1998 Minnesota Statutes

     257.85 Relative custody assistance. 

    Subdivision 1.    Citation.  This section may be cited 
 as the "Relative Custody Assistance Act." 

    Subd. 2.    Scope.  The provisions of this section apply 
 to those situations in which the legal and physical custody of a 
 child is established with a relative according to section 
 260.191, subdivision 3b, by a court order issued on or after 
 July 1, 1997.  

    Subd. 3.    Definitions.  For purposes of this section, 
 the terms defined in this subdivision have the meanings given 
 them. 

    (a) "AFDC or MFIP standard" means the monthly standard of 
 need used to calculate assistance under the AFDC program, the 
 transitional standard used to calculate assistance under the 
 MFIP-S program, or, if neither of those is applicable, the 
 analogous transitional standard used to calculate assistance 
 under the MFIP or MFIP-R programs. 

    (b) "Local agency" means the local social service agency 
 with legal custody of a child prior to the transfer of permanent 
 legal and physical custody to a relative. 

    (c) "Permanent legal and physical custody" means permanent 
 legal and physical custody ordered by a Minnesota juvenile court 
 under section 260.191, subdivision 3b. 

    (d) "Relative" means an individual, other than a parent, 
 who is related to a child by blood, marriage, or adoption. 

    (e) "Relative custodian" means a relative of a child for 
 whom the relative has permanent legal and physical custody.  
 When siblings, including half-siblings and step-siblings, are 
 placed together in the permanent legal and physical custody of a 
 relative of one of the siblings, the person receiving permanent 
 legal and physical custody of the siblings is considered a 
 relative custodian of all of the siblings for purposes of this 
 section. 

    (f) "Relative custody assistance agreement" means an 
 agreement entered into between a local agency and the relative 
 of a child who has been or will be awarded permanent legal and 
 physical custody of the child. 

    (g) "Relative custody assistance payment" means a monthly 
 cash grant made to a relative custodian pursuant to a relative 
 custody assistance agreement and in an amount calculated under 
 subdivision 7. 

    (h) "Remains in the physical custody of the relative 
 custodian" means that the relative custodian is providing 
 day-to-day care for the child and that the child lives with the 
 relative custodian; absence from the relative custodian's home 
 for a period of more than 120 days raises a presumption that the 
 child no longer remains in the physical custody of the relative 
 custodian. 

    Subd. 4.    Duties of local agency.  (a) When a local 
 agency seeks a court order under section 260.191, subdivision 
 3b, to establish permanent legal and physical custody of a child 
 with a relative, or if such an order is issued by the court, the 
 local agency shall perform the duties in this subdivision. 

    (b) As soon as possible after the local agency determines 
 that it will seek to establish permanent legal and physical 
 custody of the child with a relative or, if the agency did not 
 seek to establish custody, as soon as possible after the 
 issuance of the court order establishing custody, the local 
 agency shall inform the relative about the relative custody 
 assistance program, including eligibility criteria and payment 
 levels.  Anytime prior to, but not later than seven days after, 
 the date the court issues the order establishing permanent legal 
 and physical custody of the child with a relative, the local 
 agency shall determine whether the eligibility criteria in 
 subdivision 6 are met to allow the relative to receive relative 
 custody assistance.  Not later than seven days after determining 
 whether the eligibility criteria are met, the local agency shall 
 inform the relative custodian of its determination and of the 
 process for appealing that determination under subdivision 9. 

    (c) If the local agency determines that the relative 
 custodian is eligible to receive relative custody assistance, 
 the local agency shall prepare the relative custody assistance 
 agreement and ensure that it meets the criteria of subdivision 6.

    (d) The local agency shall make monthly payments to the 
 relative as set forth in the relative custody assistance 
 agreement.  On a quarterly basis and on a form to be provided by 
 the commissioner, the local agency shall make claims for 
 reimbursement from the commissioner for relative custody 
 assistance payments made. 

    (e) For a relative custody assistance agreement that is in 
 place for longer than one year, and as long as the agreement 
 remains in effect, the local agency shall send an annual 
 affidavit form to the relative custodian of the eligible child 
 within the month before the anniversary date of the agreement.  
 The local agency shall monitor whether the annual affidavit is 
 returned by the relative custodian within 30 days following the 
 anniversary date of the agreement.  The local agency shall 
 review the affidavit and any other information in its possession 
 to ensure continuing eligibility for relative custody assistance 
 and that the amount of payment made according to the agreement 
 is correct. 

