1. (a) Overview.

   1. (1)

      1. (A) For children for whom a permanency goal of guardianship with a relative has been established, the Division of Children and Family Services offers a federal (Title IV-E) Subsidized Guardianship Program to further promote permanency for those children, provided subsidized guardianship eligibility criteria are met.
      2. (B) Any non-IV-E eligible child may enter into a subsidized guardianship supported by Arkansas State General Revenue if the Department of Human Services determines that adequate funding is available, and all other Subsidized Guardianship Program criteria are met.
      3. (C) The monthly subsidized guardianship payment shall be used to help relative and fictive kin guardian or guardians defray some costs of caring for the child’s needs.

   2. (2)

      1. (A) During permanency planning staffings guardianship should be explored as a potential permanency option.
      2. (B) If it is determined at the permanency planning hearing that a guardianship arrangement with relatives or fictive kin is in the child’s best interest and the child’s permanency goal is changed to legal guardianship, the Division of Children and Family Services shall then determine if a specific guardianship arrangement may be supported by a subsidy through the Division of Children and Family Services’ Subsidized Guardianship Program.
      3. (C) Only guardians who initially served as an approved relative or fictive kin foster home may apply for a guardianship subsidy.
      4. (D)

2. (i) For the purposes of determining eligibility for a guardianship subsidy, the necessary degree of relationship is satisfied by a relative or fictive kin as defined in Arkansas Code § 9-28-108.

   1. (ii)
3. (a) (a) A relative means a person within the fifth degree of kinship by virtue of blood or adoption.

4. (b) (b) The fifth degree is calculated according to the child.

   1. (iii) Fictive kin is defined as a person selected by the department who:
5. (a) (a) Is not related to a child by blood or marriage; and

6. (b) (b) Has a strong, positive, and emotional tie or role in the child’s life or the child’s parent’s life if the child is an infant.

   1. (3)

      1. (A) When it is in the best interest of each of the children, the Division of Children and Family Services shall attempt to place siblings together in the same guardianship arrangement.
      2. (B) Siblings may be related by biological, marital, or legal ties.
      3. (C) A child who meets the eligibility criteria for a subsidized guardianship will qualify his or her siblings for subsidized guardianship as well, provided the siblings are placed in the same relative or fictive kin home.
      4. (D) The child who qualifies for a guardianship subsidy does not necessarily have to be placed at the same time as his or her siblings in the relative or fictive kin home.
      5. (E) The guardianships for each child in the same relative or fictive kin home do not need to be finalized in any particular sequence.

7. (b) Eligibility criteria for subsidized guardianship. A child is eligible for a subsidized guardianship in Arkansas if the Division of Children and Family Services determines that:

   1. (1) The child has been removed from his or her home pursuant to a judicial determination that continuation in the home would be contrary to the welfare of the child and, as such, the child has been placed in department custody per judicial order;

   2. (2)

      1. (A) The child has resided for at least six (6) consecutive months in the fully approved foster home of the prospective relative or fictive kin guardian or guardians which is eligible to receive payments on behalf of the child, i.e., the prospective relative or fictive kin guardian’s home is no longer a provisional foster home and has been serving as a fully approved foster home to the child seeking a legal guardianship arrangement for at least six (6) consecutive months (see 9 CAR § 40-801 et seq., Development of Resource Homes and Support to Resource Parents).
      2. (B) Any disruption in placement with the prospective relative or fictive kin guardian that is less than fourteen (14) days will not affect the six-consecutive-month qualifying period;
   3. (3) Being returned home to the person from whom he or she was removed or being adopted are not appropriate permanency options for the child, the guardianship arrangement is in the child’s best interest, and documentation supporting these determinations is provided;
   4. (4) The child demonstrates a strong attachment to the prospective relative guardian or guardians and the guardian or guardians has a strong commitment to caring permanently for the child/youth;
   5. (5) Each child is consulted regarding the guardianship arrangement; and

   6. (6) The youth, if more than twelve (12) years of age, signs a consent to guardianship if he or she agrees to the guardianship arrangement, and it is agreed that procedures to finalize the guardianship should be initiated, unless the court determines it is in the minor’s best interest to dispense with the minor’s consent.

