(1) A child is eligible to have state subsidized guardianship payments made on the child's behalf if the child has been adjudicated a youth in need of care pursuant to Title 41, chapter 3, part 4, MCA.

(2) Subsidized guardianship payments may be made to the guardian of an eligible child when:

(a) the child meets the guardianship criteria found in 41-3-421 , MCA;

(b) the prospective guardian and guardian's home meet the requirements of ARM 37.50.1101;

(c) the court has issued a decree of guardianship;

(d) an agreement describing the terms and conditions of the guardianship subsidy has been negotiated by the department with the prospective guardian; and

(e) the prospective guardian and the department have signed an agreement describing the negotiated terms and conditions of the subsidy prior to the issuance of the guardianship decree.

(3) Monthly payments and medical coverage as provided under Montana Medicaid programs may be provided under a subsidized guardianship agreement. A child in a subsidized guardianship arrangement is not eligible for the foster care support services as provided for in ARM 37.50.501, 37.50.502, 37.50.505, 37.50.506, 37.50.510 through 37.50.512, 37.50.520, 37.50.521, and 37.50.525.

(4) The monthly payment must not exceed the family foster care maintenance payment for which the child is eligible at the time the guardianship is established.

(5) The subsidized guardianship agreement may be renegotiated at the request of either the guardian or the department.

(6) The subsidized guardianship agreement may be terminated if requested by or agreed to by the guardian.

(7) The subsidized guardianship agreement shall be terminated if the guardianship is revoked by the court or if the department determines that the subsidy is not being used to support the child.