1. A. The Department shall issue an initial certificate of registration when it determines that all of the following conditions have been met:

   1. (1) The provider has been issued a preliminary certificate of registration;
   2. (2) The provider has received all licenses and certifications required as of that date from MDH and MHCC;

   3. (3) The provider has submitted documentation which demonstrates to the satisfaction of the Department that:

      1. (a) Agreements have been executed for at least the greater of either:

         1. (i) 10 percent of the number of subscribers needed for the provider to reach its break-even point, or
         2. (ii) 30 subscribers; and
      2. (b) At least 10 percent of the total entrance fee has been paid as a deposit for each of the executed agreements;
   4. (4) The provider has submitted documentation that demonstrates to the satisfaction of the Department that there is a commitment for any planned long-term financing;
   5. (5) The provider has submitted documentation that demonstrates to the satisfaction of the Department that arrangements have been made for care coordination services consistent with Regulation .02E(1) of this chapter;
   6. (6) The provider has submitted proposed agreements that will be entered into with respect to future health care services consistent with Regulation .02E(3—(6) of this chapter; and
   7. (7) The form and substance of all advertising and other promotional materials filed are not deceptive, misleading, or likely to mislead.
2. B. Upon receipt of an initial certificate of registration, the provider may withdraw escrowed deposits and use them to fulfill its obligations to the subscribers, as long as all required reserves are in place.
3. C. If the conditions in §A of this regulation are not met, the Department shall issue a denial of an initial certificate of registration, in writing, which includes the reasons for the denial. The provider may resubmit an amended application within the time limits set forth in §D of this regulation.
4. D. If an initial certificate of registration is not issued within 24 months of the issuance of the preliminary certificate of registration, or a longer time allowed by the Department for good cause shown, as defined in §E of this regulation, the Department shall require the provider to refund all deposits and to cease in its attempts to offer continuing care at home under that application. A further intent to provide continuing care at home shall require a new application, including a feasibility study.
5. E. The Department may not deny a request for an extension of time if the provider demonstrates reasonable progress toward acquiring an initial certificate of registration.
6. F. If the Department issues an initial certificate of registration to a provider, the provider need not re-apply to the Department to certify additional geographic territories within the State of Maryland and shall instead notify the Department in writing in advance that the provider seeks to service additional geographic territories in the State of Maryland.

Authority: Human Services Article, §10-454, Annotated Code of Maryland

Effective date: May 15, 2000 (27:9 Md. R. 859)

Chapter recodified from COMAR 14.11.09 to COMAR 32.02.02, October 2000

Regulation .02H amended effective March 17, 2025 (52:5 Md. R. 239)

Regulation .10A amended effective March 17, 2025 (52:5 Md. R. 239)

Regulation .10F adopted effective March 17, 2025 (52:5 Md. R. 239)

Regulation .11C amended effective March 1, 2004 (31:4 Md. R. 319)

Regulation .14J amended effective March 17, 2025 (52:5 Md. R. 239)

Regulation .16C amended effective March 17, 2025 (52:5 Md. R. 239)

Regulation .17D amended effective March 17, 2025 (52:5 Md. R. 239)

Regulation .31 amended effective March 17, 2025 (52:5 Md. R. 239)