(a) These regulations apply to a local governmental unit which elects to participate in the community based service system for children with serious emotional disturbance.

(b) These regulations apply to a provider of services which has contracted with a local governmental unit to provide community based services to children with serious emotional disturbance.

(c) These regulations apply to the establishment and operation of a local interagency group. Such interagency group is to be responsible for monitoring the community based system of services, identifying gaps in the service system, recommending the development of services where appropriate and providing technical assistance to the member agencies. An existing interagency group which is able to perform these functions may be appropriate. This group shall be advisory to the local governmental unit with responsibility for the provision of mental health services.