Section 142.4. Eligible grantees

(a) A municipality that intends to plan, acquire, develop or rehabilitate a public library is eligible to apply for a grant.

(b) The public library for which a municipality applies for a grant shall have a formal, legal relationship with that municipality, either by being a department or unit of local government or through a contract describing mutual obligations and responsibilities.

(c) A municipality, alone or in cooperation with other municipalities, is eligible to apply for a grant for a public library funded by local tax revenue or monies raised by the levy of special taxes to establish or maintain, or both, a public library which directly provides public library service, delegates responsibility for public library service to a board of directors, or delegates responsibility for public library service to a nonprofit corporation.

(d) If a public library serves more than one municipality, the municipalities shall come to mutual agreement and designate one to apply for a grant for that library.

(e) When a public libary is sponsored by a school district or any entity other than a municipality, the municipality where the public library is located may apply for a grant for that public library.

(f) The public library that benefits from the grant shall be receiving State aid under Article III of the Library Code (24 P. S. § § 4301—4304) at the time of the grant application and shall continue to receive State aid for the term of the grant. If the public library did not exist prior to the grant-funded project to acquire, plan, develop or rehabilitate its facility, that newly formed public library is eligible for and may apply to receive State aid under Article III of the Library Code when it opens to the public.