Ch. 346

1996 LAWS OF MARYLAND

MEETING WITH A RIGHT TO ADDRESS THE GOVERNING BODY SHALL APPOINT A
SELECT COMMITTEE OF ITS MEMBERS TO MEET AT LEAST TWICE ANNUALLY WITH
THE FACILITY'S RESIDENT ASSOCIATION TO ADDRESS CONCERNS OF THE
SUBSCRIBERS AND TO ENSURE THAT THE OPINIONS OF SUBSCRIBERS ARE RELAYED
TO THE GOVERNING BODY. IF A COMMUNITY DOES NOT HAVE A RESIDENT
ASSOCIATION, THE COMMITTEE SHALL MEET WITH A REASONABLE NUMBER OF
REPRESENTATIVES, NOT REQUIRED TO EXCEED FIFTEEN, ELECTED BY THE
SUBSCRIBERS.

11B.

(A)     IN THIS SECTION, "NET OPERATING EXPENSES" MEANS THE PROVIDER'S
TOTAL OPERATING EXPENSES RELATED TO FURNISHING CONTINUING CARE AT
EACH FACILITY OF THE PROVIDER, LESS DEPRECIATION, AMORTIZATION, UNUSUAL
AND INFREQUENT EXPENSES, AND CHANGES IN THE OBLIGATION TO PROVIDE
FUTURE SERVICES. INTEREST EXPENSES MAY BE EXCLUDED FROM CALCULATION
OF NET OPERATING EXPENSES, IF THE PROVIDER HAS FUNDED A DEBT SERVICE
RESERVE OR OTHER INTEREST RESERVE UNDER REQUIREMENTS IMPOSED BY A
FINANCIAL INSTITUTION OR UNDER APPLICABLE FINANCING DOCUMENTS, TO THE
EXTENT AND IN THE AMOUNT THE FUND INCLUDES AMOUNTS TO COVER INTEREST
FOR THE YEAR IN QUESTION.

(B)     EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE PROVIDER
SHALL SET ASIDE FOR EACH FACILITY SUBJECT TO THIS SUBTITLE OPERATING
RESERVES THAT EQUAL 15% OF THE FACILITY'S NET OPERATING EXPENSES FOR
THE MOST RECENT FISCAL YEAR FOR WHICH A CERTIFIED FINANCIAL STATEMENT
IS AVAILABLE. THE RESERVES SHALL BE MAINTAINED IN REASONABLY LIQUID
FORM IN THE JUDGEMENT OF THE PROVIDER.

(C)     THE PROVIDER. SHALL COMPUTE OPERATING RESERVES FOR EACH
FACILITY AS OF THE END OF THE FACILITY'S MOST RECENT FISCAL YEAR AND,
SIMULTANEOUSLY WITH SUBMISSION OF ITS APPLICATION FOR A RENEWAL
CERTIFICATE, SHALL INDICATE COMPLIANCE BY SETTING FORTH IN A LETTER TO
THE OFFICE FROM A CERTIFIED PUBLIC ACCOUNTANT THE AMOUNT ACTUALLY SET
ASIDE OR BY DISCLOSING THE AMOUNT IN A CERTIFIED FINANCIAL STATEMENT.

(D)     A PROVIDER MAY APPLY TOWARD THE RESERVE REQUIRED BY THIS
SECTION ANY RESERVES, OTHER THAN DEBT SERVICE RESERVES, MAINTAINED
UNDER APPLICABLE FINANCING DOCUMENT REQUIREMENTS IF THE RESERVES ARE
AVAILABLE TO THE PROVIDER TO MEET THE FACILITY'S OPERATING EXPENSES.

(E)     FOR THE PURPOSE OF CALCULATING THE PROVIDER'S OPERATING
RESERVES, INVESTMENTS HELD TO THE CREDIT OF THE RESERVES SHALL BE
CALCULATED AT THEIR MARKET VALUE AS OF THE END OF THE PROVIDER'S MOST
RECENT FISCAL YEAR FOR WHICH A CERTIFIED FINANCIAL STATEMENT IS
AVAILABLE

(F)     THE PROVIDER SHALL NOTIFY THE OFFICE IN WRITING
SIMULTANEOUSLY WITH DRAWING ANY AMOUNT FROM THE FUNDS AVAILABLE TO
SATISFY THE OPERATING RESERVE THAT IS REQUIRED BY SUBSECTION (B) OF THIS
SECTION. WITHIN 30 DAYS OF SUCH DRAW, THE PROVIDER SHALL SUBMIT TO THE

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