Chapter 14: Funding

14.1   Federal, State, and County Sources of Funding       14-2

14.2   Monies Ordered and Collected       14-9

14.3   Orders for Reimbursement of Attorney and Lawyer-Guardian
ad Litem Fees       14-10

14.4   Guardianship Assistance       14-10

14.5   Redirecting or Issuing Child Support Payment to Juvenile
Guardian       14-26

In this chapter. . .

This chapter contains an overview of sources used to pay the costs associated with child protective proceedings. The chapter discusses government sources used to pay the costs of care and service provided to a child and family, and federal reimbursement of foster care costs under Title IV-E of the Social Security Act. The chapter also discusses parental reimbursement of the costs of care, and attorney and lawyer-guardian ad litem fees.

The chapter contains an overview of guardianship assistance and a juvenile guardian’s receipt of child support payments.

“Despite the public health crisis that exists, it is critical that child welfare agencies and courts work together to ensure that the requisite judicial proceedings continue during this time of uncertainty.” See Department of Health & Human Services, Children’s Bureau Letter to Child Welfare and Judicial Leaders, which details the judicial determinations and proceedings that must be held in order to satisfy Title IV-E requirements as well as suggestions for ensuring courts continue “to practice in a manner consistent with constitutional principles and to serve the best interest of children[.]”¹ 

14.1​Federal, State, and County Sources of Funding²

Unless otherwise provided, expenses incurred in cases under the Juvenile Code must be paid “upon the court’s order by the county treasurer from the county’s general fund.” MCL 712A.25(1). See e.g., MCL 400.117c(1)-(3), which either allows or requires the county to use its Child Care Fund to pay for placement costs (depending on type of placement and other factors), and provides for reimbursement by the Department of Health and Human Services (DHHS) for a portion of such expenses.

MCR 3.926(C)(1) provides that when a disposition is ordered by a court other than the court in the county where the child resides, the court ordering disposition is responsible for any costs incurred in connection with the order unless the court in the county where the child resides agrees to pay such dispositional costs.

A.​Generally

1.​Funding

“Payments for out-of-home placement (hereafter called foster care payments) are made from legally defined fund sources for which specific eligibility must be determined. Funding comes from federal, state and county monies.” DHHS’s Children’s Foster Care Manual (FOM), Fund Sources FOM 901-8, p 1.³

Specific funding sources available:

•​Title IV-E Funding: This fund source is “established by title IV-E of the Social Security Act to provide federal financial participation in the administrative costs and foster care maintenance payments for [children.]” Fund Sources FOM 901-8, supra at 2.⁴

•​County Child Care Funding (CCF): “[This fund] is a state legislative appropriation to partially reimburse counties for the costs of foster care and other services provided for court wards.” Fund Sources FOM 901-8, supra at 2.

•​State Ward Board and Care Funding (SWBC): “[This fund] is the state legislative appropriation to provide payment of foster care costs for state wards who are not eligible for title IV-E or the placement is not title IV-E reimbursable[.]” Fund Sources FOM 901-8, supra at 3.

•​Limited Term/Emergency/General Funds: “Limited term/emergency/general funds is a limited funding source to assist MDHHS staff in providing foster care payment and service under . . . specific circumstances[.]”⁵ Fund Sources FOM 901-8, supra at 3.

“The fund source and payment procedures to be utilized in paying for the out-of-home care of [children] are determined by a combination of factors including legal status, living arrangement and federal regulations.” DHHS’s Children’s Foster Care Manual (FOM), Payment Source Guide FOM 901-9, p 1.⁶ For additional information on the payment systems used to execute foster care payments and a chart detailing which fund sources may be available, see the DHHS’s Children’s Foster Care Manual (FOM), Payment Source Guide FOM 901-9.

The DHHS must distribute money appropriated by the Legislature to counties for the cost of juvenile justice services⁷ as provided in MCL 400.117a(4)(a)-(j). MCL 400.117a(4). Payment for expenditures for children placed with the DHHS for care, supervision, or placement (including children who are within the court’s jurisdiction under MCL 712A.2(b)) must be paid by the DHHS and reimbursed by the county for all undisputed charges. MCL 400.117a(4)(a).⁸ Payment for expenditures⁹ for children not placed with the DHHS for care, supervision, or placement (including children who are within the court’s jurisdiction under MCL 712A.2(b)) must be paid by a county and be reimbursed by the DHHS for all undisputed charges. MCL 400.117a(4)(b).

Distributions under MCL 400.117a(4) may be allowed unless otherwise accessible and available by other public assistance programs necessary to achieve the goals and outcomes for in-home care¹⁰ or out-of-home care,¹¹ and reimbursement must not be made “for costs associated with an otherwise eligible child or family, or both, if the reason for the unavailability of public assistance is due to intentional program violations and disqualification of any public assistance.” MCL 400.117a(5).

2.​Assignment of Support to DHHS

If the DHHS is making state or federally funded foster care maintenance payments for a child that is either under the supervision of the DHHS or has been committed to the DHHS, all rights to current, past due, and future child support are assigned to the DHHS while the child is receiving or benefiting from those payments. MCL 400.115b(5). “When the [DHHS] ceases making foster care maintenance payments for the child, both of the following apply:

(a) Past due support that accrued under the assignment remains assigned to the [DHHS].

(b) The assignment of current and future support rights to the [DHHS] ceases.” MCL 400.115b(5).

“The maximum amount of support the [DHHS] may retain to reimburse the state, the federal government, or both for the cost of care shall not exceed the amount of foster care maintenance payments made from state or federal money, or both.” MCL 400.115b(6).

