(a) The Department may place children in group homes and institutions operated by nonprofit or for-profit entities to provide for their care, diagnosis, training, education, and rehabilitation.

(b) (1) The Department shall reimburse the entities described in subsection (a) of this section for the cost of the services at appropriate monthly rates that the Department determines, as provided in the State budget.

(2) The Department may establish different reimbursement rates for homes and institutions that provide intermediate services and homes and institutions that provide full services.

(c) The Department may not place a child in a group home or other residential facility that is not operating in compliance with applicable State licensing laws.