S.F. No. 1105 (477A.0127) establishes the parameters by which the commissioner of human services shall reimburse counties and tribes for their nonfederal share of costs for out-of-home child placements.

Subdivision 1 limits the definition of “out-of-home placement” to include children placed away from their parent or guardian under the Indian Child Welfare Act (ICWA), placed in 24-hour substitute care, placement in foster care, or placement in a correctional facility pursuant to a court order.

Subdivision 2 requires counties to report their costs and number of case days for out-of-home child placements under ICWA in 2016, 2017, and 2018 to the commissioner by January 1, 2020. The commissioner must then consult with the commissioner of corrections to verify the accuracy of the reported costs. Beginning January 1, 2021, counties must report their out-of-home ICWA placement costs for the preceding two years. The commissioner must rely on these data to calculate county reimbursement unless the commissioner develops a different mechanism to collect and verify the same data.

Subdivision 3 requires the commissioner to reimburse 100% of a county’s average nonfederal share of the cost for out-of-home child placements under ICWA, based on the data provided under subdivision 2, so long as accurate data exists for the commissioner to make the determination.

Subdivision 4 requires tribes to report their annual federal reimbursement for out-of-home placements under ICWA, in order for the commissioner to calculate the amount of state reimbursement. The commissioner must reimburse tribes 5% of average federal reimbursement for the last three calendar years, but not more than $200,000.

For both counties and tribes, the aid payment is reduced by the amount of aid paid under 477A.0126

Subdivision 5 appropriates sufficient funds to pay the necessary state reimbursements to counties and tribes.