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    Maryland Department of Health
    Regulations

    ​
    PROPOSAL
    Maryland Register
    Issue Date:  November 13, 2017
    Volume 44• Issue 23 • Pages 1098—1100
     
    Title 10
    MARYLAND DEPARTMENT OF HEALTH
    Subtitle 08 HEALTH FACILITIES GRANTS
    Notice of Proposed Action
    [17-275-P]
    The Secretary of Health proposes to amend:
    (1) Regulations .03, .04, .06, .08, and .09 under COMAR 10.08.01 Construction Funds for Public and Nonprofit Nursing Homes;
    (2) Regulations .03, .05, .07, and .09 under COMAR 10.08.02 Construction Funds for Public and Nonprofit Community Mental Health, Addiction, and Developmental Disabilities Facilities;
    (3) Regulations .02, .04, .06, and .08 under COMAR 10.08.03 Construction Funds for Public and Nonprofit Adult Day Care Centers;
    (4) Regulations .02, .05, and .10 under COMAR 10.08.04 Construction Funds for Public and Nonprofit Assisted Living Facilities; and
    (5) Regulations .02, .05, and .10 under COMAR 10.08.05 Construction Funds for Federally Qualified Health Centers.
    Statement of Purpose
    The purpose of this action is to accurately identify the State Agency and Office within that Agency associated with these regulations. Further, this action clarifies that these grant programs cannot provide reimbursement for any costs, including acquisition, which occurred prior to formal Board of Public Works approval to encumber allocated grant funds.
    Comparison to Federal Standards
    There is no corresponding federal standard to this proposed action.
    Estimate of Economic Impact
    The proposed action has no economic impact.
    Economic Impact on Small Businesses
    The proposed action has minimal or no economic impact on small businesses.
    Impact on Individuals with Disabilities
    The proposed action has no impact on individuals with disabilities.
    Opportunity for Public Comment
    Comments may be sent to Michele Phinney, Director, Office of Regulation and Policy Coordination, Maryland Department of Health, 201 West Preston Street, Room 512, Baltimore, MD 21201, or call 410-767-6499 (TTY800-735-2258), or email to mdh.regs@maryland.gov, or fax to 410-767-6483. Comments will be accepted through December 13, 2017. A public hearing has not been scheduled.
     
    10.08.01 Construction Funds for Public and Nonprofit Nursing Homes
    Authority: Health-General Article, §2-104(b), Annotated Code of Maryland; Ch. 228, Acts of 1990
    .03 Definitions.
    A. (text unchanged)
    B. Terms Defined.
    (1) (text unchanged)
    (2) “Certificate of Need” means a certificate issued by the [Maryland Health Resources Planning] Maryland Health Care Commission under Health-General Article, §19-101 et seq., Annotated Code of Maryland, for a health care project.
    (3)—(18) (text unchanged)
    (19) “Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services” means the office within the Department designated by the Secretary to administer this chapter.
    (20)—(23) (text unchanged)
    .04 Eligibility of Applicant for State Funds.
    A. To be eligible for State funds under the Loan Act of 1990 and subsequent similar Loan Acts, an applicant:
    (1)—(2) (text unchanged)
    (3) Shall have a Certificate of Need from the [Health Resources Planning] Maryland Health Care Commission, if a Certificate of Need is required for the project;
    (4)—(6) (text unchanged)
    B. (text unchanged)
    .06 Application Procedure.
    A. An applicant shall direct an application for State grant funds authorized by the Loan Act of 1990 and subsequent similar Loan Acts to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services.
    B.—D. (text unchanged)
    .08 Residual Requirements of the Grantee.
    A. (text unchanged)
    B. Insurance Requirements.
    (1) The applicant shall provide builders’ risk insurance during the entire period of project construction or renovation as follows:
    (a)—(c) (text unchanged)
    (d) The grantee shall submit evidence of this insurance to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services.
    (2) Upon completion of a project, the grantee shall maintain for a period of 15 years all-risk insurance coverage as follows:
    (a)—(c) (text unchanged)
    (d) The policy shall be endorsed to notify the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services, 201 West Preston Street, Baltimore, Maryland 21201 of any:
    (i)—(iii) (text unchanged)
    (e) The grantee shall submit evidence of this insurance annually to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services and to the State Treasurer’s Office, Insurance Division.
    C.—F. (text unchanged)
    .09 Grant Limitations and Provisions.
    A. (text unchanged)
    B. (text unchanged)
    C. Limits on State Grant.
    (1) –(2) (text unchanged)
    (3) An applicant may not be eligible for retroactive participation in the cost of acquisition, construction, renovation, or purchase of equipment.
    (4) (text unchanged)
    D.—G. (text unchanged)
     