B.​Federal Foster Care Maintenance Payments Under Title IV-E Funding¹² 

Title IV-E funding is a funding source “established by title IV-E of the Social Security Act[, 42 USC 670 et seq.,] to provide federal financial participation in the administrative costs and foster care maintenance payments for [children.]” DHHS’s Children’s Foster Care Manual (FOM), Fund Sources FOM 901-8, p 2.¹³ 45 CFR 1355.20(a) defines foster care maintenance payments as “payments made on behalf of a child eligible for title IV-E foster care to cover the cost of (and the cost of providing) food, clothing, shelter, daily supervision, school supplies, a child’s personal incidentals, liability insurance with respect to a child, and reasonable travel for a child’s visitation with family, or other caretakers. Local travel associated with providing the items listed above is also an allowable expense. In the case of child care institutions, such term must include the reasonable costs of administration and operation of such institutions as are necessarily required to provide the items described in the preceding sentences. ‘Daily supervision’ for which foster care maintenance payments may be made includes:

(1) Foster family care - licensed child care, when work responsibilities preclude foster parents from being at home when the child for whom they have care and responsibility in foster care is not in school, licensed child care when the foster parent is required to participate, without the child, in activities associated with parenting a child in foster care that are beyond the scope of ordinary parental duties, such as attendance at administrative or judicial reviews, case conferences, or foster parent training. Payments to cover these costs may be: included in the basic foster care maintenance payment; a separate payment to the foster parent, or a separate payment to the child care provider; and

(2) Child care institutions - routine day-to-day direction and arrangements to ensure the well-being and safety of the child.”

“Title IV-E . . . requires all applicable federal regulations be followed for use of the fund.” DHHS’s Children’s Foster Care Manual (FOM), Funding Determinations and Title IV-E Eligibility FOM 902, p 1.¹⁴ “To be eligible for payment under title IV-E, children must, by Family Court or Tribal Court order, be under MDHHS supervision for placement and care or committed to MDHHS.” Id. at p 3. For more information on funding determinations and Title IV-E Eligibility, see the DHHS’s Children’s Foster Care Manual (FOM), Funding Determinations and Title IV-E Eligibility FOM 902.¹⁵

Note: The Child Welfare Funding Specialist (CWFS) must determine “the appropriate fund source for out-of-home placements at the time the [child] is referred for care and supervision by MDHHS regardless of actual placement[.]”¹⁶ Funding Determinations and Title IV-E Eligibility FOM 902, supra at p 1.

Family First Prevention Services Act (FFPSA). The FFPSA reforms the federal child welfare financing streams, Title IV-E and Title IV-B of the Social Security Act, to expand funding and eligibility of federal child welfare programs. United States DHHS’s Children’s Bureau, Information Memorandum-18-02.¹⁷ While the FFPSA was signed into law on February 9, 2018, Michigan requested and received approval for a two- year delay in meeting the FFPSA’s requirements. As a result of the 2-year waiver, Michigan has until September 29, 2021, to comply with the FFPSA’s requirements. See Pub L 115-123, div E, title VII, §50734(b)(1), §50746; United States DHHS’s Children’s Bureau, Information Memorandum-18-02.

C.​County Child Care Fund (CCF)

“The county [C]hild [C]are [F]und [(CCF)] is a county-state fiscal program whereby the State of Michigan reimburses counties which provide care and service for children and their families.” DHHS’s Children’s Foster Care Manual (FOM), Fund Sources FOM 901-8,¹⁸ p 2.

A county CCF consists of funds appropriated by a county for foster care. MCL 400.117c(1)-(2). The CCF must be used to pay the costs of providing foster care¹⁹ for children “under the jurisdiction of the family division of circuit court or court of general criminal jurisdiction.” MCL 400.117c(2). The CCF may be used for paying the county’s share of the cost of placement in the Michigan Children’s Institute (MCI). MCL 400.117c(3).

Except as provided in MCL 400.117a(4)(j), the DHHS must reimburse 50 percent of a county’s eligible annual expenditures “for residential services of detention and long-term residential placements” from a county’s CCF. MCL 400.117a(4)(c). Except as provided in MCL 400.117a(4)(j), the amount the county distributes shall equal 75 percent of the annual expenditures “for in-home expenses including community-based supervision, services, and related practices, and per diem rates for the use of respite care and shelter for less than 30 days.” Id. The reimbursement of annual expenses does not include reimbursement for a county’s capital expenditures. Ottawa Co v Family Independence Agency, 265 Mich App 496, 502-504 (2005). In Ottawa Co, eleven Michigan counties filed suit seeking reimbursement from the DHHS for 50 percent of the costs they incurred for capital expenditures that included building, equipping, and improving juvenile detention facilities. Id. at 498. The Court of Appeals concluded that reimbursement of a county’s expenditure is conditional. Id. at 500. The DHHS “is obligated to establish standards for reimbursing the funds and may withhold reimbursement if certain expenditures violate its rules.” Id. at 501. The Court further noted that MCL 400.117a(13)²⁰ and relevant administrative rules and policies limit the DHHS’s ability to reimburse a county by requiring reimbursements be “‘based on care given to a specific, individual child.’” Ottawa Co, 265 Mich App at 501-503, quoting MCL 400.117a(12). Thus, the counties were held financially “responsible for absorbing the large capital costs of building and equipping the facilities[.]” Ottawa Co, 265 Mich App at 503. The Court of Appeals also concluded that the DHHS’s failure to reimburse the counties for their capital expenditures did not violate the Headlee Amendment, Const 1963, art 9, § 29. Ottawa Co, 265 Mich App at 503.

