(a) The department of family services may, with the approval of the department of health, transfer any resident who becomes mentally incompetent to any appropriate acute placement facility based on a psychiatric evaluation.
(b) The department shall make all rules and regulations necessary and proper for:
(i) Employment, discipline, instruction and education of residents;
(ii) Mental and physical health and welfare of residents;
(iii) Transfer and return of residents; and (iv) Work release for residents who are not subject to home visitation or temporary residence outside the school enclosure.