KRS 199.555: State-funded adoption assistance payments -- Conditions.

(1) A "special-needs child" means:

(a) A child which the state has determined cannot or should not be returned to the

home of the child's parents; and

(b) A child which the state has first determined:

1. That there exists a specific factor or condition the exi stence of which

leads to the reasonable conclusion that the child cannot be placed with

adoptive parents without providing adoption assistance under this

section or medical assistance under Title XIX; and

2. That except where it would be against the best i nterests of the child

because of such factors as the existence of significant emotional ties

with prospective adoptive parents while in the care of these parents as a

foster child, a reasonable, but unsuccessful, effort has been made to

place the child wit h appropriate adoptive parents without providing

adoption assistance under this section or medical assistance under Title

XIX.

(2) "State-funded adoption assistance" means a monthly payment to assist in meeting

the special needs of a child which was placed by the Cabinet for Health and Family

Services. The state -funded adoption assistance shall also include payment of

nonrecurring adoption expenses, and may include reimbursement of extraordinary

medical expenses.

(3) "Nonrecurring adoption expenses" means t hose expenses which are incurred in the

legal adoption of a special -needs child for which parents are ultimately responsible

which include reasonable and necessary adoption fees, court costs, attorney fees,

and other expenses which are directly related to the special -needs adoption and

which are not incurred in violation of state or federal law.

(4) "Extraordinary medical expenses" means those expenses which are related to the

child's special needs which existed prior to the adoption and are not reimbursed by

private insurance, Medicaid, or other third-party payors or government programs.

(5) If the secretary of the Cabinet for Health and Family Services or his designated

representative finds that a child may benefit from being adopted and that a monthly

assistance payment to adoptive parents after the adoption will increase the

likelihood of adoption, state funds may be paid to the adoptive parents after

completion of the adoption of the child if the following conditions exist:

(a) The child was considered a special-needs child prior to the adoption;

(b) The child is committed to the Cabinet for Health and Family Services and the

cabinet has authority to consent to the child's adoption; and

(c) The adoptive parents can give suitable care to the child if a mon thly adoption

assistance is paid.

(6) Agreements for the payments of state funds under this section shall be made prior to

the adoption of the child. However, if the secretary for health and fam ily services or

his designated representative finds that the adoption is likely to disrupt, state-funded

extraordinary medical expenses may be reimbursed contingent upon availability of

resources, if the following conditions exist:

(a) The child was placed for adoption by the Cabinet for Health and Family

Services;

(b) The child was considered a special-needs child prior to the adoption;

(c) The parents have made a reasonable effort under the circumstances to meet

the needs of the child without reimbursemen t for extraordinary medical

expenses.

This subsection shall apply to any child meeting the conditions of this subsection

who at the time of application for the state -funded post -adoption extraordinary

medical expenses is under the age of eighteen (18). Th is subsection shall have

retroactive as well as prospective effect.

(7) The payments shall be out of funds appropriated to the cabinet and those funds

collected pursuant to KRS 199.473(13), which shall be deposited in a restricted

account for the purpose o f assisting special -needs adoptions, and shall be in

accordance with regulations promulgated by the secretary. The payments shall not

exceed the amount which would be paid for foster care for the child. Monthly state -

funded assistance payments shall not ex ceed the amount which would be paid for

foster care for the child and may include reimbursement for extraordinary medical

expenses. Payment of nonrecurring adoption expenses shall only be reimbursed up

to the limit established by the secretary for health and family services in accord with

42 U.S.C. sec. 673. However, payments under agreements entered into under

subsection (6) of this section shall be limited to reimbursement of authorized

extraordinary medical expenses related to problems or conditions that existed prior

to the adoption.

(8) State-funded adoption assistance payments shall not be made to parents if:

(a) The child has attained the age of eighteen (18), except that if the child is

enrolled in a state or federal educational program, the payments may continue

through age twenty-one (21);

(b) The cabinet determines the parents are no longer legally responsible for the

support of the child; or

(c) The cabinet determines that the child is no longer receiving any support from

the parents.

(9) Parents who have been receiving state -funded adoption assistance payments under

this section shall keep the cabinet informed of circumstances which would, pursuant

to subsection (8) of this section, make them ineligible for assistance, or eligible for

assistance in a different amount.

(10) The cabinet shall establish criteria to be followed for the adoption of children under

provisions of this section and shall promulgate the criteria by administrative

regulations.