Recognizes the ability of the Indian tribes within the state to enter into agreements with the state to license agencies located on or near the federally recognized Indian reservation to receive children for control, care, and maintenance outside their own homes, or to place, receive, arrange the placement of, or assist in the placement of children for foster care.

Authorizes the department to enter into written agreements with Indian tribes within the state to define the terms under which the tribe may license agencies.

Provides that the department and its employees are immune from civil liability for damages arising from the conduct of agencies licensed by a tribe.