(1) The Department of Human Services may, in its discretion, accept custody of children and may provide care, support and protective services for children who are dependent or neglected, who have mental or physical disabilities or who for other reasons are in need of public service.
(2) The department shall accept any child placed in its custody by a court under, but not limited to ORS chapter 419B or 419C, and shall provide such services for the child as the department finds to be necessary.
(3) All children in the legal custody of the department who, in the judgment of the Director of Human Services or the authorized representative for the director are in need of care or treatment services, may be placed with any person or family of good standing or any child caring agency for such services under an agreement pursuant to ORS 418.027.