      1. (c) Case plan requirements for subsidized guardianship. If legal guardianship with a relative or fictive kin is the intended permanency goal for a child and the relative or fictive kin guardian or guardians intend to apply for a guardianship subsidy, the child’s case plan shall include a description of the ways in which the child meets the eligibility requirements for a subsidized guardianship arrangement to include:
   7. (1) The steps that the agency has taken to determine that it is not appropriate for the child to be returned home or adopted;
   8. (2) The reasons for any separation of siblings during placement and description of the efforts made to place currently separated siblings together, the efforts made to provide frequent visitation or other ongoing interaction between siblings, and efforts to reunify separated siblings;
   9. (3) The reasons why a permanent placement with an appropriate and willing relative or fictive kin supported by a subsidized guardianship arrangement is in the child’s best interest;
   10. (4) The efforts that the Division of Children and Family Services has made to discuss adoption by the child’s relative or fictive kin foster parent as a more permanent alternative to legal guardianship and, in the case of a relative or fictive kin foster parent who has chosen not to pursue adoption, documentation of the reasons;
   11. (5) The efforts made by the Division of Children and Family Services to discuss with the child’s parent or parents the guardianship arrangement, or the reasons why the efforts were not made;
   12. (6) The process in place to allow for a successor guardian in the event that the relative or fictive kin guardian of the child dies or is no longer able to care for the child; and

   13. (7) Any appropriate transitional youth services for those youth who exit foster care and enter into a guardianship arrangement supported by a subsidy after sixteen (16) years of age.

       1. (d) Additional requirements for subsidized guardianship when proposed guardian resides out-of-state.
   14. (1) If a guardianship supported by a subsidy is being pursued with a relative or fictive kin who resides outside of Arkansas, that relative or fictive kin must identify a willing resident agent for service within Arkansas.
   15. (2) The resident agent for service is a person who must accept service of any action or suit with respect to the guardianship, as applicable, on behalf of the out-of-state guardian.
   16. (3) The resident agent of service must provide any action or suit with respect to the guardianship received as the resident agent to the out-of-state guardian.
   17. (4) Any individual who agrees to serve as the resident agent for service must accept his or her designation in writing and this designation will be filed with the court.

8. (e) Subsidized guardianship payments.

   1. (1)

      1. (A) The Division of Children and Family Services will provide subsidized guardianship payments on behalf of eligible children and their siblings (when placed in the same relative or fictive kin home) to approved relatives or fictive kin who assume legal guardianship of the youth for whom they have cared as fully approved foster parents.
      2. (B) Subsidized guardianship payments cannot be made prior to the transfer of guardianship.
      3. (C) The prospective relative or fictive kin guardians will receive foster care board payments until the transfer of guardianship occurs.
   2. (2) For an eligible child entering a subsidized guardianship arrangement prior to reaching sixteen (16) years of age (and their siblings placed in the same home prior to reaching sixteen (16) years of age), the subsidized guardianship payment will cease when the child reaches eighteen (18) years of age.

   3. (3) Any eligible child in foster care entering a subsidized guardianship arrangement at sixteen (16) years of age or older (and his or her siblings in the same home at sixteen (16) years of age or older) is eligible for subsidized guardianship until he or she reaches twenty-one (21) years of age provided at least one (1) of the following criteria are met:

      1. (A) The child is completing secondary education or a program leading to an equivalent credential;
      2. (B) The child is enrolled in an institution which provides postsecondary or vocational education;
      3. (C) The child is participating in a program or activity designed to promote or remove barriers to employment;
      4. (D) The child is employed for at least eighty (80) hours per month; or
      5. (E) The child is incapable of doing any of the above described activities due to a medical condition.

