SPIRO T. AGNEW, Governor                      1019

Sec. 2. And be it further enacted, That new Section 568A of
Article 43 of the Annotated Code of Maryland (1965 Replacement
Volume), title "Health," subtitle "Maryland Hospital Commission,"
be, and hereby is, enacted to read as follows:

568 A.

After July 1, 1968 all of the functions, powers, and duties here-
tofore assigned to the Maryland Hospital Commission shall be vested
in the Department of Health. The Department of Health is hereby
substituted, in place of the Hospital Commission, in any and all
instruments, contracts, and agreements heretofore executed by the
Commission. Such substitution shall be effective as a written assign-
ment of all rights and privileges inuring to the benefit of the Com-
mission and shall give the Department the right to enforce such
contract or agreement according to its terms.

Sec. 3. And be it further enacted, That Sections 568B and 568D
of the Annotated Code of Maryland (1965 Replacement Volume),
title "Health," subtitle "Maryland Hospital Commission," be, and
hereby are, repealed and re-enacted, with amendments, to read as
follows:

568B. Powers and duties of [Commission] Department of Health;
procedure for granting State loan funds.

(a)   The [Maryland Hospital Commission] Department of Health
has, generally, the duty and responsibility of administering matters
and problems of hospital construction under this program and of
any State funds hereunder, provided for the construction, expansion,
replacement, relocation or modernization of hospital buildings, facili-
ties and equipment, for voluntary nonprofit hospitals in this State.
For this purpose, the [Commission] Department has the responsi-
bility and authority to receive and examine, and to approve or dis-
approve applications from voluntary nonprofit hospitals for loans to
be made from State funds for the construction, expansion, reloca-
tion or modernization of hospital buildings, facilities and equipment
belonging to and used by voluntary nonprofit hospitals in this State.
The approval or disapproval of loans so requested by the several
hospitals shall be submitted by the [Commission] Department to
the Board of Public Works. Any such approval or disapproval,
together with any recommendations made to the Board of Public
Works by the [Commission] Department are only for the considera-
tion of the Board of Public Works, and are not binding upon the
Board of Public Works. The [Maryland Hospital Commission]
Department of Health shall not consider any application from any
voluntary nonprofit hospital if the purpose of such application is to
obtain funds for refinancing an existing loan. This shall not prohibit
the submission of an application in those cases where the term of
an existing loan has expired and there is a necessity for new finan-
cing for the balance.

(b)   In the performance of its duties and responsibilities in rela-
tion to such State loans, the [Maryland Hospital Commission] De-
partment of Health shall give general consideration to the current
status and operations of voluntary nonprofit hospitals throughout
the State, and shall study and consider also plans and needs con-
cerning the adequacy of hospital facilities throughout the State. In