1.1 	A bill for an act
1.2 	relating to human services; modifying provisions to promote the safe and healthy 
1.3 	development of children; modifying provisions related to child care programs, 
1.4 	human services licensing, background studies, foster care, and the Minnesota 
1.5 	family investment program; establishing Northstar Care for Children;amending 
1.6 	Minnesota Statutes 2012, sections 119B.011, by adding a subdivision; 119B.02, 
1.7 	by adding a subdivision; 119B.025, subdivision 1; 119B.03, subdivision 4; 
1.8 	119B.05, subdivision 1; 119B.13, subdivisions 1, 1a, 6, by adding subdivisions; 
1.9 	245A.07, subdivision 2a; 245A.1435; 245A.144; 245A.1444; 245A.40, 
1.10 	subdivision 5; 245A.50; 245C.08, subdivision 1; 245C.33, subdivision 1; 
1.11 	256.0112, by adding a subdivision; 256.82, subdivisions 2, 3; 256.98, subdivision 
1.12 	8; 256J.08, subdivision 24; 256J.21, subdivisions 2, 3; 256J.24, subdivisions 3, 
1.13 	7; 256J.621; 256J.626, subdivision 7; 257.85, subdivisions 2, 5, 6; 260C.446; 
1.14 	proposing coding for new law in Minnesota Statutes, chapters 245A; 256J; 
1.15 	259A; 260C; proposing coding for new law as Minnesota Statutes, chapter 
1.16 	256N; repealing Minnesota Statutes 2012, sections 256.82, subdivision 4; 
1.17 	256J.24, subdivision 10; 260C.441; Minnesota Rules, parts 3400.0130, subpart 
1.18 	8; 9502.0355, subpart 4; 9560.0650, subparts 1, 3, 6; 9560.0651; 9560.0655.
1.19 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.20 	Section 1. Minnesota Statutes 2012, section 119B.011, is amended by adding a 
1.21 	subdivision to read:
1.22 		Subd. 19b.Student parent. "Student parent" means a person who is:
1.23 	(1) under 21 years of age and has a child;
1.24 	(2) pursuing a high school or general equivalency diploma;
1.25 	(3) residing within a county that has a basic sliding fee waiting list under section 
1.26 	119B.03, subdivision 4; and
1.27 	(4) not an MFIP participant.

1.28 	EFFECTIVE DATE. This section is effective November 11, 2013.

2.1 	Sec. 2. Minnesota Statutes 2012, section 119B.02, is amended by adding a subdivision 
2.2 	to read:
2.3 		Subd. 7.Child care market rate survey. Biennially, the commissioner shall survey 
2.4 	prices charged by child care providers in Minnesota to determine the 75th percentile for 
2.5 	like-care arrangements in county price clusters.

2.6 	EFFECTIVE DATE. This section is effective September 16, 2013.

2.7 	Sec. 3. Minnesota Statutes 2012, section 119B.025, subdivision 1, is amended to read:
2.8 		Subdivision 1.Factors which must be verified. (a) The county shall verify the 
2.9 	following at all initial child care applications using the universal application:
2.10 	(1) identity of adults;
2.11 	(2) presence of the minor child in the home, if questionable;
2.12 	(3) relationship of minor child to the parent, stepparent, legal guardian, eligible 
2.13 	relative caretaker, or the spouses of any of the foregoing;
2.14 	(4) age;
2.15 	(5) immigration status, if related to eligibility;
2.16 	(6) Social Security number, if given;
2.17 	(7) income;
2.18 	(8) spousal support and child support payments made to persons outside the 
2.19 	household;
2.20 	(9) residence; and
2.21 	(10) inconsistent information, if related to eligibility.
2.22 	(b) If a family did not use the universal application or child care addendum to apply 
2.23 	for child care assistance, the family must complete the universal application or child care 
2.24 	addendum at its next eligibility redetermination and the county must verify the factors 
2.25 	listed in paragraph (a) as part of that redetermination. Once a family has completed a 
2.26 	universal application or child care addendum, the county shall use the redetermination 
2.27 	form described in paragraph (c) for that family's subsequent redeterminations. Eligibility 
2.28 	must be redetermined at least every six months. A family is considered to have met the 
2.29 	eligibility redetermination requirement if a complete redetermination form and all required 
2.30 	verifications are received within 30 days after the date the form was due. Assistance shall 
2.31 	be payable retroactively from the redetermination due date. For a family where at least 
2.32 	one parent is under the age of 21, does not have a high school or general equivalency 
2.33 	diploma, and is a student in a school district or another similar program that provides or 
2.34 	arranges for child care, as well as parenting, social services, career and employment 
2.35 	supports, and academic support to achieve high school graduation, the redetermination of 
3.1 	eligibility shall be deferred beyond six months, but not to exceed 12 months, to the end of 
3.2 	the student's school year. If a family reports a change in an eligibility factor before the 
3.3 	family's next regularly scheduled redetermination, the county must recalculate eligibility 
3.4 	without requiring verification of any eligibility factor that did not change.
3.5 	(c) The commissioner shall develop a redetermination form to redetermine eligibility 
3.6 	and a change report form to report changes that minimize paperwork for the county and 
3.7 	the participant.

3.8 	EFFECTIVE DATE. This section is effective August 4, 2014.

3.9 	Sec. 4. Minnesota Statutes 2012, section 119B.03, subdivision 4, is amended to read:
3.10 		Subd. 4.Funding priority. (a) First priority for child care assistance under the 
3.11 	basic sliding fee program must be given to eligible non-MFIP families who do not have a 
3.12 	high school or general equivalency diploma or who need remedial and basic skill courses 
3.13 	in order to pursue employment or to pursue education leading to employment and who 
3.14 	need child care assistance to participate in the education program. This includes student 
3.15 	parents as defined under section 119B.011, subdivision 19b. Within this priority, the 
3.16 	following subpriorities must be used:
3.17 	(1) child care needs of minor parents;
3.18 	(2) child care needs of parents under 21 years of age; and
3.19 	(3) child care needs of other parents within the priority group described in this 
3.20 	paragraph.
3.21 	(b) Second priority must be given to parents who have completed their MFIP or 
3.22 	DWP transition year, or parents who are no longer receiving or eligible for diversionary 
3.23 	work program supports.
3.24 	(c) Third priority must be given to families who are eligible for portable basic sliding 
3.25 	fee assistance through the portability pool under subdivision 9.
3.26 	(d) Fourth priority must be given to families in which at least one parent is a veteran 
3.27 	as defined under section 197.447.
3.28 	(e) Families under paragraph (b) must be added to the basic sliding fee waiting list 
3.29 	on the date they begin the transition year under section 119B.011, subdivision 20, and 
3.30 	must be moved into the basic sliding fee program as soon as possible after they complete 
3.31 	their transition year.

3.32 	EFFECTIVE DATE. This section is effective November 11, 2013.

3.33 	Sec. 5. Minnesota Statutes 2012, section 119B.05, subdivision 1, is amended to read:
4.1 		Subdivision 1.Eligible participants. Families eligible for child care assistance 
4.2 	under the MFIP child care program are:
4.3 	(1) MFIP participants who are employed or in job search and meet the requirements 
4.4 	of section 119B.10;
4.5 	(2) persons who are members of transition year families under section 119B.011, 
4.6 	subdivision 20, and meet the requirements of section 119B.10;
4.7 	(3) families who are participating in employment orientation or job search, or 
4.8 	other employment or training activities that are included in an approved employability 
4.9 	development plan under section 256J.95;
4.10 	(4) MFIP families who are participating in work job search, job support, 
4.11 	employment, or training activities as required in their employment plan, or in appeals, 
4.12 	hearings, assessments, or orientations according to chapter 256J;
4.13 	(5) MFIP families who are participating in social services activities under chapter 
4.14 	256J as required in their employment plan approved according to chapter 256J;
4.15 	(6) families who are participating in services or activities that are included in an 
4.16 	approved family stabilization plan under section 256J.575;
4.17 	(7) families who are participating in programs as required in tribal contracts under 
4.18 	section 119B.02, subdivision 2, or 256.01, subdivision 2; and
4.19 	(8) families who are participating in the transition year extension under section 
4.20 	119B.011, subdivision 20a.; and
4.21 	(9) student parents as defined under section 119B.011, subdivision 19b.

4.22 	EFFECTIVE DATE. This section is effective November 11, 2013.

4.23 	Sec. 6. Minnesota Statutes 2012, section 119B.13, subdivision 1, is amended to read:
4.24 		Subdivision 1.Subsidy restrictions. (a) Beginning October 31, 2011 September 16, 
4.25 	2013, the maximum rate paid for child care assistance in any county or multicounty region
4.26 	 county price cluster under the child care fund shall be the rate for like-care arrangements in 
4.27 	the county effective July 1, 2006, decreased by 2.5 percent greater of the 25th percentile of 
4.28 	the 2011 child care provider rate survey or the maximum rate effective November 28, 2011. 
4.29 	The commissioner may: (1) assign a county with no reported provider prices to a similar 
4.30 	price cluster; and (2) consider county level access when determining final price clusters.
4.31 	(b) Biennially, beginning in 2012, the commissioner shall survey rates charged 
4.32 	by child care providers in Minnesota to determine the 75th percentile for like-care 
4.33 	arrangements in counties. When the commissioner determines that, using the 
4.34 	commissioner's established protocol, the number of providers responding to the survey is 
4.35 	too small to determine the 75th percentile rate for like-care arrangements in a county or 
5.1 	multicounty region, the commissioner may establish the 75th percentile maximum rate 
5.2 	based on like-care arrangements in a county, region, or category that the commissioner 
5.3 	deems to be similar.
5.4 	(c) (b) A rate which includes a special needs rate paid under subdivision 3 or under a 
5.5 	school readiness service agreement paid under section 119B.231, may be in excess of the 
5.6 	maximum rate allowed under this subdivision.
5.7 	(d) (c) The department shall monitor the effect of this paragraph on provider rates. 
5.8 	The county shall pay the provider's full charges for every child in care up to the maximum 
5.9 	established. The commissioner shall determine the maximum rate for each type of care 
5.10 	on an hourly, full-day, and weekly basis, including special needs and disability care. The 
5.11 	maximum payment to a provider for one day of care must not exceed the daily rate. The 
5.12 	maximum payment to a provider for one week of care must not exceed the weekly rate.
5.13 	(e) (d) Child care providers receiving reimbursement under this chapter must not 
5.14 	be paid activity fees or an additional amount above the maximum rates for care provided 
5.15 	during nonstandard hours for families receiving assistance.
5.16 	(f) (e) When the provider charge is greater than the maximum provider rate allowed, 
5.17 	the parent is responsible for payment of the difference in the rates in addition to any 
5.18 	family co-payment fee.
5.19 	(g) (f) All maximum provider rates changes shall be implemented on the Monday 
5.20 	following the effective date of the maximum provider rate.
5.21 	(g) Notwithstanding Minnesota Rules, part 3400.0130, subpart 7, maximum 
5.22 	registration fees in effect on January 1, 2013, shall remain in effect.

5.23 	Sec. 7. Minnesota Statutes 2012, section 119B.13, subdivision 1a, is amended to read:
5.24 		Subd. 1a.Legal nonlicensed family child care provider rates. (a) Legal 
5.25 	nonlicensed family child care providers receiving reimbursement under this chapter must 
5.26 	be paid on an hourly basis for care provided to families receiving assistance.
5.27 	(b) The maximum rate paid to legal nonlicensed family child care providers must be 
5.28 	68 percent of the county maximum hourly rate for licensed family child care providers. In 
5.29 	counties or county price clusters where the maximum hourly rate for licensed family child 
5.30 	care providers is higher than the maximum weekly rate for those providers divided by 50, 
5.31 	the maximum hourly rate that may be paid to legal nonlicensed family child care providers 
5.32 	is the rate equal to the maximum weekly rate for licensed family child care providers 
5.33 	divided by 50 and then multiplied by 0.68. The maximum payment to a provider for one 
5.34 	day of care must not exceed the maximum hourly rate times ten. The maximum payment 
5.35 	to a provider for one week of care must not exceed the maximum hourly rate times 50.
6.1 	(c) A rate which includes a special needs rate paid under subdivision 3 may be in 
6.2 	excess of the maximum rate allowed under this subdivision.
6.3 	(d) Legal nonlicensed family child care providers receiving reimbursement under 
6.4 	this chapter may not be paid registration fees for families receiving assistance.

6.5 	EFFECTIVE DATE. This section is effective September 16, 2013.

6.6 	Sec. 8. Minnesota Statutes 2012, section 119B.13, is amended by adding a subdivision 
6.7 	to read:
6.8 		Subd. 3b.Provider rate differential for Parent Aware. A family child care 
6.9 	provider or child care center shall be paid a 15 percent differential if they hold a three-star 
6.10 	Parent Aware rating or a 20 percent differential if they hold a four-star Parent Aware 
6.11 	rating. A 15 percent or 20 percent rate differential must be paid above the maximum rate 
6.12 	established in subdivision 1, up to the actual provider rate.

6.13 	EFFECTIVE DATE. This section is effective March 3, 2014.

6.14 	Sec. 9. Minnesota Statutes 2012, section 119B.13, is amended by adding a subdivision 
6.15 	to read:
6.16 		Subd. 3c.Weekly rate paid for children attending high-quality care. A licensed 
6.17 	child care provider or license-exempt center may be paid up to the applicable weekly 
6.18 	maximum rate, not to exceed the provider's actual charge, when the following conditions 
6.19 	are met:
6.20 	(1) the child is age birth to five years, but not yet in kindergarten;
6.21 	(2) the child attends a child care provider that qualifies for the rate differential 
6.22 	identified in subdivision 3a or 3b; and
6.23 	(3) the applicant's activities qualify for at least 30 hours of care per week under 
6.24 	sections 119B.03, 119B.05, 119B.10, and Minnesota Rules, chapter 3400.

6.25 	EFFECTIVE DATE. This section is effective August 4, 2014.

6.26 	Sec. 10. Minnesota Statutes 2012, section 119B.13, subdivision 6, is amended to read:
6.27 		Subd. 6.Provider payments. (a) The provider shall bill for services provided 
6.28 	within ten days of the end of the service period. If bills are submitted within ten days of 
6.29 	the end of the service period, payments under the child care fund shall be made within 30 
6.30 	days of receiving a bill from the provider. Counties or the state may establish policies that 
6.31 	make payments on a more frequent basis.
7.1 	(b) If a provider has received an authorization of care and been issued a billing form 
7.2 	for an eligible family, the bill must be submitted within 60 days of the last date of service on 
7.3 	the bill. A bill submitted more than 60 days after the last date of service must be paid if the 
7.4 	county determines that the provider has shown good cause why the bill was not submitted 
7.5 	within 60 days. Good cause must be defined in the county's child care fund plan under 
7.6 	section 119B.08, subdivision 3, and the definition of good cause must include county error. 
7.7 	Any bill submitted more than a year after the last date of service on the bill must not be paid.
7.8 	(c) If a provider provided care for a time period without receiving an authorization 
7.9 	of care and a billing form for an eligible family, payment of child care assistance may only 
7.10 	be made retroactively for a maximum of six months from the date the provider is issued 
7.11 	an authorization of care and billing form.
7.12 	(d) A county may refuse to issue a child care authorization to a licensed or legal 
7.13 	nonlicensed provider, revoke an existing child care authorization to a licensed or legal 
7.14 	nonlicensed provider, stop payment issued to a licensed or legal nonlicensed provider, or 
7.15 	refuse to pay a bill submitted by a licensed or legal nonlicensed provider if:
7.16 	(1) the provider admits to intentionally giving the county materially false information 
7.17 	on the provider's billing forms;
7.18 	(2) a county finds by a preponderance of the evidence that the provider intentionally 
7.19 	gave the county materially false information on the provider's billing forms;
7.20 	(3) the provider is in violation of child care assistance program rules, until the 
7.21 	agency determines those violations have been corrected;
7.22 	(4) the provider is operating after receipt of an order of suspension or an order 
7.23 	of revocation of the provider's license, or the provider has been issued an order citing 
7.24 	violations of licensing standards that affect the health and safety of children in care due to 
7.25 	the nature, chronicity, or severity of the licensing violations, until the licensing agency 
7.26 	determines those violations have been corrected;
7.27 	(5) the provider submits false attendance reports or refuses to provide documentation 
7.28 	of the child's attendance upon request; or
7.29 	(6) the provider gives false child care price information.
7.30 	The county may withhold the provider's authorization or payment for a period of 
7.31 	time not to exceed three months beyond the time the condition has been corrected.
7.32 	(e) A county's payment policies must be included in the county's child care plan 
7.33 	under section 119B.08, subdivision 3. If payments are made by the state, in addition to 
7.34 	being in compliance with this subdivision, the payments must be made in compliance 
7.35 	with section 16A.124.

7.36 	EFFECTIVE DATE. This section is effective February 3, 2014.

8.1 	Sec. 11. Minnesota Statutes 2012, section 245A.07, subdivision 2a, is amended to read:
8.2 		Subd. 2a.Immediate suspension expedited hearing. (a) Within five working days 
8.3 	of receipt of the license holder's timely appeal, the commissioner shall request assignment 
8.4 	of an administrative law judge. The request must include a proposed date, time, and place 
8.5 	of a hearing. A hearing must be conducted by an administrative law judge within 30 
8.6 	calendar days of the request for assignment, unless an extension is requested by either 
8.7 	party and granted by the administrative law judge for good cause. The commissioner shall 
8.8 	issue a notice of hearing by certified mail or personal service at least ten working days 
8.9 	before the hearing. The scope of the hearing shall be limited solely to the issue of whether 
8.10 	the temporary immediate suspension should remain in effect pending the commissioner's 
8.11 	final order under section 245A.08, regarding a licensing sanction issued under subdivision 
8.12 	3 following the immediate suspension. The burden of proof in expedited hearings under 
8.13 	this subdivision shall be limited to the commissioner's demonstration that reasonable 
8.14 	cause exists to believe that the license holder's actions or failure to comply with applicable 
8.15 	law or rule poses, or if the actions of other individuals or conditions in the program poses 
8.16 	an imminent risk of harm to the health, safety, or rights of persons served by the program. 
8.17 	"Reasonable cause" means there exist specific articulable facts or circumstances which 
8.18 	provide the commissioner with a reasonable suspicion that there is an imminent risk of harm 
8.19 	to the health, safety, or rights of persons served by the program. When the commissioner 
8.20 	has determined there is reasonable cause to order the temporary immediate suspension of 
8.21 	a license based on a violation of safe sleep requirements, the commissioner is not required 
8.22 	to demonstrate that an infant died or was injured as a result of the safe sleep violations.
8.23 	(b) The administrative law judge shall issue findings of fact, conclusions, and a 
8.24 	recommendation within ten working days from the date of hearing. The parties shall have 
8.25 	ten calendar days to submit exceptions to the administrative law judge's report. The 
8.26 	record shall close at the end of the ten-day period for submission of exceptions. The 
8.27 	commissioner's final order shall be issued within ten working days from the close of the 
8.28 	record. Within 90 calendar days after a final order affirming an immediate suspension, the 
8.29 	commissioner shall make a determination regarding whether a final licensing sanction 
8.30 	shall be issued under subdivision 3. The license holder shall continue to be prohibited 
8.31 	from operation of the program during this 90-day period.
8.32 	(c) When the final order under paragraph (b) affirms an immediate suspension, and a 
8.33 	final licensing sanction is issued under subdivision 3 and the license holder appeals that 
8.34 	sanction, the license holder continues to be prohibited from operation of the program 
8.35 	pending a final commissioner's order under section 245A.08, subdivision 5, regarding the 
8.36 	final licensing sanction.

9.1 	Sec. 12. Minnesota Statutes 2012, section 245A.1435, is amended to read:
9.2 	245A.1435 REDUCTION OF RISK OF SUDDEN UNEXPECTED INFANT 
9.3 	DEATH SYNDROME IN LICENSED PROGRAMS.
9.4 	(a) When a license holder is placing an infant to sleep, the license holder must 
9.5 	place the infant on the infant's back, unless the license holder has documentation from 
9.6 	the infant's parent physician directing an alternative sleeping position for the infant. The 
9.7 	parent physician directive must be on a form approved by the commissioner and must 
9.8 	include a statement that the parent or legal guardian has read the information provided by 
9.9 	the Minnesota Sudden Infant Death Center, related to the risk of SIDS and the importance 
9.10 	of placing an infant or child on its back to sleep to reduce the risk of SIDS remain on file 
9.11 	at the licensed location. An infant who independently rolls onto its stomach after being 
9.12 	placed to sleep on its back may be allowed to remain sleeping on its stomach.
9.13 	(b) The license holder must place the infant in a crib directly on a firm mattress with 
9.14 	a fitted crib sheet that fits tightly on the mattress and overlaps the mattress so it cannot be 
9.15 	dislodged by pulling on the corner of the sheet. The license holder must not place pillows, 
9.16 	quilts, comforters, sheepskin, pillow-like stuffed toys, any loose bedding including but 
9.17 	not limited to blankets and sheets, or other soft products in the crib with the infant. The 
9.18 	requirements of this section apply to license holders serving infants up to and including 
9.19 	12 months of age. Licensed child care providers must meet the crib requirements under 
9.20 	section 245A.146.
9.21 	(c) If an infant falls asleep before being placed in a crib, the license holder must 
9.22 	move the infant to a crib as soon as practicable, and must keep the infant within sight of 
9.23 	the license holder until the infant is placed in a crib. When an infant falls asleep while 
9.24 	being held, the license holder must consider the supervision needs of other children in 
9.25 	care when determining how long to hold the infant before placing the infant in a crib to 
9.26 	sleep. The sleeping infant must not be in a position where the airway may be blocked or 
9.27 	with anything covering the infant's face.

9.28 	Sec. 13. Minnesota Statutes 2012, section 245A.144, is amended to read:
9.29 	245A.144 TRAINING ON RISK OF SUDDEN UNEXPECTED INFANT 
9.30 	DEATH AND SHAKEN BABY SYNDROME ABUSIVE HEAD TRAUMA FOR 
9.31 	CHILD FOSTER CARE PROVIDERS.
9.32 	(a) Licensed child foster care providers that care for infants or children through five 
9.33 	years of age must document that before staff persons and caregivers assist in the care 
9.34 	of infants or children through five years of age, they are instructed on the standards in 
9.35 	section 245A.1435 and receive training on reducing the risk of sudden unexpected infant 
10.1 	death syndrome and shaken baby syndrome for abusive head trauma from shaking infants 
10.2 	and young children. This section does not apply to emergency relative placement under 
10.3 	section 245A.035. The training on reducing the risk of sudden unexpected infant death 
10.4 	syndrome and shaken baby syndrome abusive head trauma may be provided as:
10.5 	(1) orientation training to child foster care providers, who care for infants or children 
10.6 	through five years of age, under Minnesota Rules, part 2960.3070, subpart 1; or
10.7 	(2) in-service training to child foster care providers, who care for infants or children 
10.8 	through five years of age, under Minnesota Rules, part 2960.3070, subpart 2.
10.9 	(b) Training required under this section must be at least one hour in length and must 
10.10 	be completed at least once every five years. At a minimum, the training must address 
10.11 	the risk factors related to sudden unexpected infant death syndrome and shaken baby 
10.12 	syndrome abusive head trauma, means of reducing the risk of sudden unexpected infant 
10.13 	death syndrome and shaken baby syndrome abusive head trauma, and license holder 
10.14 	communication with parents regarding reducing the risk of sudden unexpected infant 
10.15 	death syndrome and shaken baby syndrome abusive head trauma.
10.16 	(c) Training for child foster care providers must be approved by the county or 
10.17 	private licensing agency that is responsible for monitoring the child foster care provider 
10.18 	under section 245A.16. The approved training fulfills, in part, training required under 
10.19 	Minnesota Rules, part 2960.3070.

10.20 	Sec. 14. Minnesota Statutes 2012, section 245A.1444, is amended to read:
10.21 	245A.1444 TRAINING ON RISK OF SUDDEN UNEXPECTED INFANT 
10.22 	DEATH SYNDROME AND SHAKEN BABY SYNDROME ABUSIVE HEAD 
10.23 	TRAUMA BY OTHER PROGRAMS.
10.24 	A licensed chemical dependency treatment program that serves clients with infants 
10.25 	or children through five years of age, who sleep at the program and a licensed children's 
10.26 	residential facility that serves infants or children through five years of age, must document 
10.27 	that before program staff persons or volunteers assist in the care of infants or children 
10.28 	through five years of age, they are instructed on the standards in section 245A.1435 and 
10.29 	receive training on reducing the risk of sudden unexpected infant death syndrome and 
10.30 	shaken baby syndrome abusive head trauma from shaking infants and young children. The 
10.31 	training conducted under this section may be used to fulfill training requirements under 
10.32 	Minnesota Rules, parts 2960.0100, subpart 3; and 9530.6490, subpart 4, item B.
10.33 	This section does not apply to child care centers or family child care programs 
10.34 	governed by sections 245A.40 and 245A.50.

