668                                        LAWS OF MARYLAND                                Ch. 286

(a)  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 institution or the expansion of the facility; or

(b)  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 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 carrying 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.

(1)   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 Community 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 Indebtedness
authorized under this Act.

(2)  State funds granted under this Act shall be used in furtherance of public or
nonprofit Community Mental Health Center and Mental Retardation Programs
approved by the State Department of Health and Mental Hygiene and shall be
limited to:

(a)   Where sponsor owns a land site on which it is proposed to construct and
equip a new facility, the State may participate only in the construction costs,
equipment costs and whatever site improvement costs as are deemed necessary;

(b)  Where the sponsor proposes to acquire a land site on which to construct a
new facility, the State may participate in the costs of construction, equipment and
site improvement but not in the cost of the site;

(c)  Where a sponsor proposes to acquire a land site on which a building exists,
capable of renovation, to meet the requirements of the programmed service, the
State may participate in the total costs of the land, site improvements, the cost of
structural renovation, and equipping costs of the existing building.

If within fifteen (15) years after completion of construction the sponsor defaults
in the terms of the grant, the State may exercise its right of recovery of a portion
of the original grant, such portion to be determined on a pro-rata basis in relation
to the years remaining in the fifteen (15) year life of the bonds. This right of
recovery may be waived if the Secretary of Health and Mental Hygiene determines
there is good cause for releasing the sponsor from his obligation.

(3)  Any public or other nonprofit group sponsoring or operating Community
Mental Health Center Components or Mental Retardation Facilities in this State
eligible for a State grant under the provisions of this Act may apply to the
Secretary of Health and Mental Hygiene for a grant toward the cost of the
proposed project. Grants shall be subject to the following limitations: