(c) The certifying agency shall notify an adoptive parent of a child's eligibility 
61.5 	for Medicaid in their state of residence. The certifying agency shall refer the adoptive 
61.6 	parent to apply for Medicaid in the financial office in their county of residence. The 
61.7 	certifying agency shall inform adoptive parents of the requirement to comply with the 
61.8 	rules of the applicable Medicaid program.

61.9 	EFFECTIVE DATE. This section is effective July 1, 2009.

61.10 	Sec. 47. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
61.11 	to read:
61.12 		Subd. 38.Procedures, requirements, and deadlines. The commissioner shall 
61.13 	specify procedures, requirements, and deadlines for the administration of adoption 
61.14 	assistance in accordance with this section. As needed, the commissioner shall review all 
61.15 	procedures, requirements, and deadlines, including the designated forms, in consultation 
61.16 	with counties, tribes, and representatives of parents, and may alter them as needed.

61.17 	EFFECTIVE DATE. This section is effective July 1, 2009.

61.18 	Sec. 48. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
61.19 	to read:
61.20 		Subd. 39.Administration of title IV-E programs. The title IV-E adoption 
61.21 	assistance program shall operate within the statute and rules set forth by the federal 
61.22 	government in the Social Security Act and Code of Federal Regulations.

61.23 	EFFECTIVE DATE. This section is effective July 1, 2009.

61.24 	Sec. 49. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
61.25 	to read:
61.26 		Subd. 40.Reporting. The commissioner shall specify required fiscal and statistical 
61.27 	reports under section 256.01, subdivision 2, paragraph (q), and other reports as necessary.

61.28 	EFFECTIVE DATE. This section is effective July 1, 2009.

61.29 	Sec. 50. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
61.30 	to read:
62.1 		Subd. 41.Promotion of programs. The commissioner or the commissioner's 
62.2 	designee shall actively seek ways to promote the adoption assistance program, including 
62.3 	informing prospective adoptive parents of eligible children under the commissioner's 
62.4 	guardianship of the availability of adoption assistance. All families who adopt children 
62.5 	under the commissioner's guardianship must be informed as to the adoption tax credit.

62.6 	EFFECTIVE DATE. This section is effective July 1, 2009.

62.7 	Sec. 51. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
62.8 	to read:
62.9 		Subd. 42.Appeals and fair hearings. (a) A prospective adoptive parent has the 
62.10 	right to appeal to the commissioner under section 256.045 when eligibility for adoption 
62.11 	assistance is denied, and when payment or the agreement for an eligible child is modified 
62.12 	or terminated.
62.13 	(b) An adoptive parent has additional rights to appeal to the commissioner under 
62.14 	section 256.045. These include when the commissioner terminates or modifies the 
62.15 	adoption assistance agreement or when the commissioner denies an application for 
62.16 	adoption assistance. A prospective adoptive parent who disagrees with a decision by the 
62.17 	commissioner prior to finalization of the adoption may request review of the decision 
62.18 	by the commissioner, or may appeal the decision under section 256.045. An adoption 
62.19 	assistance agrement must be signed and in effect prior to the court order that finalizes the 
62.20 	adoption; however, in some cases, there may be extenuating circumstances as to why an 
62.21 	agreement was not entered into prior to the adoption finalization. An adoptive parent who 
62.22 	believes that extenuating circumstances exist in the case of an adoption finalizing prior to 
62.23 	entering of an adoption assistance agreement may request a fair hearing. Parents have 
62.24 	the responsibility of proving that extenuating circumstances exist. Parents are required to 
62.25 	provide written documentation of each eligibility criterion at the fair hearing. Examples 
62.26 	of extenuating circumstances include: relevant facts regarding the child were known by 
62.27 	the placing agency and not presented to the parent prior to finalization of the adoption, or 
62.28 	failure by the commissioner or the commissioner's designee to advise a potential parent 
62.29 	about the availability of adoption assistance for a child in the state foster care system. If 
62.30 	an appeals judge finds through the fair hearing process that extenuating circumstances 
62.31 	existed and that the child met all eligibility criteria at the time the adoption was finalized, 
62.32 	the effective date and any associated federal financial participation shall be retroactive to 
62.33 	the date of the request for a fair hearing.

