CMS will approve an application from a State for a State system if--
(a) The system was in effect prior to April 20, 1983 under an existing demonstration project; and
(b) The minimum requirements and assurances for approval of a State system are met under Sec. 403.304 (b)(1)-(10) and Sec. 403.304(c), and, if appropriate Sec. 403.304(d).