WILLIAM DONALD SCHAEFER, Governor Ch. 228

2. No part of the earnings of which inures to the benefit of any
individual or is used for any purpose other than the maintenance and operation of the
facility, the purchase of the equipment to be used in the facility, or the expansion of the
facility.

(e) "Nursing home" means a home for the accommodation of
convalescents or other persons who are not acutely ill or in need of hospital care, but
who require skilled or long-term nursing care and other related medical services.

(f) "Secretary" means the Secretary of Health and Mental Hygiene.

(5) Any public or other nonprofit entity sponsoring a project involving the
construction, expansion, renovation, or equipping of a facility in this State may apply to
the Department for a State grant to be applied toward the cost of that project. The
application shall be directed to the Secretary. On approval of a project and the project
plans by the Department, the Secretary shall promptly report the application to the
Board of Public Works, together with the Secretary's recommendation that the Board of
Public Works make funds available as provided in this Act.

(6) (a) Before the Department approves any project, the applicant shall file
with the Department:

(i) ' A statement listing the personnel employed or to be employed at
the facility and showing all remuneration and perquisites for personnel services and all
other expenses paid or to be paid to these personnel, as well as all other expenses
incurred or to be incurred in operating the facility; and

(ii) The schedule of rates charged or to be charged for services
rendered.

(b) Before the Department approves any project, the Secretary shall have
adopted regulations 19 carry out this Act and previous or subsequent acts for the same
purposes. Among other things, these regulations shall provide for certified annual
financial statements from each facility and may provide for other reports. For each
facility, this information shall be required annually for at least the term of the bonds
used to finance any project at the facility.

(7) The allocation and use of State funds under this Act are subject to the
following terms and conditions:

(a) State funds may be used only for the construction, expansion,
renovation, and equipping of facilities, including the reports, plans, specifications, site
improvements, surveys, and programs in connection therewith.

(b) (i) Any federal grant that is available for this purpose shall be
applied first to the cost of construction, renovation, or equipping of a facility.

(ii) A State grant shall provide up to 50 percent of the eligible cost
remaining after the federal grant has been applied.

(iii) For projects designated under federal regulations, State plans, or
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