Requires the department of social and health services to select two or more geographic areas with high concentrations of high-needs children in foster care for the implementation of phase one of a specialized foster parent program. During phase one of the implementation of the program, only state-licensed foster parents shall be eligible to participate in the program.

Requires the department of social and health services to report to the governor and the appropriate members of the legislature by January 1, 2009, and to identify the essential elements of the specialized foster parent program that should be addressed or replicated as the program is expanded to the next phase.

Applies collective bargaining provisions to the governor with respect to specialized foster care home providers.