(1) When a child who has lived with a grandparent for at least 6 months is placed for adoption, the agency or intermediary handling the adoption shall notify that grandparent of the impending adoption before the petition for adoption is filed. If the grandparent petitions the court to adopt the child, the court shall give first priority for adoption to that grandparent.

(2) This section shall not apply if the placement for adoption is a result of the death of the child's parent and a different preference is stated in the parent's will.

(3) This section shall not apply in stepparent adoptions.