1. (1) If the parental rights of an Indian child's parents have not been terminated and the Indian child is in need of placement or continuation in substitute care, the Indian child must be placed in the least restrictive setting that:

   1. (a) Most closely approximates a family, taking into consideration sibling attachment;
   2. (b) Allows the Indian child's special needs, if any, to be met;
   3. (c) Subject to subsection (1)(d)(II)(C) of this section, is in reasonable proximity to the Indian child's home, extended family, or siblings; and

   4. (d)

      1. (I) Except as provided in subsection (3) of this section, is in accordance with the order of preference established by the Indian child's tribe; or

      2. (II) If the Indian child's tribe has not established placement preferences, is in accordance with the following order of preference:

         1. (A) The child's noncustodial parent;
         2. (B) A member of the Indian child's extended family;
         3. (C) A foster home licensed, approved, or specified by the Indian child's tribe;
         4. (D) Another member of the Indian child's tribe;
         5. (E) Another Indian family with whom the Indian child has a relationship;
         6. (F) An Indian family from a tribe that is culturally similar or linguistically connected to the Indian child's tribe;
         7. (G) A foster home licensed or approved by a licensing authority in this state and in which one or more of the licensed or approved foster parents is an Indian; or
         8. (H) An institution for children that has a program suitable to meet the Indian child's needs and is approved by an Indian tribe or operated by an Indian organization.

2. (2) If the parental rights of the Indian child's parents have been terminated or if an Indian child is in need of guardianship pursuant to part 2 of article 14 of title 15 or adoptive placement, except as provided for in subsection (3) of this section, the Indian child must be placed:

   1. (a) In accordance with the order of preference established by the Indian child's tribe; or

   2. (b) If the Indian child's tribe has not established placement preferences, according to the following order of preference:

      1. (I) With a member of the Indian child's extended family;
      2. (II) With other members of the Indian child's tribe;
      3. (III) With a member or citizen of an Indian tribe in which the Indian child is eligible for membership or citizenship but that is not the Indian child's tribe;
      4. (IV) With another Indian family with whom the Indian child has a relationship;
      5. (V) With an Indian family from a tribe that is culturally similar or linguistically connected to the Indian child's tribe; or
      6. (VI) With another Indian family.

3. (3)

   1. (a) A party may file a motion with the court requesting authority to place the Indian child contrary to the placement preferences set forth in subsection (1) or (2) of this section. The motion must detail the reasons the party asserts that good cause exists for placement contrary to the placement preferences set forth in subsection (1) or (2) of this section.
   2. (b) Upon the filing of an objection to a motion filed pursuant to subsection (3)(a) of this section, the court shall set the time for a hearing on the objections.
   3. (c) If the court determines that the moving party has established its burden by clear and convincing evidence that there is good cause to depart from the placement preferences set forth in subsection (1) or (2) of this section, the court may authorize an alternative placement.

   4. (d) The court's determination pursuant to subsection (3)(c) of this section:

      1. (I) Must be in writing and based on one or more of the following factors:

         1. (A) The preferences of the Indian child, if the Indian child is of sufficient age and capacity to understand the decision that is being made;
         2. (B) The presence of a sibling attachment that cannot be maintained through a placement consistent with the placement preferences set forth in subsection (1) or (2) of this section;
         3. (C) Any extraordinary physical, mental, or emotional needs of the Indian child that require specialized treatment services if, despite active efforts, those services are unavailable in the community where families who meet the placement preferences set forth in subsection (1) or (2) of this section reside;
         4. (D) A finding based on the testimony of the child placement agency or the petitioning or filing party that a diligent search has been conducted and that a placement meeting the placement preferences set forth in subsection (1) or (2) of this section is unavailable, as determined by the prevailing social and cultural standards of the Indian community in which the Indian child's parent or extended family resides or maintains social and cultural ties; or
         5. (E) The placement request of the Indian child's parent, after the Indian child's parent has reviewed the placement options, if any comply with the placement preferences set forth in subsection (1) or (2) of this section;
      2. (II) Must allow the court to retain discretion to find that good cause does not exist even if one or more of the factors in subsection (3)(d)(I) of this section are present;
      3. (III) Must, in applying the placement preferences set forth in subsection (1) or (2) of this section, give weight to the Indian child's parent's request for anonymity if the placement is an adoptive placement to which the Indian child's parent has consented; and

      4. (IV) May not be based:

         1. (A) On the socioeconomic conditions of the Indian child's tribe;
         2. (B) On any perception of the tribe's or federal bureau of Indian affairs's social services or judicial systems;
         3. (C) On the distance between a placement that meets the placement preferences set forth in subsection (1) or (2) of this section that is located on or near a reservation and the Indian child's parent, except if the placement would undermine reunification efforts; or
         4. (D) Solely on the ordinary bonding or attachment between the Indian child and a non-preferred placement arising from time spent in the non-preferred placement.
4. (4) The court, on the court's own motion or the motion of any party, shall make a determination pursuant to this section regarding the Indian child's placement if the court or the moving party has reason to know that the Indian child was placed contrary to the placement preferences set forth in subsection (1) or (2) of this section without good cause. A motion made pursuant to this subsection (4) may be made in writing or orally on the record.
5. (5) To ensure that this article 1.2 is fully implemented and that all Indian children have the opportunity to maintain strong connections to their culture, if the household into which an Indian child is placed for adoption or guardianship does not include a parent who is a member of the Indian child's tribe, the court shall require the parties to the adoption to enter a cultural compact at the discretion of the Indian child's tribe, or otherwise develop a plan that documents the parties' agreement regarding how the Indian child will continue to actively participate in the Indian child's cultural learning and activities, and engagement with family members. Each cultural compact or plan must be specific to the Indian child; must consider the Indian child's mental, physical, and emotional needs, including the Indian child's preferences; and must take into account the Indian child's understanding as the Indian child grows and matures. The cultural compact or plan is considered a post-adoption contact agreement in accordance with section 19-5-208 (4.5) and enforceable in accordance with section 19-5-217.
6. (6) A confidentiality requirement, if any, does not relieve the court or any petitioners in an adoption proceeding from the duty to comply with the placement preferences set forth in this section if the child is an Indian child.
7. (7) A confidentiality requirement, if any, does not prevent an adult adoptee, adult descendant of an adoptee, or another eligible party from obtaining unredacted copies of adoption records pursuant to section 19-5-305.

Source: L. 2025: Entire article added, (HB 25-1204), ch. 338, p. 1806, § 2, effective August 6.