11.1 	Sec. 15. [245A.147] FAMILY CHILD CARE INFANT SLEEP SUPERVISION 
11.2 	REQUIREMENTS.
11.3 		Subdivision 1.In-person checks on infants. (a) License holders that serve infants 
11.4 	must monitor sleeping infants by conducting in-person checks on each infant in their care 
11.5 	every 30 minutes.
11.6 	(b) Upon enrollment of an infant in a family child care program, the license holder 
11.7 	must conduct in-person checks on the infant every 15 minutes, during the first four 
11.8 	months of care.
11.9 	(c) When an infant has an upper respiratory infection, the license holder must 
11.10 	conduct in-person checks on the infant every 15 minutes throughout the hours of care.
11.11 		Subd. 2.Use of audio or visual monitoring devices. In addition to conducting 
11.12 	the in-person checks required under subdivision 1, license holders serving infants must 
11.13 	use and maintain an audio or visual monitoring device to monitor each infant in care 
11.14 	during all hours of care.

11.15 	Sec. 16. [245A.152] CHILD CARE LICENSE HOLDER INSURANCE.
11.16 		Subdivision 1.Insurance coverage required for child care licensure. (a) All 
11.17 	licensed family child care providers and child care centers shall maintain insurance 
11.18 	coverage for personal injury, death, or property damage resulting from any act or omission 
11.19 	related to the provision of services under the license. The coverage limits shall be at least 
11.20 	$100,000 per person and $250,000 per occurrence.
11.21 	(b) No license to provide child care shall take effect before the insurance coverage 
11.22 	required under this section becomes effective. A license shall be suspended or revoked 
11.23 	any time the insurance coverage required under this section lapses or is terminated and 
11.24 	replacement coverage has not taken effect.
11.25 	(c) A license holder shall immediately notify the commissioner if the insurance 
11.26 	coverage required under this section lapses or is terminated and no replacement coverage 
11.27 	has taken effect.
11.28 		Subd. 2.Evidence of insurance. (a) A current certificate of coverage for insurance 
11.29 	required under this section shall be posted in a place in the licensed family child care 
11.30 	home or center that is conspicuous to all visitors and parents of children receiving services 
11.31 	from the program.
11.32 	(b) A license holder shall, upon request, provide a copy of the current certificate of 
11.33 	coverage for insurance required under this section to the commissioner or to any parent 
11.34 	of a child receiving services from the licensed program.

12.1 	Sec. 17. Minnesota Statutes 2012, section 245A.40, subdivision 5, is amended to read:
12.2 		Subd. 5.Sudden unexpected infant death syndrome and shaken baby syndrome
12.3 	abusive head trauma training. (a) License holders must document that before staff 
12.4 	persons and volunteers care for infants, they are instructed on the standards in section 
12.5 	245A.1435 and receive training on reducing the risk of sudden unexpected infant death 
12.6 	syndrome. In addition, license holders must document that before staff persons care for 
12.7 	infants or children under school age, they receive training on the risk of shaken baby 
12.8 	syndrome abusive head trauma from shaking infants and young children. The training 
12.9 	in this subdivision may be provided as orientation training under subdivision 1 and 
12.10 	in-service training under subdivision 7.
12.11 	(b) Sudden unexpected infant death syndrome reduction training required under 
12.12 	this subdivision must be at least one-half hour in length and must be completed at least 
12.13 	once every five years year. At a minimum, the training must address the risk factors 
12.14 	related to sudden unexpected infant death syndrome, means of reducing the risk of sudden 
12.15 	unexpected infant death syndrome in child care, and license holder communication with 
12.16 	parents regarding reducing the risk of sudden unexpected infant death syndrome.
12.17 	(c) Shaken baby syndrome Abusive head trauma training under this subdivision 
12.18 	must be at least one-half hour in length and must be completed at least once every five 
12.19 	years year. At a minimum, the training must address the risk factors related to shaken 
12.20 	baby syndrome for shaking infants and young children, means to reduce the risk of shaken 
12.21 	baby syndrome abusive head trauma in child care, and license holder communication with 
12.22 	parents regarding reducing the risk of shaken baby syndrome abusive head trauma.
12.23 	(d) The commissioner shall make available for viewing a video presentation on the 
12.24 	dangers associated with shaking infants and young children. The video presentation must 
12.25 	be part of the orientation and annual in-service training of licensed child care center 
12.26 	staff persons caring for children under school age. The commissioner shall provide to 
12.27 	child care providers and interested individuals, at cost, copies of a video approved by the 
12.28 	commissioner of health under section 144.574 on the dangers associated with shaking 
12.29 	infants and young children.

12.30 	Sec. 18. Minnesota Statutes 2012, section 245A.50, is amended to read:
12.31 	245A.50 FAMILY CHILD CARE TRAINING REQUIREMENTS.
12.32 		Subdivision 1.Initial training. (a) License holders, caregivers, and substitutes must 
12.33 	comply with the training requirements in this section.
12.34 	(b) Helpers who assist with care on a regular basis must complete six hours of 
12.35 	training within one year after the date of initial employment.
13.1 		Subd. 2.Child growth and development and behavior guidance training. (a) For 
13.2 	purposes of family and group family child care, the license holder and each adult caregiver 
13.3 	who provides care in the licensed setting for more than 30 days in any 12-month period 
13.4 	shall complete and document at least two four hours of child growth and development 
13.5 	and behavior guidance training within the first year of prior to initial licensure, and before 
13.6 	caring for children. For purposes of this subdivision, "child growth and development 
13.7 	training" means training in understanding how children acquire language and develop 
13.8 	physically, cognitively, emotionally, and socially. "Behavior guidance training" means 
13.9 	training in the understanding of the functions of child behavior and strategies for managing 
13.10 	challenging situations. Child growth and development and behavior guidance training 
13.11 	must be repeated annually. Training curriculum shall be developed by the commissioner 
13.12 	of human services by January 1, 2014.
13.13 	(b) Notwithstanding paragraph (a), individuals are exempt from this requirement if 
13.14 	they:
13.15 	(1) have taken a three-credit course on early childhood development within the 
13.16 	past five years;
13.17 	(2) have received a baccalaureate or master's degree in early childhood education or 
13.18 	school-age child care within the past five years;
13.19 	(3) are licensed in Minnesota as a prekindergarten teacher, an early childhood 
13.20 	educator, a kindergarten to grade 6 teacher with a prekindergarten specialty, an early 
13.21 	childhood special education teacher, or an elementary teacher with a kindergarten 
13.22 	endorsement; or
13.23 	(4) have received a baccalaureate degree with a Montessori certificate within the 
13.24 	past five years.
13.25 		Subd. 3.First aid. (a) When children are present in a family child care home 
13.26 	governed by Minnesota Rules, parts 9502.0315 to 9502.0445, at least one staff person 
13.27 	must be present in the home who has been trained in first aid. The first aid training must 
13.28 	have been provided by an individual approved to provide first aid instruction. First aid 
13.29 	training may be less than eight hours and persons qualified to provide first aid training 
13.30 	include individuals approved as first aid instructors. First aid training must be repeated 
13.31 	every two years.
13.32 	(b) A family child care provider is exempt from the first aid training requirements 
13.33 	under this subdivision related to any substitute caregiver who provides less than 30 hours 
13.34 	of care during any 12-month period.
13.35 	(c) Video training reviewed and approved by the county licensing agency satisfies 
13.36 	the training requirement of this subdivision.
14.1 		Subd. 4.Cardiopulmonary resuscitation. (a) When children are present in a family 
14.2 	child care home governed by Minnesota Rules, parts 9502.0315 to 9502.0445, at least 
14.3 	one staff person must be present in the home who has been trained in cardiopulmonary 
14.4 	resuscitation (CPR) and in the treatment of obstructed airways that includes CPR 
14.5 	techniques for infants and children. The CPR training must have been provided by an 
14.6 	individual approved to provide CPR instruction, must be repeated at least once every three
14.7 	 two years, and must be documented in the staff person's records.
14.8 	(b) A family child care provider is exempt from the CPR training requirement in 
14.9 	this subdivision related to any substitute caregiver who provides less than 30 hours of 
14.10 	care during any 12-month period.
14.11 	(c) Video training reviewed and approved by the county licensing agency satisfies 
14.12 	the training requirement of this subdivision. Persons providing CPR training must use 
14.13 	CPR training that has been developed:
14.14 	(1) by the American Heart Association or the American Red Cross and incorporates 
14.15 	psychomotor skills to support the instruction; or
14.16 	(2) using nationally recognized, evidence-based guidelines for CPR training and 
14.17 	incorporates psychomotor skills to support the instruction.
14.18 		Subd. 5.Sudden unexpected infant death syndrome and shaken baby syndrome
14.19 	 abusive head trauma training. (a) License holders must document that before staff 
14.20 	persons, caregivers, and helpers assist in the care of infants, they are instructed on the 
14.21 	standards in section 245A.1435 and receive training on reducing the risk of sudden 
14.22 	unexpected infant death syndrome. In addition, license holders must document that before 
14.23 	staff persons, caregivers, and helpers assist in the care of infants and children under 
14.24 	school age, they receive training on reducing the risk of shaken baby syndrome abusive 
14.25 	head trauma from shaking infants and young children. The training in this subdivision 
14.26 	may be provided as initial training under subdivision 1 or ongoing annual training under 
14.27 	subdivision 7.
14.28 	(b) Sudden unexpected infant death syndrome reduction training required under 
14.29 	this subdivision must be at least one-half hour in length and must be completed at least 
14.30 	once every five years year. At a minimum, the training must address the risk factors 
14.31 	related to sudden unexpected infant death syndrome, means of reducing the risk of sudden 
14.32 	unexpected infant death syndrome in child care, and license holder communication with 
14.33 	parents regarding reducing the risk of sudden unexpected infant death syndrome.
14.34 	(c) Shaken baby syndrome Abusive head trauma training required under this 
14.35 	subdivision must be at least one-half hour in length and must be completed at least once 
14.36 	every five years year. At a minimum, the training must address the risk factors related 
15.1 	to shaken baby syndrome shaking infants and young children, means of reducing the 
15.2 	risk of shaken baby syndrome abusive head trauma in child care, and license holder 
15.3 	communication with parents regarding reducing the risk of shaken baby syndrome abusive 
15.4 	head trauma.
15.5 	(d) Training for family and group family child care providers must be approved 
15.6 	by the county licensing agency.
15.7 	(e) The commissioner shall make available for viewing by all licensed child care 
15.8 	providers a video presentation on the dangers associated with shaking infants and young 
15.9 	children. The video presentation shall be part of the initial and ongoing annual training of 
15.10 	licensed child care providers, caregivers, and helpers caring for children under school age. 
15.11 	The commissioner shall provide to child care providers and interested individuals, at cost, 
15.12 	copies of a video approved by the commissioner of health under section 144.574 on the 
15.13 	dangers associated with shaking infants and young children.
15.14 		Subd. 6.Child passenger restraint systems; training requirement. (a) A license 
15.15 	holder must comply with all seat belt and child passenger restraint system requirements 
15.16 	under section 169.685.
15.17 	(b) Family and group family child care programs licensed by the Department of 
15.18 	Human Services that serve a child or children under nine years of age must document 
15.19 	training that fulfills the requirements in this subdivision.
15.20 	(1) Before a license holder, staff person, caregiver, or helper transports a child or 
15.21 	children under age nine in a motor vehicle, the person placing the child or children in a 
15.22 	passenger restraint must satisfactorily complete training on the proper use and installation 
15.23 	of child restraint systems in motor vehicles. Training completed under this subdivision may 
15.24 	be used to meet initial training under subdivision 1 or ongoing training under subdivision 7.
15.25 	(2) Training required under this subdivision must be at least one hour in length, 
15.26 	completed at initial training, and repeated at least once every five years. At a minimum, 
15.27 	the training must address the proper use of child restraint systems based on the child's 
15.28 	size, weight, and age, and the proper installation of a car seat or booster seat in the motor 
15.29 	vehicle used by the license holder to transport the child or children.
15.30 	(3) Training under this subdivision must be provided by individuals who are certified 
15.31 	and approved by the Department of Public Safety, Office of Traffic Safety. License holders 
15.32 	may obtain a list of certified and approved trainers through the Department of Public 
15.33 	Safety Web site or by contacting the agency.
15.34 	(c) Child care providers that only transport school-age children as defined in section 
15.35 	245A.02, subdivision 19, paragraph (f), in child care buses as defined in section 169.448, 
15.36 	subdivision 1, paragraph (e), are exempt from this subdivision.
16.1 		Subd. 7.Training requirements for family and group family child care. For 
16.2 	purposes of family and group family child care, the license holder and each primary 
16.3 	caregiver must complete eight 16 hours of ongoing training each year. For purposes 
16.4 	of this subdivision, a primary caregiver is an adult caregiver who provides services in 
16.5 	the licensed setting for more than 30 days in any 12-month period. Repeat of topical 
16.6 	training requirements in subdivisions 2 to 7 shall count toward the annual 16-hour training 
16.7 	requirement. Additional ongoing training subjects to meet the annual 16-hour training 
16.8 	requirement must be selected from the following areas:
16.9 	(1) "child growth and development training" has the meaning given in under
16.10 	 subdivision 2, paragraph (a);
16.11 	(2) "learning environment and curriculum" includes, including training in 
16.12 	establishing an environment and providing activities that provide learning experiences to 
16.13 	meet each child's needs, capabilities, and interests;
16.14 	(3) "assessment and planning for individual needs" includes, including training in 
16.15 	observing and assessing what children know and can do in order to provide curriculum 
16.16 	and instruction that addresses their developmental and learning needs, including children 
16.17 	with special needs and bilingual children or children for whom English is not their 
16.18 	primary language;
16.19 	(4) "interactions with children" includes, including training in establishing 
16.20 	supportive relationships with children, guiding them as individuals and as part of a group;
16.21 	(5) "families and communities" includes, including training in working 
16.22 	collaboratively with families and agencies or organizations to meet children's needs and to 
16.23 	encourage the community's involvement;
16.24 	(6) "health, safety, and nutrition" includes, including training in establishing and 
16.25 	maintaining an environment that ensures children's health, safety, and nourishment, 
16.26 	including child abuse, maltreatment, prevention, and reporting; home and fire safety; child 
16.27 	injury prevention; communicable disease prevention and control; first aid; and CPR; and
16.28 	(7) "program planning and evaluation" includes, including training in establishing, 
16.29 	implementing, evaluating, and enhancing program operations.
16.30 		Subd. 8.Other required training requirements. (a) The training required of 
16.31 	family and group family child care providers and staff must include training in the cultural 
16.32 	dynamics of early childhood development and child care. The cultural dynamics and 
16.33 	disabilities training and skills development of child care providers must be designed to 
16.34 	achieve outcomes for providers of child care that include, but are not limited to:
16.35 	(1) an understanding and support of the importance of culture and differences in 
16.36 	ability in children's identity development;
17.1 	(2) understanding the importance of awareness of cultural differences and 
17.2 	similarities in working with children and their families;
17.3 	(3) understanding and support of the needs of families and children with differences 
17.4 	in ability;
17.5 	(4) developing skills to help children develop unbiased attitudes about cultural 
17.6 	differences and differences in ability;
17.7 	(5) developing skills in culturally appropriate caregiving; and
17.8 	(6) developing skills in appropriate caregiving for children of different abilities.
17.9 	The commissioner shall approve the curriculum for cultural dynamics and disability 
17.10 	training.
17.11 	(b) The provider must meet the training requirement in section 245A.14, subdivision 
17.12 	11, paragraph (a), clause (4), to be eligible to allow a child cared for at the family child 
17.13 	care or group family child care home to use the swimming pool located at the home.
17.14 		Subd. 9.Supervising for safety; training requirement. Effective July 1, 2014, 
17.15 	all family child care license holders and each adult caregiver who provides care in the 
17.16 	licensed family child care home for more than 30 days in any 12-month period shall 
17.17 	complete and document at least six hours approved training on supervising for safety 
17.18 	prior to initial licensure, and before caring for children. At least two hours of training 
17.19 	on supervising for safety must be repeated annually. For purposes of this subdivision, 
17.20 	"supervising for safety" includes supervision basics, supervision outdoors, equipment and 
17.21 	materials, illness, injuries, and disaster preparedness. The commissioner shall develop 
17.22 	the supervising for safety curriculum by January 1, 2014.

17.23 	Sec. 19. Minnesota Statutes 2012, section 245C.08, subdivision 1, is amended to read:
17.24 		Subdivision 1.Background studies conducted by Department of Human 
17.25 	Services. (a) For a background study conducted by the Department of Human Services, 
17.26 	the commissioner shall review:
17.27 	(1) information related to names of substantiated perpetrators of maltreatment of 
17.28 	vulnerable adults that has been received by the commissioner as required under section 
17.29 	626.557, subdivision 9c, paragraph (j);
17.30 	(2) the commissioner's records relating to the maltreatment of minors in licensed 
17.31 	programs, and from findings of maltreatment of minors as indicated through the social 
17.32 	service information system;
17.33 	(3) information from juvenile courts as required in subdivision 4 for individuals 
17.34 	listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
17.35 	(4) information from the Bureau of Criminal Apprehension;
18.1 	(5) except as provided in clause (6), information from the national crime information 
18.2 	system when the commissioner has reasonable cause as defined under section 245C.05, 
18.3 	subdivision 5; and
18.4 	(6) for a background study related to a child foster care application for licensure, a 
18.5 	transfer of permanent legal and physical custody under section 260C.515, or adoptions, 
18.6 	the commissioner shall also review:
18.7 	(i) information from the child abuse and neglect registry for any state in which the 
18.8 	background study subject has resided for the past five years; and
18.9 	(ii) information from national crime information databases, when the background 
18.10 	study subject is 18 years of age or older.
18.11 	(b) Notwithstanding expungement by a court, the commissioner may consider 
18.12 	information obtained under paragraph (a), clauses (3) and (4), unless the commissioner 
18.13 	received notice of the petition for expungement and the court order for expungement is 
18.14 	directed specifically to the commissioner.

18.15 	Sec. 20. Minnesota Statutes 2012, section 245C.33, subdivision 1, is amended to read:
18.16 		Subdivision 1.Background studies conducted by commissioner. (a) Before 
18.17 	placement of a child for purposes of adoption, the commissioner shall conduct a 
18.18 	background study on individuals listed in section 259.41, subdivision 3, for county 
18.19 	agencies and private agencies licensed to place children for adoption.
18.20 	(b) Before placement of a child for the purposes of a transfer of permanent legal and 
18.21 	physical custody to a relative under section 260C.515, the commissioner shall conduct a 
18.22 	background study on each person over the age of 13 living in the home. New background 
18.23 	studies do not need to be completed if the proposed relative custodian has a valid foster 
18.24 	care license, and background studies according to section 245C.08, subdivision 1, were 
18.25 	completed as part of the licensure process.

18.26 	Sec. 21. Minnesota Statutes 2012, section 256.0112, is amended by adding a 
18.27 	subdivision to read:
18.28 		Subd. 10.Contracts for child foster care services. When local agencies negotiate 
18.29 	lead county contracts or purchase of service contracts for child foster care services, the 
18.30 	foster care maintenance payment made on behalf of the child shall follow the provisions of 
18.31 	Northstar Care for Children, chapter 256N. Foster care maintenance payments as defined 
18.32 	in section 256N.02, subdivision 15, represents costs for activities similar in nature to those 
18.33 	expected of parents and do not cover services rendered by the licensed or tribally approved 
18.34 	foster parent, facility, or administrative costs or fees. Payments made to foster parents 
19.1 	must follow the requirements of section 256N.26, subdivision 15. The legally responsible 
19.2 	agency must provide foster parents with the assessment and notice as specified in section 
19.3 	256N.24. The financially responsible agency is permitted to make additional payments for 
19.4 	specific services provided by the foster parents or facility, as permitted in section 256N.21, 
19.5 	subdivision 5. These additional payments are not considered foster care maintenance.

19.6 	Sec. 22. Minnesota Statutes 2012, section 256.82, subdivision 2, is amended to read:
19.7 		Subd. 2.Foster care maintenance payments. Beginning January 1, 1986, For the 
19.8 	purpose of foster care maintenance payments under title IV-E of the Social Security Act, 
19.9 	United States Code, title 42, sections 670 to 676, the county paying the maintenance 
19.10 	costs must be reimbursed for the costs from the federal money available for the purpose. 
19.11 	Beginning July 1, 1997, for the purposes of determining a child's eligibility under title 
19.12 	IV-E of the Social Security Act, the placing agency shall use AFDC requirements in 
19.13 	effect on July 16, 1996.

19.14 	Sec. 23. Minnesota Statutes 2012, section 256.82, subdivision 3, is amended to read:
19.15 		Subd. 3.Setting foster care standard rates. (a) The commissioner shall annually 
19.16 	establish minimum standard maintenance rates for foster care maintenance and including 
19.17 	supplemental difficulty of care payments for all children in foster care eligible for 
19.18 	Northstar Care for Children under chapter 256N.
19.19 	(b) All children entering foster care on or after January 1, 2015, are eligible for 
19.20 	Northstar Care for Children under chapter 256N. Any increase in rates shall in no case 
19.21 	exceed three percent per annum.
19.22 	(c) All children in foster care on December 31, 2014, must remain in the 
19.23 	pre-Northstar Care for Children foster care program under sections 256N.21, subdivision 
19.24 	6, and 260C.4411, subdivision 1. The rates for the pre-Northstar Care for Children foster 
19.25 	care program shall remain those in effect on January 1, 2013.

19.26 	Sec. 24. Minnesota Statutes 2012, section 256.98, subdivision 8, is amended to read:
19.27 		Subd. 8.Disqualification from program. (a) Any person found to be guilty of 
19.28 	wrongfully obtaining assistance by a federal or state court or by an administrative hearing 
19.29 	determination, or waiver thereof, through a disqualification consent agreement, or as part 
19.30 	of any approved diversion plan under section 401.065, or any court-ordered stay which 
19.31 	carries with it any probationary or other conditions, in the Minnesota family investment 
19.32 	program and any affiliated program to include the diversionary work program and the 
19.33 	work participation cash benefit program, the food stamp or food support program, the 
20.1 	general assistance program, the group residential housing program, or the Minnesota 
20.2 	supplemental aid program shall be disqualified from that program. In addition, any person 
20.3 	disqualified from the Minnesota family investment program shall also be disqualified from 
20.4 	the food stamp or food support program. The needs of that individual shall not be taken 
20.5 	into consideration in determining the grant level for that assistance unit:
20.6 	(1) for one year after the first offense;
20.7 	(2) for two years after the second offense; and
20.8 	(3) permanently after the third or subsequent offense.
20.9 	The period of program disqualification shall begin on the date stipulated on the 
20.10 	advance notice of disqualification without possibility of postponement for administrative 
20.11 	stay or administrative hearing and shall continue through completion unless and until the 
20.12 	findings upon which the sanctions were imposed are reversed by a court of competent 
20.13 	jurisdiction. The period for which sanctions are imposed is not subject to review. The 
20.14 	sanctions provided under this subdivision are in addition to, and not in substitution 
20.15 	for, any other sanctions that may be provided for by law for the offense involved. A 
20.16 	disqualification established through hearing or waiver shall result in the disqualification 
20.17 	period beginning immediately unless the person has become otherwise ineligible for 
20.18 	assistance. If the person is ineligible for assistance, the disqualification period begins 
20.19 	when the person again meets the eligibility criteria of the program from which they were 
20.20 	disqualified and makes application for that program.
20.21 	(b) A family receiving assistance through child care assistance programs under 
20.22 	chapter 119B with a family member who is found to be guilty of wrongfully obtaining child 
20.23 	care assistance by a federal court, state court, or an administrative hearing determination 
20.24 	or waiver, through a disqualification consent agreement, as part of an approved diversion 
20.25 	plan under section 401.065, or a court-ordered stay with probationary or other conditions, 
20.26 	is disqualified from child care assistance programs. The disqualifications must be for 
20.27 	periods of three months, six months, and one year and two years for the first, and
20.28 	 second, and third offenses, respectively. Subsequent violations must result in permanent 
20.29 	disqualification. During the disqualification period, disqualification from any child care 
20.30 	program must extend to all child care programs and must be immediately applied.
20.31 	(c) A provider caring for children receiving assistance through child care assistance 
20.32 	programs under chapter 119B is disqualified from receiving payment for child care 
20.33 	services from the child care assistance program under chapter 119B when the provider is 
20.34 	found to have wrongfully obtained child care assistance by a federal court, state court, 
20.35 	or an administrative hearing determination or waiver under section 256.046, through 
20.36 	a disqualification consent agreement, as part of an approved diversion plan under 
21.1 	section 401.065, or a court-ordered stay with probationary or other conditions. The 
21.2 	disqualification must be for a period of one year for the first offense and two years for 
21.3 	the second offense. Any subsequent violation must result in permanent disqualification. 
21.4 	The disqualification period must be imposed immediately after a determination is made 
21.5 	under this paragraph. During the disqualification period, the provider is disqualified from 
21.6 	receiving payment from any child care program under chapter 119B.
21.7 	(d) Any person found to be guilty of wrongfully obtaining general assistance 
21.8 	medical care, MinnesotaCare for adults without children, and upon federal approval, all 
21.9 	categories of medical assistance and remaining categories of MinnesotaCare, except 
21.10 	for children through age 18, by a federal or state court or by an administrative hearing 
21.11 	determination, or waiver thereof, through a disqualification consent agreement, or as part 
21.12 	of any approved diversion plan under section 401.065, or any court-ordered stay which 
21.13 	carries with it any probationary or other conditions, is disqualified from that program. The 
21.14 	period of disqualification is one year after the first offense, two years after the second 
21.15 	offense, and permanently after the third or subsequent offense. The period of program 
21.16 	disqualification shall begin on the date stipulated on the advance notice of disqualification 
21.17 	without possibility of postponement for administrative stay or administrative hearing 
21.18 	and shall continue through completion unless and until the findings upon which the 
21.19 	sanctions were imposed are reversed by a court of competent jurisdiction. The period for 
21.20 	which sanctions are imposed is not subject to review. The sanctions provided under this 
21.21 	subdivision are in addition to, and not in substitution for, any other sanctions that may be 
21.22 	provided for by law for the offense involved.

