A.Orders for Reimbursement of the Costs of Care or Services When a Child Is Placed Outside the Home
“An order of disposition placing a [child] in or committing a [child] to care outside of the [child’s] own home and under state . . . or court supervision must contain a provision for reimbursement by the [child], parent, guardian, or custodian to the court for the cost of care or service.”1 MCL 712A.18(2).
Note: For purposes of MCL 712A.18(2), “one does not become a ‘custodian’ without acquiring, under clearly articulated circumstances, legal possession of a [child’s] property, which is then held in trust for the child.” In re Hudson (Amanda), 262 Mich App 612, 614 (2004), citing MCL 554.521 et seq. (because stepfather was not a financial custodian within the “specialized meaning in the law,” he could not be ordered to reimburse the court for the cost of stepdaughter’s out-of-home placement).
An order directed to anyone other than the child is not effective and binding on that person unless he or she has been served a copy of the order as provided in MCL 712A.13 and given an opportunity for a hearing on the matter by summons or notice as provided in MCL 712A.12 and MCL 712A.13. MCL 712A.18(4).
A reimbursement order “shall be reasonable, taking into account both the income and resources of the [child], parent, guardian, or custodian.” MCL 712A.18(2). The amount may be based upon the Michigan Child Support Formula Schedules Supplement from the Michigan Child Support Formula Manual. See MCL 712A.18(2); MCL 712A.18(3); MCL 712A.18(6).2
If the child is receiving an adoption assistance under MCL 400.115f et seq., the amount of reimbursement ordered must not exceed the amount of the support subsidy. MCL 712A.18(2).
2.Duration of Reimbursement Order
“The reimbursement provision applies during the entire period the [child] remains in care outside of the [child’s] own home and under state . . . or court supervision, unless the [child] is in the permanent custody of the court.” MCL 712A.18(2).
Because the reimbursement order is included in an order of disposition, the court must necessarily order reimbursement before it is aware of the total amount of expenses that the state will incur in caring for the child. In re Brzezinski, 214 Mich App 652, 677, 679 (1995) (Griffin, P.J., dissenting), rev’d for the reasons stated in the dissent 454 Mich 890 (1997). However, the court should defer the determination of the total amount of a parent’s reimbursement obligation until total costs can be determined. See In re Brzezinski, supra at 679.
See also In re Reiswitz, 236 Mich App 158, 163-168 (1999), which extended the logic of Judge Griffin’s dissent in In re Brzezinski, 214 Mich App at 673, to situations in which the child is no longer under the court’s jurisdiction because of his or her age. The Court of Appeals held that “a . . . court may order and collect reimbursement, both before and after the [child] reaches the age of majority, for the costs incurred by the state when out-of-home placement is ordered.” In re Reiswitz, supra at 168.
3.Collection and Disbursement of Amounts Collected
All money collected for reimbursement for out-of-home care for a child must be accounted for and reported to the county board of commissioners. MCL 712A.18(2). Money collected for children placed in or committed to the DHHS must be reported on an individual basis. Id. Money may be collected for reimbursement or to cover a delinquent account even if the child has been released or discharged from out-of-home care and from under state or court supervision. Id. The court may also collect benefits paid by the federal government for the cost of care of a court ward. Id.
Of the amounts collected, 25 percent must be credited to the county’s fund for offsetting the administrative cost of collections. MCL 712A.18(2). The balance of any money collected must be divided in the same ratio in which the county, state, and federal government participate in the cost of a child’s care outside the child’s own home and under county, state, or court supervision. Id.
MCL 712A.18(2) states in relevant part:
“In cases of delinquent accounts, the court may also enter an order to intercept state or federal tax refunds of a [child], parent, guardian, or custodian and initiate the necessary offset proceedings to recover the cost of care or service. The court shall send to the person who is the subject of the intercept order advance written notice of the proposed offset. The notice must include notice of the opportunity to contest the offset on the grounds that the intercept is not proper because of a mistake of fact concerning the amount of the delinquency or the identity of the person subject to the order. The court shall provide for the prompt reimbursement of an amount withheld in error or an amount found to exceed the delinquent amount.”
5.Copy of Reimbursement Order to Department of Treasury
A court that enters a reimbursement order under MCL 712A.18(2) must mail a copy of the order to the Michigan Department of Treasury. MCL 712A.28(4). Any action taken against the child’s parent or other adult must not be released for publicity unless the parent or other adult is found guilty of contempt of court. Id.
B.Orders for Reimbursement of the Costs of Service When a Child Is Placed Under Supervision in the Child’s Own Home
An order of disposition under MCL 712A.18(1)(b) placing a child under supervision in the child’s own home may contain a provision for the reimbursement by the child, parent, guardian, or custodian to the court for the cost of service.3 MCL 712A.18(3). If reimbursement is ordered under MCL 712A.18(3), the court must determine the amount due and treat the order for reimbursement in the same manner as provided in MCL 712A.18(2) (reimbursement orders for cost of care of out-of-home placement). MCL 712A.18(3).4
The Michigan Child Support Formula Schedules Supplement from the Michigan Child Support Formula Manual may be used in determining the amount of reimbursement. See MCL 712A.18(6).5
1 See SCAO guidelines for court-ordered reimbursement.
2 Effective July 1, 2006, the Michigan Child Support Formula Schedules Supplement replaced the guidelines and model schedule to which MCL 712A.18(2) and MCL 712A.18(6) refer. Administrative Order No. 2006-5.
3 See SCAO guidelines for court-ordered reimbursement.
4 See Section 14.2(A). Note that an order for reimbursement of costs when the child is placed in the home is discretionary, not mandatory.
5 Effective July 1, 2006, the Michigan Child Support Formula Schedules Supplement replaced the guidelines and model schedule to which MCL 712A.18(6) refers.