ROBERT L. EHRLICH, JR., Governor

Ch. 146

Annotated Code of Maryland

(2000 Replacement Volume and 2003 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Health - General

24-606.                                                                                                                             

(a)      In accordance with this section, the State:                                                 

(1)       [shall] SHALL have the right to recover funds disbursed under this
subtitle; AND

(2)      MAY NOT:

(I)       RECOVER FUNDS DISBURSED UNDER THIS SUBTITLE FROM
THE FEDERAL GOVERNMENT IF THE FEDERAL GOVERNMENT IS THE LESSOR OF
REAL PROPERTY ON WHICH A PROJECT IS CONSTRUCTED OR A FACILITY IS
OPERATED; OR

(II)     CREATE A LIEN AGAINST REAL PROPERTY THAT IS LEASED
FROM THE FEDERAL GOVERNMENT ON WHICH A PROJECT IS CONSTRUCTED OR A
FACILITY IS OPERATED.

(b)      [In] SUBJECT TO SUBSECTION (A)(2) OF THIS SECTION, IN the event of
failure to complete a project or failure to commence operation of a facility, the State
may recover from the recipient of the funds disbursed for the project or facility or the
owner of the property an amount equal to the amount of State funds disbursed for the
project, together with all costs and reasonable attorneys' fees incurred by the State in
the recovery proceedings.

(c)       [If,] SUBJECT TO SUBSECTION (A)(2) OF THIS SECTION, IF, within 30 years
after completion of a project, a community mental health facility, addiction facility, or
developmental disabilities facility with respect to which funds have been paid under
this subtitle is sold or transferred to any person, agency, or organization that would
not qualify as an applicant under this subtitle, or that is not approved as a transferee
by the Board of Public Works, or if, within the same period, a community mental
health facility, addiction facility, or developmental disabilities facility ceases to be a
"facility" as defined in this subtitle, then the State may recover from either the
transferor or transferee or, in the case of a community mental health facility,
addiction facility, or developmental disabilities facility that has ceased to be a
"facility" as defined in this subtitle, from the owner, an amount bearing the same
ratio to the then current fair market value of so much of the property as constituted
an approved project as the amount of the State participation bore to the total eligible
cost of the approved project, together with all costs and reasonable attorneys' fees
incurred by the State in the recovery proceedings.

(d)      (1) The Department shall cause notice of the State's right of recovery to
be recorded in the land records of the county or Baltimore City in which the property
is located before the State makes any funds available for the approved project.

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