(a) In this subtitle the following words have the meanings indicated.
(b) “Assisted living program” has the meaning stated in § 19-1801 of the Health - General Article.
(c) “Certified financial statement” means a complete audit prepared and certified by an independent certified public accountant.
(d) “Continuing care” means:
(1) continuing care in a retirement community; or
(2) continuing care at home.
(e) “Continuing care agreement” means an agreement between a provider and a subscriber to provide continuing care.
(f) (1) “Continuing care at home” means providing medical, nursing, or other health related services directly or by contractual arrangement:
(i) to an individual who is at least 60 years of age and not related by blood or marriage to the provider;
(ii) for the life of the individual or for a period exceeding 1 year; and
(iii) under a written agreement that requires a transfer of assets or an entrance fee notwithstanding periodic charges.
(2) “Continuing care at home” includes providing assistance with the physical maintenance of the individual’s dwelling.
(g) “Continuing care in a retirement community” means providing shelter and providing either medical and nursing or other health related services or making the services readily accessible through the provider or an affiliate of the provider, whether or not the services are specifically offered in the written agreement for shelter:
(1) to an individual who is at least 60 years of age and not related by blood or marriage to the provider;
(2) for the life of the individual or for a period exceeding 1 year; and
(3) under one or more written agreements that require a transfer of assets or an entrance fee notwithstanding periodic charges.
(h) (1) “Contractual entrance fee refund” means a repayment of all or part of a subscriber’s entrance fee to the subscriber or the subscriber’s estate or designated beneficiary, as required by the terms of the continuing care agreement.
(2) “Contractual entrance fee refund” does not include a payment required under § 10-446 or § 10-448 of this subtitle.
(i) “Conversion” means converting a physical plant that provides housing or shelter into a facility if:
(1) the residential accommodations exist before a statement of intent is filed under § 10-409(b) of this subtitle; and
(2) at least 60% of the available residential accommodations of the facility owner were occupied during the two fiscal years prior to the filing of a statement of intent.
(j) “Deposit” means a portion of an entrance fee.
(k) (1) “Entrance fee” means a sum of money or other consideration paid initially or in deferred payments, that:
(i) assures a subscriber continuing care for the life of the subscriber or for a period exceeding 1 year; and
(ii) is at least three times the weighted average of the monthly cost of the periodic fees charged for independent living and assisted living units.
(2) “Entrance fee” includes a fee of similar form and application, regardless of title.
(3) “Entrance fee” does not include a surcharge.
(l) (1) “Expansion” means any single new capital addition to an existing facility that meets either of the following criteria:
(i) if independent or assisted living units are to be constructed, the number of units to be constructed is less than or equal to 25% of the number of existing independent and assisted living units; or
(ii) if independent or assisted living units are not to be constructed, the total projected cost exceeds the sum of:
1. 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
2. the amount of the existing reserves properly allocable to, and allocated for, the expansion.
(2) “Expansion” does not include renovation and normal repair and maintenance.
(m) “Facility” means a physical plant in which continuing care in a retirement community is provided in accordance with this subtitle.
(n) “Financial difficulty” means current or impending financial conditions that impair or may impair the ability of a provider to meet existing or future obligations.
(o) “Governing body” means a board of directors, board of trustees, or similar group that ultimately directs the affairs of a provider, but whose members are not required to have an equity interest in the provider.
(p) (1) “Health related services” means services that are needed by a subscriber to maintain the subscriber’s health.
(2) “Health related services” includes:
(i) priority admission to a nursing home or assisted living program; and
(ii) except for the provision of meals, assistance with the activities of daily living.
(q) “Person” includes a governmental entity or unit.
(r) “Processing fee” means a fee imposed by a provider for determining the financial, mental, and physical eligibility of an applicant for entrance into a facility.
(s) “Provider” means a person who:
(1) undertakes to provide continuing care; and
(2) is:
(i) the owner or operator of a facility; or
(ii) an applicant for or the holder of a preliminary, initial, or renewal certificate of registration.
(t) “Records” means information maintained by a provider for the proper operation of a facility under this subtitle.
(u) (1) “Renovation” means any single capital improvement to, or replacement of, all or part of an existing facility that will not increase the number of independent or assisted living units and for which the total projected cost exceeds the sum of:
(i) 20% 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 existing reserves properly allocable to, and allocated for, the renovation.
(2) “Renovation” does not include normal repair or maintenance.
(v) “Subscriber” means an individual for whom a continuing care agreement is purchased.
(w) (1) “Surcharge” means a separate and additional charge that:
(i) is imposed simultaneously with the entrance fee; and
(ii) may be required of some, but not all, subscribers because of a condition or circumstance that applies only to those subscribers.
(2) “Surcharge” does not include a second person entrance fee.