Marvin Mandel, Governor                         385

municipality and operated under such authority. A nonprofit nursing
home for the purposes of this Act shall be interpreted to mean a
nursing home wholly owned by a nonprofit organization as defined
below and operated under its authority, provided that the sponsor of
a nursing home to qualify as a nonprofit organization shall meet the
following qualifications:

(1)   Be a bona fide religious organization and no part of the earn-
ings shall inure to the benefit of any individual or be used for any
purpose other than the maintenance and operation of the institution
or the purchase of equipment to be used in the institution or the
expansion of the facility; or

(2)   Be an organization chartered as a nonprofit corporation and
no part of the earnings shall inure to the benefit of any individual
or be used for any purpose other than the maintenance and operation
of the institution or the purchase of equipment to be used in the
institution or the expansion of the facility, and shall be classified
by the Federal Internal Revenue Service as nonprofit.

Prior to the authorization of any construction grant under this
Act to any such sponsor, the applicant shall file with the State
Department of Health and Mental Hygiene,

(i) A financial statement setting forth the personnel employed
and/or to be employed, all remunerations and perquisites for per-
sonal services and other expenses paid and/or to be paid and the
expenses incurred and/or to be incurred in carrying out such a nurs-
ing home operation.

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

The Secretary of Health and Mental Hygiene is hereby authorized
and directed to promulgate rules and regulations to carry out the
intent of this Act and such rules and regulations shall provide for
certified annual financial statement from each such nursing home
and other reports as required. Such information shall be required
annually for at least the term of the Certificates of Indebtedness
authorized under this Act.

(b)  Any use of State funds shall be only for the construction and
equipping of public and other nonprofit nursing homes and for the
purpose of reports, plans and specifications in connection therewith,
and for the purpose of site improvements, surveys and programs in
connection therewith, as specified under said Subchapter IV, as
amended from time to time. In the event of default of the terms of
these grants by the sponsor, State grants shall be recovered pro-
portionately and in the same manner that Federal funds are re-
covered under the provisions of said Subchapter IV, as amended from
time to time.

(c)  Any public or other nonprofit group sponsoring or operating
a nursing home in this State which is eligible for a Federal grant
under said Subchapter IV, as amended from time to time, may
petition the State Department of Health and Mental Hygiene for a
grant toward the cost of the same project. Grants shall be subject to
the following limitations:

(1) All Federal grants available for this purpose shall be applied
first to the cost of construction and equipment of each nursing home.