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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0488*
SENATE BILL 488
O2, J3 6lr1077
CF HB 424
By: Senator Lewis Young
Introduced and read first time: February 2, 2026
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Continuing Care in a Retirement Community Providers – Governing Bodies – 2
Membership 3
(Sue Hecht Continuing Care Retirement Community Transparency Act) 4
FOR the purpose of requiring a retirement community provider to include certain 5
information in a certain application and disclosure statement; altering a certain 6
requirement pertaining to the number of regular and alternate members selected to 7
be on the governing body of a continuing care in a retirement community provider; 8
authorizing a resident association, rather than a governing body, to select regular 9
and alternate subscriber members of a governing body; repealing a requirement that 10
a subscriber member be selected according to certain standards and criteria; and 11
generally relating to governing bodies and continuing care in a retirement 12
community providers. 13
BY repealing and reenacting, without amendments, 14
Article – Human Services 15
Section 10–401(a), (d), (m), (o), (s), and (v), 10–411(a) and (b), and 10–425(a)(8) 16
Annotated Code of Maryland 17
(2019 Replacement Volume and 2025 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Human Services 20
Section 10–411(c)(10) and (11), 10–425(a)(4) and (9), and 10–427 21
Annotated Code of Maryland 22
(2019 Replacement Volume and 2025 Supplement) 23
BY adding to 24
Article – Human Services 25
Section 10–411(c)(11) 26
Annotated Code of Maryland 27
(2019 Replacement Volume and 2025 Supplement) 28
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SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Human Services 3
10–401. 4
(a) In this subtitle the following words have the meanings indicated. 5
(d) “Continuing care” means: 6
(1) continuing care in a retirement community; or 7
(2) continuing care at home. 8
(m) “Facility” means a physical plant in which continuing care in a retirement 9
community is provided in accordance with this subtitle. 10
(o) “Governing body” mean s a board of directors, board of trustees, or similar 11
group that ultimately directs the affairs of a provider, but whose members are not required 12
to have an equity interest in the provider. 13
(s) “Provider” means a person who: 14
(1) undertakes to provide continuing care; and 15
(2) is: 16
(i) the owner or operator of a facility; or 17
(ii) an applicant for or the holder of a preliminary, initial, or renewal 18
certificate of registration. 19
(v) “Subscriber” means an individual for whom a continuing care agr eement is 20
purchased. 21
10–411. 22
(a) A provider may not enter into a continuing care agreement until the 23
Department issues a preliminary certificate of registration. 24
(b) An application for a preliminary certificate of registration shall be filed in a 25
form satisfactory to the Department. 26
(c) An application shall include at least the following information: 27
SENATE BILL 488 3
(10) the form and substance of any advertisement, advertising campaign, or 1
other promotional material for the facility that has not been previously submitted to the 2
Department; [and] 3
(11) A COPY OF THE BYLAWS OR SIMILAR INSTRUMENT OR AGREEMENT 4
GOVERNING THE PROVIDER; AND 5
[(11)] (12) other reasonable and pertinent information that the Department 6
requires. 7
10–425. 8
(a) A disclosure statement shall include: 9
(4) the organizational structure and management of the provider, 10
including: 11
(i) for a corporation or limited liability company, its name, the state 12
in which it is incorporated or formed, and the name of the chief executive officer; 13
(ii) for a partnership, the names of the general partners, the state 14
governing its formation, and the name of the primary individual responsible for managing 15
it; 16
(iii) for an unincorporated association, the names of the members, the 17
state governing its activities, and the name of the primary individual responsible for 18
managing it; 19
(iv) for a partnershi p that has a corporation or limited liability 20
company as one or more of its general partners, the name of each corporation or limited 21
liability company, the state in which it is incorporated or formed, and the name of the chief 22
executive officer; 23
(v) for a trust, the name of the trustee, the names of the owners of 24
beneficial interests in the trust, the state governing it, and the name of the primary 25
individual responsible for overseeing its activities; [and] 26
(VI) THE ARTICLES OF INCO RPORATION OR OTH ER FOUNDING 27
INSTRUMENT OF THE PROVIDER, INCLUDING ANY AMENDM ENTS, AND A COPY OF 28
THE BYLAWS OR SIMILAR INSTRUMENT OR AGREEMENT GOVERNING THE PROVIDER; 29
