Sec. 29. "Child caring institution", for purposes of section 82(3) of this chapter and IC 12-26, means an institution that:
(1) operates under a license issued under IC 31-27;
(2) provides for delivery of mental health services that are appropriate to the needs of the individual; and
(3) complies with the rules adopted under IC 4-22-2 by the department of child services.