   4. (4)

      1. (A) In addition, guardianship subsidy payments may also continue for a child up to twenty-one (21) years of age if the state determines that the child has a mental or physical handicap that warrants the continuation of assistance.
      2. (B) If the state determines the youth has a mental or physical handicap that warrants the continuation of the guardianship subsidy assistance up to twenty-one (21) years of age, that youth is not subject to the education and employment requirements listed above for youth eighteen to twenty-one (18-21) years of age.
      3. (C) Requests for extension of subsidy agreements up to twenty-one (21) years of age due to a mental or physical handicap must be submitted by the guardian or guardians to the subsidized guardianship coordinator or designee at least three (3) months prior to the termination of the current subsidy agreement.
      4. (D) Such extension requests received after this time frame, to include after the youth has turned eighteen (18) years of age but not yet reached twenty-one (21) years of age, may still be considered.
      5. (E) However, any subsidy agreement that is extended past eighteen (18) years of age due to a mental or physical handicap will take effect on the date the new subsidy agreement reflecting the extension is signed.
      6. (F) Any monthly subsidy payments that were not made between the end date of the initial subsidy agreement and the date of the new subsidy agreement reflecting a subsidy extension past eighteen (18) years of age will not be made retroactively.
   5. (5) The Division of Children and Family Services will ensure that the relatives or fictive kin receiving a subsidized guardianship payment on behalf of a child over eighteen (18) years of age provide documentation annually that the child meets the employment or education requirements listed above up to twenty-one (21) years of age.
   6. (6) If a child is incapable of meeting the above referenced education or employment requirements due to a medical condition or has a mental or physical handicap or handicaps the reason for which the child is incapable of meeting the education or employment requirements must be documented by a medical professional and updated annually until the child reaches twenty-one (21) years of age.

   7. (7)

      1. (A) When siblings are placed together in a subsidized guardianship arrangement, the subsidized guardianship payments will be paid on behalf of each of the siblings.
      2. (B) The sibling of a child eligible for subsidized guardianship does not need to meet any subsidized guardianship eligibility requirements himself or herself.

   8. (8) When determining the amount of each subsidized guardianship payment the following shall be considered:

      1. (A)

         1. (i) The needs of the child as supported by accompanying documentation.
         2. (ii) The rate should not be linked to the means of the prospective relative or fictive kin guardians;

      2. (B)

         1. (i) The subsidized guardianship payment shall not exceed the foster care board payment that would have been paid on that child’s behalf if he or she had remained in a foster family home.
         2. (ii) Any child receiving a subsidized guardianship payment may have his or her guardianship subsidy adjusted per Arkansas rate structure based on the child’s age or the child’s special needs.
         3. (iii) The subsidy shall not be greater than the amount which the child would have received had the child remained in a foster family home;

      3. (C)

         1. (i) The relative or fictive kin guardians may not draw both a Supplementary Security Income payment and a subsidized guardianship payment.
         2. (ii) The relatives or fictive kin shall determine which form of assistance best meets the needs of the child;
      4. (D) The relative or fictive kin guardians may draw both a Title II Social Security Administration payment and a subsidized guardianship payment but the total amount of the combined payments may not exceed the child’s foster care board payment; and

      5. (E)

         1. (i) Any conserved funds in a child’s trust account shall not affect a child's subsidized guardianship eligibility or payments.
         2. (ii) However, the Division of Children and Family Services Eligibility Unit shall close any trust account or accounts when a child exits care.
         3. (iii) The administering agency of the trust account will redistribute the funds per its respective regulations after any board payments, contract reimbursements, and/or overpayments are deducted from the account balance prior to close out.

   9. (9)

      1. (A) In addition to the monthly subsidized guardianship payments, approved relative or fictive kin guardian or guardians of a child eligible for the subsidized guardianship program will also receive funding for the total cost of nonrecurring expenses related to obtaining legal guardianship up to two thousand dollars ($2,000) per child.
      2. (B) The majority of legal services should be provided by the department Office of Chief Counsel which would not incur legal fees upon the relative or fictive kin guardians.

   10. (10)

       1. (A) The relative or fictive kin guardian or guardians are required to inform the Division of Children and Family Services of circumstances that would make them ineligible for subsidized guardianship payments or eligible for payments in a different amount, e.g., if the child becomes eligible for and begins receiving SSA payments.
       2. (B) The relative or fictive kin guardian or guardians must also notify the Division of Children and Family Services of any change of address.
       3. (C) Any subsidized guardianship payment will remain in effect without regard to the state of residence of the relative or fictive kin guardian or guardians.