“Notwithstanding the provisions in [MCL 400.117a(4)(c)^[21]] and subject to appropriations, the department shall implement a prospective payment system as part of a state-administered performance-based child welfare system in a county with a population of not less than 575,000 or more than 750,000, for foster care case management in accordance with section 503 of article X of 2014 PA 252. The county is only required to contribute to foster care services payments in an amount that does not exceed the average of the annual net contribution made by the county for cases received under [MCL 712A.2(b)], in the 5 previous fiscal years before October 1, 2015. The prospective payment system as part of the state-administered performance-based child welfare system shall be implemented as described in this subdivision but shall not include in-home care service funding.”²² MCL 400.117a(4)(h). See also MCL 803.305(4), which contains substantially similar provisions under the Youth Rehabilitation Services Act.

If a child is committed to the MCI, the DHHS pays the entire cost of a child’s care and supervision, but the county is charged back 50 percent of that cost. See MCL 400.207(1); MCL 803.305(1). The DHHS may, subject to a county’s approval, offset the amount due by the DHHS to the county’s CCF. MCL 400.117a(4)(c).²³

D.​State Ward Board and Care Funds (SWBC)

The State Ward Board and Care Funds (SWBC) are available to support children in out-of-home placements when all of the following criteria are met:

•​The child is a state ward committed to the DHHS.

•​The child is in a DHHS supervised and approved out-of-home placement.

•​The child or the placement is ineligible for Title IV-E funding.

•​The child has not reached 19 years of age. DHHS’s Children’s Foster Care Manual (FOM), Fund Sources FOM 901-8, p 3.

“[SWBC] funds may be used to reimburse the foster family, placement agency foster care (PAFC) provider or residential facility for care provided, for certain intermittent or case service payments, and for independent living payments to the [child]” provided that specific criteria are met. Funding Sources FOM 901-8, supra.

E.​Limited Term, Emergency, and General Foster Care Funding

“Limited term/emergency/general funds is a limited funding source to assist MDHHS staff in providing foster care payment and service under the following specific circumstances:

1. The child is a court ward . . . and title IV-E eligible except for the receipt of [Social Security Income (SSI)]

2. Former MCI wards between age 19 and 20 who are in foster care or independent living.

* * *

3. Emergency foster care for children in families receiving [Family Independence Program (FIP) assistance] and the caretaker is hospitalized or incarcerated and no other plan can be made through the FIP program. . . .

* * *

4. Children may be placed in foster care prior to release to MDHHS under the Michigan Adoption Code.” DHHS’s Children’s Foster Care Manual (FOM), Fund Sources FOM 901-8,²⁴ pp 3-4.

14.2​Monies Ordered and Collected

“The court shall not order a juvenile or a juvenile’s parent, guardian, or legal custodian to pay for the costs of care, services, court-appointed attorney representation, or other costs or assessments related to the juvenile’s court proceeding.” MCL 712A.18(3).

“An order directed to a parent or a person other than the juvenile is not effective and binding on the parent or other person unless opportunity for hearing is given by issuance of summons or notice as provided in [MCL 712A.12 and MCL 712A.13] and until a copy of the order, bearing the seal of the court, is served on the parent or other person as provided in [MCL 712A.13].” MCL 712A.18(4).

“Money collected for juveniles placed by the court with or committed to the [DHHS] or a county juvenile agency must be accounted for and reported on an individual juvenile basis.” MCL 712A.18(2).

14.3​Orders for Reimbursement of Attorney and Lawyer-Guardian ad Litem Fees

“In a child protective proceeding, when an attorney is appointed for a party under [MCR 3.915], the court may enter an order assessing costs of the representation against the party or against a person responsible for the support of that party after a determination of ability to pay, which may be enforced as provided by law. MCR 3.915(E). See also MCL 712A.17c(8) (requiring the order to be made after the court determines the party’s ability to pay).

“In a child protective proceeding, the court may assess the cost of providing a guardian ad litem against the party or a person responsible for the support of the party after a determination of ability to pay, and may enforce the order of reimbursement as provided by law.” MCR 3.916(D).“An order assessing attorney costs may be enforced through contempt proceedings.” MCL 712A.17c(8).

The trial court committed “a legal error [that] was outside the range of reasonable and principled outcomes” when it ordered petitioners, who were the child’s legal guardians, to reimburse the court for the lawyer-guardian ad litem fees and respondent-mother’s court-appointed attorney fees. In re Alexander, ___ Mich App ___, ___ (2026). “There is nothing in the law requiring or supporting assessing costs against the party petitioning the court. Rather, MCL 712A.17c(8), MCR 3.915(E), and MCR 3.916(D) require the trial court to . . . determine a party’s ability to pay for an attorney, appoint an attorney, and then assess costs against that same party or someone responsible for supporting the party. Petitioners [were] not responsible for respondent-mother.” Alexander, ___ Mich App at ___.

See SCAO guidelines for court-ordered reimbursement.

14.4​Guardianship Assistance

If the court appoints a guardian for a child under MCL 712A.19a(9)(c) or MCL 712A.19c(2), the Department of Health and Human Services (DHHS) is permitted to provide assistance payments to guardians of eligible children under the Guardianship Assistance Act, MCL 722.871 et seq. Guardianship assistance may make possible guardianships of children for whom “[r]eunification and placing the child for adoption are not appropriate permanency options.” See MCL 722.873(1)(c).