21.23 	EFFECTIVE DATE. This section is effective February 3, 2014.

21.24 	Sec. 25. Minnesota Statutes 2012, section 256J.08, subdivision 24, is amended to read:
21.25 		Subd. 24.Disregard. "Disregard" means earned income that is not counted when 
21.26 	determining initial eligibility in the initial income test in section 256J.21, subdivision 3,
21.27 	 or income that is not counted when determining ongoing eligibility and calculating the 
21.28 	amount of the assistance payment for participants. The commissioner shall determine 
21.29 	the amount of the disregard according to section 256J.24, subdivision 10 for ongoing 
21.30 	eligibility shall be 50 percent of gross earned income.

21.31 	EFFECTIVE DATE. This section is effective October 1, 2013, or upon approval 
21.32 	from the United States Department of Agriculture, whichever is later.

21.33 	Sec. 26. Minnesota Statutes 2012, section 256J.21, subdivision 2, is amended to read:
22.1 		Subd. 2.Income exclusions. The following must be excluded in determining a 
22.2 	family's available income:
22.3 	(1) payments for basic care, difficulty of care, and clothing allowances received for 
22.4 	providing family foster care to children or adults under Minnesota Rules, parts 9555.5050 
22.5 	to 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, payments for family foster care to 
22.6 	children under chapter 256N, and payments received and used for care and maintenance of 
22.7 	a third-party beneficiary who is not a household member;
22.8 	(2) reimbursements for employment training received through the Workforce 
22.9 	Investment Act of 1998, United States Code, title 20, chapter 73, section 9201;
22.10 	(3) reimbursement for out-of-pocket expenses incurred while performing volunteer 
22.11 	services, jury duty, employment, or informal carpooling arrangements directly related to 
22.12 	employment;
22.13 	(4) all educational assistance, except the county agency must count graduate student 
22.14 	teaching assistantships, fellowships, and other similar paid work as earned income and, 
22.15 	after allowing deductions for any unmet and necessary educational expenses, shall 
22.16 	count scholarships or grants awarded to graduate students that do not require teaching 
22.17 	or research as unearned income;
22.18 	(5) loans, regardless of purpose, from public or private lending institutions, 
22.19 	governmental lending institutions, or governmental agencies;
22.20 	(6) loans from private individuals, regardless of purpose, provided an applicant or 
22.21 	participant documents that the lender expects repayment;
22.22 	(7)(i) state income tax refunds; and
22.23 	(ii) federal income tax refunds;
22.24 	(8)(i) federal earned income credits;
22.25 	(ii) Minnesota working family credits;
22.26 	(iii) state homeowners and renters credits under chapter 290A; and
22.27 	(iv) federal or state tax rebates;
22.28 	(9) funds received for reimbursement, replacement, or rebate of personal or real 
22.29 	property when these payments are made by public agencies, awarded by a court, solicited 
22.30 	through public appeal, or made as a grant by a federal agency, state or local government, 
22.31 	or disaster assistance organizations, subsequent to a presidential declaration of disaster;
22.32 	(10) the portion of an insurance settlement that is used to pay medical, funeral, and 
22.33 	burial expenses, or to repair or replace insured property;
22.34 	(11) reimbursements for medical expenses that cannot be paid by medical assistance;
22.35 	(12) payments by a vocational rehabilitation program administered by the state 
22.36 	under chapter 268A, except those payments that are for current living expenses;
23.1 	(13) in-kind income, including any payments directly made by a third party to a 
23.2 	provider of goods and services;
23.3 	(14) assistance payments to correct underpayments, but only for the month in which 
23.4 	the payment is received;
23.5 	(15) payments for short-term emergency needs under section 256J.626, subdivision 2;
23.6 	(16) funeral and cemetery payments as provided by section 256.935;
23.7 	(17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in 
23.8 	a calendar month;
23.9 	(18) any form of energy assistance payment made through Public Law 97-35, 
23.10 	Low-Income Home Energy Assistance Act of 1981, payments made directly to energy 
23.11 	providers by other public and private agencies, and any form of credit or rebate payment 
23.12 	issued by energy providers;
23.13 	(19) Supplemental Security Income (SSI), including retroactive SSI payments and 
23.14 	other income of an SSI recipient, except as described in section 256J.37, subdivision 3b;
23.15 	(20) Minnesota supplemental aid, including retroactive payments;
23.16 	(21) proceeds from the sale of real or personal property;
23.17 	(22) state adoption assistance payments under section 259.67, and up to an equal 
23.18 	amount of county adoption assistance payments adoption assistance payments under 
23.19 	chapter 259A and Minnesota Permanency Demonstration, Title IV-E waiver payments 
23.20 	under section 256.01, subdivision 14a;
23.21 	(23) state-funded family subsidy program payments made under section 252.32 to 
23.22 	help families care for children with developmental disabilities, consumer support grant 
23.23 	funds under section 256.476, and resources and services for a disabled household member 
23.24 	under one of the home and community-based waiver services programs under chapter 256B;
23.25 	(24) interest payments and dividends from property that is not excluded from and 
23.26 	that does not exceed the asset limit;
23.27 	(25) rent rebates;
23.28 	(26) income earned by a minor caregiver, minor child through age 6, or a minor 
23.29 	child who is at least a half-time student in an approved elementary or secondary education 
23.30 	program;
23.31 	(27) income earned by a caregiver under age 20 who is at least a half-time student in 
23.32 	an approved elementary or secondary education program;
23.33 	(28) MFIP child care payments under section 119B.05;
23.34 	(29) all other payments made through MFIP to support a caregiver's pursuit of 
23.35 	greater economic stability;
23.36 	(30) income a participant receives related to shared living expenses;
24.1 	(31) reverse mortgages;
24.2 	(32) benefits provided by the Child Nutrition Act of 1966, United States Code, title 
24.3 	42, chapter 13A, sections 1771 to 1790;
24.4 	(33) benefits provided by the women, infants, and children (WIC) nutrition program, 
24.5 	United States Code, title 42, chapter 13A, section 1786;
24.6 	(34) benefits from the National School Lunch Act, United States Code, title 42, 
24.7 	chapter 13, sections 1751 to 1769e;
24.8 	(35) relocation assistance for displaced persons under the Uniform Relocation 
24.9 	Assistance and Real Property Acquisition Policies Act of 1970, United States Code, title 
24.10 	42, chapter 61, subchapter II, section 4636, or the National Housing Act, United States 
24.11 	Code, title 12, chapter 13, sections 1701 to 1750jj;
24.12 	(36) benefits from the Trade Act of 1974, United States Code, title 19, chapter 
24.13 	12, part 2, sections 2271 to 2322;
24.14 	(37) war reparations payments to Japanese Americans and Aleuts under United 
24.15 	States Code, title 50, sections 1989 to 1989d;
24.16 	(38) payments to veterans or their dependents as a result of legal settlements 
24.17 	regarding Agent Orange or other chemical exposure under Public Law 101-239, section 
24.18 	10405, paragraph (a)(2)(E);
24.19 	(39) income that is otherwise specifically excluded from MFIP consideration in 
24.20 	federal law, state law, or federal regulation;
24.21 	(40) security and utility deposit refunds;
24.22 	(41) American Indian tribal land settlements excluded under Public Laws 98-123, 
24.23 	98-124, and 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech 
24.24 	Lake, and Mille Lacs reservations and payments to members of the White Earth Band, 
24.25 	under United States Code, title 25, chapter 9, section 331, and chapter 16, section 1407;
24.26 	(42) all income of the minor parent's parents and stepparents when determining the 
24.27 	grant for the minor parent in households that include a minor parent living with parents or 
24.28 	stepparents on MFIP with other children;
24.29 	(43) income of the minor parent's parents and stepparents equal to 200 percent of the 
24.30 	federal poverty guideline for a family size not including the minor parent and the minor 
24.31 	parent's child in households that include a minor parent living with parents or stepparents 
24.32 	not on MFIP when determining the grant for the minor parent. The remainder of income is 
24.33 	deemed as specified in section 256J.37, subdivision 1b;
24.34 	(44) payments made to children eligible for relative custody assistance under section 
24.35 	257.85 and guardianship assistance under section 256N.20;
25.1 	(45) vendor payments for goods and services made on behalf of a client unless the 
25.2 	client has the option of receiving the payment in cash;
25.3 	(46) the principal portion of a contract for deed payment; and
25.4 	(47) cash payments to individuals enrolled for full-time service as a volunteer under 
25.5 	AmeriCorps programs including AmeriCorps VISTA, AmeriCorps State, AmeriCorps 
25.6 	National, and AmeriCorps NCCC.

25.7 	EFFECTIVE DATE. This section is effective January 1, 2015.

25.8 	Sec. 27. Minnesota Statutes 2012, section 256J.21, subdivision 3, is amended to read:
25.9 		Subd. 3.Initial income test. The county agency shall determine initial eligibility 
25.10 	by considering all earned and unearned income that is not excluded under subdivision 2. 
25.11 	To be eligible for MFIP, the assistance unit's countable income minus the disregards in 
25.12 	paragraphs (a) and (b) must be below the transitional standard of assistance family wage 
25.13 	level according to section 256J.24 for that size assistance unit.
25.14 	(a) The initial eligibility determination must disregard the following items:
25.15 	(1) the employment disregard is 18 percent of the gross earned income whether or 
25.16 	not the member is working full time or part time;
25.17 	(2) dependent care costs must be deducted from gross earned income for the actual 
25.18 	amount paid for dependent care up to a maximum of $200 per month for each child less 
25.19 	than two years of age, and $175 per month for each child two years of age and older under 
25.20 	this chapter and chapter 119B;
25.21 	(3) all payments made according to a court order for spousal support or the support 
25.22 	of children not living in the assistance unit's household shall be disregarded from the 
25.23 	income of the person with the legal obligation to pay support, provided that, if there has 
25.24 	been a change in the financial circumstances of the person with the legal obligation to pay 
25.25 	support since the support order was entered, the person with the legal obligation to pay 
25.26 	support has petitioned for a modification of the support order; and
25.27 	(4) an allocation for the unmet need of an ineligible spouse or an ineligible child 
25.28 	under the age of 21 for whom the caregiver is financially responsible and who lives with 
25.29 	the caregiver according to section 256J.36.
25.30 	(b) Notwithstanding paragraph (a), when determining initial eligibility for applicant 
25.31 	units when at least one member has received MFIP in this state within four months of 
25.32 	the most recent application for MFIP, apply the disregard as defined in section 256J.08, 
25.33 	subdivision 24, for all unit members.
25.34 	After initial eligibility is established, the assistance payment calculation is based on 
25.35 	the monthly income test.

26.1 	EFFECTIVE DATE. This section is effective October 1, 2013, or upon approval 
26.2 	from the United States Department of Agriculture, whichever is later.

26.3 	Sec. 28. Minnesota Statutes 2012, section 256J.24, subdivision 3, is amended to read:
26.4 		Subd. 3.Individuals who must be excluded from an assistance unit. (a) The 
26.5 	following individuals who are part of the assistance unit determined under subdivision 2 
26.6 	are ineligible to receive MFIP:
26.7 	(1) individuals who are recipients of Supplemental Security Income or Minnesota 
26.8 	supplemental aid;
26.9 	(2) individuals disqualified from the food stamp or food support program or MFIP, 
26.10 	until the disqualification ends;
26.11 	(3) children on whose behalf federal, state or local foster care payments are made, 
26.12 	except as provided in sections 256J.13, subdivision 2, and 256J.74, subdivision 2;
26.13 	(4) children receiving ongoing guardianship assistance payments under chapter 256N;
26.14 	(4) (5) children receiving ongoing monthly adoption assistance payments under 
26.15 	section 259.67 chapter 259A or 256N; and
26.16 	(5) (6) individuals disqualified from the work participation cash benefit program 
26.17 	until that disqualification ends.
26.18 	(b) The exclusion of a person under this subdivision does not alter the mandatory 
26.19 	assistance unit composition.

26.20 	EFFECTIVE DATE. This section is effective January 1, 2015.

26.21 	Sec. 29. Minnesota Statutes 2012, section 256J.24, subdivision 7, is amended to read:
26.22 		Subd. 7.Family wage level. The family wage level is 110 percent of the transitional 
26.23 	standard under subdivision 5 or 6, when applicable, and is the standard used when there is 
26.24 	earned income in the assistance unit. As specified in section 256J.21. If there is earned 
26.25 	income in the assistance unit, earned income is subtracted from the family wage level to 
26.26 	determine the amount of the assistance payment, as specified in section 256J.21. The 
26.27 	assistance payment may not exceed the transitional standard under subdivision 5 or 6, 
26.28 	or the shared household standard under subdivision 9, whichever is applicable, for the 
26.29 	assistance unit.

26.30 	EFFECTIVE DATE. This section is effective October 1, 2013, or upon approval 
26.31 	from the United States Department of Agriculture, whichever is later.

27.1 	Sec. 30. Minnesota Statutes 2012, section 256J.621, is amended to read:
27.2 	256J.621 WORK PARTICIPATION CASH BENEFITS.
27.3 		Subdivision 1.Program characteristics. (a) Effective October 1, 2009, upon 
27.4 	exiting the diversionary work program (DWP) or upon terminating the Minnesota family 
27.5 	investment program with earnings, a participant who is employed may be eligible for work 
27.6 	participation cash benefits of $25 per month to assist in meeting the family's basic needs 
27.7 	as the participant continues to move toward self-sufficiency.
27.8 	(b) To be eligible for work participation cash benefits, the participant shall not 
27.9 	receive MFIP or diversionary work program assistance during the month and the 
27.10 	participant or participants must meet the following work requirements:
27.11 	(1) if the participant is a single caregiver and has a child under six years of age, the 
27.12 	participant must be employed at least 87 hours per month;
27.13 	(2) if the participant is a single caregiver and does not have a child under six years of 
27.14 	age, the participant must be employed at least 130 hours per month; or
27.15 	(3) if the household is a two-parent family, at least one of the parents must be 
27.16 	employed 130 hours per month.
27.17 	Whenever a participant exits the diversionary work program or is terminated from 
27.18 	MFIP and meets the other criteria in this section, work participation cash benefits are 
27.19 	available for up to 24 consecutive months.
27.20 	(c) Expenditures on the program are maintenance of effort state funds under 
27.21 	a separate state program for participants under paragraph (b), clauses (1) and (2). 
27.22 	Expenditures for participants under paragraph (b), clause (3), are nonmaintenance of effort 
27.23 	funds. Months in which a participant receives work participation cash benefits under this 
27.24 	section do not count toward the participant's MFIP 60-month time limit.
27.25 		Subd. 2.Program suspension. (a) Effective December 1, 2013, the work 
27.26 	participation cash benefits program shall be suspended.
27.27 	(b) The commissioner of human services may reinstate the work participation cash 
27.28 	benefits program if the United States Department of Human Services determines that the 
27.29 	state of Minnesota did not meet the federal TANF work participation rate, and sends a 
27.30 	notice of penalty to reduce Minnesota's federal TANF block grant authorized under title I 
27.31 	of Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation 
27.32 	Act of 1996, and under Public Law 109-171, the Deficit Reduction Act of 2005.
27.33 	(c) The commissioner shall notify the chairs of the legislative committees with 
27.34 	jurisdiction over human services policy and funding of the potential penalty and the 
27.35 	commissioner's plans to reinstate the work participation cash benefit program within 30 
28.1 	days of the date the commissioner receives notification that the state failed to meet the 
28.2 	federal work participation rate.

28.3 	Sec. 31. Minnesota Statutes 2012, section 256J.626, subdivision 7, is amended to read:
28.4 		Subd. 7.Performance base funds. (a) For the purpose of this section, the following 
28.5 	terms have the meanings given.
28.6 	(1) "Caseload Reduction Credit" (CRC) means the measure of how much Minnesota 
28.7 	TANF and separate state program caseload has fallen relative to federal fiscal year 2005 
28.8 	based on caseload data from October 1 to September 30.
28.9 	(2) "TANF participation rate target" means a 50 percent participation rate reduced by 
28.10 	the CRC for the previous year.
28.11 	(b) (a) For calendar year 2010 2016 and yearly thereafter, each county and tribe will
28.12 	 must be allocated 95 100 percent of their initial calendar year allocation. Allocations for 
28.13 	counties and tribes will must be allocated additional funds adjusted based on performance 
28.14 	as follows:
28.15 	(1) a county or tribe that achieves the TANF participation rate target or a five 
28.16 	percentage point improvement over the previous year's TANF participation rate under 
28.17 	section 256J.751, subdivision 2, clause (7), as averaged across 12 consecutive months for 
28.18 	the most recent year for which the measurements are available, will receive an additional 
28.19 	allocation equal to 2.5 percent of its initial allocation;
28.20 	(2) (1) a county or tribe that performs within or above its range of expected 
28.21 	performance on the annualized three-year self-support index under section 256J.751, 
28.22 	subdivision 2, clause (6), will must receive an additional allocation equal to 2.5 percent of 
28.23 	its initial allocation; and
28.24 	(3) a county or tribe that does not achieve the TANF participation rate target or 
28.25 	a five percentage point improvement over the previous year's TANF participation rate 
28.26 	under section 256J.751, subdivision 2, clause (7), as averaged across 12 consecutive 
28.27 	months for the most recent year for which the measurements are available, will not 
28.28 	receive an additional 2.5 percent of its initial allocation until after negotiating a multiyear 
28.29 	improvement plan with the commissioner; or
28.30 	(4) (2) a county or tribe that does not perform within or above performs below its 
28.31 	range of expected performance on the annualized three-year self-support index under 
28.32 	section 256J.751, subdivision 2, clause (6), will not receive an additional allocation equal 
28.33 	to 2.5 percent of its initial allocation until after negotiating for two consecutive years must 
28.34 	negotiate a multiyear improvement plan with the commissioner. If no improvement is 
28.35 	shown by the end of the multiyear plan, the county's or tribe's allocation must be decreased 
29.1 	by 2.5 percent. The decrease must remain in effect until the tribe performs within or 
29.2 	above its range of expected performance.
29.3 	(c) (b) For calendar year 2009 2016 and yearly thereafter, performance-based funds 
29.4 	for a federally approved tribal TANF program in which the state and tribe have in place a 
29.5 	contract under section 256.01, addressing consolidated funding, will must be allocated 
29.6 	as follows:
29.7 	(1) a tribe that achieves the participation rate approved in its federal TANF plan 
29.8 	using the average of 12 consecutive months for the most recent year for which the 
29.9 	measurements are available, will receive an additional allocation equal to 2.5 percent of 
29.10 	its initial allocation; and
29.11 	(2) (1) a tribe that performs within or above its range of expected performance on the 
29.12 	annualized three-year self-support index under section 256J.751, subdivision 2, clause (6), 
29.13 	will must receive an additional allocation equal to 2.5 percent of its initial allocation; or
29.14 	(3) a tribe that does not achieve the participation rate approved in its federal TANF 
29.15 	plan using the average of 12 consecutive months for the most recent year for which the 
29.16 	measurements are available, will not receive an additional allocation equal to 2.5 percent 
29.17 	of its initial allocation until after negotiating a multiyear improvement plan with the 
29.18 	commissioner; or
29.19 	(4) (2) a tribe that does not perform within or above performs below its range of 
29.20 	expected performance on the annualized three-year self-support index under section 
29.21 	256J.751, subdivision 2, clause (6), will not receive an additional allocation equal to 
29.22 	2.5 percent until after negotiating for two consecutive years must negotiate a multiyear 
29.23 	improvement plan with the commissioner. If no improvement is shown by the end of the 
29.24 	multiyear plan, the tribe's allocation must be decreased by 2.5 percent. The decrease must 
29.25 	remain in effect until the tribe performs within or above its range of expected performance.
29.26 	(d) (c) Funds remaining unallocated after the performance-based allocations 
29.27 	in paragraph (b) (a) are available to the commissioner for innovation projects under 
29.28 	subdivision 5.
29.29 	(1) (d) If available funds are insufficient to meet county and tribal allocations under 
29.30 	paragraph paragraphs (a) and (b), the commissioner may make available for allocation 
29.31 	funds that are unobligated and available from the innovation projects through the end of 
29.32 	the current biennium shall proportionally prorate funds to counties and tribes that qualify 
29.33 	for a bonus under paragraphs (a), clause (1), and (b), clause (2).
29.34 	(2) If after the application of clause (1) funds remain insufficient to meet county and 
29.35 	tribal allocations under paragraph (b), the commissioner must proportionally reduce the 
30.1 	allocation of each county and tribe with respect to their maximum allocation available 
30.2 	under paragraph (b).

30.3 	Sec. 32. [256J.78] TANF DEMONSTRATION PROJECTS OR WAIVER FROM 
30.4 	FEDERAL RULES AND REGULATIONS.
30.5 		Subdivision 1.Duties of the commissioner. The commissioner of human services 
30.6 	may pursue TANF demonstration projects or waivers of TANF requirements from the 
30.7 	United States Department of Health and Human Services as needed to allow the state to 
30.8 	build a more results-oriented Minnesota Family Investment Program to better meet the 
30.9 	needs of Minnesota families.
30.10 		Subd. 2.Purpose. The purpose of the TANF demonstration projects or waivers is to:
30.11 	(1) replace the federal TANF process measure and its complex administrative 
30.12 	requirements with state-developed outcomes measures that track adult employment and 
30.13 	exits from MFIP cash assistance;
30.14 	(2) simplify programmatic and administrative requirements; and
30.15 	(3) make other policy or programmatic changes that improve the performance of the 
30.16 	program and the outcomes for participants.
30.17 		Subd. 3.Report to legislature. The commissioner shall report to the members of 
30.18 	the legislative committees having jurisdiction over human services issues by March 1, 
30.19 	2014, regarding the progress of this waiver or demonstration project.

30.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.21 	Sec. 33. [256N.001] CITATION.
30.22 	Sections 256N.001 to 256N.28 may be cited as the "Northstar Care for Children Act." 
30.23 	Sections 256N.001 to 256N.28 establish Northstar Care for Children, which authorizes 
30.24 	certain benefits to support a child in need who is served by the Minnesota child welfare 
30.25 	system and who is the responsibility of the state, local county social service agencies, or 
30.26 	tribal social service agencies authorized under section 256.01, subdivision 14b, or are 
30.27 	otherwise eligible for federal adoption assistance. A child eligible under this chapter 
30.28 	has experienced a child welfare intervention that has resulted in the child being placed 
30.29 	away from the child's parents' care and is receiving foster care services consistent with 
30.30 	chapter 260B, 260C, or 260D, or is in the permanent care of relatives through a transfer of 
30.31 	permanent legal and physical custody, or in the permanent care of adoptive parents.

30.32 	Sec. 34. [256N.01] PUBLIC POLICY.
31.1 	(a) The legislature declares that the public policy of this state is to keep children safe 
31.2 	from harm and to ensure that when children suffer harmful or injurious experiences in 
31.3 	their lives, appropriate services are immediately available to keep them safe.
31.4 	(b) Children do best in permanent, safe, nurturing homes where they can maintain 
31.5 	lifelong relationships with adults. Whenever safely possible, children are best served 
31.6 	when they can be nurtured and raised by their parents. Where services cannot be provided 
31.7 	to allow a child to remain safely at home, an out-of-home placement may be required. 
31.8 	When this occurs, reunification should be sought if it can be accomplished safely. When 
31.9 	it is not possible for parents to provide safety and permanency for their children, an 
31.10 	alternative permanent home must quickly be made available to the child, drawing from 
31.11 	kinship sources whenever possible.
31.12 	(c) Minnesota understands the importance of having a comprehensive approach to 
31.13 	temporary out-of-home care and to permanent homes for children who cannot be reunited 
31.14 	with their families. It is critical that stable benefits be available to caregivers to ensure 
31.15 	that the child's needs can be met whether the child's situation and best interests call for 
31.16 	temporary foster care, transfer of permanent legal and physical custody to a relative, or 
31.17 	adoption. Northstar Care for Children focuses on the child's needs and strengths, and 
31.18 	the actual level of care provided by the caregiver, without consideration for the type of 
31.19 	placement setting. In this way caregivers are not faced with the burden of making specific 
31.20 	long-term decisions based upon competing financial incentives.

