1.  Except as otherwise provided in subsection 3, 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 child must be placed in the least restrictive setting that:

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(a) Most closely approximates a family, taking into consideration sibling attachment;

(b) Allows the Indian child’s special needs, if any, to be met;

(c) Is in reasonable proximity to the Indian child’s home, extended family or siblings; and

(d) Is in accordance with the order of preference established by the Indian child’s tribe or, if the Indian child’s tribe has not established placement preferences, is in accordance with the following order of preference:

(1) A member of the Indian child’s extended family;

(2) A foster home licensed, approved or specified by the Indian child’s tribe;

(3) 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

(4) 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.  Except as otherwise provided in subsection 3, if the parental rights of the Indian child’s parents have been terminated and the Indian child is in need of an adoptive placement, the Indian child shall be placed:

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

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

(1) With a member of the Indian child’s extended family;

(2) With other members of the Indian child’s tribe; or

(3) With other Indian families.

3.  If an Indian child is placed outside of the placement preferences set forth in subsection 1 or 2, the party placing the child shall file a motion requesting that the court make a finding that good cause exists for placement outside of such placement preferences. If the court determines that the moving party has established, by clear and convincing evidence, that there is good cause to depart from the placement preferences under this section, the court may authorize placement in an alternative placement. The court’s determination under this subsection:

(a) Must be in writing and be based on:

(1) The preferences of the Indian child;

(2) The presence of a sibling attachment that cannot be maintained through placement consistent with the placement preferences established by subsection 1 or 2;

(3) 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 under subsection 1 or 2 reside; or

(4) Whether, despite a diligent search, a placement meeting the placement preferences under 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 with which the Indian child’s parent or extended family members maintain social and cultural ties.

(b) Must, in applying the placement preferences under this subsection, give weight to a parent’s request for anonymity if the placement is an adoptive placement to which the parent has consented.

(c) May be informed by but not determined by the placement request of a parent of the Indian child, after the parent has reviewed the placement options, if any, that comply with the placement preferences under this section.

(d) May not be based on:

(1) The socioeconomic conditions of the Indian child’s tribe;

(2) Any perception of the tribal or United States Bureau of Indian Affairs social services or judicial systems;

(3) The distance between a placement meeting the placement preferences under this section that is located on or near a reservation and the Indian child’s parent; or

(4) The ordinary bonding or attachment between the Indian child and a nonpreferred placement arising from time spent in the nonpreferred placement.