SB-0890, As Passed House, October 2, 2014

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 890

     A bill to amend 1939 PA 280, entitled

"The social welfare act,"

by amending sections 115f, 115g, 115h, 115i, 115j, 115l, and 115m

(MCL 400.115f, 400.115g, 400.115h, 400.115i, 400.115j, 400.115l, and

400.115m), section 115f as amended by 2004 PA 193, sections 115g

and 115i as amended by 2009 PA 17, section 115h as added by 1994 PA

238, section 115j as amended by 2011 PA 230, and sections 115l and

115m as amended by 2002 PA 648, and by adding section 115t.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 115f. As used in this section and sections 115g to

115s:115t:

     (a) "Adoptee" means the child who is to be adopted or who is

adopted.

     (b) "Adoption assistance" means a support subsidy or a support

subsidy with medical assistance. , or both.

     (c) "Adoption assistance agreement" means an agreement between

the department and an adoptive parent regarding adoption

assistance.

     (d) "Adoption code" means the Michigan adoption code, chapter

X of the probate code of 1939, 1939 PA 288, MCL 710.21 to 710.70.

     (e) "Adoptive parent" means the parent or parents who adopt a

child under the adoption code.

     (f) "Certification" means a determination of eligibility by

the department that an adoptee is eligible for a support subsidy or

a medical subsidy, or both, or redetermined adoption assistance.

     (g) "Child placing agency" means that term as defined in

section 1 of 1973 PA 116, MCL 722.111.

(g) (h) "Child with special needs" means an individual under

the age of 18 years for whom the state has determined all of the

following:

     (i) There is a specific judicial finding that the child cannot

or should not be returned to the home of the child's parents.

     (ii) A specific factor or condition, or a combination of

factors and conditions, exists with respect to the child before the

adoption is finalized so that it is reasonable to conclude that the

child cannot be placed with an adoptive parent without providing

adoption assistance under this act. The factors or conditions to be

considered may include ethnic or family background, age, membership

in a minority or sibling group, medical condition, physical,

mental, or emotional disability, or length of time the child has

been waiting for an adoptive home.

     (iii) A reasonable but unsuccessful effort was made to place the

adoptee with an appropriate adoptive parent without providing

adoption assistance under this act or a prospective placement is

the only placement in the best interest of the child.

(h) (i) "Compact" means the interstate compact on adoption and

medical assistance as enacted in sections 115r and 115s.

(i) (j) "Court" means the family division of circuit court.

(j) (k) "Department" means the family independence

agency.department of human services.

     (k) "Determination of care rate" means a supplemental payment

to the standard age appropriate foster care rate that may be

justified when extraordinary care or expense is required. The

supplemental payment shall be based on 1 or more of the following

for which extraordinary care is required of the foster care

provider or an extraordinary expense exists:

     (i) A physically disabled child for whom the foster care

provider must provide measurably greater supervision and care.

     (ii) A child with special psychological or psychiatric needs

that require extra time and a measurably greater amount of care and

attention by the foster care provider.

     (iii) A child requiring a special diet that is more expensive

than a normal diet and that requires extra time and effort by the

foster care provider to obtain and prepare.

     (iv) A child whose severe acting out or antisocial behavior

requires a measurably greater amount of care and attention of the

foster care provider.

     (v) Any other condition for which the department determines

that extraordinary care is required of the foster care provider or

an extraordinary expense exists.

(l) "Foster care" means placement of a child outside the

child's parental home by and under the department's supervision of

a child placing agency, the court, the department, or the

department of community health.by a court of competent

jurisdiction.

     (m) "Medical assistance" means the federally aided medical

assistance program under title XIX. of the social security act,

chapter 531, 49 Stat. 620, 42 U.S.C. 1396 to 1396r-6 and 1396r-8 to

1396v.

     (n) "Medical subsidy" means payment for medical, surgical,

hospital, and related expenses necessitated by a specified

physical, mental, or emotional condition of a child who has been

placed for adoption.a reimbursement program that assists in paying

for services for an adopted child who has an identified physical,

mental, or emotional condition that existed, or the cause of which

existed, before the adoption is finalized.

