A. A permanency hearing shall be commenced within six months of the initial judicial review of a child’s dispositional order or within twelve months of a child entering foster care pursuant to Subsection D [E] of this section, whichever occurs first. Prior to the initial permanency hearing:

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(1)     the department shall submit a copy of any continuation of the dispositional order and notice of hearing to the council or any substitute care review board designated pursuant to Section 32A-8-5 N.M. Stat. Ann.;

(2)     the department shall submit a progress report to any designated substitute care review board;

(3)     all parties to the hearing shall attend a mandatory meeting and attempt to settle issues attendant to the permanency hearing and develop a proposed treatment plan that serves the child’s best interest; and

(4)     any designated substitute care review board may review the child’s case and the department’s progress report and report its findings and recommendations to the court.

B. At the permanency hearing, all parties shall have the opportunity to present evidence and to cross-examine witnesses. At the conclusion of the permanency hearing, the court shall order one of the following permanency plans for the child:

(1)     reunification;

(2)     placement for adoption after the parents’ rights have been relinquished or terminated or after a motion has been filed to terminate parental rights;

(3)     placement with a person who will be the child’s permanent guardian;

(4)     placement in the legal custody of the department with the child placed in the home of a fit and willing relative; or

(5)     placement in the legal custody of the department under a planned permanent living arrangement, provided that there is substantial evidence that none of the above plans is appropriate for the child.

C. If the court adopts a permanency plan of reunification, the court shall adopt a plan for transitioning the child home within a reasonable period depending on the facts and circumstances of the case, but not to exceed six months, and schedule a permanency review hearing within three months. If the child is reunified, the subsequent hearing may be vacated.

D. At the permanency review hearing, all parties and the child’s guardian ad litem or attorney shall have the opportunity to present evidence and cross-examine witnesses. Based on the evidence, the court shall:

(1)     change the plan from reunification to one of the alternative plans provided in Subsection B of this section;

(2)     dismiss the case and return custody of the child to the child’s parent, guardian or custodian;

(3)     continue legal custody of the child in the department to complete a transition home to the child’s parent, guardian or custodian and continue the case plan for not more than six months, after which the case shall be dismissed unless the plan is changed as provided in Paragraph (1) of this subsection; or

(4)     return the child to the custody of the child’s parent, guardian or custodian, subject to any conditions or limitations as the court may prescribe, including protective supervision of the child by the department and continuation of the case plan for not more than six months, after which the case shall be dismissed. The department may seek removal of a child from the home by obtaining an order in the pending case or by seeking emergency removal under Section 32A-4-6 N.M. Stat. Ann. during the period of protective supervision if the child’s best interest requires such action. When a child is removed in this situation, a permanency hearing shall be scheduled within thirty days of the child coming back into the department’s legal custody.

E. The court shall hold a permanency hearing and adopt a permanency plan for a child within twelve months of the child entering foster care. For purposes of this section, a child shall be considered to have entered foster care on the earlier of:

(1)     the date of the first judicial finding that the child has been abused or neglected; or

(2)     sixty days after the date on which the child was removed from the home.

F. The court shall hold permanency hearings every twelve months when a child is in the legal custody of the department.

G. The children’s court attorney shall give notice of the time, place and purpose of any permanency hearing or permanency review hearing held pursuant to this section to:

(1)     all parties, including:

(a) the child alleged to be neglected or abused or in need of court-ordered services, by and through the child’s guardian ad litem or attorney;

(b) the child’s parent, guardian or custodian, who has allegedly neglected or abused the child or is in need of court-ordered services; and

(c) any other person made a party by the court;

(2)     the child’s foster parent or substitute care provider; (3)     the child’s court-appointed special advocate; and

(4)     if designated by the council, the substitute care review board.

H. The Rules of Evidence shall not apply to permanency hearings. The court may admit testimony by any person given notice of the permanency hearing who has information about the status of the child or the status of the treatment plan. All testimony shall be subject to cross-examination.