Ch. 309                                    2003 LAWS OF MARYLAND

(ii) 2 months after the feasibility study is approved by the
Department of Aging, to submit an application for a preliminary certificate that
satisfies the requirements of § 10 of Article 70B of the Annotated Code of Maryland;
and

(iii) 2 months after the Department of Aging issues a preliminary
certificate to submit an application for an initial certificate that satisfies the
requirements of § 11 of Article 70B of the Annotated Code of Maryland.

(2) The Secretary of Aging for good cause may extend the time
requirements of this subsection.

(b) When determining whether a continuing care provider PERSON, whose
existing operations become subject to the Continuing Care Contracts subtitle of
Article 70B of the Annotated Code of Maryland as a result of the Act has met the 65%
presales requirement of Article 70B, § 11(a)(1) of the Annotated Code of Maryland, the
Department of Aging may count the agreements FOR CONTINUING CARE SERVICES
the person entered into before October 1, 2002 AND UP UNTIL THE TIME THE
DEPARTMENT OF AGING ISSUES A PRELIMINARY CERTIFICATE TO THE PERSON, even
if the agreements were not approved in advance by the Department for use as a
continuing care agreement IF:

(1)      THE AGREEMENTS ENTERED INTO AFTER OCTOBER 1, 2002 BUT
BEFORE ISSUANCE OF THE PRELIMINARY CERTIFICATE ARE APPROVED BY THE
DEPARTMENT; AND

(2)      THE AGREEMENTS SPECIFY THAT:

(I)      THE PERSON IS IN THE PROCESS OF APPLYING FOR A
CERTIFICATE OF REGISTRATION FROM THE DEPARTMENT OF AGING; AND

(II)     IF THE PERSON OBTAINS THE CERTIFICATE:

1. THE PERSON WILL OFFER CONTRACTS APPROVED BY THE
DEPARTMENT AS CONTINUING CARE AGREEMENTS TO FUTURE SUBSCRIBERS; AND

2. THE RESIDENT WILL BE ENTITLED TO RESCIND THE
RESIDENT'S EXISTING AGREEMENT AND ENTER INTO A CONTINUING CARE
AGREEMENT APPROVED BY THE DEPARTMENT AS A SUBSTITUTE FOR THE ORIGINAL
AGREEMENT THE RESIDENT ENTERED INTO WITH THE PERSON.

SECTION 2. AND BE IT FURTHER ENACTED, That if a continuing care
provider person, whose existing operations become subject to the Continuing Care
Contracts subtitle of Article 70B of the Annotated Code of Maryland as a result of
Chapter 150 of the Acts of the General Assembly of 2002, demonstrates that, as of
October 1, 2002, the provider person had already completed the site acquisition, site
development, and infrastructure investment intended to support a project planned
before October 1, 2002 that will would expand the number of independent living and
assisted living units at the provider's facility, any remaining portion of that project
may not be considered new development as described in § 9(a) of Article 70B of the
Annotated Code of Maryland, regardless of whether the number of independent and
assisted living units to be constructed in the project exceeds 25% of the total number

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