9. (f) Medical coverage for subsidized guardianship arrangements.

   1. (1)

      1. (A) The Division of Children and Family Services will ensure health insurance coverage under Medicaid Title XIX for any Title IV-E eligible child, and their Title IV-E eligible siblings when placed in the same relative or fictive kin home, who receives a subsidized guardianship payment as the child must be eligible for and receiving Title IV-E guardianship subsidy payments in order to be categorically eligible for Medicaid.
      2. (B) The subsidized guardianship agreement will indicate Medicaid coverage for Title IV-E eligible children.

   2. (2)

      1. (A) A non-Title IV-E eligible child may qualify for certain Medicaid categories depending on the needs of the child.
      2. (B) The relative or fictive kin guardian of a non-Title IV-E eligible child may apply for health insurance (e.g., ARKids First Program) for the child through their local department county office.
      3. (C) Coverage through the local department county office is not guaranteed and may only extend until the time the child reaches nineteen (19) years of age.

10. (g) Subsidized guardianship program determinations.

    1. (1) The child’s permanency planning staffing shall be the forum in which the determination regarding whether a guardianship arrangement is in the child’s best interest and his or her siblings’, if applicable.

    2. (2)

       1. (A) If the child’s permanency planning hearing results in a permanency goal of a legal guardianship with a specific relative or fictive kin, the Division of Children and Family Services shall then determine if the child (and his or her siblings if applicable) and prospective relative or fictive kin guardian or guardians may qualify for a subsidized guardianship.
       2. (B) If the child’s FSW believes the child and relative or fictive kin guardians may qualify based on the subsidized guardianship eligibility and case plan criteria, he or she will make a referral to the Division of Children and Family Services Subsidized Guardianship Coordinator or designee.

    3. (3)

       1. (A) If the Division of Children and Family Services Subsidized Guardianship Coordinator or designee agrees that the family is a candidate for subsidized guardianship, a family-centered subsidized guardianship determination meeting will be held.
       2. (B) The purpose of the meeting is to explain the Subsidized Guardianship Program to the prospective relative or fictive kin guardian or guardians and ensure that eligibility and case plan criteria for the program are met.
       3. (C) The Division of Children and Family Services Subsidized Guardianship Coordinator or designee will facilitate the family-centered subsidized guardianship determination meetings.

    4. (4)

       1. (A) If it is determined that all Subsidized Guardianship Program eligibility and case plan criteria are satisfied, the decision shall be relayed to the Subsidized Guardianship Oversight Committee via the Division of Children and Family Services Subsidized Guardianship Coordinator or designee.
       2. (B) The committee serves as an auditing entity to ensure all eligibility and case plan requirements have been met.

    5. (5) The committee shall include, but is not limited to the Division of Children and Family Services:

       1. (A) Subsidized Guardianship Coordinator or designee;
       2. (B) Foster Care Manager or designee;
       3. (C) Adoption Manager or designee; and
       4. (D) Director or designee in cases involving special subsidy requests.
    6. (6) If the committee verifies that all Subsidized Guardianship Program eligibility and case plan criteria have been met, the department may then petition the court for a guardianship hearing to finalize the guardianship and subsidized guardianship agreement.

11. (h) Subsidized guardianship agreements.

    1. (1)

       1. (A) Once guardianship with a specific relative or fictive kin has been established as the child’s permanency goal and then after the Division of Children and Family Services has determined that the guardianship may be supported by a guardianship subsidy, the family and the Division of Children and Family Services will finalize the subsidized guardianship agreement.
       2. (B) A subsidized guardianship agreement, a written, binding agreement negotiated between the relative or fictive kin guardian or guardians, the Division of Children and Family Services, and other relevant agencies must be in place prior to the finalization of the legal guardianship supported by a subsidy.
       3. (C) The prospective relative or fictive kin guardian or guardians shall receive a copy of the agreement.