“[T]he [DHHS] may pay guardianship assistance to an eligible guardian on behalf of an eligible child.” MCL 722.875(1). The prospective guardian²⁵ must apply to the DHHS for the guardianship assistance. MCL 722.875(2). The DHHS must determine eligibility within 30 days after receiving a complete application for guardianship assistance. MCL 722.875(8).

Note: ”If guardianship assistance is requested, the determination of eligibility and a guardianship assistance agreement must be completed and signed by all parties before the court enters the order appointing the guardian(s)[.]” DHHS’s Child Guardianship Manual (GDM), Juvenile Guardianship GDM 600, p 13.

The guardian or successor guardian must also apply for and maintain medical insurance for the child. MCL 722.877.

A.​Eligibility for Guardianship Assistance

The DHHS may pay guardianship assistance to an eligible guardian on behalf of an eligible child. MCL 722.875(1).

In order for a guardian to be eligible for guardianship assistance, he or she must meet the following conditions:

“(a)    The guardian is the eligible child’s relative^[26] or legal custodian.^[27]

(b)    The guardian is a licensed foster parent and approved for guardianship assistance by the [DHHS]. The approval process must include criminal record checks and child abuse and neglect central registry checks on the guardian and all adults living in the guardian’s home as well as fingerprint-based criminal record checks on the guardian. If the guardian’s fingerprints are stored in the automated fingerprint identification system under . . . MCL 722.115k, the [DHHS] shall use those fingerprints for the criminal record check required in this subdivision.

(c) The eligible child has resided with the prospective guardian in the prospective guardian’s residence for a minimum of 6 months before the application for guardianship assistance is received by the [DHHS].” MCL 722.874(1).

A child is eligible for guardianship assistance if the DHHS determines that all of the following provisions are satisfied:

“(a) The child has been removed from his or her home as a result of a judicial determination by a state court or tribal court within this state that allowing the child to remain in the home would be contrary to the child’s welfare.

(b) The child has resided in the home of the prospective guardian for, at a minimum, 6 consecutive months.

(c) Reunification and placing the child for adoption are not appropriate permanency options.

(d) The child demonstrates a strong attachment to the prospective guardian and the guardian has a strong commitment to caring permanently for the child until the child reaches 18 years of age.

(e) If the child has reached 14 years of age, he or she has been consulted regarding the guardianship arrangement.

(f) Certification has been made before the child’s eighteenth birthday.

(g) The guardianship assistance agreement has been signed by the prospective guardian and the [DHHS] before the guardianship is finalized by the court and before the child’s eighteenth birthday.” MCL 722.873.

“A determination by the [DHHS] on the eligibility of guardianship assistance does not affect a judicial finding that a guardianship should be ordered for the child.” MCL 722.873(2).

For additional information on juvenile guardianship assistance eligibility, see the DHHS’s Child Guardianship Manual (GDM), Juvenile Guardianship Assistance Eligibility GDM 715.

B.​Successor Guardian

“Subject to the provisions of [the Guardianship Assistance] Act, the [DHHS] may pay guardianship assistance to an eligible successor guardian^[28] on behalf of an eligible child.”²⁹ MCL 722.875c(1). The successor guardian must apply to the DHHS for the guardianship assistance. MCL 722.875c(2).

Note: “Payment of guardian assistance shall not be made to a successor guardian until the court appoints a successor guardian. If the successor guardian began caring for the child before the court appoints the successor guardian, guardianship assistance payments can be made retroactively to either the date of death of the relative guardian, the date of incapacity of the relative guardian, or the date the successor guardian assumed care of the child, whichever is later.” MCL 722.875c(4).

In order for a successor guardian to be eligible for guardianship assistance, the DHHS must determine that all of the following conditions have been met:

“(a) A guardianship assistance agreement for the child was in effect before the appointment of the successor guardian.^[30]

(b) The successor guardian was appointed by the court as a result of the death or incapacitation of the preceding guardian.

(c) The preceding guardian had an active guardianship assistance agreement for the child before his or her death or incapacitation.

(d) The successor guardian meets all of the conditions set forth in this act.”³¹ MCL 722.875c(5).

C.​Guardianship Assistance Agreement

If the DHHS finds that a child and a guardian are eligible for guardianship assistance, the DHHS must negotiate and enter into a written and binding guardianship assistance agreement with the child’s prospective guardian.³² MCL 722.875(3). A guardianship assistance agreement is “a negotiated binding agreement regarding financial support as described in [MCL 722.875] for children who meet the qualifications for guardianship assistance as specified in this act or in the [DHHS’s] administrative rules.” MCL 722.872(g). “[A] guardianship assistance agreement must remain in effect without regard to the state residency of the guardian.” MCL 722.875(5).

Note: The guardianship assistance agreement “may be transferred to a successor guardian who has been appointed by the court. This occurs when the successor guardian enters into a written, binding guardianship assistance agreement with the [DHHS].” MCL 722.875c(3).

“The guardianship assistance agreement must specify all of the following:

(a) The additional services and assistance the child and the guardian are eligible for under the guardianship assistance agreement.

(b) The procedure by which the guardian may apply for additional services, if needed.

(c) That the [DHHS] will pay the total cost of nonrecurring expenses associated with obtaining legal guardianship of an eligible child, to the extent the total cost does not exceed $2,000.00.” MCL 722.875(4).

A guardian’s eligibility for guardianship assistance must be determined “without regard to the income of the prospective guardian.” MCL 722.875(6).³³

For additional information on juvenile guardianship assistance agreements, see the DHHS’s Child Guardianship Manual (GDM), Juvenile Guardianship Assistance Agreements/Guardian Responsibilities GDM 740.

