(a) The executive commissioner may adopt rules relating to:
(1) the services that may be furnished under the program;
(2) a system of priorities regarding the types of services provided, geographic areas covered, or classes of individuals or communities targeted for services under the program; and
(3) a process for resolving conflicts between the department and a program receiving money under this subchapter.
(b) Executive commissioner or department actions relating to service, geographic, and other priorities shall be based on the set of priorities and guidelines established under this section.

(c) In structuring the program and adopting rules, the department and the executive commissioner, as appropriate, shall attempt to:
(1) coordinate the use of federal, local, and private funds;
(2) encourage the provision of community-based services;
(3) address needs that are not met by other sources of funding;
(4) provide funding as extensively as possible across the regions of the state in amounts that reflect regional needs; and
(5) encourage cooperation among local service providers.