    2. (2) The subsidized guardianship agreement will specify:

       1. (A)

          1. (i) The amount of, and manner in which, each subsidized guardianship payment will be provided under the agreement.
          2. (ii) Subsidized guardianship payment should not exceed the amount of the child’s foster care board payment unless special circumstances related to the child’s care warrant a special subsidy rate;
       2. (B) That (and the manner in which) the payment may be adjusted periodically, in consultation with the relative or fictive kin guardian or guardians based on the circumstances of the relative or fictive kin guardian and the needs of the child;
       3. (C) The additional services and assistance that the child and relative or fictive kin guardian or guardians will be eligible for under the agreement including Medicaid coverage that may be available through the Division of Children and Family Services Eligibility Unit or, in the case of non-IV-E children, through the local department county office;
       4. (D) The procedure by which the relative or fictive kin guardian or guardians may apply for additional services needed;
       5. (E) That the Division of Children and Family Services will pay the total cost of nonrecurring expenses associated with obtaining legal guardianship of the child/youth up to two thousand dollars ($2,000);
       6. (F) That the child shall retain eligibility for federal adoption assistance payments under Title IV-E, provided he or she was eligible when the subsidized guardianship agreement was negotiated, if the guardian later decides to adopt the child;
       7. (G) That the agreement will become effective upon the entering of a court order granting guardianship of the child to the guardian or guardians;
       8. (H) That the agreement shall remain in effect without regard to state residency of the relative or fictive kin guardian;
       9. (I) That the relative or fictive kin guardian or guardians are required to respond to guardianship agreement review requests from the Division of Children and Family Services so that the Division of Children and Family Services can file an annual report with the court as required in law; and

       10. (J)

           1. (i) Designated successor guardian or guardians, if desired, for the child in the event that the current relative or fictive kin guardian is no longer able to fulfill guardianship responsibilities.
           2. (ii)
12. (a) (a) Successor guardian or guardians and all household members within that individual’s home must clear any applicable Child Maltreatment Central Registry checks, Division of Arkansas State Police criminal record checks, and a vehicle safety check before being identified as a potential successor guardian in the subsidized guardianship agreement.

13. (b) (b) In the event the initial relative or fictive kin guardian dies or is otherwise incapacitated, placement with the successor guardian identified in the initial guardianship agreement (or any amendments to the agreement) may be pursued, as appropriate.

    1. (c) (c) After a new guardianship subsidy agreement is signed by the successor guardian and the Division of Children and Family Services and the new guardianship is subsequently entered before the court, the subsidized guardianship assistance payments will continue to the successor guardian.

       1. (iii) However, the child must also continue to meet all subsidized guardianship eligibility criteria in order to move forward with a subsidized guardianship arrangement with the identified successor guardian.

          1. (i) Annual progress report and review of subsidized guardianship agreement.
    2. (1) An annual progress report and review of the subsidized guardianship agreement are required annually in order for the subsidized guardianship and subsidized guardianship payments of any amount or payment rate to continue.
    3. (2) The progress report and review shall be provided to the guardian or guardians by the Division of Children and Family Services Subsidized Guardianship Coordinator or designee.
    4. (3) Upon receipt of the completed progress report and review, the Subsidized Guardianship Coordinator or designee will send those documents to the appropriate court so that the progress report can be filed with the court as required in law.
    5. (4) An accounting of the guardianship subsidy is not required.
    6. (5) The subsidized guardianship payments granted at the time of the annual progress report will reflect the child’s current documented level of need.

14. (j) Revision or termination of subsidized guardianship agreement.

    1. (1)

       1. (A) Revisions to the subsidized guardianship agreement and/or payments may be requested any time:

          1. (i) There is a significant change in the child’s circumstance; and
          2. (ii) The relative or fictive kin guardian can provide the required and/or requested documentation.
       2. (B) To request a revision to the subsidized guardianship agreement and/or payments, the family shall contact the Division of Children and Family Services Subsidized Guardianship Coordinator or designee.

