The department of behavioral healthcare, developmental disabilities and hospitals is hereby authorized:

(1)  To develop jointly with the federal government through its appropriate agency or instrumentality, a plan or plans for the purpose specified in § 40.1-1.1-1 and to make rules and regulations as may be necessary or desirable for the administration of plans and the provisions of this chapter;

(2)  To receive and expend in accordance with those plans any funds made available to the department by the federal government, the state, or its political subdivision for that purpose;

(3)  To develop services and to provide encouragement in assistance of adequate methods of treatment of psychiatric disorders in accordance with those plans.