Requires the children's administration within the department of social and health services to collaborate with community partners and stakeholders in two demonstration regions to jointly develop a plan for implementation of a core set of performance-based contracts to provide an array of evidence-based and promising prevention and intervention services for families who are at risk for an out-of-home placement or have a child in out-of-home care, and for children who are awaiting adoption.

Requires the caseload forecast council, the department of social and health services, and the office of financial management to develop procedures necessary for the reinvestment in the demonstration region of savings resulting from reduced foster care caseloads into expanding the delivery of evidence-based intervention and prevention programs.