Continuing Care Retirement Communities - Refunds

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0560*

SENATE BILL 560
O2, J3 6lr2358

By: Senator Sydnor
Introduced and read first time: February 4, 2026
Assigned to: Finance

A BILL ENTITLED

AN ACT concerning 1

Continuing Care Retirement Communities – Refunds 2

FOR the purpose of requiring a provider of a continuing care retirement community to pay 3
any contractual entrance fee refund within a certain time after a continuing care 4
agreement is termina ted; and generally relating to continuing care retirement 5
communities. 6

BY repealing and reenacting, with amendments, 7
Article – Human Services 8
Section 10–449 9
Annotated Code of Maryland 10
(2019 Replacement Volume and 2025 Supplement) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Human Services 14

10–449. 15

(a) A continuing care agreement shall allow a subscriber to terminate the 16
agreement by giving a written termination notice to the provider. 17

(b) If a continuing care agreement is terminated by the subscriber’s election or 18
death within the first 90 days of occupancy, the provider shall pay any contractual entrance 19
fee refund within 30 days after the earlier to occur of: 20

(1) the recontracting of the subscriber’s unit by: 21

(i) another subscriber for whom an entrance fee has been paid; or 22

2 SENATE BILL 560

(ii) another party who is not a subscriber; or 1

(2) the later to occur of: 2

(i) the 90th day after the date the written termination no tice is 3
given or the date of death; or 4

(ii) the day the independent living units at the facility have operated 5
at 95% of capacity for the previous 6 months. 6

(c) If a continuing care agreement is terminated by the subscriber’s election or 7
death after the first 90 days of occupancy, the provider shall pay any contractual entrance 8
fee refund within 60 days after the subscriber’s death or the effective date of termination, 9
if on the date of death or at any time between the date the written termination not ice is 10
given and the effective date of termination: 11

(1) the subscriber resides in a unit at a higher level of care than the level 12
of care in which the subscriber resided on initially entering the facility; and 13

(2) the last unit in which the subscribe r resided at the initial level of care 14
on entering the facility has been occupied by or reserved for another subscriber who has 15
paid an entrance fee. 16

(d) This section does not prohibit a provider from requiring that a subscriber’s 17
unit be vacated before any contractual entrance fee refund is paid as a result of the 18
subscriber’s election to terminate a continuing care agreement. 19

(e) (1) If an entrance fee refund is conditioned on the reoccupying of a 20
subscriber’s unit and the unit has not been reoccupied within 9 months of the subscriber’s 21
death or the date of the contract termination, a provider shall submit a written report to 22
the subscriber or the subscriber’s beneficiary stating: 23

(i) that the unit has not been reoccupied; and 24

(ii) the efforts the provider has made to reoccupy the unit. 25

(2) After the provider submitted the report required under paragraph (1) 26
of this subsection, the provider shall submit an updated written report to the subscriber or 27
the subscriber’s beneficiary every 6 months until the subscriber’s unit has been reoccupied. 28

(F) (1) IF A CONTINUING CARE AGREEMENT IS TERMINATED: 29

(I) BY WRITTEN NOTICE GI VEN BY A SUBSCRIBER , THE 30
TERMINATION DATE OF THE CONTINUING CARE AGREEMENT SHALL BE ON THE DATE 31
ON WHICH THE SUBSCRI BER VA CATED THE UNIT AND R EMOVED ALL PERSONAL 32
PROPERTY OF THE SUBSCRIBER FROM THE UNIT; OR 33
SENATE BILL 560 3

(II) ON THE SUBSCRIBER ’S DEATH, THE TERMINATION OF T HE 1
CONTINUING CARE AGRE EMENT SHALL BE EFFEC TIVE ON THE DATE OF THE 2
SUBSCRIBER’S DEATH. 3

(2) REGARDLESS OF WHETHER AN ENTRANCE FEE REFU ND IS 4
CONDITIONED ON THE R EOCCUPYING OF A SUBS CRIBER’S UNIT , WHEN A 5
CONTINUING CARE AGRE EMENT IS TERMINATED BY THE SUBSCRIBER ’S ELECTION 6
OR DEATH, THE PROVIDER SHALL PAY ANY CONTRACTUAL ENTRANCE FEE REFUND 7
NOT LATER THAN 2 YEARS AFTER THE DATE THE CONTINUING CARE AGREEMENT IS 8
TERMINATED. 9

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 10
October 1, 2026. 11