(a) (1) The Department shall provide for the care, diagnosis, training, education, and rehabilitation of children by placing them in group homes and institutions that are operated by for-profit or nonprofit charitable corporations.

(2) Any group home utilized under the provisions of this section shall comply with the provisions of §§ 5-507 through 5-509 of this subtitle and § 7-309 of the Education Article.

(3) The department that licenses the group home shall notify any group home utilized under the provisions of this section of the requirements of § 7-309 of the Education Article.

(b) (1) The Department shall reimburse these corporations for the cost of these services at appropriate monthly rates that the Department determines, as provided in the State budget.

(2) The reimbursement rate may differ between homes and institutions that provide intermediate services, as defined by the Department, and homes and institutions that provide full services.

(c) The Department, or the Department’s designee, may not place a child in a residential group home or other facility that is not operating in compliance with applicable State licensing laws.