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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0424*
HOUSE BILL 424
O2, J3 6lr2382
CF 6lr1077
By: Delegates Kerr, Fair, and Simpson
Introduced and read first time: January 22, 2026
Assigned to: Health
A BILL ENTITLED
AN ACT concerning 1
Continuing Care in a Retirement Community Providers – Governing Bodies – 2
Membership 3
FOR the purpose of altering a certain requirement pertaining to the number of regular and 4
alternate members selected to be on the gover ning body of a continuing care in a 5
retirement community provider; authorizing a resident association, rather than a 6
governing body, to select regular and alternate subscriber members of a governing 7
body; repealing a requirement that a subscriber member be selected according to 8
certain standards and criteria; and generally relating to governing bodies and 9
continuing care in a retirement community providers. 10
BY repealing and reenacting, without amendments, 11
Article – Human Services 12
Section 10–401(a), (d), (m), (o), (s), and (v) and 10–425(a)(8) 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2025 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Human Services 17
Section 10–425(a)(9) and 10–427 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2025 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Human Services 23
10–401. 24
(a) In this subtitle the following words have the meanings indicated. 25
2 HOUSE BILL 424
(d) “Continuing care” means: 1
(1) continuing care in a retirement community; or 2
(2) continuing care at home. 3
(m) “Facility” means a physical plant in which continuing care in a retirement 4
community is provided in accordance with this subtitle. 5
(o) “Governing body” means a board of directors, board of trustees, or similar 6
group that ultimately directs the affairs of a provider, but whose members are not required 7
to have an equity interest in the provider. 8
(s) “Provider” means a person who: 9
(1) undertakes to provide continuing care; and 10
(2) is: 11
(i) the owner or operator of a facility; or 12
(ii) an applicant for or the holder of a preliminary, initial, or renewal 13
certificate of registration. 14
(v) “Subscriber” means an individual for whom a continuing care agreement is 15
purchased. 16
10–425. 17
(a) A disclosure statement shall include: 18
(8) a description of the provider’s form of governance and the composition 19
of its governing body, and a statement that the provider will satisfy the requirements of §§ 20
10–426 and 10–427 of this subtitle; 21
(9) if the provider has a governing body, a description of the process used 22
by the provider to: 23
(i) select a subscriber member of its governing body; and 24
(ii) satisfy the requirements of [§ 10 –427(a)] § 10–427(C) of this 25
subtitle; 26
10–427. 27
HOUSE BILL 424 3
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2
(2) “GOVERNING BODY” HAS THE MEANING STAT ED IN § 10–401 OF 3
THIS SUBTITLE. 4
(3) “PROVIDER” MEANS, IN ADDITION TO THE MEANING STATED IN § 5
10–401 OF THIS SUBTITLE, A PERSON WHO OVERSEES THE FINANCIAL AND POLICY 6
DECISIONS IN PROVIDING CONTINUING CARE IN A RETIREMENT COMMUNITY. 7
(B) THE PURPOSE OF A SUBS CRIBER MEMBER OF A G OVERNING BODY 8
SELECTED IN ACCORDANCE WITH THIS SECTION IS TO REPRESENT THE INTERESTS 9
OF THE PROVIDER’S SUBSCRIBERS. 10
[(a)] (C) (1) If a provider has a governing body, at least one of the provider’s 11
subscribers shall be a full and regular member of the governing body. 12
(2) If the provider owns or operates [more than three] MULTIPLE facilities 13
in the State, the governing body shall include: 14
(I) AS A REGULAR MEMBER , ONE OF THE PROVIDER ’S 15
SUBSCRIBERS WHO IS A SUBSCRIBER AT THE FA CILITY WITH THE MOST 16
SUBSCRIBERS; AND 17
(II) AS AN ALTERNATE MEMB ER, at least one of th e provider’s 18
subscribers for every three facilities in the State, IF APPLICABLE. 19
(3) (i) If the governing body has only one subscriber, the governing body 20
shall authorize the appointment of an alternate subscriber to serve as a regular member of 21
the governing body if the regular subscriber is unable to fulfill the subscriber’s duties. 22
(ii) The alternate subscriber may: 23
1. attend all meetings of the governing body; and 24
2. vote only if the regular subscriber is unable to fulfill the 25
subscriber’s duties as a regular member of the governing body. 26
(4) (I) [Subject to paragraph (5) of this subsection, a ] A regular or 27
alternate member of the governing body who is selected to meet the requirements of this 28
subsection shall be a subscriber at a facility in the State and be selected [according to the 29
same general written standards and criteria used to select other members of the governing 30
body] BY THE RESIDENT ASSOCIATION OF THE FACILITY. 31
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(II) A REGULAR OR ALTERNATE MEMBER SELECTED IN 1
ACCORDANCE WITH SUBPARAGRAPH (I) OF THIS PARAGRAPH IS NOT REQUIRED TO 2
MEET THE SAME GENERA L WRITTEN STANDARDS AND CRITERIA USE D TO SELECT 3
OTHER MEMBERS OF THE GOVERNING BODY , INCLUDING ANY REQUIR EMENT TO 4
ADHERE TO A PARTICULAR RELIGIOUS FAITH OR PRINCIPLE. 5
[(5) The governing body shall confer with the resident association at each of 6
the provider’s facilities before the subscri ber or alternate subscriber officially joins the 7
governing body.] 8
[(6)] (5) (i) A subscriber member or alternate subscriber member of a 9
governing body may report on nonconfidential deliberations, actions, and policies of the 10
governing body to the resident association. 11
(ii) The governing body in its sole but reasonable discretion shall 12
determine whether a matter is confidential. 13
[(7)] (6) The Secretary may waive the requirements of this subsection for 14
a provider in the process of decertifying as a provider, if the Secretary determines that 15
there are no subscribers willing and able to serve on the governing body. 16
[(b)] (D) (1) If a provider does not have a governing body, the provider shall 17
appoint a select committee of its officers or partners to meet at least quarterly with the 18
resident association at each of its facilities to address concerns of the subscribers and to 19
ensure that the opinions of subscribers are relayed to all officers or partners of the provider. 20
(2) If a facility does not hav e a resident association, the committee shall 21
meet with a reasonable number of representatives, not required to exceed fifteen, that the 22
subscribers elect. 23
[(c)] (E) As determined by the provider’s governing body, the provider shall 24
make available to sub scribers either the nonconfidential portions of the minutes of each 25
meeting of the governing body or a summary of the nonconfidential portions of the minutes, 26
within 1 month of approval of the minutes. 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
October 1, 2026. 29