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(a) An agency may not place a child in an unlicensed setting if that setting is required to be licensed under AS 47.32. An agency may not place a child in a licensed facility, if the placement would result in the facility being not in compliance with the conditions on the facility’s license. Before placing a child in a foster home, a child placing worker shall check the conditions on the foster home license and the number of children currently in the home to ensure placement of a child does not cause the home to be in violation of the conditions on the foster home’s license. (b) An agency may place a child only in a care setting that either

(1) meets the requirements of (a) of this section; or

(2) has been evaluated under 7 AAC 56.660 and that the agency has found the care setting to be capable of meeting the particular child’s needs. (c) Before placing a child, the agency shall review the child’s needs as identified in 7 AAC 56.320 and 7 AAC 56.340, consider the possible placement settings, and

(1) select the least restrictive setting available;

(2) make active efforts to place children from the same family in the same placement setting;

(3) in the case of Indian child, follow the placement preference requirements of 25 U.S.C. 1915;

(4) give consideration to a placement setting, that will provide permanence for a child; and

(5) select a placement setting that has the capacity to assist in the achievement of the steps and goals of the child’s service plan and plan of care or treatment plan as applicable. (d) Under 42 U.S.C. 1996b an agency may not consider race and ethnicity as part of a child placement decision, except for an Indian child. For placement of an Indian child, ICWA preferences shall govern. (e) Unless prohibited by state or federal law, or unless not in the child’s best interest, when placing a child in foster or residential care, the agency shall

(1) place a child in the least restrictive setting appropriate to meet the child’s needs, which, in order of preference, means

(A) placement with relatives;

(B) foster care where the child has been previously placed, if appropriate;

(C) foster care; and

(D) residential child care;

(2) place a child in close proximity to the home of the child’s parent in order to facilitate