(Agency Note: Federal Regulatory Reference — 45 CFR 1355 and 1356)

1. A. Under the Social Security Act, Title IV, Part E, the federal government provides funds to states for maintaining certain children in out-of-home placement or in adoptive families.

2. B. Definitions.

   1. (1) In this regulation, the following terms have the meanings indicated.

   2. (2) Terms Defined.

      1. (a) “Aid to Families with Dependent Children (AFDC)” means the Income Maintenance program provided under Title IV-A of the Social Security Act, which requires that to be eligible for Title IV-E, the child must meet the AFDC criteria in the IV-A State Plan in effect July 16, 1996.

      2. (b) AFDC Standard of Need.

         1. (i) “AFDC standard of need” means the cost of a family's basic living needs that the State recognizes as essential for all families, and any special recurring or nonrecurring needs recognized by the State as essential for some persons.
         2. (ii) “AFDC standard of need” means the AFDC standard of need in effect on July 16, 1996, which is the standard used for Title IV-E eligibility.
      3. (c) “Constructive removal” means when the State agency has obtained legal responsibility for a child who is residing with a related or nonrelated interim caretaker and the child is allowed to remain with the interim caretaker, so that the child was not physically removed from the interim caretaker, but was constructively removed from the care and custody of the parent or other specified relative with whom they had physically resided within 6 months before court proceedings or execution of a voluntary placement agreement.

      4. (d) “Date child is considered to have entered foster care” means the earlier of:

         1. (i) A judicial finding of abuse or neglect; or
         2. (ii) 60 days from the date the child is removed from the home.
      5. (e) “Detention” means the temporary care of a child who, pending court disposition, requires secure custody for the protection of the child or the community, in physically restricting facilities.

      6. (f) “Deprivation” means a child is deprived of the care and support of one or both parents as a result of:

         1. (i) Death;
         2. (ii) Physical or mental incapacity;
         3. (iii) Continued involuntary absence (for example, due to incarceration);
         4. (iv) Voluntary absence (for example, due to divorce or separation) from the home where the child resides; or
         5. (v) Unemployment/underemployment of the primary wage earner.
      7. (g) “Federal financial participation (FFP)” means the matching rate paid by the federal government for specified program activities, as provided in 45 CFR §1356.60.
      8. (h) “Financial need” means a child's /family's income and resources in the removal home must be within the AFDC standard of need that was in effect on July 16, 1996.
      9. (i) “Initial court order” means the very first court order that authorizes the child's removal from the home and includes a judicial finding of contrary to the welfare of the child.
      10. (j) “Out-of-home placement” means placement of a child into foster care, kinship care, group care, or residential treatment care.
      11. (k) “Physical removal” means that the agency has physically removed the child from the home of a parent or other specified relative.
      12. (l) “Redetermination” is a case review completed every 12 months, at which time factors subject to change, are reconsidered and documented.
      13. (m) “Removal home” means the home of the parent or other specified relative from whom the child was legally removed.

      14. (n) Specified Relative.

          1. (i) “Specified relative” means any relation by blood, marriage or adoption who is within the fifth degree of kinship to the dependent child.
          2. (ii) “Specified relative” includes great-great-great grandparents and first cousins once removed (children of first cousins).
3. C. Federal financial participation under Title IV-E is available for the child who meets the criteria for both initial IV-E eligibility and IV-E reimbursability, as set forth in §§D—N of this regulation.
4. D. Initial IV-E eligibility shall be determined when the child enters care.
5. E. The local department shall make all payments to out-of-home placement providers from State funds until IV-E eligibility has been determined.

6. F. Initial Eligibility. A child is initially eligible for IV-E funding only if all of the following requirements are met:

   1. (1) The child meets the AFDC eligibility criteria in effect in the IV-A State Plan as of July 16, 1996, if:

      1. (a) The child was living in the home of a relative specified in §B(2)(n) of this regulation and one of the following is true:

         1. (i) The child would have received AFDC in that home in the month of the voluntary placement agreement or initiation of court proceedings, if an application had been made; or
         2. (ii) The child was not living with an AFDC specified relative, but did live with such a relative in the preceding 6 months, and met the deprivation and financial need requirements as described in §B(2)(f) and (h) of this regulation in the eligibility month; and
      2. (b) The child lived with a specified relative from whom custody was removed at some time within the 6-month period before the month of the voluntary placement agreement or initiation of court proceedings; and
      3. (c) The child would have been AFDC eligible in that month, if the child had still been living in the home; and