     (o) "Medical subsidy agreement" means an agreement between the

department and an adoptive parent regarding a medical subsidy.

     (p) "Nonrecurring adoption expenses" means reasonable and

necessary adoption fees, court costs, attorney fees, and other

expenses that are directly related to the legal adoption of a child

with special needs. Nonrecurring adoption expenses do not include

costs or expenses incurred in violation of state or federal law or

that have been reimbursed from other sources or funds.

     (q) "Other expenses that are directly related to the legal

adoption of a child with special needs" means adoption costs

incurred by or on behalf of the adoptive parent and for which the

adoptive parent carries the ultimate liability for payment,

including the adoption study, health and psychological

examinations, supervision of the placement before adoption, and

transportation and reasonable costs of lodging and food for the

child or adoptive parent if necessary to complete the adoption or

placement process.

     (r) "Party state" means a state that becomes a party to the

interstate compact on adoption and medical assistance.

     (s) "Placement" means a placement or commitment, including the

necessity of removing the child from his or her parental home, as

approved by the court under an order of disposition issued under

section 18(1)(c) or (d) 2 of chapter XIIA of the probate code of

1939, 1939 PA 288, MCL 712A.18.712A.2.

     (t) "Redetermined adoption assistance" means a payment as

determined by a certification that may be justified when

extraordinary care or expense is required for a condition that

existed or the cause of which existed before the adoption from

foster care was finalized.

     (u) "Redetermined adoption assistance agreement" means a

written agreement regarding redetermined adoption assistance

between the department and the adoptive parent of a child.

(v) (t) "Residence state" means the state in which the child

is a resident by virtue of the adoptive parent's residency.

     (w) "Standard age appropriate foster care rate" means the

approved maintenance payment rate that is paid for a child in

foster family care.

(x) (u) "State" means a state of the United States, the

District of Columbia, the Commonwealth of Puerto Rico, the Virgin

Islands, Guam, the Commonwealth of the Northern Mariana Islands, or

a territory or possession of the United States.

(y) (v) "Support subsidy" means payment for support of a child

who has been placed for adoption from foster care.

     Sec. 115g. (1) The department may pay a support subsidy to an

adoptive parent of an adoptee who is placed in the home of the

adoptive parent under the adoption code or under the adoption laws

of another state or a tribal government, if all of the following

requirements are met:

     (a) The department has certified that the adoptee is a child

with special needs.

     (b) Certification is made before the adoptee's eighteenth

birthday.

     (c) Certification is made and the contract adoption assistance

agreement is signed by the adoptive parent or adoptive parents and

the department before the adoption is finalized.

     (2) The department shall determine eligibility for the support

subsidy without regard to the income of the adoptive parent. or

parents. The maximum amount shall be equal to the rate that the

child received in the family foster care placement or the rate the

child would have received if he or she had been in a family foster

care placement at the time of adoption. This rate includes the

difficulty determination of care rate that was paid or would have

been paid for the adoptee in a family foster care placement, except

that the amount shall be increased to reflect increases made in the

standard age appropriate foster care rate paid by the department.

The department shall not implement policy to limit the maximum

amount at an amount less than the family foster care rate,

including the difficulty determination of care rate, that was paid

for the adoptee while the adoptee was in family foster care.

     (3) The department shall, on a separate form, require an

adoptive parent to sign that he or she either requests or does not

request a support subsidy.

     (4) The adoptive parent shall present to the department the

first offer of the amount requested for the support subsidy. The

department may accept the adoptive parent's offer or present a

counteroffer to the adoptive parent for the support subsidy. The

department shall consider the prospective adoptive parent's

requested rate if that requested rate is consistent with the needs

of the child being adopted and the prospective adoptive family’s

circumstances, unless the requested rate exceeds the maximum foster

care rate the child is receiving or would receive if placed in a

licensed family foster home.

(5) (3) The department shall complete the certification

process within 30 days after it receives a request for a support

subsidy.

