HARRY HUGHES, Governor

2485

(e) Any public or nonprofit entity or government
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:

(i) 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.

(ii) 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. States grants shall amount to up to 50 percent
of the eligible cost remaining after the federal grant has
been applied. For those projects designated under federal
regulations, State plans, and regulations provided for by
this Act as eligible for poverty area funding, State grants
shall amount to up to 75 percent of the eligible cost
remaining after the federal grant has been approved applied.
In those cases where federal grants are not available,
criteria for determining facilities which are eligible for
special funding because of the impact of poverty areas will
be developed by the Secretary of Health and Mental Hygiene
and approved by the Board of Public Works; and State grants
for those facilities shall not exceed 75 percent of the
total eligible costs.

(iii) The amount of the State grant to be
made for any facility shall be determined after due
consideration of all pending eligible applicants, the total
of unallocated State funds available at the time the
application is received, and such priorities of area need as
may have been established by the State Department of Health
and Mental Hygiene.

(iv) If, at any time within 15 years after
completion of construction, an institution with respect to
which funds have been paid under the provisions of this Act:

1.  Is sold or transferred to any
person, agency, or organization which would not itself
qualify as an applicant under the terms of this Act, or
which is not approved as a transferee by the Secretary of
Health and Mental Hygiene, or

2.  Ceases to be a public or
nonprofit facility, as defined in this Act, then the State
shall be entitled to recover from either the transferor or
transferee or, in the case of an institution which has