31.21 	Sec. 35. [256N.02] DEFINITIONS.
31.22 		Subdivision 1.Scope. For the purposes of sections 256N.001 to 256N.28, the terms 
31.23 	defined in this section have the meanings given them.
31.24 		Subd. 2.Adoption assistance. "Adoption assistance" means medical coverage as 
31.25 	allowable under section 256B.055 and reimbursement of nonrecurring expenses associated 
31.26 	with adoption and may include financial support provided under agreement with the 
31.27 	financially responsible agency, the commissioner, and the parents of an adoptive child 
31.28 	whose special needs would otherwise make it difficult to place the child for adoption to 
31.29 	assist with the cost of caring for the child. Financial support may include a basic rate 
31.30 	payment and a supplemental difficulty of care rate.
31.31 		Subd. 3.Assessment. "Assessment" means the process under section 256N.24 that 
31.32 	determines the benefits an eligible child may receive under section 256N.26.
31.33 		Subd. 4.At-risk child. "At-risk child" means a child who does not have a 
31.34 	documented disability but who is at risk of developing a physical, mental, emotional, or 
31.35 	behavioral disability based on being related within the first or second degree to persons 
32.1 	who have an inheritable physical, mental, emotional, or behavioral disabling condition, 
32.2 	or from a background which has the potential to cause the child to develop a physical, 
32.3 	mental, emotional, or behavioral disability that the child is at risk of developing. The 
32.4 	disability must manifest during childhood.
32.5 		Subd. 5.Basic rate. "Basic rate" means the maintenance payment made on behalf 
32.6 	of a child to support the costs caregivers incur to provide for a child's needs consistent with 
32.7 	the care parents customarily provide, including: food, clothing, shelter, daily supervision, 
32.8 	school supplies, and a child's personal incidentals. It also supports typical travel to the 
32.9 	child's home for visitation, and reasonable travel for the child to remain in the school in 
32.10 	which the child is enrolled at the time of placement.
32.11 		Subd. 6.Caregiver. "Caregiver" means the foster parent or parents of a child in 
32.12 	foster care who meet the requirements of emergency relative placement, licensed foster 
32.13 	parents under chapter 245A, or foster parents licensed or approved by a tribe; the relative 
32.14 	custodian or custodians; or the adoptive parent or parents who have legally adopted a child.
32.15 		Subd. 7.Commissioner. "Commissioner" means the commissioner of human 
32.16 	services or any employee of the Department of Human Services to whom the 
32.17 	commissioner has delegated appropriate authority.
32.18 		Subd. 8.County board. "County board" means the board of county commissioners 
32.19 	in each county.
32.20 		Subd. 9.Disability. "Disability" means a physical, mental, emotional, or behavioral 
32.21 	impairment that substantially limits one or more major life activities. Major life activities 
32.22 	include, but are not limited to: thinking, walking, hearing, breathing, working, seeing, 
32.23 	speaking, communicating, learning, developing and maintaining healthy relationships, 
32.24 	safely caring for oneself, and performing manual tasks. The nature, duration, and severity 
32.25 	of the impairment must be considered in determining if the limitation is substantial.
32.26 		Subd. 10.Financially responsible agency. "Financially responsible agency" means 
32.27 	the agency that is financially responsible for a child. These agencies include both local 
32.28 	social service agencies under section 393.07 and tribal social service agencies authorized 
32.29 	in section 256.01, subdivision 14b, as part of the American Indian Child Welfare Initiative, 
32.30 	and Minnesota tribes who assume financial responsibility of children from other states. 
32.31 	Under Northstar Care for Children, the agency that is financially responsible at the time of 
32.32 	placement for foster care continues to be responsible under section 256N.27 for the local 
32.33 	share of any maintenance payments, even after finalization of the adoption of transfer of 
32.34 	permanent legal and physical custody of a child.
32.35 		Subd. 11.Guardianship assistance. "Guardianship assistance" means medical 
32.36 	coverage, as allowable under section 256B.055, and reimbursement of nonrecurring 
33.1 	expenses associated with obtaining permanent legal and physical custody of a child, and 
33.2 	may include financial support provided under agreement with the financially responsible 
33.3 	agency, the commissioner, and the relative who has received a transfer of permanent legal 
33.4 	and physical custody of a child. Financial support may include a basic rate payment and a 
33.5 	supplemental difficulty of care rate to assist with the cost of caring for the child.
33.6 		Subd. 12.Human services board. "Human services board" means a board 
33.7 	established under section 402.02; Laws 1974, chapter 293; or Laws 1976, chapter 340.
33.8 		Subd. 13.Initial assessment. "Initial assessment" means the assessment conducted 
33.9 	within the first 30 days of a child's initial placement into foster care under section 
33.10 	256N.24, subdivisions 4 and 5.
33.11 		Subd. 14.Legally responsible agency. "Legally responsible agency" means the 
33.12 	Minnesota agency that is assigned responsibility for placement, care, and supervision 
33.13 	of the child through a court order, voluntary placement agreement, or voluntary 
33.14 	relinquishment. These agencies include local social service agencies under section 393.07, 
33.15 	tribal social service agencies authorized in section 256.01, subdivision 14b, and Minnesota 
33.16 	tribes that assume court jurisdiction when legal responsibility is transferred to the tribal 
33.17 	social service agency through a Minnesota district court order. A Minnesota local social 
33.18 	service agency is otherwise financially responsible.
33.19 		Subd. 15.Maintenance payments. "Maintenance payments" means the basic 
33.20 	rate plus any supplemental difficulty of care rate under Northstar Care for Children. It 
33.21 	specifically does not include the cost of initial clothing allowance, payment for social 
33.22 	services, or administrative payments to a child-placing agency. Payments are paid 
33.23 	consistent with section 256N.26.
33.24 		Subd. 16.Permanent legal and physical custody. "Permanent legal and physical 
33.25 	custody" means a transfer of permanent legal and physical custody to a relative ordered by 
33.26 	a Minnesota juvenile court under section 260C.515, subdivision 4, or for a child under 
33.27 	jurisdiction of a tribal court, a judicial determination under a similar provision in tribal 
33.28 	code which means that a relative will assume the duty and authority to provide care, 
33.29 	control, and protection of a child who is residing in foster care, and to make decisions 
33.30 	regarding the child's education, health care, and general welfare until adulthood.
33.31 		Subd. 17.Reassessment. "Reassessment" means an update of a previous assessment 
33.32 	through the process under section 256N.24 for a child who has been continuously eligible 
33.33 	for Northstar Care for Children, or when a child identified as an at-risk child (Level A) 
33.34 	under guardianship or adoption assistance has manifested the disability upon which 
33.35 	eligibility for the agreement was based according to section 256N.25, subdivision 3, 
34.1 	paragraph (b). A reassessment may be used to update an initial assessment, a special 
34.2 	assessment, or a previous reassessment.
34.3 		Subd. 18.Relative. "Relative," as described in section 260C.007, subdivision 27, 
34.4 	means a person related to the child by blood, marriage, or adoption, or an individual who 
34.5 	is an important friend with whom the child has resided or had significant contact. For an 
34.6 	Indian child, relative includes members of the extended family as defined by the law or 
34.7 	custom of the Indian child's tribe or, in the absence of law or custom, nieces, nephews, 
34.8 	or first or second cousins, as provided in the Indian Child Welfare Act of 1978, United 
34.9 	States Code, title 25, section 1903.
34.10 		Subd. 19.Relative custodian. "Relative custodian" means a person to whom 
34.11 	permanent legal and physical custody of a child has been transferred under section 
34.12 	260C.515, subdivision 4, or for a child under jurisdiction of a tribal court, a judicial 
34.13 	determination under a similar provision in tribal code, which means that a relative will 
34.14 	assume the duty and authority to provide care, control, and protection of a child who is 
34.15 	residing in foster care, and to make decisions regarding the child's education, health 
34.16 	care, and general welfare until adulthood.
34.17 		Subd. 20.Special assessment. "Special assessment" means an assessment 
34.18 	performed under section 256N.24 that determines the benefits that an eligible child may 
34.19 	receive under section 256N.26 at the time when a special assessment is required. A special 
34.20 	assessment is used in the following circumstances when a child's status within Northstar 
34.21 	Care is shifted from a pre-Northstar Care program into Northstar Care for Children when 
34.22 	the commissioner determines that a special assessment is appropriate instead of assigning 
34.23 	the transition child to a level under section 256N.28.
34.24 		Subd. 21.Supplemental difficulty of care rate. "Supplemental difficulty of care 
34.25 	rate" means the supplemental payment under section 256N.26, if any, as determined by 
34.26 	the financially responsible agency or the state, based upon an assessment under section 
34.27 	256N.24. The rate must support activities consistent with the care a parent provides a child 
34.28 	with special needs and not the equivalent of a purchased service. The rate must consider 
34.29 	the capacity and intensity of the activities associated with parenting duties provided in 
34.30 	the home to nurture the child, preserve the child's connections, and support the child's 
34.31 	functioning in the home and community.

34.32 	Sec. 36. [256N.20] NORTHSTAR CARE FOR CHILDREN; GENERALLY.
34.33 		Subdivision 1.Eligibility. A child is eligible for Northstar Care for Children if 
34.34 	the child is eligible for:
34.35 	(1) foster care under section 256N.21;
35.1 	(2) guardianship assistance under section 256N.22; or
35.2 	(3) adoption assistance under section 256N.23.
35.3 		Subd. 2.Assessments. Except as otherwise specified, a child eligible for Northstar 
35.4 	Care for Children shall receive an assessment under section 256N.24.
35.5 		Subd. 3.Agreements. When a child is eligible for guardianship assistance or 
35.6 	adoption assistance, negotiations with caregivers and the development of a written, 
35.7 	binding agreement must be conducted under section 256N.25.
35.8 		Subd. 4.Benefits and payments. A child eligible for Northstar Care for Children is 
35.9 	entitled to benefits specified in section 256N.26, based primarily on assessments under 
35.10 	section 256N.24, and, if appropriate, negotiations and agreements under section 256N.25. 
35.11 	Although paid to the caregiver, these benefits must be considered benefits of the child 
35.12 	rather than of the caregiver.
35.13 		Subd. 5.Federal, state, and local shares. The cost of Northstar Care for Children 
35.14 	must be shared among the federal government, state, counties of financial responsibility, 
35.15 	and certain tribes as specified in section 256N.27.
35.16 		Subd. 6.Administration and appeals. The commissioner and financially 
35.17 	responsible agency, or other agency designated by the commissioner, shall administer 
35.18 	Northstar Care for Children according to section 256N.28. The notification and fair 
35.19 	hearing process applicable to this chapter is defined in section 256N.28.
35.20 		Subd. 7.Transition. A child in foster care, relative custody assistance, or adoption 
35.21 	assistance prior to January 1, 2015, who remains with the same caregivers continues 
35.22 	to receive benefits under programs preceding Northstar Care for Children, unless the 
35.23 	child moves to a new foster care placement, permanency is obtained for the child, or the 
35.24 	commissioner initiates transition of a child receiving pre-Northstar Care for Children 
35.25 	relative custody assistance, guardianship assistance, or adoption assistance under this 
35.26 	chapter. Provisions for the transition to Northstar Care for Children for certain children in 
35.27 	preceding programs are specified in section 256N.28, subdivisions 2 and 7. Additional 
35.28 	provisions for children in: foster care are specified in section 256N.21, subdivision 
35.29 	6; relative custody assistance under section 257.85 are specified in section 256N.22, 
35.30 	subdivision 12; and adoption assistance under chapter 259A are specified in section 
35.31 	256N.23, subdivision 13.

35.32 	Sec. 37. [256N.21] ELIGIBILITY FOR FOSTER CARE BENEFITS.
35.33 		Subdivision 1.General eligibility requirements. (a) A child is eligible for foster 
35.34 	care benefits under this section if the child meets the requirements of subdivision 2 on 
35.35 	or after January 1, 2015.
36.1 	(b) The financially responsible agency shall make a title IV-E eligibility determination 
36.2 	for all foster children meeting the requirements of subdivision 2, provided the agency has 
36.3 	such authority under the state title IV-E plan. To be eligible for title IV-E foster care, a child 
36.4 	must also meet any additional criteria specified in section 472 of the Social Security Act.
36.5 	(c) Except as provided under section 256N.26, subdivision 1 or 6, the foster care 
36.6 	benefit to the child under this section must be determined under sections 256N.24 and 
36.7 	256N.26 through an individual assessment. Information from this assessment must be 
36.8 	used to determine a potential future benefit under guardianship assistance or adoption 
36.9 	assistance, if needed.
36.10 	(d) When a child is eligible for additional services, subdivisions 3 and 4 govern 
36.11 	the co-occurrence of program eligibility.
36.12 		Subd. 2.Placement in foster care. To be eligible for foster care benefits under this 
36.13 	section, the child must be in placement away from the child's legal parent or guardian and 
36.14 	all of the following criteria must be met:
36.15 	(1) the legally responsible agency must have placement authority and care 
36.16 	responsibility, including for a child 18 years old or older and under age 21, who maintains 
36.17 	eligibility for foster care consistent with section 260C.451;
36.18 	(2) the legally responsible agency must have authority to place the child with a 
36.19 	voluntary placement agreement or a court order, consistent with sections 260B.198, 
36.20 	260C.001, 260D.01, or continued eligibility consistent with section 260C.451; and
36.21 	(3) the child must be placed in an emergency relative placement under section 
36.22 	245A.035, a licensed foster family setting, foster residence setting, or treatment foster 
36.23 	care setting licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, a family 
36.24 	foster home licensed or approved by a tribal agency or, for a child 18 years old or older 
36.25 	and under age 21, an unlicensed supervised independent living setting approved by the 
36.26 	agency responsible for the youth's care.
36.27 		Subd. 3.Minor parent. A child who is a minor parent in placement with the minor 
36.28 	parent's child in the same home is eligible for foster care benefits under this section. The 
36.29 	foster care benefit is limited to the minor parent, unless the legally responsible agency has 
36.30 	separate legal authority for placement of the minor parent's child.
36.31 		Subd. 4.Foster children ages 18 up to 21 placed in an unlicensed supervised 
36.32 	independent living setting. A foster child 18 years old or older and under age 21 who 
36.33 	maintains eligibility consistent with section 260C.451 and who is placed in an unlicensed 
36.34 	supervised independent living setting shall receive the level of benefit under section 
36.35 	256N.26.
37.1 		Subd. 5.Excluded activities. The basic and supplemental difficulty of care 
37.2 	payment represents costs for activities similar in nature to those expected of parents, 
37.3 	and does not cover services rendered by the licensed or tribally approved foster parent, 
37.4 	facility, or administrative costs or fees. The financially responsible agency may pay an 
37.5 	additional fee for specific services provided by the licensed foster parent or facility. A 
37.6 	foster parent or residence setting must distinguish such a service from the daily care of the 
37.7 	child as assessed through the process under section 256N.24.
37.8 		Subd. 6.Transition from pre-Northstar Care for Children program. (a) Section 
37.9 	256.82 establishes the pre-Northstar Care for Children foster care program for all children 
37.10 	residing in family foster care on December 31, 2014. Unless transitioned under paragraph 
37.11 	(b), a child in foster care with the same caregiver receives benefits under this pre-Northstar 
37.12 	Care for Children foster care program.
37.13 	(b) Transition from the pre-Northstar Care for Children foster care program to 
37.14 	Northstar Care for Children takes place on or after January 1, 2015, when the child:
37.15 	(1) moves to a different foster home or unlicensed supervised independent living 
37.16 	setting;
37.17 	(2) has permanent legal and physical custody transferred and, if applicable, meets 
37.18 	eligibility requirements in section 256N.22;
37.19 	(3) is adopted and, if applicable, meets eligibility requirements in section 256N.23; or
37.20 	(4) re-enters foster care after reunification or a trial home visit.
37.21 	(c) Upon becoming eligible, a foster child must be assessed according to section 
37.22 	256N.24 and then transitioned into Northstar Care for Children according to section 
37.23 	256N.28.

37.24 	Sec. 38. [256N.22] GUARDIANSHIP ASSISTANCE ELIGIBILITY.
37.25 		Subdivision 1.General eligibility requirements. (a) To be eligible for the 
37.26 	guardianship assistance under this section, there must be a judicial determination under 
37.27 	section 260C.515, subdivision 4, that a transfer of permanent legal and physical custody to 
37.28 	a relative is in the child's best interest. For a child under jurisdiction of a tribal court, a 
37.29 	judicial determination under a similar provision in tribal code indicating that a relative 
37.30 	will assume the duty and authority to provide care, control, and protection of a child who 
37.31 	is residing in foster care, and to make decisions regarding the child's education, health 
37.32 	care, and general welfare until adulthood, and that this is in the child's best interest is 
37.33 	considered equivalent. Additionally, a child must:
37.34 	(1) have been removed from the child's home pursuant to a voluntary placement 
37.35 	agreement or court order;
38.1 	(2)(i) have resided in foster care for at least six consecutive months in the home 
38.2 	of the prospective relative custodian; or
38.3 	(ii) have received an exemption from the requirement in item (i) from the court 
38.4 	based on a determination that:
38.5 	(A) an expedited move to permanency is in the child's best interest;
38.6 	(B) expedited permanency cannot be completed without provision of guardianship 
38.7 	assistance; and
38.8 	(C) the prospective relative custodian is uniquely qualified to meet the child's needs 
38.9 	on a permanent basis;
38.10 	(3) meet the agency determinations regarding permanency requirements in 
38.11 	subdivision 2;
38.12 	(4) meet the applicable citizenship and immigration requirements in subdivision 
38.13 	3; and
38.14 	(5) have been consulted regarding the proposed transfer of permanent legal and 
38.15 	physical custody to a relative, if the child is at least 14 years of age or is expected to attain 
38.16 	14 years of age prior to the transfer of permanent legal and physical custody; and
38.17 	(6) have a written, binding agreement under section 256N.25 among the caregiver or 
38.18 	caregivers, the financially responsible agency, and the commissioner established prior to 
38.19 	transfer of permanent legal and physical custody.
38.20 	(b) In addition to the requirements in paragraph (a), the child's prospective relative 
38.21 	custodian or custodians must meet the applicable background study requirements in 
38.22 	subdivision 4.
38.23 	(c) To be eligible for title IV-E guardianship assistance, a child must also meet any 
38.24 	additional criteria in section 473(d) of the Social Security Act. The sibling of a child 
38.25 	who meets the criteria for title IV-E guardianship assistance in section 473(d) of the 
38.26 	Social Security Act is eligible for title IV-E guardianship assistance if the child and 
38.27 	sibling are placed with the same prospective relative custodian or custodians, and the 
38.28 	legally responsible agency, relatives, and commissioner agree on the appropriateness of 
38.29 	the arrangement for the sibling. A child who meets all eligibility criteria except those 
38.30 	specific to title IV-E guardianship assistance is entitled to guardianship assistance paid 
38.31 	through funds other than title IV-E.
38.32 		Subd. 2.Agency determinations regarding permanency. (a) To be eligible for 
38.33 	guardianship assistance, the legally responsible agency must complete the following 
38.34 	determinations regarding permanency for the child prior to the transfer of permanent 
38.35 	legal and physical custody:
39.1 	(1) a determination that reunification and adoption are not appropriate permanency 
39.2 	options for the child; and
39.3 	(2) a determination that the child demonstrates a strong attachment to the prospective 
39.4 	relative custodian and the prospective relative custodian has a strong commitment to 
39.5 	caring permanently for the child.
39.6 	(b) The legally responsible agency shall document the determinations in paragraph 
39.7 	(a) and the supporting information for completing each determination in the case file and 
39.8 	make them available for review as requested by the financially responsible agency and the 
39.9 	commissioner during the guardianship assistance eligibility determination process.
39.10 		Subd. 3.Citizenship and immigration status. A child must be a citizen of the 
39.11 	United States or otherwise be eligible for federal public benefits according to the Personal 
39.12 	Responsibility and Work Opportunity Reconciliation Act of 1996, as amended, in order 
39.13 	to be eligible for guardianship assistance.
39.14 		Subd. 4.Background study. (a) A background study under section 245C.33 must 
39.15 	be completed on each prospective relative custodian and any other adult residing in the 
39.16 	home of the prospective relative custodian. A background study on the prospective 
39.17 	relative custodian or adult residing in the household previously completed under section 
39.18 	245C.04 for the purposes of foster care licensure may be used for the purposes of this 
39.19 	section, provided that the background study is current at the time of the application for 
39.20 	guardianship assistance.
39.21 	(b) If the background study reveals:
39.22 	(1) a felony conviction at any time for:
39.23 	(i) child abuse or neglect;
39.24 	(ii) spousal abuse;
39.25 	(iii) a crime against a child, including child pornography; or
39.26 	(iv) a crime involving violence, including rape, sexual assault, or homicide, but not 
39.27 	including other physical assault or battery; or
39.28 	(2) a felony conviction within the past five years for:
39.29 	(i) physical assault;
39.30 	(ii) battery; or
39.31 	(iii) a drug-related offense;
39.32 	the prospective relative custodian is prohibited from receiving guardianship assistance 
39.33 	on behalf of an otherwise eligible child.
39.34 		Subd. 5.Responsibility for determining guardianship assistance eligibility. The 
39.35 	commissioner shall determine eligibility for:
40.1 	(1) a child under the legal custody or responsibility of a Minnesota county social 
40.2 	service agency who would otherwise remain in foster care;
40.3 	(2) a Minnesota child under tribal court jurisdiction who would otherwise remain 
40.4 	in foster care; and
40.5 	(3) an Indian child being placed in Minnesota who meets title IV-E eligibility defined 
40.6 	in section 473(d) of the Social Security Act. The agency or entity assuming responsibility 
40.7 	for the child is responsible for the nonfederal share of the guardianship assistance payment.
40.8 		Subd. 6.Exclusions. (a) A child with a guardianship assistance agreement under 
40.9 	Northstar Care for Children is not eligible for the Minnesota family investment program 
40.10 	child-only grant under chapter 256J.
40.11 	(b) The commissioner shall not enter into a guardianship assistance agreement with:
40.12 	(1) a child's biological parent;
40.13 	(2) an individual assuming permanent legal and physical custody of a child or the 
40.14 	equivalent under tribal code without involvement of the child welfare system; or
40.15 	(3) an individual assuming permanent legal and physical custody of a child who was 
40.16 	placed in Minnesota by another state or a tribe outside of Minnesota.
40.17 		Subd. 7.Guardianship assistance eligibility determination. The financially 
40.18 	responsible agency shall prepare a guardianship assistance eligibility determination 
40.19 	for review and final approval by the commissioner. The eligibility determination must 
40.20 	be completed according to requirements and procedures and on forms prescribed by 
40.21 	the commissioner. Supporting documentation for the eligibility determination must be 
40.22 	provided to the commissioner. The financially responsible agency and the commissioner 
40.23 	must make every effort to establish a child's eligibility for title IV-E guardianship 
40.24 	assistance. A child who is determined to be eligible for guardianship assistance must 
40.25 	have a guardianship assistance agreement negotiated on the child's behalf according to 
40.26 	section 256N.25.
40.27 		Subd. 8.Termination of agreement. (a) A guardianship assistance agreement must 
40.28 	be terminated in any of the following circumstances:
40.29 	(1) the child has attained the age of 18, or up to age 21 when the child meets a 
40.30 	condition for extension in subdivision 11;
40.31 	(2) the child has not attained the age of 18 years of age, but the commissioner 
40.32 	determines the relative custodian is no longer legally responsible for support of the child;
40.33 	(3) the commissioner determines the relative custodian is no longer providing 
40.34 	financial support to the child up to age 21;
40.35 	(4) the death of the child; or
41.1 	(5) the relative custodian requests in writing termination of the guardianship 
41.2 	assistance agreement.
41.3 	(b) A relative custodian is considered no longer legally responsible for support of 
41.4 	the child in any of the following circumstances:
41.5 	(1) permanent legal and physical custody or guardianship of the child is transferred 
41.6 	to another individual;
41.7 	(2) death of the relative custodian under subdivision 9;
41.8 	(3) child enlists in the military;
41.9 	(4) child gets married; or
41.10 	(5) child is determined an emancipated minor through legal action.
41.11 		Subd. 9.Death of relative custodian or dissolution of custody. The guardianship 
41.12 	assistance agreement ends upon death or dissolution of permanent legal and physical 
41.13 	custody of both relative custodians in the case of assignment of custody to two individuals, 
41.14 	or the sole relative custodian in the case of assignment of custody to one individual. 
41.15 	Guardianship assistance eligibility may be continued according to subdivision 10.
41.16 		Subd. 10.Assigning a child's guardianship assistance to a court-appointed 
41.17 	guardian or custodian. (a) Guardianship assistance may be continued with the written 
41.18 	consent of the commissioner to an individual who is a guardian or custodian appointed by 
41.19 	a court for the child upon the death of both relative custodians in the case of assignment 
41.20 	of custody to two individuals, or the sole relative custodian in the case of assignment 
41.21 	of custody to one individual, unless the child is under the custody of a county, tribal, 
41.22 	or child-placing agency.
41.23 	(b) Temporary assignment of guardianship assistance may be approved for a 
41.24 	maximum of six consecutive months from the death of the relative custodian or custodians 
41.25 	as provided in paragraph (a) and must adhere to the policies and procedures prescribed by 
41.26 	the commissioner. If a court has not appointed a permanent legal guardian or custodian 
41.27 	within six months, the guardianship assistance must terminate and must not be resumed.
41.28 	(c) Upon assignment of assistance payments under this subdivision, assistance must 
41.29 	be provided from funds other than title IV-E.
41.30 		Subd. 11.Extension of guardianship assistance after age 18. (a) Under the 
41.31 	circumstances outlined in paragraph (e), a child may qualify for extension of the 
41.32 	guardianship assistance agreement beyond the date the child attains age 18, up to the 
41.33 	date the child attains the age of 21.
41.34 	(b) A request for extension of the guardianship assistance agreement must be 
41.35 	completed in writing and submitted, including all supporting documentation, by the 
42.1 	relative custodian to the commissioner at least 60 calendar days prior to the date that the 
42.2 	current agreement will terminate.
42.3 	(c) A signed amendment to the current guardianship assistance agreement must be 
42.4 	fully executed between the relative custodian and the commissioner at least ten business 
42.5 	days prior to the termination of the current agreement. The request for extension and 
42.6 	the fully executed amendment must be made according to requirements and procedures 
42.7 	prescribed by the commissioner, including documentation of eligibility, and on forms 
42.8 	prescribed by the commissioner.
42.9 	(d) If an agency is certifying a child for guardianship assistance and the child will 
42.10 	attain the age of 18 within 60 calendar days of submission, the request for extension must 
42.11 	be completed in writing and submitted, including all supporting documentation, with 
42.12 	the guardianship assistance application.
42.13 	(e) A child who has attained the age of 16 prior to the effective date of the 
42.14 	guardianship assistance agreement is eligible for extension of the agreement up to the 
42.15 	date the child attains age 21 if the child:
42.16 	(1) is dependent on the relative custodian for care and financial support; and
42.17 	(2) meets at least one of the following conditions:
42.18 	(i) is completing a secondary education program or a program leading to an 
42.19 	equivalent credential;
42.20 	(ii) is enrolled in an institution which provides postsecondary or vocational education;
42.21 	(iii) is participating in a program or activity designed to promote or remove barriers 
42.22 	to employment;
42.23 	(iv) is employed for at least 80 hours per month; or
42.24 	(v) is incapable of doing any of the activities described in items (i) to (iv) due to 
42.25 	a medical condition where incapability is supported by professional documentation 
42.26 	according to the requirements and procedures prescribed by the commissioner.
42.27 	(f) A child who has not attained the age of 16 prior to the effective date of the 
42.28 	guardianship assistance agreement is eligible for extension of the guardianship assistance 
42.29 	agreement up to the date the child attains the age of 21 if the child is:
42.30 	(1) dependent on the relative custodian for care and financial support; and
42.31 	(2) possesses a physical or mental disability which impairs the capacity for 
42.32 	independent living and warrants continuation of financial assistance, as determined by 
42.33 	the commissioner.
42.34 		Subd. 12.Beginning guardianship assistance component of Northstar Care for 
42.35 	Children. Effective November 27, 2014, a child who meets the eligibility criteria for 
42.36 	guardianship assistance in subdivision 1 may have a guardianship assistance agreement 
43.1 	negotiated on the child's behalf according to section 256N.25. The effective date of the 
43.2 	agreement must be January 1, 2015, or the date of the court order transferring permanent 
43.3 	legal and physical custody, whichever is later. Except as provided under section 256N.26, 
43.4 	subdivision 1, paragraph (c), the rate schedule for an agreement under this subdivision 
43.5 	is determined under section 256N.26 based on the age of the child on the date that the 
43.6 	prospective relative custodian signs the agreement.
43.7 		Subd. 13.Transition to guardianship assistance under Northstar Care for 
43.8 	Children. The commissioner may execute guardianship assistance agreements for a child 
43.9 	with a relative custody agreement under section 257.85 executed on the child's behalf 
43.10 	on or before November 26, 2014, in accordance with the priorities outlined in section 
43.11 	256N.28, subdivision 7, paragraph (b). To facilitate transition into the guardianship 
43.12 	assistance program, the commissioner may waive any guardianship assistance eligibility 
43.13 	requirements for a child with a relative custody agreement under section 257.85 executed 
43.14 	on the child's behalf on or before November 26, 2014. Agreements negotiated under 
43.15 	this subdivision must be done according to the process outlined in section 256N.28, 
43.16 	subdivision 7. The maximum rate used in the negotiation process for an agreement under 
43.17 	this subdivision must be as outlined in section 256N.28, subdivision 7.

