MARVIN MANDEL, Governor                                 2199

and Mental Retardation Facilities in this State.

(a)    Public

Community Rental Health Center Components or Mental
Retardation Facilities for the purpose of this Act shall
be interpreted to mean a Community Mental Health Center
Component or Mental Retardation Facility wholly owned by
a county and/or municipality and operated under such
authority: or a nonprofit Community Mental Health Center
Component or Mental Retardation Facility wholly owned by
a nonprofit 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 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.

(b)    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:
(1) 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; and (2) the schedule of rates charged and/or
to be charged for services rendered.

(c)    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