On and after July 1, 1997, within the limits of funds appropriated therefor and any grants or funds received from any agency of the United States government, and other sources, the commissioner of juvenile justice may establish, maintain and improve throughout the state supplemental youth care facilities for children who are juvenile offenders and who are confined in institutions, for the purpose of providing treatment and rehabilitation services for the children. All children placed in supplemental youth care facilities shall be subject to laws applicable to juvenile offenders who are placed in any other juvenile correctional facility, as defined by Kan. Stat. Ann. § 38-2302, and amendments thereto. The commissioner may adopt rules and regulations relating to the operation and management of any supplemental youth care facility established pursuant to this section.