D.​Annual Review

The DHHS must annually review the guardian’s and child’s eligibility to determine whether the guardianship assistance should continue. MCL 722.875(7).

MCL 722.875(7) requires the guardian to provide all eligibility information requested by the DHHS for purposes of the annual review.

Note: It is the DHHS’s responsibility to collect, assemble, and report all data and information required for reporting purposes. MCL 722.878(1). The guardian or successor guardian must provide all the information within his or her possession that the DHHS requests for reporting purposes. MCL 722.878(2).

E.​Case Service Plan

If a child’s permanency plan includes placement with a guardian and the receipt of guardianship assistance, the DHHS, child-placing agency, or tribal child welfare agency must include all of the following in the child’s case service plan:

“(a) The steps that the [DHHS], child placing agency, or tribal child welfare agency has taken to determine that reunification and placing the child for adoption have been determined not to be in the child’s best interest and ruled out as appropriate permanency options.

(b) The reason for any separation of siblings during placement.

(c) The reason a permanent placement through guardianship until the child reaches 18 years of age is in the child’s best interest.

(d) The reason why reunification and adoption have or have not been ruled out.

(e) The efforts the [DHHS], child placing agency, or tribal child welfare agency has made to discuss adoption by the prospective guardian as a permanent alternative to legal guardianship and documentation of the reason the prospective guardian has chosen not to pursue adoption.

(f) In cases where the parental rights have not been terminated, the efforts the [DHHS], the child placing agency, or the tribal child welfare agency has made to discuss with the child’s birth parent or parents the guardianship assistance arrangement, or the reasons why the efforts were not made.” MCL 722.875a.

F.​Duration of Guardianship Assistance

Except as otherwise provided in MCL 722.876(2), the DHHSmay not provide guardianship assistance after any one of the following occurs:

“(a) The child reaches 18 years of age.

(b) The [DHHS] determines that the guardian is no longer legally responsible for support of the child.

(c) The [DHHS] determines that the child is no longer receiving any support from the relative guardian.

(d) The death of the child.

(e) The child is adopted by the guardian or another individual under the Michigan [A]doption [C]ode, . . . MCL 710.21 to [MCL] 710.70, or the adoption laws of any other state or tribal government.

(f) The guardianship is terminated by order of the court having jurisdiction in the guardianship proceeding.

(g) The death of the guardian unless a successor guardian has been appointed by the court.” MCL 722.876(1).

MCL 722.876(2) permits the DHHS to provide “extended guardianship assistance until the youth reaches 21 years of age if the youth meets the requirements set forth in the [Y]oung [A]dult [V]oluntary [F]oster [C]are [A]ct, . . . .

If the DHHS terminates guardianship assistance, the DHHS must mail notice of the termination to the guardian’s current or last known address and to the court with jurisdiction over the guardianship. MCL 722.876(3). In its notice of termination the DHHS must inform the guardian and the court of its reason for terminating the guardianship assistance. Id.

“The guardianship assistance agreement must remain in effect without regard to the state residency of the guardian.” MCL 722.875(5).

G.​Appealing the Department’s Guardianship Assistance Determination

“An applicant for guardianship assistance under [the Guardianship Assistance Act] or a guardian, successor guardian, or child who has received guardianship assistance under a guardianship assistance agreement may appeal a decision of the [DHHS] denying the application, establishing or modifying the guardianship assistance, or terminating guardianship assistance according to the administrative procedures act of 1969, . . . MCL 24.201 to 24.328.” MCL 722.879.

1.​Petition for Review

A petition requesting review of the DHHS’s determination must be within 60 days after the date of mailing notice of the department’s final determination. MCL 24.304(1). Filing a petition for review does not automatically stay enforcement of the department’s determination, but the department “may grant, or the court may order, a stay upon appropriate terms.” Id.

“[A] petition for review shall be filed in the circuit court for the county where petitioner resides or has his or her principal place of business in this state, or in the circuit court for Ingham county.” MCL 24.303(3).

“A petition for review shall contain a concise statement of:

(a) The nature of the proceedings as to which review is sought.

(b) The facts on which venue is based.

(c) The grounds on which relief is sought.

(d) The relief sought.” MCL 24.303(3).

A copy of the department’s determination must be attached as an exhibit to the petition. MCL 24.303(4).

2.​Department’s Responsibilities on Appeal

“Within 60 days after service of the petition, or within such further time as the court allows, the [DHHS] shall transmit to the court the original or certified copy of the entire record of the proceedings, unless parties to the proceedings for judicial review stipulate that the record be shortened. A party unreasonably refusing to so stipulate may be taxed by the court for the additional costs. The court may permit subsequent corrections to the record.” MCL 24.304(2) MCL 24.304(2).

3.​Application Requesting Leave to Present Additional Evidence

“If timely application is made to the court for leave to present additional evidence, and it is shown to the satisfaction of the court that an inadequate record was made at the hearing before the [DHHS] or that the additional evidence is material, and that there were good reasons for failing to record or present it in the proceeding before the [DHHS], the court shall order the taking of additional evidence before the [DHHS] on such conditions as the court deems proper. The [DHHS] may modify its findings, decision or order because of the additional evidence and shall file with the court the additional evidence and any new findings, decision or order, which shall become part of the record.” MCL 24.305.

4.​Court Determination

In reviewing an appeal, the court must do so without a jury and limit its review to what is provided in the record. MCL 24.304(3). However, the court may take evidence not shown on the record if the appeal involves an alleged irregularity in the department’s procedures. Id. On a party’s request, the court must also hear oral arguments and receive written briefs. Id.

