A licensed children’s institution at which individuals with exceptional needs reside shall not require as a condition of residential placement that it provide the appropriate educational programs to those individuals through a nonpublic, nonsectarian school or agency owned, operated by, or associated with, a licensed children’s institution. Those services may only be provided if the special education local plan area determines that appropriate public alternative educational programs are not available. A licensed children’s institution shall not refer a pupil to, or place a pupil in, a nonpublic, nonsectarian school.