Expands membership of the child welfare transformation committee by including a youth currently in, or an alumni of, the state foster care system.

Requires the committee to: (1) After two demonstration sites have been selected and are in operation, develop recommendations for a competitive contract bidding process; and

(2) In selecting demonstration sites, for the provision of certain child welfare services, maintain the placement and care authority of the state over children receiving child welfare services at a level that does not adversely affect the continuation of federal funding and options to further maximize federal funding opportunities.

Requires the conversion of contracts for the provision of child welfare services to performance-based contracts to be done in a manner that does not adversely affect the continuation of federal funding and options to further maximize federal funding opportunities.

Authorizes a federally recognized Indian tribe located in this state to provide certain child welfare services.

Requires the department of social and health services to give primary preference for performance-based contracts to private nonprofit entities, for the purposes of the provision of child welfare services by supervising agencies under the act.