     Sec. 115h. (1) The Except as provided in subsection (2), the

department may pay a medical subsidy as reimbursement for services

either to a service provider or to the adoptive parent or parents

of an adoptee who is placed for adoption in the home of the

adoptive parent or parents pursuant to under the adoption code or

the laws of any other state or a tribal government, if all of the

following requirements are met:

     (a) The expenses to be covered by the medical subsidy are

necessitated by a physical, mental, or emotional condition of the

adoptee that existed or the cause of which existed before the

adoption petition was filed or certification was established,

whichever occurred first.

     (b) The adoptee was in foster care at the time the petition

for adoption was filed. This subdivision does not apply to

adoptions confirmed pursuant to the adoption code before June 28,

1992.

     (c) Certification was made before the adoptee's eighteenth

birthday.

     (2) The department shall not pay a medical subsidy to an

adoptive parent for providing treatment or services to his or her

own adopted child.

(3) (2) The department shall determine the amount of the

medical subsidy without respect to the income of the adoptive

parent or parents. The department shall not pay a medical subsidy

until all other available public money and third party payment is

used payments have been exhausted. For purposes of this subsection,

third party payment is available if an adoptive parent has an

option, at or after the time of certification, to obtain from the

parent's employer health coverage for the child, with or without

cost to the adoptive parent. The department may waive this

subsection in cases of undue hardship.

(4) (3) The adoptive parent or parents may request a medical

subsidy before or after the confirmation of the adoption is

finalized. A medical subsidy requested after the adoptee is placed

in adoption is effective the date the application request is

received by the department if the necessary required documentation

for certification is received within 90 calendar days after the

request is made. date the application is received. In allocating

available funding for medical subsidies, the department shall not

give preferential treatment to requests that are made before the

confirmation of an adoption is finalized, but shall allocate funds

based on a child's need for the subsidy.

(5) (4) Payment of a medical subsidy for treatment of a mental

or emotional condition is limited to outpatient treatment unless 1

or more of the following apply:

     (a) Certification for the medical subsidy was made before the

date the adoption confirmation date.was finalized.

     (b) The adoptee was placed in foster care by the court

pursuant to section 18(1)(d) or (e) of chapter XIIA of Act No. 288

of the Public Acts of 1939, being section 712A.18 of the Michigan

Compiled Laws, before the petition for adoption was filed.

     (c) The adoptee was certified for a support subsidy or

redetermined adoption assistance.

     Sec. 115i. (1) If adoption assistance is to be paid, the

department and the adoptive parent or parents shall enter into an

adoption assistance agreement covering that includes all of the

following:

     (a) The duration of the adoption assistance to be paid.

     (b) Notice of potential eligibility for redetermined adoption

assistance.

(c) (b) The amount to be paid and, if appropriate, eligibility

for medical assistance.

(d) (c) Conditions for continued payment of the adoption

assistance as established by statute.

(e) (d) Any services and other assistance to be provided under

the adoption assistance agreement.

(f) (e) Provisions to protect the interests of the child in

cases in which the adoptive parent or adoptive parents move moves

to another state while the adoption assistance agreement is in

effect.

     (2) If it is determined that a child is eligible for

redetermined adoption assistance under this act, the department and

the adoptive parent shall enter into a redetermined adoption

assistance agreement that includes all of the following:

     (a) The duration of the redetermined adoption assistance to be

paid.

     (b) The amount of redetermined adoption assistance to be paid.

     (c) If appropriate, eligibility for medical assistance.

     (d) Conditions for continued payment of the redetermined

adoption assistance. Conditions shall be the same as for adoption

assistance as established by law.

     (e) Any services and other assistance to be provided under the

redetermined adoption assistance agreement.

     (f) Provisions to protect the interests of the child in cases

in which the adoptive parent moves to another state while the

redetermined adoption assistance agreement is in effect.

(3) (2) If medical subsidy eligibility is certified, the

department and the adoptive parent shall enter into a medical

subsidy agreement covering all of the following:

     (a) Identification of the physical, mental, or emotional

condition covered by the medical subsidy.

     (b) The duration of the medical subsidy agreement.

     (c) Conditions for continued eligibility for the medical

subsidy as established by statute.

(4) (3) The department shall give a copy of the adoption

assistance agreement, the redetermined adoption assistance

agreement, or medical subsidy agreement , or both , to the adoptive

parent. or parents.

