Md. Code, Human Services § 10-432
This is the official text of Md. Code, Human Services § 10-432, part of Maryland’s Code, Human Services — governs state social service programs.
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§10–432.
Official statutory text
(a) (1) Subsection (b)(2) of this section does not apply to a transfer of ownership or control of a person that owns or controls a facility, if:
(i) the transfer is part of a business reorganization; and
(ii) the same person or persons holding the right to control or holding a majority of ownership before the business reorganization will retain, directly or indirectly, the right to control or a majority of ownership, respectively, after the business reorganization.
(2) The provider shall notify the Department and the facility’s subscribers 30 days before any reorganization described in paragraph (1) of this subsection.
(b) Unless the Department approves the sale or transfer in accordance with §§ 10–433 through 10–435 of this subtitle:
(1) except for the grant of a mortgage or deed of trust to an unrelated third party, a provider that holds a preliminary, initial, or renewal certificate of registration may not sell or otherwise transfer, directly or indirectly, ownership of a facility or any ownership interest in a facility; and
(2) a person with an ownership interest in or a right to control the provider, through governing body appointments or contractual or similar arrangements, may not sell or otherwise transfer, directly or indirectly, the right to control or more than 50% of the ownership of a person that owns or controls a facility.
(c) Any series of sales or other transfers described in subsection (b) of this section that occur in a 12–month period shall be aggregated for purposes of this section and §§ 10–433 through 10–435 of this subtitle.
(i) the transfer is part of a business reorganization; and
(ii) the same person or persons holding the right to control or holding a majority of ownership before the business reorganization will retain, directly or indirectly, the right to control or a majority of ownership, respectively, after the business reorganization.
(2) The provider shall notify the Department and the facility’s subscribers 30 days before any reorganization described in paragraph (1) of this subsection.
(b) Unless the Department approves the sale or transfer in accordance with §§ 10–433 through 10–435 of this subtitle:
(1) except for the grant of a mortgage or deed of trust to an unrelated third party, a provider that holds a preliminary, initial, or renewal certificate of registration may not sell or otherwise transfer, directly or indirectly, ownership of a facility or any ownership interest in a facility; and
(2) a person with an ownership interest in or a right to control the provider, through governing body appointments or contractual or similar arrangements, may not sell or otherwise transfer, directly or indirectly, the right to control or more than 50% of the ownership of a person that owns or controls a facility.
(c) Any series of sales or other transfers described in subsection (b) of this section that occur in a 12–month period shall be aggregated for purposes of this section and §§ 10–433 through 10–435 of this subtitle.
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