(1) Under a child welfare demonstration project awarded by the federal department of health and human services, the department is authorized to utilize federal funds to pay guardianship subsidy on behalf of children who meet the requirements established under the terms and conditions of the demonstration project. The terms and conditions contract between the federal Department of Health and Human Services and the department is hereby adopted and incorporated by reference. Copies of the contract may be obtained on the department's web site at http://www.dphhs.mt.gov or from the Department of Public Health and Human Services, Child and Family Services Division, 1400 Broadway, P.O. Box 8005, Helena, MT 59620-8005.

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

(a) the requirements established under the demonstration project terms and conditions and the requirements of ARM 37.50.1102(2) (b) through (7) are met.

(3) Children who meet the eligibility requirements established under the demonstration project will be randomly assigned to a service group or a control group.

(4) Only children assigned to the service group will be eligible to receive federally subsidized guardianship payments.

(5) The department must make an annual visit to the home of each child receiving a federally subsidized guardianship.