The court must decide whether the department’s determination was supported by “competent, material[,] and substantial evidence on the whole record.” Russo v Michigan Dep’t of Licensing & Regulation, 119 Mich App 624, 630-631 (1982). In Russo, the Court defined substantial evidence as: “The ‘substantial evidence test’ has been defined as evidence which a reasoning mind would accept as sufficient to support a conclusion. While it consists of more than a mere scintilla of evidence it may be substantially less than a preponderance of the evidence.” Id. at 631 (internal citations omitted).

After the court’s review, the court may do any of the following:

(1) Remand for further proceedings.

(2) Remand for the taking of additional evidence.

(3) Affirm the DHHS’s determination (in whole or in part).

(4) Reverse the DHHS’s determination (in whole or in part).

(5) Modify the DHHS’s determination. MCL 24.306(2).

“Except when a statute or the constitution provides for a different scope of review, the court shall hold unlawful and set aside a decision or order of [the DHHS’s] if substantial rights of the petitioner have been prejudiced because the decision or order is any of the following:

(a) In violation of the constitution or a statute.

(b) In excess of the statutory authority or jurisdiction of the [DHHS].

(c) Made upon unlawful procedure resulting in material prejudice to a party.

(d) Not supported by competent, material and substantial evidence on the whole record.

(e) Arbitrary, capricious or clearly an abuse or unwarranted exercise of discretion.

(f) Affected by other substantial and material error of law. MCL 24.306(1).

H.​Court’s Role

The court is authorized to appoint a guardian or juvenile guardian at a permanency planning hearing (rather than terminating parental rights or returning the child home) or after parental rights to the child have been terminated.³⁴ See MCL 712A.19a; MCL 712A.19c. The DHHS, not the court, determines whether a guardian will receive guardianship assistance. See the Guardianship Assistance Act,

“The legal guardianship must be a judicially created relationship as provided for under . . . MCL 712A.19a and [MCL] 712A.19c, another state’s law or code, or tribal law or code when the child is a ward of this state, between the child and the child’s guardian that is intended to be permanent and self-sustaining as evidenced by the transfer to the guardian of the following parental rights with respect to the child:

(a) Protection.

(b) Education.

(c) Care and control of the individual.

(d) Custody of the individual.

(e) Decision making.” MCL 722.875b.

Appointment of a guardian shifts the legal responsibility for the child to the guardian. MCL 712A.19c(7), (9). A guardian appointed under MCL 712A.19c has all the powers and duties described in MCL 700.5215. MCL 712A.19c(7).

Note: “If guardianship assistance is requested, the determination of eligibility for guardianship assistance and a signed guardianship assistance agreement must be completed before the court enters the order appointing the guardian.” DHHS’s Child Guardianship Manual (GDM), Juvenile Guardianship GDM 600, p 13.

The court’s jurisdiction over the child terminates after a guardian is appointed and a review hearing is held under MCL 712A.19. MCL 712A.19c(9). However, the court’s jurisdiction over the guardianship continues until released by court order. MCL 712A.19c(10);MCR 3.979(C)(1)(a). “Unless terminated by court order, the court’s jurisdiction over a juvenile guardianship ordered under MCL 712A.19a or MCL 712A.19c for a youth 16 years of age or older shall continue until 120 days after the youth’s eighteenth birthday.” MCR 3.979(C)(1)(b). If the DHHS provides the court with notice that it is extending guardianship assistance to a youth beyond the age of 18 under MCL 400.665 (Young Adult Voluntary Foster Care Act), the court must “retain jurisdiction over the guardianship until that youth no longer receives extended guardianship assistance.”³⁵ MCR 3.979(C)(1)(b). “Upon receipt of notice from the [DHHS] that it will not continue extended guardianship assistance, the court shall immediately terminate the juvenile guardianship.” MCR 3.979(D)(1)(c).

The court must “conduct an annual review of a juvenile guardianship as to the condition of the child until the child’s eighteenth birthday.” MCR 3.979(D)(1)(a). See also MCL 712A.19c(10). The court may conduct additional reviews as it deems necessary, or it may order the DHHS or a court employee to conduct an investigation and file a written report. MCL 712A.19c(10); MCR 3.979(D)(1)-(2). “If, under [MCR 3.979(C)(1)(b) (retention of court jurisdiction for extended juvenile guardianship assistance)], the [DHHS] has notified the court that extended guardianship assistance has been provided to a youth pursuant to MCL 400.665, the court shall conduct an annual review hearing . . . [until] the youth is no longer eligible for extended guardianship assistance.” MCR 3.979(D)(1)(b).³⁶

I.​Young Adult Guardianship Extension (YAGE)

MCL 722.876(2) permits the DHHS to provide “extended guardianship assistance until the youth reaches 21 years of age if the youth meets the requirements set forth in the [Y]oung [A]dult [V]oluntary [F]oster [C]are [A]ct[ (YAVFCA)], . . . MCL 400.641 to [MCL] 400.671.”

Under the YAVFCA, the DHHS may provide extended guardianship assistance to a youth between the ages of 18-20 if the youth began receiving guardianship assistance at 16 years of age or older and the youth meets one of the eligibility conditions set out in MCL 400.667.³⁷ MCL 400.665; MCL 400.667. Under MCL 400.667, the youth must meet one of the following eligibility conditions:

“(a) The youth is completing secondary education or a program leading to an equivalent credential.

(b) The youth is enrolled in an institution that provides postsecondary or vocational education.

(c) The youth is participating in a program or activity designed to promote employment or remove barriers to employment.