    (f) When the local agency determines that a relative 
 custody assistance agreement should be terminated or modified, 
 it shall provide notice of the proposed termination or 
 modification to the relative custodian at least ten days before 
 the proposed action along with information about the process for 
 appealing the proposed action. 

    Subd. 5.    Relative custody assistance agreement.  (a) 
 A relative custody assistance agreement will not be effective, 
 unless it is signed by the local agency and the relative 
 custodian no later than 30 days after the date of the order 
 establishing permanent legal and physical custody with the 
 relative, except that a local agency may enter into a relative 
 custody assistance agreement with a relative custodian more than 
 30 days after the date of the order if it certifies that the 
 delay in entering the agreement was through no fault of the 
 relative custodian.  There must be a separate agreement for each 
 child for whom the relative custodian is receiving relative 
 custody assistance. 

    (b) Regardless of when the relative custody assistance 
 agreement is signed by the local agency and relative custodian, 
 the effective date of the agreement shall be the date of the 
 order establishing permanent legal and physical custody. 

    (c) If MFIP-S is not the applicable program for a child at 
 the time that a relative custody assistance agreement is entered 
 on behalf of the child, when MFIP-S becomes the applicable 
 program, if the relative custodian had been receiving custody 
 assistance payments calculated based upon a different program, 
 the amount of relative custody assistance payment under 
 subdivision 7 shall be recalculated under the MFIP-S program. 

    (d) The relative custody assistance agreement shall be in a 
 form specified by the commissioner and shall include provisions 
 relating to the following: 

    (1) the responsibilities of all parties to the agreement; 

    (2) the payment terms, including the financial 
 circumstances of the relative custodian, the needs of the child, 
 the amount and calculation of the relative custody assistance 
 payments, and that the amount of the payments shall be 
 reevaluated annually; 

    (3) the effective date of the agreement, which shall also 
 be the anniversary date for the purpose of submitting the annual 
 affidavit under subdivision 8; 

    (4) that failure to submit the affidavit as required by 
 subdivision 8 will be grounds for terminating the agreement; 

    (5) the agreement's expected duration, which shall not 
 extend beyond the child's eighteenth birthday; 

    (6) any specific known circumstances that could cause the 
 agreement or payments to be modified, reduced, or terminated and 
 the relative custodian's appeal rights under subdivision 9; 

    (7) that the relative custodian must notify the local 
 agency within 30 days of any of the following: 

    (i) a change in the child's status; 

    (ii) a change in the relationship between the relative 
 custodian and the child; 

    (iii) a change in composition or level of income of the 
 relative custodian's family; 

    (iv) a change in eligibility or receipt of benefits under 
 AFDC, MFIP-S, or other assistance program; and 

    (v) any other change that could affect eligibility for or 
 amount of relative custody assistance; 

    (8) that failure to provide notice of a change as required 
 by clause (7) will be grounds for terminating the agreement; 

    (9) that the amount of relative custody assistance is 
 subject to the availability of state funds to reimburse the 
 local agency making the payments; 

    (10) that the relative custodian may choose to temporarily 
 stop receiving payments under the agreement at any time by 
 providing 30 days' notice to the local agency and may choose to 
 begin receiving payments again by providing the same notice but 
 any payments the relative custodian chooses not to receive are 
 forfeit; and 

    (11) that the local agency will continue to be responsible 
 for making relative custody assistance payments under the 
 agreement regardless of the relative custodian's place of 
 residence. 

    Subd. 6.    Eligibility criteria.  A local agency shall 
 enter into a relative custody assistance agreement under 
 subdivision 5 if it certifies that the following criteria are 
 met: 

    (1) the juvenile court has determined or is expected to 
 determine that the child, under the former or current custody of 
 the local agency, cannot return to the home of the child's 
 parents; 

    (2) the court, upon determining that it is in the child's 
 best interests, has issued or is expected to issue an order 
 transferring permanent legal and physical custody of the child 
 to the relative; and 

    (3) the child either: 

    (i) is a member of a sibling group to be placed together; 
 or 

    (ii) has a physical, mental, emotional, or behavioral 
 disability that will require financial support. 

