WILLIAM DONALD SCHAEFER, Governor

Ch. 31

(1)     A bona fide religious organization, 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; or

(2)     An organization:

(i) That is chartered as a nonprofit corporation and classified by the
Internal Revenue Service as nonprofit; and

(ii) 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.

(d) "Wholly owned" includes leased, if [the]:

(1)     (i) [Lease] THE LEASE is for a minimum term of 30 years following
project completion; or

(ii) The lease agreement extends the right of purchase to the lessee;
and

(2)     Lessor consents to the recording, in the land records of the political
subdivision in which the facility is located, of a notice of the State's right of recovery, as
provided under § 24-606 of this subtitle; or

(3)     Lease agreement is with the State for a State-owned building OR
STATE-OWNED PROPERTY.

24-606.

(A)     IN ACCORDANCE WITH THIS SECTION, THE STATE SHALL HAVE THE
RIGHT TO RECOVER FUNDS DISBURSED UNDER THIS SUBTITLE.

(B)     IN THE EVENT OF FAILURE TO COMPLETE A PROJECT OR FAILURE TO
COMMENCE OPERATION OF A FACILITY, THE STATE MAY RECOVER FROM THE
RECIPIENT OF THE FUNDS DISBURSED FOR THE PROJECT OR FACILITY OR THE
OWNER OF THE PROPERTY AN AMOUNT EQUAL TO THE AMOUNT OF STATE FUNDS
DISBURSED FOR THE PROJECT, TOGETHER WITH ALL COSTS AND REASONABLE
ATTORNEYS' FEES INCURRED BY THE STATE IN THE RECOVERY PROCEEDINGS.

[(a)] (C) If, within 30 years after completion of a project, a community mental
health facility, addiction facility, or developmental disabilities facility with respect to
which funds have been paid under this subtitle is sold or transferred to any person,
agency, or organization that would not qualify as an applicant under this subtitle, or that
is not approved as a transferee by the Board of Public Works, or if, within the same
period, a community mental health facility, addiction facility, or developmental
disabilities facility ceases to be a "facility" as defined in this subtitle, then the State may
recover from either the transferor or transferee or, in the case of a community mental
health facility, addiction facility, or developmental disabilities facility that has ceased to
be a "facility" as defined in this subtitle, from the owner, an amount bearing the same

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