§42F-103  Standards for the award ofgrants and subsidies.  (a)  Grants and subsidies shall be awarded only toindividuals who, and organizations that:

(1)  Are licensed or accredited, in accordance withfederal, state, or county statutes, rules, or ordinances, to conduct theactivities or provide the services for which a grant or subsidy is awarded;

(2)  Comply with all applicable federal and state lawsprohibiting discrimination against any person on the basis of race, color,national origin, religion, creed, sex, age, sexual orientation, or disability;

(3)  Agree not to use state funds for entertainment orlobbying activities; and

(4)  Allow the state agency to which funds for thegrant or subsidy were appropriated for expenditure, legislative committees andtheir staff, and the auditor full access to their records, reports, files, andother related documents and information for purposes of monitoring, measuringthe effectiveness, and ensuring the proper expenditure of the grant or subsidy.

(b)  In addition, a grant or subsidy may bemade to an organization only if the organization:

(1)  Is incorporated under the laws of the State; and

(2)  Has bylaws or policies that describe the mannerin which the activities or services for which a grant or subsidy is awardedshall be conducted or provided.

(c)  Further, a grant or subsidy may be awardedto a nonprofit organization only if the organization:

(1)  Has been determined and designated to be a nonprofitorganization by the Internal Revenue Service; and

(2)  Has a governing board whose members have nomaterial conflict of interest and serve without compensation.

(d)  If a grant or subsidy is used by an organization for the acquisition of land,when the organization discontinues the activities or services on theland acquired for which the grant or subsidy was awarded and disposes of theland in fee simple or by lease, the organization shall negotiate with theexpending agency for a lump sum or installment repayment to the State of theamount of the grant or subsidy used for the acquisition of the land.  Thisrestriction shall be registered, recorded, and indexed in the bureau ofconveyances or with the assistant registrar of the land court as an encumbranceon the property.  Amounts received from the repayment of a grant or subsidyunder this subsection shall be deposited into the general fund. [L 1997, c 190,pt of §3; am L 2007, c 184, §1]