    When the local agency bases its certification that the 
 criteria in clause (1) or (2) are met upon the expectation that 
 the juvenile court will take a certain action, the relative 
 custody assistance agreement does not become effective until and 
 unless the court acts as expected. 

    Subd. 7.    Amount of relative custody assistance 
 payments.  (a) The amount of a monthly relative custody 
 assistance payment shall be determined according to the 
 provisions of this paragraph. 

    (1) The total maximum assistance rate is equal to the base 
 assistance rate plus, if applicable, the supplemental assistance 
 rate. 

    (i) The base assistance rate is equal to the maximum amount 
 that could be received as basic maintenance for a child of the 
 same age under the adoption assistance program. 

    (ii) The local agency shall determine whether the child has 
 physical, mental, emotional, or behavioral disabilities that 
 require care, supervision, or structure beyond that ordinarily 
 provided in a family setting to children of the same age such 
 that the child would be eligible for supplemental maintenance 
 payments under the adoption assistance program if an adoption 
 assistance agreement were entered on the child's behalf.  If the 
 local agency determines that the child has such a disability, 
 the supplemental assistance rate shall be the maximum amount of 
 monthly supplemental maintenance payment that could be received 
 on behalf of a child of the same age, disabilities, and 
 circumstances under the adoption assistance program. 

    (2) The net maximum assistance rate is equal to the total 
 maximum assistance rate from clause (1) less the following 
 offsets: 

    (i) if the child is or will be part of an assistance unit 
 receiving an AFDC, MFIP-S, or other MFIP grant, the portion of 
 the AFDC or MFIP standard relating to the child; 

    (ii) Supplemental Security Income payments received by or 
 on behalf of the child; 

    (iii) veteran's benefits received by or on behalf of the 
 child; and 

    (iv) any other income of the child, including child support 
 payments made on behalf of the child. 

    (3) The relative custody assistance payment to be made to 
 the relative custodian shall be a percentage of the net maximum 
 assistance rate calculated in clause (2) based upon the gross 
 income of the relative custodian's family, including the child 
 for whom the relative has permanent legal and physical custody.  
 In no case shall the amount of the relative custody assistance 
 payment exceed that which the child could qualify for under the 
 adoption assistance program if an adoption assistance agreement 
 were entered on the child's behalf.  The relative custody 
 assistance payment shall be calculated as follows: 

    (i) if the relative custodian's gross family income is less 
 than or equal to 200 percent of federal poverty guidelines, the 
 relative custody assistance payment shall be the full amount of 
 the net maximum assistance rate; 

    (ii) if the relative custodian's gross family income is 
 greater than 200 percent and less than or equal to 225 percent 
 of federal poverty guidelines, the relative custody assistance 
 payment shall be 80 percent of the net maximum assistance rate; 

    (iii) if the relative custodian's gross family income is 
 greater than 225 percent and less than or equal to 250 percent 
 of federal poverty guidelines, the relative custody assistance 
 payment shall be 60 percent of the net maximum assistance rate; 

    (iv) if the relative custodian's gross family income is 
 greater than 250 percent and less than or equal to 275 percent 
 of federal poverty guidelines, the relative custody assistance 
 payment shall be 40 percent of the net maximum assistance rate; 

    (v) if the relative custodian's gross family income is 
 greater than 275 percent and less than or equal to 300 percent 
 of federal poverty guidelines, the relative custody assistance 
 payment shall be 20 percent of the net maximum assistance rate; 
 or 

    (vi) if the relative custodian's gross family income is 
 greater than 300 percent of federal poverty guidelines, no 
 relative custody assistance payment shall be made. 