   2. (2) The child was the legal responsibility of a local department as a result of:

      1. (a) Physical or constructive removal from the home, with a judicial determination that:

         1. (i) Continuation of the child in the child's home would be contrary to the child's welfare;
         2. (ii) Reasonable but unsuccessful efforts were made before placement to prevent or eliminate the need to remove the child, or that reasonable efforts could not be made because of the emergent nature of the situation; and
         3. (iii) Reasonable efforts are now being made to reunify the child with the child's family; or
      2. (b) A valid time limited or children with disabilities voluntary out-of-home placement agreement which was not a voluntary relinquishment for adoption.
7. G. If the initial court order does not contain the required finding that continuation in the home is contrary to the child's welfare, the child is ineligible for Title IV-E for the duration of that out-of-home placement episode.

8. H. If the initial court order does not contain the required finding that reasonable efforts were made to prevent placement:

   1. (1) The child may still meet the legal status for initial eligibility if a judicial finding of reasonable efforts to prevent placement is made within 60 days of the date the child is removed from the home;
   2. (2) The child's IV-E eligibility will begin the first day of the month in which the judicial finding of reasonable efforts to prevent removal is made; and
   3. (3) If the determination concerning reasonable efforts to prevent removal is not made, the child is not eligible under IV-E for the duration of the stay in foster care.

9. I. A child who is initially eligible for IV-E funding shall continue to be eligible as long as the child remains in out-of-home placement. The child becomes ineligible:

   1. (1) At the end of the month in which the child becomes 18 years old, except that a child 18 to 21 years old who remains in out-of-home placement is eligible up to the 21st birthday so long as the child is:

      1. (a) Completing secondary education or a program leading to an equivalent credential;
      2. (b) Enrolled in an institution that provides post-secondary or vocational education;
      3. (c) Participating in a program or activity designed to promote or remove barriers to employment;
      4. (d) Employed for at least 80 hours per month; or
      5. (e) Incapable of doing any of the activities in §§I.(1)(a)—(d) of this regulation due to a medical condition, which incapability is supported by regularly updated information in the case plan of the child; or
   2. (2) When the child comes into care as the result of a time limited or children with disabilities voluntary placement agreement and the local department fails to acquire court-ordered custody with a judicial finding of best interests of the child to remain in placement within 180 calendar days of placement rendering the child ineligible on the 181st calendar day.
10. J. If the child’s parents have consented to termination of parental rights before placement or the court has terminated parental rights before placement, the child may never be determined to be eligible for Title IV-E Foster Care or subsidize adoption payments.

11. K. Reimbursability.

    1. (1) A child shall be eligible for IV-E in order for the child’s care to be reimbursabile.
    2. (2) A child may lose and regain reimbursability depending on changes in the circumstances of the placement.
    3. (3) The loss of reimbursability may not deprive a child of future reimbursability except in the circumstances described in §F of this regulation.

12. L. The child's care is reimbursable for any given month when all of the following conditions are met for that month:

    1. (1) There is a “reasonable efforts” finding specific to the child;
    2. (2) The child is in a IV-E reimbursable placement as defined in §N of this regulation; and
    3. (3) The local department has placement and care responsibility for the child.

13. M. Judicial Determination.

    1. (1) A judicial determination of reasonable efforts to finalize the permanency plan shall be obtained not later than 12 months from the date the child is considered to have entered foster care and at least once every 12 months thereafter while the child is in foster care.
    2. (2) If a judicial determination regarding reasonable efforts to finalize a permanency plan is not made within the prescribed time frame, the child becomes ineligible for Title IV-E payments at the end of the month in which the judicial determination was required to have been made and remains ineligible until such a determination is made.
    3. (3) The child becomes eligible for IV-E payments again the first day of the month the judicial determination regarding reasonable efforts to finalize a permanency plan is made.

14. N. Only the following are reimbursable placements:

    1. (1) A fully licensed or approved resource family home meeting the standards as prescribed in COMAR 07.02.25;
    2. (2) A private, nonmedical group home or residential child care facility licensed by the State;
    3. (3) A public nonmedical group home or child care facility which accommodates not more than 25 children; or
    4. (4) A supervised independent living setting in which the child who is 18 years old is living independently.
15. O. A Title IV-E redetermination shall be completed every 12 months.

