Whenever the department provides a grant after August 15, 1991, for a pilot program or demonstration project, the department shall do all of the following:
(1) State on the grant application that the funding for the program or project will be provided by the department once or for a limited period of time, whichever is applicable.
(2) Require the applicant to provide, as part of the grant application, a plan that describes:
(a) How activities funded by the grant will be phased out or how the program or project will be eliminated; or (b) What other funding sources will be available to support the program or project when state funding is eliminated.