43.18 	Sec. 39. [256N.23] ADOPTION ASSISTANCE ELIGIBILITY.
43.19 		Subdivision 1.General eligibility requirements. (a) To be eligible for adoption 
43.20 	assistance under this section, a child must:
43.21 	(1) be determined to be a child with special needs under subdivision 2;
43.22 	(2) meet the applicable citizenship and immigration requirements in subdivision 3;
43.23 	(3)(i) meet the criteria in section 473 of the Social Security Act; or
43.24 	(ii) have had foster care payments paid on the child's behalf while in out-of-home 
43.25 	placement through the county or tribe and be either under the guardianship of the 
43.26 	commissioner or under the jurisdiction of a Minnesota tribe and adoption, according to 
43.27 	tribal law, is in the child's documented permanency plan; and
43.28 	(4) have a written, binding agreement under section 256N.25 among the adoptive 
43.29 	parent, the financially responsible agency, or if there is no financially responsible agency, 
43.30 	the agency designated by the commissioner, and the commissioner established prior to 
43.31 	finalization of the adoption.
43.32 	(b) In addition to the requirements in paragraph (a), an eligible child's adoptive parent 
43.33 	or parents must meet the applicable background study requirements in subdivision 4.
43.34 	(c) A child who meets all eligibility criteria except those specific to title IV-E adoption 
43.35 	assistance shall receive adoption assistance paid through funds other than title IV-E.
44.1 		Subd. 2.Special needs determination. (a) A child is considered a child with 
44.2 	special needs under this section if the requirements in paragraphs (b) to (g) are met.
44.3 	(b) There must be a determination that the child must not or should not be returned 
44.4 	to the home of the child's parents as evidenced by:
44.5 	(1) a court-ordered termination of parental rights;
44.6 	(2) a petition to terminate parental rights;
44.7 	(3) consent of parent to adoption accepted by the court under chapter 260C;
44.8 	(4) in circumstances when tribal law permits the child to be adopted without a 
44.9 	termination of parental rights, a judicial determination by a tribal court indicating the valid 
44.10 	reason why the child cannot or should not return home;
44.11 	(5) a voluntary relinquishment under section 259.25 or 259.47 or, if relinquishment 
44.12 	occurred in another state, the applicable laws in that state; or
44.13 	(6) the death of the legal parent or parents if the child has two legal parents.
44.14 	(c) There exists a specific factor or condition of which it is reasonable to conclude 
44.15 	that the child cannot be placed with adoptive parents without providing adoption 
44.16 	assistance as evidenced by:
44.17 	(1) a determination by the Social Security Administration that the child meets all 
44.18 	medical or disability requirements of title XVI of the Social Security Act with respect to 
44.19 	eligibility for Supplemental Security Income benefits;
44.20 	(2) a documented physical, mental, emotional, or behavioral disability not covered 
44.21 	under clause (1);
44.22 	(3) a member of a sibling group being adopted at the same time by the same parent;
44.23 	(4) an adoptive placement in the home of a parent who previously adopted a sibling 
44.24 	for whom they receive adoption assistance; or
44.25 	(5) documentation that the child is an at-risk child.
44.26 	(d) A reasonable but unsuccessful effort must have been made to place the child 
44.27 	with adoptive parents without providing adoption assistance as evidenced by:
44.28 	(1) a documented search for an appropriate adoptive placement; or
44.29 	(2) a determination by the commissioner that a search under clause (1) is not in the 
44.30 	best interests of the child.
44.31 	(e) The requirement for a documented search for an appropriate adoptive placement 
44.32 	under paragraph (d), including the registration of the child with the state adoption 
44.33 	exchange and other recruitment methods under paragraph (f), must be waived if:
44.34 	(1) the child is being adopted by a relative and it is determined by the child-placing 
44.35 	agency that adoption by the relative is in the best interests of the child;
45.1 	(2) the child is being adopted by a foster parent with whom the child has developed 
45.2 	significant emotional ties while in the foster parent's care as a foster child and it is 
45.3 	determined by the child-placing agency that adoption by the foster parent is in the best 
45.4 	interests of the child; or
45.5 	(3) the child is being adopted by a parent that previously adopted a sibling of the 
45.6 	child, and it is determined by the child-placing agency that adoption by this parent is 
45.7 	in the best interests of the child.
45.8 	For an Indian child covered by the Indian Child Welfare Act, a waiver must not be 
45.9 	granted unless the child-placing agency has complied with the placement preferences 
45.10 	required by the Indian Child Welfare Act, United States Code, title 25, section 1915(a).
45.11 	(f) To meet the requirement of a documented search for an appropriate adoptive 
45.12 	placement under paragraph (d), clause (1), the child-placing agency minimally must:
45.13 	(1) conduct a relative search as required by section 260C.221 and give consideration 
45.14 	to placement with a relative, as required by section 260C.212, subdivision 2;
45.15 	(2) comply with the placement preferences required by the Indian Child Welfare Act 
45.16 	when the Indian Child Welfare Act, United States Code, title 25, section 1915(a), applies;
45.17 	(3) locate prospective adoptive families by registering the child on the state adoption 
45.18 	exchange, as required under section 259.75; and
45.19 	(4) if registration with the state adoption exchange does not result in the identification 
45.20 	of an appropriate adoptive placement, the agency must employ additional recruitment 
45.21 	methods prescribed by the commissioner.
45.22 	(g) Once the legally responsible agency has determined that placement with an 
45.23 	identified parent is in the child's best interests and made full written disclosure about the 
45.24 	child's social and medical history, the agency must ask the prospective adoptive parent if 
45.25 	the prospective adoptive parent is willing to adopt the child without receiving adoption 
45.26 	assistance under this section. If the identified parent is either unwilling or unable to 
45.27 	adopt the child without adoption assistance, the legally responsible agency must provide 
45.28 	documentation as prescribed by the commissioner to fulfill the requirement to make a 
45.29 	reasonable effort to place the child without adoption assistance. If the identified parent is 
45.30 	willing to adopt the child without adoption assistance, the parent must provide a written 
45.31 	statement to this effect to the legally responsible agency and the statement must be 
45.32 	maintained in the permanent adoption record of the legally responsible agency. For children 
45.33 	under guardianship of the commissioner, the legally responsible agency shall submit a copy 
45.34 	of this statement to the commissioner to be maintained in the permanent adoption record.
45.35 		Subd. 3.Citizenship and immigration status. (a) A child must be a citizen of the 
45.36 	United States or otherwise eligible for federal public benefits according to the Personal 
46.1 	Responsibility and Work Opportunity Reconciliation Act of 1996, as amended, in order to 
46.2 	be eligible for the title IV-E adoption assistance program.
46.3 	(b) A child must be a citizen of the United States or meet the qualified alien 
46.4 	requirements as defined in the Personal Responsibility and Work Opportunity 
46.5 	Reconciliation Act of 1996, as amended, in order to be eligible for adoption assistance 
46.6 	paid through funds other than title IV-E.
46.7 		Subd. 4.Background study. A background study under section 259.41 must be 
46.8 	completed on each prospective adoptive parent. If the background study reveals:
46.9 	(1) a felony conviction at any time for:
46.10 	(i) child abuse or neglect;
46.11 	(ii) spousal abuse;
46.12 	(iii) a crime against a child, including child pornography; or
46.13 	(iv) a crime involving violence, including rape, sexual assault, or homicide, but not 
46.14 	including other physical assault or battery; or
46.15 	(2) a felony conviction within the past five years for:
46.16 	(i) physical assault;
46.17 	(ii) battery; or
46.18 	(iii) a drug-related offense;
46.19 	the adoptive parent is prohibited from receiving adoption assistance on behalf of an 
46.20 	otherwise eligible child.
46.21 		Subd. 5.Responsibility for determining adoption assistance eligibility. The 
46.22 	commissioner must determine eligibility for:
46.23 	(1) a child under the guardianship of the commissioner who would otherwise remain 
46.24 	in foster care;
46.25 	(2) a child who is not under the guardianship of the commissioner who meets title 
46.26 	IV-E eligibility defined in section 473 of the Social Security Act and no state agency has 
46.27 	legal responsibility for placement and care of the child;
46.28 	(3) a Minnesota child under tribal jurisdiction who would otherwise remain in foster 
46.29 	care; and
46.30 	(4) an Indian child being placed in Minnesota who meets title IV-E eligibility defined 
46.31 	in section 473 of the Social Security Act. The agency or entity assuming responsibility for 
46.32 	the child is responsible for the nonfederal share of the adoption assistance payment.
46.33 		Subd. 6.Exclusions. The commissioner must not enter into an adoption assistance 
46.34 	agreement with the following individuals:
46.35 	(1) a child's biological parent or stepparent;
47.1 	(2) a child's relative under section 260C.007, subdivision 27, with whom the child 
47.2 	resided immediately prior to child welfare involvement unless:
47.3 	(i) the child was in the custody of a Minnesota county or tribal agency pursuant to 
47.4 	an order under chapter 260C or equivalent provisions of tribal code and the agency had 
47.5 	placement and care responsibility for permanency planning for the child; and
47.6 	(ii) the child is under guardianship of the commissioner of human services according 
47.7 	to the requirements of section 260C.325, subdivision 1 or 3, or is a ward of a Minnesota 
47.8 	tribal court after termination of parental rights, suspension of parental rights, or a finding 
47.9 	by the tribal court that the child cannot safely return to the care of the parent;
47.10 	(3) an individual adopting a child who is the subject of a direct adoptive placement 
47.11 	under section 259.47 or the equivalent in tribal code;
47.12 	(4) a child's legal custodian or guardian who is now adopting the child; or
47.13 	(5) an individual who is adopting a child who is not a citizen or resident of the 
47.14 	United States and was either adopted in another country or brought to the United States 
47.15 	for the purposes of adoption.
47.16 		Subd. 7.Adoption assistance eligibility determination. (a) The financially 
47.17 	responsible agency shall prepare an adoption assistance eligibility determination for 
47.18 	review and final approval by the commissioner. When there is no financially responsible 
47.19 	agency, the adoption assistance eligibility determination must be completed by the 
47.20 	agency designated by the commissioner. The eligibility determination must be completed 
47.21 	according to requirements and procedures and on forms prescribed by the commissioner. 
47.22 	The financially responsible agency and the commissioner shall make every effort to 
47.23 	establish a child's eligibility for title IV-E adoption assistance. Documentation from a 
47.24 	qualified expert for the eligibility determination must be provided to the commissioner 
47.25 	to verify that a child meets the special needs criteria in subdivision 2. A child who 
47.26 	is determined to be eligible for adoption assistance must have an adoption assistance 
47.27 	agreement negotiated on the child's behalf according to section 256N.25.
47.28 	(b) Documentation from a qualified expert of a disability is limited to evidence 
47.29 	deemed appropriate by the commissioner and must be submitted to the commissioner with 
47.30 	the eligibility determination. Examples of appropriate documentation include, but are not 
47.31 	limited to, medical records, psychological assessments, educational or early childhood 
47.32 	evaluations, court findings, and social and medical history.
47.33 	(c) Documentation that the child is at risk of developing physical, mental, emotional, 
47.34 	or behavioral disabilities must be submitted according to policies and procedures 
47.35 	prescribed by the commissioner.
48.1 		Subd. 8.Termination of agreement. (a) An adoption assistance agreement must 
48.2 	terminate in any of the following circumstances:
48.3 	(1) the child has attained the age of 18, or up to age 21 when the child meets a 
48.4 	condition for extension in subdivision 12;
48.5 	(2) the child has not attained the age of 18, but the commissioner determines the 
48.6 	adoptive parent is no longer legally responsible for support of the child;
48.7 	(3) the commissioner determines the adoptive parent is no longer providing financial 
48.8 	support to the child up to age 21;
48.9 	(4) the death of the child; or
48.10 	(5) the adoptive parent requests in writing the termination of the adoption assistance 
48.11 	agreement.
48.12 	(b) An adoptive parent is considered no longer legally responsible for support of the 
48.13 	child in any of the following circumstances:
48.14 	(1) parental rights to the child are legally terminated or a court accepted the parent's 
48.15 	consent to adoption under chapter 260C;
48.16 	(2) permanent legal and physical custody or guardianship of the child is transferred 
48.17 	to another individual;
48.18 	(3) death of the adoptive parent under subdivision 9;
48.19 	(4) the child enlists in the military;
48.20 	(5) the child gets married; or
48.21 	(6) the child is determined an emancipated minor through legal action.
48.22 		Subd. 9.Death of adoptive parent or adoption dissolution. The adoption 
48.23 	assistance agreement ends upon death or termination of parental rights of both adoptive 
48.24 	parents in the case of a two-parent adoption, or the sole adoptive parent in the case of 
48.25 	a single-parent adoption. The child's adoption assistance eligibility may be continued 
48.26 	according to subdivision 10.
48.27 		Subd. 10.Continuing a child's title IV-E adoption assistance in a subsequent 
48.28 	adoption. (a) The child maintains eligibility for title IV-E adoption assistance in a 
48.29 	subsequent adoption if the following criteria are met:
48.30 	(1) the child is determined to be a child with special needs as outlined in subdivision 
48.31 	2; and
48.32 	(2) the subsequent adoptive parent resides in Minnesota.
48.33 	(b) If a child had a title IV-E adoption assistance agreement in effect prior to the 
48.34 	death of the adoptive parent or dissolution of the adoption, and the subsequent adoptive 
48.35 	parent resides outside of Minnesota, the commissioner is not responsible for determining 
48.36 	whether the child meets the definition of special needs, entering into the adoption 
49.1 	assistance agreement, and making any adoption assistance payments outlined in the new 
49.2 	agreement unless a state agency in Minnesota has responsibility for placement and care of 
49.3 	the child at the time of the subsequent adoption. If there is no state agency in Minnesota 
49.4 	that has responsibility for placement and care of the child at the time of the subsequent 
49.5 	adoption, the public child welfare agency in the subsequent adoptive parent's residence is 
49.6 	responsible for determining whether the child meets the definition of special needs and 
49.7 	entering into the adoption assistance agreement.
49.8 		Subd. 11.Assigning a child's adoption assistance to a court-appointed guardian 
49.9 	or custodian. (a) State-funded adoption assistance may be continued with the written 
49.10 	consent of the commissioner to an individual who is a guardian appointed by a court for 
49.11 	the child upon the death of both the adoptive parents in the case of a two-parent adoption, 
49.12 	or the sole adoptive parent in the case of a single-parent adoption, unless the child is 
49.13 	under the custody of a state agency.
49.14 	(b) Temporary assignment of adoption assistance may be approved by the 
49.15 	commissioner for a maximum of six consecutive months from the death of the adoptive 
49.16 	parent or parents under subdivision 9 and must adhere to the requirements and procedures 
49.17 	prescribed by the commissioner. If, within six months, the child has not been adopted by a 
49.18 	person agreed upon by the commissioner, or a court has not appointed a permanent legal 
49.19 	guardian under section 260C.325, 525.5-313, or similar law of another jurisdiction, the 
49.20 	adoption assistance must terminate.
49.21 	(c) Upon assignment of payments under this subdivision, assistance must be from 
49.22 	funds other than title IV-E.
49.23 		Subd. 12.Extension of adoption assistance agreement. (a) Under certain limited 
49.24 	circumstances a child may qualify for extension of the adoption assistance agreement 
49.25 	beyond the date the child attains age 18, up to the date the child attains the age of 21.
49.26 	(b) A request for extension of the adoption assistance agreement must be completed 
49.27 	in writing and submitted, including all supporting documentation, by the adoptive parent 
49.28 	to the commissioner at least 60 calendar days prior to the date that the current agreement 
49.29 	will terminate.
49.30 	(c) A signed amendment to the current adoption assistance agreement must be 
49.31 	fully executed between the adoptive parent and the commissioner at least ten business 
49.32 	days prior to the termination of the current agreement. The request for extension and the 
49.33 	fully executed amendment must be made according to the requirements and procedures 
49.34 	prescribed by the commissioner, including documentation of eligibility, on forms 
49.35 	prescribed by the commissioner.
50.1 	(d) If an agency is certifying a child for adoption assistance and the child will attain 
50.2 	the age of 18 within 60 calendar days of submission, the request for extension must be 
50.3 	completed in writing and submitted, including all supporting documentation, with the 
50.4 	adoption assistance application.
50.5 	(e) A child who has attained the age of 16 prior to the finalization of the child's 
50.6 	adoption is eligible for extension of the adoption assistance agreement up to the date the 
50.7 	child attains age 21 if the child is:
50.8 	(1) dependent on the adoptive parent for care and financial support; and
50.9 	(2)(i) completing a secondary education program or a program leading to an 
50.10 	equivalent credential;
50.11 	(ii) enrolled in an institution that provides postsecondary or vocational education;
50.12 	(iii) participating in a program or activity designed to promote or remove barriers to 
50.13 	employment;
50.14 	(iv) employed for at least 80 hours per month; or
50.15 	(v) incapable of doing any of the activities described in items (i) to (iv) due to 
50.16 	a medical condition where incapability is supported by documentation from an expert 
50.17 	according to the requirements and procedures prescribed by the commissioner.
50.18 	(f) A child who has not attained the age of 16 prior to finalization of the child's 
50.19 	adoption is eligible for extension of the adoption assistance agreement up to the date the 
50.20 	child attains the age of 21 if the child is:
50.21 	(1) dependent on the adoptive parent for care and financial support; and
50.22 	(2)(i) enrolled in a secondary education program or a program leading to the 
50.23 	equivalent; or
50.24 	(ii) possesses a physical or mental disability that impairs the capacity for independent 
50.25 	living and warrants continuation of financial assistance as determined by the commissioner.
50.26 		Subd. 13.Beginning adoption assistance under Northstar Care for Children.
 50.27 	Effective November 27, 2014, a child who meets the eligibility criteria for adoption 
50.28 	assistance in subdivision 1, may have an adoption assistance agreement negotiated on 
50.29 	the child's behalf according to section 256N.25, and the effective date of the agreement 
50.30 	must be January 1, 2015, or the date of the court order finalizing the adoption, whichever 
50.31 	is later. Except as provided under section 256N.26, subdivision 1, paragraph (c), the 
50.32 	maximum rate schedule for the agreement must be determined according to section 
50.33 	256N.26 based on the age of the child on the date that the prospective adoptive parent or 
50.34 	parents sign the agreement.
50.35 		Subd. 14.Transition to adoption assistance under Northstar Care for Children.
 50.36 	The commissioner may offer adoption assistance agreements under this chapter to a 
51.1 	child with an adoption assistance agreement under chapter 259A executed on the child's 
51.2 	behalf on or before November 26, 2014, according to the priorities outlined in section 
51.3 	256N.28, subdivision 7, paragraph (b). To facilitate transition into the Northstar Care for 
51.4 	Children adoption assistance program, the commissioner has the authority to waive any 
51.5 	Northstar Care for Children adoption assistance eligibility requirements for a child with 
51.6 	an adoption assistance agreement under chapter 259A executed on the child's behalf on 
51.7 	or before November 26, 2014. Agreements negotiated under this subdivision must be in 
51.8 	accordance with the process in section 256N.28, subdivision 7. The maximum rate used in 
51.9 	the negotiation process for an agreement under this subdivision must be as outlined in 
51.10 	section 256N.28, subdivision 7.