(d) The youth is employed for at least 80 hours per month.

(e) The youth is incapable of doing any part of the activities in subdivisions (a) to (d) due to a medical condition. This assertion of incapacity must be supported by regularly updated information.” MCL 400.667.

For additional information on extending guardianship assistance, see the DHHS’s Child Guardianship Manual (GDM), Extensions for Youth Entering Guardianship at Ages 16-17 GDM 716.

1.​Notice

The DHHS “will mail an application^[38] and notice of eligibility or [the Young Adult Guardianship Extension (YAGE) program] to the guardian no later than 90 days before the youth’s 18th birthday.” SCAO Administrative Memorandum 2012‐04, p 5. The DHHS will also send a notice to the court with jurisdiction over the juvenile guardianship to “inform the court that the youth may be eligible for an extension, and [to] request[] [that] the court [] keep the guardianship case open for 120 calendar days following the youth’s 18th birthday to allow time to complete the application and eligibility determination process.” SCAO Administrative Memorandum 2012‐04, supra at p 5.

2.​Approval

“[The DHHS] determines the youth’s initial and subsequent eligibility for extended guardianship assistance.” SCAO Administrative Memorandum 2012‐04, supra at p 4. If the DHHS approves the extension, it will mail a voluntary agreement³⁹ to the guardian for the guardian and youth to sign. DHHS’s Child Guardianship Manual (GDM), Extensions for Youth Entering Guardianship at Ages 16-17 GDM 716.

Note: “Both the youth and the guardian must sign [the] voluntary agreement with [the DHHS] under which the youth and guardian pledge compliance with [MCL 400.667].” SCAO Administrative Memorandum 2012-04, supra at p 4.

“If [the DHHS] approves the application [and upon receipt of the signed voluntary agreement], it will send a copy of the signed voluntary agreement to the court, requesting the court to continue the guardianship.”⁴⁰ SCAO Administrative Memorandum 2012-04, supra at p 5. “The court shall determine whether the juvenile guardianship remains in the youth’s best interests and issue an order.”⁴¹ Id.

Note: “[The] SCAO recommends that, upon receiving a voluntary agreement and request to keep the case open, the court schedule the required annual review hearing to ensure that a best interests determination is made within 365 days after the youth’s 18th birthday and annually thereafter.”

3.​Court’s Role

Retain jurisdiction of the youth. “If the court has appointed a [juvenile] guardian under [MCL 712A.19a] or [MCL 712A.19c]^[42] for a youth age 16 or older, the court shall retain jurisdiction of the youth until the [DHHS] determines the youth’s^[43] eligibility to receive extended guardianship assistance under the [YAVFCA], . . . MCL 400.641 to [MCL] 400.671, that shall be completed within 120 days of the youth’s eighteenth birthday. If the [DHHS] determines the youth will receive extended guardianship assistance, the court shall retain jurisdiction of the youth until that youth no longer receives guardianship assistance.”⁴⁴ MCL 712A.2a(4) (emphasis added). See also MCL 400.669(1), which requires the court to retain its jurisdiction “of a youth receiving, or a youth for whom the department is determining eligibility for receiving, extended guardianship assistance until that youth no longer receives guardianship assistance.” But see MCL 712A.19a(12), MCL 712A.19c(9), and MCR 3.979(C)(1)(a), which require the court’s jurisdiction over the child pursuant to MCL 712A.2(b) to terminate once the juvenile guardian is appointed and a review hearing is conducted under MCL 712A.19.

Retain jurisdiction of the guardianship. If the DHHS provides the court with notice that it is extending guardianship assistance to a youth beyond the age of 18 under MCL 400.665 (YAVFCA), the court must also “retain jurisdiction over the guardianship until that youth no longer receives extended guardianship assistance.” MCR 3.979(C)(1)(b) (emphasis added).

Conduct Reviews. MCR 3.979(D)(1)(b) sets forth the court’s responsibilities for conducting reviews on extended guardianship assistance:

•​“If, under [MCR 3.979(C)(1)(b) (retention of court jurisdiction over juvenile guardianship for extended juvenile guardianship assistance)], the [DHHS] has notified the court that extended guardianship assistance has been provided to a youth pursuant to MCL 400.665, the court shall conduct an annual review hearing at least once every 12 months thereafter to determine that the guardianship meets the criteria under MCL 400.667.^[45] The duty to conduct an annual review hearing on extended guardianship assistance shall discontinue when the youth is no longer eligible for extended guardianship assistance. Notice of the hearing under this subrule shall be sent to the guardian and the youth as provided in MCR 3.920(D)(1).

(i) The hearing conducted under this subrule may be adjourned up to 28 days for good cause shown.

(ii) If requested by the court, the guardian must provide proof at the review hearing that the youth is in compliance with the criteria of MCL 400.667.

(iii) Following a review hearing under this subrule, the court shall issue an order to support its determination and serve the order on the [DHHS], the guardian, and the youth.”

“Upon receipt of notice from the [DHHS] that it will not continue extended guardianship assistance, the court shall immediately terminate the juvenile guardianship.” MCR 3.979(D)(1)(c).

For additional information on the court’s jurisdiction following the appointment of a juvenile guardian, see Section 4.9.

J.​Title IV-E Eligibility⁴⁶

MCL 722.874(2) and MCL 722.874(3) address Title IV-E⁴⁷ funding and its relationship to guardianship assistance:

“(2) Only a relative who is a licensed foster parent caring for a child who is eligible to receive [T]itle IV-E-funded foster care payments for 6 consecutive months after licensure of the family is eligible for federal funding under [T]itle IV-E for guardianship assistance. A child who is not eligible for [T]itle IV-E funding who is placed with a licensed foster parent, related or unrelated, and who meets the requirements of [MCL 722.873(a)-(e)] may be eligible for state-funded guardianship assistance.

