Ch. 346

1996 LAWS OF MARYLAND

(f) "Entrance fee" means an initial or deferred payment of a sum of money or any
other consideration OTHER THAN A SURCHARGE [which] THAT assures a subscriber [a
place in a facility] CONTINUING CARE for a term of years or for life. An accommodation
fee, admission fee, or other fee of similar form and application shall be considered to be
an entrance fee.

[(g) "Records" means the financial information and personnel data maintained by
the provider for the proper operation of the facility pursuant to this subtitle.]

(G) "EXPANSION" MEANS ANY SINGLE NEW CAPITAL ADDITION, EXCLUDING
RENOVATION AND NORMAL REPAIR AND MAINTENANCE, THAT MEETS EITHER OF
THE FOLLOWING CRITERIA:

(1)     IF INDEPENDENT OR ASSISTED LIVING UNITS ARE TO BE
CONSTRUCTED THEN,, THEN THE NUMBER OF UNITS TO BE CONSTRUCTED MUST BE
LESS THAN OR EQUAL TO 25% OF THE NUMBER OF EXISTING INDEPENDENT AND
ASSISTED LIVING UNITS; OR

(2)     IF INDEPENDENT OR ASSISTED LIVING UNITS ARE NOT TO BE
CONSTRUCTED THEN,, THEN THE TOTAL PROJECTED COST MUST BE AN AMOUNT
THAT IS MORE THAN THE SUM OF:

(I)      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

(II)     THE AMOUNT OF THE EXISTING RESERVES PROPERLY
ALLOCABLE TO, AND SO ALLOCATED FOR, THE EXPANSION.

[(c)] (H) "Facility" means a physical plant in which continuing care is provided in
accordance with this subtitle.

[ (h) "Fiscal year" means the fiscal year of the provider.]

[ (i) "Processing fee" means those costs incurred by the provider in determining
the financial, mental, and physical eligibility of an applicant for entrance into a facility.]

(I) "FINANCIAL DIFFICULTY" MEANS CURRENT OR IMPENDING FINANCIAL
CONDITIONS THAT IMPAIR OR MAY IMPAIR THE ABILITY OF THE PROVIDER TO
MEET EXISTING OR FUTURE OBLIGATIONS.

[(j) "Certified financial statement" means a complete audit prepared and certified
to by an independent certified public accountant.]

(J) "OFFICE" MEANS THE MARYLAND OFFICE ON AGING.

(K) "PERSON" MEANS ANY NATURAL PERSON, FIRM, ASSOCIATION,
CORPORATION, COMPANY, TRUST, PARTNERSHIP, LIMITED LIABILITY COMPANY,
PUBLIC BODY, OR OTHER BUSINESS OR NONPROFIT ENTITY.

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