Maryland Department of Aging Section 11C

      (a)      (1)      The provider shall furnish without cost to all prospective subscribers, before payment of any part of the entrance fee or, if earlier, the execution of a continuing care agreement, and annually to all subscribers on request, a disclosure statement for each facility of the provider holding a preliminary certificate of registration or a certificate of registration.

            (2)      The provider shall submit its initial disclosure statement to the Department for review at least 45 days before distributing the statement to any prospective subscribers.

      (b)      (1)      The provider shall revise the disclosure statement annually and file the disclosure statement with the Department within 120 days after the end of the provider's fiscal year.

            (2)      The Department shall review the disclosure statement solely to ensure compliance with this section.

      (c)      The disclosure statement shall include:

            (1)      The name, address, and description of the facility and the name and address of any parent or subsidiary person;

            (2)      The organizational structure and management of the provider, including:

                  (i)      If the provider is a corporation or limited liability company, the name of the corporation or limited liability company, the state in which the corporation is incorporated or the limited liability company is formed, and the name of the chief executive officer;

                  (ii)      If the provider is a partnership, the names of the general partners, the state governing the formation of the partnership, and the name of the primary individual responsible for managing the partnership;

                  (iii)      If the provider is an unincorporated association, the names of the members, the state governing the association's activities, and the name of the primary individual responsible for managing the association;

                  (iv)      If the provider is a partnership having a corporation or limited liability company as one or more of its general partners, the name of the corporation or limited liability company, the state in which the corporation is incorporated or the limited liability company is formed, and the name of the chief executive officer;

                  (v)      If the provider is a trust, the name of the trustee, the names of the owners of the beneficial interests in the trust, the state governing the trust, and the name of the primary individual responsible for overseeing the trust's activities; and

                  (vi)      A statement regarding whether the provider is qualified, or intends to qualify, as a tax-exempt organization under the Internal Revenue Code;

            (3)      A statement regarding any affiliation of the provider with a religious, charitable, or other nonprofit organization, and the extent to which the organization is responsible for the financial and contractual obligations of the provider;

            (4)      A description of all basic fees, including entrance fees, fees for health related services, and periodic fees, collected by the provider from subscribers, setting forth the amount and frequency of the fee changes during each of the previous 5 years. If the facility has been in operation less than 5 years, then the description shall be for each year that it has been in operation;

            (5)      A statement describing provisions that have been or will be made to comply with the operating reserve requirements as described in § 11B of this subtitle, and a general statement regarding the provider's investment policy related to the required reserves, including how often the reserve fund investment is reviewed and by whom;

            (6)      A copy of the most recent certified financial statement obtainable under generally accepted accounting principles;

            (7)      A description of the long-term financing for the facility;

            (8)      If the facility has not reached 85% occupancy of independent living units, a summary of the feasibility study;

            (9)      A cash flow forecast statement for the current and the next 2 fiscal years;

            (10)      The names and occupations of the officers, directors, trustees, managing or general partners, and any other persons with a 10% or greater equity or beneficial interest in the provider, and a description of the financial interest in or occupation with the provider;

            (11)      The name and address of any professional service firm, association, trust, partnership, company, or corporation in which a person identified in item (10) of this subsection has a 10% or greater financial interest and which is anticipated to provide goods, premises, or services to the facility or provider of a value of $10,000 or more within any fiscal year, including a description of the goods, premises, or services and their anticipated cost to the facility or provider. However, the disclosure of salary, wage, or benefit information of employees of the provider is not required;

            (12)      The name of the proposed manager or management company if the facility is or will be managed on a day-to-day basis by a person other than an individual directly employed by the provider, and a description of the business experience, if any, of the manager or company in the operation or management of similar facilities;

            (13)      A description of any matter in which an individual identified in item (10) of this subsection:

                  (i)      Has been convicted of a felony or pleaded nolo contendere to a felony charge, if the felony involved fraud, embezzlement, fraudulent conversion, or misappropriation of property;

