(a) who have been diagnosed as severely emotionally disturbed;

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(b) who have exhausted existing available treatment resources or services;

(c) whose severity of emotional, mental, or behavioral disturbance requires a comprehensive and organized system of care.

(2) Priority in the selection of clients must be based on criteria to be established by the Continuum of Care.

(B) Before a court refers a child to the Continuum of Care, it must be given the opportunity to evaluate the child and make a recommendation to the court regarding:

(1) the child’s suitability for placement with the Continuum of Care pursuant to the provisions of this article, related regulations, and policies and procedures of administration and operation;

(2) the agencies which offer services most appropriate to meet the child’s needs and the proportionate share of the costs among the agencies to meet those needs;

(3) the necessity of obtaining other services for the child if the services provided in item (2) are not available through the existing service delivery system.