51.11 	Sec. 40. [256N.24] ASSESSMENTS.
51.12 		Subdivision 1.Assessment. (a) Each child eligible under sections 256N.21, 
51.13 	256N.22, and 256N.23, must be assessed to determine the benefits the child may receive 
51.14 	under section 256N.26, in accordance with the assessment tool, process, and requirements 
51.15 	specified in subdivision 2.
51.16 	(b) If an agency applies the emergency foster care rate for initial placement under 
51.17 	section 256N.26, the agency may wait up to 30 days to complete the initial assessment.
51.18 	(c) Unless otherwise specified in paragraph (d), a child must be assessed at the basic 
51.19 	level, level B, or one of ten supplemental difficulty of care levels, levels C to L.
51.20 	(d) An assessment must not be completed for:
51.21 	(1) a child eligible for guardianship assistance under section 256N.22 or adoption 
51.22 	assistance under section 256N.23 who is determined to be an at-risk child. A child under 
51.23 	this clause must be assigned level A under section 256N.26, subdivision 1; and
51.24 	(2) a child transitioning into Northstar Care for Children under section 256N.28, 
51.25 	subdivision 7, unless the commissioner determines an assessment is appropriate.
51.26 		Subd. 2.Establishment of assessment tool, process, and requirements. Consistent 
51.27 	with sections 256N.001 to 256N.28, the commissioner shall establish an assessment tool 
51.28 	to determine the basic and supplemental difficulty of care, and shall establish the process 
51.29 	to be followed and other requirements, including appropriate documentation, when 
51.30 	conducting the initial assessment of a child entering Northstar Care for Children or when 
51.31 	the special assessment and reassessments may be needed for children continuing in the 
51.32 	program. The assessment tool must take into consideration the strengths and needs of the 
51.33 	child and the extra parenting provided by the caregiver to meet the child's needs.
52.1 		Subd. 3.Child care allowance portion of assessment. (a) The assessment tool 
52.2 	established under subdivision 2 must include consideration of the caregiver's need for 
52.3 	child care under this subdivision, with greater consideration for children of younger ages.
52.4 	(b) The child's assessment must include consideration of the caregiver's need for 
52.5 	child care if the following criteria are met:
52.6 	(1) the child is under age 13;
52.7 	(2) all available adult caregivers are employed or attending educational or vocational 
52.8 	training programs;
52.9 	(3) the caregiver does not receive child care assistance for the child under chapter 
52.10 	119B.
52.11 	(c) For children younger than seven years of age, the level determined by the 
52.12 	non-child care portions of the assessment must be adjusted based on the average number 
52.13 	of hours child care is needed each week due to employment or attending a training or 
52.14 	educational program as follows:
52.15 	(1) fewer than ten hours or if the caregiver is participating in the child care assistance 
52.16 	program under chapter 119B, no adjustment;
52.17 	(2) ten to 19 hours or if needed during school summer vacation or equivalent only, 
52.18 	increase one level;
52.19 	(3) 20 to 29 hours, increase two levels;
52.20 	(4) 30 to 39 hours, increase three levels; and
52.21 	(5) 40 or more hours, increase four levels.
52.22 	(d) For children at least seven years of age but younger than 13, the level determined 
52.23 	by the non-child care portions of the assessment must be adjusted based on the average 
52.24 	number of hours child care is needed each week due to employment or attending a training 
52.25 	or educational program as follows:
52.26 	(1) fewer than 20 hours, needed during school summer vacation or equivalent only, 
52.27 	or if the caregiver is participating in the child care assistance program under chapter 
52.28 	119B, no adjustment;
52.29 	(2) 20 to 39 hours, increase one level; and
52.30 	(3) 40 or more hours, increase two levels.
52.31 	(e) When the child attains the age of seven, the child care allowance must be reduced 
52.32 	by reducing the level to that available under paragraph (d). For children in foster care, 
52.33 	benefits under section 256N.26 must be automatically reduced when the child turns seven. 
52.34 	For children who receive guardianship assistance or adoption assistance, agreements must 
52.35 	include similar provisions to ensure that the benefit provided to these children does not 
52.36 	exceed the benefit provided to children in foster care.
53.1 	(f) When the child attains the age of 13, the child care allowance must be eliminated 
53.2 	by reducing the level to that available prior to any consideration of the caregiver's need 
53.3 	for child care. For children in foster care, benefits under section 256N.26 must be 
53.4 	automatically reduced when the child attains the age of 13. For children who receive 
53.5 	guardianship assistance or adoption assistance, agreements must include similar provisions 
53.6 	to ensure that the benefit provided to these children does not exceed the benefit provided 
53.7 	to children in foster care.
53.8 	(g) The child care allowance under this subdivision is not available to caregivers 
53.9 	who receive the child care assistance under chapter 119B. A caregiver receiving a child 
53.10 	care allowance under this subdivision must notify the commissioner if the caregiver 
53.11 	subsequently receives the child care assistance program under chapter 119B, and the 
53.12 	level must be reduced to that available prior to any consideration of the caregiver's need 
53.13 	for child care.
53.14 	(h) In establishing the assessment tool under subdivision 2, the commissioner must 
53.15 	design the tool so that the levels applicable to the non-child care portions of the assessment 
53.16 	at a given age accommodate the requirements of this subdivision.
53.17 		Subd. 4.Timing of initial assessment. For a child entering Northstar Care for 
53.18 	Children under section 256N.21, the initial assessment must be completed within 30 
53.19 	days after the child is placed in foster care.
53.20 		Subd. 5.Completion of initial assessment. (a) The assessment must be completed 
53.21 	in consultation with the child's caregiver. Face-to-face contact with the caregiver is not 
53.22 	required to complete the assessment.
53.23 	(b) Initial assessments are completed for foster children, eligible under section 
53.24 	256N.21.
53.25 	(c) The initial assessment must be completed by the financially responsible agency, 
53.26 	in consultation with the legally responsible agency if different, within 30 days of the 
53.27 	child's placement in foster care.
53.28 	(d) If the foster parent is unable or unwilling to cooperate with the assessment process, 
53.29 	the child shall be assigned the basic level, level B under section 256N.26, subdivision 3.
53.30 	(e) Notice to the foster parent shall be provided as specified in subdivision 12.
53.31 		Subd. 6.Timing of special assessment. (a) A special assessment is required as part 
53.32 	of the negotiation of the guardianship assistance agreement under section 256N.22 if:
53.33 	(1) the child was not placed in foster care with the prospective relative custodian 
53.34 	or custodians prior to the negotiation of the guardianship assistance agreement under 
53.35 	section 256N.25; or
53.36 	(2) any requirement for reassessment under subdivision 8 is met.
54.1 	(b) A special assessment is required as part of the negotiation of the adoption 
54.2 	assistance agreement under section 256N.23 if:
54.3 	(1) the child was not placed in foster care with the prospective adoptive parent 
54.4 	or parents prior to the negotiation of the adoption assistance agreement under section 
54.5 	256N.25; or
54.6 	(2) any requirement for reassessment under subdivision 8 is met.
54.7 	(c) A special assessment is required when a child transitions from a pre-Northstar 
54.8 	Care for Children program into Northstar Care for Children if the commissioner 
54.9 	determines that a special assessment is appropriate instead of assigning the transition child 
54.10 	to a level under section 256N.28.
54.11 	(d) The special assessment must be completed prior to the establishment of a 
54.12 	guardianship assistance or adoption assistance agreement on behalf of the child.
54.13 		Subd. 7.Completing the special assessment. (a) The special assessment must 
54.14 	be completed in consultation with the child's caregiver. Face-to-face contact with the 
54.15 	caregiver is not required to complete the special assessment.
54.16 	(b) If a new special assessment is required prior to the effective date of the 
54.17 	guardianship assistance agreement, it must be completed by the financially responsible 
54.18 	agency, in consultation with the legally responsible agency if different. If the prospective 
54.19 	relative custodian is unable or unwilling to cooperate with the special assessment process, 
54.20 	the child shall be assigned the basic level, level B under section 256N.26, subdivision 3, 
54.21 	unless the child is known to be an at-risk child, in which case, the child shall be assigned 
54.22 	level A under section 256N.26, subdivision 1.
54.23 	(c) If a special assessment is required prior to the effective date of the adoption 
54.24 	assistance agreement, it must be completed by the financially responsible agency, in 
54.25 	consultation with the legally responsible agency if different. If there is no financially 
54.26 	responsible agency, the special assessment must be completed by the agency designated by 
54.27 	the commissioner. If the prospective adoptive parent is unable or unwilling to cooperate 
54.28 	with the special assessment process, the child must be assigned the basic level, level B 
54.29 	under section 256N.26, subdivision 3, unless the child is known to be an at-risk child, in 
54.30 	which case, the child shall be assigned level A under section 256N.26, subdivision 1.
54.31 	(d) Notice to the prospective relative custodians or prospective adoptive parents 
54.32 	must be provided as specified in subdivision 12.
54.33 		Subd. 8.Timing of and requests for reassessments. Reassessments for an eligible 
54.34 	child must be completed within 30 days of any of the following events:
54.35 	(1) for a child in continuous foster care, when six months have elapsed since 
54.36 	completion of the last assessment;
55.1 	(2) for a child in continuous foster care, change of placement location;
55.2 	(3) for a child in foster care, at the request of the financially responsible agency or 
55.3 	legally responsible agency;
55.4 	(4) at the request of the commissioner; or
55.5 	(5) at the request of the caregiver under subdivision 9.
55.6 		Subd. 9.Caregiver requests for reassessments. (a) A caregiver may initiate 
55.7 	a reassessment request for an eligible child in writing to the financially responsible 
55.8 	agency or, if there is no financially responsible agency, the agency designated by the 
55.9 	commissioner. The written request must include the reason for the request and the 
55.10 	name, address, and contact information of the caregivers. For an eligible child with a 
55.11 	guardianship assistance or adoption assistance agreement, the caregiver may request a 
55.12 	reassessment if at least six months have elapsed since any previously requested review. 
55.13 	For an eligible foster child, a foster parent may request reassessment in less than six 
55.14 	months with written documentation that there have been significant changes in the child's 
55.15 	needs that necessitate an earlier reassessment.
55.16 	(b) A caregiver may request a reassessment of an at-risk child for whom a 
55.17 	guardianship assistance or adoption assistance agreement has been executed if the 
55.18 	caregiver has satisfied the commissioner with written documentation from a qualified 
55.19 	expert that the potential disability upon which eligibility for the agreement was based has 
55.20 	manifested itself, consistent with section 256N.25, subdivision 3, paragraph (b).
55.21 	(c) If the reassessment cannot be completed within 30 days of the caregiver's request, 
55.22 	the agency responsible for reassessment must notify the caregiver of the reason for the 
55.23 	delay and a reasonable estimate of when the reassessment can be completed.
55.24 		Subd. 10.Completion of reassessment. (a) The reassessment must be completed 
55.25 	in consultation with the child's caregiver. Face-to-face contact with the caregiver is not 
55.26 	required to complete the reassessment.
55.27 	(b) For foster children eligible under section 256N.21, reassessments must be 
55.28 	completed by the financially responsible agency, in consultation with the legally 
55.29 	responsible agency if different.
55.30 	(c) If reassessment is required after the effective date of the guardianship assistance 
55.31 	agreement, the reassessment must be completed by the financially responsible agency.
55.32 	(d) If a reassessment is required after the effective date of the adoption assistance 
55.33 	agreement, it must be completed by the financially responsible agency or, if there is no 
55.34 	financially responsible agency, the agency designated by the commissioner.
55.35 	(e) If the child's caregiver is unable or unwilling to cooperate with the reassessment, 
55.36 	the child must be assessed at level B under section 256N.26, subdivision 3, unless the 
56.1 	child has an adoption assistance or guardianship assistance agreement in place and is 
56.2 	known to be an at-risk child, in which case the child must be assessed at level A under 
56.3 	section 256N.26, subdivision 1.
56.4 		Subd. 11.Approval of initial assessments, special assessments, and 
56.5 	reassessments. (a) Any agency completing initial assessments, special assessments, or 
56.6 	reassessments must designate one or more supervisors or other staff to examine and approve 
56.7 	assessments completed by others in the agency under subdivision 2. The person approving 
56.8 	an assessment must not be the case manager or staff member completing that assessment.
56.9 	(b) In cases where a special assessment or reassessment for guardian assistance 
56.10 	and adoption assistance is required under subdivision 7 or 10, the commissioner shall 
56.11 	review and approve the assessment as part of the eligibility determination process outlined 
56.12 	in section 256N.22, subdivision 7, for guardianship assistance, or section 256N.23, 
56.13 	subdivision 7, for adoption assistance. The assessment determines the maximum for the 
56.14 	negotiated agreement amount under section 256N.25.
56.15 	(c) The new rate is effective the calendar month that the assessment is approved, 
56.16 	or the effective date of the agreement, whichever is later.
56.17 		Subd. 12.Notice for caregiver. (a) The agency as defined in subdivision 5 or 10 
56.18 	that is responsible for completing the initial assessment or reassessment must provide the 
56.19 	child's caregiver with written notice of the initial assessment or reassessment.
56.20 	(b) Initial assessment notices must be sent within 15 days of completion of the initial 
56.21 	assessment and must minimally include the following:
56.22 	(1) a summary of the child's completed individual assessment used to determine the 
56.23 	initial rating;
56.24 	(2) statement of rating and benefit level;
56.25 	(3) statement of the circumstances under which the agency must reassess the child;
56.26 	(4) procedure to seek reassessment;
56.27 	(5) notice that the caregiver has the right to a fair hearing review of the assessment 
56.28 	and how to request a fair hearing, consistent with section 256.045, subdivision 3; and
56.29 	(6) the name, telephone number, and e-mail, if available, of a contact person at the 
56.30 	agency completing the assessment.
56.31 	(c) Reassessment notices must be sent within 15 days after the completion of the 
56.32 	reassessment and must minimally include the following:
56.33 	(1) a summary of the child's individual assessment used to determine the new rating;
56.34 	(2) any change in rating and its effective date;
56.35 	(3) procedure to seek reassessment;
57.1 	(4) notice that if a change in rating results in a reduction of benefits, the caregiver 
57.2 	has the right to a fair hearing review of the assessment and how to request a fair hearing 
57.3 	consistent with section 256.045, subdivision 3;
57.4 	(5) notice that a caregiver who requests a fair hearing of the reassessed rating within 
57.5 	ten days may continue at the current rate pending the hearing, but the agency may recover 
57.6 	any overpayment; and 
57.7 	(6) name, telephone number, and e-mail, if available, of a contact person at the 
57.8 	agency completing the reassessment.
57.9 	(d) Notice is not required for special assessments since the notice is part of the 
57.10 	guardianship assistance or adoption assistance negotiated agreement completed according 
57.11 	to section 256N.25.
57.12 		Subd. 13.Assessment tool determines rate of benefits. The assessment tool 
57.13 	established by the commissioner in subdivision 2 determines the monthly benefit level 
57.14 	for children in foster care. The monthly payment for guardian assistance or adoption 
57.15 	assistance may be negotiated up to the monthly benefit level under foster care for those 
57.16 	children eligible for a payment under section 256N.26, subdivision 1.

57.17 	Sec. 41. [256N.25] AGREEMENTS.
57.18 		Subdivision 1.Agreement; guardianship assistance; adoption assistance. (a) 
57.19 	In order to receive guardianship assistance or adoption assistance benefits on behalf of 
57.20 	an eligible child, a written, binding agreement between the caregiver or caregivers, the 
57.21 	financially responsible agency, or, if there is no financially responsible agency, the agency 
57.22 	designated by the commissioner, and the commissioner must be established prior to 
57.23 	finalization of the adoption or a transfer of permanent legal and physical custody. The 
57.24 	agreement must be negotiated with the caregiver or caregivers under subdivision 2.
57.25 	(b) The agreement must be on a form approved by the commissioner and must 
57.26 	specify the following:
57.27 	(1) duration of the agreement;
57.28 	(2) the nature and amount of any payment, services, and assistance to be provided 
57.29 	under such agreement;
57.30 	(3) the child's eligibility for Medicaid services;
57.31 	(4) the terms of the payment, including any child care portion as specified in section 
57.32 	256N.24, subdivision 3;
57.33 	(5) eligibility for reimbursement of nonrecurring expenses associated with adopting 
57.34 	or obtaining permanent legal and physical custody of the child, to the extent that the 
57.35 	total cost does not exceed $2,000 per child;
58.1 	(6) that the agreement must remain in effect regardless of the state of which the 
58.2 	adoptive parents or relative custodians are residents at any given time;
58.3 	(7) provisions for modification of the terms of the agreement, including renegotiation 
58.4 	of the agreement; and
58.5 	(8) the effective date of the agreement.
58.6 	(c) The caregivers, the commissioner, and the financially responsible agency, or, if 
58.7 	there is no financially responsible agency, the agency designated by the commissioner, must 
58.8 	sign the agreement. A copy of the signed agreement must be given to each party. Once 
58.9 	signed by all parties, the commissioner shall maintain the official record of the agreement.
58.10 	(d) The effective date of the guardianship assistance agreement must be the date of the 
58.11 	court order that transfers permanent legal and physical custody to the relative. The effective 
58.12 	date of the adoption assistance agreement is the date of the finalized adoption decree.
58.13 	(e) Termination or disruption of the preadoptive placement or the foster care 
58.14 	placement prior to assignment of custody makes the agreement with that caregiver void.
58.15 		Subd. 2.Negotiation of agreement. (a) When a child is determined to be eligible 
58.16 	for guardianship assistance or adoption assistance, the financially responsible agency, or, 
58.17 	if there is no financially responsible agency, the agency designated by the commissioner, 
58.18 	must negotiate with the caregiver to develop an agreement under subdivision 1. If and when 
58.19 	the caregiver and agency reach concurrence as to the terms of the agreement, both parties 
58.20 	shall sign the agreement. The agency must submit the agreement, along with the eligibility 
58.21 	determination outlined in sections 256N.22, subdivision 7, and 256N.23, subdivision 7, to 
58.22 	the commissioner for final review, approval, and signature according to subdivision 1.
58.23 	(b) A monthly payment is provided as part of the adoption assistance or guardianship 
58.24 	assistance agreement to support the care of children unless the child is determined to be an 
58.25 	at-risk child, in which case the special at-risk monthly payment under section 256N.26, 
58.26 	subdivision 7, must be made until the caregiver obtains written documentation from a 
58.27 	qualified expert that the potential disability upon which eligibility for the agreement 
58.28 	was based has manifested itself.
58.29 	(1) The amount of the payment made on behalf of a child eligible for guardianship 
58.30 	assistance or adoption assistance is determined through agreement between the prospective 
58.31 	relative custodian or the adoptive parent and the financially responsible agency, or, if there 
58.32 	is no financially responsible agency, the agency designated by the commissioner, using 
58.33 	the assessment tool established by the commissioner in section 256N.24, subdivision 2, 
58.34 	and the associated benefit and payments outlined in section 256N.26. Except as provided 
58.35 	under section 256N.24, subdivision 1, paragraph (c), the assessment tool establishes 
58.36 	the monthly benefit level for a child under foster care. The monthly payment under a 
59.1 	guardianship assistance agreement or adoption assistance agreement may be negotiated up 
59.2 	to the monthly benefit level under foster care. In no case may the amount of the payment 
59.3 	under a guardianship assistance agreement or adoption assistance agreement exceed the 
59.4 	foster care maintenance payment which would have been paid during the month if the 
59.5 	child with respect to whom the guardianship assistance or adoption assistance payment is 
59.6 	made had been in a foster family home in the state.
59.7 	(2) The rate schedule for the agreement is determined based on the age of the 
59.8 	child on the date that the prospective adoptive parent or parents or relative custodian or 
59.9 	custodians sign the agreement. 
59.10 	(3) The income of the relative custodian or custodians or adoptive parent or parents 
59.11 	must not be taken into consideration when determining eligibility for guardianship 
59.12 	assistance or adoption assistance or the amount of the payments under section 256N.26.
59.13 	(4) With the concurrence of the relative custodian or adoptive parent, the amount of 
59.14 	the payment may be adjusted periodically using the assessment tool established by the 
59.15 	commissioner in section 256N.24, subdivision 2, and the agreement renegotiated under 
59.16 	subdivision 3 when there is a change in the child's needs or the family's circumstances.
59.17 	(5) The guardianship assistance or adoption assistance agreement of a child who is 
59.18 	identified as at-risk receives the special at-risk monthly payment under section 256N.26, 
59.19 	subdivision 7, unless and until the potential disability manifests itself, as documented by 
59.20 	an appropriate professional, and the commissioner authorizes commencement of payment 
59.21 	by modifying the agreement accordingly. A relative custodian or adoptive parent of an 
59.22 	at-risk child with a guardianship assistance or adoption assistance agreement may request 
59.23 	a reassessment of the child under section 256N.24, subdivision 9, and renegotiation of 
59.24 	the guardianship assistance or adoption assistance agreement under subdivision 3 to 
59.25 	include a monthly payment, if the caregiver has written documentation from a qualified 
59.26 	expert that the potential disability upon which eligibility for the agreement was based has 
59.27 	manifested itself. Documentation of the disability must be limited to evidence deemed 
59.28 	appropriate by the commissioner.
59.29 	(c) For guardianship assistance agreements:
59.30 	(1) the initial amount of the monthly guardianship assistance payment must be 
59.31 	equivalent to the foster care rate in effect at the time that the agreement is signed less any 
59.32 	offsets under section 256N.26, subdivision 11, or a lesser negotiated amount if agreed to 
59.33 	by the prospective relative custodian and specified in that agreement, unless the child is 
59.34 	identified as at-risk or the guardianship assistance agreement is entered into when a child 
59.35 	is under the age of six;
60.1 	(2) an at-risk child must be assigned level A as outlined in section 256N.26 and 
60.2 	receive the special at-risk monthly payment under section 256N.26, subdivision 7, unless 
60.3 	and until the potential disability manifests itself, as documented by a qualified expert and 
60.4 	the commissioner authorizes commencement of payment by modifying the agreement 
60.5 	accordingly; and
60.6 	(3) the amount of the monthly payment for a guardianship assistance agreement for 
60.7 	a child, other than an at-risk child, who is under the age of six must be as specified in 
60.8 	section 256N.26, subdivision 5.
60.9 	(d) For adoption assistance agreements:
60.10 	(1) for a child in foster care with the prospective adoptive parent immediately prior 
60.11 	to adoptive placement, the initial amount of the monthly adoption assistance payment 
60.12 	must be equivalent to the foster care rate in effect at the time that the agreement is signed 
60.13 	less any offsets in section 256N.26, subdivision 11, or a lesser negotiated amount if agreed 
60.14 	to by the prospective adoptive parents and specified in that agreement, unless the child is 
60.15 	identified as at-risk or the adoption assistance agreement is entered into when a child is 
60.16 	under the age of six;
60.17 	(2) an at-risk child must be assigned level A as outlined in section 256N.26 and 
60.18 	receive the special at-risk monthly payment under section 256N.26, subdivision 7, unless 
60.19 	and until the potential disability manifests itself, as documented by an appropriate 
60.20 	professional and the commissioner authorizes commencement of payment by modifying 
60.21 	the agreement accordingly;
60.22 	(3) the amount of the monthly payment for an adoption assistance agreement for 
60.23 	a child under the age of six, other than an at-risk child, must be as specified in section 
60.24 	256N.26, subdivision 5;
60.25 	(4) for a child who is in the guardianship assistance program immediately prior 
60.26 	to adoptive placement, the initial amount of the adoption assistance payment must be 
60.27 	equivalent to the guardianship assistance payment in effect at the time that the adoption 
60.28 	assistance agreement is signed or a lesser amount if agreed to by the prospective adoptive 
60.29 	parent and specified in that agreement; and
60.30 	(5) for a child who is not in foster care placement or the guardianship assistance 
60.31 	program immediately prior to adoptive placement or negotiation of the adoption assistance 
60.32 	agreement, the initial amount of the adoption assistance agreement must be determined 
60.33 	using the assessment tool and process in this section and the corresponding payment 
60.34 	amount outlined in section 256N.26.
60.35 		Subd. 3.Renegotiation of agreement. (a) A relative custodian or adoptive parent 
60.36 	of a child with a guardianship assistance or adoption assistance agreement may request 
61.1 	renegotiation of the agreement when there is a change in the needs of the child or in the 
61.2 	family's circumstances. When a relative custodian or adoptive parent requests renegotiation 
61.3 	of the agreement, a reassessment of the child must be completed consistent with section 
61.4 	256N.24, subdivisions 9 and 10. If the reassessment indicates that the child's level has 
61.5 	changed, the financially responsible agency, or, if there is no financially responsible 
61.6 	agency, the agency designated by the commissioner or a designee and the caregiver must 
61.7 	renegotiate the agreement to include a payment with the level determined through the 
61.8 	reassessment process. The agreement must not be renegotiated unless the commissioner, 
61.9 	the financially responsible agency, and the caregiver mutually agree to the changes. The 
61.10 	effective date of any renegotiated agreement must be determined by the commissioner.
61.11 	(b) A relative custodian or adoptive parent of an at-risk child with a guardianship 
61.12 	assistance or adoption assistance agreement may request renegotiation of the agreement to 
61.13 	include a monthly payment higher than the special at-risk monthly payment under section 
61.14 	256N.26, subdivision 7, if the caregiver has written documentation from a qualified 
61.15 	expert that the potential disability upon which eligibility for the agreement was based has 
61.16 	manifested itself. Documentation of the disability must be limited to evidence deemed 
61.17 	appropriate by the commissioner. Prior to renegotiating the agreement, a reassessment 
61.18 	of the child must be conducted as outlined in section 256N.24, subdivision 9. The 
61.19 	reassessment must be used to renegotiate the agreement to include an appropriate monthly 
61.20 	payment. The agreement must not be renegotiated unless the commissioner, the financially 
61.21 	responsible agency, and the caregiver mutually agree to the changes. The effective date of 
61.22 	any renegotiated agreement must be determined by the commissioner.
61.23 	(c) Renegotiation of a guardianship assistance or adoption assistance agreement is 
61.24 	required when one of the circumstances outlined in section 256N.26, subdivision 13, 
61.25 	occurs.