62.34 	EFFECTIVE DATE. This section is effective July 1, 2009.

63.1 	Sec. 52. Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision 
63.2 	to read:
63.3 		Subd. 43.No new executions of adoption assistance agreements. After November 
63.4 	24, 2010, no new adoption assistance agreements must be executed under this section. 
63.5 	Agreements that were signed on or before November 24, 2010, and were not in effect 
63.6 	because the adoption finalization of the child did not occur on or before November 24, 
63.7 	2010, must be renegotiated according to the terms of Northstar Care for Children under 
63.8 	section 256O.001 to 256O.270. Agreements signed and in effect on or before November 
63.9 	24, 2010, must continue according to the terms of this section and applicable rules for 
63.10 	the duration of the agreement, unless the adoptive parents choose to renegotiate their 
63.11 	agreement in accordance with the terms of Northstar Care for Children. After November 
63.12 	24, 2010, this section and associated rules must apply to a child whose adoption assistance 
63.13 	agreements were in effect on or before November 24, 2010, and whose adoptive parents 
63.14 	have chosen not to renegotiate their agreement according to the terms of Northstar Care 
63.15 	for Children.

63.16 	EFFECTIVE DATE. This section is effective July 1, 2009.

63.17 	Sec. 53. Minnesota Statutes 2008, section 260B.441, is amended to read:
63.18 	260B.441 COST, PAYMENT FOR FOSTER CARE, RESIDENTIAL 
63.19 	PLACEMENT, AND CLOTHING ALLOWANCE.
63.20 		Subdivision 1.Responsibility for placement costs. In addition to the usual 
63.21 	care and services given by public and private agencies, the necessary cost incurred by 
63.22 	the commissioner of human services in providing care for such child shall be paid by 
63.23 	the county committing such child which, subject to uniform rules established by the 
63.24 	commissioner of human services, may receive a reimbursement not exceeding one-half of 
63.25 	such costs from funds made available for this purpose by the legislature during the period 
63.26 	beginning July 1, 1985, and ending December 31, 1985. Beginning January 1, 1986, the 
63.27 	necessary cost incurred by the commissioner of human services in providing care for the 
63.28 	child must be paid by the county committing the child.Chapter 256O establishes the 
63.29 	responsibility for cost and payment for eligible children placed  in permanent placement 
63.30 	with a relative custodian or adoptive parent. Responsibility for placement costs and 
63.31 	payment in any other setting is with the county, consistent with chapter 256G, or the tribes 
63.32 	authorized in section 256.01, subdivision 14b.
63.33 		Subd. 2.Federal title IV-E. Foster care maintenance payments under title IV-E of 
63.34 	the Social Security Act are defined in subdivisions 4 and 5 and section 256O.020. Every 
64.1 	effort must be made to establish a child's eligibility for title IV-E, using the criteria in the 
64.2 	Social Security Act, United States Code, title 42, sections 670 to 676. Payment of title 
64.3 	IV-E funds in Northstar Care for Children is specified in section 256O.260. In all other 
64.4 	circumstances, the county or tribal agency authorized in section 256.01, subdivision 14b, 
64.5 	responsible for payment of the maintenance costs must be reimbursed from the federal 
64.6 	funds available for the purpose.
64.7 		Subd. 3.Child resources. Where such When a child is eligible to receive a grant of 
64.8 	Minnesota family investment program Retirement, Survivors, and Disability Insurance 
64.9 	(RSDI), or Supplemental Security Income for the aged, blind, and disabled, or a foster 
64.10 	care maintenance payment under title IV-E of the Social Security Act, United States Code, 
64.11 	title 42, sections 670 to 676, the child's needs shall be met through these programs.
64.12 		Subd. 4.Group residential maintenance payments. When a child is placed in 
64.13 	a group residential setting, foster care maintenance payments are payments made on 
64.14 	behalf of a child to cover the cost of providing food, clothing, shelter, daily supervision, 
64.15 	school supplies, child's personal incidentals, and transportation needs associated with 
64.16 	providing the items listed, including transportation to the child's home for visitation. 
64.17 	Daily supervision in group residential settings includes routine day-to-day direction 
64.18 	and arrangements to ensure the well-being and safety of the child. It may also include 
64.19 	reasonable costs of administration and operation of the facility.
64.20 		Subd. 5.Initial clothing allowance. An initial clothing allowance must be available 
64.21 	to all children placed in group residential settings based on the child's individual needs 
64.22 	during the first 60 days of the initial placement. The agency shall consider the parent's 
64.23 	ability to provide for the child's clothing needs and the residential facility contracts. A 
64.24 	clothing allowance must be approved that is consistent with the child's needs. The amount 
64.25 	of the initial clothing allowance must not exceed the monthly basic rate for the child's age 
64.26 	group under section 256O.260.

