HARRY HUGHES, Governor                                       1281

1.  That is chartered as a nonprofit
corporation and classified by the Internal Revenue Service as
nonprofit; and

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
equipping of a facility in this State may apply to the Department
for a State grant to be applied toward the cost of that project.
The application shall be directed to the Secretary of Health and
Mental Hygiene. On approval of a project and the project plans
by the Department, the Secretary shall promptly report the
application to the Board of Public Works, together with the
Secretary's recommendation that the Board make 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 the
remuneration and perquisities 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 have adopted
regulations to carry out this Act and previous or 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
are subject to the following terms and conditions:

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

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