In this chapter, the following terms have the meanings indicated. Terms Defined. “Act” means Health-General Article, §§24-1401—24-1408, Annotated Code of Maryland, which authorizes the disbursement of State grant funds for the purposes of converting nursing facility beds to provide other health care services determined appropriate by the Department. “Admission criteria” means criteria established by a facility for admitting individuals including limitations, if any. “Applicant” means a county, municipal corporation, or nonprofit organization that has submitted an application. “Application” means the forms required and published by the Department, and submitted by the applicant to the Office of Capital Planning, Budgeting, and Engineering Services, to apply for a State grant for a project. “Board of Public Works” means the Board established by Article XII of the Constitution of Maryland, consisting of the Governor, the Treasurer, and the Comptroller of Maryland. “Building” means all or part of an existing nursing facility; “Capital equipment” means items that: With normal maintenance, have a life expectancy of at least 15 years; Have durable construction; and Are necessary to furnish a new health service not previously provided by the facility. “Construction” means an addition to an existing nursing facility building that results in the reduction of comprehensive care beds and therefore, the provision of other health care services. “Conversion” means the work required to modify or adapt the interior arrangement and other physical characteristics of an existing nursing facility building, in order to transform the facility or part of the facility for uses as stipulated in the annual application instructions. “Default” means: Transfer of property to any person, agency, or organization that would not qualify as an applicant or that is not approved as a transferee by the Board of Public Works; Failure to complete a project and to obtain required occupancy permit; Failure to provide a new health service and commence operation within 1 year after obtaining an occupancy permit; Failure to de-license a specified number of comprehensive nursing home beds; or Failure to provide approved health care service upon which a grant was predicated for a period of 30 years after the completion of project. “Department” means the Maryland Department of Health. “Eligible person” means an individual who meets facility admission criteria. “Eligible work” means that work for which the use of State funds is authorized under the Act. “Facility” means: A facility that meets the definition of Health-General Article, §19-1401(e), Annotated Code of Maryland; A facility that is licensed by the Department; and A nursing facility that is wholly owned by and operated under the authority of: A county or a municipal corporation, or both; or A nonprofit nursing facility that is wholly owned by and operated under the authority of a nonprofit organization. “Grant” means any funds competitively awarded from any source to the applicant including a State grant. “Grantee” means a nursing facility that receives State grant funds under the Act, which are approved by the Board of Public Works. “Nonprofit organization” has the meaning stated in Health-General Article, §24-1401, Annotated Code of Maryland. “Office of Capital Planning, Budgeting, and Engineering Services” means the unit within the Department designated by the Secretary to administer this chapter. “Operating costs” means costs associated with the operation of the new service. “Other health care services” means those health care services determined appropriate by the Department as stipulated in the annual grant application instructions. “Project” means the approved proposed scope of work by the Department for the renovation, construction, and equipping of a facility in order to convert existing nursing facility bed space for other health care services. “Renovation” means restoration or modernization of space that results in the reduction of comprehensive care beds in an existing nursing facility. “Retroactive expenditure” means any cost incurred or contracted for before the application for conversion has been received and approved by the Secretary. “Secretary” means the Secretary of Health, or a designated representative. “State grant” means State funds awarded under the Nursing Facility Conversion Grant Program. “Wholly owned” has the meaning stated in Health-General Article, §24-1401, Annotated Code of Maryland.