EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
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Underlining indicates amendments to bill.
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*hb0972*
HOUSE BILL 972
J3 (2lr2273)
ENROLLED BILL
— Health and Government Operations/Finance —
Introduced 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
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
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 2 HOUSE BILL 972
Annotated Code of Maryland 1
(2019 Replacement Volume and 2021 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – Human Services 4
Section 10–458 5
Annotated Code of Maryland 6
(2019 Replacement Volume and 2021 Supplement) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9
Article – Health – General 10
19–114. 11
(d) (2) “Health care facility” does not include: 12
(ii) For the purpose of providing an exception to the requirement for 13
a certificate of need under § 19–120 of this subtitle, a facility to provide comprehensive care 14
constructed by a provider of continuing care, as defined in § 10–401 of the Human Services 15
Article, if: 16
1. Except as provided under § 19–123 of this subtitle, the 17
facility is for the exclusive use of the provider’s subscribers who have executed continuing 18
care agreements, INCLUDING CONTINUING CARE AT HOME AGREEME NTS, and paid 19
entrance fees that are at least equal to the lowest entrance fee charged for an independent 20
living unit [or], an assisted living unit, OR A CONTINUING CARE AT HOME AGREEME NT 21
before entering the continuing care community, regardless of the level of care needed by 22
the subscribers at the time of admission; 23
2. The facility is located on the campus of the continuing care 24
community; and 25
3. The number of comprehensive care nursing beds in the 26
community does not exceed: 27
A. 24 percent of the number of independent living units in a 28
community having less than 300 independent living units; or 29
B. 20 percent of the number of independent living units in a 30
community having 300 or more independent living units; 31
Article – Human Services 32
10–458. 33
HOUSE BILL 972 3
(a) A provider may not provide continuing care at home services until the 1
Department issues a certificate of registration to the provider. 2
(b) An application for a certificate of registration shall: 3
(1) be filed in a form satisfactory to the Department; and 4
(2) include at least the following information: 5
(i) EXCEPT AS PROVIDED I N SUBSECTION (D) OF THIS SECTION, 6
verification that the required number of agreements has been executed and the 7
corresponding deposits collected; 8
(ii) the form and substance of any proposed advertisements, 9
advertising campaigns, or other promotional materials for the program that are available 10
at the time of filing and that have not been filed previously with the Department; 11
(iii) verification that any other license or certificate required by other 12
appropriate State units has been issued to the provider; and 13
(iv) any other information that the Department requires. 14
(c) The Department shall issue a certificate of registration to a provider if the 15
Department determines that: 16
(1) the information and documents submitted with the feasibility study 17
and application for a preliminary certificate of registration are current and accurate or have 18
been updated to make them accurate; 19
(2) EXCEPT AS PROVIDED I N SUBSECTION (D) OF THIS SECTION , the 20
required number of agreements has been executed and the corresponding deposits 21
collected; 22
(3) any other license or certificate required by other appropriate State 23
units has been issued to the provider; 24
(4) the provider has submitted all proposed advertisements, advertising 25
campaigns, and other promotional materials for the program; 26
(5) the form and substance of all advertisements, advertising campaigns, 27
and other promotional materials submitted are not deceptive, misleading, or likely to 28
mislead; and 29
(6) the provider has submitted any other information that the Department 30
required. 31
4 HOUSE BILL 972
(D) SUBSECTIONS (B)(2)(I) AND (C)(2) OF THIS SECTION DO N OT APPLY TO 1
A PROVIDER OF CONTIN UING CARE AT HOME SE RVICES THAT: 2
(1) MEETS ANY RESERVE RE QUIREMENTS ; AND 3
(2) UNTIL THE PROVIDER H AS ENROLLED THE MINI MUM NUMBER OF 4
SUBSCRIBERS NEEDED F OR ITS REVENUES TO E QUAL ITS EXPENSES: 5
(I) HOLDS IN ESCROW THE ENTIRETY OF ALL ENTR ANCE FEES; 6
OR 7
(II) MAINTAINS A SURETY B OND OF $1,000,000 OR AN 8
EQUIVALENT REPLACEME NT SECURITY SUCH AS CASH, IRREVOCABLE LETTERS OF 9
CREDIT, CERTIFICATES OF DEPO SIT, OR TREASURY BILLS . 10
[(d)] (E) If a provider intends to advertise before the Department issues a 11
certificate of registration under subsection (c) of this section, the provider shall submit to 12
the Department any advertisement, advertising campaign, or other promotional materials 13
before using it. 14
[(e)] (F) If a certificate of registration is not issued to a provider within 24 15
months after the Department approves a feasibility study, or a longer time allowed by the 16
Department for good cause shown, the provider shall refund all deposits collected and stop 17
offering continuing care at home services under that application. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October July 1, 2022. 20
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.