Authority: Courts and Judicial Proceedings Article, §§3-801, 3-802, 3-815, 3-816.1, 3-817, 3-819.1, 3-819.2, 3-820, and 3-823;
Education Article, §§7-101(b) and 15-106.1; Family Law Article, §§5-501, 5-504, 5-524—5-534, 5-701, and 5-709;
Human Services Article, §9-101 et seq.; Annotated Code of Maryland
(Agency Note: Federal Regulatory Reference: 42 U.S.C. §§620 et seq., 670 et seq.; 45 CFR §205.10;
45 CFR §303.72; 45 CFR 1355—1357)

Effective date: February 1, 1973

Regulation .05, .06 amended effective January 8, 1975 (2:1 Md. R. 14)

Regulation .05D, .09 effective January 1, 1976 (3:13 Md. R. 718) as emergency; amended effective October 27, 1976 (3:22 Md. R. 1249)

Regulation .05F amended effective June 8, 1977 (4:12 Md. R. 946)

Regulation .07B amended effective January 5, 1977 (4:1 Md. R. 15)

Regulation .09 effective July 1, 1976 (3:18 Md. R. 980) as emergency; amended effective March 2, 1977 (4:25 Md. R. 372)

Regulation .09, schedules B-2 and B-3 amended effective May 11, 1977 (4:10 Md. R. 764)

Chapter revised effective February 10, 1978 (5:3 Md. R. 136) (Previous Regulations .01, .02, .03, .04, .05, .06, .07, .07D, and .08 renumbered as Regulations .04, .06, .07, .09, .10, .11, .13, .14, and .15 respectively. New Regulations .01, .02, .03, .05, .08, .12, .16, .17, and .18 adopted)

Regulation .01C adopted as an emergency provision effective October 1, 1982 (9:18 Md. R. 1795) adopted permanently effective December 20, 1982 (9:25 Md. R. 2477)

Regulations .01 and .02 amended effective July 4, 1983 (10:13 Md. R. 1179)

Regulation .07B amended as an emergency provision effective October 1, 1981 (8:21 Md. R. 1703); emergency status extended at 8:24 Md. R. 1934, 8:25 Md. R. 1992, 9:2 Md. R. 110, and 9:6 Md. R. 611; adopted permanently effective March 1, 1982 (9:4 Md. R. 328)

Regulation .08B amended effective July 1, 1985 (12:13 Md. R. 1278)

Regulation .09-1 adopted effective April 22, 1985 (12:8 Md. R. 800)

Regulation .10B amended effective May 19, 1978 (5:10 Md. R. 777); March 23, 1979 (6:6 Md. R. 510); January 2, 1983 (9:26 Md. R. 2571)

Regulation .10C amended effective March 23, 1979 (6:6 Md. R. 510); October 5, 1979 (6:20 Md. R. 1628)

Regulation .10G amended effective July 27, 1979 (6:15 Md. R. 1270)

Regulation .10A—D amended effective July 1, 1985 (12:13 Md. R. 1278)

Regulation .11C amended effective July 1, 1985 (12:13 Md. R. 1278)

Regulation .13F amended effective July 1, 1985 (12:13 Md. R. 1278)

Regulation .18-1 adopted effective October 6, 1986 (13:20 Md. R. 2208)

Regulation .19 amended effective November 18, 1977 (4:24 Md. R. 1805); May 19, 1978 (5:10 Md. R. 777); June 2, 1978 (5:11 Md. R. 883); August 25, 1978 (5:17 Md. R. 1326); March 23, 1979 (6:6 Md. R. 510); July 27, 1979 (6:15 Md. R. 1270); October 5, 1979 (6:20 Md. R. 1628); September 5, 1980 (7:18 Md. R. 1739); May 24, 1982 (9:10 Md. R. 1018); January 2, 1983 (9:26 Md. R. 2571); February 13, 1984 (11:3 Md. R. 198); July 1, 1985 (12:13 Md. R. 1278); January 13, 1986 (13:1 Md. R. 15); December 15, 1986 (13:25 Md. R. 2657); May 30, 1988 (15:11 Md. R. 1330); February 6, 1989 (16:2 Md. R. 158)

