2336

LAWS OF MARYLAND

[Ch. 417

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

(b)    Prior to the authorization of any
construction grant under this Act for any facility, the
applicant shall file with the State Department of Health
and Mental Hygiene:

(1)    A financial statement setting
forth the personnel employed or to be employed, all
remunerations and perquisites for personal services and
other expenses paid or to be paid and the expenses
incurred or to be incurred in carrying out the operation
of the facility; and

(2)    The schedule of rates charged 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 these rules and regulations shall provide for
certified annual financial statements from each facility,
and other reports as required. This information shall be
required annually for at least the term of the
Certificates of Indebtedness authorized under this Act.

(d)    Any public or nonprofit agency
sponsoring the construction of an eligible facility or
the expansion of an existing eligible facility in this
State may apply to the State Department of Health and
Mental Hygiene for a State grant toward the cost of that
project. The allocation and use of State funds under
this Act shall be governed by and subject to the
following stipulations and limitations:

(1) State funds may be used only for
the construction and equipping of public and other
nonprofit facilities 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.

[[(2) If, at the time of application for
State funds under this Act, federal funds are also
available for this purpose, these federal funds shall be
applied first to the project, in accordance with
applicable federal regulations, and the State grant used