(1) The department shall not make a grant under section 12(1)(a) unless all of the following conditions are met:

    (a) The applicant files an application for the grant on or before December 31 of the calendar year immediately preceding the year in which the grant is made.

    (b) The applicant demonstrates to the department the capability to carry out the county plan.

    (c) The applicant demonstrates to the department that it has not completed its monumentation and remonumentation plan described in section 8(2)(a).

    (2) The department shall make a grant under section 12(1)(c) if the applicant demonstrates to the department that it has completed its monumentation and remonumentation plan described in section 8(2)(a) or if the applicant voluntarily chooses to proceed to the program described in section 8(2)(d).