Ch. 346                                    1996 LAWS OF MARYLAND

(1) machinery or equipment, a replacement part of machinery or
equipment, or a service for the assembly or fabrication of machinery or equipment or
replacement part that:

(i) is capitalized to claim depreciation, using acceptable and
consistent accounting standards;

[(ii) is not used in administration, management, sales, or any other
nonoperational activity;]

[(iii)] (II) at any stage of operation from the handling of raw material or
components on the production activity site to the time the product is ready for delivery or
storage, is used PREDOMINANTLY in a production activity; and

[(iv)] (III) except for a foundation to support other machinery or
equipment or for an item required to conform to an air or water pollution law and
normally considered part of real property, is not installed so that it becomes real
. property; or

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall remain
effective for a period of two one and a half years and, at the end of June 30, 1999 1998,
with no further action required by the General Assembly, this Act shall be abrogated and
of no further force and effect.

SECTION 3... AND BE IT FURTHER ENACTED. That Section 2 of this Act
shall take effect contingent on the taking effect of S.B. 190 of the Acts of the General
Assembly of 1996, and if S.B. 190 does not become effective. Section 2 of this Act shall be
null and void without the necessity of further action by the General Assembly.

SECTION 2. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1996 January 1, 1997.

Approved April 30, 1996.

CHAPTER 346

(Senate Bill 543)

AN ACT concerning

Continuing Care Contracts

FOR the purpose of requiring a provider of continuing care to maintain certain reserves;
requiring approval by the Office on Aging before a change in ownership or sale of
more than a certain percentage of the ownership of a provider or facility; requiring
approval by the Office on Aging before the transfer of assets of a provider in excess
of a certain aggregate percentage within a certain time period; requiring a provider
to issue a disclosure statement to current and prospective subscribers of continuing
care; establishing minimum contents of the disclosure statement; requiring the
provider to hold an annual meeting with resident representatives for a certain

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