390                              Laws of Maryland                      [Ch. 120

equipping of public and other nonprofit Community Mental Health
Center Components and Mental Retardation Facilities in this State
under the provisions of "Subchapter II—State Mental Retardation
Facilities," Section 2675 et seq. and "Subchapter III—Community
Mental Health Centers," Section 2681 et seq., USCA, Title 42,
Chapter 33, as amended from time to time. Public Community
Mental Health Center Components or Mental Retardation Facilities
for the purposes of this Act shall be interpreted to mean a Com-
munity Mental Health Center Component or Mental Retardation
Facility wholly owned by a county and/or municipality and operated
under such authority. A nonprofit Community Mental Health Center
Component or Mental Retardation Facility wholly owned by a non-
profit organization as defined below and operated under its authority,
provided that the sponsor of a Community Mental Health Center
Component or Mental Retardation Facility to qualify as a nonprofit
organization shall meet the following qualifications:

(1)  Be a bona fide religious organization 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 institu-
tion 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 opera-
tion 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 grant under this act to any
such sponsor, the applicant shall file with the State Department of
Health and Mental Hygiene, a financial statement setting forth the
personnel employed and/or to be employed, all remunerations and
perquisites for personal services and other expenses paid and/or
to be paid and the expenses incurred and/or to be incurred in carry-
ing out such a Community Mental Health Center Component or
Mental Retardation Facility operation.

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

(a)  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 Com-
munity Mental Health Center Component or Mental Retardation
Facility and other reports as required. Such information shall be
required annually for at least the term of the Certificates of Indebted-
ness authorized under this Act.

(b)  Any use of State funds shall be only for the construction,
acquisition and/or renovation and equipping of public and other non-
profit Community Mental Health Center Components or Mental
Retardation Facility and for the purpose of reports, plans and specifi-
cations in connection therewith, and for the purpose of site improve-
ments, surveys and programs in connection therewith, under said
Subchapters II and III, 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 proportionately and in the same manner that