AZ SB1566

Establishes exclusive jurisdiction for Indian tribes over child custody proceedings involving Indian children residing or domiciled on tribal reservations, with transfers required for off-reservation cases unless a parent or tribe objects.

Requires notice by registered mail to parents, Indian custodians, and tribes at least ten days before any foster care placement or parental rights termination proceeding, with court-appointed counsel available for indigent parties.

Sets higher evidentiary standards requiring clear and convincing evidence for foster care placements and evidence beyond a reasonable doubt for termination of parental rights, with mandatory active efforts to prevent family separation.

Establishes placement preferences prioritizing Indian child extended family, tribal foster homes, Indian foster homes, and Indian institutions, with tribes able to set alternative preference orders by resolution.

Allows parents and Indian custodians to withdraw consent to foster care placement at any time and to challenge adoptions within two years on grounds of fraud or duress, with provisions for return of custody to biological parents.