Regulations .01—.19 repealed and new Regulations .01—.34 adopted as an emergency provision effective February 1, 1989 (16:4 Md. R. 487); emergency status extended at 16:12 Md. R. 1331, 16:21 Md. R. 2254, and 17:8 Md. R. 967; emergency status expired June 30, 1990

Regulations .01—.19 repealed and new Regulations .01—.34 adopted as an emergency provision effective July 17, 1990 (17:16 Md. R. 1984); adopted permanently effective December 24, 1990 (17:25 Md. R. 2904)

Regulation .03B amended effective October 19, 1998 (25:21 Md. R. 1572)

Regulation .13A amended effective November 7, 1994 (21:22 Md. R. 1874)

Regulation .30-1 adopted effective October 19, 1998 (25:21 Md. R. 1572)

Regulation .32 amended effective August 24, 1998 (25:17 Md. R. 1359)

Regulation .34 amended effective February 3, 1992 (19:2 Md. R. 152)

Chapter revised effective February 7, 2000 (27:2 Md. R. 143)

Regulation .03B amended effective August 7, 2000 (27:15 Md. R. 1400)

Regulation .13A amended as an emergency provision effective April 1, 2000 (27:8 Md. R. 794); emergency status expired September 30, 2000

Regulation .13A amended effective August 7, 2000 (27:15 Md. R. 1400)

Regulation .21A amended effective August 7, 2000 (27:15 Md. R. 1400)

Regulation .21A amended as an emergency provision effective April 1, 2000 (27:8 Md. R. 794); emergency status expired September 30, 2000

Regulation .32A amended effective August 7, 2000 (27:15 Md. R. 1400)

Chapter revised effective November 30, 2009 (36:24 Md. R. 1856)

Regulation .02C amended effective February 6, 2012 (39:2 Md. R. 140)

Regulation .03B amended effective February 6, 2012 (39:2 Md. R. 140); May 12, 2014 (41:9 Md. R. 519); August 17, 2015 (42:16 Md. R. 1054); May 22, 2017 (44:10 Md. R. 470)

Regulation .04 amended effective August 17, 2015 (42:16 Md. R. 1054)

Regulation .04B amended effective February 6, 2012 (39:2 Md. R. 140)

Regulation .05C amended effective February 6, 2012 (39:2 Md. R. 140); August 17, 2015 (42:16 Md. R. 1054); May 22, 2017 (44:10 Md. R. 470)

Regulation .06 amended effective May 12, 2014 (41:9 Md. R. 519)

Regulation .06B amended effective February 6, 2012 (39:2 Md. R. 140)

Regulation .07F adopted effective February 6, 2012 (39:2 Md. R. 140)

Regulation .08I, Z amended effective February 6, 2012 (39:2 Md. R. 140)

Regulation .08K, P amended effective November 15, 2021 (48:23 Md. R. 979)

Regulation .11H amended effective February 6, 2012 (39:2 Md. R. 140)

Regulation .12 amended effective August 19, 2013 (40:16 Md. R. 1341); September 7, 2020 (47:18 Md. R. 824)

Regulation .12B amended effective August 17, 2015 (42:16 Md. R. 1054)

Regulation .12J, K amended effective February 6, 2012 (39:2 Md. R. 140)

Regulation .12K amended effective November 11, 2013 (40:22 Md. R. 1876)

Regulation .13 amended effective February 6, 2012 (39:2 Md. R. 140)

Regulation .15 amended effective February 6, 2012 (39:2 Md. R. 140)

Regulation .16 amended effective February 6, 2012 (39:2 Md. R. 140)

Regulation .16A, B amended effective May 22, 2017 (44:10 Md. R. 470)

Regulation .16-1 adopted effective February 6, 2012 (39:2 Md. R. 140)

Regulation .17 amended effective February 6, 2012 (39:2 Md. R. 140)

Regulation .21 amended effective May 12, 2014 (41:9 Md. R. 519)

Regulation .25G amended effective February 6, 2012 (39:2 Md. R. 140)

Regulation .29M amended effective February 6, 2012 (39:2 Md. R. 140)

Regulation .30 amended effective February 6, 2012 (39:2 Md. R. 140)

Regulation .39A amended effective February 6, 2012 (39:2 Md. R. 140)