(5) (4) Unless the medical condition of the adoptee no longer

exists, or an event described in section 115j has occurred, as

indicated in a report filed under subsection (6) (7) or as

otherwise determined by the department, the department shall not

modify or discontinue a medical subsidy.

(6) (5) An adoption assistance agreement, redetermined

adoption assistance agreement, or medical subsidy agreement does

not affect the legal status of the adoptee or the legal rights and

responsibilities of the adoptive parent. or parents.

(7) (6) The adoptive parent or parents shall file a report

with the department at least once each year as to the location of

the adoptee and other matters relating to the continuing

eligibility of the adoptee for adoption assistance, redetermined

adoption assistance, or a medical subsidy. , or both.

     Sec. 115j. (1) Except as provided in subsections (2) to (4),

(5) and section 115t, adoption assistance, or a medical subsidy, or

both, or redetermined adoption assistance shall continue until 1 of

the following occurs:

     (a) The adoptee becomes 18 years of age.

     (b) The adoptee is emancipated.

     (c) The adoptee dies.

     (d) The adoption is terminated.

     (e) A determination of ineligibility is made by the

department.

     (2) If sufficient funds are appropriated by the legislature in

the department's annual budget, adoption support subsidy assistance

agreements, redetermined adoption assistance agreements, or

adoption medical subsidy agreements, or both, may be extended

through state funding for an adoptee under 21 years of age if all

of the following criteria are met:

     (a) The adoptee has not completed high school or a GED

program.

     (b) The adoptee is regularly attending high school or a GED

program or a program for children with disabilities on a full-time

basis and is progressing toward achieving a high school diploma,

certificate of completion, or GED.

     (c) The adoptee is not eligible for supplemental security

income.

     (3) Adoption support subsidy assistance agreements may be

extended through title IV-E funding for an eligible adoptee up to

the age of 21 years of age if the department determines that the

child has a mental or physical disability that warrants

continuation of adoption assistance and the child was adopted

before 16 years of age.

     (4) If sufficient funds are appropriated by the legislature in

the department's annual budget, redetermined adoption assistance

agreements may be extended through state funding for an eligible

adoptee up to 21 years of age if the department determines that the

child has a mental or physical disability that warrants

continuation of adoption assistance and the child was adopted

before 16 years of age.

(5) (4) Adoption support subsidy assistance agreements or

redetermined adoption assistance agreements may be extended for a

child adopted on or after his or her sixteenth birthday if the

department determines that the eligible adoptee meets the

requirements set forth in the young adult voluntary foster care

act, 2011 PA 225, MCL 400.641 to 400.671.

(6) (5) Adoption assistance, redetermined adoption assistance,

and a medical subsidy shall continue even if the adoptive parent or

the adoptee leaves the state.

(7) (6) An adoption support Support subsidy or redetermined

adoption assistance shall continue during a period in which the

adoptee is removed for delinquency from his or her home as a

temporary court ward based on proceedings under section 2(a) 18 of

chapter XIIA of the probate code of 1939, 1939 PA 288, MCL

712A.2.712A.18.

(8) (7) Upon the death of the adoptive parent, the department

shall continue making support subsidy, redetermined adoption

assistance payments, or continue medical subsidy eligibility, or

both, through state funding to the guardian of the adoptee if a

guardian is appointed as provided in section 5202 or 5204 of the

estates and protected individuals code, 1998 PA 386, MCL 700.5202

and 700.5204.

     Sec. 115l. (1) The department shall enter into an agreement

with the adoptive parent or parents of a child with special needs

under this section for the payment of nonrecurring adoption

expenses incurred by or on behalf of the adoptive parent. or

parents. The agreement may be a separate document or part of an

adoption assistance agreement under section 115i. The agreement

under this section shall indicate the nature and amount of

nonrecurring adoption expenses to be paid by the department, which

shall not exceed $2,000.00 for each adoptive placement meeting the

requirements of this section. The department shall make payment as

provided in the agreement.

     (2) An agreement under this section shall be signed at or

before entry of an order of adoption under the adoption code.

Claims for payment shall be filed with the department within 2

years after entry of the order of adoption.