64.27 	EFFECTIVE DATE. This section is effective January 1, 2011.

64.28 	Sec. 54. Minnesota Statutes 2008, section 260C.331, subdivision 1, is amended to read:
64.29 		Subdivision 1.Care, examination, or treatment. (a) Except where parental rights 
64.30 	are terminated,
64.31 	(1) whenever legal custody of a child is transferred by the court to a responsible 
64.32 	social services agency,
64.33 	(2) whenever legal custody is transferred to a person other than the responsible social 
64.34 	services agency, but under the supervision of the responsible social services agency, or
65.1 	(3) whenever a child is given physical or mental examinations or treatment under 
65.2 	order of the court, and no provision is otherwise made by law for payment for the care, 
65.3 	examination, or treatment of the child, these costs are a charge upon the welfare funds of 
65.4 	the county in which proceedings are held upon certification of the judge of juvenile court.
65.5 	(b) The court shall order, and the responsible social services agency shall require, 
65.6 	the parents or custodian of a child, while the child is under the age of 18, to use the 
65.7 	total income and resources attributable to the child for the period of care, examination, 
65.8 	or treatment, except for clothing and personal needs allowance as provided in section 
65.9 	256B.35, to reimburse the county for the cost of care, examination, or treatment. Income 
65.10 	and resources attributable to the child include, but are not limited to, Social Security 
65.11 	benefits, supplemental security income (SSI), veterans benefits, railroad retirement 
65.12 	benefits and child support. When the child is over the age of 18, and continues to receive 
65.13 	care, examination, or treatment, the court shall order, and the responsible social services 
65.14 	agency shall require, reimbursement from the child for the cost of care, examination, or 
65.15 	treatment from the income and resources attributable to the child less the clothing and 
65.16 	personal needs allowance. Income does not include earnings from a child over the age 
65.17 	of 18 who is working as part of a plan under section 260C.212, subdivision 1, paragraph 
65.18 	(c), clause (8), to transition from foster care or income and resources from sources other 
65.19 	than Supplemental Security Income (SSI) and child support necessary to complete the 
65.20 	requirements in section 260C.212, subdivision 7, paragraph (d), clause (2), as determined 
65.21 	by the court.
65.22 	(c) If the income and resources attributable to the child are not enough to reimburse 
65.23 	the county for the full cost of the care, examination, or treatment, the court shall inquire 
65.24 	into the ability of the parents to support the child and, after giving the parents a reasonable 
65.25 	opportunity to be heard, the court shall order, and the responsible social services agency 
65.26 	shall require, the parents to contribute to the cost of care, examination, or treatment of 
65.27 	the child. When determining the amount to be contributed by the parents, the court shall 
65.28 	use a fee schedule based upon ability to pay that is established by the responsible social 
65.29 	services agency and approved by the commissioner of human services. The income of 
65.30 	a stepparent who has not adopted a child shall be excluded in calculating the parental 
65.31 	contribution under this section.
65.32 	(d) The court shall order the amount of reimbursement attributable to the parents 
65.33 	or custodian, or attributable to the child, or attributable to both sources, withheld under 
65.34 	chapter 518A from the income of the parents or the custodian of the child. A parent or 
65.35 	custodian who fails to pay without good reason may be proceeded against for contempt, or 
66.1 	the court may inform the county attorney, who shall proceed to collect the unpaid sums, 
66.2 	or both procedures may be used.
66.3 	(e) If the court orders a physical or mental examination for a child, the examination 
66.4 	is a medically necessary service for purposes of determining whether the service is 
66.5 	covered by a health insurance policy, health maintenance contract, or other health 
66.6 	coverage plan. Court-ordered treatment shall be subject to policy, contract, or plan 
66.7 	requirements for medical necessity. Nothing in this paragraph changes or eliminates 
66.8 	benefit limits, conditions of coverage, co-payments or deductibles, provider restrictions, 
66.9 	or other requirements in the policy, contract, or plan that relate to coverage of other 
66.10 	medically necessary services.