    10.08.02 Construction Funds for Public and Nonprofit Community Mental Health, Addiction, and Developmental Disabilities Facilities
    Authority: Health-General Article, §§2-102, 24-601, et seq., Annotated Code of Maryland
    .03 Definitions.
    A. In this chapter, the following terms have the meanings indicated.
    B. Terms Defined.
    (1)—(15) (text unchanged)
    (16) “Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services” means the office within the Department designated by the Secretary to administer this chapter.
    (17)—(20) (text unchanged)
    .05 Application Procedure.
    A. (text unchanged)
    B. An applicant shall direct an application for State grant funds to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services.
    C.—F. (text unchanged)
    .07 Grant Limitations and Provisions.
    A.—C. (text unchanged)
    D. Limits on State Grant.
    (1)—(2) (text unchanged)
    (3) An applicant may not be eligible for retroactive participation in the [cost of construction, renovation, or purchase of equipment.]:
    (a) Cost of:
    (i) Acquisition;
    (ii) Construction; and
    (iii) Renovation; or
    (b) Purchase of equipment.
    (4) (text unchanged)
    E.—H. (text unchanged)
    .09 Residual Requirements of the Grantee.
    A. (text unchanged)
    B. Insurance Requirements.
    (1) The grantee shall provide builders’ risk insurance during the entire period of project construction or renovation as follows:
    (a)—(c) (text unchanged)
    (d) The grantee shall submit evidence of this insurance to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services.
    (2) On acquisition of a building or part of a building, the grantee shall provide all-risk insurance coverage as follows:
    (a)—(c) (text unchanged)
    (d) The policy shall be endorsed to notify the [office] Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services, 201 West Preston Street, Baltimore, Maryland 21201 of any:
    (i)—(iii) (text unchanged)
    (e) The grantee shall:
    (i) (text unchanged)
    (ii) Submit evidence of this insurance annually to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services and to the State Treasurer’s Office, Insurance Division.
    (3) Upon completion of a project, the grantee shall maintain, for a period of 30 years, all-risk insurance coverage as follows:
    (a)—(c) (text unchanged)
    (d) The policy shall be endorsed to notify the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services, 201 West Preston Street, Baltimore, Maryland 21201 of any:
    (i)—(iii) (text unchanged)
    (e) The grantee shall submit evidence of this insurance annually to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services and to the State Treasurer’s Office, Insurance Division.
    C.—F. (text unchanged)
     
    10.08.03 Construction Funds for Public and Nonprofit Adult Day Care Centers
    Authority: Health-General Article, §24-701 et seq., Annotated Code of Maryland
    .02 Definitions.
    A. (text unchanged)
    B. Terms Defined.
    (1)—(16) (text unchanged)
    (17) “Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services” means the office within the Department designated by the Secretary to administer this chapter.
    (18)—(23) (text unchanged)
    .04 Application Procedure.
    A. (text unchanged)
    B. An applicant shall direct the application for State grant funds to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services.
    C.—F. (text unchanged)
    .06 Grant Limitations and Provisions.
    A.—D. (text unchanged)
    E. Limits on State Grant.
    (1)—(2) (text unchanged)
    (3) An applicant is not eligible for retroactive participation in the cost of acquisition, construction, renovation, or purchase of equipment.
    (4) (text unchanged)
    F.—I. (text unchanged)
    .08 Residual Requirements of the Grantee.
    A. (text unchanged)
    B. Insurance Requirements.
    (1) The grantee shall provide builders’ risk insurance during the entire period of project construction or renovation as follows:
    (a)—(c) (text unchanged)
    (d) The grantee shall submit evidence of this insurance to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services.
    (2) Upon acquisition of a building or part of a building, the grantee shall provide all-risk insurance coverage as follows:
    (a)—(c) (text unchanged)
    (d) The policy shall be endorsed to notify the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services, 201 West Preston Street, Baltimore, Maryland 21201 of any:
    (i)—(iii) (text unchanged)
    (e) The grantee shall:
    (i) (text unchanged)
    (ii) Submit evidence of this insurance annually to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services and to the State Treasurer’s Office, Insurance Division.
    (3) Upon completion of a project, the grantee shall maintain, for a period of 30 years, all-risk insurance coverage as follows:
    (a)—(c) (text unchanged)
    (d) The policy shall be endorsed to notify the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services, 201 West Preston Street, Baltimore, Maryland 21201 of any:
    (i)—(iii) (text unchanged)
    (e) The grantee shall submit evidence of this insurance annually to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services and to the State Treasurer’s Office, Insurance Division.
    C.—F. (text unchanged)
     