                  (ii)      Has been held liable or enjoined in a civil action by final judgment if the civil action involved fraud, embezzlement, fraudulent conversion, or misappropriation as a fiduciary; or

                  (iii)      Has been subject to an effective injunctive or restrictive order of a court of record or, within the past 10 years, had any State or federal license or permit suspended or revoked as a result of an action brought by a governmental agency, arising out of or relating to business activity or health care, including actions affecting a license to operate any facility or service for aging, impaired, or dependent persons;

            (14)      A description of the form of governance of the provider, including the composition of the governing body, and a statement that the provider shall satisfy the requirements of § 11A of this subtitle;

            (15)      If applicable, a description of the conditions under which the provider may be issued a certificate of registration and may use escrowed deposits, and a statement of the amount of the subscriber's deposit that may be used;

            (16)      A summary of the basic services provided or proposed to be provided at the facility under the continuing care agreement, including the extent to which health related services are furnished, that clearly states which services are indicated in the agreement as included in the basic fee or fees and which services are or will be made available at or by the facility at an extra charge;

            (17)      A statement that the provider shall amend its disclosure statement if, at any time, in the opinion of the provider or the Department, an amendment is necessary to prevent the disclosure statement from containing any material misstatement of fact required by this section to be stated in the disclosure statement or omission of a material fact required by this section to be stated in the disclosure statement;

            (18)      A description of any activity involving a renovation or an expansion, whether or not subject to Department review, during the preceding fiscal year or proposed for the current fiscal year;

            (19)      A statement if it is the provider's policy to impose a surcharge on some, but not all, subscribers because of some condition or circumstance and that the surcharge will not be considered part of the entrance fee in the statutory refund under § 15 of this subtitle;

            (20)      A description of the existence and role of the resident association;

            (21)      A description of the internal grievance procedure; and

            (22)      Such other material information concerning the facility or the provider as the Department requires or that the provider wishes to include.

      (d)      The disclosure statement shall contain a cover page that states, in a prominent location and type face, the date of the disclosure statement and that the issuance of a certificate of registration does not constitute approval, recommendation, or endorsement of the facility by the Department, nor is it evidence of, or does it attest to, the accuracy or completeness of the information set out in the disclosure statement.

      (e)      Any amended disclosure statement:

            (1)      Shall be filed with the Department at the same time that it is delivered to any subscriber or prospective subscriber; and

            (2)      Is subject to all the requirements of this subtitle.

      (f)      (1)      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, the disclosure statement shall contain with regard to the assisted living program:

                  (i)      The name and address and a description of each facility that the provider operates;

                  (ii)      A statement regarding the relationship of the provider to other providers or services if the relationship affects the care of the resident;

                  (iii)      A description of any special programming, staffing, and training provided by the program for individuals with particular needs or conditions such as cognitive impairment;

                  (iv)      Notice of:

                        1.      The availability of locks for storage;

                        2.      The availability of locks, if any, for the subscriber's room;

                        3.      The security procedures which the provider shall implement to protect the subscriber and the subscriber's property; and

                        4.      The provider's right, if any, to enter a subscriber's room;

                  (v)      A statement of the obligations of the provider, the subscriber, or the subscriber's agent as to:

                        1.      Arranging for or overseeing medical care;

                        2.      Monitoring the health status of the subscriber;

                        3.      Purchasing or renting essential or desired equipment and supplies; and

                        4.      Ascertaining the cost of and purchasing durable medical equipment;

                  (vi)      An explanation of the assisted living program's complaint or grievance procedure; and

                  (vii)      Notice of any material changes in the assisted living program.

            (2)      The provider shall:

                  (i)      Furnish annually without cost to each subscriber revisions to the disclosure statement provisions under paragraph (1) of this subsection;

                  (ii)      Ensure that each subscriber, or the subscriber's agent, initials the revised disclosure statement to indicate acknowledgment of the revisions; and

                  (iii)      Make available a copy of each initialed disclosure statement for inspection by the Department of Health and Mental Hygiene under Title 19, Subtitle 18, of the Health - General Article.