(a) The department shall


(1) implement and administer a program to assist in providing day care for the children of low and moderate income families according to the requirements of AS 47.25.001
- 47.25.095;


(2) establish standards of eligibility for day care benefits;


(3) contract for the care of children of eligible families;


(4) establish procedures to periodically review the needs of families receiving day care benefits;


(5) provide notification to the local government body of the request for a contract with a day care facility.


(b) The department may


(1) adopt regulations necessary for the performance of its duties under AS 47.25.001
- 47.25.095;


(2) contract with other entities to perform duties of the department under AS 47.25.001
- 47.25.095 within an area specified by the department; within an area, the department shall give higher priority to contracting with municipalities than with other organizations.