(a) The board of health and welfare is hereby authorized and directed to establish procedures for licensing foster homes, children’s agencies, children’s therapeutic outdoor programs and children’s residential care facilities which are maintained and operated in conformity with the rules and standards authorized herein. Such procedures shall include the manner and form for making application for license, investigation upon application and notice of decision.
(b)  It is recognized that children’s agencies may have their own procedure for approval of foster homes affiliated with their program. Any foster home which has been approved by a licensed children’s agency shall be exempt from the licensing provisions of this chapter, provided that the standards for approval by such agency are no less restrictive than rules and standards established by the board of health and welfare, and provided further that such children’s agency is maintained and operated in conformity with rules and standards of the board of health and welfare. The board of health and welfare may promulgate rules necessary to implement the provisions of this section.
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(c)  The board of health and welfare is hereby authorized to establish rules allowing for continued care for appropriate individuals eighteen (18) to twenty-one (21) years of age who have been receiving services by, through, or with the authorization of the department of health and welfare or the department of juvenile corrections prior to their eighteenth birthday.