The commissioner shall determine prior to any conversion, the nonprofit entities, if any, that are eligible to receive assets from the converting nonprofit entity. The charitable mission and grant-making functions of each eligible nonprofit entity must:

1. (1) Be dedicated to promoting or serving the health care needs of residents of the State;
2. (2) Not be in direct competition with the converting nonprofit entity; and
3. (3) Be in existence and have qualified for tax-exempt status under Title 26 United States Code section 501(c)(3), (4), (8), (9), (26), or (e), before the transfer of assets.

[L 1998, c 260, pt of §2]