    2. (2) The subsidized guardianship agreement and, consequently the subsidized guardianship payments, shall be revised or terminated as appropriate:

       1. (A) If the child is absent from the relative or fictive kin guardian home for more than fourteen (14) days in a month (in such an event, the child will be eligible for only a portion of the month that he or she was in the relative or fictive kin guardian home) excluding when a child eighteen (18) years of age or older lives in an approved transitional living situation outside of the home (e.g., college dorm);
       2. (B) When the terms of the subsidized guardianship agreement are fulfilled;

       3. (C)

          1. (i) If the child begins receiving SSI, Social Security Administration, or any other source of income excluding any income that the child may earn from his or her own employment.
          2. (ii) The relative or fictive kin guardian is responsible for notifying the Division of Children and Family Services if the child begins receiving other sources of income;
       4. (D) If the child has attained the age of eighteen (18) years of age for those who entered into the subsidized guardianship arrangement prior to sixteen (16) years of age;
       5. (E) If the child has attained twenty-one (21) years of age for those who entered into the subsidized guardianship arrangement at sixteen (16) years of age or older;
       6. (F) If the child who has an extended subsidy (i.e., up to twenty-one (21) years of age) does not meet the education or employment conditions outlined above in the subsidized guardianship payments section;
       7. (G) If the child who has extended subsidy, i.e., up to twenty-one (21) years of age, is no longer determined to have a mental or physical handicap which warrants the continuation of assistance;
       8. (H) If the child who has an extended subsidy, i.e., up to twenty-one (21) years of age, upon reaching eighteen (18) years of age or older requests the guardianship be terminated;
       9. (I) If the child becomes an emancipated minor;
       10. (J) If the child marries;
       11. (K) If the child enlists in the military;
       12. (L) If the relative or fictive kin guardian or guardians are no longer legally or financially responsible for the support of the child;
       13. (M) If the guardian or guardians die;
       14. (N) If the guardianship is vacated; or
       15. (O) If the child dies.
    3. (3) Subsidized guardianship payments may continue to be paid on behalf of the child if the child moves out of the relative or fictive kin guardian’s home or otherwise lives independently of the guardian or guardians as long as the guardian or guardians continue to provide support to the child.

    4. (4)

       1. (A) If a child whose relatives or fictive kin are receiving subsidized guardianship payments on his or her behalf re-enters department custody, the subsidized guardianship agreement will be terminated until such time that the child is reunified with the relative or fictive kin guardian or guardians or, in certain cases until such time that a legal guardianship with the successor guardian is determined to be in the child’s best interest, it is determined that:

          1. (i) The child and successor guardian qualify for a subsidized guardianship; and
          2. (ii) A new subsidized guardianship agreement with the successor guardian is finalized.
       2. (B) A successor guardian is not entitled to any payments that would have been made to the initial guardian during the time a child spends in department custody.
       3. (C) The successor guardian may only receive subsidized guardianship payments once the court has formally appointed the successor guardian as the child’s legal guardian and the subsidized guardianship agreement is in effect.

15. (k) Appeals.

    1. (1)

       1. (A) Relative or fictive kin guardian or guardians may appeal the Division of Children and Family Services’ decision to deny, terminate, or modify their child’s subsidized guardianship agreement and/or payments in accordance with the rules and procedures of the state’s fair hearing and appeal process per the Appeals and Hearings Procedures, 25 CAR pt. 34.
       2. (B) The relative or fictive kin guardian or guardians must appeal an adverse decision within thirty (30) calendar days of written notice of the adverse action.
       3. (C) Subsidized guardianship payments will be suspended pending the determination of all appeals.
       4. (D) Families receiving a favorable ruling in their hearing may be entitled to assistance (back payment) that had been suspended.

    2. (2)

       1. (A) The child would only be eligible for Title IV-E subsidized guardianship if all eligibility criteria had been met prior to the finalization of the guardianship (including executing a subsidized guardianship agreement).
       2. (B) Therefore, even if the Office of Hearings and Appeals orders the Division of Children and Family Services to provide subsidized guardianship payments and services for the child, the state shall not claim FFP under Title IV-E if a subsidized guardianship agreement was not in place prior to the guardianship.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "01/2020"