66.11 	Sec. 55. Minnesota Statutes 2008, section 260C.441, is amended to read:
66.12 	260C.441 COST, PAYMENT FOR FOSTER CARE, RESIDENTIAL 
66.13 	PLACEMENT, AND CLOTHING ALLOWANCE.
66.14 		Subdivision 1.Responsibility for placement cost. In addition to the usual care 
66.15 	and services given by public and private agencies, the necessary cost incurred by the 
66.16 	commissioner of human services in providing care for such child shall be paid by 
66.17 	the county committing such child which, subject to uniform rules established by the 
66.18 	commissioner of human services, may receive a reimbursement not exceeding one-half of 
66.19 	such costs from funds made available for this purpose by the legislature during the period 
66.20 	beginning July 1, 1985, and ending December 31, 1985. Beginning January 1, 1986, the 
66.21 	necessary cost incurred by the commissioner of human services in providing care for the 
66.22 	child must be paid by the county committing the child.Chapter 256O establishes the cost 
66.23 	and payment for eligible children placed in family foster care settings or in permanent 
66.24 	placement with a relative custodian or adoptive parent. Placement costs and payment in 
66.25 	any other setting are the responsibility of the county, consistent with chapter 256G, or 
66.26 	tribes authorized in section 256.01, subdivision 14b.
66.27 		Subd. 2.Federal title IV-E. Foster care maintenance payments under title IV-E 
66.28 	of the Social Security Act are defined in subdivisions 4 and 5, and section 256O.020. 
66.29 	Every effort shall be made to establish a child's eligibility for title IV-E, using the criteria 
66.30 	in the Social Security Act, United States Code, title 42, sections 670 to 676. The use of 
66.31 	title IV-E funds in Northstar Care for Children is specified in section 256O.260. In all 
66.32 	other circumstances, the county or tribal agency authorized in section 256.01, subdivision 
66.33 	14b, that is responsible for payment of the maintenance costs must be reimbursed from 
66.34 	the federal funds available for the purpose. 
67.1 		Subd. 3.Child resources. Where such When a child in foster care is eligible 
67.2 	to receive a grant of Minnesota family investment program or Retirement, Survivors 
67.3 	Disability Insurance (RSDI), supplemental security income for the aged, blind, and 
67.4 	disabled, or a foster care maintenance payment under title IV-E of the Social Security Act, 
67.5 	United States Code, title 42, sections 670 to 676, the child's needs shall be met through 
67.6 	these programs.
67.7 		Subd. 4.Group residential maintenance payments. When a child is placed in 
67.8 	a group residential setting, foster care maintenance payments means payments to cover 
67.9 	the cost of a child's food, clothing, shelter, daily supervision, school supplies, personal 
67.10 	incidentals, recreation, and transportation needs associated with providing the items 
67.11 	listed, including transportation to school and to the child's home for visitation. Foster 
67.12 	care maintenance payments may also include reasonable costs of administration and 
67.13 	operation of the facility.
67.14 		Subd. 5.Initial clothing allowance. An initial clothing allowance shall be available 
67.15 	to all children eligible for Northstar Care for Children under section 256O.210 and foster 
67.16 	children placed in group residential settings based on the child's individual needs during 
67.17 	the first 60 days of the initial placement. The agency must consider the parent's ability to 
67.18 	provide for their child's clothing needs and the residential facility contracts. A clothing 
67.19 	allowance shall be approved that is consistent with the child's needs. The amount of 
67.20 	the initial clothing allowance shall not exceed the monthly basic rate for the child's age 
67.21 	group under section 256O.260.

67.22 	EFFECTIVE DATE. This section is effective January 1, 2011.

67.23 	Sec. 56.  REPEALER.
 67.24 	(a) Minnesota Statutes 2008, sections 256.82, subdivision 5; and 257.85, are 
67.25 	repealed effective January 1, 2011.
67.26 	(b) Minnesota Statutes 2008, section 259.67, subdivisions 1, 2, 3, 3a, 4, 5, 6, 7, 8, 9, 
67.27 	and 10, are repealed effective July 1, 2009.
67.28 	(c) Minnesota Rules, part 9560.0665, subparts 2, 3, 4, 5, 6, 7, 8, and 9, are repealed 
67.29 	effective January 1, 2011.
67.30 	(d) Minnesota Rules, parts 9560.0071; 9560.0081; 9560.0082; 9560.0083; 
67.31 	9560.0091; 9560.0093, subparts 1, 3, and 4; 9560.0101; and 9560.0102, are repealed 
67.32 	effective July 1, 2009.