SB 966
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 966 (Senator Hettleman)
Finance Health and Government Operations
Health Facilities - Assisted Living Programs - Referrals and Licenses
This bill requires an “assisted living referrer” to register with the Office of Health Care
Quality (OHCQ) within the Maryland Department of Health (MDH) and take specified
actions. The bill prohibits a person from willfully and knowingly referring another person
to an assisted living program that is operating without a license. A violation is subject to a
civil penalty of up to $1,000 for a first offense, $2,000 for a second offense, and $3,000 for
a third or subsequent offense. The Secretary of Health must remit all civil penalties
collected to OHCQ to enforce these registration and referral provisions. The bill also
specifies that an individual who knowingly and willfully operates, maintains, or owns an
assisted living program without a license is in violation of the Maryland Consumer
Protection Act (MCPA).
Fiscal Summary
State Effect: The bill’s requirements can generally be handled with existing budgeted
resources. The bill’s penalty provisions are not anticipated to have a material impact on
State finances or operations.
Local Effect: The bill’s penalty provisions (and presumably the possible imposition of
existing penalties under MCPA) are not anticipated to have a material effect on local
government finances or operations.
Small Business Effect: Minimal.
Analysis
Bill Summary: “Assisted living referrer” means an individual or agency that (1) makes
referrals to assisted living programs without cost to the person receiving the referral and
(2) is compensated by an assisted living program or other third party for referring
individuals to a licensed assisted living program.
Each assisted living referrer (1) must register with OHCQ; (2) must disclose to a client or
potential client of the assisted living referrer all financial relationships the assisted living
referrer has with assisted living programs; (3) must affirm that an assisted living program
is licensed if referring a client or potential client; (4) may refer the client or potential client
only to a licensed assisted living program if referring a client or potential client; and
(5) must notify OHCQ immediately on learning that an assisted living program is operating
without a license.
An assisted living referrer may not (1) receive funding from MDH if the referrer violates
these requirements or (2) make referrals only to licensed assisted living programs from
which the referrer receives compensation. If requested by any person or on its own
initiative, the Office of Attorney General (OAG) may investigate whether an assisted living
referrer violated the bill’s provisions and may seek appropriate relief.
Current Law/Background: In Maryland, assisted living programs are licensed by
OHCQ. A person may not knowingly and willfully operate, maintain, or own an assisted
living program without a license. A violation is a felony subject to (1) for a first offense, a
fine of up to $10,000 and/or imprisonment for up to five years or (2) for a subsequent
offense, a fine of up to $20,000 and/or imprisonment for up to five years.
In 2020, there are 1,558 licensed assisted living programs in the State, of which 1,129 have
between one and nine beds. OHCQ regularly updates an online list of licensed assisted
living programs in the State.
Placement agencies may offer assistance to individuals, families, or health care facilities
when an individual requires alternative living accommodations as a result of increased care
needs. Currently, placement agencies are not required to be licensed or regulated and may
knowingly or unknowingly recommend unlicensed assisted living programs to an
individual.
Maryland Consumer Protection Act
An unfair, abusive, or deceptive trade practice under MCPA includes, among other acts,
any false, falsely disparaging, or misleading oral or written statement, visual description,
or other representation of any kind which has the capacity, tendency, or effect of deceiving
or misleading consumers. The prohibition against engaging in any unfair, abusive, or
deceptive trade practice encompasses the offer for or actual sale, lease, rental, loan, or
bailment of any consumer goods, consumer realty, or consumer services; the extension of
consumer credit; the collection of consumer debt; or the offer for or actual purchase of
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consumer goods or consumer realty from a consumer by a merchant whose business
includes paying off consumer debt in connection with the purchase of any consumer goods
or consumer realty from a consumer.
The Consumer Protection Division of OAG is responsible for enforcing MCPA and
investigating the complaints of aggrieved consumers. The division may attempt to
conciliate the matter, issue a cease and desist order, or file a civil action in court. A
merchant who violates MCPA is subject to a fine of up to $10,000 for each violation and
up to $25,000 for each repetition of the same violation. In addition to any civil penalties
that may be imposed, any person who violates MCPA is guilty of a misdemeanor and, on
conviction, is subject to a fine of up to $1,000 and/or imprisonment for up to one year.
Additional Information
Prior Introductions: None.
Designated Cross File: HB 1615 (Delegate Kelly) - Rules and Executive Nominations.
Information Source(s): Judiciary (Administrative Office of the Courts); Maryland
Department of Health; Department of Legislative Services
Fiscal Note History: First Reader - March 5, 2020
rh/jc Third Reader - March 16, 2020
Revised - Amendment(s) - March 16, 2020
Analysis by: Amberly Holcomb Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 966/ Page 3


Statutes affected:
Text - First - Health Facilities - Assisted Living Programs - Referrals and Licenses: 19-1804.1 Health General, 19-1809 Health General, 19-1813 Health General
Text - Third - Health Facilities - Assisted Living Programs - Referrals and Licenses: 19-1804.1 Health General, 19-1809 Health General, 19-1813 Health General