61.26 	Sec. 42. [256N.26] BENEFITS AND PAYMENTS.
61.27 		Subdivision 1.Benefits.  (a) There are three benefits under Northstar Care for 
61.28 	Children: medical assistance, basic payment, and supplemental difficulty of care payment.
61.29 	(b) A child is eligible for medical assistance under subdivision 2.
61.30 	(c) A child is eligible for the basic payment under subdivision 3, except for a child 
61.31 	assigned level A under section 256N.24, subdivision 1, because the child is determined to 
61.32 	be an at-risk child receiving guardianship assistance or adoption assistance. 
61.33 	(d) A child, including a foster child age 18 to 21, is eligible for an additional 
61.34 	supplemental difficulty of care payment under subdivision 4, as determined by the 
61.35 	assessment under section 256N.24.
62.1 	(e) An eligible child entering guardianship assistance or adoption assistance under 
62.2 	the age of six receives a basic payment and supplemental difficulty of care payment as 
62.3 	specified in subdivision 5.
62.4 	(f) A child transitioning in from a pre-Northstar Care for Children program under 
62.5 	section 256N.28, subdivision 7, shall receive basic and difficulty of care supplemental 
62.6 	payments according to those provisions.
62.7 		Subd. 2.Medical assistance. Eligibility for medical assistance under this chapter 
62.8 	must be determined according to section 256B.055.
62.9 		Subd. 3.Basic monthly rate. From January 1, 2015, to June 30, 2016, the basic 
62.10 	monthly rate must be according to the following schedule:

62.11		Ages 0-5
	$565 per month
	
62.12		Ages 6-12
	$670 per month
	
62.13		Ages 13 and older
	$790 per month
	
62.14 		Subd. 4.Difficulty of care supplemental monthly rate. From January 1, 2015, 
62.15 	to June 30, 2016, the supplemental difficulty of care monthly rate is determined by the 
62.16 	following schedule:

62.17
62.18		Level A
	none (special rate under subdivision 7 
applies)
	
62.19		Level B
	none (basic under subdivision 3 only)
	
62.20		Level C
	$100 per month
	
62.21		Level D
	$200 per month
	
62.22		Level E
	$300 per month
	
62.23		Level F
	$400 per month
	
62.24		Level G
	$500 per month
	
62.25		Level H
	$600 per month
	
62.26		Level I
	$700 per month
	
62.27		Level J
	$800 per month
	
62.28		Level K
	$900 per month
	
62.29		Level L
	$1,000 per month
	
62.30 	A child assigned level A is not eligible for either the basic or supplemental difficulty 
62.31 	of care payment, while a child assigned level B is not eligible for the supplemental 
62.32 	difficulty of care payment but is eligible for the basic monthly rate under subdivision 3.
62.33 		Subd. 5.Alternate rates for preschool entry and certain transitioned children.
 62.34 	A child who entered the guardianship assistance or adoption assistance components 
62.35 	of Northstar Care for Children while under the age of six shall receive 50 percent of 
62.36 	the amount the child would otherwise be entitled to under subdivisions 3 and 4. The 
62.37 	commissioner may also use the 50 percent rate for a child who was transitioned into those 
62.38 	components through declaration of the commissioner under section 256N.28, subdivision 7.
63.1 		Subd. 6.Emergency foster care rate for initial placement. (a) A child who enters 
63.2 	foster care due to immediate custody by a police officer or court order, consistent with 
63.3 	section 260C.175, subdivisions 1 and 2, or equivalent provision under tribal code, shall 
63.4 	receive the emergency foster care rate for up to 30 days. The emergency foster care rate 
63.5 	cannot be extended beyond 30 days of the child's placement.
63.6 	(b) For this payment rate to be applied, at least one of three conditions must apply:
63.7 	(1) the child's initial placement must be in foster care in Minnesota;
63.8 	(2) the child's previous placement was more than two years ago; or
63.9 	(3) the child's previous placement was for fewer than 30 days and an assessment 
63.10 	under section 256N.24 was not completed by an agency under section 256N.24.
63.11 	(c) The emergency foster care rate consists of the appropriate basic monthly rate 
63.12 	under subdivision 3 plus a difficulty of care supplemental monthly rate of level D under 
63.13 	subdivision 4.
63.14 	(d) The emergency foster care rate ends under any of three conditions:
63.15 	(1) when an assessment under section 256N.24 is completed;
63.16 	(2) when the placement ends; or
63.17 	(3) after 30 days have elapsed.
63.18 	(e) The financially responsible agency, in consultation with the legally responsible 
63.19 	agency, if different, may replace the emergency foster care rate at any time by completing 
63.20 	an initial assessment on which a revised difficulty of care supplemental monthly rate 
63.21 	would be based. Consistent with section 256N.24, subdivision 9, the caregiver may 
63.22 	request a reassessment in writing for an initial assessment to replace the emergency foster 
63.23 	care rate. This written request would initiate an initial assessment under section 256N.24, 
63.24 	subdivision 5. If the revised difficulty of care supplemental level based on the initial 
63.25 	assessment is higher than Level D, then the revised higher rate shall apply retroactively to 
63.26 	the beginning of the placement. If the revised level is lower, the lower rate shall apply on 
63.27 	the date the initial assessment was completed.
63.28 	(f) If a child remains in foster care placement for more than 30 days, the emergency 
63.29 	foster care rate ends after the 30th day of placement and an assessment under section 
63.30 	256N.26 must be completed.
63.31 		Subd. 7.Special at-risk monthly payment for at-risk children in guardianship 
63.32 	assistance and adoption assistance. A child eligible for guardianship assistance under 
63.33 	section 256N.22 or adoption assistance under section 256N.23 who is determined to be 
63.34 	an at-risk child shall receive a special at-risk monthly payment of $1 per month basic, 
63.35 	unless and until the potential disability manifests itself and the agreement is renegotiated 
63.36 	to include reimbursement. Such an at-risk child shall receive neither a supplemental 
64.1 	difficulty of care monthly rate under subdivision 4 nor home and vehicle modifications 
64.2 	under subdivision 10, but must be considered for medical assistance under subdivision 2.
64.3 		Subd. 8.Daily rates. (a) The commissioner shall establish prorated daily rates to 
64.4 	the nearest cent for the monthly rates under subdivisions 3 to 7. Daily rates must be 
64.5 	routinely used when a partial month is involved for foster care, guardianship assistance, or 
64.6 	adoption assistance.
64.7 	(b) A full month payment is permitted if a foster child is temporarily absent from 
64.8 	the foster home if the brief absence does not exceed 14 days and the child's placement 
64.9 	continues with the same caregiver.
64.10 		Subd. 9.Revision. By April 1, 2016, for fiscal year 2017, and by each succeeding 
64.11 	April 1 for the subsequent fiscal year, the commissioner shall review and revise the rates 
64.12 	under subdivisions 3 to 7 based on the United States Department of Agriculture, Estimates 
64.13 	of the Cost of Raising a Child, published by the United States Department of Agriculture, 
64.14 	Agricultural Resources Service, Publication 1411. The revision shall be the average 
64.15 	percentage by which costs increase for the age ranges represented in the United States 
64.16 	Department of Agriculture, Estimates of the Cost of Raising a Child, except that in no 
64.17 	instance must the increase be more than three percent per annum. The monthly rates must 
64.18 	be revised to the nearest dollar and the daily rates to the nearest cent.
64.19 		Subd. 10.Home and vehicle modifications. (a) Except for a child assigned level A 
64.20 	under section 256N.24, subdivision 1, paragraph (b), clause (1), a child who is eligible 
64.21 	for an adoption assistance agreement may have reimbursement of home and vehicle 
64.22 	modifications necessary to accommodate the child's special needs upon which eligibility 
64.23 	for adoption assistance was based and included as part of the negotiation of the agreement 
64.24 	under section 256N.25, subdivision 2. Reimbursement of home and vehicle modifications 
64.25 	must not be available for a child who is assessed at level A under subdivision 1, unless 
64.26 	and until the potential disability manifests itself and the agreement is renegotiated to 
64.27 	include reimbursement.
64.28 	(b) Application for and reimbursement of modifications must be completed 
64.29 	according to a process specified by the commissioner. The type and cost of each 
64.30 	modification must be preapproved by the commissioner. The type of home and vehicle 
64.31 	modifications must be limited to those specified by the commissioner.
64.32 	(c) Reimbursement for home modifications as outlined in this subdivision is limited 
64.33 	to once every five years per child. Reimbursement for vehicle modifications as outlined in 
64.34 	this subdivision is limited to once every five years per family.
64.35 		Subd. 11.Child income or income attributable to the child. (a) A monthly 
64.36 	guardianship assistance or adoption assistance payment must be considered as income 
65.1 	and resource attributable to the child. Guardianship assistance and adoption assistance 
65.2 	are exempt from garnishment, except as permissible under the laws of the state where the 
65.3 	child resides.
65.4 	(b) When a child is placed into foster care, any income and resources attributable 
65.5 	to the child are treated as provided in sections 252.27 and 260C.331, or 260B.331, as 
65.6 	applicable to the child being placed.
65.7 	(c) Consideration of income and resources attributable to the child must be part of 
65.8 	the negotiation process outlined in section 256N.25, subdivision 2. In some circumstances, 
65.9 	the receipt of other income on behalf of the child may impact the amount of the monthly 
65.10 	payment received by the relative custodian or adoptive parent on behalf of the child 
65.11 	through Northstar Care for Children. Supplemental Security Income (SSI), retirement 
65.12 	survivor's disability insurance (RSDI), veteran's benefits, railroad retirement benefits, and 
65.13 	black lung benefits are considered income and resources attributable to the child.
65.14 		Subd. 12.Treatment of Supplemental Security Income. If a child placed in foster 
65.15 	care receives benefits through Supplemental Security Income (SSI) at the time of foster 
65.16 	care placement or subsequent to placement in foster care, the financially responsible 
65.17 	agency may apply to be the payee for the child for the duration of the child's placement in 
65.18 	foster care. If a child continues to be eligible for SSI after finalization of the adoption or 
65.19 	transfer of permanent legal and physical custody and is determined to be eligible for a 
65.20 	payment under Northstar Care for Children, a permanent caregiver may choose to receive 
65.21 	payment from both programs simultaneously. The permanent caregiver is responsible 
65.22 	to report the amount of the payment to the Social Security Administration and the SSI 
65.23 	payment will be reduced as required by Social Security.
65.24 		Subd. 13.Treatment of retirement survivor's disability insurance, veteran's 
65.25 	benefits, railroad retirement benefits, and black lung benefits. (a) If a child placed 
65.26 	in foster care receives retirement survivor's disability insurance, veteran's benefits, 
65.27 	railroad retirement benefits, or black lung benefits at the time of foster care placement or 
65.28 	subsequent to placement in foster care, the financially responsible agency may apply to 
65.29 	be the payee for the child for the duration of the child's placement in foster care. If it is 
65.30 	anticipated that a child will be eligible to receive retirement survivor's disability insurance, 
65.31 	veteran's benefits, railroad retirement benefits, or black lung benefits after finalization 
65.32 	of the adoption or assignment of permanent legal and physical custody, the permanent 
65.33 	caregiver shall apply to be the payee of those benefits on the child's behalf. The monthly 
65.34 	amount of the other benefits must be considered an offset to the amount of the payment 
65.35 	the child is determined eligible for under Northstar Care for Children.
66.1 	(b) If a child becomes eligible for retirement survivor's disability insurance, veteran's 
66.2 	benefits, railroad retirement benefits, or black lung benefits, after the initial amount of the 
66.3 	payment under Northstar Care for Children is finalized, the permanent caregiver shall 
66.4 	contact the commissioner to redetermine the payment under Northstar Care for Children. 
66.5 	The monthly amount of the other benefits must be considered an offset to the amount of 
66.6 	the payment the child is determined eligible for under Northstar Care for Children.
66.7 	(c) If a child ceases to be eligible for retirement survivor's disability insurance, 
66.8 	veteran's benefits, railroad retirement benefits, or black lung benefits after the initial amount 
66.9 	of the payment under Northstar Care for Children is finalized, the permanent caregiver 
66.10 	shall contact the commissioner to redetermine the payment under Northstar Care for 
66.11 	Children. The monthly amount of the payment under Northstar Care for Children must be 
66.12 	the amount the child was determined to be eligible for prior to consideration of any offset.
66.13 	(d) If the monthly payment received on behalf of the child under retirement survivor's 
66.14 	disability insurance, veteran's benefits, railroad retirement benefits, or black lung benefits 
66.15 	changes after the adoption assistance or guardianship assistance agreement is finalized, 
66.16 	the permanent caregiver shall notify the commissioner as to the new monthly payment 
66.17 	amount, regardless of the amount of the change in payment. If the monthly payment 
66.18 	changes by $75 or more, even if the change occurs incrementally over the duration of 
66.19 	the term of the adoption assistance or guardianship assistance agreement, the monthly 
66.20 	payment under Northstar Care for Children must be adjusted without further consent 
66.21 	to reflect the amount of the increase or decrease in the offset amount. Any subsequent 
66.22 	change to the payment must be reported and handled in the same manner. A change of 
66.23 	monthly payments of less than $75 is not a permissible reason to renegotiate the adoption 
66.24 	assistance or guardianship assistance agreement under section 256N.25, subdivision 3. 
66.25 	The commissioner shall review and revise the limit at which the adoption assistance or 
66.26 	guardian assistance agreement must be renegotiated in accordance with subdivision 9.
66.27 		Subd. 14.Treatment of child support and Minnesota family investment 
66.28 	program. (a) If a child placed in foster care receives child support, the child support 
66.29 	payment may be redirected to the financially responsible agency for the duration of the 
66.30 	child's placement in foster care. In cases where the child qualifies for Northstar Care 
66.31 	for Children by meeting the adoption assistance eligibility criteria or the guardianship 
66.32 	assistance eligibility criteria, any court ordered child support must not be considered 
66.33 	income attributable to the child and must have no impact on the monthly payment.
66.34 	(b) Consistent with section 256J.24, a child eligible for Northstar Care for Children 
66.35 	whose caregiver receives a payment on the child's behalf is excluded from a Minnesota 
66.36 	family investment program assistance unit.
67.1 		Subd. 15.Payments. (a) Payments to caregivers under Northstar Care for Children 
67.2 	must be made monthly. Consistent with section 256N.24, subdivision 12, the financially 
67.3 	responsible agency must send the caregiver the required written notice within 15 days of 
67.4 	a completed assessment or reassessment.
67.5 	(b) Unless paragraph (c) or (d) applies, the financially responsible agency shall pay 
67.6 	foster parents directly for eligible children in foster care.
67.7 	(c) When the legally responsible agency is different than the financially responsible 
67.8 	agency, the legally responsible agency may make the payments to the caregiver, provided 
67.9 	payments are made on a timely basis. The financially responsible agency must pay 
67.10 	the legally responsible agency on a timely basis. Caregivers must have access to the 
67.11 	financially and legally responsible agencies' records of the transaction, consistent with 
67.12 	the retention schedule for the payments.
67.13 	(d) For eligible children in foster care, the financially responsible agency may pay 
67.14 	the foster parent's payment for a licensed child-placing agency instead of paying the foster 
67.15 	parents directly. The licensed child-placing agency must timely pay the foster parents 
67.16 	and maintain records of the transaction. Caregivers must have access to the financially 
67.17 	responsible agency's records on the transaction and the child-placing agency's records of 
67.18 	the transaction, consistent with the retention schedule for the payments.
67.19 		Subd. 16.Effect of benefit on other aid. Payments received under this section 
67.20 	must not be considered as income for child care assistance under chapter 119B or any 
67.21 	other financial benefit. Consistent with section 256J.24, a child receiving a maintenance 
67.22 	payment under Northstar Care for Children is excluded from any Minnesota family 
67.23 	investment program assistance unit.
67.24 		Subd. 17.Home and community-based services waiver for persons with 
67.25 	disabilities. A child in foster care may qualify for home and community-based waivered 
67.26 	services, consistent with section 256B.092 for developmental disabilities, or section 
67.27 	256B.49 for community alternative care, community alternatives for disabled individuals, 
67.28 	or traumatic brain injury waivers. A waiver service must not be substituted for the foster 
67.29 	care program. When the child is simultaneously eligible for waivered services and for 
67.30 	benefits under Northstar Care for Children, the financially responsible agency must 
67.31 	assess and provide basic and supplemental difficulty of care rates as determined by the 
67.32 	assessment according to section 256N.24. If it is determined that additional services are 
67.33 	needed to meet the child's needs in the home that is not or cannot be met by the foster care 
67.34 	program, the need would be referred to the local waivered service program.
67.35 		Subd. 18.Overpayments. The commissioner has the authority to collect any 
67.36 	amount of foster care payment, adoption assistance, or guardianship assistance paid 
68.1 	to a caregiver in excess of the payment due. Payments covered by this subdivision 
68.2 	include basic maintenance needs payments, supplemental difficulty of care payments, and 
68.3 	reimbursement of home and vehicle modifications under subdivision 10. Prior to any 
68.4 	collection, the commissioner or designee shall notify the caregiver in writing, including:
68.5 	(1) the amount of the overpayment and an explanation of the cause of overpayment;
68.6 	(2) clarification of the corrected amount;
68.7 	(3) a statement of the legal authority for the decision;
68.8 	(4) information about how the caregiver can correct the overpayment;
68.9 	(5) if repayment is required, when the payment is due and a person to contact to 
68.10 	review a repayment plan;
68.11 	(6) a statement that the caregiver has a right to a fair hearing review by the 
68.12 	department; and
68.13 	(7) the procedure for seeking a fair hearing review by the department.
68.14 		Subd. 19.Payee. For adoption assistance and guardianship assistance cases, the 
68.15 	payment must only be made to the adoptive parent or relative custodian specified on the 
68.16 	agreement. If there is more than one adoptive parent or relative custodian, both parties will 
68.17 	be listed as the payee unless otherwise specified in writing according to policies outlined 
68.18 	by the commissioner. In the event of divorce or separation of the caregivers, a change of 
68.19 	payee must be made in writing according to policies outlined by the commissioner. If both 
68.20 	caregivers are in agreement as to the change, it may be made according to a process outlined 
68.21 	by the commissioner. If there is not agreement as to the change, a court order indicating 
68.22 	the party who is to receive the payment is needed before a change can be processed. If the 
68.23 	change of payee is disputed, the commissioner may withhold the payment until agreement 
68.24 	is reached. A noncustodial caregiver may request notice in writing of review, modification, 
68.25 	or termination of the adoption assistance or guardianship assistance agreement. In the 
68.26 	event of the death of a payee, a change of payee consistent with sections 256N.22 and 
68.27 	256N.23 may be made in writing according to policies outlined by the commissioner.
68.28 		Subd. 20.Notification of change. (a) A caregiver who has an adoption assistance 
68.29 	agreement or guardianship assistance agreement in place shall keep the agency 
68.30 	administering the program informed of changes in status or circumstances which would 
68.31 	make the child ineligible for the payments or eligible for payments in a different amount.
68.32 	(b) For the duration of the agreement, the caregiver agrees to notify the agency 
68.33 	administering the program in writing within 30 days of any of the following:
68.34 	(1) a change in the child's or caregiver's legal name;
68.35 	(2) a change in the family's address;
68.36 	(3) a change in the child's legal custody status;
69.1 	(4) the child's completion of high school, if this occurs after the child attains age 18;
69.2 	(5) the end of the caregiver's legal responsibility to support the child based on 
69.3 	termination of parental rights of the caregiver, transfer of guardianship to another person, 
69.4 	or transfer of permanent legal and physical custody to another person;
69.5 	(6) the end of the caregiver's financial support of the child;
69.6 	(7) the death of the child;
69.7 	(8) the death of the caregiver;
69.8 	(9) the child enlists in the military;
69.9 	(10) the child gets married;
69.10 	(11) the child becomes an emancipated minor through legal action;
69.11 	(12) the caregiver separates or divorces; and
69.12 	(13) the child is residing outside the caregiver's home for a period of more than 
69.13 	30 consecutive days.
69.14 		Subd. 21.Correct and true information. The caregiver must be investigated for 
69.15 	fraud if the caregiver reports information the caregiver knows is untrue, the caregiver 
69.16 	fails to notify the commissioner of changes that may affect eligibility, or the agency 
69.17 	administering the program receives relevant information that the caregiver did not report.
69.18 		Subd. 22.Termination notice for caregiver. The agency that issues the 
69.19 	maintenance payment shall provide the child's caregiver with written notice of termination 
69.20 	of payment. Termination notices must be sent at least 15 days before the final payment or 
69.21 	in the case of an unplanned termination, the notice is sent within three days of the end of 
69.22 	the payment. The written notice must minimally include the following:
69.23 	(1) the date payment will end;
69.24 	(2) the reason payments will end and the event that is the basis to terminate payment;
69.25 	(3) a statement that the provider has a right to a fair hearing review by the department 
69.26 	consistent with section 256.045, subdivision 3;
69.27 	(4) the procedure to request a fair hearing; and
69.28 	(5) name, telephone number, and email address of a contact person at the agency.

69.29 	Sec. 43. [256N.27] FEDERAL, STATE, AND LOCAL SHARES.
69.30 		Subdivision 1.Federal share. For the purposes of determining a child's eligibility 
69.31 	under title IV-E of the Social Security Act for a child in foster care, the financially 
69.32 	responsible agency shall use the eligibility requirements outlined in section 472 of the 
69.33 	Social Security Act. For a child who qualifies for guardianship assistance or adoption 
69.34 	assistance, the financially responsible agency and the commissioner shall use the 
69.35 	eligibility requirements outlined in section 473 of the Social Security Act. In each case, 
70.1 	the agency paying the maintenance payments must be reimbursed for the costs from the 
70.2 	federal money available for this purpose.
70.3 		Subd. 2.State share. The commissioner shall pay the state share of the maintenance 
70.4 	payments as determined under subdivision 4, and an identical share of the pre-Northstar 
70.5 	Care foster care program under section 260C.4411, subdivision 1, the relative custody 
70.6 	assistance program under section 257.85, and the pre-Northstar Care for Children adoption 
70.7 	assistance program under chapter 259A. The commissioner may transfer funds into the 
70.8 	account if a deficit occurs.
70.9 		Subd. 3.Local share. (a) The financially responsible agency at the time of 
70.10 	placement for foster care or finalization of the agreement for guardianship assistance or 
70.11 	adoption assistance shall pay the local share of the maintenance payments as determined 
70.12 	under subdivision 4, and an identical share of the pre-Northstar Care for Children foster 
70.13 	care program under section 260C.4411, subdivision 1, the relative custody assistance 
70.14 	program under section 257.85, and the pre-Northstar Care for Children adoption assistance 
70.15 	program under chapter 259A.
70.16 	(b) The financially responsible agency shall pay the entire cost of any initial clothing 
70.17 	allowance, administrative payments to child caring agencies specified in section 317A.907, 
70.18 	or other support services it authorizes, except as provided under other provisions of law.
70.19 	(c) In cases of federally required adoption assistance where there is no financially 
70.20 	responsible agency as provided in section 256N.24, subdivision 5, the commissioner 
70.21 	shall pay the local share.
70.22 	(d) When an Indian child being placed in Minnesota meets title IV-E eligibility 
70.23 	defined in section 473(d) of the Social Security Act and is receiving guardianship 
70.24 	assistance or adoption assistance, the agency or entity assuming responsibility for the 
70.25 	child is responsible for the nonfederal share of the payment.
70.26 		Subd. 4.Nonfederal share. (a) The commissioner shall establish a percentage share 
70.27 	of the maintenance payments, reduced by federal reimbursements under title IV-E of the 
70.28 	Social Security Act, to be paid by the state and to be paid by the financially responsible 
70.29 	agency.
70.30 	(b) These state and local shares must initially be calculated based on the ratio of the 
70.31 	average appropriate expenditures made by the state and all financially responsible agencies 
70.32 	during calendar years 2011, 2012, 2013, and 2014. For purposes of this calculation, 
70.33 	appropriate expenditures for the financially responsible agencies must include basic and 
70.34 	difficulty of care payments for foster care reduced by federal reimbursements, but not 
70.35 	including any initial clothing allowance, administrative payments to child care agencies 
70.36 	specified in section 317A.907, child care, or other support or ancillary expenditures. For 
71.1 	purposes of this calculation, appropriate expenditures for the state shall include adoption 
71.2 	assistance and relative custody assistance, reduced by federal reimbursements.
71.3 	(c) For each of the periods January 1, 2015, to June 30, 2016, fiscal years 2017, 2018, 
71.4 	and 2019, the commissioner shall adjust this initial percentage of state and local shares to 
71.5 	reflect the relative expenditure trends during calendar years 2011, 2012, 2013, and 2014, 
71.6 	taking into account appropriations for Northstar Care for Children and the turnover rates 
71.7 	of the components. In making these adjustments, the commissioner's goal shall be to make 
71.8 	these state and local expenditures other than the appropriations for Northstar Care to be 
71.9 	the same as they would have been had Northstar Care not been implemented, or if that 
71.10 	is not possible, proportionally higher or lower, as appropriate. The state and local share 
71.11 	percentages for fiscal year 2019 must be used for all subsequent years.
71.12 		Subd. 5.Adjustments for proportionate shares among financially responsible 
71.13 	agencies. (a) The commissioner shall adjust the expenditures under subdivision 4 by each 
71.14 	financially responsible agency so that its relative share is proportional to its foster care 
71.15 	expenditures, with the goal of making the local share similar to what the county or tribe 
71.16 	would have spent had Northstar Care for Children not been enacted.
71.17 	(b) For the period January 1, 2015, to June 30, 2016, the relative shares must be as 
71.18 	determined under subdivision 4 for calendar years 2011, 2012, 2013, and 2014 compared 
71.19 	with similar costs of all financially responsible agencies.
71.20 	(c) For subsequent fiscal years, the commissioner shall update the relative shares 
71.21 	based on actual utilization of Northstar Care for Children by the financially responsible 
71.22 	agencies during the previous period, so that those using relatively more than they did 
71.23 	historically are adjusted upward and those using less are adjusted downward.
71.24 	(d) The commissioner must ensure that the adjustments are not unduly influenced by 
71.25 	onetime events, anomalies, small changes that appear large compared to a narrow historic 
71.26 	base, or fluctuations that are the results of the transfer of responsibilities to tribal social 
71.27 	service agencies authorized in section 256.01, subdivision 14b, as part of the American 
71.28 	Indian Child Welfare Initiative.

