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Article 2. Care of Children. Sec. 47.14.100. Powers and duties of department over care of child. (a) Subject to (e), (f), and (i) — (m) of this section, the department shall arrange for the care of every child committed to its custody by placing the child in a foster home or in the care of an agency or institution providing care for children inside or outside the state. The department may place a child in a suitable family home, with or without compensation, and may place a child released to it, in writing verified by the parent, or guardian or other person having legal custody, for adoptive purposes, in a home for adoption in accordance with existing law. For a child 16 years of age or older, the department may authorize another transitional living arrangement, including student dormitory residence at a postsecondary educational institution, that adequately meets the child's needs and is designed to assist the child's transition to independent living. (b) The department may pay the costs of maintenance that are necessary to assure adequate care of the child, and may accept funds from the federal government that are granted to assist in carrying out the purposes of this chapter, or that are paid under contract entered into with a federal department or agency. A child under the care of the department may not be placed in a family home or institution that does not maintain adequate standards of care. (c) The department may receive, care for, and make appropriate placement of minors accepted for care for a period of up to six months on the basis of an individual voluntary written agreement between the minor's parent, legal guardian, or other person having legal custody and the department. The agreement must include provisions for payment of fees under AS 44.29.022 to the department for the minor's care and treatment. The agreement entered into may not prohibit a minor's parent, legal guardian, or other person who had legal custody from regaining care of the minor at any time. (d) In addition to money paid for the maintenance of foster children under (b) of this section, the department (1) shall pay the costs of caring for foster children with physical or mental disabilities, including the additional costs of medical care, habilitative and rehabilitative treatment, services and equipment, and special clothing, and the indirect costs of medical care, including child care and transportation expenses; (2) may pay for respite care; in this paragraph, “respite care” means child care for the purpose of providing temporary relief from the stresses of caring for a foster child; and (3) may pay a subsidized guardianship payment under AS 25.23.210 when a foster child's foster parents or other persons approved by the department become court-appointed legal guardians of the child. (e) When a child is removed from a parent's home, the department shall search for an appropriate placement with an adult family member or family friend. A supervisor at the department shall certify in writing in the case file whether the department has searched for an appropriate placement with an adult family member or family friend. If the department has not complied with the search requirements under this subsection, the supervisor shall work to ensure that the department completes the search in the shortest time feasible. The department shall place the child, in the absence of clear and convincing evidence of good cause to the contrary, (1) in the least restrictive setting that most closely approximates a family and that meets the child's special needs, if any; (2) within reasonable proximity to the child's home, taking into account any special needs of the child and the preferences of the child or parent; (3) with, in the following order of preference,