ROBERT L. EHRLICH, JR., Governor                             Ch. 394

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Health - General

19-1407.

(a) (1) There is a Health-Care Quality Account established in the
Department.

(2) The Account shall be funded by:

(I) civil money penalties paid by nursing homes [and];

(II) other penalties that the Office of Health Care Quality may
assess; AND

(III) STATE GENERAL FUNDS RECOVERED FROM A THIRD PARTY
LIABILITY AUDIT OF A NURSING HOME, AS AUTHORIZED UNDER SUBTITLE 14A OF
THIS ARTICLE.

(3)     The Department shall pay TO THE COMPTROLLER OF THE STATE;

(I) all penalties collected under this title; AND

(II) ALL STATE GENERAL FUNDS RECOVERED FROM A THIRD PARTY
LIABILITY AUDIT OF A NURSING HOME UNDER SUBTITLE 14A OF THIS ARTICLE [to
the Comptroller of the State].

(4)     The Comptroller shall distribute the funds collected under this title
to the Health-Care Quality Account.

(5) The Account is a continuing nonlapsing fund, not subject to § 7-302 of
the State Finance and Procurement Article.

(6) Any unspent portions of the Account may not be transferred or
reverted to the General Fund of the State, but shall remain in the Account to be used
for the purposes specified in this section.

(b) The Health Care Quality Account shall be used for:

(1)    training[,];

(2)     grant awards[,];

(3) demonstration projects[,];

(4)      ENCOURAGEMENT OF INNOVATIVE PRACTICES;
(5)     LONG-TERM CARE WORKFORCE DEVELOPMENT;
(6)     TESTING THE USE OF NEW TECHNOLOGIES;
(7)   IMPROVING THE SURVEY AND ENFORCEMENT PROCESS; or

(8)     other purposes designed to improve the quality of care.

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