10.08.01.03

.03 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Applicant" means a county, municipal corporation or nonprofit organization that seeks to obtain State grant funds under the Loan Acts.

(2) “Certificate of Need” means a certificate issued by the Maryland Health Care Commission under Health-General Article, §19-101 et seq., Annotated Code of Maryland, for a health care project.

(3) Construction.

(a) "Construction" means construction of new buildings or additions to existing buildings and initial capital equipment, including plans, specifications, site improvements, surveys, and applicable engineers' and architects' fees.

(b) "Construction" does not include the cost of land acquisition or the cost of off-site improvements.

(4) "Department" means the Maryland Department of Health.

(5) "Facility" means a nursing home that is wholly owned by and operated under the authority of a:

(a) County or municipal corporation; or

(b) Nonprofit organization.

(6) "Grantee" means a county, a municipal corporation, or a nonprofit organization for which State grant funds under the Loan Act are approved by the Board of Public Works.

(7) Initial Capital Equipment.

(a) "Initial capital equipment" means items which:

(i) Are necessary to furnish and initially operate a facility;

(ii) With normal maintenance, have a life expectancy of at least 15 years; and

(iii) Are of durable construction.

(b) "Initial capital equipment" does not include items which:

(i) Could be easily lost, damaged, or destroyed during normal usage;

(ii) Could be easily stolen;

(iii) Are likely to be technically obsolescent within 15 years; or

(iv) Are intended to replace similar items already on hand.

(8) "Loan Act" means:

(a) The Nursing Home Loan Act of 1972, Chapter 119, Acts of 1972;

(b) The Nursing Home Loan Act of 1975, Chapter 656, Acts of 1975;

(c) The Nursing Home Loan Act of 1977, Chapter 703, Acts of 1977;

(d) The Nursing Home Loan Act of 1978, Chapter 904, Acts of 1978;

(e) The Nursing Home Loan Act of 1980, Chapter 713, Acts of 1980;

(f) The Nursing Home Loan Act of 1985, Chapter 304, Acts of 1985;

(g) The Nursing Home Loan Act of 1990, Chapter 228, Acts of 1990; and

(h) All subsequent similar legislation.

(9) "Nonprofit nursing home" means a nursing home which is or will be wholly owned by and operated under the authority of a nonprofit organization.

(10) "Nonprofit organization" means:

(a) A bona fide religious organization, or a chartered nonprofit corporation which is classified under §501(c)3 of the Internal Revenue Code as a nonprofit; and

(b) That no part of the organization's or corporation's earnings inures to the benefit of an individual or is used for any purpose other than the maintenance and operation of the nursing home, the purchase of equipment to be used in the nursing home, or the expansion of the nursing home.

(11) "Nursing home" means a comprehensive care facility as set forth in COMAR 10.07.02.

(12) "Nursing Home Loan Act of 1972" means Chapter 119, Acts of 1972.

(13) "Nursing Home Loan Act of 1975" means Chapter 656, Acts of 1975.

(14) "Nursing Home Loan Act of 1977" means Chapter 703, Acts of 1977.

(15) "Nursing Home Loan Act of 1978" means Chapter 904, Acts of 1978.

(16) "Nursing Home Loan Act of 1980" means Chapter 713, Acts of 1980.

(17) "Nursing Home Loan Act of 1985" means Chapter 304, Acts of 1985.

(18) "Nursing Home Loan Act of 1990" means Chapter 228, Acts of 1990.

(19) “Office of Capital Planning, Budgeting, and Engineering Services” means the office within the Department designated by the Secretary to administer this chapter.

(20) "Public nursing home" means a nursing home that is wholly owned and operated under the authority of a county or a municipal corporation.

(21) "Renovation" means the work required to restore or modernize, or both, most or all of a nursing home.

(22) "Secretary" means the Secretary of Health, or a designated representative.

(23) "Wholly owned" includes leased property, if the project proposed by the applicant includes:

(a) A lease agreement with the State for a State-owned building or State-owned property; or

(b) A lease agreement:

(i) Which is for a minimum of 15 years following the project completion or extends the right of purchase to the lessee, and

(ii) In which the lessor consents to the recording of a notice of the State's right of recovery, under the Nursing Home Loan Act of 1990, Section 1, Paragraph (9), in the land records of the county or Baltimore City in which the facility is located.