Section 374-D. Authority to operate public institutions for children

A
  social services official who is authorized to place children  in  family
  homes  and institutions, pursuant to section three hundred ninety-eight,
  may be authorized by the department to operate public  institutions  for
  children in compliance with regulations of the department, provided that
  such  official  demonstrates  to  the satisfaction of the department the
  need therefor and that suitable care  is  not  otherwise  available  for
  children  under  the  care of such official.  Such institutions shall be
  subject to supervision, visitation and inspection by the department  and
  shall also be subject to visitation and inspection by the board.