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

2. B. Terms Defined.

   1. (1) “Acquisition” means purchasing and obtaining ownership of all or part of an existing building for use as a federally qualified health center.
   2. (2) “Act” means Health-General Article, §§24-1301—24-1307, Annotated Code of Maryland, which authorizes the disbursement of State grant funds for the purposes of conversion, acquisition, renovation, equipping, and construction of a federally qualified health center.
   3. (3) “Admission criteria” means criteria established by a facility for admitting individuals including limitations, if any.
   4. (4) “Applicant” means a qualified entity that has submitted an application.
   5. (5) “Application” means the forms required and published by the Department, and submitted by the applicant to the Office of Capital Planning, Budgeting, and Engineering Services, to apply for a State grant for a project.
   6. (6) “Board of Public Works” means the Board established by Article XII of the Constitution of Maryland, consisting of the Governor, the Treasurer, and the Comptroller of Maryland.

   7. (7) “Building” means:

      1. (a) All or part of an existing federally qualified health center;
      2. (b) All or part of an existing facility to be converted to a federally qualified health center; or
      3. (c) A facility proposed to be constructed on a designated site for use as a federally qualified health center.

   8. (8) “Capital equipment” means items that:

      1. (a) With normal maintenance, have a life expectancy of at least 15 years; and
      2. (b) Have durable construction.

   9. (9) Construction.

      1. (a) “Construction” means construction of new buildings or additions to existing buildings, including architects' fees and capital equipment.

      2. (b) “Construction” does not include cost of:

         1. (i) The demolition of improvements that return the land to unimproved condition;
         2. (ii) The acquisition of unimproved land, and
         3. (iii) The construction of off-site infrastructure improvements, such as roads, water, and sewer.
   10. (10) “Conversion” means the work required to transform a building or part of a building for effective use as a federally qualified health center.

   11. (11) “Default” means:

       1. (a) Transfer of property that has ceased to be a federally qualified health center to any person, agency, or organization that would not qualify as an applicant, or that is not approved as a transferee by the Board of Public Works;
       2. (b) Failure to complete a project and to obtain a required occupancy permit;
       3. (c) Failure to commence operation of a facility within 1 year after obtaining an occupancy permit; or
       4. (d) Failure to qualify as a facility, as defined in §B(15) of this regulation.
   12. (12) “Department” means the Maryland Department of Health.
   13. (13) “Eligible person” means an individual who meets facility admission criteria.
   14. (14) “Eligible work” means work for which the use of State funds is authorized under the Act.
   15. (15) “Facility” means a building that is wholly owned by and operated under the authority of a federally qualified health center.
   16. (16) “Federally qualified health center” has the meaning stated in Health-General Article, §24-1301, Annotated Code of Maryland.
   17. (17) “Grant” means any funds competitively awarded from any source to the applicant including a State grant.
   18. (18) “Grantee” means a federally qualified health center that receives State grant funds under the Act, which are approved by the Board of Public Works.
   19. (19) “Nonprofit organization” has the meaning stated in Health-General Article, §24-1301, Annotated Code of Maryland.
   20. (20) “Office of Capital Planning, Budgeting, and Engineering Services” means the unit within the Department designated by the Secretary to administer this chapter.
   21. (21) “Operating costs” means costs associated with the operation of a federally qualified health center.
   22. (22) “Project” means a proposed scope of work for the conversion, acquisition, renovation, equipping or construction of a facility.

   23. (23) “Qualified entity” means:

       1. (a) An entity designated as a federally qualified health center;
       2. (b) A nonprofit organization seeking a “new start” status;
       3. (c) A federally qualified health center applying for a new site designation; or

       4. (d) A federally qualified health center applying for a “change of scope” under the Federal Public Health Service Act, §330 (42 U.S.C. §254b) that:

          1. (i) Has been invited by the Health Resources Services Administration to submit a full application for federally qualified health center designation; and
          2. (ii) Seeks to obtain State grant funds under the Act.
   24. (24) “Renovation” means restoration or modernization, or both, to an existing or proposed Federally Qualified Health Center.
   25. (25) “Retroactive expenditure” means any cost incurred or contracted for before the application for conversion, construction, acquisition, renovation, and equipment has been received and approved by the Secretary.
   26. (26) “Secretary” means the Secretary of Health, or a designated representative.
   27. (27) “State grant” means State funds awarded under the Federally Qualified Health Centers Grant Program, unless the context clearly implies otherwise.

   28. (28) “Wholly owned” includes leased property, if the lease agreement:

       1. (a) Is for a minimum of 15 years following the project completion or extends the right of purchase to the lessee; and
       2. (b) Includes a consent to the recording of a notice of the State's right of recovery, by the lessor, under Health-General Article, §24-1306, Annotated Code of Maryland, in the land records of the county or Baltimore City in which the facility is located.

Authority: Health-General Article, §§24-1301—24-1307, Annotated Code of Maryland

Effective date: April 24, 2006 (33:8 Md. R. 732)

Regulation .02B amended effective March 26, 2018 (45:6 Md. R. 319)

Regulation .05A amended effective March 26, 2018 (45:6 Md. R. 319)

Regulation .10B amended effective March 26, 2018 (45:6 Md. R. 319)