ROBERT L. EHRLICH, JR., Governor                             Ch. 393

[(22)] (23) State that fees collected by a provider under the terms of a
continuing care agreement may not be used for purposes other than those set forth in
the agreement;

[(23)] (24) Allow a subscriber to designate a beneficiary for receipt of
any refundable portion of the entrance fee, if:

(i) The designation is in writing;

(ii) The designation is witnessed by two or more competent
witnesses;

(iii) The designation is noncontingent; and

(iv) The designation is specified in percentages and accounts for 100
percent of the refund due; and

[(24)] (25) Contain the following statement in boldface type, and in the
largest type used in the agreement: "A preliminary certificate of registration or
certificate of registration is not an endorsement or guarantee of this facility by the
State of Maryland. The Maryland Department of Aging urges you to consult with an
attorney and a suitable financial advisor before signing any documents."

(b)     Except as provided in subsection [(a)(23)] (A)(24) of this section, a
requirement of this section shall not apply to any continuing care agreements entered
into before the effective date of the requirement.

(c)     The provider shall maintain the continuing care agreement on site and
make it available for inspection by the Department of Health and Mental Hygiene
under Title 19, Subtitle 18, of the Health - General Article.

(d)     In addition to any other requirements of this section, if a provider's
continuing care agreement includes a provision to provide assisted living program
services and the provider does not execute a separate assisted living agreement, each
continuing care agreement executed between a subscriber and a provider shall
include with regard to the assisted living program:

(1)     A statement of the level of care for which the assisted living program
is licensed;

(2)     As part of the procedures to be followed under subsection (a)(4) of this
section, if the subscriber is transferred to an assisted living program, the procedures
to be followed by the provider for notifying the subscriber of the level of care needed
by the subscriber;

(3)     A statement indicating the options available to a subscriber if the
subscriber's level of care, after admission to an assisted living program, exceeds the
level of care for which the provider is licensed;

(4)     Based on a sample list of assisted living program services maintained
by the Department of Health and Mental Hygiene, a statement of those services
provided by the assisted living program and those services not provided by the
assisted living program;

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