(a) Parents or guardians shall select the child care facility for the care of their children.
(b) Benefits shall be paid by the department directly to the municipality or organization contracting with the child care facility.
(c) The department shall use a market rate study or a cost of care study to establish a subsidy rate for each region served by the program established under AS 47.25.001. The department shall use the subsidy rate to determine the amount of benefits payable by the department under (b) of this section.