(3) If a child is eligible for [T]itle IV-E-funded guardianship assistance under [MCL 722.873] but has a sibling who is not eligible under [MCL 722.873], both of the following apply:

(a) The child and any of the child’s siblings may be placed in the same relative guardianship arrangement in accordance with . . . the probate code, [MCL 712A.1 et seq.,] another state’s law or code, or tribal law or code, if the [DHHS] and the relative agree on the appropriateness of the arrangement for the sibling.

(b) Title IV-E-funded relative guardianship assistance payments may be paid on behalf of each sibling placed in accordance with this subsection.”

To maintain a child’s Title IV-E funding eligibility when his or her juvenile guardianship is revoked and the child protective proceeding is reinstated, the court must make “contrary to the welfare of the child findings” and place the child with the DHHS. SCAO Memorandum, Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, p 5. The contrary to the welfare of the child findings are made against the juvenile guardian (not the child’s parents). Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, supra at 5 n 10. However, if the child has not lived with the juvenile guardian for the last six consecutive months, the SCAO recommends that the court make reasonable efforts and contrary to the welfare findings regarding both the juvenile guardian and the child’s parents. Id. If the court fails to make a reasonable efforts finding in its order revoking the juvenile guardianship, the finding needs to be made within 60 days of the revocation order. Id. at 6. See Section 16.8(E) for a detailed discussion of revoking a juvenile guardianship.

Note: A new petition alleging abuse and neglect does not need to be filed against the guardian. Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, supra at 5.

14.5​Redirecting or Issuing Child Support Payment to Juvenile Guardian

To help support a child, a juvenile guardian may be eligible for child support payments. SCAO Memorandum, Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, p 3. Before issuing a child support order, the court must determine whether another state has issued a child support order or another court in Michigan has continuing jurisdiction over child support, custody, or parenting time. Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, supra at 5.

A.​Child Support Order Already Exists

Where the court finds that a child support order already exists, the court should not issue a new child support order against the same parent. SCAO Memorandum, Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, p 3. Rather, the juvenile guardian should make a written request for an administrative change of recipient to the Friend of the Court (FOC). Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, supra at 3. See also MCL 552.517(1)(f); MCL 552.605d.⁴⁸

Note: Because there has been a change in physical custody of the child, the FOC should initiate a review and modification of the child support order. See MCL 552.517; Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, supra at 3. If the FOC finds that both parents were not previously obligated to pay child support and the issuing court has continuing jurisdiction over the nonpaying parent, the FOC should recommend inclusion of the nonpaying parent when it is not inconsistent with the permanency plan. Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, supra at 3.

The Uniform Interstate Family Support Act (UIFSA), MCL 552.2101 et seq.,⁴⁹ and the Full Faith and Credit of Child Support Orders Act (FFCCSOA), 28 USC 1738B, require recognition of interstate child support orders and a prohibition against modifying another state’s child support order without certain criteria being met. Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, supra at 4. Where an FOC office already has an interstate case concerning the child, the juvenile guardian should request IV-D services through the Michigan Office of Child Support (OCS).⁵⁰ Id. However, if another state issued a child support order, but an FOC office does not have an interstate case concerning the child, the juvenile guardian should request IV-D services through an FOC office. Id.

B.​No Child Support Order Exists

A juvenile guardian may request entry of a child support order, or the court may enter one on its own motion. SCAO Memorandum, Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, p 5.

1.​Pending Action

MCR 3.204 controls an action to establish a child support obligation where the circuit court has a pending action involving child support, custody, or parenting time, or the court has continuing jurisdiction over such matters due to a prior action involving the child’s parents. Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, supra at 4. See MCR 3.973(F)(5).

To establish a child support obligation, the juvenile guardian should request IV-D services through the Michigan Office of Child Support (OCS).⁵¹ Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, supra at 4. Once the OCS refers the IV-D case, the prosecutor’s office will assist in establishing an order of support. Id. at 4 n 8.

2.​No Pending Action

Where there is no other pending or prior action involving child support, custody, or parenting time, and the court has not terminated the parents’ parental rights, the court may enter a support order requiring one or both parents to pay child support.⁵² Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, supra at 4. See MCR 3.973(F)(5).⁵³ To order child support, the court must find that the proofs in the case satisfy the requirements for ordering child support under one of the following laws:

(1) Emancipation of Minors Act;

(2) Paternity Act;

(3) Family Support Act;

(4) Uniform Interstate Family Support Act; or

(5) Divorce Code. Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, supra at 4-5.

In entering a support order under MCR 3.973(F)(5), the court must use the Michigan Child Support Formula to determine the amount of support. MCL 552.605; MCR 3.973(F)(5); Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, supra at 5. See Section 4.01 and Section 4.02 of the Michigan Child Support Formula for guidance on determining child support for third party custodians and other special custody arrangements for children.

The court should establish child support once the juvenile guardian is appointed and before the child protective proceeding is terminated. Juvenile Guardianship Guidelines for Transfer of Jurisdiction, Child Support, and Funding Issues, supra at 4. If the child protective proceeding is terminated before a child support order is entered, the juvenile guardian may file a separate support action to obtain the child support. Id. at 5. To establish the child support obligation, the juvenile guardian should request IV-D services through the OCS. Id. at 4. Once the OCS refers the IV-D case, the prosecutor’s office will assist in establishing an order of support. Id. at 5.