71.29 	Sec. 44. [256N.28] ADMINISTRATION AND APPEALS.
71.30 		Subdivision 1.Responsibilities. (a) The financially responsible agency shall 
71.31 	determine the eligibility for Northstar Care for Children for children in foster care under 
71.32 	section 256N.21, and for those children determined eligible, shall further determine each 
71.33 	child's eligibility for title IV-E of the Social Security Act, provided the agency has such 
71.34 	authority under the state title IV-E plan.
72.1 	(b) Subject to commissioner review and approval, the financially responsible agency 
72.2 	shall prepare the eligibility determination for Northstar Care for Children for children in 
72.3 	guardianship assistance under section 256N.22 and children in adoption assistance under 
72.4 	section 256N.23. The AFDC relatedness determination, when necessary to determine a 
72.5 	child's eligibility for title IV-E funding, shall be made only by an authorized agency 
72.6 	according to policies and procedures prescribed by the commissioner.
72.7 	(c) The financially responsible agency is responsible for the administration of 
72.8 	Northstar Care for Children for children in foster care. The agency designated by the 
72.9 	commissioner is responsible for assisting the commissioner with the administration of 
72.10 	the Northstar Care for Children for children in guardianship assistance and adoption 
72.11 	assistance by conducting assessments, reassessments, negotiations, and other activities as 
72.12 	specified by the commissioner under subdivision 2.
72.13 		Subd. 2.Procedures, requirements, and deadlines. The commissioner shall 
72.14 	specify procedures, requirements, and deadlines for the administration of Northstar Care 
72.15 	for Children in accordance with sections 256N.001 to 256N.28, including for children 
72.16 	transitioning into Northstar Care for Children under subdivision 7. The commissioner 
72.17 	shall periodically review all procedures, requirements, and deadlines, including the 
72.18 	assessment tool and process under section 256N.24, in consultation with counties, tribes, 
72.19 	and representatives of caregivers, and may alter them as needed.
72.20 		Subd. 3.Administration of title IV-E programs. The title IV-E foster care, 
72.21 	guardianship assistance, and adoption assistance programs must operate within the 
72.22 	statutes, rules, and policies set forth by the federal government in the Social Security Act.
72.23 		Subd. 4.Reporting. The commissioner shall specify required fiscal and statistical 
72.24 	reports under section 256.01, subdivision 2, paragraph (q), and other reports as necessary.
72.25 		Subd. 5.Promotion of programs. Families who adopt a child under the 
72.26 	commissioner's guardianship must be informed as to the adoption tax credit. The 
72.27 	commissioner shall actively seek ways to promote the guardianship assistance and 
72.28 	adoption assistance programs, including informing prospective caregivers of eligible 
72.29 	children of the availability of guardianship assistance and adoption assistance.
72.30 		Subd. 6.Appeals and fair hearings. (a) A caregiver has the right to appeal to the 
72.31 	commissioner under section 256.045 when eligibility for Northstar Care for Children is 
72.32 	denied, and when payment or the agreement for an eligible child is modified or terminated.
72.33 	(b) A relative custodian or adoptive parent has additional rights to appeal to the 
72.34 	commissioner pursuant to section 256.045. These rights include when the commissioner 
72.35 	terminates or modifies the guardianship assistance or adoption assistance agreement or 
72.36 	when the commissioner denies an application for guardianship assistance or adoption 
73.1 	assistance. A prospective relative custodian or adoptive parent who disagrees with a 
73.2 	decision by the commissioner before transfer of permanent legal and physical custody or 
73.3 	finalization of the adoption may request review of the decision by the commissioner or 
73.4 	may appeal the decision under section 256.045. A guardianship assistance or adoption 
73.5 	assistance agreement must be signed and in effect before the court order that transfers 
73.6 	permanent legal and physical custody or the adoption finalization; however in some cases, 
73.7 	there may be extenuating circumstances as to why an agreement was not entered into 
73.8 	before finalization of permanency for the child. Caregivers who believe that extenuating 
73.9 	circumstances exist in the case of their child may request a fair hearing. Caregivers have the 
73.10 	responsibility of proving that extenuating circumstances exist. Caregivers must be required 
73.11 	to provide written documentation of each eligibility criterion at the fair hearing. Examples 
73.12 	of extenuating circumstances include: relevant facts regarding the child were known by 
73.13 	the placing agency and not presented to the caregivers before transfer of permanent legal 
73.14 	and physical custody or finalization of the adoption, or failure by the commissioner or a 
73.15 	designee to advise potential caregivers about the availability of guardianship assistance or 
73.16 	adoption assistance for children in the state foster care system. If an appeals judge finds 
73.17 	through the fair hearing process that extenuating circumstances existed and that the child 
73.18 	met all eligibility criteria at the time the transfer of permanent legal and physical custody 
73.19 	was ordered or the adoption was finalized, the effective date and any associated federal 
73.20 	financial participation shall be retroactive from the date of the request for a fair hearing.
73.21 		Subd. 7.Transitions from pre-Northstar Care for Children programs. (a) A child 
73.22 	in foster care who remains with the same caregiver shall continue to receive benefits under 
73.23 	the pre-Northstar Care for Children foster care program under section 256.82. Transitions 
73.24 	to Northstar Care for Children must occur as provided in section 256N.21, subdivision 6.
73.25 	(b) The commissioner may seek to transition into Northstar Care for Children a child 
73.26 	who is in pre-Northstar Care for Children relative custody assistance under section 257.85 
73.27 	or pre-Northstar Care for Children adoption assistance under chapter 259A, in accordance 
73.28 	with these priorities, in order of priority:
73.29 	(1) financial and budgetary constraints;
73.30 	(2) complying with federal regulations;
73.31 	(3) converting pre-Northstar Care for Children relative custody assistance under 
73.32 	section 257.85 to the guardianship assistance component of Northstar Care for Children;
73.33 	(4) improving permanency for a child or children;
73.34 	(5) maintaining permanency for a child or children;
73.35 	(6) accessing additional federal funds; and
73.36 	(7) administrative simplification.
74.1 	(c) Transitions shall be accomplished according to procedures, deadlines, and 
74.2 	requirements specified by the commissioner under subdivision 2.
74.3 	(d) The commissioner may accomplish a transition of a child from pre-Northstar 
74.4 	Care for Children relative custody assistance under section 257.85 to the guardianship 
74.5 	assistance component of Northstar Care for Children by declaration and appropriate notice 
74.6 	to the caregiver, provided that the benefit for a child under this paragraph is not reduced.
74.7 	(e) The commissioner may offer a transition of a child from pre-Northstar Care for 
74.8 	Children adoption assistance under chapter 259A to the adoption assistance component 
74.9 	of Northstar Care for Children by contacting the caregiver with an offer. The transition 
74.10 	must be accomplished only when the caregiver agrees to the offer. The caregiver shall 
74.11 	have a maximum of 90 days to review and accept the commissioner's offer. If the 
74.12 	commissioner's offer is not accepted within 90 days, the pre-Northstar Care for Children 
74.13 	adoption assistance agreement remains in effect until it terminates or a subsequent offer is 
74.14 	made by the commissioner.
74.15 	(f) For a child transitioning into Northstar Care for Children, the commissioner shall 
74.16 	assign an equivalent assessment level based on the most recently completed supplemental 
74.17 	difficulty of care level assessment, unless the commissioner determines that arranging 
74.18 	for a new assessment under section 256N.24 would be more appropriate based on the 
74.19 	priorities specified in paragraph (b).
74.20 	(g) For a child transitioning into Northstar Care for Children, regardless of the age 
74.21 	of the child, the commissioner shall use the rates under section 256N.26, subdivision 5, 
74.22 	unless the rates under section 256N.26, subdivisions 3 and 4, are more appropriate based 
74.23 	on the priorities specified in paragraph (b), as determined by the commissioner.
74.24 		Subd. 8.Purchase of child-specific adoption services. The commissioner may 
74.25 	reimburse the placing agency for appropriate adoption services for children eligible 
74.26 	under section 259A.75.

74.27 	Sec. 45. Minnesota Statutes 2012, section 257.85, subdivision 2, is amended to read:
74.28 		Subd. 2.Scope. The provisions of this section apply to those situations in which 
74.29 	the legal and physical custody of a child is established with a relative or important friend 
74.30 	with whom the child has resided or had significant contact according to section 260C.515, 
74.31 	subdivision 4, by a district court order issued on or after July 1, 1997, but on or before 
74.32 	November 26, 2014, or a tribal court order issued on or after July 1, 2005, but on or 
74.33 	before November 26, 2014, when the child has been removed from the care of the parent 
74.34 	by previous district or tribal court order.

75.1 	Sec. 46. Minnesota Statutes 2012, section 257.85, subdivision 5, is amended to read:
75.2 		Subd. 5.Relative custody assistance agreement. (a) A relative custody assistance 
75.3 	agreement will not be effective, unless it is signed by the local agency and the relative 
75.4 	custodian no later than 30 days after the date of the order establishing permanent legal and 
75.5 	physical custody, and on or before November 26, 2014, except that a local agency may 
75.6 	enter into a relative custody assistance agreement with a relative custodian more than 30 
75.7 	days after the date of the order if it certifies that the delay in entering the agreement was 
75.8 	through no fault of the relative custodian and the agreement is signed and in effect on or 
75.9 	before November 26, 2014. There must be a separate agreement for each child for whom 
75.10 	the relative custodian is receiving relative custody assistance.
75.11 	(b) Regardless of when the relative custody assistance agreement is signed by the 
75.12 	local agency and relative custodian, the effective date of the agreement shall be the date of 
75.13 	the order establishing permanent legal and physical custody.
75.14 	(c) If MFIP is not the applicable program for a child at the time that a relative 
75.15 	custody assistance agreement is entered on behalf of the child, when MFIP becomes 
75.16 	the applicable program, if the relative custodian had been receiving custody assistance 
75.17 	payments calculated based upon a different program, the amount of relative custody 
75.18 	assistance payment under subdivision 7 shall be recalculated under the Minnesota family 
75.19 	investment program.
75.20 	(d) The relative custody assistance agreement shall be in a form specified by the 
75.21 	commissioner and shall include provisions relating to the following:
75.22 	(1) the responsibilities of all parties to the agreement;
75.23 	(2) the payment terms, including the financial circumstances of the relative 
75.24 	custodian, the needs of the child, the amount and calculation of the relative custody 
75.25 	assistance payments, and that the amount of the payments shall be reevaluated annually;
75.26 	(3) the effective date of the agreement, which shall also be the anniversary date for 
75.27 	the purpose of submitting the annual affidavit under subdivision 8;
75.28 	(4) that failure to submit the affidavit as required by subdivision 8 will be grounds 
75.29 	for terminating the agreement;
75.30 	(5) the agreement's expected duration, which shall not extend beyond the child's 
75.31 	eighteenth birthday;
75.32 	(6) any specific known circumstances that could cause the agreement or payments 
75.33 	to be modified, reduced, or terminated and the relative custodian's appeal rights under 
75.34 	subdivision 9;
75.35 	(7) that the relative custodian must notify the local agency within 30 days of any of 
75.36 	the following:
76.1 	(i) a change in the child's status;
76.2 	(ii) a change in the relationship between the relative custodian and the child;
76.3 	(iii) a change in composition or level of income of the relative custodian's family;
76.4 	(iv) a change in eligibility or receipt of benefits under MFIP, or other assistance 
76.5 	program; and
76.6 	(v) any other change that could affect eligibility for or amount of relative custody 
76.7 	assistance;
76.8 	(8) that failure to provide notice of a change as required by clause (7) will be 
76.9 	grounds for terminating the agreement;
76.10 	(9) that the amount of relative custody assistance is subject to the availability of state 
76.11 	funds to reimburse the local agency making the payments;
76.12 	(10) that the relative custodian may choose to temporarily stop receiving payments 
76.13 	under the agreement at any time by providing 30 days' notice to the local agency and may 
76.14 	choose to begin receiving payments again by providing the same notice but any payments 
76.15 	the relative custodian chooses not to receive are forfeit; and
76.16 	(11) that the local agency will continue to be responsible for making relative custody 
76.17 	assistance payments under the agreement regardless of the relative custodian's place of 
76.18 	residence.

76.19 	Sec. 47. Minnesota Statutes 2012, section 257.85, subdivision 6, is amended to read:
76.20 		Subd. 6.Eligibility criteria. (a) A local agency shall enter into a relative custody 
76.21 	assistance agreement under subdivision 5 if it certifies that the following criteria are met:
76.22 	(1) the juvenile court has determined or is expected to determine that the child, 
76.23 	under the former or current custody of the local agency, cannot return to the home of 
76.24 	the child's parents;
76.25 	(2) the court, upon determining that it is in the child's best interests, has issued 
76.26 	or is expected to issue an order transferring permanent legal and physical custody of 
76.27 	the child; and
76.28 	(3) the child either:
76.29 	(i) is a member of a sibling group to be placed together; or
76.30 	(ii) has a physical, mental, emotional, or behavioral disability that will require 
76.31 	financial support.
76.32 	When the local agency bases its certification that the criteria in clause (1) or (2) are 
76.33 	met upon the expectation that the juvenile court will take a certain action, the relative 
76.34 	custody assistance agreement does not become effective until and unless the court acts as 
76.35 	expected.
77.1 	(b) After November 26, 2014, new relative custody assistance agreements must not 
77.2 	be executed. Agreements that were signed by all parties on or before November 26, 2014, 
77.3 	and were not in effect because the proposed transfer of permanent legal and physical 
77.4 	custody of the child did not occur on or before November 26, 2014, must be renegotiated 
77.5 	under the terms of Northstar Care for Children in chapter 256N.

77.6 	Sec. 48. [259A.12] NO NEW EXECUTION OF ADOPTION ASSISTANCE 
77.7 	AGREEMENTS.
77.8 	After November 26, 2014, new adoption assistance agreements must not be executed 
77.9 	under this section. Agreements that were signed on or before November 26, 2014, and 
77.10 	were not in effect because the adoption finalization of the child did not occur on or before 
77.11 	November 26, 2014, must be renegotiated according to the terms of Northstar Care for 
77.12 	Children under chapter 256N. Agreements signed and in effect on or before November 26, 
77.13 	2014, must continue according to the terms of this section and applicable rules for the 
77.14 	duration of the agreement, unless the commissioner and the adoptive parents choose to 
77.15 	renegotiated the agreements under Northstar Care for Children consistent with section 
77.16 	256N.28, subdivision 7. After November 26, 2014, this section and associated rules must 
77.17 	be referred to as the pre-Northstar Care for Children adoption assistance program and 
77.18 	shall apply to children whose adoption assistance agreements were in effect on or before 
77.19 	November 26, 2014, and whose adoptive parents have not renegotiated their agreements 
77.20 	according to the terms of Northstar Care for Children.

77.21 	Sec. 49. [260C.4411] PRE-NORTHSTAR CARE FOR CHILDREN FOSTER 
77.22 	CARE PROGRAM.
77.23 		Subdivision 1.Pre-Northstar Care for Children foster care program. (a) For a 
77.24 	child placed in family foster care on or before December 31, 2014, the county of financial 
77.25 	responsibility under section 256G.02 or tribal agency authorized under section 256.01, 
77.26 	subdivision 14b, shall pay the local share under section 256N.27, subdivision 3, for foster 
77.27 	care maintenance including any difficulty of care as defined in Minnesota Rules, part 
77.28 	9560.0521, subparts 7 and 10. Family foster care includes:
77.29 	(1) emergency relative placement under section 245A.035;
77.30 	(2) licensed foster family settings, foster residence settings, or treatment foster care 
77.31 	settings, licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, served by a public 
77.32 	or private child care agency authorized by Minnesota Rules, parts 9545.0755 to 9545.0845;
77.33 	(3) family foster care homes approved by a tribal agency; and
77.34 	(4) unlicensed supervised settings for foster youth ages 18 to 21.
78.1 	(b) The county of financial responsibility under section 256G.02 or tribal social 
78.2 	services agency authorized in section 256.01, subdivision 14b, shall pay the entire cost of 
78.3 	any initial clothing allowance, administrative payments to child care agencies specified 
78.4 	in section 317A.907, or any other support services it authorizes, except as otherwise 
78.5 	provided by law.
78.6 	(c) The rates for the pre-Northstar Care for Children foster care program remain 
78.7 	those in effect on January 1, 2013, continuing the preexisting rate structure for foster 
78.8 	children who remain with the same caregivers and do not transition into Northstar Care for 
78.9 	Children under section 256N.21, subdivision 6.
78.10 	(d) Difficulty of care payments must be maintained consistent with Minnesota Rules, 
78.11 	parts 9560.0652 and 9560.0653, using the established reassessment tool in part 9560.0654. 
78.12 	The preexisting rate structure for the pre-Northstar Care for Children foster care program 
78.13 	must be maintained, provided that when the number of foster children in the program is 
78.14 	less than ten percent of the population in 2012, the commissioner may apply the same 
78.15 	assessment tool to both the pre-Northstar Care for Children foster care program and 
78.16 	Northstar Care for Children under the authority granted in section 256N.24, subdivision 2.
78.17 	(e) The county of financial responsibility under section 256G.02 or tribal agency 
78.18 	authorized under section 256.01, subdivision 14b, shall document the determined 
78.19 	pre-Northstar Care for Children foster care rate in the case record, including a description 
78.20 	of each condition on which the difficulty of care assessment is based. The difficulty 
78.21 	of care rate is reassessed:
78.22 	(1) every 12 months;
78.23 	(2) at the request of the foster parent; or
78.24 	(3) if the child's level of need changes in the current foster home.
78.25 	(f) The pre-Northstar Care for Children foster care program must maintain the 
78.26 	following existing program features:
78.27 	(1) monthly payments must be made to the family foster home provider;
78.28 	(2) notice and appeal procedures must be consistent with Minnesota Rules, part 
78.29 	9560.0665; and
78.30 	(3) medical assistance eligibility for foster children must continue to be determined 
78.31 	according to section 256B.055.
78.32 	(g) The county of financial responsibility under section 256G.02 or tribal agency 
78.33 	authorized under section 256.01, subdivision 14b, may continue existing program features, 
78.34 	including:
78.35 	(1) establishing a local fund of county money through which the agency may 
78.36 	reimburse foster parents for the cost of repairing damage done to the home and contents by 
79.1 	the foster child and the additional care insurance premium cost of a child who possesses a 
79.2 	permit or license to drive a car; and
79.3 	(2) paying a fee for specific services provided by the foster parent, based on the 
79.4 	parent's skills, experience, or training. This fee must not be considered foster care 
79.5 	maintenance.
79.6 	(h) The following events end the child's enrollment in the pre-Northstar Care for 
79.7 	Children foster care program:
79.8 	(1) reunification with parent or other relative;
79.9 	(2) adoption or transfer of permanent legal and physical custody;
79.10 	(3) removal from the current foster home to a different foster home;
79.11 	(4) another event that ends the current placement episode; or
79.12 	(5) attaining the age of 21.
79.13 		Subd. 2.Consideration of other programs. (a) When a child in foster care 
79.14 	is eligible to receive a grant of Retirement Survivors Disability Insurance (RSDI) 
79.15 	or Supplemental Security Income for the aged, blind, and disabled, or a foster care 
79.16 	maintenance payment under title IV-E of the Social Security Act, United States Code, title 
79.17 	42, sections 670 to 676, the child's needs must be met through these programs. Every 
79.18 	effort must be made to establish a child's eligibility for a title IV-E grant to reimburse the 
79.19 	county or tribe from the federal funds available for this purpose.
79.20 	(b) When a child in foster care qualifies for home and community-based waivered 
79.21 	services under section 256B.49 for community alternative care (CAC), community 
79.22 	alternatives for disabled individuals (CADI), or traumatic brain injury (TBI) waivers, 
79.23 	this service does not substitute for the child foster care program. When a foster child is 
79.24 	receiving waivered services benefits, the county of financial responsibility under section 
79.25 	256G.02 or tribal agency authorized under section 256.01, subdivision 14b, assesses and 
79.26 	provides foster care maintenance including difficulty of care using the established tool in 
79.27 	Minnesota Rules, part 9560.0654. If it is determined that additional services are needed to 
79.28 	meet the child's needs in the home that are not or cannot be met by the foster care program, 
79.29 	the needs must be referred to the waivered service program.

79.30 	Sec. 50. [260C.4412] PAYMENT FOR RESIDENTIAL PLACEMENTS.
79.31 	When a child is placed in a foster care group residential setting under Minnesota 
79.32 	Rules, parts 2960.0020 to 2960.0710, foster care maintenance payments must be made on 
79.33 	behalf of the child to cover the cost of providing food, clothing, shelter, daily supervision, 
79.34 	school supplies, child's personal incidentals and supports, reasonable travel for visitation, 
79.35 	or other transportation needs associated with the items listed. Daily supervision in the 
80.1 	group residential setting includes routine day-to-day direction and arrangements to 
80.2 	ensure the well-being and safety of the child. It may also include reasonable costs of 
80.3 	administration and operation of the facility.

80.4 	EFFECTIVE DATE. This section is effective January 1, 2015.

80.5 	Sec. 51. [260C.4413] INITIAL CLOTHING ALLOWANCE.
80.6 	(a) An initial clothing allowance must be available to a child eligible for:
80.7 	(1) the pre-Northstar Care for Children foster care program under section 260C.4411, 
80.8 	subdivision 1; and
80.9 	(2) the Northstar Care for Children benefits under section 256N.21.
80.10 	(b) An initial clothing allowance must also be available for a foster child in a group 
80.11 	residential setting based on the child's individual needs during the first 60 days of the 
80.12 	child's initial placement. The agency must consider the parent's ability to provide for a 
80.13 	child's clothing needs and the residential facility contracts.
80.14 	(c) The county of financial responsibility under section 256G.02 or tribal agency 
80.15 	authorized under section 256.01, subdivision 14b, shall approve an initial clothing 
80.16 	allowance consistent with the child's needs. The amount of the initial clothing allowance 
80.17 	must not exceed the monthly basic rate for the child's age group under section 256N.26, 
80.18 	subdivision 3.

80.19 	EFFECTIVE DATE. This section is effective January 1, 2015.

80.20 	Sec. 52. Minnesota Statutes 2012, section 260C.446, is amended to read:
80.21 	260C.446 DISTRIBUTION OF FUNDS RECOVERED FOR ASSISTANCE 
80.22 	FURNISHED.
80.23 	When any amount shall be recovered from any source for assistance furnished 
80.24 	under the provisions of sections 260C.001 to 260C.421and 260C.441, there shall be paid 
80.25 	into the treasury of the state or county in the proportion in which they have respectively 
80.26 	contributed toward the total assistance paid.

80.27 	EFFECTIVE DATE. This section is effective January 1, 2015.

80.28 	Sec. 53.  REPEALER.
 80.29 	(a) Minnesota Statutes 2012, sections 256.82, subdivision 4; and 260C.441, are 
80.30 	repealed effective January 1, 2015.
81.1 	(b) Minnesota Statutes 2012, section 256J.24, subdivision 10, is repealed effective 
81.2 	October 1, 2013, or upon approval from the United States Department of Agriculture, 
81.3 	whichever is later.
81.4 	(c) Minnesota Rules, part 3400.0130, subpart 8, is repealed effective retroactively 
81.5 	from September 3, 2012.
81.6 	(d) Minnesota Rules, parts 9560.0650, subparts 1, 3, and 6; 9560.0651; and 
81.7 	9560.0655, are repealed effective January 1, 2015.
81.8 	(e) Minnesota Rules, part 9502.0355, subpart 4, is repealed.