    (b) This paragraph specifies the provisions pertaining to 
 the relationship between relative custody assistance and AFDC, 
 MFIP-S, or other MFIP programs: 

    (1) the relative custodian of a child for whom the relative 
 is receiving relative custody assistance is expected to seek 
 whatever assistance is available for the child through the AFDC, 
 MFIP-S, or other MFIP programs.  If a relative custodian fails 
 to apply for assistance through AFDC, MFIP-S, or other MFIP 
 program for which the child is eligible, the child's portion of 
 the AFDC or MFIP standard will be calculated as if application 
 had been made and assistance received; 

    (2) the portion of the AFDC or MFIP standard relating to 
 each child for whom relative custody assistance is being 
 received shall be calculated as follows: 

    (i) determine the total AFDC or MFIP standard for the 
 assistance unit; 

    (ii) determine the amount that the AFDC or MFIP standard 
 would have been if the assistance unit had not included the 
 children for whom relative custody assistance is being received; 

    (iii) subtract the amount determined in item (ii) from the 
 amount determined in item (i); and 

    (iv) divide the result in item (iii) by the number of 
 children for whom relative custody assistance is being received 
 that are part of the assistance unit; or 

    (3) if a child for whom relative custody assistance is 
 being received is not eligible for assistance through the AFDC, 
 MFIP-S, or other MFIP programs, the portion of AFDC or MFIP 
 standard relating to that child shall be equal to zero. 

    Subd. 8.    Annual affidavit.  When a relative custody 
 assistance agreement remains in effect for more than one year, 
 the local agency shall require the relative custodian to 
 annually submit an affidavit in a form to be specified by the 
 commissioner.  The affidavit must be submitted to the local 
 agency each year no later than 30 days after the relative 
 custody assistance agreement's anniversary date.  The affidavit 
 shall document the following: 

    (1) that the child remains in the physical custody of the 
 relative custodian; 

    (2) that there is a continuing need for the relative 
 custody assistance payments due to the child's physical, mental, 
 emotional, or behavioral needs; and 

    (3) the current gross income of the relative custodian's 
 family. 

    The relative custody assistance agreement may be modified 
 based on information or documentation presented to the local 
 agency under this requirement and as required by annual 
 adjustments to the federal poverty guidelines. 

    Subd. 9.    Right of appeal.  A relative custodian who 
 enters into a relative custody assistance agreement with a local 
 agency has the right to appeal to the commissioner according to 
 section 256.045 when the local agency establishes, denies, 
 terminates, or modifies the agreement.  Upon appeal, the 
 commissioner may review only: 

    (1) whether the local agency has met the legal requirements 
 imposed by this chapter for establishing, denying, terminating, 
 or modifying the agreement; 

    (2) whether the amount of the relative custody assistance 
 payment was correctly calculated under the method in subdivision 
 7; 

    (3) whether the local agency paid for correct time periods 
 under the relative custody assistance agreement; 

    (4) whether the child remains in the physical custody of 
 the relative custodian; 

    (5) whether the local agency correctly calculated the 
 amount of the supplemental assistance rate based on a change in 
 the child's physical, mental, emotional, or behavioral needs, 
 the relative custodian's failure to document the continuing need 
 for the supplemental assistance rate after the local agency has 
 requested such documentation; and 

    (6) whether the local agency correctly calculated or 
 terminated the amount of relative custody assistance based on 
 the relative custodian's failure to provide documentation of the 
 gross income of the relative custodian's family after the local 
 agency has requested such documentation. 

    Subd. 10.    Child's county of residence.  For the 
 purposes of the Unitary Residency Act under chapter 256G, time 
 spent by a child in the custody of a relative custodian 
 receiving payments under this section is not excluded time.  A 
 child is a resident of the county where the relative custodian 
 is a resident. 

    Subd. 11.    Financial considerations.  (a) Payment of 
 relative custody assistance under a relative custody assistance 
 agreement is subject to the availability of state funds and 
 payments may be reduced or suspended on order of the 
 commissioner if insufficient funds are available. 

    (b) Upon receipt from a local agency of a claim for 
 reimbursement, the commissioner shall reimburse the local agency 
 in an amount equal to 100 percent of the relative custody 
 assistance payments provided to relative custodians.  The local 
 agency may not seek and the commissioner shall not provide 
 reimbursement for the administrative costs associated with 
 performing the duties described in subdivision 4. 

    (c) For the purposes of determining eligibility or payment 
 amounts under the AFDC, MFIP-S, and other MFIP programs, 
 relative custody assistance payments shall be considered 
 excluded income. 

    HIST: 1997 c 203 art 5 s 21; 1998 c 406 art 1 s 14,15,37; 1998 
 c 407 art 9 s 14