AND 30
[(vi)] (VII) a statement whether the provider is qualified, or intends 31
to qualify, as a tax–exempt organization under the Internal Revenue Code; 32
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(8) a description of the provider’s form of governance and the composition 1
of its governing body, and a statement that the provider will satisfy the requirements of §§ 2
10–426 and 10–427 of this subtitle; 3
(9) if the provider has a governing body, a description of the process used 4
by the provider to: 5
(i) select a subscriber member of its governing body; and 6
(ii) satisfy the requirements of [§ 10 –427(a)] § 10–427(C) of this 7
subtitle; 8
10–427. 9
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 10
INDICATED. 11
(2) “GOVERNING BODY” HAS THE MEANING STAT ED IN § 10–401 OF 12
THIS SUBTITLE. 13
(3) “PROVIDER” MEANS, IN ADDITION TO THE MEANING STATED IN § 14
10–401 OF THIS SUBTITLE, A PERSON WHO EFFECTIVELY CONTROLS THE FINANCIAL 15
AND POLICY DECISIONS IN PROVIDING CONTINUING CARE IN A RETIREMENT 16
COMMUNITY. 17
(B) THE PURPOSE OF A SUBS CRIBER MEMBER OF A G OVERNING BODY 18
SELECTED IN ACCORDANCE WITH THIS SECTION IS TO REPRESENT THE INTERESTS 19
OF THE PROVIDER’S SUBSCRIBERS. 20
[(a)] (C) (1) If a provider has a governing body, at least one of the provider’s 21
subscribers shall be a full and regular member of the governing body. 22
(2) If the provider owns or operates [more than three] MULTIPLE facilities 23
in the State, the governing body shall include: 24
(I) AS A REGULAR MEMBER , ONE OF THE PROVIDER ’S 25
SUBSCRIBERS WHO IS A SUBSCRIBER AT THE FACILITY WITH THE MO ST 26
SUBSCRIBERS; AND 27
(II) AS AN ALTERNATE MEMB ER, at least one of the provider’s 28
subscribers for every three facilities in the State, IF APPLICABLE. 29
(3) (i) If the governing body has only one subscriber, the governing body 30
shall authorize the appointment of an alternate subscriber to serve as a regular member of 31
the governing body if the regular subscriber is unable to fulfill the subscriber’s duties. 32
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(ii) The alternate subscriber may: 1
1. attend all meetings of the governing body; and 2
2. vote only if the regular subscriber is unable to fulfill the 3
subscriber’s duties as a regular member of the governing body. 4
(4) (I) [Subject to paragraph (5) of this subsection, a ] A regular or 5
alternate member of the governing body who is selected to meet the requirements of this 6
subsection shall be a subscriber at a facility in the State and be s elected [according to the 7
same general written standards and criteria used to select other members of the governing 8
body] BY THE RESIDENT ASSOCIATION OF THE FACILITY. 9
(II) A REGULAR OR ALTERNATE MEMBER SEL ECTED IN 10
ACCORDANCE WITH SUBPARAGRAPH (I) OF THIS PARAGRAPH IS NOT REQUIRED TO 11
MEET THE SAME GENERA L WRITTEN STANDARDS AND CRITERIA USED TO SELECT 12
OTHER MEMBERS OF THE GOVERNING BODY , INCLUDING A NY REQUIREMENT TO 13
ADHERE TO A PARTICULAR RELIGIOUS FAITH OR PRINCIPLE. 14
[(5) The governing body shall confer with the resident association at each of 15
the provider’s facilities before the subscriber or alternate subscriber officially joins the 16
governing body.] 17
[(6)] (5) (i) A subscriber member or alternate subscriber member of a 18
governing body may report o n nonconfidential deliberations, actions, and policies of the 19
governing body to the resident association. 20
(ii) The governing body in its sole but reasonable discretion shall 21
determine whether a matter is confidential. 22
[(7)] (6) The Secretary may waive the requirements of this subsection for 23
a provider in the process of decertifying as a provider, if the Secretary determines that 24
there are no subscribers willing and able to serve on the governing body. 25
[(b)] (D) (1) If a provider does not have a gov erning body, the provider shall 26
appoint a select committee of its officers or partners to meet at least quarterly with the 27
resident association at each of its facilities to address concerns of the subscribers and to 28
ensure that the opinions of subscribers are relayed to all officers or partners of the provider. 29
(2) If a facility does not have a resident association, the committee shall 30
meet with a reasonable number of representatives, not required to exceed fifteen, that the 31
subscribers elect. 32
[(c)] (E) As determined by the provider’s governing body, the provider shall 33
make available to subscribers either the nonconfidential portions of the minutes of each 34
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meeting of the governing body or a summary of the nonconfidential portions of the minutes, 1
within 1 month of approval of the minutes. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 3
October 1, 2026. 4