The director is not required to distribute or guarantee funds, except as provided in section 125.59:

1. 1. To any program which does not meet licensing standards,
2. 2. To any program providing unnecessary, duplicative or overlapping services within the same geographical area, or
3. 3. To any program which has adequate resources at its disposal.

[C79, 81, §125.54] 86 Acts, ch 1001, §14