M.S.
As hard as it is to accept at times, CPS has to have concrete evidence in order to pursue removal. The way a woman lives her personal life, however immoral, is not justifiable cause so long as the children aren't put in harms way. While we can see the poor life lessons being taught, that is not against the law.
Unless the children are left alone for long periods of time, have life threatening situations or chronic problems with health issues, there won't be anything solid for CPS to stand on.
May I suggest contacting the school your grandson attends and sharing your concerns with the principal and the couselor(s). Teachers/administration are required to document any suspicions or concerns they may have. They may have had concerns that did not warrant contacting CPS because they were isolated or minor. After sharing the ringworm situation, the documentation they may have, could be enough to get CPS's attention again.
Document is crucial. Note everything that has been said/has occured for your own records in case you need them in the future (date, time, conversation noted as detailed as possible, specific situation, where it took place, etc. witnesses if available.)
Having a doctor's input is also important. Ringworms can spread quickly if untreated, but there is no reason for him to be COVERED in them. The excuse that she doesn't have time to take care of it is an example of NEGLECT. As bad as the situation is for him, I must caution that having him placed in foster care has it's own problems. From the sounds of your letter, I am assuming that you would be willing to care for him should he be removed. Your son could also use these documentations to pursue full custody of his son.
Hope this is helpful. I am so sorry that your little grandson is going through this. We will lift him in prayer, as well as the rest of the family.
Blessings in Christ,
M.
M. Schultze ~ Founder & President of C.H.O.S.E.N. Adoption & Foster Ministry, Inc. (Adoptive mother of 4 through: private, international and foster adoptions.)