Section 303. Determination of Capacity; Type of Persons Received.--With regard to State institutions, the department shall have the power and its duty shall be:
(1) To determine the capacity of such institutions;
(2) Except as otherwise provided by law, to determine and designate the type of persons to be received by such institutions, the proportion of each type to be received therein and the districts from which persons shall be received by such institutions.