EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0972*
HOUSE BILL 972
J3 2lr2273
CF SB 804
By: Delegate Kelly Delegates Kelly, Bagnall, Belcastro, Bhandari, Carr, Chisholm,
Cullison, Hill, Johnson, Kaiser, Kerr, Kipke, Krebs, Landis, R. Lewis,
Morgan, Reilly, Rosenberg, Saab, Szeliga, and K. Young
Introduced and read first time: February 10, 2022
Assigned to: Health and Government Operations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 7, 2022
CHAPTER ______
AN ACT concerning 1
Continuing Care at Home – Certificate of Need – Exemption 2
FOR the purpose of providing that the definition of a health care facility, for the purpose of 3
providing an exemption from the certificate of need requirement, does not include 4
certain facilities that are for the exclusive use of the provider’s subscribers who have 5
executed continuing care at home agreements and paid certain entrance fees; 6
establishing an exception to certain application requirements for certain continuing 7
care at home providers; and generally relating to continuing care at home and 8
exemptions to certificate of need. 9
BY repealing and reenacting, with amendments, 10
Article – Health – General 11
Section 19–114(d)(2)(ii) 12
Annotated Code of Maryland 13
(2019 Replacement Volume and 2021 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Human Services 16
Section 10–458 17
Annotated Code of Maryland 18
(2019 Replacement Volume and 2021 Supplement) 19
2 HOUSE BILL 972
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Health – General 3
19–114. 4
(d) (2) “Health care facility” does not include: 5
(ii) For the purpose of providing an exception to the requirement for 6
a certificate of need under § 19–120 of this subtitle, a facility to provide comprehensive care 7
constructed by a provider of continuing care, as defined in § 10–401 of the Human Services 8
Article, if: 9
1. Except as provided under § 19–123 of this subtitle, the 10
facility is for the exclusive use of the provider’s subscribers who have executed continuing 11
care agreements, INCLUDING CONTINUING CARE AT HOME AGREEMENTS , and paid 12
entrance fees that are at least equal to the lowest entrance fee charged for an independent 13
living unit [or], an assisted living unit, OR A CONTINUING CARE AT HOME AGREEMENT 14
before entering the continuing care community, regardless of the level of care needed by 15
the subscribers at the time of admission; 16
2. The facility is located on the campus of the continuing care 17
community; and 18
3. The number of comprehensive care nursing beds in the 19
community does not exceed: 20
A. 24 percent of the number of independent living units in a 21
community having less than 300 independent living units; or 22
B. 20 percent of the number of independent living units in a 23
community having 300 or more independent living units; 24
Article – Human Services 25
10–458. 26
(a) A provider may not provide continuing care at home services until the 27
Department issues a certificate of registration to the provider. 28
(b) An application for a certificate of registration shall: 29
(1) be filed in a form satisfactory to the Department; and 30
(2) include at least the following information: 31
HOUSE BILL 972 3
(i) EXCEPT AS PROVIDED I N SUBSECTION (D) OF THIS SECTION, 1
verification that the required number of agreements has been executed and the 2
corresponding deposits collected; 3
(ii) the form and substance of any proposed advertisements, 4
advertising campaigns, or other promotional materials for the program that are available 5
at the time of filing and that have not been filed previously with the Department; 6
(iii) verification that any other license or certificate required by other 7
appropriate State units has been issued to the provider; and 8
(iv) any other information that the Department requires. 9
(c) The Department shall issue a certificate of registration to a provider if the 10
Department determines that: 11
(1) the information and documents submitted with the feasibility study 12
and application for a preliminary certificate of registration are current and accurate or have 13
been updated to make them accurate; 14
(2) EXCEPT AS PROVIDED I N SUBSECTION (D) OF THIS SECTION , the 15
required number of agreements has been executed and the corresponding deposits 16
collected; 17
(3) any other license or certificate required by other appropriate State 18
units has been issued to the provider; 19
(4) the provider has submitted all proposed advertisements, advertising 20
campaigns, and other promotional materials for the program; 21
(5) the form and substance of all advertisements, advertising campaigns, 22
and other promotional materials submitted are not deceptive, misleading, or likely to 23
mislead; and 24
(6) the provider has submitted any other information that the Department 25
required. 26
(D) SUBSECTIONS (B)(2)(I) AND (C)(2) OF THIS SECTION DO N OT APPLY TO 27
A PROVIDER OF CONTINUING CARE A T HOME SERVICES THAT : 28
(1) MEETS ANY RESERVE RE QUIREMENTS ; AND 29
(2) UNTIL THE PROVIDER H AS ENROLLED THE MINI MUM NUMBER OF 30
SUBSCRIBERS NEEDED F OR ITS REVENUES TO E QUAL ITS EXPENSES : 31
4 HOUSE BILL 972
(I) HOLDS IN ESCROW THE ENTIRETY OF ALL ENTR ANCE FEES; 1
OR 2
(II) MAINTAINS A SURETY B OND OF $1,000,000 OR AN 3
EQUIVALENT REPLACEME NT SECURITY SUCH AS CASH, IRREVOCABLE LETTERS OF 4
CREDIT, CERTIFICATES OF DEPO SIT, OR TREASURY BILLS . 5
[(d)] (E) If a provider intends to advertise before the Department issues a 6
certificate of registration under subsection (c) of this section, the provider shall submit to 7
the Department any advertisement, advertising campaign, or other promotional materials 8
before using it. 9
[(e)] (F) If a certificate of registration is not issued to a provider within 24 10
months after the Department approves a feasibility study, or a longer time allowed by the 11
Department for good cause shown, the provider shall refund all deposits collected and stop 12
offering continuing care at home services under that application. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
October 1, 2022. 15
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.