(a) An operating permit may be issued by the department to:

1. (1) a local social services district which establishes a day services program;
2. (2) a nonprofit corporation or association; or
3. (3) a private proprietary facility.

(b) No operating permit will be issued for a day services program until the applicant has demonstrated to the satisfaction of the department that:

1. (i) the day services program is operated by an authorized child care agency which holds a current operating permit for 24-hour residential care, issued by the department, and the day services program is to be confined to structures which have been inspected for the residential care permit or, if other structures are used for the day services program, those structures are inspected and meet the same standards; or
2. (ii) the program and structures have been licensed by the Department of Mental Hygiene as a day treatment program and that State agency certifies to the department that the program and structures meet all regulations promulgated by that agency concerning the physical safety, health, protection and nutrition of the children to be served in the day services program; or
3. (iii) the program and structures meet the requirements set forth in the regulations covering the granting of permits to operate a day care center in respect to physical plant, sanitation, safety requirements, nutrition, health services, retention of records and procedures for renewal of permits.
4. (2) The program of services includes at least social casework, group work or family therapy for children and families, psychiatric consultation, diagnosis and evaluation, psychological consultation and testing, health supervision and referral, educational and/or vocational services and other services as required, such as recreational and/or cultural activities, transportation, information and referral. If it can be demonstrated that one or more of these services are not needed by the population served, that service may be waived.
5. (3) The program is operating at least three hours per day and at least four days a week, excluding holidays.
6. (4) The program is under the direction of a qualified psychiatrist, social worker, psychologist, or of a specialist in early childhood or special education, who shall have had at least five years of experience in either special education or child welfare services, or an equivalent combination of experience and training.
7. (5) All professional staff shall be licensed or certified by the appropriate regulatory body.
8. (6) The applicant has made efforts to secure funding from all available sources, including mental health and education funds, and has fulfilled requirements specified by other funding sources as conditions for obtaining such funding. The local government share of the cost of day services may be met in whole or in part by donated private funds, exclusive of in-kind services.
9. (7) The applicant has received appropriate licenses for any portion of the day services program for which a license is required by any State agency or official.

(1)