Section 10-401 - Definitions.
§ 10-401. Definitions.
(a) In general.- In this subtitle the following words have the meanings indicated.
Revisor's Note.
This subsection formerly was Art. 70B, § 7(a).
No changes are made.
(b) Assisted living program.- "Assisted living program" has the meaning stated in § 19-1801 of the Health - General Article.
Revisor's Note.
This subsection formerly was Art. 70B, § 7(b).
No changes are made.
(c) Certified financial statement.- "Certified financial statement" means a complete audit prepared and certified by an independent certified public accountant.
Revisor's Note.
This subsection formerly was Art. 70B, § 7(c).
No changes are made.
(d) Continuing care.- "Continuing care" means:
(1) continuing care in a retirement community; or
(2) continuing care at home.
Revisor's Note.
This subsection is new language added for clarity.
Defined Terms.
"Continuing care at home" § 10-401
"Continuing care in a retirement community" § 10-401
(e) Continuing care agreement.- "Continuing care agreement" means an agreement between a provider and a subscriber to provide continuing care.
Revisor's Note.
This subsection formerly was Art. 70B, § 7(e).
No changes are made.
Defined Terms.
"Continuing care" § 10-401
"Provider" § 10-401
"Subscriber" § 10-401
(f) Continuing care at home.-
(1) "Continuing care at home" means providing medical, nursing, or other health related services directly or by contractual arrangement:
(i) to an individual who is at least 60 years of age and not related by blood or marriage to the provider;
(ii) for the life of the individual or for a period exceeding 1 year; and
(iii) under a written agreement that requires a transfer of assets or an entrance fee notwithstanding periodic charges.
(2) "Continuing care at home" includes providing assistance with the physical maintenance of the individual's dwelling.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 70B, § 22A(a).
The former introductory language "[i]n this section:" is deleted as unnecessary in light of subsection (a) of this section.
Defined Terms.
"Entrance fee" § 10-401
"Health related services" § 10-401
(g) Continuing care in a retirement community.- "Continuing care in a retirement community" means providing shelter and providing either medical and nursing or other health related services or making the services readily accessible through the provider or an affiliate of the provider, whether or not the services are specifically offered in the written agreement for shelter:
(1) to an individual who is at least 60 years of age and not related by blood or marriage to the provider;
(2) for the life of the individual or for a period exceeding 1 year; and
(3) under one or more written agreements that require a transfer of assets or an entrance fee notwithstanding periodic charges.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 70B, § 7(d) and (r).
In the introductory language of this section, the former phrase "for use by a subscriber" is deleted as surplusage.
The former defined term "[m]aking available either medical and nursing services or other health related services" in former Art. 70B, § 7(r) was only used in the former definition of "[c]ontinuing care" in former § 7(d). The elements of former § 7(r) are incorporated into the revised definition of "[c]ontinuing care in a retirement community" in this subsection.
In this subsection and throughout this subtitle, references to "continuing care in a retirement community" are substituted for former references to "continuing care", where appropriate, to clearly distinguish it from "continuing care at home".
Defined Terms.
"Entrance fee" § 10-401
"Health related services" § 10-401
"Provider" § 10-401
(h) Contractual entrance fee refund.-
(1) "Contractual entrance fee refund" means a repayment of all or part of a subscriber's entrance fee to the subscriber or the subscriber's estate or designated beneficiary, as required by the terms of the continuing care agreement.
(2) "Contractual entrance fee refund" does not include a payment required under § 10-446 or § 10-448 of this subtitle.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 70B, § 7(f).
In paragraph (2) of this subsection, the word "include" is substituted for the former word "mean" to conform to standard language used in definitions throughout other revised articles of the Code.
Defined Terms.
"Continuing care agreement" § 10-401
"Entrance fee" § 10-401
"Subscriber" § 10-401
(i) Conversion.- "Conversion" means converting a physical plant that provides housing or shelter into a facility if:
(1) the residential accommodations exist before a statement of intent is filed under § 10-409(b) of this subtitle; and
(2) at least 60% of the available residential accommodations of the facility owner were occupied during the two fiscal years prior to the filing of a statement of intent.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 70B, § 7(f-1).
In the introductory language of this subsection, the reference to a "physical plant" is substituted for the former reference to a "facility" to avoid confusion with the defined term "facility".
Also in the introductory language of this subsection, the former phrase "the process of taking" is deleted for brevity.
Also in the introductory language of this subsection, the former reference to a "continuing care" facility is deleted as surplusage.
In item (2) of this subsection, the reference to "the filing of a statement of intent" is added for clarity.
Defined Terms.
"Facility" § 10-401
(j) Deposit.- "Deposit" means a portion of an entrance fee.
Revisor's Note.
This subsection formerly was Art. 70B, § 7(i).
No changes are made.
Defined Terms.
"Entrance fee" § 10-401
(k) Entrance fee.-
(1) "Entrance fee" means a sum of money or other consideration paid initially or in deferred payments, that:
(i) assures a subscriber continuing care for the life of the subscriber or for a period exceeding 1 year; and
(ii) is at least three times the weighted average of the monthly cost of the periodic fees charged for independent living and assisted living units.
(2) "Entrance fee" includes a fee of similar form and application, regardless of title.
(3) "Entrance fee" does not include a surcharge.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 70B, § 7(j).
