(a)    For fiscal year 2001 and each fiscal year thereafter, to be considered for funding under this subtitle, an educational institution must qualify as a State-aided educational institution under this subtitle.

(b)    To qualify as a State-aided educational institution, an educational institution shall submit to the Department the following documentation:

(1)    The names of the members of an independent governing board for the institution;

(2)    Proof of status as a nonprofit organization;

(3)    A copy of the most recent independent annual audit or copies of the most recent internally generated financial statements until the annual audit is available;

(4)    A detailed operating budget that:

(i)    For an educational institution other than the Baltimore Zoo, indicates that less than 50% of the operating budget comes from State grants;

(ii)    Specifies all sources of income, including grants received, names of granting agencies, and the amount of each grant; and

(iii)    Specifies all expenditures;

(5)    Plans for the use of any grant funds that may be awarded by the State-aided educational institutions grants programs;

(6)    Evidence of the provision of a direct service to Maryland school groups or to individuals with disabilities, including:

(i)    Data on age levels of students to be served;

(ii)    Data on the projected number of students and teachers to be served both statewide and by local jurisdiction; and

(iii)    Plans of the institution to support the goals of the Maryland Schools for Success Program and the Maryland School Performance Program; and

(7)    Evidence of liability insurance coverage.