(a) A child or young adult must meet all of the following criteria to be eligible for Title IV-E or state-paid foster care assistance.
  (1) Responsibility for placement and care. Except as provided in subsection (c) of this section, the Texas Department of Family and Protective Services (DFPS) must have responsibility for the child's placement and care. This requirement is met if:
    (A) The child is placed in DFPS's managing conservatorship by written court order issued under Title 5, Texas Family Code;
    (B) DFPS takes possession of the child under Texas Family Code Chapter 262;
    (C) The child lives with his minor parent, and the minor parent is in DFPS's managing conservatorship. The child and the minor parent must reside together in the same foster family home or residential child-care operation;
    (D) The young adult was in DFPS's conservatorship on the day before turning 18, has signed a voluntary Extended Foster Care Agreement, and meets all of the eligibility requirements in §700.346 of this title (relating to Extended Foster Care); or
    (E) The child lives with a parent who is receiving extended foster care assistance, except that in some instances the parent may be required to apply for Medicaid on the child's behalf under §700.346 of this title.
  (2) Age. The child must be under 18 years old, unless he or she qualifies for extended foster care assistance under §700.346 of this title.
  (3) Placement. The child must be receiving care in a placement that:
    (A) Meets the definition of "foster family home" or "child-care institution" as those terms are defined by 42 U.S.C. §672(c); and
    (B) Is approved by DFPS. If the child is in foster family care and the foster family moves out of state with the agreement of DFPS, the child's eligibility for foster care assistance will be reviewed every 90 days for continued DFPS approval and to determine continued eligibility.
(b) In order to qualify for Medical Assistance Only (MAO), a child must meet the following requirements:
  (1) DFPS must have responsibility for the child's placement and care, as defined in subsection (a)(1) of this section. The child may be in a licensed or unlicensed placement, as long as he or she remains in DFPS's managing conservatorship and is not eligible for Medicaid through another program.
  (2) The child must be under the age of 18 years.
(c) A young adult who was previously under the placement and care responsibility of DFPS on the day before turning 18 and who is under guardianship of the Department of Aging and Disability Services (DADS) on or after turning 18 is eligible for continued foster care maintenance payments as provided under §700.346 of this title except that:
  (1) Once the guardian has been appointed, DFPS will file a notice of termination of the family court's jurisdiction, and the guardian is not required to agree to an extension of the family court's jurisdiction, under Texas Family Code Chapter 263, Subchapter G, as the probate court has continual oversight of the young adult's case;
  (2) Case management, including monthly caseworker visits, are handled by the DADS guardian; and
  (3) The young adult does not sign a Voluntary Extended Foster Care Agreement; rather, the guardian agrees to the appropriateness of the extended foster care placement on the young adult's behalf and complies with any corresponding documentation requirements DFPS may establish.
(d) Notwithstanding any other provision in this section, a child is not eligible for foster care assistance, including any costs associated with the provision of medical care, if:
  (1) DFPS was named conservator of the child (or the minor parent of a child described in subsection (a)(1)(C) of this section) in a legal proceeding in which DFPS did not seek to be awarded managing conservatorship of the child;
  (2) The child is placed in a detention center or facility awaiting a detention hearing; or
  (3) The child is placed by a court having juvenile justice or criminal jurisdiction in a public institution as defined at 42 CFR §435.1009, or a residential child-care facility as defined in Human Resources Code, §42.002, as the result of a juvenile justice or criminal proceeding, adjudication, or conviction.
(e) For the purposes of this subchapter, references to the term "child" also refer to a young adult who is receiving extended foster care assistance as provided in §700.346 of this title, unless the context clearly indicates otherwise.

Source Note: The provisions of this §700.316 adopted to be effective September 1, 2006, 31 TexReg 6239; amended to be effective September 1, 2007, 32 TexReg 5386; amended to be effective March 1, 2010, 35 TexReg 873; amended to be effective February 12, 2012, 37 TexReg 711