Defined Terms.
"Continuing care" § 10-401
"Subscriber" § 10-401
"Surcharge" § 10-401
(l) Expansion.-
(1) "Expansion" means any single new capital addition to an existing facility that meets either of the following criteria:
(i) if independent or assisted living units are to be constructed, the number of units to be constructed is less than or equal to 25% of the number of existing independent and assisted living units; or
(ii) if independent or assisted living units are not to be constructed, the total projected cost exceeds the sum of:
1. 10% of the total operating expenses, less depreciation, amortization, and interest expense of the facility as shown on the certified financial statement for the most recent fiscal year for which a certified financial statement is available; and
2. the amount of the existing reserves properly allocable to, and allocated for, the expansion.
(2) "Expansion" does not include renovation and normal repair and maintenance.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 70B, § 7(k).
In the introductory language of this subsection, the reference to an addition to "an existing facility" is added for clarity.
Defined Terms.
"Certified financial statement" § 10-401
"Facility" § 10-401
(m) Facility.- "Facility" means a physical plant in which continuing care in a retirement community is provided in accordance with this subtitle.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 70B, § 7(m).
Defined Terms.
"Continuing care in a retirement community" § 10-401
(n) Financial difficulty.- "Financial difficulty" means current or impending financial conditions that impair or may impair the ability of a provider to meet existing or future obligations.
Revisor's Note.
This subsection formerly was Art. 70B, § 7(n).
The only changes are in style.
Defined Terms.
"Provider" § 10-401
(o) Governing body.- "Governing body" means a board of directors, board of trustees, or similar group that ultimately directs the affairs of a provider, but whose members are not required to have an equity interest in the provider.
Revisor's Note.
This subsection formerly was Art. 70B, § 7(p).
No changes are made.
Defined Terms.
"Provider" § 10-401
(p) Health related services.-
(1) "Health related services" means services that are needed by a subscriber to maintain the subscriber's health.
(2) "Health related services" includes:
(i) priority admission to a nursing home or assisted living program; or
(ii) except for the provision of meals, assistance with the activities of daily living.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 70B, § 7(q).
Defined Terms.
"Assisted living program" § 10-401
"Subscriber" § 10-401
(q) Person.- "Person" includes a governmental entity or unit.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 70B, § 7(t).
The reference to a "governmental entity or unit" is substituted for the former reference to a "public body" for clarity and consistency.
The former reference to "any natural person, firm, association, corporation, company, trust, partnership, limited liability company ..., or other business or nonprofit entity" is deleted as included in the definition of "person" in § 1-101 of this article.
Defined Terms.
"Person" § 1-101
(r) Processing fee.- "Processing fee" means a fee imposed by a provider for determining the financial, mental, and physical eligibility of an applicant for entrance into a facility.
Revisor's Note.
This subsection formerly was Art. 70B, § 7(u).
The only changes are in style.
Defined Terms.
"Facility" § 10-401
"Provider" § 10-401
(s) Provider.- "Provider" means a person who:
(1) undertakes to provide continuing care; and
(2) is:
(i) the owner or operator of a facility; or
(ii) an applicant for or the holder of a preliminary, initial, or renewal certificate of registration.
Revisor's Note.
This subsection formerly was Art. 70B, § 7(v).
The only changes are in style.
Defined Terms.
"Continuing care" § 10-401
"Facility" § 10-401
"Person" §§ 1-101, 10-401
(t) Records.- "Records" means information maintained by a provider for the proper operation of a facility under this subtitle.
Revisor's Note.
This subsection formerly was Art. 70B, § 7(x).
The only changes are in style.
Defined Terms.
"Facility" § 10-401
"Provider" § 10-401
(u) Renovation.-
(1) "Renovation" means any single capital improvement to, or replacement of, all or part of an existing facility that will not increase the number of independent or assisted living units and for which the total projected cost exceeds the sum of:
(i) 20% of the total operating expenses, less depreciation, amortization, and interest expense of the facility as shown on the certified financial statement for the most recent fiscal year for which a certified financial statement is available; and
(ii) the amount of existing reserves properly allocable to, and allocated for, the renovation.
(2) "Renovation" does not include normal repair or maintenance.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 70B, § 7(y).
Defined Terms.
"Certified financial statement" § 10-401
"Facility" § 10-401
(v) Subscriber.- "Subscriber" means an individual for whom a continuing care agreement is purchased.
Revisor's Note.
This subsection formerly was Art. 70B, § 7(bb).
No changes are made.
Defined Terms.
"Continuing care agreement" § 10-401
(w) Surcharge.-
(1) "Surcharge" means a separate and additional charge that:
(i) is imposed simultaneously with the entrance fee; and
(ii) may be required of some, but not all, subscribers because of a condition or circumstance that applies only to those subscribers.
(2) "Surcharge" does not include a second person entrance fee.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 70B, § 7(cc).
Defined Terms.
"Entrance fee" § 10-401
"Person" §§ 1-101, 10-401
"Subscriber" § 10-401
[An. Code 1957, art. 70B, §§ 7(a)-(f-1), (i)-(k), (m), (n), (p), (q), (r), (t)-(v), (x), (y), (bb), (cc), 22A(a); 2007, ch. 3, § 2; ch. 503.]