HARRY HUGHES, Governor                                        2269

2. 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,
the purchase of equipment to be used in the facility, or the
expansion of the facility.

(5)  Any public or other nonprofit entity sponsoring a
project involving the construction, acquisition, renovation, or
equipment of a facility in this State may apply to the Department
for a State grant toward the cost of that project. The
application shall initially be directed to the Secretary of
Health and Mental Hygiene. Upon approval of a project and the
project plans, the Secretary shall promptly report the
application to the Board of Public Works, together with the
Secretary's recommendation that the Board makes funds available
as provided in this Act.

(6)  (a) Before the Department approves any project, the
applicant shall file with the Department:

(i) A statement listing the personnel employed
or to be employed at the facility and showing all remuneration
and perquisites for personal services and all other expenses paid
or to be paid to these personnel, as well as all other expenses
incurred or to be incurred in operating the facility; and

(ii) The schedule of rates charged or to be
charged for services rendered.

(b) Before the Department approves any project, the
Secretary of Health and Mental Hygiene shall adopt regulations to
carry out the intent of this Act and subsequent acts for the same
purposes. Among other things, these regulations shall provide
for certified annual financial statements from each facility and
may provide for other reports. For each facility, this
information shall be required annually for at least the term of
the bonds used to finance any project at that facility.

(7)  The allocation and use of State funds under this Act is
are subject to the following terms and conditions:

(a)  State funds may be used only for the
construction, acquisition, renovation, and equipment equipping of
facilities; for reports, plans, and specifications in connection
therewith; and for site improvements, surveys, and programs in
connection therewith.

(b)  (i) Any federal grant that is available for this
purpose shall be applied first to the cost of construction,
acquisition, renovation, and equipment of a facility.

(ii) A State grant shall provide up to 50
percent of the eligible cost remaining after the federal grant
has been applied.