     (3) The department shall take all actions necessary and

appropriate to notify potential claimants under this section,

including compliance with federal regulations.

     Sec. 115m. (1) The department shall prepare and distribute to

adoption facilitators and other interested persons a pamphlet

information describing the adoption process and the adoption

assistance and medical subsidy programs established under sections

115f to 115s. The state department shall provide a copy of the

pamphlet information to each prospective adoptive parent before

placing a child with that parent.

     (2) The description of the adoption process required under

subsection (1) shall include at least all of the following:

     (a) The steps that must be taken under the adoption code to

complete an adoption, and a description of all of the options

available during the process.

     (b) A description of the services that are typically available

from each type of adoption facilitator.

     (c) Recommended questions for a biological parent or

prospective adoptive parent to ask an adoption facilitator before

engaging that adoption facilitator's services.

     (d) A list of the rights and responsibilities of biological

parents and prospective adoptive parents.

     (e) A description of the information services available to

biological and prospective adoptive parents including, but not

limited to, all of the following:

     (i) The registry of adoptive homes established and maintained

by the department under section 8 of the foster care and adoption

services act, 1994 PA 203, MCL 722.958.

     (ii) The directory of children that is produced under section 8

of the foster care and adoption services act, 1994 PA 203, MCL

722.958.

     (iii) The public information forms maintained by the department

pursuant according to section 14d of 1973 PA 116, MCL 722.124d.

     (f) A statement about the existence of the children's

ombudsman and its authority as an investigative body.

     (g) A statement about the importance and availability of

counseling for all parties to an adoption and that a prospective

adoptive parent must pay for counseling for a birth parent or

guardian unless the birth parent or guardian waives the counseling.

     Sec. 115t. (1) If sufficient funds are appropriated in the

department's annual budget and subject to subsection (4), beginning

January 1, 2015, the department shall pay redetermined adoption

assistance to an adoptive parent of an adoptee who is placed in the

adoptive parent's home under the adoption code or under the

adoption laws of another state or a tribal government, if the

adoptive parent requests redetermined adoption assistance and both

of the following requirements are met:

     (a) The department has certified that the adoptee requires

extraordinary care or expense due to a condition the cause of which

existed before the adoption was finalized.

     (b) Certification is made before the adoptee's eighteenth

birthday.

     (2) If the department denies or the adoptive parent disagrees

with the certification, the adoptive parent may request a hearing

through an administrative law judge in a manner consistent with the

rules promulgated under the administrative procedures act of 1969,

1969 PA 306, MCL 24.201 to 24.328.

     (3) Redetermined adoption assistance does not affect or

duplicate any original adoption assistance agreement that may be in

place at the time that redetermined adoption assistance eligibility

is requested. Redetermined adoption assistance shall be determined

without regard to the income of the adoptive parent and shall be

based on 1 or more of the following for which extraordinary care is

required of the adoptive parent or an extraordinary expense exists

in excess of a support subsidy:

     (a) A physically disabled child for whom the adoptive parent

must provide measurably greater supervision and care.

     (b) A child with special psychological or psychiatric needs

that require extra time and a measurably greater amount of care and

attention by the adoptive parent.

     (c) A child requiring a special diet that is more expensive

than a normal diet and that requires extra time and effort by the

adoptive parent to obtain and prepare.

     (d) A child whose severe acting out or antisocial behavior

requires a measurably greater amount of care and attention of the

adoptive parent.

     (e) Any other condition for which the department determines

that extraordinary care is required of the adoptive parent or an

extraordinary expense exists.

     (4) An adoptive parent who has an adoption assistance

agreement signed and in effect before January 1, 2015 may request

redetermined adoption assistance under this section in the same

manner as provided in this section beginning January 1, 2015 but

not after March 31, 2015.

     (5) An adoptive parent may only request 1 redetermined

adoption assistance certification to be made under subsection (1)

or (4) per adoptee placed in the adoptive parent's home.

     (6) An adoptive parent of an adoptee who was adopted from

foster care between the ages of 0 and 18 and whose adoption was

finalized after January 1, 2015 may request redetermined adoption

assistance under this section.