The Department shall proportionately distribute the annual appropriation of Program funds as follows:

(1)    if a county is a qualifying local government, and no municipal corporation in the county is a qualifying local government, the Department shall distribute Program funds to the county based on the county’s share of the State population;

(2)    if a county is a qualifying local government, and a municipal corporation in the county is also a qualifying local government, the Department shall:

(i)    determine the county’s proportionate share of Program funds based on the county’s share of the State population; and

(ii)    from the amount of Program funds determined under item (i) of this item, distribute:

1.    to each qualifying local government in the county that is a municipal corporation, an amount of Program funds based on the municipal corporation’s share of the county population; and

2.    to the county, the balance of the county’s share of Program funds; or

(3)    if a county is not a qualifying local government, but a municipal corporation in the county is a qualifying local government, the Department shall:

(i)    determine the county’s proportionate share of Program funds based on the county’s share of the State population; and

(ii)    distribute to each qualifying local government in the county that is a municipal corporation, a proportionate share of the amount of Program funds determined under item (i) of this item based on the municipal corporation’s share of the county’s population.