The State of Michigan has a shared responsibility system for licensing Foster Family Homes. It is a system which recognizes the individual needs of each child placing agency as well as the need for uniformity and consistency within the licensing process.

Act No. 116 of the Public Acts of 1973, as amended, enables child placing agencies to have the flexibility to recruit only those foster homes suitable for its clientele and which meet its established service goals. Agencies are allowed, per the act, to conduct necessary on-site inspections and to provide ongoing supervision of its foster family home licenses.

The system enables the Department of Human Services (DHS) to issue licenses and for child placing agencies to investigate foster family home license applicants and to certify that the applicants meet licensing requirements. Authorization to the agency is dependent upon the agency's compliance with specific administrative rules for child placing agencies.