    10.08.04 Construction Funds for Public and Nonprofit Assisted Living Facilities
    Authority: Health-General Article, §§24-1001—24-1007, Annotated Code of Maryland
    .02 Definitions.
    A. (text unchanged)
    B. Terms Defined.
    (1)—(19) (text unchanged)
    (20) “Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services” means the office within the Department designated by the Secretary to administer this chapter.
    (21)—(27) (text unchanged)
    .05 Application Procedure.
    A. An applicant shall apply for a State grant by filing an application with the Department on a form provided by the Department, and shall direct the completed application for State grant funds to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services.
    B.—E. (text unchanged)
    .10 Residual Requirements of the Grantee.
    A. (text unchanged)
    B. Insurance Requirements.
    (1) Upon acquisition of the project, the grantee shall provide an all-risk insurance policy that:
    (a)—(c) (text unchanged)
    (d) Requires notification of the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services, 201 West Preston Street, Baltimore, Maryland 21201 of any:
    (i)—(iii) (text unchanged)
    (2) The grantee shall provide builders’ risk insurance coverage during the entire period of project construction or renovation that:
    (a)—(c) (text unchanged)
    (d) Requires evidence of the coverage be submitted to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services, 201 West Preston Street, Baltimore, Maryland 21201.
    (3) Upon completion of a project, the grantee shall maintain, for a period of 30 years, an all-risk insurance policy that:
    (a)—(c) (text unchanged)
    (d) Requires notification of the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services, 201 West Preston Street, Baltimore, Maryland 21201 of any:
    (i)—(iii) (text unchanged)
    (4) The grantee shall maintain and submit evidence of this insurance annually, for a period of 30 years, to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services and to the State Treasurer’s Office, Insurance Division.
    C.—F. (text unchanged)
     
    10.08.05 Construction Funds for Federally Qualified Health Centers
    Authority: Health-General Article, §§24-1301—24-1307, Annotated Code of Maryland
    .02 Definitions.
    A. (text unchanged)
    B. Terms Defined.
    (1)—(4) (text unchanged)
    (5) “Application” means the forms required and published by the Department, and submitted by the applicant to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services, to apply for a State grant for a project.
    (6)—(19) (text unchanged)
    (20) “Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services” means the unit within the Department designated by the Secretary to administer this chapter.
    (21)—(28) (text unchanged)
    .05 Application Procedure.
    A. An applicant shall apply for a State grant by completing an application with the Department on a form provided by the Department, and shall file the completed application for State grant funds with the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services.
    B.—E. (text unchanged)
    .10 Residual Requirements of the Grantee.
    A. (text unchanged)
    B. Insurance Requirements.
    (1) Upon acquisition of the project, the grantee shall provide an all- risk insurance policy that:
    (a)—(c) (text unchanged)
    (d) Requires notification of the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services, 201 West Preston Street, Baltimore, Maryland 21201 of any:
    (i)—(iii) (text unchanged)
    (2) The grantee shall provide builders’ risk insurance coverage during the entire period of project construction or renovation up to and including the owner’s acceptance of the building that:
    (a)—(c) (text unchanged)
    (d) Requires evidence of the coverage be submitted to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services, 201 West Preston Street, Baltimore, Maryland 21201.
    (3) Upon completion of a project, the grantee shall maintain, for 30 years, an all-risk insurance policy that:
    (a)—(c) (text unchanged)
    (d) Requires notification of the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services, 201 West Preston Street, Baltimore, Maryland 21201 of any:
    (i)—(iii) (text unchanged)
    (4) The grantee shall maintain and submit evidence of this insurance annually, for a period of 30 years, to the Office of [Planning and] Capital [Financing] Planning, Budgeting, and Engineering Services and to the State Treasurer’s Office, Insurance Division.
    C.—F. (text unchanged)
    DENNIS SCHRADER
    Secretary of Health